Any Instrument – Discussions on Price Action, Technical & Fundamental Analysis
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Without wanting to get too involved here. @JohnScher
As a German, do you still know Kay Brendel? Otherwise google it. 13 years ago, this boy made over €70,000 from €1,000 in one year. Documented and traceable. With a scalping approach. So yes, of course it is possible to earn a lot of money with relatively little risk in a very short time. Why shouldn’t it be possible here too?
Don’t make so much wind here
Thank you. There was much to-do about nothing
Hey shug,
As I told you, I can do it too. Therefore I have no reasons to distrust anything. The point (of John, but maybe others’ too) is that it doesn’t seem necessary to show off throughout. It could be wind for many. Noise for many more. It’s adrenaline to you.
The mere point (low and behold) is that most people won’t see anything special in it. Or the opposite, they could be jealous and therefore don’t trust it. Just stick to that one thread could be a good idea. Then people can just skip reading that.
Regards,
PeterI prove my point as well as go home without there £8500
Can’t say fairer than that … good idea of your wife’s!
I’m glad shug updates us on progress on his scalps; although I trade very similar, if I followed a rule to exit with small profits (like shug) then I wouldn’t get stuck in losing trades so often.
Shug has proved scalping works. There are very few on here who do scalp (?) and / or don’t share their success with us or their methods.
Shug has shared both his results and his methods and I thank him for his sharing.
This Forum can get very quiet at times and trading is a lonely pursuit; shugs input (and others) provides welcome discourse … long may it continue!
Thanks m8!
Sometimes I forget its not just me and you talking on here, I suppose a lot of people don’t get involved in conversation and just read. I have been quick with my answers and the misses is correct, I might be analysing what people say wrong if there from a different part of the world the meaning I get might be misinterpreted.
Just fed up trying to justify and defend myself, I have been brought up to nip things like that in bud right away I’m not one to shy away from confrontation mentally or physically with anyone. I suppose that probably comes across on here as well.
The misses usually keeps me grounded!
I have been restraining myself a lot from saying a number of things but I promised the misses I wouldn’t get caught up in petty arguments. Its not constructive for anyone.
I had a good sleep on it last night and decided to bow out of any forums and just concentrate on my trades
You have my email if you want to keep in contact, I too have enjoyed our conversations
I have opted out of the emails from the forum so I’ll not be contacted letting me know by email that responses are there and I will not be dragged into any other disputes
Can’t be bothered m8 life is too short for that nonsense
Anyway, you take care m8 and I’ll catch up with you
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I always read what you write, I never answer or participate because I just have to learn, I read, I try to understand the logic in your way of trading, but I certainly think there are many people who read you and he finds what you say interesting even without answering
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I have been thinking, I have decided to do all you guys a favour, you’re probably surprised but If it helps you become better scalpers then I’m willing to do it.
Today I had 30 good trades scalping us30, I’ll add some more trades before then as well.
Once my trading account hits £100.000 (which it will) might take a bit of time but it will.
I will post a picture of trades here in the forum with a few sentences describing what I do and why I took the trades.
Trading is simple guys (when you know what to do) it really is. I know that will spark some fire in some people here, but You will see how I do it and when you do the first thing you will do is go on a chart and see that you can do it as well.
Most of you will change how you normally trade to what I’m doing I can promise you that!
I know a picture is worth a thousand words and I can talk until I’m blue and still it might not sink in so This is the only way I can think of doing it that everyone will understand it.
Once I show you how easy it is you will kick yourself for not noticing it yourself but don’t be too hard on yourself because it took me enough time!
You won’t hear from me for a while now as I’ll be focusing only on my trading to get the account up.
If you are willing to be patient and hang around, you will be rewarded.
Note for the disbelievers: don’t be so quick to go against someone just because you don’t know or understand them, there is too much conflict going on with wars etc every day it doesn’t help anyone.
Anyway, guys I’ll be back when the account hits my target so be well have fun, don’t blow your trading accounts before I get back!
shug you could post a link to a google docs version … if you use Google Drive?
