TO MAKE MONEY IN TRADING YOU MUST FOLLOW THE SYSTEM EVERY MOMENT, EVERY TIME, NEVER DRIFTING FROM THE SYSYTEM
ONLY DO THIS ONE STRARTEGY FOR NOW WITH PATINCE AND RESOLVE
DON'T DO ANYTHING ELSE BUT THIS AT PRESENT, NO MATTER WHAT THOUGHTS, WHAT YOU FEEL: (I CAN’T PREDICT, I WILL TAKE THE SIGNAL)
1. ON 5MIN CHART, WHEN A CANDLE CLOSES ABOVE OR BELOW 50 SMA. BIGGER BODY; PINS, OUTSIDE BARS AND ENGULFINGS ARE BEST, FAKE AND REVERSE IS GOLDEN
2. OPEN 2 MINI LOTS (0.1 AND 0.1,SEPERATELY) , PLACE THE STOP BEHIND THE 50 SMA OR THE PREVIOUS TECH LOW/LEVEL (YOU CAN INCREASE INITIAL TRADE SIZE, AFTER TWO WEEKS ONLY IF YOU SEE POSITIVE RESULTS)
3. AFTER EACH LOSS DOUBLE THE POSITION SIZE (i.e: 0.2 plus 0.2)
4. IF THE TRADE GOES IN SUBSTATIAL PROFIT AND YOU IDENTIFY THAT THE MOVE HAPPENED AFTER A POSSIBLE U-TURN/SWING SETUP (IN BIGGER TIME FRAME/S), AFTER UPON A BOUNCE FROM: A MAJOR S/R,EMA,CONFLUENCE OF TECH LEVELS, AND OR AFTER A FAKE&REVERSE, AFTER A PIN OR OUTSIDE BAR, AND OR YOU IDENTIFY A GOLDEN CROSS, A BREAKOUT: THEN YOU MAY LOOK TO ADD UPON P.B AND UPON SIGNAL/S OF CONTINUATION (I.E: A BREAKOUT , A CANDLE SIGNAL, A P.A SWING) IN THE DIRECTION OF THE MOVE, BUT WITH STOP BEHIND THAT SIGNAL, WITH STRICT RISK CONTROL AND ENFORCING TECHNICAL HARD STOPS POLICY.
PROFIT TAKING: THERE ARE MANY OPTIONS, FIND THE BEST OPTIONS. IT WILL NEVER BE PERFECT, EVEN FOR THE BEST TRADERS:
OPTION#1: UPON NEXT TECH LEVEL, IF IN SUBSTANTIAL PROFIT: TAKE HALF AND MOVE STOP TO BREAKEVEN, AND LEAVE IT TO RUN, IF YOU SEE CHANCES OF A MAJOR SWING/TURN IN PROGRESS
THE TOOL BOX: TO IDENTIFY AND TO TRADE: (WITH CANDLE SIGNAL/S AND P.A CLUES):
1.BUY ZONES AND SELL ZONES (I.E: TECH LEVELS*)-BEST WHEN PRICE SHOOTS TO THEM
2. EARLY STAGE OF A NICE GOLDEN CROSS = (CLUE FOR A GOOD MOVE/TREND)
3. BLACKJACKS & BUSTED BLACKJACKS
4.TRAP/PATTERN BREAKOUTS
5.FAKE AND REVERSE (THEY ARE BEST WHEN HAPPEN)
6.A MAJOR OUTSIDE BAR OR A MAJOR PIN BAR (ONLY AFTER A SUBSTANTIAL RUN, BETTER WHEN AROUND S/R'S, AROUND PREVIOUS HI/LOW)
7.FADING AN EXTERME RUN: A POSSIBLE EXHAUSTION/CORRECTION, IF PRICE HAS ALREADY MADE A VERY SUBSTANTIAL RUN AND IT'S POSSIBLE IT WILL CORRECT A LITTLE AT/AROUND TECH LEVEL, THEN GO WITH MARTINGALE/INVERSE PYRAMIDE STRATEGEY, FIRST WITH SMALL LOTS THEN ADD BIGGER LOTS WHEN AS IT GOES AGAINST YOU SUBSTANTIALLY -BUT WITH MUCH SEPERATION, NEVER CLOSE TOGETHER.
