Posts Tagged ‘mental side of trading’

Trading Course & Mentoring Program

Friday, May 20th, 2011

This post is for Friday’s market May 20th, 2011 as we saw the market initially move lower, then back higher and finished off on the lows of the day -13 on the S&P futures and -93 on the Dow Jones.

I had pointed out the resistance area overhead and told my group that we were likely going to move lower off the open exactly where we ended up within the first hour of today’s trading. In addition, I mentioned several days ago after first hitting the resistance area overhead 1344/1345 that we would likely move back down to the 1316 area by Wednesday at the latest. So far that is turning out to look like a good read as the markets did close on there lows for the day, a solid sign of weakness coming on Monday, but we will see.

The market is getting into position to soon break down or rally back up. the 1316 S&P area is very significant and we should hold above that number give or take a little. I will say, that 1310 on a closing basis is the line in the sand. This is just my opinion and not investment advise, but that number, 1310 needs to hold on a closing basis to remain in the uptrend as I see it. I think we will revisit the 1316 area the first part of this week and bounce once more and then we will see.

A break of 1345 on the upside will likely get things going up again, so that is the number to watch there for the longs.

I did not trade all this week as I had to tend to some family matters that took my early morning days. I did not mind the break as it has been the first week off of any length for months. I hope to be back trading this coming week but I may need to just play it by ear. I have a video of today’s turning points in the smallest time frame chart I use, with just a simple view. I have taken off few things but have left a few things for you to see how a trader could use the indicators I show to his advantage. The indicators are only a reflection of the trading method and is not the method by any means. I teach how to read price action and not indicators, as they are not needed at all to get the same entries as shown. The indicators I show do a pretty good job of reflecting the trading method, but I don’t say to much more than that. There is a lot to it, and is of substance one could build on nicely. I have much more I don’t show, but as I have said before, something is better than nothing.

The trading method and course is not hard to understand, but it does take work to absorb and is very unique. I don’t think there is anyone doing what I do in the way I do it, out there. It is a unique combination of things that I have found to be very consistent and reliable. In addition, it carries with it the potential to carry a very small stop on most trades if you so choose.

There is more than one way to trade the method as well. A trader can take the trading method and build upon it to help him make it his own, personal to him. That way, you don’t have to change the dominant style of trader you are to make this work. To customer fit the method to the trader is ideal. This type of outfitting, has the best results long term for success. You don’t have to turn yourself into a round hole, if you are a square peg. OK, that may not be the best example, but I did get a laugh just now.

I think you know what I am saying. The principals are all there to tailor the method to you. If you like to trade for bigger moves, and trade less, time frames can be re-arranged to account for that. If you like to do purely small scalp trading, of as little as 3 tick to 2 points (and carry a 3 tick stop on most trades), that is available in a different model screen set up called my T-1 trade screen, (never shown). There is a lot more in between as well, to much to explain, but I do know that fitting your trading style to the method is the way a trader will get the best results. In addition, a lot has to do with how much time you have to trade or want to trade, to make a few points for the session. Its all a beautiful thing.

If you are looking for something that works and can work for you, this could be it. I don’t often tout my trading method in my blog writings, but once in a while I do, as I am proud of my accomplishments and how it has helped many traders reach there trading goals.

I often teach and give out a steady diet of the mental side of trading as well, which is so often overlooked. The mental side of trading is just as important as the technical side of trading. This is where getting the desired  results can make all the difference in the world. Some traders need help in this area, to make sure they follow the method and don’t beat themselves for no good reason.   There are a lot of reasons for this and the topic for another posting, so give it some thought and see if  the  trading course and mentoring program, might be for you. If you have questions, I always take more time than most to give you complete answers to any questions you might have.

Wishing all my readers the best going forward,  Vince

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Live Day Trading, Are You Ready?

Wednesday, March 16th, 2011

3-16-11;  Before I get started, I will post my trades here for today in a U-tube video. I traded a lot longer than I usually do for any one session, but the movement and volume warranted it today. I was trading only 2-3 contract mostly and managed to rack up 1K of gains for the session. In the video, I did not really get through the full day but the last trade you see in it, was the last trade of the day. I tried to squeeze it all in but that is how it ended up.

Overall, I had a very good day for trading mostly small size. A bunch of scalp trades in during the early morning open and a few more during the N.Y. lunch period, followed up with a nice 10 point trade to target that I clearly seen and covered very close to the bottom. In my training video’s for my group, I show all of how and why I traded to this target and it is clear to see. So let me post my trades in the video below as a screen shot is not going to contain the whole day of trading.

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I promised yesterday that I would continue with where I left off in my blog from yesterday and I want make good on that now. I left off with many traders trying to become day traders getting into this thinking that they don’t need help or advise, as they know better. It really could be that they don’t want to spend the money, with limited funds I could understand.

Many trading programs are several thousand dollars and you are not sure if it is really going to help you. All very legitimate concerns. But the cost of not doing anything and going on your own, can become just as costly and many times much more so. As things don’t turn out the way you thought they would, you suddenly find yourself wondering if you made a mistake and should have gotten some form of training.

