Archive for the ‘Trader Coaching’ Category

« Older Entries

High Probability Trading

Tuesday, May 8th, 2012

Today is Tuesday, May 8th and the markets were on the move today yet again with good price action through out the day.

I took two trades for a healthy daily goal + with the first being a short which set up the second trade, a long with a bit of legs under it. Everything within the method said the trade probabilities were to the upside on that second trade.

With the market coming under extreme heat earlier in the session, by the time I came rolling in, things had already shaken out and the market was on the mend. Much of the price action itself told the story onto its next moves.

Like chess, you need to think through your opponents past moves so you can see his futures moves and get positioned for the “take down”. Trading has some similar traits in that waiting for your opponent to show his hand and pick up on his strategy, you are buying time to let the market reveal its hand to you.

One of the things we traders need to remember is, not to get ahead of the game. What I mean is, do not allow our knowing of  the opponents hand create an over exuberance to participate in what has just been revealed in the games next move. As in chess, if you react to soon, you will loose that advantage of “knowing” and put yourself at risk.

My second trade had just a touch of that in it. I entered like I knew where that next move was going and I was right, but coming in to soon, sometimes is not always the best move. When it is going to just run right after entry, you may feel great, but if you come under a little fire, you have to sweat it out and may even be tempted to move your stop, all things you want to avoid. The first mistake can cause you to make a second and then even a third and then, you have a mess to clean up. Some don’t get it cleaned up and add to the mess, all what I call “destructive trading behavior”. It happens to just about everyone, but traders need to learn to maintain control and trade only what they know. Leave the speculation behind. High probability trading is what is sought after and can be achieved with the proper trading method and the discipline to execute it.

These are some of the hardest things to learn as you are dealing with human emotions at this point. If your trading method says, the market is going to go higher, then you want to just get in at the lowest price and ride it higher. It makes sense, but if you consider what you have to go through to get to the point of where it actually does take off, you may think the early entry is not really worth it.

What I mean is, you may get a good price, but you may also have to suffer some draw down before you see those higher prices you are waiting for. That can cause anxiety and it may even cause you to second guess your original decision, which then puts your position at risk. Indecision is not what we strive for, but solid well thought out plays that clearly has the odds in our favor.

In the chart above, you can see the turning points and some continuation points with the indicators I use confirming. The indicators are only reflecting what the price is doing and so is a reflection of price. I teach traders to focus on the price action and those things that make that up.

This is where the chess analysis comes in again. The market will many times need to move here and then there, before it can make its next move. Those moves are essential for proper positioning which creates the needed energy for price to then expand. If you don’t have the energy, you are only going to see small moves as it gets into position.

The trading “turning points” that I talk about are so very often the sweat spot within the charts to get things moving with little draw down. You can also clearly know where to place your stops in an identifiable way so as not to get hit, 4-5 ticks for the T-2 screen above.  All of this is repeatable price behavior educated traders can come to learn.

Getting to that point where you think you know is sometimes a little harder than most traders what to admit, as most give themselves to much credit. Staying humble with a teachable spirit, is apart of the journey and what is needed. Becoming a good day trader is a life long journey and continual learning is all apart of it. Stay open minded, observe and live your trading dream with high probability trading.

I wish you all the best.  Vince

Tags: , , ,
Posted in Trader Coaching | No Comments »

Positive Self Talk for Traders (part 1)

Thursday, March 1st, 2012

Today is March 1st, 2012 as we saw the market move up off that key support mentioned in yesterdays blog post. Things are still in tact and so the advantage has to remain with the bulls. I couple of weeks ago, I somewhat prematurely mentioned that a top may be in, but that is no longer the case as we have continued to move up. I was not applying the method to that, but just anticipating something that had not happened, usually not a good idea.

That is why it is usually not a good practice to try and pick the tops and bottoms of markets. I know it is within some traders method to do just that, but I find that looking for the evidence within the price to tell you with greater confidence what the next likely move of the market will be is a better overall long term plan and or approach.

We don’t have to get it all, but just some of the move most often will do. Reaching for lower risk and draw downs after the trade, to me, has greater appeal than being right about picking a top or bottom. It might help our trading ego’s, but its the $ that we trade for, “daily bread”.

