secrets of the millionaire traders vol ii

© www.Netfutures.com in association with www.The-Way-To-Trade.com 1
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"Tricks, tips and rules from interviews with Millionaire Traders - Volume II…"
You have permission to distribute this special report to friends and trading colleagues,
as long as it is distributed in the current form without modification in any way.
No portion of this report may be reproduced in any format written or electronic
without the express written permission of Netfutures Inc.
Copyright © Netfutures

150 S. Wacker Dr., Suite 2350
Chicago, IL USA 60606
In association
with…
www.Netfutures.com
"…an award-winning futures brokerage firm"
www.The-Way-To-Trade.com
"…a revolutionary approach to trading."
© www.Netfutures.com in association with www.The-Way-To-Trade.com 2
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A very small percentage of all traders are
successful.
Yet, some traders accumulate more than
1 million dollars in trading profits.
What do the successful traders do differently?
Searching for the answer to this question is what prompted
interviews with several millionaire traders.
Some of the rules that millionaires use are familiar to all traders.
Others may be contrary to the common beliefs.
This is volume II compiled from these interviews and follows on
from the hugely influential first 25 rules, secrets and tips.
However, some of the most powerful rules have been held back
for volume II…
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© www.Netfutures.com in association with www.The-Way-To-Trade.com 3
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Stop orders are easy discipline. They may help you
cut losses short automatically.
An important factor is to place your stop when you
p
lace your order. If you don't, you're tempted to
give the market "a few more pennies", only adding
to your potential loss.
But remember, you should use stop loss orders
with great discretion because stops that are placed
too tight can put you out of the market with a loss
very quickly.
You can become "whipsawed" by poor placement
of stops.
© www.Netfutures.com in association with www.The-Way-To-Trade.com 4
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When trading e-mini contracts, trading becomes
very thin in the last few days before the contrac
t
expires. You may not find it so easy to exit at a
favorable price, particularly if you have several
contracts.
When trading commodities, the price of
a
commodity during the delivery month may be
more volatile. The beginning trader should move
into later month contracts to avoid this adde
d
risk.
The profit potential in making and taking
delivery is one that should only be handled by the
experienced cash market trader.
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© www.Netfutures.com in association with www.The-Way-To-Trade.com 5
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Although the price of corn historically goes down
at harvest, one of the millionaire traders doesn't let

that influence his trading.
"Too many people try to trade seasonal trends, so
look for a place to do just the opposite,"
he suggests.
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This rule is one of the big keys some successful
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the normal or from what is expected. If traders in
general believe the market is headed higher an
d
the rally fails, it's usually a good sell signal.
Wait for market traders in general to lean one way,
then time a trade in the opposite direction.
© www.Netfutures.com in association with www.The-Way-To-Trade.com 6
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When you go against the trend, believing that the
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This can be a very costly lesson to learn, say the
millionaires. They prefer to let the market price
action prove that a top or bottom has been formed.
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If market rumors are bullish, then you should buy
on the news.
But when the news reports turn into a reality, then
it is time to "sell the fact".
© www.Netfutures.com in association with www.The-Way-To-Trade.com 7
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There's an old stock market rule that says that bull
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Be especially sensitive to bearish news if you're
long.
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Look for opportunities where the loss potential is
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example, if a market is trading near its recen
t
historic lows, it could mean a long position has
great upside potential in relation to possible loss.
Watching the trading range of a market over

a
longer time period helps you have the perspective
to determine the odds.
Market fundamentals can also be helpful in finding
the "high odds" situation.
© www.Netfutures.com in association with www.The-Way-To-Trade.com 8
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Sometimes you take a position and within 48 hours
you have more profit than you ever expected.
Rather than watching the market a few days to
figure out why the profit came so fast, the
millionaires say "Take quick profits and run!"
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Most beginners tend to be bulls, which means they
buy markets that they think will go higher.