8.RANGE PLAY - WHEN IDENTIFIED
NO GREAT SETUP = NO TRADE
WAIT FOR IT, AS LONG AS IT TAKES, EVEN IF IT TAKES HOURS OF WAITING
"Secret to successful trading is an indefatigable and an undying and unquenchable thirst for information and knowledge." Paul Tudor Jones
TO OPEN A TRADE:
1. ALWAYS LOOK FOR A U-TURN POINT TO PUT THE HARD STOP BEHIND THAT POINT
2. DO NOT WORRY ABOUT GETTING STOPPED OUT AND THEN PRICE GO IN YOUR FAVOUR
3. IF STOPPED OUT, RE-ANALYZE , SEE IF IT WAS A FAKE OUT OR CHANGE IN DIRECTION,
4. DETERMINE THE HARD STOP AGIAN, AS YOU OPEN THE NEW TRADE IN THE EITHER DIRECTION
LET YOUR SUBCONCIOUS DO IT
THEIR IS UNLIMITED POWER IN YOUR SUBCONCOIUS
LET YOUR SUBCONCIOUS MIND AND SOUL BE THAT TARGET SEEKING MISSILE
TO FULFILL YOUR NEED OF FINANCIAL FREEDOM AND ABUNDNCE.
DEPEND ON NO ONE, BE THAT INSPIRATION AND THAT ENERGY YOURSELF.
UNDERSTAND YOURSELF AND WHAT'S SABOTAGING YOU,
WHY THE DOWNWARD SPIRAL IN LIFE, IN TRADING AND IN GAMING:
1. YOU DON'T PROTECT YOURSELF FROM WHAT COULD BE A MAJOR/SUBSTANTIAL LOSS.
2. NO ONE EVER TAUGHT YOU TO HAVE HEALTHY FEAR OF LOSS.
3. GREED IS YOUR BIGGEST ENEMY.
4. THE KEY TO WINNING THE GAME IS TO KEEP LOSSES WELL DEFINED AND BASED ON NEW INFORMATION, NO MATTER HOW MUCH YOU LIKE THE SETUP.
5. YOUR RISK MUST BE CALCULATED AND DEFINED, ALWAYS LOOKING TO ELIMINATE THE POSSIBLITY OF A DISATEROUS LOSS, ALWAYS READY TO BACK OFF AND FOLD WHEN IT LOOKS LIKE NOT WORKING OUT AND LEADING TO A MAJOR LOSS.
6. GOLDEN RULE: DON'T EVER OPEN BIG POSITION/S-OVERLEVERGING IS THE BIGGEST KILLER OF ACCOUNT. YOU MAX RISK ONCOBINED POSITIONS SHOULD NEVER BE MORE THAN 5% OF THE ACCOUNT.
TO LIVE:IF EVERYTHING FEELS WRONG
1. FIRST BREAK ALL THE RULES (ALL THE SABOTAGING RULES OF THE NEGATIVE PROGRAMING GOING IN YOUR MIND).
2. THEN MAKE NEW RULES.
3. NEVER BE HARSH ON YOURSELF.
4. I AM A WARRIOR WITH A THOUSAND WOUNDS.
5. YOU SURVIVED BECAUSE OF YOUR OWN COURAGE.
FACTS:TO ACCEPT AND FOLLOW – SUM-UP OF 6 YEARS:
YOUR ONLY EDGE IN THIS BUSINESS IS A SETUP WITH DEFINED RISK.
I.E:
A BLACKJACK,
A FAKE-REVERSE
A MAJOR OUTSIDE BAR, A MAJOR PIN
A SOLID BREAKOUT (OF A TRIANGLE)
IF NO CANDLE SIGNAL (TO PUT STOP BEHIND IT) = NO TRADE
PLACE THE STOP BEHIND THE CANDLE SIGNAL-BEHIND THE POSSIBLE U-TURN
AND STICK TO IT-TOTAL RISK IN DOLLAR AMOUNT SHOULD BE 2% TO 3% MAX.
1.MARKET CAN DO ANYTHING AT ANY MOMENT
2.AT ANY MOMNENT MARKET CAN REVERSE AGAINST YOUR POSITION FOR UNLIMITED POINTS AND TIME, NO MATTER HOW LIKELY IT LOOKS TO GO WHERE YOU THINK.
3.INVEST AND ACCEPT THE DOLLAR AMOUNT OF RISK OF LOSS UP FRONT. DEFINE THE TECHNICAL STOP POINT. SET HARD STOP SO THERE WILL BE NO CHANCE OF AN OCCASIONAL BIG LOSS.
4.UNDER NO CONDITION: THE RISK-THE TECHNICAL STOP LOSS SHOULD BE MORE THAN 3%. EVEN IF THE MOVE/TREND LOOKS GUARNTEED TO CONTINUE, AFTER DEEP PULLBACKS OR FOR ANY REASON. YOU CAN RE-ENTER AT NEXT CANDLE SIGNAL.
5. IF YOU WANT TO GIVE IT ROOM: TAKE A SMALLER POSITION. DO NOT BE GREEDY . STICK TO 3% STOP.
1) LEARN TO WAIT FOR A CERTAIN THING, LEARN TO DO NOTHING IN THE MEANTIME.
