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The 'Lucky 10' Trading Rules

Friday, August 19, 2011 | Dylan Jovine

It’s the age-old question: Nature or nurture?

That’s the question I asked “Mark R.” on a chilly winter night in 1996 at Peter Luger Steak House in Brooklyn, N.Y. 

What I really wanted to know was whether he thought great traders were born or made.

I believed people could be taught to become great traders. He thought that genetics and aptitude were the key factors.

Although we disagreed, when it came to investing I always took what Mark said seriously. Not only was he the head trader at my brokerage firm, he was our single largest customer.

You could never tell just by looking at him that he had built a fortune worth hundreds of millions of dollars by trading. He dressed in jeans, casual shirts and wore inexpensive sneakers. He shunned the spotlight and absolutely hated attention.

(I once offered to call Forbes -- seriously -- on his behalf to tell them they made a mistake by leaving him off of their annual Forbes 400 list. Forget the daggers: the look he gave me made me want to crawl into the fetal position.)

In order to settle the matter, he agreed to train some novice traders, as long as I screened and interviewed them.

As you could imagine, once word got out that Mark was hiring, hundreds of applications from almost every firm on Wall Street poured in.

Experienced traders making hundreds of thousands of dollars annually leaped at the chance to work for the one the richest, most secretive traders on Wall Street.

After months of interviews, Mark’s first group was whittled down to 10 people.

(These people were considered so fortunate that they were literally called the “Lucky 10.”)

Mark’s “Lucky 10” became one of the most famous experiments in trading history, racking up incredible returns over the next three years.

To this day, each of the original “Lucky 10” continues to earn a living investing with the same rules, and many of them work at the top trading desks on Wall Street.

Yes, Mark proved that trading could be taught. But more importantly, he proved that with a simple set of rules, he could take people with little or no trading experience and make them excellent traders.

And one of those people was our very own Christopher Rowe.

Continue reading, and you’ll discover how we were able to publish the “Lucky 10” trading rules for the very first time ever ... and how you can get your complete set of the “Lucky 10” trading rules from Chris -- absolutely free.

Free Rules? Are You Kidding?

You probably asked yourself the same questions:

•    “Why would anyone give away the original “Lucky 10” trading rules absolutely free?

•    How can I be sure that these are the original “Lucky 10” trading rules as taught -- and used -- by Mark R. himself?

The answer to these questions lies in the very origin of Chris Rowe's latest (and last) project ...


The Origin of the Technical Analysis Millionaire (TAM) Project

I’m often asked, “How is Technical Analysis Millionaire different from the original C.R.I.S.S. course released in 2007?

But that’s the wrong question ...

In a moment you’ll understand why comparing them both is akin to comparing humans to cats.  While they’re both mammals, they’re completely different animals.


The real question is “What on earth is T.A.M.?”

It’s the answer to that question that truly makes T.A.M. a breakthrough product (and worthy of being the first product we launch as the ‘Institute’).

Why? Because the course reveals a trading system in its entirety that has LITERALLY never been published before.

Let me explain ...

Chris (and many of the original “Lucky 10”) believed they owed an obligation to Mark R. not to reveal his complete system for a full ten years after their apprenticeship ended.

That’s not to say that the original C.R.I.S.S. course didn’t include all of the rules learned by the “Lucky 10”: it did.

But in order to teach the rules in a way that didn’t violate Mark's trust, Chris went to incredible lengths to customize how he applied these rules.

In other words, he was prohibited from putting them in the same systematic or “mechanical” form that Mark used to teach the “Lucky 10.”

Last year, Chris and I flew to New York and finally received Mark’s permission to publish his rules in full (with Mark’s usual list of caveats, of course).

(For anyone interested in knowing the full story of how we finally got Mark’s permission to teach the rules, I’ll explain the story at the end of the article.)

The great news is that Technical Analysis Millionaire is to financial education what the iPhone was to cell phones: a completely revolutionary new product.

Pretty bold statement? I’ll prove it to you ...


A Complete Trading System

Most successful traders use a ‘mechanical’ trading system. This is no coincidence.

A good mechanical trading system automates the entire “decision-making process” of trading. Having a “mechanical” system does not mean it’s an automated software program or anything like that.

It’s not.

What it simply means is that the system provides answers in advance for every decision a trader must make while trading.

A mechanical system like the one you’ll learn in Technical Analysis Millionaire makes it easier for a trader to trade consistently because there is a clear, pre-defined set of rules.

And these rules specifically define exactly what should be done under all circumstances.

Put another way, the mechanics of trading are not left up to the judgment of the trader.

The key, of course, is to know you’re using a system of rules that stacks the odds in your favor by giving you the opportunity to make money over the long run.

That makes it much easier to take signals and trade according to the system during periods of losses.

In contrast, if you’re forced to rely on your own judgment during trading, you may find that you are fearful just when you should be greedy, and greedy when you should be fearful.

If you have a mechanical trading system that works -- and you follow it consistently -- emotions are removed from the decision-making process.

Despite the inner emotional struggles that might come from a long series of losses, or an incredibly large profit, you’ll be consistent, confident and disciplined.

In fact, the confidence, consistency, and discipline you have when using a thoroughly tested mechanical system are the keys to many of the most profitable traders’ success.

Mark gave the “Lucky 10” a complete trading system. Its rules covered every aspect of trading, and no decisions were left to the subjective whims of the trader.

It had every component of a Complete Trading System.