Let me post today’s trades below and I will continue;

Just three trade today all gains and a modest daily goal. My second trade had some quick profit, but almost got stopped out on the remaining. After seeing a greater move back up, the method said to play it safe and cover on the pull back and did nicely on one more. The last of it, I could see had no additional follow through but I still remained positive on the whole trade. A quick reverse back up finished off the day. There was still more in the trade, but I was satisfied with just a little over an hour of trading.

We should never cry about what we leave on the table, but always be thankful for a positive trading session. Thinking about what we could have had, creates anxiety and will change our behavior for something less desirable in any upcoming trades. This is one of those hidden mind games that we need to be aware of. Lets not think that the market is going to “get us” or think things like, “I always make the wrong choices” and such. That type of thinking is like watching a self fulfilling prophesy take place right before our eyes.

You will be calling and thus creating what you don’t want to happen and then we wonder why it, “HAPPENED AGAIN”. The power lies with your mindset and our ability to control the natural side of our human nature. We are not born being disciplined and wanting to do the right thing. Doing the right thing is often much harder than doing the things that come easily and natural to us. It takes work and “strength of mind”, to think it out and then act, which is not easy for many. This is a form of positive self talk for traders and only the beginning. Acting it out is the second part and the key to get different trading results.

If we say to ourselves that, “I always get stopped out”, you are almost  guaranteeing  you that you will get stopped out on your next trade. Don’t say things like that about you and your trading. That goes for any destructive self talk you might catch yourself saying. Make a list of the things you want to improve on. Then repeat it to yourself with a positive influence on what “YOU WILL DO”.  Let me give you an example;

If one of your biggest problems is entering the market late than you might want to think like this.  “I always enter the market on time, not to soon and not to late. I enter when my method tells me to and expect positive results for doing so”. See what I mean. You have the power to change your thinking and thus your results will likely follow. To many traders fall into a form of “self sabotage” within there trading. That is simply, a default to the least common denominator held about you and your trading. We will never rise to a higher level than we allow ourselves or see ourselves and if you are seeing and thinking negatively, it is only common sense that you will get what you most strongly think about. Another strong reason for healthy positive self talk for traders.

This can be taken into many other areas and think it might be a place to stop and finish up with in tomorrow post. Until then good trading, Vince.

Tags: , ,
Posted in Trader Coaching | No Comments »

Follow the Market not your Emotions

Thursday, February 23rd, 2012

2-23-12; The market is still holding on and above support. Day’s back I gave some support numbers and we still remain above them and so the long term rally is still intact.

The market sentiment has backed off as well, giving some additional room for the market to advance in the face of this sentiment. Until we reach an extreme, the market is likely to continue to advance. This rally has lasted much longer than many have believed. This is all for the daily market and not a very big deal as it relates to day trading, but its always a good idea to know where you stand in the big picture.

In today’s trading, I started late, which is pretty typical, and missed the good moves from the morning session. I traded for 90 minutes and that is somewhat a limit for me. I really don’t like to stick at it for hours. It is too easy to get tired and make mistakes.

I have the turning points marked out as I usually do with a very nice trade at the low of the day, which just kept on going. That left me with the scraps at the top of the range where I started, but I won’t cry about it as I can only take what the market will give when I choose to trade it. Knowing how to read the price action per the trading method is the key and you can’t take what is not their.

Click on the chart and see the notes and the days action. I came up a little shy of a minimum daily goal but that is OK. I little more tomorrow and or one day next week will take care of that, no worries.

This is the beauty of day trading, as each day has its beginning and end with a new day again tomorrow. Leaving the past behind you, even if it is a great day. If you take your success into the next session, it can infuence your trading decisions and I believe it should not. The same is true for any losses, don’t take them with you into the next session. It is really best to let each day stand on its own merits, good – bad – or indifferent.

Traders need a base of operation to start each day. A frame work to follow that will hold them back when needed and get them to act also when needed. A point on the screen to trade towards and the flexibility to change with the conditions.

When builders set out to make a house, they always have blueprints and plans to follow. This allows them to start from a baseline that is consistent and neutral, but from that, they have to access the foundation and its conditions. Is it on a hill, near a river, on rocky soil?

This all relates into market conditions. Are we in a trending environment, is there overhead resistance where prices have had previous barriers or is there a clear path for unabated price movement.

From that, traders need to adjust to that current environment or take losses. We can never insist on our will or what we want, because the market does not care what we want. If anything, it is designed to take what you want away from you and leave you frustrated and will to often leave you with more losses.

This is the reason why I wrote earlier about each day standing on its own. The same could be said about each trade as well. It is not an easy thing to do, but if you can get just this one point from this article, you could make some improvements in your own trading.