2) LEARN TO PRE-DEFINE RISK AND ACCEPT RISK/STOPS/LOSSES WITHOUT ANY STRESS
3) LEARN TO SEE THE EVIDENCE OF WHATS DEVELOPING, FORESEE AND FLOW WITH THE TREND, WITH THE PRESENT CONDITIONS
3)LEARN TO RECOGNIZE A BUSTED SETUP AND CHANGE IN DIRECTION AND HOW TO CAPITALIZE ON IT.
EDGES IN THIS BUSINESS:
* PATIENCE FOR: A U TURN-SETUP-AT/AROUND S/R'S (WITH OR WITHOUT A CANDLE SIGNAL)OR A MAJOR CANDLE SIGNAL, OR A BREAK OUT, OR A FAKE AND REVERSE, OR A BUSTED PATTERN/SETUP.
* LOWER LEVERAGE AND BIGGER PIPS
* SCALING IN GRADUALLY-INVERSE PYRAMIDING:WHEN GOING AGAINST THE CURRENT MOVE, IF FADING POSSIBLE EXHAUSTION AFTER A SUBSTANTIAL RUN
WATCH OUT-WHAT LEADS TO BAD TRADING:
* IMPATIENCE AND IMPULSIVENESS
* WORRYING THAT THERE WON’T BE A GREAT OPPORTUNITY IN NEAR FUTURE
* REGRETTING WHAT YOU MISSED OUT ON AND WHEN YOU GOT OUT TOO EARLY
THE ONLY WAY TO SURVIVE AND MAKE MONEY IN LONG TERM:
YOU MUST TAKE A DEFINED RISK ON EACH TRADE.
YOUR STOP MUST BE AT A TECHNICAL LEVEL.
IF STOP GETS HIT,RE-ASSES DIRECTION, LOOK FOR NEXT SIGNAL TO PLACE A STOP BEHIND THAT SIGNAL.
YOU MUST BE OK TO TAKE A PRE-DEFINED LOSS.
YOU MUST TAKE PROFITS BY SCALING OUT, AND LET IT GO TO TARGET.
ONLY TRADE IF:
WHEN PRICE IS AT/AROUND A TECH LEVEL (CONFLNCE IS BETTER), AT AROUND AN ANGLED EMA - TO TRADE THE U-TURN
1. YOU MUST WAIT FOR A C.A OR P.A SIGNAL
2. YOU MUST PLACE STOPS BEHIND THAT SIGNAL
3. YOU MUST SCRATCH-CUT-LET THE STOP HIT IF THAT SIGNAL FAILS.
4. LOOK TO RE-ENTER UPON THE NEXT SIGNAL IN EITHER DIRECTION WITH STOPS BEHIND PREVIOUS HI/LOW.
5. DO NOT OVER-LEVERAGE, DO NOT OPEN TOO MUCH TOO CLOSE.
OR: WHEN YOU SPOT A COMPLETED BREAKOUT.
OR: EVENBETTER: WHEN YOU SPOT A COMPLETED FAKE AND REVRSE
PHYSICAL EXCERCISE and MEDITATION FIRST.
ISSUE IS MENTAL-EMOTINIOL BALANCE, DO NOT LOOSING THE SCRIPT.
REMEMBERING THE BIG PICTURE, THE MASTER PLAN.
DON'T ARRIVE EAGER TO TRADE. NO NEED. NO GREED.
ALWAYS HAVE: PLAN A, PLAN B, AND PLAN C
IT IS THE BAD HABITS THAT MAKES ONE LOOSE IN TRADING
YOU KNOW WHAT THEY ARE:
· EAGER TO TRADE
· DESPERATE TO MAKE MONEY
· FORGETTING: YOU WIN BY BEING HIGHLY SELECTIVE WITH DEFINED RISK CONTROL AND BY NOT OVER-LEVERAGING
· FORGETTING THAT THERE ARE ONLY 4REASONS TO OPEN TRADES-IF NOT ONE THOSE: THAN DO NOTHING –JUST CHILL AND PREVENT THOSE UNFORESEEN DISASTERS:
1) A SIGNAL AT TECH LEVEL/S (INCLDNG EMA’S-BLACKJACKS)
2) A FAKE AND REVERSE (COMPLETED)
3) A BREAK OUT (COMPLETED-CONFIRMED)
4) A GREAT PIN BAR OR OUTSIDE BAR-MUSTBE AFTER A SUBSTANTIAL RUN (BETTER IF AT/NEARS/R’S)
· FORGETTING THAT: WHEN OPEN THE TRADEFOR: “TECH LEVEL BOUNCE-OFF U-TURN”: EITHER LET THE STOP HIT AND LOOK TO RE-ENTERUPON THE NEXT SIGNAL( FOR EITHER DIRECTION), OR SCALE IN VERY SMALL AND GRADUALLYAT SUBSTATIAL PIP DIFFERENCE (SUCH AS EVRY 20 PIPS OR SO)
· PUSHING IT WHEN NOTHING IS GOING ON
