One thing I really love about Netpicks is their desire to help traders. They give away so many items that can really help traders….interviews, pdf files, trade track software and NOW, a totally free trading system. Designed for Forex but clearly able to be used on other markets, it maps out all the details…risk, entry, profit. Mechanical trading is my top choice and this free strategy accomplishes just that.
Even a U.S. holiday can’t dampen the power of the HVMM. This video follows the basic trade plan..stand aside at news….adjust around levels and aggressive trade mgmt when needed. Having a thought out trade plan really keeps you emotionally out of the market. No picking turning points, tops, bottoms or whatever. Just trading your system and using proper risk control in order to stay in the game to reap the rewards of a positive expectancy system.
I wanted to share with you a new Fibonacci Trading Video Lesson just recently made available by Fibonacci expert, Neal Hughes. In this short video lesson, you will see FibMaster’s Fibonacci techniques applied to a recent trade setup. These techniques are easy to learn when taught by Neal Hughes and, when you learn how to apply these techniques to your trades, they work time and time again!
Neal Hughes (FibMaster) has over 20 years experience in the markets. During that time he has perfected his Fibonacci trading methods for the serious trader to optimize gains and control risk. See this video today and learn how you can start applying FibMaster’s trading techniques to your trades.
Some mornings you wake up…get to your trading desk…only to see that the markets have made some huge moves. Some of the time, once the average move of a day is close to being done, retracements or standing aside are really what you are looking for. The problem is, many people feel the need to be rocking and rolling in the markets on a daytrading basis. The best times to trade however are when you don’t have to trade. Why? You just feel more at ease and for some reason, can look at the markets in a fresh way. This is not simply my thoughts but the thoughts of super successful traders worldwide.
That is why I love to swing trade. It adds a different element to my trading. I show you this not to brag but for you to get an idea of what it feels like to already have banked some pips.
This screencap is my account coming into trading on the 19th of November. Already up over 120 pips on closed trades, would you feel compelled to trade if the markets were just not moving?
This screencap is my account coming into trading on the 23 of November. Once again, is there a need to trade?
Do you see my point? With managing the trade, I may not get the full amount especially with the EJ since these trades were still ongoing. Still, I will lock in at least 20 on EJ and undetermined on the GU.
Would you feel compelled to trade coming into mornings like this? Probably not especially with a slow market.
I highly suggest you check out adding a swing trade component to your trading business. With the ULTIMATE SWING TRADER available with a free trial, that is just one method you can test out to see if it fits your needs. You can pick up the UST by clicking here: http://www.atradingplan.com/ultimateswingtrader/ EDIT: SOLD OUT
What do you do if you have a solid trading system, a solid trading plan and the desire to follow it? You reap the rewards. It can be very easy to be swayed by the opinions of others and it takes a strong mindset to ignore them. If you don’t, when do you become a self sufficient trader? You never do. The last two weeks on the EU has shown the success you can have IF you stick to your guns. This video finishes up trading the EU for the past week. If you aren’t impressed with the way the 89 tick EURUSD has traded the last few weeks, check your pulse. One standard lot has banked you almost $2000.00. The best thing is…with the right mindset….money mgmt and the desire to follow a solid plan…every trader could have done very very well.
Earlier this year, I put together a post about the Emini trade room that Netpicks has. It was doing outstanding taking a $5000 account and bringing it to $13380.00. You can see the original post by clicking your mouse here.
Anyhow…I want to update the status of the room. One word. Outstanding! Since my original post….that $5000 account would now be worth $20690 as of Nov 20/09. Check out the original post for a short video and then head over to grab a free trial to the Emini Trading Room.
Half way through the week, I wanted to update the most popular day traded pair…the EURUSD. Last week was outstanding. This week is shaping up to be no slouch. However, as we know, the markets can turn on a dime so what happened the last three days is not necessarily indicative of what is to come. Remember that. All you can really control is yourself and trading your written trade plan. As you will see, your plan does not have to dazzle. It can be basic and still help you produce substantial gains without the need for bopping in and out of the market. No guesswork. No gut feel. A trade plan that, over time, has shown itself to be a solid money maker.
For this video, as well as the previous, nothing special is done. Just the basics. News. Swing levels. Round numbers. Also remember, you may not take all of these trades. Why? Power of quitting. No doubt you are trading other pairs as well so by the time the second trade sets up, you may already be done.
The HVMM makes it super easy to trade just about any Forex pair you choose. The benefit of the EU, notwithstanding it is the most heavily traded pair, is the lower spread cost. Time and time again, the EU spread at many brokers makes it a cheap pair to daytrade.
The last week trading the EU was exceptional…even with a U.S. and Canadian bank holiday on the Wed. How does this sound: 9 trades – 8 wins -1 loss for +100? Sound good? You bet it does and the bonus is, there was nothing complicated about it. Follow the rules. Respect close by swing levels…stand aside before/after news…..get in sync and use some common sense with optional re entry trades. As well, there was no need to check 8 different charts, a myriad of indicators or your fave analyst.