Many have heard the term, losses beget more losses. This means that the last trades are having an impact on the next trade and it is negative. So you start out the next trade from a negative bias, with a little frustration built in, shaken not stirred for an emotional cocktail that leaves you spinning in the end, and you guessed it, more losses.

Let each trade stand on its own, be strong in mind not to let a mistake or natural trading loss get you effected one way or another. Don’t let yourself get to high with your gains and to low with your losses. If you can trade as close to an emotional flat line, you will then be making progress in that area.

We all have the ability, but we need that home base to trade from in the beginning, so we can repeat the process again and again. Refine your trading method or find one that you feel comfortable with and build on that. Don’t get emotional one way or another and keep moving forward, that is how winning is done, one day at a time.

Good Trading to all, Vince !

Tags: , , ,
Posted in Trader Coaching | No Comments »

Creating your Trading Plan

Friday, February 10th, 2012

Today is Friday February 12, 2012 where the market had a very large opening gap to the downside. We later stabalized and mounted a couple of rallies, to get some of the losses back.

The daily market is still in an uptrend and it would appear that we could see slightly higher prices or at least not any lower prices than today’s low as per the S&P emini futures.

In today’s trading I did well at roughly 2 to 3 times my daily goal. A couple of trades I came in early, but did see clearly what was coming, a strong benefit from being able to read the price action.  If one waits for that trading edge, you have very little to worry about as you will be looking at green right after entry, which is always a good feeling. Let me post my trades from today below, before I carry on to much further.

Acting on “The Trading Edge”

Day trading is a great way to make a living. You have the free time after you have your points for the day to go and enjoy other things life may have for you. There is more to life than trading, but I don’t want to try and convince anyone about that. We are all different and have different dreams and goals.

To make the dream become a reality, every trader needs to have a “trading edge”. Without it, you will be left with guessing and that is no way to move into this venture. It then becomes more like a gamble and the odds are really then no better. It is possible to come out on top most trading days, but you really need that personal trading plan that is combined with a solid trading method. If you don’t have both, you are leaving it up chance.

Creating your Trading Plan

A personal trading plan is important and is I believe different than your trading method. That plan, is all about you. It is tailored to your goals, your time invested, your objectives in point totals as they relate to time invested in the markets. These are all separate from the trading method you trade. Many may not have thought about it that way and that is why I mention it today, for your benefit.

Every trading method is unique to the one using it. I know that my method, “Sniper Day Trading” is no different. I trade differently than many of my members, but that does not make one better than the other. I like to scale out of trades and don’t mind getting out a little early on some, to make it a little easier to stay in for more.

That is different, in that there are those who like to go, “all in”,  “all out” and that is OK. Thus, my point for having a personal trading plan as it relates to the time you have to sit in front of the screen each day.

If you really want to take fewer trades, but want a higher risk to reward ratios, then you will have to exercise your patients and wait and wait. If you can do that with no problem, that is great. Many times traders can do better by taking fewer trades but for bigger returns. If you can sit through the down time, then a different plan may be better for you. That is why this part is tailored to you and your trading strengths.

There is a lot of controversy over good risk reward ratio’s, but the one that counts is the one that you can do consistently and be profitable with. I don’t think it is a good idea to trade for anything less than a 1:1 trade ratio, which just means that your risk is equal to your reward on any given trade. It does not have to be a totally hard rule, but it should make up the bulk of your trades as such, or better.

In the Sniper Day Trading method, I do have that trade ratio present or better. I will risk 1 point for 1 point at times, and that is fine, because I know if it is good method setup, I will hit it most often. Two of those and that could be a conservative daily goal for some.

Being able to read the market in a pure price action way, is really where you will find that “trading edge”. Getting good at it will instill confidence and give you the courage to put the trade on without fear. If you do experience trading fear, before you pull the trigger, you need to settle down and practice a bit longer.

Trading from a position of fear will take your edge away and you will be reactionary at best. It only gets worst from there, when you have highly charged emotions in the game. Separate yourself from the money and focus on doing the right thing. Don’t worry about the results. Try and shorten your targets to help instill that winning frame of mind and don’t worry if the move goes higher from there.

Be sure you have a daily stop point, if you are not trading well. Never let a modest days loss become a wipe out. You are the one that has control over that and it will keep you alive for another day when more favorable market conditions are present.