· REGRETTING AND LOOSE THE SCRIPT
· TENDENCY TO BECOME CARELESS, TO GETRECKLESS, TO LOOSE PURPOSE AND PASSION (TO DO THE RIGHT THING)
· NOT STAYING OUT WHEN NO SOLID OPPORTUNITY(ONE OF MY 4 SETUP/SCENERIOS)
· NOT TAKING A LOW RISK AND HIGHPROBABILTY TURN (UPON SIGNAL AT S/R) OR TAKING IT BUT NOT LETTING IT WORK
· NOT WAITING FOR A LOW RISK HIGH PROBABILTY(BUYING AT SUPPORT-SELLING AT RESISTANCE) ONLY
· WORRYING THAT THERE WON’T BE A GREAT OPPORTUNITY IN NEAR FUTURE
· TAKING RANDOM TRADES FOR QUICKFLUCTUAION
· CHASING
· FADING A STRONG TREND
· NOT LETTING A GOOD ENTRY WORK WITHACCEPTENCE OF A SMALL LOSS AND HAVING A PLAN B AND C
THE ONLY WAY TO SURVIVE IS NOT TO TRADE AT ALL, UNLESS:
1)A BLACKJACK (BOUNCE OFF ANGLED EMA'S (INCL. 200EMA) OR A CONTINUATION BREAK OR
2)A SOLID BREAKOUT OR
3)A FAKE AND REVERSE OR
4)A SIGNAL AT TECH LEVELS-S/R'S INCLDNG DEFINED RANGE PLAY (CONFLUENCE IS BETTER).
IF IT'S NOT ONE OF THE ABOVE WHY ARE YOU TRADING? MUST AVOID DISASTORS!!
NO FEAR OF MISSING A MOVE.
NEVER REGRET OVER WHAT'S MISSED OUT ON.
PREAPARE YOUR MIND TO BE SELECTIVE AND TO CONTROL,MINIMIZE RISK.
NO DESPERATION.
NO NEED. NO GREED.
NO FEAR OR ANNOYANCE OVER A SMALL DEFINED LOSS.
CHASING WILL BE YOUR KILLER.
FADING AGAINST A STONGE TREND, HOPING FOR A CORRECTION/RETRACEMENT AGAINST ANGLED EMA'S ALSO WILL ALSO KILL BIG OCCASIONALLY.
LOOK TO BUY AT SUPPORT -OR LOOK TO SELL AT RESISTANCE
IN CONTEXT OF A TREND,OR A RANGE, UPON DAILY /4-HR S/R'S
LOOK TO TRADE BLACKJACKS UPON A CONDITIONAL CANDLE
LOOK TO TRADE A SOLID BREAKOUT (OR A FAKE AND REVERSE)
Leaks, Reasons for a losing day, bad day:
1. TOO ANXIOUS TO TRADE WITHOUT CLEARLY DEFINED PICTURE, WITHOUT A DEFINED SUBSTANTIAL RANGE, OR WITHOUT A DEFINED DIRECTION. NOT WAITING FOR MARKET, THE BIG MONEY TO MAKE IT'S MOVE.
2. ASSUMING, PICTURING THE MARKET TO BREAKOUT ONE SIDE OR TO CONTINUE GOING AFTER A QUICK MOVE, EVEN WHEN NO TREND NO DEFINED BIAS CHANGE AND FEAR OF MISSING OUT - MUST ELIMINATE THAT.
3. REGRETTING WHAT'S MISSED OUT ON.
4. BECAUSE OF REGRET OF MISSING OUT ON A MOVE OR BECAUSE OF GREED: JUMPING INTO A TRADE, CHASING THE TREND/MOVE, FADING THE TREND (AFTER A BREAKOUT).
5. TRYING TOO HARD, TOO MUCH, TOO MANY SHOTS, INSTEAD OF WAITING FOR AN EVIDENCE OF A TURN AT S/R'S, OR EVIDENCE OF A BREAKOUT-A DIRECTION, OR A REVERSAL , OR A RANGE PLAY.
TO DO:
* NEVER EVER CHASE A BIG QIUCK CANDLE SPECIALLY WHEN IT STOPS AROUND S/R LEVEL AND NEVER CHASE IF PRICE IS STILL IN A RANGE. WAIT FOR THE EVIDENCE OF TRUE BREAKOUT THEN SCALE IN- AND TRADE THE CONTINUATION VERY CAREFULLY WITH CUTTING RISK/LOSSES IF NOT WORKING RIGHT AWAY. YOU CAN ALWAYS GET BACK IN UPON THE EVIDENCE.
* BE IN AND OUT OF OPPORTUNITY FLOW BASED ON EVIDENCE FOR EITHER SIDE. BUT STAY AWAY FROM NARROW RANGES AND CHOPPY CONDITIONS.