Or post a link to where you might host the .docx … onedrive maybe or similar?
I do similar with this information via the link below
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TRADING PSYCHOLOGY
I will start off by explaining how the brain works and how it might affect your trades.
Effective state management training
Every good trader knows how important controlling your state of mind is while trading.
It’s very easy to tell someone to do something, it’s also very easy to say ‘yes I know what I should be doing’ but I end up doing something else instead. Why do one thing when you know you should be doing the opposite?
Why hold on to a losing position? Why pull out too early on a
trade? Frankly I don’t blame you for doing it after all your brain
has saw it with its own eyes, your brain remembers the last time your position got took out and the trade came back after that and you would have gained a lot of points or the last time you had a chance of taking a profit and you didn’t and the trade started going against you and you ended up with a big loss.
Your brain is a recorder it records all these experiences even more so if there was a lot of feelings attached to the memory. You might forget consciously but your subconscious mind never forgets!
You might get an unconscious urge to stop a trade out because of a past experience, even though you have no idea why you want to stop it out and the trade might look fantastic. These subconscious urges are really powerful and you’re more likely to do as the subconscious mind wishes you to do.
Once the suggestion or feeling comes from the subconscious mind your conscious mind will consciously look for reasons for pulling the trade too early and god knows there are plenty of reasons I bet you come up with to do it.
It’s the same with watching a trade going against you and
convincing yourself that it will stop and turn in your favour. How
many times has the market moved a lot further than you ever
thought it would?
How the brain works
People have representations by gathering information externally through the five senses; sight, sound, feeling, smell and taste. If you think of these as your inputs (only through these channels can you bring information in to your brain).
Representation is a big word so break it down: re-presentation, representing and you will quickly get the meaning.
Now when the information comes in through your senses it goes through a process of passing through your filters of beliefs, values, memories and habits, we use a process of deletion, distortion and generalisation to sort the information.
So in essence people make maps by gathering information
externally through the five senses, then process them internally to represent a representation or a map of the external experience.
People respond to their own internal maps of trading rather than the way the market objectively is.
The constructed map is really an edited version of what really
happens.
Have you ever heard someone say; you only see it the way you
want to see it?
The truth is that the market will do what the market will do
regardless of what your representations or memories were the last time you saw a head and shoulder pattern or a symmetrical triangle or support and resistance lines or anything else you can think of.
Memory
Your memory is a wonderful thing it’s much more powerful than
any computer. It will remember in great detail what it chooses to remember. If it’s an emotional situation it will remember the event a lot stronger.
Trading is very emotional after all; your cash is in danger of becoming someone else’s with the click of a mouse.
Your brain links and connects things and associates them with past experiences; present experiences, future experiences and other people’s experiences.
If you drive a car into a city you haven’t been before and park your car you will most probably look for a landmark like a big building to associate to where the car is.
Then when you’re looking for your car you will look for the association rather than the car. Where did I park? That’s right it was next to that big building!
Very similar to placing a trade, you will consciously or unconsciously select your trade based on observations from your map that you have created about selecting an entry or an exit.
What you might fail to realise is that because you saw this happen before has no relation to it happening again but you have a good feeling about this trade, why is this?
People see what they want to see because they like to think of themselves as good traders. They also saw this setup before and it worked out ok for them that time.
They most probably made a profit which gave them a good feeling and this good feeling got linked and connected to the reason for the trade in the first place (an anchor), and this is where the notion comes from to place this trade even though the market does what the market does regardless of what you think.
As humans no one likes to be proved wrong but it’s a costly mistake to make. Much rather be proved wrong than to lose all your trading capital!
It’s a really hard thing to go against a belief. Can you recall a time in the past that someone disagreed with one of your beliefs?
When you were young did you believe in Santa? Did you believe in the tooth fairy?
Well I bet that belief is out the window now! Beliefs can and do
change so we know it’s definitely possible to change a firm belief.