The answer is not in the training, but more so being honest with yourself in accessing the truth about if you are ready to trade the live markets and compete with professionals across the globe. As I mentioned yesterday, we don’t have anyone to grade our performance and we are all to quick to grade ourselves and give ourselves a passing grade, so we could move on to the live trading. If you can not make a consistent profit in a simulator, do you believe you will do better in a live account. It is really the same, but the mental side of trading is something that gets overlooked.

The first key is, knowing how to trade and having a clearly defined trading strategy that works for you. I would say, that not all trading methods are the same for every individual, because trading is an individual venture. You need to tailor that method to your unique personality and take advantage of all that it has to offer, but as it relates to you, the trader.

After you know what to do and how to do it, you need to work on you, as I mentioned in yesterdays blog post. If you have not read it, go back and read it to get a perspective on where I am coming from in today’s post.

Working on your trading style, is important, but overlooking the mental side of trading is all to often overlooked and the reason why traders don’t perform to their expectations. You need both. If you try and trade without either one, you are a disaster waiting to happen. I don’t say that to be discouraging, but truthful.

Every trader needs to know why they are going long or short and where their stop is in advance of the order. If you can live with that, that is good. If you have doubts, you should not place the trade. Wait for something you understand and be patient. When you really believe that the market is  going to move out and come back very little if any, that is when you need to enter and not before. Go back over the session and pretend, if you could within reason get in here and or there, where would you do that and try and find a reason to support your conclusion. If and when you find one, it could turn into a trading method that you can trade.

If you don’t find anything that is consistent in nature, then maybe you need to look to the outside. I say that, as a possible solution to those who are seeking. If you have some market experience and are looking to bring it all together in a way that you can understand and that has rules for entry and supporting reasons for those entries, then you can duplicate those enteries again and again as you make your way to becoming a profitable day trader.

I have the potential to provide that to those who are looking. For those who have that, that is great. You then need to look within yourself and learn what it is that you do and why you do it, when conditions warrant you to react to your trading method. If you find yourself not following through with what you know to be true, you have a problem and need to address it before you risk any more money in the markets. You need to get tough with yourself and take control. Don’t become a victim to your own lack of follow through. This part of trading is so very deep and will take a lot more than one blog post to cover. It could cover weeks of writings for some and it may only be a little jarring for others.

So, you see, successful trading is a great goal to strive for, but you need to be honest with yourself. The moment you do that, is the moment you will give yourself the greatest chance of reaching the trading and life goals of your dreams.

I wish you all the very best !

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Wall of Worry

Sunday, March 6th, 2011

Where will the stock market go from here?  That is the big question on Wall Street these days.

A key number the market will want to honor is 1304 as a danger zone with 1300 as very troubled waters ahead. The market has been rolling full steam ahead since Thanksgiving last year with almost an uninterupted roll to the upside until lately.

The bigger volitility is a sign that things are getting heated up and the market will be expressing that through bigger moves one way and the other until a shift takes place. Many have recently become bullish and others are less worried about a bear market sell off than any time in recent memory. Both of those are a little worrisome, but the market has faced that “Wall of Worry” before as we have seen roughly a 30% increase in the market since last September, the last six months.

There is a lot brewing on the world seen, with the middle east heating up. The price of Oil is not going to make things easy for this economy as it continues to rise. A rising Oil market will make everything much more expensive and trickle through the economy in hundreds of ways that will not end up good for anyone.

I believe we will be seeing an inflationary environment in the months ahead. This is a big cause for the unrest in the middle east. The cost of food is rising around the world. If it continues, which I believe it will, we can continue to see trouble ahead with falling governments and unrest. There is a lot more to the story and one could really get into it, but I will choose not to and leave that for others.

There is always more than one way to see things from the way it is being portrayed. Being a trader we should be trained to see, look and notice the unseen before it becomes apparent to others. This thinking is consistent with many other area’s and world politics is one of them.

As a day trader, the current price of the S&P is a mute point. We should only care from a stand point of seeing a stable economic environment for all those whom it could effect.  From a trading point of view, it does not matter what the market does, up-down-or sideways.

That is the beauty of what we do. We should never be married to a direction or a position. Doing so will leave you in ruins. Just reading the current environment to establish what you should do is the way to proceed. This is the same as reading the newspaper, but for many, that paper is in another language.

In my trading for Friday, I did well to close out the week for another 5 for 5 gains. I have been grading myself  and always find ways to improve. Being a little short on time early on in the session did cause me to force my hand and try and make something happen instead of letting it happen and taking the ride.

These are just some of the area’s I can always improve on. The mental side of trading is a big factor. We should be able to identify healthy thinking or thoughts that should give us concern. If you talked it out, you may be better able to hear what it is that you are thinking and it may be a way to stop yourself if you find that you are going down the wrong road.

Recording your sessions with a screen recorder or through some of the tools that are available is not a bad idea. That way, you can go back and critic your trading objectively. This is part of the hard work that many traders are not willing to do. Others will not take the time to write out there trading strategy in detail and there work will suffer because of it.