* TRADE THE POSSIBLE S/R LEVEL WITH 1M/5M CANDLE SIGNAL WITH HARD STOP BEHIND THEM. CUT AND SWITCH WHEN EVIDENCE IS THERE.
* OR LET THE MARKET BREAK INTO A DIRECTION GET IN AFTER A SOLID BREAKOUT EVIDENCE AND ALSO LOOK TO
TRADE PULLBACKS-CONTINUATIONS WITH THE EVIDENCE OF CONTINUATION, USE EMA'S AS STOPS, EXIT AT NEXT S/R.
* IF TRADING PULLBACK AFTER A TRUE BREAKOUT. AFTER A DIRECTIONAL MOVE, LOOK TO SCALE IN GRADUALLY, EXPECT DEEP PULLBACKS.
ALWAYS PROTECT PROFITS AND NEVER CHASE.
Above all you loose your edge, focus and energy to do the right thing: if not in optimized physical, mental and spritiual contidion/fitness.
YOU LOOSE EDGE IF NOT HAVING TOP ENERGY AND PASSION TO PLAY ACCORDING TO PLAN.
FAILING TO PLAN IS PLANNING TO FAIL.
ONE CANNOT PLAN BECAUSE NOT ENOUGH INFO:THEN NO TRADE, JUST LOOK AND DO NOTHING.
IF NO LONG/MEDIUM TERM TREND (ON DAILY/4HR/1HR)
IF DO NOT HAVE CLEAR PICTURE, TIGHT RANGE, CHOP SHOP CONDITION.
MARKET IS NOT DOING ANYTHING THAT IS REQUIRED TO MAKE THE APPROPRIATE PLAN
SOMETHING WILL HAPPEN SOONER OR LATER. BUT DO NOT CHASE, TAKE THE CANDLE SIGNAL. GET IN EARLY ON CLEAN BREAK OR GET IN ON A PULLBACK, BUT DO NOT CHASE WHEN LATE.
RECOGNIZE, IDENTIFY THE PLAY AT HAND:
RANGE PLAY. LEVEL TO LEVEL PLAY. WAIT FOR SIGNALS AT THE LEVELS OR TAKE A SHOT WITH HARD STOP AT THE LEVELS, BE PREPARED TO CUT AND SWITCH.
OR IF RANGE BREAKS SOLIDLY, GO FOR A BREAKOUT PLAY. (OR A FAKE AND REVERSE PLAY)
OR LOOK FOR A "TREND CONTINUATION AFTER A SOLID BREAKOUT" I.E: A HIGHER LOW IN UPTREND/A LOWER HIGH IN DOWNTREND (WITH BLACKJACK IS GREAT). AFTER A MAJOR BIAS CHANGE.
OR PLAN A CONTINUATION IN THE DIRECTION OF OVERALL LONG TERM TREND AFTER A "PULLBACK-IN A TREND" AND PLAY THR U-TURN (USING EMA'S AS S/R'S DAILY/8H,6H,4H/1H/30M/15M EMA'S, AND R.R'S, AND FIBS, CONFLUENCE IS BETTER.
OR "A DRAMATIC CANDLE SIGNAL" PLAY, BIG OUTSIDE BARS, REJECTIONS "PIN/S" BAR/S. AT S/R'S ARE BETTER. BUT NO CHASING, AND NOT WHEN GOING TOWARDS A SUPPORT IN AN UPTREND OR RESISTANCE IN ADOWNTREND, SUCH AS ANGLED EMA'S, R/R,FIBS
NEVER SELL AT/NEAR SUPPORT (BUY/DEMAND ZONE), I.E: ANGELD EMA'S PREVIOUS HIGHS/LOWS, ETC.
NEVER BUY AT/AROUND RESISTANCE (SELL ZONE)
One will make bad decisions: when tired and careless and when in low energy zone, out of unnecessory greed, our of boredom, out of need for action, out of need to feel good by winning a little, by doing something exciting, dangerous, by gambling.
One will make bad deciesions out of frustration, out of revenge, because of deperation for money, to have productive and satisfying day financially, regardlees of the situation of the market on that day.
FORGETTING THAT TRADING LIKE POKER SHOULD BE ALL SITUATIONAL, ALL ABOUT READING SITUATIONS AND MAKING GOOD DECISIONS, WHEN NO EDGE, LOW ODDS, ONE MUST STAY OUT, AND WHEN THERE IS A LEVEL TO GET IN WITH A A HARD STOP, WITH A CUT AND SWITCH POINT S/R POINT PLAY: TAKE THE SHOT AND MANGE THE TRADE VIGILANTLY.
1. When in a range, Assuming and Pre-committing to a continuation scenerio after a quick move to s/r. When market is ranging: there is no continuation.
