Here is the link.
Jump right in and make a profit immediately? That's what most people think will happen when they enter the world of trading. But there are several things that experienced traders like David Jones always do before they open a new trade.
He goes over every one of them in detail here, from picking which markets to focus on, selecting a time frame and setting a Stop Loss to determining the level of risk.
Each of these four components is as important as the others and together they form a cycle of decisions that should be part of every trade you make. Being disciplined and prepared in advance for different scenarios is the only way to go about trading.
4 Things to Always Do Before You Start Trading:
1- What market should you trade in?
2- Time Frame.
3- plan your Stop loss.
4- think about the financial risk percentage...
Financial risk
1-3% on any one trade
$1,000, 3% on the trade
Monday, April 20, 2020
What are Trailing Stops and How to Trade with Them
Here is the link.
Trailing stop
- maximize profit
- optimize profit
Main benefit
1st scenario - open long position
2nd scenario - short position
Trailing stop
- maximize profit
- optimize profit
Main benefit
- Secure profits
- Doesn't limit profits
- Sets limit of losses
1st scenario - open long position
2nd scenario - short position
Top 5 Mistakes Made by New Traders - Fourth play
Top 5 Mistakes Made by New Traders - 4th play
Here is the link.
This video will be particularly useful for novice traders. Peter Martin utilises his solid experience on financial markets to identify the top five most frequent mistakes made by new traders. Don’t miss out on this opportunity to learn what costly errors you surely want to avoid in your trading.
Here is the link.
This video will be particularly useful for novice traders. Peter Martin utilises his solid experience on financial markets to identify the top five most frequent mistakes made by new traders. Don’t miss out on this opportunity to learn what costly errors you surely want to avoid in your trading.
5 common mistakes
- No. 5 Failure to get familiar with the market
- No. 4 Lack of discipline
- No. 3 Trade without a plan
- No. 2 Ignore loss transactions - pay insufficient attention to bad trades
- No. 1 Take on too much risk
No. 5 Failure to get familiar with the market
Failing to do:
historical price range, volatility
Demo trading account without any risk level, build up some experience
No. 4 Lack of discipline
Think of your heart, instead of thinking of your head
Professional one - Dispassionate
- new trade, on a whim - throw away trading rules
Classical
Move the stops away - ?
Move the stops away - ?
No. 3 Trade without a plan
Several elements in a plan
entry level
when to enter
whole journey of trade
What kind of strategies suit for you
Exit strategy, exit plan - when to get out, maximize the profit; or this is wrong, cut the loss.
When to decide that it is wrong, I need to exit
Which market you should stay
breakout strategy
Trading plan - stick to
Positions size rule - consistent - how much market moves, volatility
Trade small size as now
No. 2 Ignore loss transactions
- pay insufficient attention to bad trades
get rid of them - you do not...weeds in the garden,
Bad trades like weeds in the garden
No. 1 Take too much risk
Long term - initial too big
Position your size - win the game - stay in the game
Top 5 Mistakes Made by New Traders - Third play
Top 5 Mistakes Made by New Traders - Second play
Here is the link.
This video will be particularly useful for novice traders. Peter Martin utilises his solid experience on financial markets to identify the top five most frequent mistakes made by new traders. Don’t miss out on this opportunity to learn what costly errors you surely want to avoid in your trading.
Here is the link.
This video will be particularly useful for novice traders. Peter Martin utilises his solid experience on financial markets to identify the top five most frequent mistakes made by new traders. Don’t miss out on this opportunity to learn what costly errors you surely want to avoid in your trading.
Second play, the notes with more detail:
5 common mistakes
- No. 5 Failure to get familiar with the market
- No. 4 Lack of discipline
- No. 3 Trade without a plan
- No. 2 Ignore loss transactions - pay insufficient attention to bad trades
- No. 1 Take on too much risk
No. 5 Failure to get familiar with the market
historical price range, volatility
Demo trading account without any risk level
No. 4 Lack of discipline
Think of your heart, instead of thinking of your head
Dispassionate - new trade, on a whim
Classical
Move the stops away - ?
Move the stops away - ?
No. 3 Trade without a plan
Several
entry level
when to enter
whole journey of trade
What kind of strategies suit for you
Exit strategy, exit plan - when to get out, maximize the profit; or this is wrong, cut the loss.
When to decide that it is wrong, I need to exit
Which market you should stay
breakout strategy
Trading plan - stick to
Positions size rule - consistent - how much market moves, volatility
Trade small size as now
No. 2 Ignore loss transactions - pay insufficient attention to bad trades
get rid of them - you do not...weeds in the garden,
No. 1 Take on too much risk
Blow yourself - could not play game long
Position your size - stay in the game
Unable to have full and long career
Top 5 Mistakes Made by New Traders - Second play
Top 5 Mistakes Made by New Traders - Second play
Here is the link.
This video will be particularly useful for novice traders. Peter Martin utilises his solid experience on financial markets to identify the top five most frequent mistakes made by new traders. Don’t miss out on this opportunity to learn what costly errors you surely want to avoid in your trading.
