The REAL Secret of Successful
Trading is Far Simpler Than
Most Traders Think.

... And You Can Learn it Easily
When You Start the Right Way.

     People will tell you that unless you have that ‘special something’ you can’t make it as a successful trader.

     But be reassured, TRADING CAN BE TAUGHT – it's not a divine gift, as others have claimed in the past - and that many still believe.

     It's Not About Predicting the Future, neither is it about ‘special insider knowledge’ that only a few professionals know.

     The reality is far simpler, so simple in fact that most traders refuse to accept it. This refusal by the majority is precisely what allows the minority to live the life they choose.

Letter from David Bromley,
Trader and Trading Research Analyst

   Ten years ago, I started out as a newcomer myself. I had plenty of enthusiasm and I was hard working. I had come up with some ideas that I felt were good.

   But in spite of all my best efforts I found that my money was gradually draining away. Surely I deserved some success for all my honest effort? I could hardly believe anyone else was making a better effort to do well.

   I was puzzled - was I doing things the right way? Was there something important I didn’t know?

   Shortly after this, I decided to stop trading, because I couldn’t see how things were ever going to improve. I made up my mind I wouldn’t start trading again until I worked out where I was going wrong.

   I never did work it out. Looking back, I realize that I never could have done so for myself. But I found that somebody else had worked these things out. More than that – years previously - somebody had even proved that trading could be taught.

   Well - when I made this discovery, from Jack Schwager’s book, I figured that all I had to do was find somebody to teach me Richard Dennis’s techniques.

   But I soon discovered there wasn’t anybody. Nobody was offering to teach the methods used by the professional traders. Richard Dennis had retired, so he wasn’t teaching anybody – and anyway why would the great man teach me?

   Refusing to quit, I managed to get a position working at Galt Capital, where one of my colleagues was none other than Curtis Faith, the most successful of all of Richard Dennis’s Original Turtles.

   Okay, I was fortunate to find myself working with successful professional traders - but I have never forgotten how surprised I had been when I found that there was nobody around to teach new traders how to trade.

   There and then I made up my mind

   I would devote some of my time telling others how to employ the methods of the successful professional traders. - I realized that to ‘spread the message’ effectively a complete method was needed.

   This method would combine all the essential procedures of the professional traders in one easy-to-follow process. That was how I came to produce what is known as the MODUS Method.

   The overwhelming difference between the professional traders and all the ‘others’, is their method - and this accounts for their success. The methods they use, encapsulate all the system trading knowledge that has been amassed over the last half century or so.

   These methods are not a secret in the sense that anybody is trying to guard against others finding out what they do. But they are detailed and specific and generally not available outside professional circles.

   Because 'outsiders' are not aware of these methods, there is no demand for them. Influenced by products of doubtful worth, the majority of outsiders appear to trade according to all manner of ideas and beliefs, most of which only contribute to failure.

The thing that made the biggest impression on me at that time was that:

   Well – that blows a few myths sky high, doesn’t it?

But the professional systems traders take most of the profits from the commodity markets – surely they must be doing many things differently to all the other traders?

   Yes, that’s true. They are doing quite a lot of things differently but that is nothing to do with any of these myths. In fact their whole manner of trading is different.

You’re saying it is all to do with their methods?

   Yes, it is more than ‘to do with’ their methods it’s because of their methods.

   Their methods are not particularly secret but they are not well known because they are not practiced very much outside professional circles – that means they are not at all well understood either.

   This lack of understanding is the breeding ground for rumour, false belief and wild stories. It also provides a good foundation to allow unscrupulous people to develop products to catch the unwary.

   The methods of the professional traders go a lot deeper than just being methodical, they incorporate the knowledge base that has been built up over the whole period of systems trading – about half a century.

   These methods are not complicated but they are detailed and they have to be applied with discipline and consistency.

   Human beings are not good at discipline and consistency – so the professional traders use computers for this side of things – because discipline and consistency is exactly what computers are good at.

   Over the years, system traders have worked out the most important things that bring trading success – it should not be surprising that they have achieved the success they have because it has taken them a great deal of time to learn how to trade well.

   They’ve found that successful trading demands doing things that humans don’t like doing all that much – such as assessing situations unemotionally – taking another trade immediately after suffering a big loss – resisting a tempting trade after a ‘big win’ - staying in a trade when ‘market rumours’ suggest doing otherwise.