Day Trading is very personal to each participant. It can be one of the hardest things you have ever done, but you can choose to make it easier on yourself by getting educated, put time on your side to practice and instill confidence and create your personal trading plan that will put over the top.  I hope this advise will help some on their journey.

Trade well, trade committed!  Vince

Tags: , , , ,
Posted in Trader Coaching | No Comments »

Low Market Volatility

Wednesday, January 11th, 2012

Today is Wednesday January 11th 2012, where we just keep seeing low market volatility day after day. During the Christmas Holiday’s it was understandable, but now into the new year, the amount of trading opportunities has gone down.

Day trading in a low market volatility conditions, will test the skills of all traders, as the moves are smaller and trading opportunities fewer. In addition, your level of patients will be tested as well, which brings me to today’s trades.

I was tested a few times with being patient, but I don’t fault myself for playing it safe.  I come to expect the market to react when conditions are right and when it takes to long, that can be a sign for caution ahead. Being conservative can keep your losses small, but if doubt is present, my view is to step aside until stronger conviction is present. The day’s trades below.

The trading method is separate from the trading indicators as they are there to confirm what is already present. That is very important and cannot be over-repeated.

Not every trading signal as shown is a low risk entry and would have passed on some of the previous signals. Using the mind and method to screen out which turning points are best and which are to left behind can keep your balance sheet healthy.

I have been on a little kick about this in my last few post, but it can be misunderstood as I just post the charts and such. I look to capture 2-4 S&P points for most sessions and call that my “Daily Goal”. When the market is really moving and opportunities are present for more, I will go far beyond that goal to help make up for any short falls in the previous days so I can keep pace with that average. It is a good way to approach the management side of your account as this will keep your stress levels down, not having to swing for the fences every day.

Which all reminds me of some trading advice I gave a member today. We don’t have to take every trade we see and we don’t even have to take “Any” trades. If we don’t like it or not sure, don’t feel like to you have to take it. We are not under any obligation to trade and so we should be free to pass. This will allow you to see the hidden gems when they come up. The perfect trades will just show up, without you having to hunt for them.

In market conditions as this, it is very important I feel to be able to “snip” or pick off a point or so on some clear trades. Doing so correctly can add up just the same as one good trade. If the bigger moves are not present, what you are left with is small moves. If you can not find a way to take points out of that kind of a market, then you are now at a disadvantage and subject to market conditions.

For some, this is no problem as I mentioned above, we don’t have to trade conditions that don’t meet our expectations, but I have seen market conditions last for months like this. If you can not make a profit because your conditions are not right, then you are out of business.

That is why being well rounded to be able to take a 1 point out of the market while not risking more than that, is of value. You can always trade the 3-5 point trades or more when they are present, but you are in greater control. Having the ability, even if you don’t need to use it often, will add a greater sense of confidence to any trader.

That is why I have different models setup for different conditions. The one I use mostly, is you could say the all purpose model. I have a higher time frame chart that fits in with the one I show (that is not seen) and they act as a team giving you a full picture as they are interlocked in my own unique way. There is one series of this below and one series of these above the middle one mentioned. All three of these can be used for insight and or trade opportunities to give you results based on market conditions

More on this in my next post….

Good Trading to All, Vince

Tags: , , ,
Posted in Trader Coaching | No Comments »

Each Trading Day is New Beginning

Tuesday, November 8th, 2011

See bottom of the article for last weeks trades: I have been having computer virus issues on my desktop and lap tops and had to resort to a third computer. Hope to get back on track with daily postings very soon. Thanks for your patients.  Below is an article I did last week and could not get it posted until today. Hope you enjoy it. Vince

———————————————————————————————————————————————–

As a trader, each day is a new beginning. If we have the ability to separate the past from the present and then remain neutral on into the future, than that is a great statement. That is usually not that easy for most people, no matter the profession, but is it possible?

The answer to that is a big “Yes”.  It may not be that way for most people and thus traders, but it still remains a very strong possibility for those who can find within them the ability they need in order to do just that.

This is internal strength of mind to follow through with what YOU KNOW to be true. We may think many things but when we know something is true, that is were conviction comes from and when it is found.

The reason that is so, you act without hesitation and act knowing that the likely future outcome will take place as foresaw. That is a gift for those who get that far, but its not going to automatically take you where you want to end up.

