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do you want to be a better trader? ...strategy tips and more...

 
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burton

do you want to be a better trader? ...strategy tips and more...

part of silver iii is submitting a strategy to the hive...here's the thing, i'm still working through my process, setups and risk management. when it comes to a "strategy" (aka setup) i got nothing.

still, what i do have are few tips that just might improve your process and or setup.

first and foremost, no matter what you are doing, if, as a trader, being consistently profitable is your goal, then you must be able to answer the following question...

"do you have an edge?" ...without an edge you might as well be rolling dice.

what is an edge? ...as a trader, it's important to understand that the market makes the rules, not you or i and the bigger the player the greater their influence. most retail traders would not even make a directional splash in the forex market. as a result, your job, if you choose to accept it, is to catch the move and ride it, until you've exhausted your opportunity for profit.

tip 1 - it's been said, over and over again, small positions and manage your losses.

by taking small position you are giving yourself an edge, how is that true?

- lot size limits potential risk
- i'm a fan of every trader starting with and staying with a lot size of 0.01 until they master their process and are able to achieve a consistent pip count, from day to day, from week to week.
- by taking such small positions you have the ability to withstand an unplanned price move...even if the pips are high, the truth is, you should never come close to a 2% loss.
- small positions equal longevity

tip 2 - the journey to becoming a consistently profitable trader is a process, embrace the process, what do i mean?

the most experience and successful of traders have been trading for a great many years. they are what they are because they have survived long enough to gain some experience, some history and most importantly "wisdom".

- let go of the idea that there is "one perfect way to trade", there isn't
- just because you start with a particular setup, it does not mean that you have to use that same setup for the rest of your trading life
- until you've taken 1,000's upon 1,000's of trades how could you possibly know what will work for you? ...you won't, so give yourself a break
- be willing to experiment. if you don't want to experiment with your apiary accounts then open an mt4 account and experiment
- finally, when you do experiment, keep your positions small, just like you would if you were trading your apiary account. learn to trade your demo accounts "as if" they are the real thing...this is a state of mind that will pay out huge dividends at the end. practice as if you were trading for real

tip 3 - trade to win, what do i mean?

it is easy for a trader to develop a habit of "trading not to lose". when this happens the trader's judgment and perception will be twisted by the fear of losing. how do you know this is happening?

- far and away the easiest tell of "trading not to lose" is closing out profitable positions prematurely...for example, you take a 3 pip profit and the trade moves another 20 pips. if this is happening frequently, then it's time to change it up, fear has taken over your judgment
- it is also possible for the trader to be quick to take a loss
- overly concerned with losing

tip 4 - let profits run, one of the most over used and misunderstood trading expressions.

- first, not every trade is going to run
- secondly, it is guaranteed that price will go up
- next, it is guaranteed that price will go down
- learn how to stay in a trade
- use a stop loss to protect your profits
- practice using your stop loss for profit

tip 5 - find one thing that will keep you from taking a trade, what's the point?

- you don't get paid to trade, you get paid to wait
- study your trades, what do you notice on chart, that repeats when it's a losing trade?
- document that one thing and when you see it..."DON'T TRADE!"
- pay attention to things that don't work, add each of them to your "DO NOT TRADE LIST!"
- the more weak trades you skip, the better your profits will be

tip 6 - focus on and study your most profit trades, master what works!

- you don't have to take every trade you see
- the very best of trades will not happen as often as most traders are wanting to trade
- you will miss trades and that is okay

tip 7 - profit is habit, what do i mean?

- we are creatures of habit
- we are blind to many of our habits
- often, especially in the beginning, we have habits that consistently produce losses
- focus on what works, do it, over and over again
- your goal is to build a habit of being profitable
- "DO NOT" focus on your losing habits, starve your losing habits, give your attention to what works
- the more you do what works, the easier it will become, over time it will become your primary habit

tip 8 - study and use the pivot indicator, why?

if you haven't ever used the pivot indicator, know that it can be a great teacher.

