If you lose focus in the financial markets for even just a minute, you can look up to find your money has disappeared.
That’s how it always seems to go, right? It’s much easier to lose cash than to gain it. But I’ve found that making money has a lot to do with momentum – the more you make consistent profits, the more straightforward and effortless it becomes.
And to keep that consistency and momentum going, I have 2 very specific accounts that I use. Here’s what they are and how I use them…
I like to preach that you can’t lose focus when you’re dealing with your money, admittedly at the risk of sounding completely redundant. Yet that sentiment becomes even more important when you’re dealing with a stock market like the one we have now.
Many people have lost huge amounts of their capital since August when Wall Street took a dip, but my account has done nothing but climb.
How? I have 2 specific accounts, and I’ve used them like this…
Account #1
I’m going to walk you through what I’ve done, so you can decide for yourself if you want to copy me…
I went into my online stock brokerage account and found the option to add or create an additional account. I did so, and labeled them differently in my head to make sure I kept them separate.
For the 1st account, I decided this would be my “Me Account”. In this account, I basically trade whatever strikes my fancy at the time. I like to not be strict at all with this account so that I can have more freedom to choose how I want to invest. I also give my trades more leniency in this account, so I don’t inhibit trades with stop losses or anything like that.
This is the account where I can trade on a whim. If I hear that Apple is coming out with a new television, I might jump on from excitement. If I decide I want to own stock in Coca-Cola because I like the drink, I go ahead and buy some. This is my rules-free account.
Account #2
In my second account, I go by systems and have rules for every trade I make. I go in with a plan, and stick to that plan. I also don’t trade based on my personal feelings about a company, nor any news or hype I hear.
Instead, I use the trading strategies that Wall Street Informer premium services use. I always include a stop loss, and I never trade with emotion. I include parameters for each and every trade, and I close it out when those parameters are breached.
But the most important part is how I use these 2 accounts…
As soon as I could, I transferred all of my money from Account #1 into Account #2.
That’s how I was in cash or shorting stocks when the stock market took its big tumble in August.
There’s simply no room for Account #1 if you want to make money in the stock market. It’s just that simple. That’s a lesson that I learned the hard way, and a lesson I will never forget.
Have a system, follow strict rules, exclude emotion, and never trade on a whim. That’s how you build momentum on Wall Street.