2. Not protecting profits, letting them turn into a loss in a ranging market. When price is going back and forth.
3. Not controlling risk and leverge. Not planning, not waiting,not sticking to a stop behind 1m, 5m hi/low. Not cutting losses to be free to take the next shot
4. Hating losses, instead of accepting when they are planned, for right reason
5. Thinking about money too much instead of picture and potential and of market/chart
6.Must recognize then anticipate u-turns and execute according to conditions: if ranging, play the range. If recognize a strong trend after a solid breakout, only play continuations, don't fade possible exhaustions and don't trade countertrend-pullbacks/retracements for a few quick pips.
____________________________________________________________________________________________
DEFINE YOUR OWN BEHAVIOUR.
STALK FOR OPPORTUNITIES.
IN A MEDITATIVE STATE, WHERE TIME DOES NOT EXIST. ONLY FLOW "LISTEN TO THE MUSIC OF THE MARKET."
ENTER AND EXIT TRADES BASED ON A PLAN AND BASED ON EVIDENCE OF IT WORKING ONN THE CHARTS:
BE PREPARED TO CHANGE THE PLAN AS EVIDENCE CHANGE.
NOT DRIVEN BY MONEY FACTOR, DAILY GOAL, NEED FOR ACTION, GREED, FEAR, BASICALLY REALIZE AND DEFINE: WHAT'S DRIVING YOUR ACTION TO GET IN OR OUT, IS IT OBJECTIVE, RISK VS REWARD OR ARE OTHER FACTORS SUCH AS NEED, BOREDOM, IMPATIENCE, MAKING A CERTAIN NUMBER.
WHILE TRADING, DON'T FOCUS ON, DON'T ENTER AND EXIT BASED ON:MONEY COLUMN, ON THE TOTAL BALANCE, ON THE DAYS PROFIT OR LOSS, DON'T TRADE BASED ON THEM OR TO REACH A ROUND NUMBER (LIKE $100/200/300 ETC.), DON'T RIGIDLY AIM FOR A CERTAIN MONETARY NUMBER/GOAL FOR THE DAY.
WHILE TRADING: ONLY FOCUS ON MARKET ACTION OR INACTION, EDGES, SETUPS, PROPABIBILTIES AND PATTERNS ON THE CHART, BASE YOUR ACTIONS TO BE IN OR OUT OF THE MARKET ON THEM.
IF THE AMOUNT OF MONEY RISKED, STOP LOSS/SCRATCH-OFF POINT IS NOT DEFINED AND ACCEPTED AND HONORED, THEN NO TRADING SUCCESS IS POSSIBLE IN THE LONG RUN, AND YOU CAN SAY GOODBY TO YOUR DREAMS OF FINANCIAL SECURITY.
REMEMBER THERE WILL BE ANOTHER TRADE SETUP TODAY OR TOMORROW, THERE WILL ALWAYS BE ANOTHER OPPORTUNITY TO PROFIT, IN THIS OR THE NEXT SESSION.
AFTER AN EVIDENCE OF U-TURN FROM A LEVEL/UPON A BLACKJACK: DEFINE A STOP AND LET THE TRADE IDEA WORK, GIVE IT TIME, IT CAN MOVE VERY SLOWLY AT TIMES.
IF STOP GETS HIT, TRADE IDEA NOT WORKING, SCRATCH IT,
LOOK FOR NEXT SHOT/ OPPORTUNITY, ON EITHER DIRECTION.
Updated Lessons:
LOOK FOR PRICE IF HOLDING ON THESE LEVELS, FINDING SUPPORT OR RESISTANCE AND MAKING A DECENT BOUNC A U TURN AT AROUND THESE LEVELS (OR BREAK THEM):
* ANGLED 21 EMA, 34 EMA, 50 MA,
*WEEKLY HIGH/LOW-OPEN/CLOSE, DAILY HIGH-LOW OPEN CLOSE.
*PREVIOUS HIGH/LOW, A FIB, A R.R
WAIT FOR THE REAL MONEY TO COME IN, FOR VOLATILITY TO KICK IN.
IN ANY SESSION, MARKET CAN DO A RANGE PLAY OR TREND, NEVER ASSUME AND BE READY TO ACT ACCORDINGLY WITH ON TOP OF RISK CONTROL AND CUTTING /SWITCHING AS NEEDED. STALK FOR EVIDENCE OF WHAT IT COULD BE AND TAKE SHOTS ACCORDINGLY WITH EVIDENCE OF A SIGNAL. IF WRONG GET OUT WITHOUT HESITATION AND LOOK FOR THE NEXT SIGNAL/SCENERIO-PROBABILITY.
ACCEPT THE INITIAL RISK/STOP LOSS AND CUT RUTHLESSLY WHEN IT'S NOT WORKING TO BE FREE TO TAKE THE NEXT SHOT UPON NEW EVEIDENCE, UOPN NEW SIGNAL.
