Page 80 - All Psychology Course PowerPoint Study Session Slides

Implementing “Baby Steps” To Alter Your

Psychology

Baby Steps = Small Actions That Ultimately Create Significant
Changes:
 Break-down tasks into small “Baby Steps”
 Avoids becoming overwhelmed with large tasks or overwhelming emotional hurdles
 In trading, fearful traders tend to get out of perfectly good trends way too soon, thus not
letting their winning trades win big! While this may reduce their anxiety levels, this is a
BIG MISTAKE to leave trends too early!
 Instead, “Scaling-out” of trends can be used as “Baby Steps” to eliminate these BIG
MISTAKES!
 I use this technique to help fearful traders stay with the trend but allow them to “Scale-
Out” in a controlled and structured ‘Baby Step” fashion. This technique is very
successful!

Scaling-Out Bennett’s “Baby-Step” Technique:

1) Scale-Out only when profitable and only using a signal in the opposite
direction of your trade or the trend
2) Scale-Out in increments of no more then 33% each time

3) Only two Scale-Outs permitted per trend trade
4) Let the remainder of your position stay with the trend until ultimately
stopped out using your trading exit rules.