Thou shalt have no opinion other than price action. Thou shalt not make for yourselves any prediction, forecast, hope, or fear that causes you to trade against the market’s trend. Thou shalt not deviate from your written trading plan or trading rules. Remember your original stop loss to keep your losers small. Honor your entry […]
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The Three Skills of Top Trading: Behavioral Systems Building, Pattern Recognition, and Mental State Management by Hank Pruden shows how traders must learn to combine three crucial skills in the markets to become a top trader. Pattern Recognition and Discretionary Trading The author uses the Wyckoff method to show chart representations of how hot stocks are
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For all the people that have asked for it: Here are five trades examples step by step. These were all shared in real time on twitter. My December $UPRO Trade My Simple and Effective $TQQQ Trade Do Bears Drive Electric Cars? My Big Juicy Apple Option Strangle Play My Recent $SPY Trade December 2014
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Trade based on price action; not opinions, predictions, or emotions. Trade in the direction of least resistance in your time frame. Develop your own profitable trading system. Only trade in markets after you have back tested your system or studied historical charts. Use a trading plan that sets the parameters for your system’s implementation.
Steve Burns’ 10 Golden Trading Rules Read More »
Here is the inconvenient truth about successful trading. It’s work. Trading is more than just numbers — it is a three dimensional fight that rages primarily inside the traders themselves. Missing any crucial element can ruin a trader quickly. The trader must first develop a robust trading system that fits their own personality and risk
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I will only take the very best trade set ups in 2015 discarding the average and mediocre ones. I want each trade to have an excellent risk/reward ratio. I will position size based on the worse case scenario for volatility and range expansion not what I think is a safe bet. I will use
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There is nothing simple or painless about trading for a living. You have to compete in a rivalrous arena, defeat other gladiators, and not get yourself killed in the process. Here are a few ways to become a better trader and overcome your opponents. Face reality- Spend time analyzing what you do and
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1. Nothing new ever occurs in the business of speculating or investing in securities and commodities. 2. Money cannot consistently be made trading every day or every week during the year. 3. Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion. 4. Markets are never
Jesse Livermore’s 21 Trading Rules Read More »
Here are ten quick and easy steps to making sure your trade has the best chance of being a winner: Your trade entry must be at a price level that gives you either a high probability profit potential or a great risk/reward ratio. You must identify where price has to go to prove you are
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While all of these may not fit into your own trading plan, some of these rules could help individuals decrease drawdowns. Make limiting your drawdown in capital your number one priority, not your profits. It is much easier to be profitable when you don’t lose a lot of money. Never lose more than 1% of
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