Getting to where you want to go as a trader takes a little more. You need to act on only that which you KNOW TO BE TRUE and just leave the rest for the speculators. That is then what they do, but not us. The stock market is not random as some would suggest. It is a living and breathing entity and is made up of the collective minds of millions of people across the entire globe.

If you were to catch a closer look inside and see what they were thinking and planing well in advance, would that not be worth the price of admission. Traders leave a trail behind them as they make there way through the arena. Those worthy of interest, will rise to the top of the list. Where some gather, more are drawn and then you have a fully invested market filled with a multitude of idea’s.  Those idea’s that rise to the top are the ones that control the field.

Trading is a very interesting world. It has a strong allure, but its rewards are reserved for those that can go beyond the masses. What does it take to arrive at a place that sets you apart from the rest of the world?  It takes the ability to see things not as they are, but as they will be. You need to be a bit of a visionary in that, seeing where the price is likely to go, based on very similar conditions from the past. The past will always lend insight into the future. Those who fail to learn from the past are doomed to repeat it. Where have we heard that line before?

This can all be summed up with what is called a trading method. If you don’t have one, you need one. You can not leave your action up to random events, as they will only influence you to and fro, leaving you lost and confused. If you are new to trading and have not found that place yet, it may be coming soon. No one gets untouched from the sting of the markets as you learn.

Maintaining mental control as it relates to ones trading plan is the key for continual trading profits. If you are not sure, and have doubts, don’t trade. You should practice longer and apply the continual trading lessons that are sure to come your way. In time, your exposure can give insight, but not having the mental fortitude to follow through will just as well leave you as helpless as the one who does not know.

Get with the mental side of the game and gird up yourself to be worthy of the challenge, as not doing so will only leave you morally defeated. It all starts with a thought. You have the power to control your mind and make it follow your lead. If you leave yourself open to every inviting suggestion, then you will be sunk.

We as humans are predictable just the same as successful traders who are collectively able to move the markets, we have the ability to think as the masses think and look to do the opposite. Those results are often very duplicatable and what successful traders look for, thus giving them the undeniable trading edge.

Look for the trading edge as a large part of it is within you.  Trade well, trade committed !

————————————————————————————————————————————————

Below is last weeks trades missed and today’s late trades, no trading yesterday.

Tags: , ,
Posted in Trader Coaching | No Comments »

Traders do not attract that which they want, but what they are!

Tuesday, October 18th, 2011

Today is Tuesday October 18th, 2011 and we saw more of the same as I have been pointing out for over two weeks. The market continues to defy those who are expecting this thing to drop and today a very nice reversal from yesterdays pull back on to yet again new highs. S&P 1245-1250 is an area of some resistance, but that too may just be temporary.

We are almost out of the September/October danger zone and now soon looking at November/December which are traditionally good months for the market. One day at a time here for now.

Let me post a still shot of just the one trade I took today that was good for 2, 3 and 4 points. I could have traded more and looking back at it, would have been a good day to do that, but I said  I was done early on and I want to stick with what I say as a discipline for myself. The last two trading sessions were for over 2 hours and wanted to not do that again today. Below the still shot will be a U-Tube video of the whole day pointing out all the turning points as shown on the screen. The indicators will most often line up with the method, not the other way around, so keep that in mind if you watch it.  We trade a complete method with rules to follow and that will tell us what to do and when to do it, with the indicators confirming the method.

In continuing from where I left off last week on addressing the power of the mind as it relates to your thinking and thus trading, it is always a good idea to watch what you think about and change those thoughts that are not supportive of your goals.

Doing so, will most often enhance your trading results, because every trade starts first with a thought. If you are listening to competing forces, you will be confused at best and suffer unwanted losses.

I will continue to quote a writer from the early 1900’s James Allen who wrote a piece called “As a Man Thinkith” and will just get right into it below.

“Men do not attract that which they want, but that which they are”.

“Not what he wishes and prays for does a man get, but what he justly earns. His wishes and prayers are only gratified and answered when they harmonize with his thoughts and actions. In light of this truth, what then is the meaning of fighting against circumstances?  It means that a man is continually revolting against an effect without, while he is nourishing and preserving its cause in his heart. Men are willing to improve there circumstances but unwilling to improve themselves.”

OK, I pieced a couple lines together but want to point out, a few things as it relates to our trading. If we have bad trading habits, that we just seem unable to shake, what are you going to do about. It has a root, somewhere in your mind that causes you to keep doing that which you don’t want to do and again, I say, what are you “willing” to do about it. Those that are willing to take action and get to the root of that problem, will start to overcome the setbacks that derail you again and again.