Here is the link.
This video will be particularly useful for novice traders. Peter Martin utilises his solid experience on financial markets to identify the top five most frequent mistakes made by new traders. Don’t miss out on this opportunity to learn what costly errors you surely want to avoid in your trading.
Second play, the notes with more detail:
5 common mistakes
No. 5 Failure to get familiar with the market
historical price range, volatility
Demo trading account without any risk level
No. 4 Lack of discipline
Think of your heart, instead of thinking of your head
Dispassionate - new trade, on a whim
Classical
No. 3 Trade without a plan
Several
entry level
when to enter
whole journey of trade
What kind of strategies suit for you
Exit strategy, exit plan
When to decide that it is wrong, I need to exit
Which market you should stay
breakout strategy
Trading plan - stick to
Positions size rule - consistent - how much market moves, volatility
Trade small size as now
No. 2 Ignore loss transactions - pay sufficient attention
get rid of them - you do not...
No. 1 Take too much risk
Blow yourself - could not play game long
Position your size - stay in the game
Unable to have full and long career
Top 5 Mistakes Made by New Traders - First play
Here is the link.
This video will be particularly useful for novice traders. Peter Martin utilises his solid experience on financial markets to identify the top five most frequent mistakes made by new traders. Don’t miss out on this opportunity to learn what costly errors you surely want to avoid in your trading.
This video will be particularly useful for novice traders. Peter Martin utilises his solid experience on financial markets to identify the top five most frequent mistakes made by new traders. Don’t miss out on this opportunity to learn what costly errors you surely want to avoid in your trading.
First play, I took the following notes:
- Lack of discipline -
- Trade without a plan - Exit plan, this is wrong and how to cut the loss; position size rule - consistent; adjust positions depending on volatility;
- Pay sufficient attention to losses; Take too much risk;
Second play, the notes with more detail:
5 common mistakes
No. 5 Failure to get familiar with the market
historical price range, volatility
Demo trading account without any risk level
No. 4 Lack of discipline
Think of your heart, instead of thinking of your head
Dispassionate - new trade, on a whim
Classical
No. 3 Trade without a plan
Several
entry level
when to enter
whole journey of trade
What kind of strategies suit for you
Exit strategy, exit plan
When to decide that it is wrong, I need to exit
Which market you should stay
breakout strategy
Trading plan - stick to
Positions size rule - consistent - how much market moves, volatility
Trade small size as now
No. 2 Ignore loss transactions - pay sufficient attention
get rid of them - you do not...
No. 1 Take too much risk
Blow yourself - could not play game long
Position your size - stay in the game
Unable to have full and long career
3 Hardest Psychological Barriers in Trading
Here is the link.
Trading has as much to do with overcoming the markets as it does with overcoming yourself and your own limits. Good traders know this and they manage their mental blocks to squeeze out the maximum results out of their trades. Our resident trading expert David Jones is here to discuss the three main psychological problems that affect traders and hamper their performance. First comes the general fear of losing money and letting losing trades affect your judgement. Then we have the inability to open a trade even though your analysis is solid. And finally we touch on the misconception that you should protect trades that are making a small profit - but haven't reached their full potential - from going back into a loss.
Trading has as much to do with overcoming the markets as it does with overcoming yourself and your own limits. Good traders know this and they manage their mental blocks to squeeze out the maximum results out of their trades. Our resident trading expert David Jones is here to discuss the three main psychological problems that affect traders and hamper their performance. First comes the general fear of losing money and letting losing trades affect your judgement. Then we have the inability to open a trade even though your analysis is solid. And finally we touch on the misconception that you should protect trades that are making a small profit - but haven't reached their full potential - from going back into a loss.
When to Cut Losses Trading Options
Here is the link.
"Cut your losses small and let your winners run"... If only it really were that easy. Trust me, it isn't. Check out this video if you ever struggle about where to cut losses. What you learn is probably different than what you've ever seen online but that's a good thing, as 90% of traders actually lose money because they listen to bad (usually free) advice...
Market order - BID -> ASK, bad idea using a market order
Limit order
Mental stop - Exit position and take a loss
Probability of touch
Probability ITM
How do we manage risk?
Small uncorrelated risk
Key takeaways
"Cut your losses small and let your winners run"... If only it really were that easy. Trust me, it isn't. Check out this video if you ever struggle about where to cut losses. What you learn is probably different than what you've ever seen online but that's a good thing, as 90% of traders actually lose money because they listen to bad (usually free) advice...
Market order - BID -> ASK, bad idea using a market order
Limit order
Mental stop - Exit position and take a loss
Probability of touch
Probability ITM
How do we manage risk?
Small uncorrelated risk
Key takeaways
- Be patient with your losing trades;
- Be aggressive with taking profits
- Trade small enough to have the flexibility to let your positions play out.
- Stay active by putting on more uncorrelated positions.
