Rule Number Two

Module 2: Rule Number Two

Here is a recap of Rule #1 and an introduction to Rule #2

Get comfortable – and take notes. This is a long one – and it is PACKED with goodies!!

Rule #2 Review

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How Rule #2 can boost your trading effectiveness Start Congratulations - you have completed Rule #2 Review. You scored %%SCORE%% out of %%TOTAL%%. Your performance has been rated as %%RATING%%
Your answers are highlighted below.

Question 1

Press Your Winners - __________ - Without Exception

	As Soon As Possible
	With all your money
	Correctly
	Aggressively

Question 2

If you do not have the capital to press your winners, it means

	you are invested to the max! Full steam ahead!
	your initial position was to large.
	you don't have enough capital to be merchanting yet.

Question 2 Explanation:Yes - you are over-invested - be sure to scale your investment size depending on the size of your cash stack.

Question 3

Rule #2 will help us

	hold our winning trades.
	let our profits run.
	make sure we hold a bigger position when we are correct.

Question 3 Explanation:Rule #2 will help us with all of the above!

Question 4

Rule #2 will help us make the most of our profits by

	holding a larger position when we are correct.
	doubling our money.
	buying on the fade.
	testing for the best price range to flip an item.

Question 4 Explanation:Rule #2 helps us hold a lager position when we are correct - it acts like a booster rocket on our profits!

Question 5

By protecting you from adding to a losing position, Rule #2

	shows you the best item to buy.
	is a good formation to trade by.
	keeps you smaller when you are wrong.
	is good for bulk flipping.

Question 5 Explanation:The rule only adds to positions that are proven correct. There are no exceptions that permit to adding to a position in a declining market.

Question 6

The best way to learn about Rule #2 is to

	avoid doing it and experience the pain of your mistake.
	plan for it and do it, then experience the benefits.

Question 6 Explanation:This is something you only learn by doing things correctly. It was shared with me and it is my delight to share this helpful shortcut with you.

Question 7

Without using Rule #2 in your merchanting plans

	You are correct half the time and wrong half the time.
	You sell out of your winning trades too soon.
	You hold your losing trades too long.
	Your profits match your losses an you are no further ahead.

Question 7 Explanation:Answer 1 and 3 are incorrect - You can be wrong 70% of the time and still make money if your winners are bigger than your losers. If you hold you losing trades to long, you are breaking Rule #1 - but answers 2 and 4 are correct.

Question 8

You must always have money in the bank

	to show noobs how rich you are.
	to back your winning positions.

Question 8 Explanation:Keeping a merchanting log is the most powerful step you can take toward using Rule #2 intentionally.

Question 9

The mistake of Over Trading your account will

	keep your money tied up in both good and bad trades.
	prevent you from adding to a winning position.
	cause you to feel restrained and frustrated.

Question 9 Explanation:Trading correctly results in, or perhaps from, a feeling of abundance. Over trading is the result of trying to rush - often generated by a focus on the lack of wealth.

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