Trader's Thread 05 (Jan 20 - Dec 26)

[winston]

Why Trading The Daily Charts Will Improve Your Trading Results

By Nial Fuller

f you are currently experiencing any of the following trading problems you will benefit significantly from making the daily chart your primary trading time frame:

• Over-trading – Trading too much due to a number of reasons; greed, indecision, no trading plan etc.

• Fear of placing trades – You feel un-confident about which trades to take and which to pass on, this results in you getting “stage fright” and not trading at all, thus missing out on some good opportunities.

• Over-analyzing – You find yourself spending hours upon hours looking at numerous time frames and 20 different currency pairs. Eventually, you get tired and decide to enter a trade for no solid reason besides the fact that you have confused yourself to the point of exhaustion.

• Addiction to trading – You find yourself preoccupied with the market and with your trades all the time, it’s starting to affect your work life and your family life, all the while you are still losing money. You wonder why you are losing money while pumping so much time into your trading.

• Trading inconsistently –You have some good weeks and then some very bad weeks that erase your good weeks.

Source: Learn To Trade

https://www.learntotradethemarket.com/f ... ng-results

[winston]

Set and Forget Forex Trading – Keep Your Day Job

By Nial Fuller

1. Why it’s Counter Productive to Analyze too Much Market Data
2. Less is more in Forex: ‘Set it and Forget it’
3. Make Money and Save Time by Doing…Less?

People who spend more time analyzing market data and trying to perfect their trading system inevitably induce a cycle of emotional mistakes that work to increase their trading failures and eventually result in lost money and lost time.

People who realize that the market is uncontrollable and build their trading plan around this fact will inevitably arrive at a “set and forget” type mentality that induces an emotional state that is conducive to on-going market success and consistent profitability.

Source: Learn To Trade

https://www.learntotradethemarket.com/f ... ur-day-job

[winston]

The ‘Ten Commandments’ of Trading

By Nial Fuller

1. Know what your trading strategy is and master it.
2. Be honest with yourself.
3. Trust yourself – trust your gut and ignore ‘tips’
4. Don’t let the results of your last trade influence your next trade
5. Control losses, do not avoid them
6. Preserve your trading capital for the ‘easy prey’ trades
7. Be excited about trading, not about money
8. Plan your trades
9. Be realistic.
10. Get proper training

Source: Learn To Trade

https://www.learntotradethemarket.com/f ... ts-trading

[winston]

Pyramiding – A Money Management Strategy To Increase Profits

By Nial Fuller

The smart way – Scaling into your position at predetermined levels and trailing your stop up or down each time you add a new position, so that you never risk more than you are comfortable with losing, or more than what you have predetermined is a good 1R value for you (1R = the amount you risk per trade).

I prefer to either take a predetermined 1:2 or 1:3 profit on a full position or IF the market is trending strongly, I will try to scale in.

So, to be clear, I either take profit on my full position at my predetermine target level, or I scale into a trade that’s in the context of a strong market trend….what I don’t ever voluntarily do is minimize a winner by scaling out!

Source: Learn To Trade

https://www.learntotradethemarket.com/f ... ex-trading

[winston]

Trade What You See, Not What You Think

By Nial Fuller

1. Stop trying to ‘out-smart’ the market
2. Learn to control yourself if you want to make money

Take a moment and ask yourself before each trade:-
1. “What I am doing?”
2. “What is the setup?”
3. “Does it meet my trading plan criteria?”
4. “Am I acting logically or emotionally?”
5. “Am I controlling myself or is the market controlling me?”
6. “Is there a setup or am I am just making one up”?

Source: Learn To Trade

https://www.learntotradethemarket.com/f ... -you-think

[winston]

Daily Affirmations Will Improve Your Trading

By Nial Fuller

1. “What the mind of man can conceive and believe, it can achieve” – Napoleon Hill
2. “I am a successful trader”
3. “I am consistently following my trading plan”
4. “I have a trading journal and I use it”
5. “I practice proper risk management”
6. “I trade according to what the market IS doing, not what I think it ‘should’ be doing”
7. “I will only take trades that give me a reward which clearly outweighs my risk”
8. “I will find other things to do besides watching my trades after they are live”
9. “I am not emotionally affected by my profits or losses”
10. “I try to trade with the dominant daily trend as much as possible”
11. “Instead of over-trading, I will be patient and let trading opportunities present themselves to me”
12. “I’m a professional trader and thus I will not engage in gambling my money in the markets”
13. “I will not interfere with my trades without just cause”
14. “News and fundamentals will not influence my trading decisions”
15. “I am happy to take a profit and I will not be greedy”
16. “I invest in my trading education & myself”
17. “I believe in my trading strategy completely and whole heartedly”