Bets Against the Stock Market Rise to Highest Level in Years
Here is the article.
Short sellers have revived their wagers against the stock market in recent weeks, taking their most aggressive positions in years.
Bets against the SPDR S&P 500 Trust, the biggest exchange-traded fund tracking the broad index, rose to $68.1 billion last week, the highest level in data going back to January 2016, according to financial analytics company S3 Partners. That was up from $41.7 billion at the beginning of 2020 and $41.2 billion a year ago.
Case study: 美股大盘空头头寸
Here is the article.
警惕！大盘空头头寸升至数年来最高水平
近几周，做空者重新开始做空股市，采取了多年来最激进的头寸。
金融分析公司S3 Partners的数据显示，上周追踪大盘指数的最大ETF SPDR标普500指数基金的空头头寸增至681亿美元，创下2016年1月以来的最高水平。这一数字高于2020年初的417亿美元和一年前的412亿美元。
卖空者借入股票并出售，希望以更低的价格回购，并将差价作为利润。在他们最近几周频繁做空的公司中，有一些是旅游相关公司，包括嘉年华集团、皇家加勒比邮轮公司和万豪国际集团和永利度假。
My preparation for market testing low - SPX 1200 - 1500
April 20, 2020
It is time for me to prepare a business plan called market testing low - SPX 1200 - 1500. I like to sell my position in my Par 401 K and VOO $1600 in Key largo, so that I can hold on sideline to wait market drop 10% or 20% and then put back into SPX, and then 50% off SPX 1200 - 1500. I really like to learn more before I can work on any trade.
It will take me 300 to 400 hours to be a good learner about common mistakes for day trade, short term trading and also long term investor. I have to prepare myself to learn first before I can learn how to trade and have good psychology as an investor.
I like to learn more about business, stock market and investor basics. It makes my life more challenge and there are business opportunity for me to make thousands as well in short term as well.
TFSA VFV.TO avg 71.368, 83 share, market value $5,880.55, gain (-58.93)
Key largo Ameritrade.com
VOO 6 shares, avg price $259.10, $1554.60, gains (-51.59)
Par 401 K
$6,000 US dollars <- Need to prepare for SPX 1200 - 1500
Fidelty 500 Index $729.41
T. Rowe Price, $537.59
Pioneer equity income Y. $454.05
30% bond, 70% equity - think about rebalance, SPX 2200, sell 15% bond, purchase equity.
Introduction
It is time for me to prepare a business plan called market testing low - SPX 1200 - 1500. I like to sell my position in my Par 401 K and VOO $1600 in Key largo, so that I can hold on sideline to wait market drop 10% or 20% and then put back into SPX, and then 50% off SPX 1200 - 1500. I really like to learn more before I can work on any trade.
My business plan
It will take me 300 to 400 hours to be a good learner about common mistakes for day trade, short term trading and also long term investor. I have to prepare myself to learn first before I can learn how to trade and have good psychology as an investor.
I like to learn more about business, stock market and investor basics. It makes my life more challenge and there are business opportunity for me to make thousands as well in short term as well.
TFSA VFV.TO avg 71.368, 83 share, market value $5,880.55, gain (-58.93)
Key largo Ameritrade.com
VOO 6 shares, avg price $259.10, $1554.60, gains (-51.59)
Par 401 K
$6,000 US dollars <- Need to prepare for SPX 1200 - 1500
Fidelty 500 Index $729.41
T. Rowe Price, $537.59
Pioneer equity income Y. $454.05
30% bond, 70% equity - think about rebalance, SPX 2200, sell 15% bond, purchase equity.
Sunday, April 19, 2020
Charles Schwab - Par 401 K after crash and rebounce
April 19, 2020
I was so busy with another two investment accounts. So I did not do anything for this account during crash and rebounce from February 20 to April 19, 2020. I have to review the portfolio and simplify the positions, so that I can easily rebalance when market swings.
Right now, the market value is still less than book value last April 2019 I started to build the portfolio.
I should just sell everything in the portfolio this January. And then I set up a portfolio around March 23, 2020. I should set up 80% equity and 20% bond. Now I can sell all positions, and wait another 10% drop at least.
I will sell it before the market goes down from March 17 highest point 20%. And I will think about reorganize the portfolio.
Introduction
I was so busy with another two investment accounts. So I did not do anything for this account during crash and rebounce from February 20 to April 19, 2020. I have to review the portfolio and simplify the positions, so that I can easily rebalance when market swings.
Case study
Right now, the market value is still less than book value last April 2019 I started to build the portfolio.
Actionable Items
I should just sell everything in the portfolio this January. And then I set up a portfolio around March 23, 2020. I should set up 80% equity and 20% bond. Now I can sell all positions, and wait another 10% drop at least.
I will sell it before the market goes down from March 17 highest point 20%. And I will think about reorganize the portfolio.
WHY 90% OF TRADERS LOSE MONEY
Here is the link.