   So the first bunch of really successful traders were the ones who realized they were not good at doing these ‘difficult’ things when their trades were in progress.

   But they also realized that humans were good at working out beforehand what ought to be done – if only these two things could be combined!

   The challenge was to find out how to get the best of both situations – a sound way of trading that made the most of their human ingenuity without exposing their human weaknesses.

   The next big advance was made when some traders began to delegate their work to computers – detaching themselves from the routine decisions. That was when systems trading truly came into being.

   Although what I have described is the basic idea, there is a bit more to successful futures trading than this. Also, a successful trading method covers much more than just what is run on the computer.

   Your system must cater for all your personal trading needs as well as all circumstances that may arise.

   Above all, you need to be able to trust your system not to make a hash of things. No it’s more than that - you have to feel completely comfortable that your system will not make a hash of things.

   Comfort is the key, because comfort means “OK” whereas discomfort means “I am going to interfere with my system” and that probably means - disaster!

   The right ways to trade that professional traders have discovered and use are known within their group – and we now know they can be taught.

   Their methods are detailed, but the good news is that all the detail is managed automatically by the methods themselves!

   Professional trading software is highly specialized and dovetails perfectly with the methods used. The knowledge embedded in its design has been learned from the work and discoveries of predecessors.

   Learning from scratch by personal experience is very expensive in all walks of life and especially so in commodity trading. It is therefore surprising how many new traders choose this perilous alternative.

   This is not to say that the right way is to exclude the personal needs and preferences of the trader – nothing could be further from the truth. The trading method provides for the trader’s vital inputs.

   For example, the professional has a method for translating his own personal attitude to risk, via his software, into the way he wants his trading to be conducted.

   The trader’s method ensures that only the minimum of detail work is required to maintain his day to day trading. Most of his time is spent on planning and investigating new ideas – these are enjoyable tasks so it is not surprising that he reserves them for himself!

   We now know the reasons why professional traders gain the lion’s share of the profits made in the commodity markets. We know these reasons are not well understood and that they have nothing to do with the myths that many think are responsible for their success.

The Beginnings of the Knowledge Transfer Movement

   The arrival of cheap computers and reliable communications has changed the scene completely for the private individual trader.

   Also, by releasing Veritrader on general sale a couple of years ago, Curtis Faith put professional quality software in the hands of anyone wanting to do serious system trading.

   While all this was going on, Curtis and I both formed the opinion that it was in the best interests of the trading business if there was knowledge transfer between professional traders and new traders wanting to learn.

   To start the ball rolling we put a lot of effort into designing and running trading seminars – teaching professional methods. Although these seminars were good and well received, it just took too much time to tell too few people.

   It soon became clear that seminars were not going to be the way to tell everybody. I was still left with the unsolved problem of the ‘knowledge-gap’.

   How was I going to find a replacement for the seminars?

   - I needed a way I could explain HOW TO SUCCEED TRADING COMMODITIES to many more people much more efficiently.

 

   I concluded that the best way to find an answer would be to cast my mind back to the time I began trading and ask this question:

   What did I really need to know when I began trading commodities - that I later found was essential for success?

   I wrote down 9 things that I called the Golden Rules. Then I realized I had omitted the method that was necessary to bind them all together into a working team. Adding the METHOD gave me what I call The Ten Golden Rules of the Winning Traders.

Objectives for the Golden Rules

   The Ten Golden Rules of the Winning Traders was produced with the following objectives:

• To explain clearly to those interested in trading commodities and futures, what is involved and what knowledge is required.
  
  
• To help newcomers to trading commodity futures to get started the right way and give them a good basic knowledge to build on.
  
  
• To explain the methods used by successful traders so as to give individuals trading their own money the same chances of success as the professional traders.
  
  
• To give would-be commodity traders sufficient knowledge to protect them from purchasing inappropriate products.

So What's In The Golden Rules?

   The Golden Rules will make it clear to you what separates the winning traders from all the others.

   To help students understand the Golden Rules properly, I felt I needed to add a few demonstration spreadsheets, explaining some of the essential principles that are tricky to put over in words.

   To complete the job - and provide a solid foundation of knowledge for the student, I have included about 50 articles, explaining topics and terms of importance to commodity system traders.

