Where Now

Trading is easy. There really isn’t anything to do more than wait. I’ve said that to you many times before.

Of course, you can beat yourself up continuously whilst trading if you prefer the hard life.

I prefer the easy life.

But in general, you buy/open your position and sell it for a profit.

If your position isn’t going according to plan you sell it for a loss and reinvest.

Since selling all my bitcoin I have being buying what Vince Stanzione has been advising and since last September my account is up just over 20%

Most of those gains have been over the last 3 weeks.

That’s about as hard as trading gets for me.

I follow Vince Stanzione… because he’s awesome at finding markets to trade.

Blogging

Blogging on the other hand is tough. It really is hard work.

It can take a week to create a quality piece of content. And that content might not even go well. It can get slated and you get deflated.

And as you know, nowadays you HAVE to be into social media to grow your audience online.

I’m not keen on social media… I’m really really not… or is that just because Facebook has turned my stomach for ever? Yes Facebook is awful. It’s all  about ego on there!

Anyway I digress. So as if writing the content wasn’t enough, you then have to do all the Facebook, Insta, YouTube stuff too.

I find doing all that on my own tough going. Especially whilst having family to bring up too.

 

The Catch

The catch is that I have absolutely loved meeting everyone online.

I’ve met some truly fantastic individuals.

I have laughed out loud at some of my emails and messages. I’ve been upset at others too.

But 99% of my readers have been amazing.

 

Which way

 

So Where Now

The question is… So where now??? Where do I go with my blog?

I can’t keep telling you how great Vince Stanzione is and how easy trading is. That’s just boring.

I have written up in depth all the trading systems (all but one as it’s new) that I have used to make money and trade with over the years. You know as much as me now.

I don’t like Facebook so that’s out.

I’m rubbish at video.

I’m too shy to talk at seminars.

Hummmmm???

New Format

I have to get social! I think that’s the answer. Like it or not!

If I don’t like social media then I need to adapt and learn how to enjoy it at least.

So the one thing I thought I could do is use Twitter.  It’s short, it’s sweet, it’s words.

Twitter is for grown ups… well almost. I don’t find it anywhere near as bad as Facebook anyway. I think it’s social media that I could do.

Could I Tweet what I’m doing, trading, thinking and keep in touch that way?

Could I Tweet trade set ups even?

I was also thinking of revamping the blog. Removing all the old and outdated content. And just leaving all the training material live.

Then I’ll just Twitter away anything that comes up that I think, find or know about. Anything and everything connected to trading, making money online and so on and then link back to the blog.

So that’s what I am looking into at the moment. I don’t want to just disappear after 10+ years of blogging. But I don’t want to bore anyone to death either.

I’m going to buy this book and get stuck in.

I do think it’s time for a change and I think this may well be the right approach.

 

 

 

Happy Christmas Everyone

Wishing everyone a very Happy Christmas.

Another challenging year almost over, but I think we have a much more positive one coming in 20222

Take care and stay safe whatever you are doing.

 

How to find Stocks to Trade

I’m often asked how to find stocks to trade? Well most of what I trade nowadays is via Vince Stanziones member’s website. I buy stock and hold it long term.

 

It’s great as Vince has done all the hard work for me.

 

But I do always keep an eye on what’s hot or not and I still look for good stocks to spread bet using simple strategies.

 

So today I’m going to show you how you can do the same and find soaring stocks to trade.

 

It doesn’t take long and what’s more it’s totally free.

 

Here’s how it’s done.

 

How to find Stocks to Trade.

 

Go to Google and do a search for 100% buy list.

 

You’ll see a few sites pop up [obviously] all giving you stocks that are hot.

How to find Stocks to Trade

We are going to use barchart for this demo but you can use HL if interested in UK stocks.

 

Now have a look at the list and choose something to have a closer look at.

 

Here we are going to look at CVR Partners. So I head over to my spread betting account and open the chart.

 

I can see that without doing any research that the trend is certainly up on the daily chart and that recent resistance was broken [lower blue line] and that the price is pulling back from its recent high [the top blue line].

How to find Stocks to Trade

So far so good.

 

Now I’m looking for a big bull candle to break this recent high price and for the trend to continue up.

 

I am not looking to go short at all.

 

Price History

 

If you look back at the chart and the purple line I have drawn, you’ll see what happened when the price broke previous resistance.