So why hold on to a belief about the way you want the market to confirm to your memory of past events?
If you recall a picture it will have brightness, colour, focus, size
and it will be in a certain position in your visual field. These
qualities are the sub-modality qualities of the map represented
back on the screen of our mind.
We all have different ways of relating to trading so we all trade
differently yet some people consistently make better profits than others.
Why is this?
Because the big winners think differently from the losers! They
have a different map there running from inside their head. They don’t go chasing fantasy holy grail trading systems.
Effective state management is the study of what makes the
difference between world class traders and losers. All of the time the difference depends on what happens inside our heads.
Remember this; all of your experiences are a result of what you
see, hear, feel, smell and taste, and the words used to describe
these.
So, every single experience that you have had or will have, from your past, present or future will be a result of what you see, hear, feel, smell and taste and you will give these meaning using words or internal dialog!
We all delete parts of information, if we didn’t we would have
sensory overload. We also distort information, this allows us to
create and imagine things. We all generalise, generalising allows us to understand things.
We make maps in our brain about reality.
These maps are constructions, abstractions, there not real, there symbolic metaphors, they only have the reality we give them.
The brain has thoughts about thoughts. Repeating thoughts create unconscious frames of mind. These frames operate inside our head, totally outside of consciousness.
These frames become our perceptual filters through which we view our world.
We then develop frames within frames and each frame embedded in another frame. These higher frames determine our states that govern our behaviour.
Because we symbolically represent reality we cannot represent it perfectly.
If you have a thought about a thought the second thought will
weaken or strengthen the original thought.
If you have fear and you apply courage or faith to your fear then
the first thought of fear will weaken.
If you have fear and you apply more fearful thoughts then this will strengthen the fear and amplify it.
Applying one state to another is the key to dealing with continuous negative thoughts or emotions or states.
If you decide not to run a negative thought anymore, will it pull a gun out and blow your brain out for not having it?
Thoughts are constructions so the answer would be a definite no to the above question.
Let’s look at the results of applying thoughts to thoughts;
What will happen?
The original thought is stopped
The original thought is neutralised
The original thought is diminished
The original thought is strengthened
The original thought is distorted
The original thought is made permanent
The two thoughts are confused
An unexpected result occurs
A new process is generated
Constructions
Meaning = construction
Frames = construction
Beliefs = construction
Deletion = construction
Distortion = construction
Generalisation = construction
Words are construction
Your brain codes information in the form of qualities or ‘sub
modalities’ as a result of these codes, everything you do inside
your head has a structure.
If you know the structure by asking yourself; what did I do inside my head to get that state then you can change it because its construction.
If you have a bad trade your brain might show you pictures of that and you might talk to yourself about it, in doing so you drive the state and amplify it.
Useful beliefs
1: If what your doing isn’t working do something else, anything
else. If we always do what we always did, we will always get what we always got. If you keep losing your capital do something else!
2: The map is not the territory, map is internal experience, and
reality is the outside world. Reality is what you make of it, we do not see the world as it really is, we construct a model using our representational system based on beliefs, interests, upbringing etc.
The price moving on your chart is reality; don’t hang on to a losing position in hope because of a past experience.
3: Everyone’s different with different maps of reality or
experiences; we all travel through the same territory using different maps.
Every trader has different representations about market
movements.
4: There is no failure only feedback, failure is an opportunity to
learn, if you look at your mistakes as learned experiences of what not to do next time then you can only benefit. When you see them as failures it leads to negative energy. When we fail, this gives us valuable information for change. If you keep a record of your trades it’s a lot easier to find your mistakes.
5: The one with the most flexibility controls the system. To have
more choices means you can change your behaviour until you get the response you want. Trading is ongoing learning experience.
6: The meaning of your communication is the response it gets.
Trading and learning to trade is a feedback loop, if you keep doing the same thing when you lose or the same thing when you win, you will get similar results.