Since markets often fall faster than they rise, yo
u
can frequently earn quicker profits by selling short.
Learn to trade from the short side of the market.
© www.Netfutures.com in association with www.The-Way-To-Trade.com 9
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The futures market is not kind to those who
p
rocrastinate. The rule of thumb the millionaires
use is to act promptly. This doesn’t mean yo
u
should be impulsive, but if your judgement says
you should liquidate a position, do it immediately.
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When your position is a loser and you decide to
get out, don't make a 180-degree turn. Fo
r
example, if you have been long and decide the
market is working against you, get out and stan
d
aside for a while before going short.
If you reverse a position you can be whipsawed -
losing as the market goes down, then losing more
as the market moves up.
© www.Netfutures.com in association with www.The-Way-To-Trade.com 10
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r
r
r
s
s
s
-
-
-



V
V
V
o
o
o
l
l
l
u
u
u
m
m
m

e
e
e



I
I
I
I
I
I
R
R
R
U
U
U
L
L
L
E
E
E



#
#
#

1
1
1
3
3
3


-
-
-
D
D
D
o
o
o
n
n
n
'
'
'
t
t
t



b

b
b
e
e
e



a
a
a



n
n
n
i
i
i
c
c
c
k
k
k
e
e
e
l

l
l



a
a
a
n
n
n
d
d
d



d
d
d
i
i
i
m
m
m
e
e
e
r

r
r
.
.
.
If you want to be long, don't put a price limit order
in a couple of pennies below the market, hoping to
find a bargain.
People who try to squeeze an extra penny out o
f
the market frequently find the market moves
almost to their target, then slips away.
In hoping for an extra penny, they may give up
much more.
When you think it's time to do something, make
your move.
© www.Netfutures.com in association with www.The-Way-To-Trade.com 11
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S
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e
e
e
c
c
c
r
r
r
e

e
e
t
t
t
s
s
s
o
o
o
f
f
f
M
M
M
i
i
i
l
l
l
l
l
l
i
i
i
o

o
o
n
n
n
a
a
a
i
i
i
r
r
r
e
e
e
T
T
T
r
r
r
a
a
a
d
d
d
e

e
e
r
r
r
s
s
s
-
-
-



V
V
V
o
o
o
l
l
l
u
u
u
m
m
m
e

e
e



I
I
I
I
I
I
You can identify major price trends by using line
charts, one of the fundamental tools of the
successful trader. The mistake that many traders
make is to buy or be long while the markets are
still in a basic downtrend or selling short when
they are in up trends.
Charting markets yourself or subscribing to a char
t
service can help avoid costly errors of selling into
obvious up trends and buying downtrends.
R
R
R
U
U
U
L
L
L

E
E
E



#
#
#
1
1
1
5
5
5


-
-
-
W
W
W
a
a
a
t
t
t
c

c
c
h
h
h



f
f
f
o
o
o
r
r
r



k
k
k
e
e
e
y
y
y

b
b
b
r
r
r
e
e
e
a
a
a
k
k
k
o
o
o
u
u
u
t
t
t
s
s
s

t
t
t
h
h
h
r
r
r
o
o
o
u
u
u
g
g
g
h
h
h
t
t
t
r
r
r
e

e
e
n
n
n
d
d
d



l
l
l
i
i
i
n
n
n
e
e
e
s
s
s
.
.
.
Some successful traders trade almost exclusively

on this rule. They make bar charts. When prices
b
reak through a trendline and trade outside of the
trendline for two or three days, it's usually a goo
d
trading signal. This violation of a downtrend line
is a buy signal; the reverse is also true for a sell
signal when an uptrend line is penetrated. The
trendlines then give you some guidelines fo
r
determining stops.
R
R
R
U
U
U
L
L
L
E
E
E



#
#
#
1

1
1
4
4
4


-
-
-
K
K
K
n
n
n
o
o
o
w
w
w



t
t
t
h
h

h
e
e
e



p
p
p
r
r
r
i
i
i
c
c
c
e
e
e



t
t
t
r
r

r
e
e
e
n
n
n
d
d
d
.
.
.
© www.Netfutures.com in association with www.The-Way-To-Trade.com 12
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e
e
e
c
c
c
r
r
r
e
e
e
t