IT IS FATAL TO TRADE CONTINUATION SETUPS IN A RANGING SCENERIO, AS IT IS FATAL TO COUNTERTREND INSTEAD OF WITH THE TREND WHEN A TREND AT HAND.
A B C : ALWAYS BE CONTROLLING: RISK, EXPOSUREAND LOT SIZE. THERE WILL ALWAYS BE OPPORTUNITIES TO MAKE MONEY (IN NEAR FUTURE).
GO TO THE MARKET WITH: NO NEED, NO GREED, NO RUSH TO MAKE MONEY. TRADE BASED ON EVIDENCE NOT ON ASSUMPTION.
· WHEN YOU SIT DOWN TO TRADE, IF NOCLEAR PICTURE ON CHARTS: CHILL OUT. NO CLEAR DIRECTION, NO BREAKOUT OR FAKE/REVERSE, NO EVIDENCE OF RANGE PLAY SCENERIO THEN NO SHOTS.
· IF YOU DON’T SEE MOMENTUM AND VOLATILITY NOW, THEIR WILL ALWAYS BE A GOLDEN OPPORTUNITY IN NEXT FEW HOURS ORIN NEXT SESSION OR TOMMOROW. *UNLIMITED PATIENCE IS KEY.
· NO FEAR OF TAKING SHOTS-WITH HARDSTOPS: (UPON A BREAKOUT OR UPON AN OUTSIDE BAR, OR UPON A S/R SETUP,ORUPON CONTINUATION SETUP-FLAGS/BJACKS.
· NO FEAR OR HESITENCE OVER TAKINGSMALL LOSSES. NO ANNOYANCE OR FRUSTRATION OVER SMALL LOSSES.
· CUT AND SWITCH WHEN NEEDED, WHEN A(CONTINUATION) SETUP BUSTS. *MUST SEE EVIDENCE-AFTER MAKING APLAN-(FOR STOPS)
· GOLDEN-WHEN FAKE AND REVERSE: WHENAFTER A SUBSTANTIAL TRAP: THERE IS A FAKE BREAKOUT AND A STRONG REVERSAL AND ABREAKOUT IN OPPOSITE DIRECTION.
· FEEL THE MARKET, DANCE WITH IT- WHENMUSIC IS ON. TAKE YOUR SHOTS-BE READY TO DEFEND AND CUT. SACRIFICE SMALL AMOUNTTO BE IN A SUBSTANITIAL MOVE FOR DESCENT PROFITS.
· TO DAYTRADE: FIRST OF ALL READ THECONDITIONS, THEN PLAN ACCORDINGLY. I.E: TRAPPING-CONSOLIDATING, RANGING,THIN-NO DIRECTION, WHAT PATTERN AT HAND, TREND AT HAND, REVERSALFORMING,CONFLUENCE OF S/R’S APPROACHING-ARLEADY BOUNCED OFF FROM. *ITIS THE BIG LOSSES THAT WILL KILL YOU.
· FIRST AND FOREMOST FOCUS ON NEVERALLOWING BIG LOSSES TO HAPPEN. YOU CAN ALWAYS MAKE UP AND MORE, IF TAKING SMALLLOSSES. FOCUS ON LOW RISK TRADING, UPON A PLAN-AND UPON EVIDENCE, ACCORDING TOMARKET CONDITIONS. UPON VOLATILITY.
Why I break "MY" rules and trade without "MY" setups: because I am regretting a missed opportunity to make money and I feel pressure and desperation to be profitable,to have a productive day.
MY RULES:
#1. TRADE STRESS-FREE, ENJOY AND HAVE FUN.
#2. NEVER TAKE A TRADE IF IT IS NOT YOUR SETUP-NO MATTER WHAT REASON, EVEN IF IT CAN MAKE MONEY.
#3. AFTER TAKING YOUR SETUP, PLACE STOP BEHIND TECHNICAL LEVEL. LET IT BAKE, GIVE IT
TIME TO WORK, SCALE OUT. DO NOT LET THE SLOWNESS MAKE YOU GET OUT QUICKLY.
REASONS FOR A LOOSING DAY:
1. FAILING TO PLAN, NOT FOLLOWING THE PLAN.
2. I DID NOT WAIT FOR A CLEAR CUT SCENERIO, EVIDENCE, SIGNAL, I WAS IMPATIENT
3. NOT ABSOLUTELY SERIOUS AND VIGILANT ENOUGH. DID NOT CUT WHEN NEEDED, DID NOT RE-ENTER (UPON A NEW EVIDENCE/SIGNAL) WHEN NEEDED.
4. TRADED WITHOUT A CLEAR PICTURE AT HAND. RUSHED FOR ACTION, WHEN NOTHING IS HAPPENING.
5. I REGRETTED A MISSED OPPORTUNITY TO MAKE PIPS & MONEY
* ANY CARELESS TRADING ANY TIME WILL WIPE YOU OUT.