Go to the beginning, your mind, where all your thoughts, feelings and emotions are housed. There you need to see what is causing repeated mistakes and limiting beliefs about yourself to succeed. Remember, James said, that men do not attract that which they want, but what they are. So, what are you, within?  Only you can answer that, but it starts with how you see yourself in its basic form. If you see yourself as always getting it wrong, you will do just exactly that, get the trade, timing, entry all wrong without you even being aware of it.

You can want to be succeful as a trader all day long, but that is not going to change anything. What will change things, is what you do about changing your limiting beliefs to empowering beliefs about yourself.  You will need to re-program your mind to support new success. That is not always easy as many don’t have a clue on what that looks like.

I touched on this a little in a previous post, and will just give you a quick idea of what you can do to change that. Make a list of all the things you would like to do as ” a professional trader”, not as you currently are but as you see yourself becoming.

As a suggestion, write it down and speak in the first person.

1) I will always set a stop at the point of entry on every trade.

2) I will never move my stop down, but only in the positive direction of the move.

3) I will take my losses and live with them and improve where I can as losses are apart of trading.

4) I will always protect my trading account in a professional manner and take only the trades that are within my trading method.

5) I am a wise and disciplined trader and I only do the things that a wise and disciplined trader does.

These are only a few suggestions and again, they are in the first person, for you to increase the ability for your mind to accept them as for you. “I Will” is a powerful statement about that which you will do, not hope to or would like to, but “Will Do”. Come up with your own and write them out, repeating them before and during the trading session.

Don’t wish and pray that a trade works out while in it, that is sending the wrong signals and will be seen as coming from a position of weakness. Put your trade on and expect positive results as you have come to expect them from doing the right thing at the right time. If you don’t know what that is, then you need to first get your trading method clearly defined. If you need a method, then you can always contact me, but lets assume you have it.

When you are up in your trading account, you earned that. Don’t ever think that it is free money and you can afford to give it back or take unwarranted risk with it, because it came easy. Again, wrong thinking and that will create a clear path for you to only reverse the process as you will find a way to give it back, knowingly or unknowingly.

OK, I need to end it here, but will pick it up in my next post. Trade well, trade committed. Vince

Posted in Trader Coaching | No Comments »

The Committed Day Trader !

Thursday, July 21st, 2011

Today, July 23rd we saw a strong market from the open once again, +22 on the S&P and +150 on the Dow. With the August 2nd budget deadline fast approaching, for some reason I see things shaping up for a surprise. There is a good chance that we will break out to new highs as this market is flirting with such.

Currently the market is sitting in front of some strong resistance, but that could easily be overcome if the news of a deal on the budget is struck. In fact, there was talk of that today and the market took off. Then it was neutralized with statements of dismissal, so the truth is not yet known. Don’t be surprised to see the market move to new highs in the days to come. Leave that possibility open, you don’t want to be surprised. Like walking across the street, you always look both ways and that is good advise here with this market.

Let me post my trades for today with other signals as marked. There were 4 series of trades all with net gains. One add on trade was a loss of 2 ticks but only on 1 add on contract.

My method is very solidly based on price action, but that action is consistent with some modified indicators I have shown. These will most often confirm or deny my entries but again based on my method interpretation of price action. This is all very sound and it works. So today’s trades below.

I again missed the early rallies, so I was left with taking small scalp trades or waiting until the afternoon session and I did not want to do that. Just a little more than an hour of trading today with another solid daily goal in hand.

A trader can trade like he is right or wrong. If you trade like you are right, you will hold out for the high of any given move. If you trade like you are or could be wrong, you can scale out along the way locking some profit and taking your risk down little by little.

The first way is an aggressive style and the second is a conservative approach. You can change up those approaches as conditions change. It can be the previous price action that reveals the markets hand to you, or you can just elect to play it safe and bag your profits little by little.

Either way, market timing is very critical and can only come to those who know how time, energy and space all work together to produce those moves.

In the chart above and like the hundreds of previous charts shown, some indicator signals are stronger than others and some I would pass on all together. With that said, the way I set up my charts to project and reflect a completely separate trading market philosophy is amazing, as the two still reflect the price action driven part of the method, very cool.

Again, it is in the timing, but understanding that timing, so you are not reacting to the indicators but the price and the likely path of price based on what I mentioned above, time, energy and space.