t
t
s
s
s
o
o
o
f
f
f
M
M
M
i
i
i
l
l
l
l
l
l
i
i
i
o
o
o
n

n
n
a
a
a
i
i
i
r
r
r
e
e
e
T
T
T
r
r
r
a
a
a
d
d
d
e
e
e
r

r
r
s
s
s
-
-
-



V
V
V
o
o
o
l
l
l
u
u
u
m
m
m
e
e
e

I
I
I
I
I
I
his completes Part 1 of
R
R
R
U
U
U
L
L
L
E
E
E



#
#
#
1
1
1

6
6
6


-
-
-
W
W
W
a
a
a
t
t
t
c
c
c
h
h
h



f
f
f
o

o
o
r
r
r



5
5
5
0
0
0
%
%
%



r
r
r
e
e
e
t
t
t
r

r
r
a
a
a
c
c
c
e
e
e
m
m
m
e
e
e
n
n
n
t
t
t
s
s
s



o

o
o
f
f
f



a
a
a
m
m
m
a
a
a
j
j
j
o
o
o
r
r
r



m

m
m
o
o
o
v
v
v
e
e
e
.
.
.
You frequently hear the market is in a "technical
reaction", which means that after a major move in
either direction the market has a tendency to
retrace up to 50% of that move.
The millionaires would look for another chance to
buy when the price drops by 50%.
R
R
R
U
U
U
L
L
L
E

E
E



#
#
#
1
1
1
7
7
7


-
-
-
U
U
U
s
s
s
e
e
e

t
t
t
h
h
h
e
e
e



h
h
h
a
a
a
l
l
l
f
f
f



w
w

w
a
a
a
y
y
y



r
r
r
u
u
u
l
l
l
e
e
e



w
w
w
h
h

h
e
e
e
n
n
n
p
p
p
i
i
i
c
c
c
k
k
k
i
i
i
n
n
n
g
g
g

b
b
b
u
u
u
y
y
y
-
-
-
s
s
s
e
e
e
l
l
l
l
l
l



s
s

s
p
p
p
o
o
o
t
t
t
s
s
s
.
.
.
This means finding out over what range a marke
t
has been trading, then buying in the lower half o
f
that range or selling in the upper half.
This rule is particularly useful in a trading marke
t
or in a situation where the market is trading within
a chart channel.
© www.Netfutures.com in association with www.The-Way-To-Trade.com 13
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e

e
e
c
c
c
r
r
r
e
e
e
t
t
t
s
s
s
o
o
o
f
f
f
M
M
M
i
i
i
l

l
l
l
l
l
i
i
i
o
o
o
n
n
n
a
a
a
i
i
i
r
r
r
e
e
e
T
T
T
r

r
r
a
a
a
d
d
d
e
e
e
r
r
r
s
s
s
-
-
-



V
V
V
o
o
o
l

l
l
u
u
u
m
m
m
e
e
e



I
I
I
I
I
I
R
R
R
U
U
U
L
L
L
E

E
E



#
#
#
1
1
1
8
8
8


-
-
-
W
W
W
a
a
a
t
t
t
c
c

c
h
h
h



t
t
t
h
h
h
e
e
e



m
m
m
a
a
a
g
g
g
n
n

n
i
i
i
t
t
t
u
u
u
d
d
d
e
e
e



o
o
o
f
f
f



m
m

m
a
a
a
r
r
r
k
k
k
e
e
e
t
t
t



c
c
c
h
h
h
a
a
a
n
n

n
g
g
g
e
e
e
.
.
.
R
R
R
U
U
U
L
L
L
E
E
E



#
#
#
1
1

1
9
9
9


-
-
-
C
C
C
o
o
o
n
n
n
g
g
g
e
e
e
s
s
s
t
t
t

i
i
i
o
o
o
n
n
n



a
a
a
r
r
r
e
e
e
a
a
a
s
s
s

c
c
c
a
a
a
n
n
n



m
m
m
e
e
e
a
a
a
n
n
n



s
s
s

u
u
u
p
p
p
p
p
p
o
o
o
r
r
r
t
t
t
o
o
o
r
r
r



r
r
r

e
e
e
s
s
s
i
i
i
s
s
s
t
t
t
a
a
a
n
n
n
c
c
c
e
e
e
.
.
.