* MARKET CAN DO ANYTHING INCLUDING V REVERSAL, IF YOU DON'T
CONTROL YOUR POSITION SIZE AND PLAY DEFENSIVE, CUT LOSSES OR
A HUGE LOSS WILL HAPPEN.
* ONLY WAIT FOR YOUR SETUP. DON'T TRADE THE ASSUMPTIONS
* ONLY PLACE TRADES WHEN YOU HAVE EVIDENCE
* THE EVIDENCE WILL DEFINITELY SHOW UP, SOONER OR LATER
* THE ONLY WAY TO MAKE MONEY IS TO WAIT AND TRADE
EVIDENCE ONLY AND YOU WILL MAKE MONEY EVERY WEEK.
* DO ANYTHING ELSE AND SOONER OR LATER YOU WILL BE WIPED, OUT THEN YOU WON'T BE ABLE TO TRADE, LIVE YOUR DREAMS
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DID YOU TRADE WITH YOUR RULES?
HAVE A STRATEGY FOR EVERY THING THAT BOTHERS YOU. YOUR CHALLANGEIS TO NOT LET ANYONE OR ANYTHING AGGRAVATE YOU, DISTRESS YOU ENOUGH TO MAKE YOU TRADE EMOTIONALY WITH AN UPSET MIND-OUT OF YOUR ZONE (FAMILY AND FRIENDS' DISTRACTION)
TRADING THE SETUPS IS AS, IF NOT MORE IMPORTANT AS HAVING A DIRECTIONAL BIAS OR FIGURING DIRECTION. AND DIRECTION IDENTIFICATION IS THE MOST IMPORTANT THING IN TRADING.
SO IDENTIFY THE OVERALL DIRECTION, BUT ONLY TRADE UPON YOUR SETUPS OTHERWISE STAY OUT.
- Remember, if trading pre-London, the real move will happen (mostly) after 2:00am ET.
- Trading is the most exciting game in the world to me. My passion for trading is irrepressable.
- Today is your world cup match, Prepare your best, Perform your best.
- Do not start trading without getting in the zone first.
- Meditate.
- Nothing is more important than trading with optimum focused energy.
- Nothing matters but keeping Laser Sharp Focus on your Purpose, on the Big picture, on your Objective, On trading well, being in the zone.
- Never let anything or anyone distract or stress you, or make you aggravated and take you out of your zone.
- Drop everything that distress you.
- Your goal is to trade like a tiger, highly focused to succeed and to make the best deceisions.
- Your job is to wait for your SETUP, your only edge in this war.
- Let Big money show their move, can always load up upon Pullbacks.
- The fear that your SETUP will not appear is false and sabotaging to your trading and will make you trade bad.
- Your setup will appear sooner or later.
- A great opportunity comes every day, daily session review can prove it.
- Regret over a missed move is a waste of energy and counterproductive to trading well.
- Not every trade has to be a winner or breakeven. It is ok to take a loss.
- Get out of the loosing trade, minimize drawdown. There will soon be another opportunity to make up the loss.
TRADE SETUPS REVIEW:
1. BOUNCE OFF (ANGLED) 21 0R 34 EMA IN ANY TIME FRAME WHEN PRICE ACTION IS TRENDING, EMA'S SEPERATED.
2. PULLBACK TO A FIB, R.R: IN ATREND OR AFTER A BREAKOUT, OR AFTER A SUBSTANTIAL MOVE, NEWS MOVE.
3. BIAS CHANGE / DIRECTION CHANGE, DRAMATIC OR NOT, AS PER PRICE ACTION GUIDELINE. ENTER AT PULLBACK.
4. CANDLE SIGNAL, PRICE ACTION SIGNAL (HIGHER LOW AFTER BOUNCING OFF POSSIBLE SUPPORT AND OR A LOWER HIGH AFTER BOUNCING -OFF FROM POSSIBLE RESISTANCE) A POSSIBLE U-TURN AT/AROUND CONFLUENCE OF S/R'S, AROUND BUY OR SELL ZONE. AROUND 4HR/DAILY PREVIOUS HIGH/LOW, TRENDLINES, ANGLED M.A'S, WEEKLY PIVOTS, HORIZONTAL S/R'S. FROM WEEKLY HIGH/LOW-OPEN/CLOSE. FROM DAILY HIGH/LOW OPEN.
5. A TRAP/CONSOLIDATION BREAKOUT. ENTRY: AT CLEAN BREAK OR AT PULLBACK.
6. FAKE BREAKOUT AND A DRAMATIC, POWERFUL COFIRMED REVERSAL IN THE OPPOSITE DIRECTION, USUALLY A BIG MOVE.