There are 4 big mistakes almost every trader makes. Luckily, they can be easily fixed. These mistakes I highlight in this video are probably things you haven't heard before. Luckily we can flip these points around and come up with a very powerful trading strategy. Charlie Munger once said, "problems frequently become easier to solve if you turn them around in reverse... unless you're more gifted than Einstein, inversion will help you solve problems".
1. Buy breakouts and sell breakdowns
2. Cut losses short.
3. Big position sizes
4. Don't overtrade! Increase size..
Never cap your profit ...
There are 4 big mistakes almost every trader makes. Luckily, they can be easily fixed. These mistakes I highlight in this video are probably things you haven't heard before. Luckily we can flip these points around and come up with a very powerful trading strategy. Charlie Munger once said, "problems frequently become easier to solve if you turn them around in reverse... unless you're more gifted than Einstein, inversion will help you solve problems".
1. Buy breakouts and sell breakdowns
2. Cut losses short.
3. Big position sizes
4. Don't overtrade! Increase size..
Never cap your profit ...
Why Only 10% of Stock Traders are Successful (and 90% Fail)
Here is the link.
In this video lesson, I am going to share with you why is it that 90% of traders fail and only 10% are really successful in the stock market. We are going to talk about the psychology of trading and the mindset that you need in order to be a successful trader. We'll talk about the difference between successful and unsuccessful traders, and I’ll show you how is it that you can become successful when so many other people fail. Are the odds against you? Is it impossible to succeed as an independent investor? Is there something you can do about it?
In this video lesson, I am going to share with you why is it that 90% of traders fail and only 10% are really successful in the stock market. We are going to talk about the psychology of trading and the mindset that you need in order to be a successful trader. We'll talk about the difference between successful and unsuccessful traders, and I’ll show you how is it that you can become successful when so many other people fail. Are the odds against you? Is it impossible to succeed as an independent investor? Is there something you can do about it?
Why USA has to stimulate the stock market? My thoughts as a Christian
April 19, 2020
I have to spend time to learn how to trade stock. I am wondering why USA cannot increase interest rate, Canada as well, so that I can deposit my saving into the bank, and let the inflated house market cool down? Two million people deferred mortgage payment, no single condo on the market to sell to predict housing market crash.
I went through the most crazy month with my 10 years Canada saving. One side is to push myself to learn, and I understand that my 10 year nonstop working cannot beat a person with good investment sense, $6000 dollars in 2010 in Microsoft stock will generate $60,000 return in 10 years. What is the value of my hard working, non-stopping work 10 years?
I do not purchase a new car, used car instead; I did not replace four new tires, I repaired the tires. I did not purchase a new mobile phone two years ago, instead used one. I do not have mobile phone plan, just pay as you go.
Introduction
I have to spend time to learn how to trade stock. I am wondering why USA cannot increase interest rate, Canada as well, so that I can deposit my saving into the bank, and let the inflated house market cool down? Two million people deferred mortgage payment, no single condo on the market to sell to predict housing market crash.
Stock market crazyness
I went through the most crazy month with my 10 years Canada saving. One side is to push myself to learn, and I understand that my 10 year nonstop working cannot beat a person with good investment sense, $6000 dollars in 2010 in Microsoft stock will generate $60,000 return in 10 years. What is the value of my hard working, non-stopping work 10 years?
I do not purchase a new car, used car instead; I did not replace four new tires, I repaired the tires. I did not purchase a new mobile phone two years ago, instead used one. I do not have mobile phone plan, just pay as you go.
Ep 146: 12 Common MISTAKES Beginners Make in Stock Trading
Here is the link.
Making a mistake when you first start trading can be both disappointing and discouraging. I’ll let you in on something that I’ve learned throughout my professional experience- no one knows exactly what to do when they start out in the stock market for the first time. However, there is a way that you can avoid these mistakes. One of the best things you can do to elevate your trading success is to learn from the mistakes of those who have already gone through the trial and errors of all the beginning stages. In this video, I will share with you a handful of common mistakes that beginning traders make so that you can learn how to avoid a wide range of mistakes ranging from inner game to outer game, underestimating the ease of the market, and creating bad trading habits. 1 - believing that the market is easy to make money 2 - having no plan of action for each trade 3 - having the wrong habits 4 - emotionally tied to a stock 5 - not taking profits into strength 6 - holding on to losers 7 - averaging down your position incorrectly 8 - using excessive leverage 9 - trying to save a position (compensating in new positions, trying to short it, etc) 10 - following people blindly 11 - looking at the short-term instead of the long-term 12 - not investing in yourself
Making a mistake when you first start trading can be both disappointing and discouraging. I’ll let you in on something that I’ve learned throughout my professional experience- no one knows exactly what to do when they start out in the stock market for the first time. However, there is a way that you can avoid these mistakes. One of the best things you can do to elevate your trading success is to learn from the mistakes of those who have already gone through the trial and errors of all the beginning stages. In this video, I will share with you a handful of common mistakes that beginning traders make so that you can learn how to avoid a wide range of mistakes ranging from inner game to outer game, underestimating the ease of the market, and creating bad trading habits. 1 - believing that the market is easy to make money 2 - having no plan of action for each trade 3 - having the wrong habits 4 - emotionally tied to a stock 5 - not taking profits into strength 6 - holding on to losers 7 - averaging down your position incorrectly 8 - using excessive leverage 9 - trying to save a position (compensating in new positions, trying to short it, etc) 10 - following people blindly 11 - looking at the short-term instead of the long-term 12 - not investing in yourself
3 Common Psychological TRADING Mistakes
Here is the link.