7: Behaviour is the best choice available at the time for a person demonstrating it, even if it might not be the best choice or bring the best outcome. Underlining all behaviour is a positive intent; alcoholism, smoking, fears etc all have a positive intention for the person. Don’t let a limiting belief swallow your profits.
8: People have an infinite amount of resources; they may need help to access the resources at the appropriate time and place. If something is possible for one person then it’s possible for anyone, and it’s just a matter of time. If you do the exact same thing a good trader does then you will get the exact same results they get.
Anchoring
My definition of an anchor is ‘anything’ that brings up a feeling or thought of any other thing. It reminds you of something that you have experienced. It might actually bring back that feeling or emotion completely.
Anchors are everywhere, if you have a dog I bet it’s a lot like
mine. One mention of lead or out or walk and the dog gets up and runs to the door, he/she has linked the word with the process of going out a walk.
If you don’t have a dog I bet you know at a glance when your
partner isn’t in the best of moods, it might be there voice or there face or their body language. This gives you the link to that state you have experienced before.
This also happens in trading, you see something that looks like a great trade, you have no idea why it feels so enticing and you have no idea why the urge to place the trade is so strong. Well it’s most probably an anchor that you unconsciously set because of a past experience.
Anchors can be created accidentally or you can create them with intent.
You can use anchors to deliberately bring experiences under
conscious control and produce their effects when-ever you need them.
You can apply anchors to yourself or others using intent. Your
intent drives the anchor, when you have intent your physiology
changes, your energy level changes and your focus changes.
Your brain sets anchors all the time whether or not you realise it so it’s best to understand anchors so you have more choice.
An anchor can be visual (an image), auditory (a sound),
kinaesthetic (a feeling), a taste or a smell.
You can amplify an anchor by making the qualities of the memory better, bigger or brighter and saying a word like confidence in a really confident tone and amplifying the qualities of the feelings by adding to it.
Associated/disassociated
Consider this simple exercise; Imagine walking up to your refrigerator, opening the door, once inside you open the vegetable drawer, indeed you see a lemon and you take it out the fridge were you proceed over to your chopping board. You grab a knife from the drawer and slice the lemon in half. you then take one of the half’s and slice that in half and you have two quarter slices of lemon. you pick up one of the slices of lemon and squeeze the lemon into your mouth, as you feel the lemon juice pouring into your mouth, is your mouth watering ‘as if’ you actually had lemon juice in your mouth? most people’s mouths will water.
This exercise illustrates that the brain doesn’t know the difference between what you imagine and what you are actually experiencing in the present.
We call this associating; you know if you are associating into a memory if when you recall it you do not see yourself in the picture.
If you can see yourself ‘over there’ in the memory then your dissociated and for most people the feelings from that memory are less intense.
When you recall a memory you will either be associated into the experience or you will be disassociated.
If you’re associated in the memory you will be in the memory
fully, looking out your own eyes, hearing out your ears and feeling all the feelings from the memory.
In the example above that you anchored confidence to your earlobe you would want to be associated into the memory; this would give you the best experience and a stronger anchor.
If your disassociated you will be looking at the memory and seeing yourself as the younger you, over there in the memory.
When you recall a memory from your past you will know if when
you see it, you can see yourself in the picture then your
dissociated, if you don’t see yourself in the picture then your
associated.
If you’re associated you will feel the feelings from that memory
‘as if’ you’re actually experiencing the memory all over again and the feelings will be stronger.
Access a memory of your past and see if you’re not in the picture, if it’s a bad memory that evokes negative feelings then pop out and see yourself over there in the picture and notice how your feelings change.
I know it ‘sounds’ crazy but just do it and you will soon realize I’m being truthful with you.
Think back to what I said earlier; having thoughts about thoughts using deletion, distortion and generalisation can amplify or weaken a state, you might understand that now.
How you feel about an experience has a lot to do with how you
code that experience in your brain. This code I liken to a telephone exchange. If you dial a certain number you will always get that person answering the phone. Dial a different number and you won’t get through or you will get another person.