For those who follow a trading methodology, say like mine or anyone else, that part of the work is basically done for you. The work still needs to be done in making that trading method work for you and that will entail finding your own style within that trading method.

It is key to learn price action first. Trading indicators are only a reflection of the price action. Trading indicators can be a good confirmation, but they should not be the main reason a trader takes a trade. Not understanding how this action comes together to provide you with strong clues in future direction will put you at a disadvantage. Learn this, and you put the odds in your favor.

Good Trading to all.

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Day Trading and Power of the Mind – Free Book Offer -

Monday, February 22nd, 2010

Hello, Today is Monday February 23rd and the market is still trading while I write this, currently up 3 S&P points.

So far with 30 minutes to go, the market is holding up. The volume has been so slow, just now at 1 million contracts and 30 minutes to go. I can not remember a regular session being that slow, even back during the holidays. With low volume and movement, you have less opportunities to profit. That is why I feel it is important to be able to scalp a few points out of small trading ranges. Often, that is all the market is going to give you. You can always elect to sit it out and wait for things to improve but if you don’t have patience enough to do that, you may be tempted to trade in an environment that you are not trained for. The best course of action is getting trained for it, so that if you find yourself in it, you will know what to do and how to do it.

Scalp trading is not for everyone, that is true. It can be better for some to wait for moves that are for several points, but as I said, you don’t always know when they are coming. If you blow your opportunity, you may have to wait now for hours. Do you have the patience to do that. The answer for many is “No”. That was and is my answer too. I don’t want to wait for two hours to take one trade and wait another 2 hours for the next trade. I don’t need to hit a 3 to 5 point trade to come out on top. Three one point trades counts just the same and with the trading leverage tied to the emini’s, you really don’t need much. To me, two to four points per session is plenty. If you can average just the two points per day, that is 40 points in a trading month. Some days you will have more points and that can make up for the days you get stopped out for the day. I have a 4 S&P point daily stop out point. This ensures that if I am having a bad day, that I don’t do any really bad damage to my account. Getting the upper end of my daily trading goal, is always nice at times. This also protects me from any day that I may come up short.

I was working with someone earlier this morning who was having a little trouble. After our session, he saw things much clearer and had a new sence of confidence, always a good thing. His confidence reconfirmed in the method he had learned and trained on, but needed a little guidance and one on one time. After our session he took three trades for 3 points in an hour. I felt happy for him, but better than one days profits, he has a clear picture of what he is looking for and how to go about getting it.

In todays trading, I took a few trades, nothing earth shattering and could have done better, but it was enough. Trades are as follows; flat, +4 ticks/+5 ticks, -1 tick, +2 ticks/+2 ticks, +2 ticks/+1 tick. The last trade was the only counter trend trade that I took and am trying to take less of them these days. The bigger move came from just above my last trade short and was what I was seeing, but decided to not trade any more and let it go. Tomorrow is another day.

Just a reminder, it may still be a little while before I get the “Free Book on Concentration” up on my website. If anyone wants it now, just email me. It is very good. It pertains so much to trading and what we do, that I am sure it will help every trader who reads it with an open mind and applies its principles. When you start reading the first chapter alone, I believe you will be impressed.

Day Trading has much more to it than getting the entries down and knowing where to exit. You will discover so much more about yourself than you ever thought you could. Some of it good and some of it, not so good. It will bring to the surface all of your weaknesses and expose them, to yourself.  Unless you know what to do with that and how to adjust, you will eventually be working against yourself. Why would we allow ourselves to do this. Well, many traders do not realize how the mental side of trading is always at work here.  The path of least resistance is to do the wrong thing at the wrong time.

Having the mental clarity, focus and mind power to do what you should do and when you need to do it, is imperative while trying to trade the markets. If you find yourself listening to competing voices in your head, second guessing yourself about every trade, not allowing the market to work for you instead of against you, as so many traders end up doing, you will struggle. 

 I too have to watch myself in this area and need to be in the right state of mind when I trade. So, as I have stated before, I am often times talking to myself while I am sharing with my readers. I know what it is that I need to do and want to be sure not to go outside of that. If I am in the red, I am very confident that I will come back, but should not be looking at or dwelling on my past loss at that time. Traders to often, trade with their P&L in mind. It is hard to have the right perspective when money is on the line. The best place to be in when trading, is not having to need the money. If you need the money and the trade, you will be trading from a position of weakness, not strength. That is a mindset and often an economic reality for many. Try and get yourself out of that position and trade from a position of strength.

Mental preparation can make all the difference in the world. I strongly encourage any trader who is serious about making consistent income from the markets, to get my free book. If the book is all you want, that is all I will give you, if you want some advise, I can give that to you as well. (Free)

You have a lot to gain, if you have not considered the real impact, the power of your mind can have on your trading results. You have everything to gain and nothing to lose from asking for it. I have sent it out to some who have requested it and will report back here on how they liked it and how it has made a difference in there trading.  

So, until then, Good Trading.

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