The market moves into each of those dimensions as things come together to produce a trade. If larger time frames are used, larger rewards are had but the risk are also increased, still proportionate to good risk reward ratio’s. The market is fractal in nature and the reason why you will see the same types of proportionate moves in different segments of time. That is another reason why you can adjust this method to the trader and get the same results. Even if a position trader holding overnight, the components are still all the same as time frames are increased.

Day trading for an hour or so a day is really all I want to invest, because I want to reclaim time and leverage that into things that are meaningful and important to me.

When you can harness this skill, you have the ability to open doors and close others, a very empowering experience.

Don’t let go of your dream as there are so many forces out there to tear them down away from you.

Getting your life in balance is your first objective, because you can not hold onto to lasting success unless you are grounded in mind and body. Knowing who you are as a trader and why you do what you do is essential. Being physically fit with good health getting the rest you need to be and stay alert is also key. Keeping your finances in a healthy shape so they don’t overly crowd your trading with fear of loss is yet another.

This is all apart of getting and keeping your life in balance and very much overlooked. So, do an inventory and adjust to bring yourself into alignment, so you will have every advantage as you make your mark on Wall Street.

Hold on to your trading dreams and take the necessary action to ensure that you do.

Trade Well, Trade Committed !

Tags: , , ,
Posted in Trader Coaching | No Comments »

Mental Stuggles Facing Traders

Wednesday, July 6th, 2011

I will first post my trades for the day in the S&P emini futures (July 6th, 2011 ) and get into a lesson we can all benefit from below.

Mental struggles facing traders has been going on since day one. Keeping our minds sharp and objective is key. Not seeing what we want from the markets, but only the reality of what is happening before us. Your mind needs to be sharp and alert to accomplish that. Always keeping your emotions in check is essential. Greed will wreck your day, if you let it. Revenge trading is just as bad. Most traders who have been at this, know exactly what I mean.

Seeing your trading as you wish it be is a start. You need to get a vision of the perfect day in your mind and allow yourself to exercise it to make it become reality. If you have fear on your mind of not wanting to make a mistake, you are going to knot yourself up to the point you will loose the edge. Our mindset is key to our success and those who are willing to challenge themselves to change and get in sync with the market are the ones who overcome.The mental struggles facing traders are real and overcoming them is where real victory is found.

Rehearsing your trades over and over again in your mind is a good exercise. See yourself entering at your low risk entry point, what ever that is for you, and take what your method is calling for. I prefer many times short term trades, as there are many of those in each session to choose from. If you miss one, another is coming. If you want the home-run trades, be willing to wait and sit through a lot of market data for that to come together, as they come much less frequently.

As traders we are drawn to the markets for what it can offer, financial freedom, but what about time freedom. That to is often mentioned but those that site that as a major benefit, usually don’t take advantage of it as they are on there journey. Time is something you never get back and for me is a high ranking value that I cherish. With it, I can do the things that have and bring true meaning to my life. Things that can make a difference in the lives of others and so on. That only happens when you have a clear vision of what you see and want your life and trading career to be. That is why I prefer short term trading as I mentioned, because it allows me to spend a limited amount of time in front of the screen and get my bread so to speak for the day. This is done by design and it can happen for you as well.

Again, see the perfect trading day. You wait for your method setup to come together, you enter, you wait and you exit as the market dictates. If enough profit is reached, you walk away. If the trade is modest, you wait and wait, enter, wait- then exit. At that point, you can be done for the session and enjoy the time freedom you dreamed of when trading for living was given birth.

To sit and try and trade all day, everyday, you will become tired and make mistakes. Your patients will slow and you will see things that are not there to try and line up with what you want. Trading for a living is not about being right all day long. You only need be right for a trade, two or three and that’s it. If you are trading for income, then you need to trade like you are trading for income, not to feed your ego. There are other things you can do to satisfy that if you feel the need, but over-trading should not be one of them.

If you don’t know, I am speaking to myself just as much as speaking to those who follow me. That is one of the benefits I receive while writing my blogs. To help hold myself accountable is a very good thing. Which reminds me, all traders should have a trading journal to help hold themselves accountable for there trades. If you go outside your method, you will have to account for why you did that. If you don’t like the pain of having to write about that, then wait and only take the trades you understand.