This next section gets even more interesting I hope I have captured your attention and opened your eyes a little wider. I don’t expect you to take all this information on board right away all I want to do is give you an understanding of how things are, or at least the way I understand it.
Sub modalities
These are the qualities or the DNA of the way our brain codes
experiences, to let us know differences in importance or
significance of past, present or future events.
Keep trading in mind, I know it’s easy to get side tracked by all the possibilities this new information has, so keep your objectives on the surface of your thoughts. You should have the question in mind like; how can I use this for my trading?
Now these codes determine how we feel about something because they change the meaning it has for us.
How does your brain know the difference in time? How does it
know what’s important and what’s not?
These sub modalities are important to notice and change if your
coding your good experiences in a negative way, for example; you might be coding your good experiences dark, dissociated, fuzzy, small and sketchy, and you might be coding your bad experiences bright, clear, in colour, associated, big and with full sound.
The trick is noticing what you are doing and changing what needs changed to give you better experiences, feelings and to recall good memories easier.
Here is the question’s I ask while I recall something or think about a future situation;
Visual
Is the memory or constructed event like a snapshot or movie?
Is the memory or constructed event colour or black and white?
Is the memory or constructed event bright or dark?
Is the memory or constructed event vivid or washed out?
Is the memory or constructed event focused or fuzzy?
Is the memory or constructed event smooth or textured?
Is the memory or constructed event detailed or un-detailed?
Is the memory or constructed event big or small?
Is the memory or constructed event close or far?
Is the memory or constructed event round or square?
Is the memory or constructed event to the left or right of my visual field?
Is the memory or constructed event high, low or in the middle?
Am I looking out my own eyes in the image?
This gives me a lot of options to change or modify any of these to see which one changes the experience for the better or worse.
Auditory
Inside/outside
High pitched/low
Loud/low
Fast/slow
Mono/stereo
Left/right/centre
Kinaesthetic
Warm/cold
Relaxed/tense
Knotted/diffused
Location
Continuous/waves
Rotational direction/clockwise
Fast/slow
Think about this for a while, not too long, you don’t want to be
going around feeling good all the time do you? Wouldn’t that be
strange?
Every experience you have had or are likely to have can be tailor maid to suit how you want to feel, rather than letting your
unconscious decide for you.
So now you get to decide how you want to feel!
Not finished yet, not by a long way, so let’s get to the end so that you can start at the beginning and physically do some things in order to set these new learning’s in place.
Trading outcome
What do you want from trading? State what you want in positive terms.
What do you want it to do?
Is it achievable?
Is it possible for you to achieve this outcome?
Evidence, how will you know when you have achieved your
outcome?
Is achieving this outcome within your control? Anything outside
your control is not well formed.
Is the cost of achieving or obtaining this outcome achievable?
Is the outcome worth the time, outlay and effort?
Do you have all the resources to achieve it?
If you could have it now, would you take it?
Is there anyone else that’s affected by it? Consider the cost, consequences, environmental and third party impact of having your outcome.
What will you need to do first?
How will you maintain your intention along the way?
When do you want to achieve this by?
How will you maintain your motivation?
Can you achieve it in one step? If not, how many smaller chunks will you need to achieve first?
How will someone else know you’re making progress?
What will you see, hear and feel?
How will this outcome affect your lifestyle?
How will it affect others?
Are there any undesired consequences of not achieving this
outcome?
How will you know you’re making progress?
What will you see, hear and feel?
If in the process of answering these questions you come across a stumbling point then take whatever it is through a mini outcome itself.
If it’s too large to achieve in one go, break it into smaller chunks
and take each through the same process.
An urge
An urge is just an urge until it’s amplified and then it becomes a
frame or state. It becomes amplified the more thoughts you add to it. If you do this a few times then it becomes automatic, like
driving a car or riding a bike.
Are you motivated away from pain or toward pleasure? If you’re
motivated away from pain then use this to motivate yourself away from what you don’t want and towards what you do want.
Strategy
You look at a chart (visual external).