 

You can see that the price made a high [purple line] at the beginning of April. The price then typically retracted and finally broke the resistance level on 26th April with a nice solid bull candle [blue arrow]

 

Now that resistance has been broken I can either open a long trade or wait for the price to retest the resistance level that was broken.

 

Either or, I’d have put a stop loss at the double bottom [red dotted line] as that is the last logical low price.

 

My trade was safe and as of today I’d be in a healthy profit.

 

Note: I’d probably not have opened a trade in late April as that is the quiet period and you can see that the price clearly went sideways during those months.

  

On to October you can see that the price broke through resistance again at the beginning of October once the markets had become more active again. This was our most recent LONG opportunity and chance to open a trade.

 

Now we are waiting again for resistance to be broken and the price to move on higher past the $88 level [top blue line].

 

Easy Strategy

 

This is a really easy way to find good stocks to trade. The hard work has been done for you in regard to finding them [stocks] in the first place.

 

You can of course dig far deeper into the stock and find out what is behind the move and what sector they are in and so on. It’s a very good idea to do that before you make a trade.

 

Just Google the name of the company, hit the News tab and read up on what’s positive about them, earnings, directors and the like.

 

If you really want to keep things as simple as possible and can’t be doing with any further research, then start trading small and add to winning trades.

 

 

Sold All Bitcoin and Ether

 

How it can all change in the blink of an eye. I sold all my Bitcoin positions and Ether over this week.

 

Why? Because I have been making money trading with Vince Stanzione for coming up to a decade… and he sold so I did too.

 

Why did Vince sell? Because he was happy with his profits and had lost faith in where Bitcoin is heading with the likes of Elon Musk and every other celebrity involved.

 

He has a point.

 

And even though I was somewhat surprised at finding myself selling so soon, I’m grateful for the insights that he [Vince] provided me with.

 

Bitcoin Profits

 

Was I happy with my profits? Yes of course, although I still feel that Bitcoin will reach 100K in the not too distant future, I also think that Bitcoin has a real chance of falling in the near future too. So I decided to take profits now.

 

I may buy Bitcoin again but I want to take a breath and see where all this is going.

 

Market Manipulation

 

I really think that Bitcoin can give the little guys like us better control over our wealth, but at the moment, a tweet from a prat like Elon Musk can send the market crashing or flying.

 

That’s just not right. Bitcoin is decentralised and is supposed to stop or at least limit manipulation. But there it is.

 

What do you think will happen when he [Musk] tweets that Tesla has sold all their Bitcoins?  That’s going to be one hell of a correction and that did really start to concern me.

 

Elon Musk is pumping Dogecoin now over Bitcoin… I mean what the ****

 

I am a bit gutted that I have sold to be honest. Especially because of the above mentioned moron.

I think Bitcoin is such a fantastic idea, I was ready to hold for years to come; but I’m in the game of profit not crypto. And when your mentor sells you at least have to listen and consider what’s going on.

 

What Now

 

For now, I am in no rush to do anything fast but I will obviously keep following Vince’s lead and start to invest Via Schwab and probably HL again.

 

I have also stated looking at spread betting opportunities again over this last week.

 

I’ll update you soon.

 

Until then have a read of these articles here and here. It has made me think a bit.

 

$1000 Invested 40 Years Ago

40 years ago, Ronald Reagan was elected president of the United States, the Rubiks Cube launched, Lennon was tragically shot to death in New York, the first Fax machines were available in Japan, The Shining had hit the cinemas and Apple’s IPO launched on this day 12/12/80.

$1000 invested 40 years ago

$1000 Invested 40 Years Ago

$1000 dollars invested 40 years ago in Apple in 1980 at the initial IPO [$3,160.05 in todays climate] Today you’d have $430,000 approximately.

 

Now you’d probably feel pretty smart, and rightly so, if you had made that sort of investment 40 years ago.

 

But the fact is, there’s not really anything that smart about it. All you had to do was wait.

 

Bitcoin might be even better than Apple

 

I have had quite a few emails asking if it’s too late to invest in Bitcoin? Should I spread bet it? Am I better off investing in other ALT Coins?

 

I don’t know is my honest answer, who does?

 

But what I do know is that I am prepared to hold bitcoin for at least the next 10 years if need be and I feel very confident that I will make a good profit by or within that time frame.

