He sat down and looked at his recent trading results, and noticed that on most occasions, if he had stayed in the trade, he would have made a profit. His system was valid. His Awareness was enabling him to find and execute profitable trades.

His Belief system needed a gentle prod after several losing trades in a row, but because he had done so much study and work on back testing, he knew he deserved to be successful.

He started to visualise himself in his trading room, making profitable, long term trades and enjoying the benefits that this type of trading would bring to himself and his family.

Then, he worked on his conduct. He again wrote out his trading plan, and decided that he would treat his plan like a shipwrecked sailor treats a life raft.

He would cling to it until he was forced out of a trade by the actions of the market, not by his fearful, emotional response to the actions of the market.

He started placing his stop loss orders in a position so that the market had to change trend in order to take him out of a trade. In other words, a logically placed, technically correct stop loss position.

He then reduced his position size to allow for these stop loss orders being further away from the price action, so that his account was never at risk of being totally wiped out by one serious loss.

He did a pre-trade and post trade analysis sheet, so he could analyze his performance and try to consistently improve his results.

(This can be as simple as a sheet of paper where you write down your order, the position of the market and your thoughts and feelings before, during and after a trade.

Or it can be an elaborate system of checks and balances that guide you through each of your trades. Be careful though - keep it simple or you probably won't use it!)

Once he started to do this, he started to make money (with the exact system we have been teaching you on this Website).

(There are, of course, many other strategies and systems you can use in addition to the lessons we teach you to increase your profits, but to start with, these methods are all you really need to become a profitable trader.)

We are always learning and improving - every trader should strive to do this also.

When you are making consistent profits using the methods we have shared with you, investigate some of these additional entry and exit techniques, but not at the start. Keep it simple.

When he started to trade this way, he found it was far better to take a small position with a loose stop loss and be able to sleep at night, than his previous strategy of using maximum leverage and stressing out whenever he was in the market, to the point where he couldn't stand to walk away from his screen in case the position went against him.

This method sets up lots of profits and a few losses. Much better than the alternative he had previously used.

He then started looking for Stocks that trended strongly for long periods of time, and was drawn to the US Stock Market.

He used exactly the same entry and analysis techniques I have shown you on the Website, and - He bought Call options in Gen Probe Inc (GPRO) with the Stock at $27 and held on until the Stock price was $58 three months later. He bought Pacificare Health Systems Call options (PHS) when it was trading at $24 and held them to $51 four months later. And he bought Sandisc Corp Call options (SNDK) with the Stock at $24 and held them to $58 less than four months later. (Please Note - these are not Stock recommendations, they are merely mentioned here for illustration and educational purposes and the trades are hypothetical examples).

Can you imagine the change in the size of his trading account balance?

None of these Stocks had given him any reason to sell earlier, so he simply held on for the ride…Awareness, Belief, Conduct...the success triangle.

The Awareness will come when you study and really 'get' the lessons on the Website and in the Newsletter.

Study the lessons carefully, read books written by the masters. Teach others what you have learned - you will gain a better understanding yourself.

All human interaction is a chance to learn or to teach.

By teaching someone else and sharing your knowledge, you will learn any subject at a deeper level. You ultimately go from an intellectual understanding to an emotional understanding (as Robert Allen calls them, an aha!) of your chosen area of interest, in this case, profitable trading. Try it...

The Belief will come when you back test the Trading Plan I share with you on the Stocks that you want to trade and prove to yourself that it does indeed work.

Visualize yourself making a series of profitable trades. Feel how good it is to see the market moving in the direction you expected it to.

Imagine spending the profits you make trading Stocks with your family and friends, and the time you will have to do the things you want to do instead of the things you have to do. Successful trading gives you the 'time freedom' to do whatever it is that you want to do with your life. Do it first in your mind, and then do it in the market.

Your Conduct - well that's up to you. Will you 'decide' to look at your written trading plan as your life raft? Cling to it as your last defense against the emotions of fear and greed that live inside each one of us?

Will you trade with the trend, enter off 1 to 4 day reactions to the main trend, reduce your leverage or position size and put your stop loss orders out of the way, so the market has to change trend to get you?

If you do this, you should be confident that you can achieve trading success. That is our wish for you. Good luck.

Now, lets review today's lesson - The Trading Success Triangle has as it's three sides - Awareness, Belief and Conduct If any of these elements are weak or missing, the triangle has no strength The sides are all important and are dependent on each other, but Conduct is the most difficult for the average trader to master Fear and Greed act to change our conduct from what our rational thoughts tell us is the correct course of action, to actions that aren't always in our best interests By controlling Fear and Greed, we can make rational decisions that help us to become profitable traders

I hope this lesson has helped you in understanding the mindset of a successful trader a little better.

Understanding these three critical elements of trading psychology will put you well on the way to a profitable trading career.

Get this, and your trading success is practically assured. Miss the lesson, and your chances of making big money in the Stock Market are profoundly limited.

Please feel free to share this lesson with your trading friends and associates - they will thank you for it.

To Your Trading Success,

Tony Spann and the Team

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Stock Trading Review is dedicated to helping you succeed as a trader by sharing with you simple and easy to follow tips and techniques.

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Written by: Tony Spann and the Team