You ask yourself questions (internal dialog)
You picture internally a past experience you had (visual
remembered)
You ask yourself; were could this trade end up? (Internal dialog)
You visualise were the price might end up (visually constructed)
You get a feeling in your gut (kinaesthetic internal)
You click the mouse (kinaesthetic external)
Then the fun begins! Everything you thought before the trade goes to mush.
You start to argue with yourself about why you put the trade on,
you start to pray it goes your way and just about then the trade
starts to go against you, why did I not wait until it reached that
point until I put it on?
Then you sit back and watch as it goes your way, you’re in profit, you say to yourself ‘yes’ I knew it was going that way I got it right, two hours later and the trade goes against you again, oh crap you think I might have got it wrong after all, I should have took that small profit. And it continues!
This is what makes or breaks most traders. The internal battle that goes on is going to decide if you’re going to be a profitable trader or not.
This is your time to shine, you know what happens and you
know how to control your emotions because you know its
constructions, you know how to control your internal dialog you
know it’s just thoughts and these thoughts can be directed to a
positive resource.
But and because
I will give you 3 words which can change your life if you consciously choose to implement them into your thinking for two weeks!
I will also explain why these 3 words are so powerful.
First word = but, second word = and, third word = because.
But is a critical word it criticizes anything that comes before it.
And is a linking word it links and connects to the next chain of
thought.
Because is a foundation word, it gives ‘reason’ for being, it’s a belief building word.
How can I use this in my daily thinking you might be asking?
Well, put your learning hat on and I will explain this with an example:
Think of a suggestion or statement or comment you have said to yourself that wasn’t very nice, a negative suggestion.
Now, repeat the comment to yourself again only this time add this word at the end ‘BUT’.
This will automatically send your brain looking for something to criticize what you just said to yourself and if what you said to yourself was negative your on the right track.
Some people do this round the wrong way, they think of a positive suggestion then use the word but to sabotage there good thoughts (without actually realising what they’re doing of course).
Example: I can’t do this. I can’t do this but if I take 10 minutes a day then I might just manage it.
I think if you give this some thought you will realise the potential in this!
Next word is ‘and’, so this word should kick in at the end of your
positive statement.
Example: I can’t do this, but if I take ten minutes a day then I just might manage it and if I manage this just think what else I can do.
Next word is ‘because’, this should kick in at the end of your two positive suggestions to give you reason to believe in what your telling yourself.
Example: I can’t do this, but if I take ten minutes a day then I just might manage it and if I manage this just think what else I can do ‘because’ I know what others have achieved along similar goals.
So, here is the strategy:
Negative suggestion followed by the word but.
Positive suggestion followed by the word and.
Another positive suggestion followed by because.
Start to train your brain to do this and you can eliminate 90% of your negative suggestions from your life and your trading!
Well I hope you learned a lot in these pages and I hope you can and will implement these into your trading.
If all is a bit much for you then go over it again and again and
practice until you have it clear in your thoughts.
I wish you all the success in the world whether you’re a trader or anything else you decide to be.
Life is what you make of it, grasp this opportunity with both hands and start to magnify your pleasant experiences and start to look forward to all the wonderful things life has to offer.
You get what you focus on, so, focus on what you do want rather than focusing on what you don’t.
Focus on what you do have and not on what you don’t have, this will train your brain to appreciate the smaller things in life more.
With this appreciation comes happiness and with this happiness comes contentment.
If you could be content with life and everything in life then what a fantastic feeling that will be.
This game isn’t for the faint hearted.
I put a lot of time in the markets and the charts because I know I will retire early enough in a few years to relax. I take a longer term view of things; I recommend you do the same.
You will need to have patience, discipline, start up capital and a strategy to make the money, if you’re willing to spend some time looking at the charts, and risk some money on the setups then the rest can take care of itself.
Money management
Preserve your capital at all cost because if you don’t you will not be trading long!
I once blew my full account on 1 trade and I know of others who have done the same, don’t let it happen to you!