 

And I think that you still have the opportunity to start small and build up if you can just be patient and wait.

 

It’s Not a Straight Line Up

 

Over the next 10 years there’s going to be lots of movement in the price of Bitcoin. I imagine we’ll see many 20, 30% corrections and pullbacks as the price moves higher. But I do strongly believe that the price of Bitcoin will continue to move higher over the next decade.

 

Remember Then

$1000 40 years ago

The First Apple Computers

I started this post with some blasts from the past. But then, back in 1980, that was all new.

 

Everyone back in 1980 was saying stuff like, everything was going to be run by computers in the future, computers were where the money was going to be, the next world war was going to be run by computers…  Remember all that?

 

In a way, everyone back then was sort of right. But how many people from 1980 bought and still have their initial apple stock? Not many I doubt.

 

Apple shares? What’s that? You’ll lose your lot investing in anything like that.

 

PayPal

 

If you’re too young to remember the 80’s you’ll all know PayPal. But I remember when PayPal was new… and everyone was cautious and apprehensive about being able to send money by email. It must be a scam! That sounds dodgy! Don’t trust PayPal… how can it even work… Now look! It’s the norm.

 

One day in the near future, Bitcoin is going to be the norm too.

 

QE

 

I believe that with all the money printing pre and post Covid, [QE, quantitative easing] that people have to look for other safe havens for their money and that digital currency will offer just that.

 

This I believe will help fuel Bitcoin’s price over time. Add into that the inflation beating Bitcoin halving that happens every four years and I think that Bitcoin really could be the next Apple like investment. And it’s happening now.

 

In the Next 40 Years

 

In years to come I think $50,000 a bitcoin will look cheap.

 

Obviously I could be totally and utterly wrong about this, I could lose a lot of my money if Bitcoin fails, but that’s an investment and risk I’m willing to take. That’s how it is.

 

I’d rather have a go than look back and say if only.

 

Small Spread Betting Bank

Can you make big gains with a small spread betting bank? How often have I heard that?

Well here’s the answer… yes you most certainly can, but it depends on what you trade, how you trade and you as a trader.

Obviously Rachel! But that doesn’t help?

Ok, let me explain.

Spread Betting Small Banks – What to Trade

The first thing that you have to understand is that you can’t go flying into everything that’s hot and short everything that’s not.

Margin [your deposit on each trade] will have a critical impact and limit how much you can trade and what size stake you can use when trading with a smaller bank.

As an example, using a £1500 bank to start spread betting some markets is totally viable. You could be using £.50-3 a point and be OK If you were trading, main currencies and indices, Metals and other Commodities whilst using a stop loss.  You will likely encounter margins of 10% and less at most of the big spread betting firms. These markets are often less volatile too.

In fact, with a bank of £1500, you can easily trade multiple markets and rank up some great profits quite quickly.

However, if you were planning to trade Crypto Currencies the margin can go to 50% and even higher. So using a small bank of say £1500 to start Crypto trading becomes a far less viable option.

You can read how margins are calculated HERE 

So, before you start trading, think about what you want to trade and if it is going to be viable with your trading bank and point size.

 

How You Trade a Small Spread Betting Bank

Are you planning on Day Trading or Swing trading? Short term or Medium term? Closing your trades daily or letting your profits run?

If you are looking at day trading, then your money will not be in the markets for very long. Depending on what strategy you are using, you can expect to be in the market for minutes or from market start to market closing times and anything in the middle.

Often these day trading strategies require fluid markets and they tend to be the most heavily traded markets with the smallest spreads and margins.

Also you’ll find these strategies require guaranteed stop losses for new traders and the trading style often limits you to trading one market once a day or one market several times a day. In either situation stakes and risks are limited as well as potential profits.

So, small spread betting banks can work well in these types of trades as margin and risk are usually easily aligned.

Medium Term Trading

Medium term trades, sometimes referred to as swing trading requires you to look at holding trades from a few days to weeks at a time. You could be trading a few different markets at once. You will be looking to close losing trades quickly and let winning trades run.

You can open daily spread bets and keep rolling over or take a longer term contract. If you lose on the longer term contract then you have paid a larger spread to open the trade in the first place so lose more than if you open a daily trade. However, you pay interest on your winning trades if you keep rolling over a daily trade. Either or, sometimes you just have to keep rolling over a trade if it kicks off in the right direction… although it can be slightly more costly in fees.