The 6 Key Components of any Complete Trading System:

As with any fully developed and thoroughly tested mechanical trading system, Technical Analysis Millionaire (T.A.M.) covers each of the decisions required for successful trading in advance:

1.  Markets -- what to buy or sell

The first decision is what to buy or sell, or essentially, which markets to trade. With T.A.M. you’ll discover how to set alerts in any market you choose. These alerts act like a “trigger,” so you’ll know when it’s the right time to take action.

If, for example, you just invest in American markets, you’ll discover how to set a “trigger” when the S & P 500 crosses a certain point. Most importantly, by following these rules you’ll know in advance exactly what to do when that trigger goes off!

2.  Position Sizing -- How much to buy or sell

How much to buy or sell is the single most important -- yet least understood -- aspect of trading. Most beginning traders risk far too much on each trade, and greatly increase their chances of going bust, even if they have an otherwise valid trading strategy.

With T.A.M. you’ll have the same formula Mark personally used and taught the “Lucky 10” to determine, in advance, what percentage of his tradeable assets he put into every trade.  

(Please Note: Mark’s formula for position sizing is not intended to, nor does it attempt to, offer personalized investment advice. This should be viewed the same way you’d view one of the myriad textbooks on the subject of position sizing.)

3.  Entries -- When to buy or sell

The decision of when to buy or sell is often called the “entry decision.” Like all good “mechanical” systems, you’ll learn how to generate entry signals, which define the exact price and market conditions to enter the market, in advance.

4.  Stops -- When to get out of a losing position

Traders who don’t cut their losses will not be successful in the long term. As you’ll learn with T.A.M., the most important thing about cutting your losses is to predefine in advance the point where you’ll get out, before you even enter the position.

5.  Exits -- When to get out of a winning position

Many “trading systems” that are sold as complete trading systems don’t address the exit of winning positions. Yet the question of when to get out of a winning position is crucial to the profitability of the system. With T.A.M., you’ll learn how to set pre-defined triggers so you’ll know, in advance, when to sell a winner.

6.  Tactics -- How to buy or sell

Once an alert has been generated, where and how you execute the trade becomes important, especially when dealing with large amounts of money. With T.A.M. you’ll discover tactics for trading thinly traded stocks, options, ADR’s, or any investment that requires special care.

It’s clear that Technical Analysis Millionaire is not only different from C.R.I.S.S., but it’s a completely brand new addition to our growing product line.

Indeed, the reason Chris worked so hard to get permission to teach this system is because we believe using a mechanical system is the best way to teach you how to invest from home.

Even if we rolled the clock back ten years and you found yourself working on the trading desk at my firm, Lexington Capital Partners, you’d be taught a mechanical trading system to trade the firm's money.

But teaching you a complete mechanical system becomes even more important when learning from home. Why?

Because mechanical systems like Technical Analysis Millionaire make it easier to trade consistently, and successfully, because it doesn’t leave important decisions in the hands of the trader.

In that way, it’s kind of like having Chris (and even Mark) with you at home, trading with you every step of the way.

As long as you follow the rules religiously, then your trading will likely be very profitable, and the system will help you survive the emotional struggles that inevitably result from wide swings in the market.


How to Get Your Free Copy of the “Lucky 10” Rules

The seed of the idea to give away the “Lucky 10” trading rules for free was planted five years ago, when we first launched The Tycoon Report.

But many of us believed we owed an obligation to Mark R. not to reveal the rules, at least in the same form he handed them down to original “Lucky 10.”

For this reason, the rules have been held back until we were recently given permission to share them.

To Mark’s great credit, he gave us permission to publish the rules as a system last year in the wake of the collapse of the housing and financial markets. On behalf of all of us here at the Institute, we owe him tremendous thanks.

(It’s clear he hasn’t become so rich to forget where he comes from: a lower middle-class family from Queens, New York, whose parents worked for the state government.)
 
As sympathetic as he is to the financial plight of current and future retirees facing cuts in social security (in addition to watching the value of their homes and portfolios vanish overnight), there was one caveat ...

Chris’ original plan was to give the “Lucky 10” rules away free to everyone who signed up for the Technical Analysis Millionaire VIP List ...

But Chris felt he had an obligation to teach you how to wield these powerful, rare trading rules. In addition, Mark didn’t feel comfortable handing these rules out to just anybody: he wanted to make sure they were in the hands of people who were actually serious about investing.

As a result, I suggested giving the “Lucky 10” rules away absolutely free as a bonus with every order of Technical Analysis Millionaire.

Not only did I think it made for a powerful free bonus, but I knew it would satisfy Mark’s condition that we only give it to people who have proven their seriousness about learning the system.

But Chris felt it sounded too much like a gimmick, so we compromised:

•  The complete "Lucky 10” rules will come as a free bonus with every order of Technical Analysis Millionaire.

•  Within 30 days of launching Technical Analysis Millionaire, Chris will hold at least one live class to teach you how to properly wield these powerful rules.

•  Even if you cancel your order the day after you place it ... or on day 30 ... the last day of the 100% money-back guarantee refund period -- the “Lucky 10” trading rules are yours to keep forever.

This way it’s a win-win for everyone ...

But the real winners will be those lucky enough to have the privilege to learn this from Chris, live (remember, attendance is limited).

If history is any judge, in ten years from now people who took this class will be living much happier lives than those who didn’t.

If my life has taught me anything, it’s that a lot more people like the “idea” of money much more than the work it takes to make it.

I just hope those people reading this recognize a truly unique opportunity when they see one.

Looks like our financial situation as a nation is going to get much harder before it gets easier ...

That’s why you have to drive a Mack Truck through any opportunity you get.

Dylan Jovine signature
Dylan Jovine
CEO, Founder & Director of Editorial Content
The Tycoon Report
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