When a market moves lower, but by a smalle
r
amount each day, it may be a signal for an uptrend.
When the market moves up each day, but in
smaller amounts, it's an early signal that
a
downtrend may be just around the corner.
These areas act as barriers that slow down price
action. When you hear a market commentator say
there is technical support at a certain price level,
chances are good that he is looking at a line char
t
which shows an old congestion area where trading
took place over a narrow range for several weeks.
Major price moves may develop when the marke
t
b
reaks out of a trading area. Usually the longer the
market has been chopping around in the trading
area, the further the price moves once it breaks
out.
© www.Netfutures.com in association with www.The-Way-To-Trade.com 14
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e
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c
c

c
r
r
r
e
e
e
t
t
t
s
s
s
o
o
o
f
f
f
M
M
M
i
i
i
l
l
l
l
l

l
i
i
i
o
o
o
n
n
n
a
a
a
i
i
i
r
r
r
e
e
e
T
T
T
r
r
r
a
a

a
d
d
d
e
e
e
r
r
r
s
s
s
-
-
-



V
V
V
o
o
o
l
l
l
u
u

u
m
m
m
e
e
e



I
I
I
I
I
I
R
R
R
U
U
U
L
L
L
E
E
E

#
#
#
2
2
2
0
0
0


-
-
-
M
M
M
a
a
a
j
j
j
o
o
o
r
r
r

m
m
m
o
o
o
v
v
v
e
e
e
s
s
s



f
f
f
r
r
r
e
e
e

q
q
q
u
u
u
e
e
e
n
n
n
t
t
t
l
l
l
y
y
y



c
c
c
l
l
l

i
i
i
m
m
m
a
a
a
x
x
x
w
w
w
i
i
i
t
t
t
h
h
h



a
a
a

k
k
k
e
e
e
y
y
y



r
r
r
e
e
e
v
v
v
e
e
e
r
r
r

s
s
s
a
a
a
l
l
l
.
.
.
A key reversal of an uptrend is usually indicate
d
when prices make new highs on high volume, bu
t
then close lower than the previous day's close.
A key reversal of a downtrend is a move into lows,
then a strong recovery during the day with a close
higher than the previous day's close.
A key reversal may come in the form of a two-day
reversal when on the first day the move is into new
high ground and a close on strength.
On the second day the market may open near the
high close of the previous day, then close sharply
lower.
An island reversal is formed when prices gap into
new highs on one day, then gap lower the nex
t
day.

© www.Netfutures.com in association with www.The-Way-To-Trade.com 15
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e
e
c
c
c
r
r
r
e
e
e
t
t
t
s
s
s
o
o
o
f
f
f
M
M

M
i
i
i
l
l
l
l
l
l
i
i
i
o
o
o
n
n
n
a
a
a
i
i
i
r
r
r
e
e

e
T
T
T
r
r
r
a
a
a
d
d
d
e
e
e
r
r
r
s
s
s
-
-
-



V
V

V
o
o
o
l
l
l
u
u
u
m
m
m
e
e
e



I
I
I
I
I
I
R
R
R
U
U

U
L
L
L
E
E
E



#
#
#
2
2
2
1
1
1


-
-
-
W
W
W
a
a
a

t
t
t
c
c
c
h
h
h



f
f
f
o
o
o
r
r
r



h
h
h
e
e
e

a
a
a
d
d
d



a
a
a
n
n
n
d
d
d



s
s
s
h
h
h
o
o
o

u
u
u
l
l
l
d
d
d
e
e
e
r
r
r
f
f
f
o
o
o
r
r
r
m
m
m
a
a
a

t
t
t
i
i
i
o
o
o
n
n
n
s
s
s
.
.
.
When you observe a chart pattern that resembles a
"head and shoulder", it is usually a sign the market
is topping out.
Head and shoulder patterns are not obvious until
the second "shoulder" is formed by a rally or
sideways pattern.
R
R
R
U
U
U

L
L
L
E
E
E



#
#
#
2
2
2
2
2
2


-
-
-
W
W
W
a
a
a
t

t
t
c
c
c
h
h
h



f
f
f
o
o
o
r
r
r



"
"
"
M
M
M
"