4/20/2020, 9:35 PM
Solutions:
No more chat rooms, social media, seclude yourself
I like to take breaks, learn more about trade common mistakes first.
- Fear of missing out trading - F.O.M.O Trading
- Revenge trading
- Gambler's fallacy
Solution to revenge trading:
Trade smaller size!
Your positions are probably way too big.
"You will some... you lose some... Long as the outcome is INCOME."
Focus on the long term
Don't expect to make money every day!
Gambler
- How to avoid this fallacy?
coin flip = 50/50
Solution:
Exercise awareness
Treat each trade as independent
Actionable Items
4/20/2020, 9:35 PM
Solutions:
No more chat rooms, social media, seclude yourself
I like to take breaks, learn more about trade common mistakes first.
Learn the value of $1500 unrealized gain in Victoria portofolio - Never too late
April 20, 2020
I do not understand the value of $1500 unrealized gain on my VAB.TO position in March 12, one month later, I learn how hard it is to be a day-trade in order to make $200.00 dollar profit, 10 bets with 2% stop loss. Finally I understand that as a long term investor, I have to learn how hard it is for me to make $1000 profit this market after 28% rebounce.
I tried to boast my unrealized gain $2000 dollars on March 12 morning, I had chance to share on my favorite wechat group, but I did not know that it is my chance to make $2000 profit instead. I have to act as a business person.
Introduction
I do not understand the value of $1500 unrealized gain on my VAB.TO position in March 12, one month later, I learn how hard it is to be a day-trade in order to make $200.00 dollar profit, 10 bets with 2% stop loss. Finally I understand that as a long term investor, I have to learn how hard it is for me to make $1000 profit this market after 28% rebounce.
My mistake
I tried to boast my unrealized gain $2000 dollars on March 12 morning, I had chance to share on my favorite wechat group, but I did not know that it is my chance to make $2000 profit instead. I have to act as a business person.
8 Reasons Paul Tudor Jones is one of the Greatest Traders of All Time
Here is the link.
Paul Tudor Jones is one of the best traders and fund managers in my book and he has the returns to prove it. Yes, he has times of drawdowns but generally speaking he's had a great career.
Paul Tudor Jones is one of the best traders and fund managers in my book and he has the returns to prove it. Yes, he has times of drawdowns but generally speaking he's had a great career.
8 reasons
- Price Action Focused - he never focused on the fundamentals, he mainly focused on price action. He tried to get on the end of moves and made a lot of money fading extreme trends. - Flexible - Lack of Ego. If you're wrong, you're wrong. Paul had a very high filter process to leave only the stocks he firmly believed in to stay in his portfolio. - Learnt from failure. - Never added to a loser. Don't add to losers because if you're wrong it is going to be devastating. - Risk Management first - Trader Second. At the end of the day it is how good you are with risk control. Always ask yourself - what is the risk? - Cut Losses Quickly - similar theme to the losers. Risk control is the most important thing in trading. - Reduce position size during losing streaks. - Paul Tudor Jones only takes high risk - high reward tradesThe Top 5 Technical Indicators for Profitable Trading
Here is the link.
Traders looking for profitable technical indicators. Traders wanting to learn how to use technical indicators. Traders wanting to see examples of how to use indicators to identify trades. Beginners looking for an understanding of how to use technical analysis. Contents: -Most common mistakes with technical indicators -Types of indicators -Indicator 1: RSI -Indicator 2: MACD -Indicator 3: Bollinger band -Indicator 4: Supertrend indicator -Indicator 5: Indicator confluence -Trading examples -Summary
Traders looking for profitable technical indicators. Traders wanting to learn how to use technical indicators. Traders wanting to see examples of how to use indicators to identify trades. Beginners looking for an understanding of how to use technical analysis. Contents: -Most common mistakes with technical indicators -Types of indicators -Indicator 1: RSI -Indicator 2: MACD -Indicator 3: Bollinger band -Indicator 4: Supertrend indicator -Indicator 5: Indicator confluence -Trading examples -Summary
5 Trading Mistakes New Traders Make and HOW To FIX Them
Here is the link.