Source: Learn To Trade

https://www.learntotradethemarket.com/f ... ex-trading

[winston]

10 Tips for the Remote Trader

Remove yourself from the daily swings with a longer-term outlook.

by ALAN FARLEY

1. Long-term charts: Weekly price patterns work very well for folks unable or unwilling to watch the short-term markets.

2. Trade smaller size: You don't have to be a gunslinger to book long-term profits.

3. Choose wisely: Pick the right stocks to trade.

4. Play the exchange-traded funds: ETFs let you take on measured exposure to entire market groups.

5. Loose stop-loss strategies: Remote traders need a quick nightly review to check out the day's progress and readjust their stop losses.

6. Apply weekly Bollinger Bands: Long-term Bollinger Bands show remote traders the most favorable periods to enter and exit positions.

7. Let the market come to you: Place deep limit orders and sit on your hands until they get hit.

8. Use dollar-cost averaging: Long-term trades are price-sensitive because of the great distance between closing bars.

9. Play the index cycles: Negotiate the minefield of conflicting trends with a smoothed Wilder's RSI (relative strength index).

10. Master the waiting game: Stalk your long-term setups and do nothing until the market planets come into perfect alignment.

Source: The Street

https://www.thestreet.com/investing/10- ... r-10405903

[winston]

Sometimes You Need to 'Throw a Sacrifice Into the Volcano' When Trading

That's because inertia is your biggest enemy, tricking you into thinking it's easier to wait for your 'good stocks' to stop sinking and eventually bounce back.

By JAMES "REV SHARK" DEPORRE

I have found that the best indication of whether I will lose money in the near term is whether I am losing money today.

I'm typically better off if I sell things when I am losing money than if I make new buys and try to catch a bounce.

For most market players, the biggest obstacle is inertia. It is far easier to just sit there and think "these are good stocks, they can't go much lower and they will bounce back quickly when the market turns."

Even if I'm holding a stock I like and am convinced it will eventual do well, I make some sacrificial sales. I consider it a tribute to the market gods and has nothing to do with trying to time buys or sales.

Almost always I feel some sense of relief when I do this and I quickly discover it is very easy to buy back shares if I want. The sacrificial sale breaks the inertia of holding a poor stock and helps you make smarter strategic sales.

Source: The Street

https://realmoney.thestreet.com/investi ... yptr=yahoo

[winston]

Stocks haven’t bottomed yet, so wait for this signal, advises Charles Schwab trading guru

By Barbara Kollmeyer

“Don’t panic and don’t sell on the lows.”

Frederick advises against trying to bargain hunt among beaten-down stocks right now and offers up one guideline that he says has worked well over market history.

“My general rule of thumb, which has been pretty consistent, is if you’re going to start buying on a dip, you need to wait until you get two good solid up days,” he told MarketWatch.

Source: Market Watch

https://www.marketwatch.com/story/stock ... yptr=yahoo

[winston]

THIS TIME IS DIFFERENT

by LEONARDO DRAGO

How to keep your head when other investors are losing theirs

Investors should keep calm amid the market panic and look out for signs of a market bottom to re-enter

One clear difference here is that unlike a financial crisis where Central Banks can do 'whatever it takes' to save the financial system, interest rate cuts have little effect on consumer confidence, and will not fix the current issues.

Central Bank stimulus will need to address the risks of a protracted economic slump that affects every business when consumers stay at home and stop spending, so that the loss of economic activity can be offset until either a cure is found, or the virus infection rate drops on its own.

The market's current sell-off is a justified fear that governments around the world are unable to address this, causing a wide swath of bankruptcies in restaurants, airlines, and similar businesses.

A re-test of the bottom. The safest time to enter the market is not in the middle of the sharp declines, but during a re-test of the previously established bottom.

Bear markets are resolved this way 70 per cent of the time. Absolute V-shape bottoms are rare, and far too much money has been lost in trying to catch the absolute bottom during the initial phase of sharp declines.

Source: Business Times

https://www.businesstimes.com.sg/wealth ... ing-theirs