"
"



t
t
t
o
o
o
p
p
p
s
s
s



a
a
a
n
n
n
d
d
d

"
"
"
W
W
W
"
"
"
b
b
b
o
o
o
t
t
t
t
t
t
o
o
o
m
m
m
s

s
s
.
.
.
When the market action on a price chart indicates
a large "M", the price signal is to sell.
When a "W" is formed, it signals a move higher.
© www.Netfutures.com in association with www.The-Way-To-Trade.com 16
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S
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e
e
e
c
c
c
r
r
r
e
e
e
t
t
t
s
s
s

o
o
o
f
f
f
M
M
M
i
i
i
l
l
l
l
l
l
i
i
i
o
o
o
n
n
n
a
a
a

i
i
i
r
r
r
e
e
e
T
T
T
r
r
r
a
a
a
d
d
d
e
e
e
r
r
r
s
s
s

-
-
-



V
V
V
o
o
o
l
l
l
u
u
u
m
m
m
e
e
e



I
I
I

I
I
I
R
R
R
U
U
U
L
L
L
E
E
E



#
#
#
2
2
2
3
3
3


-

-
-
T
T
T
r
r
r
a
a
a
d
d
d
e
e
e



t
t
t
r
r
r
i
i
i
p

p
p
l
l
l
e
e
e



t
t
t
o
o
o
p
p
p
s
s
s



a
a
a
n

n
n
d
d
d



b
b
b
o
o
o
t
t
t
t
t
t
o
o
o
m
m
m
s
s
s
.

.
.
After a market has hit a peak the second or third
time, it is a bearish signal. The reverse is true at
the bottom.
The millionaires watch these signals and use them
as part of their overall trading strategy.
R
R
R
U
U
U
L
L
L
E
E
E



#
#
#
2
2
2
4
4

4


-
-
-
W
W
W
a
a
a
t
t
t
c
c
c
h
h
h



v
v
v
o
o
o

l
l
l
u
u
u
m
m
m
e
e
e



f
f
f
o
o
o
r
r
r



p
p
p

r
r
r
i
i
i
c
c
c
e
e
e



c
c
c
l
l
l
u
u
u
e
e
e
s
s
s

.
.
.
When volume and price go up together, it's a
b
uying signal. When volume increases and prices
go down, it's a sell signal.
But when volume goes down, regardless of price
direction, it's a signal to stand aside, or expect a
market reversal.
Click here to find out more about the futures
market and how to "read" volume.
© www.Netfutures.com in association with www.The-Way-To-Trade.com 17
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S
S
e
e
e
c
c
c
r
r
r
e
e
e
t
t

t
s
s
s
o
o
o
f
f
f
M
M
M
i
i
i
l
l
l
l
l
l
i
i
i
o
o
o
n
n

n
a
a
a
i
i
i
r
r
r
e
e
e
T
T
T
r
r
r
a
a
a
d
d
d
e
e
e
r
r

r
s
s
s
-
-
-



V
V
V
o
o
o
l
l
l
u
u
u
m
m
m
e
e
e

I
I
I
I
I
I
R
R
R
U
U
U
L
L
L
E
E
E



#
#
#
2
2
2
5
5

5


-
-
-
O
O
O
p
p
p
e
e
e
n
n
n



i
i
i
n
n
n
t
t
t

e
e
e
r
r
r
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If open interest is increasing as prices rise, it's a
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The reverse is also true. If open interest increases
with lower prices and on good volume, it is a
selling signal.
© www.Netfutures.com in association with www.The-Way-To-Trade.com 18
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Discover The Way To Trade:
Futures - />E-mini - />Discipline - />Online - />Stocks - />Commodities - />Beginners - />Options - />Swing Trading - />Day Trading - />T
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© www.Netfutures.com in association with www.The-Way-To-Trade.com 19
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I
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"Secrets of Millionaire Traders Volume II"
I hope you have enjoyed reading volume II just as much
as the first set of 25 secrets of millionaire traders.
If you haven't already done so, please take a moment to

check out the Netfutures site and take a look at some of
the services they offer.
Best regards and wishing you continued success with
your trading.
Paul Handforth
www.The-Way-To-Trade.com
Avalanche Direct Limited