Personally for me I was fixed in my ‘opinion’ of where the market was going and it didn’t matter if went against me first so I doubled up until I got a margin call and it was a real wake up call to see my account cleaned out in 1 day.
The market can do anything at any time please drill this into your thoughts and don’t forget it.
You’re not in this to make a million over night, it’s a steady stream of income you want there is no rush so take your time and treat this as you would any business.
“With sound money management even the worst trading systems can succeed. Without it, the best trading system in the world won’t make you money”
Managing the money in your account gives you a system of rules that keep your emotions out of your trading and help you to stay profitable when applied properly, is the simplest way to keep your emotions out of the trade and to maximize your profits while keeping your risk levels within your own comfort zone.
How can we apply money management to our trading?
Quite simple:
Maximum amount you are willing to risk on any one trade.
Stop level that fits with your style of trading and time frame your trading.
Bank balance and how you will exit profitable trades.
Cut your losses short and let your profits run.
The capital you put in when you start out trading defines how
much you can risk on each trade; start off risking very little until you gain confidence in your trading methodology and mastery of your abilities of both the platform your using to trade and your system.
To start with you should only trade high probability trades where your chances of winning are amplified.
One important point is this; do not trade money that you can’t afford to lose, do not get a loan or re mortgage the house!
Emotional trading is a recipe for disaster! and this is what happens to un experienced traders without experience and borrowed trading capital, the reason for this is the fact that they can’t accept a loss and when they do loss they desperately try to get the loss back and make silly mistakes going for revenge trades without waiting on good setups, they tend to make one bad decision after another because they can’t think straight.
Minimizing your losses and maximizing your wins is the best way to stay ahead in the trading game.
Proper preparation prevents poor personal performance!
We, as professional traders expect runs of losses and we combat these by risking a tiny amount on each trade and when we lose we don’t let it get to us because we have plenty of capital in the account to see us through the bad times.
Remember; markets can do anything and no matter how confident we are in our trading setups were also aware of what can happen when the trade goes south on us. So always have your stop loss in place before clicking the buy or sell!
I promise you this; you will feel better losing and sticking to the game plan than you would if you broke your rules and blew the full account trading an opinion of where you thought the market would go and not accepting the small loss.
Incidentally, I determine from the outset how much to risk on each trade and I know this before I trade as will you.
Stop losses are there to protect your account from big losses so remember the important rule; preserve your capital at all cost, if you don’t you’re out of the game.
Decisions
Everything we do requires making decisions and living with the consequences of those decisions.
When trading and risking your hard earned money your decision making process can become clouded.
Knowing how to cope with this is the main difference between what makes good traders and poor traders.
You will fail to become a professional trader if you fail to take into serious consideration your mental state while trading!
Our emotions, thoughts, actions, attitude and imagination are part of us and this part of us will affect our trades whether we like it or not.
As well as a good trading system we need to stay clear headed, rational and calm as well as confident in our decisions!
We can get the confidence after trading and seeing results. Confidence is great but over confidence can and will empty your account!
It’s a common fact that at least 90% of traders fail because of failure to take care of the emotional side of trading and decisions they make while trading, it’s not always the system there using, that’s why it’s so important to trade a demo account to gain the confidence you will need to be in the right mindset for trading and sticking to the game plan.
Risk management and account size makes the difference too so please stick to what you can afford to loss on a single trade.
Once you have discipline and self control using the teachings in this free course your trading will change to a whole new level.
Without proof in your system you will not follow the rules, it’s as simple as that.
In order to get what you need all you have to do is practice the psychological aspects and set up the demo account and trade it until you create the belief.
Then and only then will you create a meta structure to work from which will eliminate the doubt and keep you on the right track regardless if you take a few losses.
We don’t have to rely on a belief which is based upon assumptions because we have tested in real time, we have seen with our own eyes, it’s not just hearsay.
It sounds simple but a lot of people don’t have the discipline or patience to do it, please do it because it’s the difference that makes the difference and if you don’t or can’t for whatever excuse then I don’t think trading is the way to go for you until you’re ready to take the time to do it.