5. Not calculating risk
- Risk off of the nearest level of support
- Measure the potential percentage loss
- Don't risk over 5%
4. No stop losses
- stops limit the amount of potential loss
- Not all stocks go green after you enter
- Without stops, quick price swings can make for large preventable losses
- Create stops right after you enter
- Set stops at nearest support or just below
- Move up stops as the price increases which can also be used to take profit
3. Trading too much capital
- overutilization of capital per trade
- Risking more than 50% of account size per trade
- Very stressful with every candlestick move
- No more than 50% of account size per trade and scale to 10% as you grow
- Trade capital you're willing to lose
2. No strategy
- Trade every stock, every pattern, every time
- No routine
- Jack of all trades,
- Find 1 to 2 patterns and stick with them
- Develop the Routine and strategy
- Once you've found consistency and profit, then move to the next.
1. Thinking it's easy
- If he can dot it I can do it
- Lack of studying
- No effort for self improvement
5. Not calculating risk
- Risk off of the nearest level of support
- Measure the potential percentage loss
- Don't risk over 5%
4. No stop losses
- stops limit the amount of potential loss
- Not all stocks go green after you enter
- Without stops, quick price swings can make for large preventable losses
- Create stops right after you enter
- Set stops at nearest support or just below
- Move up stops as the price increases which can also be used to take profit
3. Trading too much capital
- overutilization of capital per trade
- Risking more than 50% of account size per trade
- Very stressful with every candlestick move
- No more than 50% of account size per trade and scale to 10% as you grow
- Trade capital you're willing to lose
2. No strategy
- Trade every stock, every pattern, every time
- No routine
- Jack of all trades,
- Find 1 to 2 patterns and stick with them
- Develop the Routine and strategy
- Once you've found consistency and profit, then move to the next.
1. Thinking it's easy
- If he can dot it I can do it
- Lack of studying
- No effort for self improvement
Stop Losing Money Trading and Recover your Account
Here is the link.
What was the cause ...
Without data you're just another person with an opinion. W. Edwards Deming, Data scientist
Make a plan, test it, tweak it and trade it!
Trade your strategy and keep learning, you will always be a student of the markets.
What was the cause ...
Without data you're just another person with an opinion. W. Edwards Deming, Data scientist
Make a plan, test it, tweak it and trade it!
Trade your strategy and keep learning, you will always be a student of the markets.
The 2% Stop Loss rule (Trading risk management)
Here is the link.
Risk management is one of the most important aspects of trading. How does one manage risk so that a run of losing trades doesn't wipe you out? How does one deal with the emotional risk of not acting on a stop loss? How much money do you risk in any trade? The 2% rule is by far the best way of managing all of these potential problems and ensuring that your position size for every trade is exactly spot on so you don't have to worry about the money - just focus on the charts and the discipline.
Risk management is one of the most important aspects of trading. How does one manage risk so that a run of losing trades doesn't wipe you out? How does one deal with the emotional risk of not acting on a stop loss? How much money do you risk in any trade? The 2% rule is by far the best way of managing all of these potential problems and ensuring that your position size for every trade is exactly spot on so you don't have to worry about the money - just focus on the charts and the discipline.
Why You SHOULD Have One - Trading Risk Management Strategy
Here is the link.
In this video - 'Build Your Own Trading Risk Management Strategy (For Beginners)' I break down and explain what key points should be included in a good risk management strategy. This video is aimed more at forex traders and indices traders although the principles can be applied to whole range of trading types. If you are currently trading without using any risk management strategies then I highly suggest you watch this video. Trading with a risk management is absolutely vital to any trader's success whether you trade forex, indices or any other markets.
4 points:
1.
Back testing:
2. The total percentage drawdown you can have your account before you stop trading for the day
3. The amount of risk you have at any moment of your account.
4. When to increase or decrease you risk parameters depending on your account growth or decline
Protect your account from large drawdowns
Not a get rich quick scheme!
A good risk management strategy to protect your account in that endeavor.
In this video - 'Build Your Own Trading Risk Management Strategy (For Beginners)' I break down and explain what key points should be included in a good risk management strategy. This video is aimed more at forex traders and indices traders although the principles can be applied to whole range of trading types. If you are currently trading without using any risk management strategies then I highly suggest you watch this video. Trading with a risk management is absolutely vital to any trader's success whether you trade forex, indices or any other markets.
4 points:
1.
Back testing:
2. The total percentage drawdown you can have your account before you stop trading for the day
3. The amount of risk you have at any moment of your account.
4. When to increase or decrease you risk parameters depending on your account growth or decline
Protect your account from large drawdowns
Not a get rich quick scheme!
A good risk management strategy to protect your account in that endeavor.
The New Toughness Training for Sports by Dr. Jim Loehr
Here is the link.
The new toughness training for sports
Weakness - check list of weakness, which one is the weakest one?
Goal - positive state - ideal performance state - brain wash yourself
Opposite - golf will say - I love pudding ... relate to weakness you have
flip around
Think tough, work tough - performance goals vs outcome goals
The new toughness training for sports
- IPS - ideal performance state
- Challenge response
- Making waves
- + brainwashing - weakness like backhand
- Goals
Ideal performance state -
Rule No. 1 - project, or act what you like to feel
Weakness - check list of weakness, which one is the weakest one?