Following up on the topic of “Diversify”, I want to talk about diversity in your style of trading. Daytrading gets a lot of glamour. Perhaps it is the vision of flashing screens, tuning into the latest news, the excitement of instant payoff or a host of other reasons. For me, once trading gets exciting, I decided long ago to shut it down. It’s all about the money. That is perhaps one reason I try to find the simplest trading system with a positive expectancy. I don’t need to “wow” myself with my excellent analytical abilities with both the charts nor the latest news. Couldn’t if I tried. Simple concepts. Simple plan. If a setup occurs inside the parameters of my plan, I take the trade. Period. No outside opinion will stop me. Readers of the writings of Curtis Faith will understand that concept quite clearly.
Swing trading. The practice of catching a swing in the market for a larger payout. Having a solid swing trade plan will lift you above the times when daytrading is slow. Perhaps your timezone is outside the best market moves. Maybe you are working full time. It is quite possible the idea of sitting in front of your computer for hours every day is not part of your personality. Whatever your situation, swing trading takes a lot of the “pressure to perform” out of your trading. You are able to stay above the psychological monsters that can cause you to be reckless in your trading. Many traders, after a few hours of doing nothing, jump in simply to “be in the game”. Every successful trader that has ever risen above the average will tell you that is the wrong thing to do. Swing trading keeps you from those amateur moves.
Drawbacks? Sure. It is tougher to “know” what the market will do over a day than it is over the next hour. Seriously though, do we ever truly “know”? If you think you do, you really don’t. Is the risk higher? No. Position sizing takes care of that. Especially with FX, you can trade virtually any size you want. 2% risk on a swing trade is the same 2% risk on a day trade. 2% of your account size is still…..2% of your account size. Many people will lose sleep losing 50 pips. Those people should really pick up any book by Van Tharp on position sizing.
Swing trading is a powerful tool to add to your box. There is zero need to stress out daytrading when the markets are just slogging along. Grab a position for a swing and let the market work itself out with you for the ride.
Finding the proper style is tough. The Ultimate Swing Trader has done quite well over the last several months since the release.
GBPUSD – 35 wins – 11 losses +1384
GBPJPY - 23 wins – 8 losses +2494
EURJPY - 33 wins – 18 losses +1359
(this is not the limit of pairs you can trade. abbreviated for the blog)
Those are not even with a scale out. Those are the 2x profits. With scale outs at the 1x, those numbers increase. It is a powerful strategy but still has it’s share of losses. It will appeal to those that don’t think success is all about chart reading or grabbing every news story that pops it’s head out. It will appeal to those that trade to live and not live to trade.
Those that have been around my blog for a while know I like the swing trading. Below is a screencap taken on Monday Nov 9/09.
It has an Asian session trade, one trade closed that started on friday and a swing trade taken on sunday night. The swing trade entry and target was entered in my platform and I let it work itself out. There is zero pressure for me to make money daytrading on Monday. Sometimes, after a big run in the London session, the moves in the U.S/London overlap are muted. Having a successful swing trading plan can have you sit back during your daytrading time without stressing about having to make a trade in slow markets.
Swing trading has some amazing benefits. You are welcome to attend an upcoming webinar featuring the Ultimate Swing Trader: http://www.atradingplan.com/ustwebinar. Even if the software is not for you, you are sure to pick up some really great tips on swing trading and the benefits.
I received an email that asked the following: “how can someone say they made 150 pips in a trade that didn’t go that far?”
Short answer: They scaled out and added all the pips together and gave you that number.
Example: Trade full target is 100 pips. The trader scales out at +50 and closes last position at +100. Total = 150 pips.
Scaling out is a debate that has gone on for ages. Van Tharp is against it. Mark Douglas is for it. Both have merit. With Van Tharp, he rightly says you are not getting the full benefit of the trade. You are risking full position and only taking profit on partial.
Example: $20 position. Scale out 1/2 at +50 = $500. Full target on last 1/2 = $1000. Total profit = $1500.00. With no scale out: $20 @ 100pips = $2000.00
With Douglas, he feels scaling out reduces the psychological burden traders face. Taking a profit, any profit, to him, is a positive thing at the expense of a greater profit.
There is no right or wrong answer. Some traders are psychologically strong enough to accept whatever outcome the trade has. Others need the soothing relief of banking profits.
What do I do? While not a recommendation, I do both. In the previous article, those were all in/all out trades that were shown on my platform except for the last EJ position. If I am in a trade and feel “ancy”, I will bank some profit. If I don’t have the itch, I will manage the trade to full position. Scaling out is a tool for me and not a hard and fast rule. As a trader, you have to find what makes you comfortable.
Here is an actual example taken from tonight’s trading. Total pips is 90 but price only traveled, from start to finish, 50 pips.
At 60k the full target would have been $300.00.
At equal scale outs of 20k each 2×49=98, 2×28=56, 2×12=24. Total = $166.00