We can make a lot of money trading so just look at it as the cost of your trading education and the more learning you put in, the more money you get out.
Don’t let a string of winning trades deceive you into believing you have the holy grail trading system that can’t loss because the market has a tendency to prove even the experts wrong.
The market will always surprise you but you will be ready for it if you stick to the plan.
The thing I can’t give you is experience! no one can give you that but you have the advantage of reading my experiences and learning from them so you don’t have to make the mistakes other traders do. You can also gain experience through observation when demo trading.
The thing is, everything you do is down to your decisions and how you go forward with this. If you think you know how to proceed your own way then I promise you that you will be back going over this when you blow your trading capital to see where you went wrong.
Save yourself some money and time by doing it by the book, in this case the book is this one.
A couple of things to think about
Never overtrade, never double up, act quickly if the trade goes wrong, if in doubt stay out, Fools try to prove there right, wise men try to find when they’re wrong. look before you leap, not when you leap. respect your limitations your limitations won’t respect you. The man who knows it all has much to learn. A man who does not change his mind has little mind to change.
The foolishness of the many is the opportunity of the few. The more hindsight the better foresight.
A sure thing is a dangerous thing.
Take care of the losses; the profits will take care of themselves.
From the beginning of this book you will have learned how we think, why we think what we think while trading and other life scenarios, how the brain works, how to change the thinking process, how to change our feelings and decisions, how to create a well defined outcome and lots more.
I have used every indicator you could imagine on my charts, adjusting, tuning and refining them on all the different time frames and with different markets.
Basically I was doing what beginner traders do; I was looking for the holy grail trading system that could not fail.
Guess what?
You got it! It does not exist! and not just that, the more you look, the more you see the more confusing it gets and the more confused you get the more disappointed you become and the more irrational you thinking becomes when your trading.
I had to go back to the beginning, clear everything I learned from my thoughts and start again with a new approach!
(If what you’re doing isn’t working, do something else, anything else).
So I actually took time out the market (which is a good thing) to re evaluate.
The realisation came to me like a light bulb lighting the neurons in my brain.
The market does what the market does regardless what we think.
The only thing in the market that’s firm is the price, the indicators lag the price.
The price I’m looking at on the screen is exactly what it is and that’s what other big investors are looking at.
The only thing I can do is time my entry into the market using my stop loss and take profit as best I can and let it run its course.
There is one consistent thing that every single trader uses on their chart regardless of their trading system, can you guess what that is?
Think big here, there are millions of traders out there trading every day, there are billions and billions of pounds floating around there, there is a lot of people looking at placing orders in the market every single day.
I thought long and hard about constructing this document and the conclusion I came to was that I should give a little back to those unfortunate traders who continually struggle to profit from the markets. I actually believe I’m doing a good thing and that makes me feel good about myself.
The stop loss you place on every trade will protect you from losing the shirt even if something unexpected happens that you don’t know about.
The quicker you learn, the less you lose the more you win the better the holidays get!
Speaking about holidays, avoid trading them altogether!
Life and family are more important than making money, don’t forget that when you do start to make cash.
Sitting in front of a computer screen all day is no good, when I feel like it I set my limit order, my stop loss and my take profit and I go out and enjoy myself. You should start to do the same on your demo account.
Be as realistic as possible while using the demo account, if your intending trading for real using real money then do exactly as you would be for real, if you intend trading £2 a point then that’s all you should be risking in the demo account, not £100 a point.
Avoid running out and telling everyone you’re a day trader it puts unwanted pressure on you to perform.
Avoid boasting about the money you’re making because it might just come back and bite you.
I made both mistakes, all I got when I met these people was: how much money did you make today? can you trade my money? can you tell me how to trade?, the list goes on.
Sods law, you will meet them the day you took a loss and you will feel down enough without having to explain your reasoning to them.
They will obviously find out soon enough when you pull up in your shinny new car you got for clicking the mouse. Actions speak louder than words.
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