Goal - positive state - ideal performance state - brain wash yourself
Opposite - golf will say - I love pudding ... relate to weakness you have
flip around
Think tough, work tough - performance goals vs outcome goals
Characteristics of Successful Athletes and Traders!
Here is the link.
What's the difference between Traders and Athletes? Not much, other than the physical aspect! Traders and athletes require a certain mentality and focus to get in the trenches every day and earn their keep! During this Coronavirus pandemic, we have a lot of volatility, the Fed is trying to save the market with stimulus added by Trump and Jerome Powell. Making it the perfect time to learn about what kind of mentality it takes to be a successful trader, learn from the athletes. Use good futures trading platforms to take advantage of this like Sierra chart where you can do technical analysis and volume profiles and market profiles to trade price action and order flow.
Sports performance -
What's the difference between Traders and Athletes? Not much, other than the physical aspect! Traders and athletes require a certain mentality and focus to get in the trenches every day and earn their keep! During this Coronavirus pandemic, we have a lot of volatility, the Fed is trying to save the market with stimulus added by Trump and Jerome Powell. Making it the perfect time to learn about what kind of mentality it takes to be a successful trader, learn from the athletes. Use good futures trading platforms to take advantage of this like Sierra chart where you can do technical analysis and volume profiles and market profiles to trade price action and order flow.
Sports performance -
- Mental toughness
- setbacks - determine if you come back from setbacks - bounce back like a pro
- Know you have unique ability - edge: discipline, trading plan
- Be motivated to learn - support where you like to go
- Remain focused on your current goal
- Read the price action
- Regain psychological control
- competition & anxieties are inevitable - you can learn to handle
- Don't be affected by other's performance
- Thrive on pressure moments
- Avoid all distractions
- Switch on/ off, and get ready for next day
Common Trailing Stop Mistake and How To Use it the Right Way
Here is the link.
Trailing stop
4:55 / 6:42
Half half strategy
Take half out of market - manage open profit with zero risk
Trailing stop loss - average profit
Make more profit with less risk
Be consistent - increase your confidence, build your trading psychology.
8 ticks - 1/2 half - like a tradepro - make more money, less risk
- another half - winner run
Focus on small win, build your foundation, let your winner run.
Trailing stop
4:55 / 6:42
Half half strategy
Take half out of market - manage open profit with zero risk
Trailing stop loss - average profit
Make more profit with less risk
Be consistent - increase your confidence, build your trading psychology.
8 ticks - 1/2 half - like a tradepro - make more money, less risk
- another half - winner run
Focus on small win, build your foundation, let your winner run.
Mint trend - investment accounts rebounce 12 business days
April 19, 2020
It is tough for me to learn from stock market. The USA government treasury department made a few emergency help for the market, and I like to document my investment account balance history from lowest day March 23, and 12 business day rebounce with 28%.
Comparison
I did not do anything for my Par 401 K account. But it should take me less than one hour to sell highest point, and then get back into the market when market is lowest on March 23, 2020.
I should learn to prepare a check list, so that I have things to follow instead of being controlled so many emotions when market was lowest on March 23, 2020.
My investment account market value went up from $86183 dollars, March 23, SPX 2237 to $99473, April 19, SPX 2874.
I like to prepare market to test low around SPX 1200, the market value of all my investment will go down $16000 from 2200 to 1200. I need to take a few accounts stop loss, and then let one account continue to swing with the market.
Introduction
It is tough for me to learn from stock market. The USA government treasury department made a few emergency help for the market, and I like to document my investment account balance history from lowest day March 23, and 12 business day rebounce with 28%.
Mint trend
Comparison
Actionable Items
I did not do anything for my Par 401 K account. But it should take me less than one hour to sell highest point, and then get back into the market when market is lowest on March 23, 2020.
I should learn to prepare a check list, so that I have things to follow instead of being controlled so many emotions when market was lowest on March 23, 2020.
My investment account market value went up from $86183 dollars, March 23, SPX 2237 to $99473, April 19, SPX 2874.
I like to prepare market to test low around SPX 1200, the market value of all my investment will go down $16000 from 2200 to 1200. I need to take a few accounts stop loss, and then let one account continue to swing with the market.
Create Your Trading Plan - Routine and Trading Psychology for Success
Here is the link.
5. The "Phoenix" Game plan
Week 1: Watch the market
Week 2: Find the trends and levels
Week 3: Demo the trends only, with a twist.
Week 4: Demo the trends with 5-8
Week 5: Watch the market until...
Remove attachment from the market.
Basic routine to start - PRINT it!
9:20 AM - write down your morning levels on a piece of paper!
9:40 AM - who's in control? What's a good trading level? what are my qualifiers?
Caution!
Don't just show up hoping to wing it.
This is not "income on the side". You are going to war with gladiators!
Learn to fight or get used to pain and loss.
Bring your A game or stay the ... home.
