In this thread I am going to help us focus on what I have found to be important in my trading career. I am not a market wizard or even a professional in the sense that this is my only form of income. I have other businesses but trading has slowly but surely crept up over the past 10 years to the point where it now contributes a considerable proportion of my annual earnings.
So what is this trading system? In short it is about determining what sort of a market it is that you are in and then using the right strategy for that market.
It is really quite simple... if it going sideways, breakouts will fail most of the time... if it is going up, you will probably have more luck buying the market... are you starting to see the big picture here?
Newbies really think if is needs to be complicated to be useful. It doesn't, in fact the more we can strip it back, the quicker we will get to profits. The chart can tell you a story if you are willing to listen. A mistake I made in the beginning was finding a good strategy and then pigeon holing myself by saying I am a breakout trader and I only trade brakeouts...
Now while in practise this did not make me lose loads of money, what it did do was take away any other opportunity the market presented to me. For example if the market was very range bound and I could have made money buying the lows and selling the highs, I didn't because it wasn't the specific strategy that I was trading.
Then you know what happens... you start to force trades that aren't there because you want to be in the market. So I ask you this... instead of forcing the wrong trades, why not learn to take the right trades?
If this is of interest to you, stay tuned...
So what is this trading system? In short it is about determining what sort of a market it is that you are in and then using the right strategy for that market.
It is really quite simple... if it going sideways, breakouts will fail most of the time... if it is going up, you will probably have more luck buying the market... are you starting to see the big picture here?
Newbies really think if is needs to be complicated to be useful. It doesn't, in fact the more we can strip it back, the quicker we will get to profits. The chart can tell you a story if you are willing to listen. A mistake I made in the beginning was finding a good strategy and then pigeon holing myself by saying I am a breakout trader and I only trade brakeouts...
Now while in practise this did not make me lose loads of money, what it did do was take away any other opportunity the market presented to me. For example if the market was very range bound and I could have made money buying the lows and selling the highs, I didn't because it wasn't the specific strategy that I was trading.
Then you know what happens... you start to force trades that aren't there because you want to be in the market. So I ask you this... instead of forcing the wrong trades, why not learn to take the right trades?
If this is of interest to you, stay tuned...