- even if you add it after the fact, use the tool when reviewing your trades
- as you review your trades notice how well your trades align with the pivot points
- when compared to the pivot points, are you taking positions late?
- when compared to the pivot points, are you taking positions early?
- when compared to the pivot points, are you taking positions in the middle?
- again, the pivot points can be a great teacher, a teacher that is objective and unwaivering
- focus on the "MAJOR PIVOT POINTS", again, you want to build a habit of taking only the very best of trades

tip 9 - be a student first, always be a student, it's all about perspective!

you are on a life journey and you want trading to be your source of financial freedom, then embrace the reality that, through out your journey, you will repeatedly face moments of "NOT KNOWING WHAT YOU DON'T KNOW THAT YOU DON'T KNOW".

by being a student first you will be to approach the market and your trading with a perspective of curiosity, exploration and ultimately learning.

here's a brief list of the process that will repeat as you learn, grow and develop as a trader...

- ignorance, it's okay not to know, "ACCEPT THAT YOU DON'T KNOW!"
- exposure, you must take trades, even if it's only in demo mode
- exposure, you must do chart work, study potential setups
- exposure, you must review your trades, even in demo mode
- with exposure comes the opportunity to understand
- use what you learn, practical application is a critical skill, learn to apply what you learn
- mastery, focus on one thing at a time, master that one thing and then you will be ready for next thing

again, learning to trade is a process, "EMBRACE THE PROCESS!"

bonus tip - stress test yourself, what do i mean?

some traders become overly focused, when trading, on creating the perfect environment, my suggestion...

"DON'T CREATE A PERFECT ENVIRONMENT!"

trading is a counter intuitive process, meaning you have to learn to make decision and to take actions that won't match what is typically learned in everyday life. as a result...

"YOU WILL NOT BE COMFORTABLE!"

- learn to embrace the discomfort
- learn to trade, even when there is discomfort
- learn to focus, even when there is discomfort

"YOU ARE NOT YOUR DISCOMFORT, DO NOT LET YOUR DISCOMFORT CONTROL YOU!"

test yourself...

- does quiet bother you, then make your trading time as quiet as possible
- does noise bother you, then make your trading time as noisy as possible
- do you give up once you take a losing trade, then take as many losing trades as it takes to learn that you can come back

"YOU ARE NOT YOUR LOSSES, DO NOT LET YOUR LOSSES CONTROL YOU!"

also equally important...

"YOU ARE NOT YOUR WINNERS, DO NOT LET YOUR WINNERS CONTROL YOU!"

whatever makes your trading manageable, do that thing(s) on purpose.

"LEARN HOW TO MANAGE YOURSELF, AND YOU WILL LEARN HOW TO MANAGE YOUR TRADES!"

here's to your journey, as a trader =)

bonus question...

if everybody else is doing it, and their results are not the results you want...

"WHAT REASON WOULD YOU HAVE TO DO THE SAME THING?"

ps: i don't play by the rules, that's for people without a dream.

Wed, 12/05/2018 - 9:07am
 
Donnie

Thanks. Good advice.

 
burton

you're welcome donnie =)

 
dudleygreen247

"LEARN HOW TO MANAGE YOURSELF, AND YOU WILL LEARN HOW TO MANAGE YOUR TRADES!"

This is the ultimate key. I didn't fully realize this until the August 2018 Summitt. Leading up to the Summitt, I was a 'Technique Guy' in that I believed there is one secret Master Technique that poured unlimited Gold into your account. Seeing all those traders in one room with all their different techniques I quickly realized that ALL techniques can pour Gold. The secret is in the Traders 'self -adjustment'. Gaps happen, wicks happen, the market does know exactly where your Stop Loss is, and Take Profit is some foreign translation that really means "price accelerator" but the personal adjustment is where the wins really happen. Gold will pour in but its up to us to show it how and where to go.

 
Rookie

@dudleygreen247, so true!

 
LKSL

Potential use of fractals to manage fib strategy

2018-12-07 08_24_19-2100683976_ JAFX-Demo3 - Demo Account - [EURUSD,M5].png 2018-12-07 08_27_08-2100683976_ JAFX-Demo3 - Demo Account - [EURUSD,M1].png
 
burton

nice share dudleygreen247

 
burton

one of the comments that has and will stick with me is something nate said, in one of the beeline vids, i'm paraphrasing...

it doesn't matter which moving average(s), indicator(s) and or settings you use, it matters that you use the same moving average(s), indicator(s), and or settings consistently.

understanding comes with consistent methods and repetition.