Category Archives for Strategy

How To Catch A Falling Knife And Profit More Than 65%Of The Time

 

My Typical Trade Walkthrough

 

Today I am going to share a very recent trade.  From this article you will see how I trade a strategy to make consistent profits from daily charts.  I will show you why and how I Enter the trade, where I place my Stop loss, and why and how I Exit the trade. 

 

What Type of Trader am I?

 

I design strategies to meet my objectives and beliefs.  My strategies consist of a set of rigid rules defining how I enter and exit trades.  Additional rules include where I place stop losses, position sizing (part of my money management) and how many trades I can have open simultaneously.

However it is down to my discretion as to whether or not I actually take the trade.   For example, If there is a very sharp drop in the general market, I may have lots of buys signals.  But I have learned to recognise market conditions that would not be favourable to my strategy.  Jumping in and buying this big unusual drop in the market could quite often be like trying to catch a falling knife.

Let’s get on to an example of a recent trade: Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

2 Minute Technical Analysis

 

Anybody who becomes interested in trading the markets cannot help but come across this thing called “Technical Analysis”  

There’s tons of literature out there on technical analysis, a quick search in Google can give you days worth of reading.

But today, I’ve made a 2 minute video simply explaining what it is, and how to use it to make yourself money:

What is Technical Analysis:

  • Price Charts essentially showing Price Action + Volume
  • From the Price Action we can find Regular Patterns
  • From Regular Patterns we can develop a trading strategy that gives us an Edge
  • An Edge gives us a higher probability of winning than losing over a period of time
  • Our Edge allows us to take trades time and time again making Consistent Profits

 

So if you didn’t already know what Technical Analysis was, then hopefully you have a better idea now.  I get so many people asking Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

Here’s a Quick Way to Blow Up Your Trading Account

Know Your Position Sizing

 

Today I have created a short video touching on Position Sizing or Bet Size if you are using Spread Betting.  It is essential that you understand this lesson so you don’t wipe yourself out before barely getting started trading. Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

How To Master The Art Of Risk vs Reward – R-Multiples Uncovered

 

The Backbone of Performance Measurement

 

I wanted to write this brief but extremely important article about the way I measure trading performance.  Whenever you hear people talking about individual trades they’ve made or lost money on, they very often refer to the percentage gain or loss.

Not me.  I will always record each winning or losing trade in terms of an R-Multiple.  I talk about yearly returns as a percentage of my trading capital but not individual trades.

 

What Is An R-Multiple?

This is not something I created.  It’s a method I learnt from Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

ProRealTime Charts Made Easy – Simple 7 Minute Guide

Today I created a short video to get you started with a great free charting package I use from ProRealTime.  I run through some basics including:

  • How to search for a particular instrument
  • Introduce you to their pre-made lists
  • How to add indicators to the chart including Simple and Exponential Moving Averages
  • How to add oscillators including MACD and Relative Strength Index
  • How to swap from Daily to Weekly to Monthly charts
  • How to change the type of chart from Candlestick to Line and Bar Chart

Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

How Stock Trading Legend Nicolas Darvas Saved His Fortune (And How You Can Too)

 

I have recently designed a new Short Selling strategy for stocks.  I am ready to start testing RS27 in realtime.  However, it has been nearly 6 weeks and I have not taken a trade using this strategy yet.  The reason is the main market conditions are not right.

I have stated many times that certain strategies work best (and worst) in certain market types.  I understand the mechanics of how this strategy works and I also know form experience that this type of strategy doesn’t work well in Choppy Volatile markets.  It performs better in quieter, trending markets.

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Market Type Over The Last 6 Weeks

 

sp500 8:2:15

 

Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

How To Go Broke Taking 3:1 Reward to Risk Ratio Trades

 

Uncovering Common Myths

 

When I first started to learn about trading the markets I read loads of books.  I still do,  I love to learn.  Something that you can’t help to come across is the old recommendation of the 2:1 or 3:1 reward to risk ratio trades.  This subject came to my attention the other day when talking with a group of traders and inspired me to write this article.

When researching the subject of reward to risk whether in trading books or on websites you will be overwhelmed with quotes like this:

The golden rule of risk:reward is that from each trade your reward should be at least 3x your risk meaning the risk reward ratio should be at least 1:3.

Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

Trading Strategy RS27 – Jan 26th 2015 Update

 

To Recap…

We’re heading into the last trading week of the month.  Today I’m going to give you an update on one of the new strategies I have implemented this year.  If you haven’t already read about it then you can get more details in an earlier post here.

Briefly explained, I am testing a short-selling only strategy for stocks trading on the American markets.  It looks to profit from short term down moves lasting from a few days up to a few weeks max.

Downtrends are identified, I then look for brief rallies which become very short-term overbought which I then short sell into.  Profits are taken as soon as prices become oversold.

Identifying overbought and oversold conditions is done by using an oscillator called Relative Strength Index or RSI.

 

Results To Date:

Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

Gambling: YES or NO?

Is Financial Trading Like A Night In Vegas?

 

In my opinion.  NO WAY!

I treat trading the markets as a business.  Always have done.

Although I must admit, when I very first started to dabble I did buy shares in a few companies based on magazine articles and tips.  Some worked out, some didn’t.  But I always had a money management strategy in place.  And certainly learnt since then that tips in magazines are no way to a consistently profitable approach to trading.

 

What Is Gambling?

 

Each of us will have our own ideas and definitions of what gambling is.  So i’m not going to quote the dictionary or wikipedia definition.  I’m going to refer you to my idea of what gambling is.

I see gambling purely as a means of entertainment only.  Sure, you can get a lucky break and win considerably on the occasion but that’s all it is; the occasion.  Go back to that roulette wheel time and time again and you will be extracted of your cash!

Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.

How To PROFIT From Short-Selling In A Bull Market

 

Take Advantage of Quick Down Moves In An Up Market

 

January 2015 – Implementing A New Strategy – RS27

 

chess

 

When I first got interested in the Stock Market, I was always looking for new stocks to trade.  I’d follow newspaper and magazine tips and trawl through what internet forums were around back then.  Nowadays, I’m still looking for ideas, but not ideas of what stocks to trade but ideas of how to trades those stocks. Continue reading

Are you struggling to make consistent profits in today's markets? As a thank you for reading this post I would like to offer you my complete downloadable guide to a very successful system I personally trade and profit from. Just click the download button below to discover how the professionals consistently take money from the markets.