Five, active spreadsheet models which bring to life essential concepts understood by the successful few.

And here’s what you’ll learn …

   How to identify those markets that are of use to YOU and those which aren’t.

   Why YOUR trading goals are not the same as those of the next man and why they are much more than just ‘targets’.

   What sort of ‘deal’ your system is offering you and how to assess if it's worth it.

   A practical lesson on the vitally important subject of overtrading.

   How to banish the bad practice of curve fitting from messing up your expectations.

   How to tip the balance between winning and losing trades to your advantage.

  That the real stars in your system are not the ones that steal the limelight.

  A practical lesson in the power of money management.

  How winning traders employ counter-intuitive knowledge.

  How winning traders know what their software must be capable of doing.

  How to ensure you are not doomed to failure before you begin.

  About simulated live market testing and the answers it demands from your system.

  What your system really tells you and what it never tells you (that most traders think it does!).

  A practical exercise in portfolio trading.

  Why you need a method to make sure everything that should happen does happen – and keeps happening.

In compiling the ‘Ten Golden Rules of the Winning Traders’ I have concentrated on those few issues which are the essence of what Richard Dennis taught and proved were the key to successful futures trading.

In the 'Golden Rules' you will discover ....

The 7 box check list that confirms whether any system recommended to you is worth even five minutes of your time. Many of them won't be!

How the professionals turn what appear to be moderately successful systems into multi-million dollar winners.

The essential tool for success that only the professionals can provide (until now!).

The runaway beast that destroys many able traders.

 

   I've just given you a list of detailed stuff all of which constitutes the essential methods employed by the successful commodity traders.

   So does it mean that when I know what the Golden Rules are, I just apply them to my trading?

   Yes, in principle. But as you can see, there are quite a few things to look after and get right. It would be too much to expect any trader to do all this manually every trading day.

   That is why, in practice - you need to systematize it all by applying a METHOD than incorporates all the rules PLUS the trading software.

   When this is done, the amount of human effort required and time taken is minimal.

   Using the SYSTEMATIC METHOD you will be able to conduct all your system evaluations and live trading in the systematic way needed for delegation to your computer.

   The very essence of system trading is that you delegate your routine live trading to your computer – without interference.

Where do I go from here – what is the next step?

   Right now, you are standing at the place I refer to as the enlightenment barrier. All new traders must pass through this barrier before they can begin to make progress with their trading.

   Knowing and understanding what needs to be done is the first step. The Ten Golden Rules of the Winning Traders will open your eyes and help you through the barrier.

   In The Ten Golden Rules of the Winning Traders the essential methods are all presented as one comprehensive systematic method of trading.

Just think for a moment what it's going to be like to have this kind of inside knowledge ...

   Here’s the irony about trading,

   A surprising number of traders are willing to risk a large sum of money every day in the markets but are unwilling to spend a few dollars learning the basics of good trading.

   As a result, every day trades are entered which never should have been entered. Positions are taken too large so when they go wrong the trader ends up losing $1,000 when it should have been $200, or trades sized too small so that potential $5,000 winners end up making just a few hundred bucks.

   Not only this but eager new traders lay out $3,000 or more for apparent ‘killer systems’ which miraculously change their behavior as soon real trades are placed.

   All this because the trader failed to invest in proper preparation.

Be different, don’t be like the majority.

   I urge you to equip yourself with a firm foundation and take the first step to joining the minority who make sound decisions every day.

"The Ten Golden Rules of the Winning Traders"
will be sent to you immediately, so you can start learning what the successful minority know and do straight away.

   Having been on the journey from enthusiastic beginner to system trader myself, I know first-hand what the obstacles to success are and how to overcome them. That's what I've included in the 'Golden Rules' - nothing more, nothing less.

   I urge you start your fast-track today, risk-free.

   Please, don't miss this opportunity.

   To Your Success!

-- David Bromley

P.S. – If you came to this web site looking for information on how to enjoy the life of a successful futures trader, The Ten Golden Rules is for you. My extensive research of the subject has uncovered no such item which is why I produced what I needed when I started out. And you can order it here right now.

P.P.S. – This is a ‘no-lose’ trade. You can ask for a full refund if you feel you made a mistake with your purchase within six months.

 

Modus Trading

To Contact David, email: info at modustrading dot com

Copyright David Bromley 2006
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