Don’t be afraid of missing a trade. Notice I said, afraid.  That word has its roots in the word, “Fear”.  Fear can make you do some crazy things. Fear of loss is just as powerful as the desire for more, greed. Don’t be afraid of waiting, as many times the trade will come together a little better, but when its time to pull the trigger, just do it.

Another fear can creep in, fear of loosing and that will hold you back from entering at all. By the time you get the courage to enter the market after having missed many trades already, you will be setting yourself up for a loss and that is no way to trade.

Hope all of this helped someone out there. Trading for living is very possible, but you need the right mind set to allow yourself to bring it about. It all starts with a vision, do you have yours?

Tags: , , ,
Posted in Trader Coaching | No Comments »

Trading Attitude Determines Altitude

Saturday, June 18th, 2011

Your trading attitude will determine your altitude as today’s title states. The way you think and feel are so important and directly tied to your trading results. We are emotional by nature and at times that emotion can over-ride reason. When that happens you will find yourself taking non method trades and not even realize it. If that is you, there is help.

The first step is realize that there is a problem. If you do go down that road, it is so easy to make a second bad trade and then a third and so on. Traders often face an attitude of REVENGE TRADING and it can be devastating to your goals and plans to trade for a living. Maintaining control is such a key element, if you are ever going to make headway towards those goals, but how can traders do that?  Just like anything else, you need to change the way you think by taking charge of your thoughts and becoming responsible for them.

By reprogramming your mind with what you will do when you find yourself in a situation where things did not work out the way you planned. That takes work and thought ahead of time, not just reacting to it as it comes up. If you wait until then, it will be to late and your fate will be up in the air for the session.

Write down your biggest mistakes and shortcomings as a trader. The things you do as a trader that you really want to change. You are identifying the problem, a must. Then, think through how you would love to react when you have taken a loss or gone outside your trading plan and write it down. Go over several scenario’s and write out your preplanned reaction to your trading mishaps. See yourself following through with your perfect reaction and rehearse it again and again in your mind.

Speak in the first person, “I will keep my composure when I have taken a loss”,  “I will only take another trade if it is in line with my trading plan or method” , I will be disciplined in my trading”.  YOU WILL.

When you speak like this, it is focusing on the solution of what you will do and that is first step in changing things. See yourself as you wish to be and it will be so. If you only focus on why you did it again, what ever IT is, you are pulling yourself closer to your problem not farther away from it. This has deep psychological issues at hand here and you will need to combat that with a proactive solution to cut it off. If you are not aware of it at all, you will be cooked, as you just seem to keep making the same trading mistakes over and over again and not even know why you are doing it. That is very destructive behavior and will need to stop.

Many and or most of you know what I am talking about, as it is very common but not talked about. No one likes to reveal there weaknesses as a trader, how fun it that, but it is in exposing your trading weaknesses that you will ever hope to overcome them. It only makes sence and it will make dollars once you get serious about doing what you have to to change your thinking and trading attitude.

This will have a direct impact on your trading results, something you may be pursuing for years. If you put in 50% of your energy into the mental side of your trading, you will see an exponential return on your results. It is a lot easier and more glamorous to focus on the method and give the mental side little attention. Why do you think that is?  Well, I believe the reason is, it is harder to be honest with yourself and do the personal assessment necessary to change.

One reason for that is our trading attitude and how we see ourselves. We may want to see ourselves as professional traders, but if we are not thinking and acting like it, it will not line up with our actions and our subconscious mind will know that we are lying to ourselves and revert back to the destructive patterns of the past.

See yourself as a student of the market always learning everyday and willing to change what needs to be changed to conform your actions to what is going on within the markets. You will never project your will on the markets, but you can ride the will of the people collectively, by getting in sync with the market energy displayed for that day. Every day is different, but there are things that never change when trading.

Find your place within the session and don’t be greedy. Trade your plan and maintain control at all times. Don’t allow yourself to trade down in equity past your cut off point for the session. That is maintaining control when you can stop as you hit your DAILY LOSS LIMIT. It is not a bad thing to loose for the session, but it is a terrible thing to get a whip out day for the session. That wont’ help your cause, so don’t do it. Just say No and come back tomorrow when you have settled down.No revenge trading.

I hope some of this helps those who may be struggling to find there way. You need Method, Mind and Money-Management to be successful. Think about it!

Below are my trades for Fridays session. I picked up 4 points in about 45 minutes of trading the S&P emini futures just after the open. Good Trading to all.

Tags: , ,
Posted in Trader Coaching | No Comments »

« Older Entries