Don't fight alone
Swing traders
5. The "Phoenix" Game plan
Week 1: Watch the market
Week 2: Find the trends and levels
Week 3: Demo the trends only, with a twist.
Week 4: Demo the trends with 5-8
Week 5: Watch the market until...
Remove attachment from the market.
Basic routine to start - PRINT it!
9:20 AM - write down your morning levels on a piece of paper!
9:40 AM - who's in control? What's a good trading level? what are my qualifiers?
Caution!
Don't just show up hoping to wing it.
This is not "income on the side". You are going to war with gladiators!
Learn to fight or get used to pain and loss.
Bring your A game or stay the ... home.
Don't fight alone
Swing traders
Create Your Trading Strategy - How to Exit a Trade to Maximize Profits
Here is the link.
Exit is emotion. Either you cut gain or losses. We think that cut game is bad, cut loss $1 feels $3.00.
Exit criteria
2:47/ 7:38
When will you exit trades?
Can you exit early on a manual exit?
If yes, what do you need to see?
I use the analogy of a 747.
Disqualifiers
I will exit the trade manually when I lose:
Qualifier 1:
Qualifier 2:
Qualifier 3:
Qualifier 4:
Trading edge, ditching hope
4. Drawdowns
How much percentage of your account will you lose before you stop trading and reevaluate?
Relationship
Business
Exit strategy -
write down, spell out!
Exit is emotion. Either you cut gain or losses. We think that cut game is bad, cut loss $1 feels $3.00.
Exit criteria
2:47/ 7:38
When will you exit trades?
Can you exit early on a manual exit?
If yes, what do you need to see?
I use the analogy of a 747.
Disqualifiers
I will exit the trade manually when I lose:
Qualifier 1:
Qualifier 2:
Qualifier 3:
Qualifier 4:
Trading edge, ditching hope
4. Drawdowns
How much percentage of your account will you lose before you stop trading and reevaluate?
Relationship
Business
Exit strategy -
write down, spell out!
Trade Management: Entries, Exits, Risk Reward Calculations and Stops
Here is the link.
What role does trade management play in your trading? Francis Hunt a technical analysis trader and coach comments on trade management, trade entries and exits, risk reward calculations and stops. In trade management is when you've just entered a trade and that's the part when you're least stable psychologically. Comment on the hunt for stability in trading. How can one plan trade entries and exits? How to set stop losses and targets? Why are trailing stops not a trading strategy? How important is it to look at Risk to Reward calculations?
What role does trade management play in your trading? Francis Hunt a technical analysis trader and coach comments on trade management, trade entries and exits, risk reward calculations and stops. In trade management is when you've just entered a trade and that's the part when you're least stable psychologically. Comment on the hunt for stability in trading. How can one plan trade entries and exits? How to set stop losses and targets? Why are trailing stops not a trading strategy? How important is it to look at Risk to Reward calculations?
Why do so many Spread Bettors Lose Money?
Here is the link.
The Trade
- Trade with the trend - no trend, no trade
- Plan the trade, trade the plan
The Entry
- Wait for the signal
- When the signal comes, don't wait
- A weak signal is still a signal
- Trade what you see, not what you think
The Exit
- Never let the profit go back into the market
The Stop-Loss
- Set a stop-loss on the entry
- Always obey the stop-loss
- Don't wait for the stop to be hit, close or cut losers early
The Sins of Trading
- Money Management - most of the newcomers fail in this regard, you should risk only a small percentage amount of your overall pot at any one time
- Trading against the trend
- Trading without a stop-loss
The Rules of Trading will keep you alive, the Sins of Trading can kill you. Don't give up.
Why do some many Traders Lose Money Spread Betting?
- Not understanding of the very basics of investment or how to read a balance sheet
- A gambling mentality
- Gearing up to ridiculous levels
- Very short term view
- Many buying on tips etc trying to make a quick killing rather than doing any substantial research.
90% of traders lose money... So how to be in the top 10%?
Here is the link.
90% of traders lose money... http://www.financial-spread-betting.c... So how to be in the top 10%? Francis Hunt a technical analysis trader and coach comments. What are the bad habits to avoid? What are some trading mistakes to avoid? Is trading forex, indices and commodities a giant casino? Decide on a strategy that looks after all elements of money management. You've got to manage losses and you need to have a system that will make more money than it loses. Patterns are probably the most important technical analysis tool for me.
90% of traders lose money... http://www.financial-spread-betting.c... So how to be in the top 10%? Francis Hunt a technical analysis trader and coach comments. What are the bad habits to avoid? What are some trading mistakes to avoid? Is trading forex, indices and commodities a giant casino? Decide on a strategy that looks after all elements of money management. You've got to manage losses and you need to have a system that will make more money than it loses. Patterns are probably the most important technical analysis tool for me.
Saturday, April 18, 2020
Top habits of successful traders
Here is the article.
- Set goals
- Keep a journal
- Manage your risks
- Control the time you spend on trading
- Change your environment
- Use the weekends
- Socialize
- Keep learning
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