Also when trading medium term, you’ll want to have back up funds to add to your winning trades. This means not tying up your entire bank on one trade.

Your Attitude as a Trader

Are you scared to let profits run? Can you even do it? It rolls of tongue… “cut your losses short and let your profits run”. But not many can do it. In fact, a lot of traders do the opposite; they hold on to losing trades and cut the winners short.

But without a doubt if you can master the above mentioned art, then that is the fastest way to bigger profits and bank growth.

It is my favourite way to spread bet.

If using day trading strategies, you can still grow your bank well and steadily over time, but the journey may be a lot slower.

The overall art to winning at trading is accepting what type of trader you are and staying with it.

I have always preferred medium term trading over day trading.

Here are some results and profits that I made using a small spread betting bank of £1500

I chose to start with £1500 as it is an amount most people can get their hands on. You can start with less though. I have traders that started with £500.

I did have losing trades in this account when trying to add to silver and gold.

As you can see, I have more than doubled my initial investment over the last couple of months by just letting my profits run with a few simple trades that anyone can make.

Small spread betting bank

Of course these trades didn’t all just head straight into profit. At various times they were losing too.

The point here is to show you that you can make great returns with little trades.

So to recap…

Set aside some funds and decide what you are going to trade. Make sure your bank and markets are a realistic option.

Choose your strategy. Are you looking to nip in and out of the markets every day [day trading] or are you going to let your profits run and cut your losses short?

Once you have decided on the above, stick to it! Understanding what type of trader you are will pay dividends long term.

If you want to learn about some simple and FREE trading strategies you can use to get started in trading have a look here and here.

You can also get my online course HERE.

Don’t forget that I learnt how to trade with Vince Stanzione and still trade alongside him today. You can read more about his course here.

London Breakout Strategy Updated Results

Before I start this blog post, I’d just like to wish everyone well during this current Coronavirus pandemic.

 

There is nothing I can add to what has already been said and to what you have probably already read.

 

It is impossible to not be affected in some way. Everyone is making sacrifices in this difficult time.

 

Please stay safe and look after each other where possible.

 

My thoughts are often with the frontline workers… they all deserve a medal. God bless you all.

 

Trading Results from the London Breakout Strategy.

 

In my last post I shared with you some results I had compiled from testing the popular Morning Breakout Strategy or you may prefer the London breakout strategy as it is often called.

 

Over the last couple of months, I have kept the test going and have some more results to share.

 

February 2020 produced more profits.

 

There where a total of 10 trades with 3 losses.

 

This gave us a total of 372 points profit for the month and a strike rate of 70%

 

03-Feb-20 58 116
04-Feb-20
05-Feb-20 50 50
06-Feb-20 33 66
07-Feb-20
08-Feb-20
09-Feb-20
10-Feb-20 42 84
11-Feb-20
12-Feb-20
13-Feb-20 43 53
14-Feb-20
15-Feb-20
16-Feb-20
17-Feb-20 28 56
18-Feb-20
19-Feb-20
20-Feb-20 35 35
21-Feb-20 37 41
22-Feb-20
23-Feb-20
24-Feb-20
25-Feb-20 54 54
26-Feb-20
27-Feb-20 47 95
28-Feb-20
29-Feb-20
Total Points Won 511 139
Total Profit 372

 

 

Again this is a very respectable result and profit.

 

March 2020

 

March was a difficult month to find trades. The Coronavirus has caused huge volatility in the markets.

 

The GBP/USD has been seeing moves of 300+ points a day. This often meant that the breakout range was over our maximum points range of 60.

 

We did however have 3 trades that all won. This gave us a total of 294 points profit for the month and obviously 100% strike rate.

 

London Breakout Strategy Results March

 

 

 

The blue lines are the winning trades. The yellow lines are the no trades where the range was above 60 points.

London Breakout Strategy Full Results

 

As you can see, the results speak for themselves and over the 3-month test of the strategy we have managed to make a total of 1050 points profit.

 

That is a great result and an average of 35% added to our bank each month.

 

If results continue then you could build a nice size trading bank over the years with very little risk. Theoretically, you could double your bank roughly every 3 months.

 

Here’s a Compound Interest Calculator that you can download and use to give you an idea of what is possible.

 

Of course, these results are no indication of what you will gain in the future. Anything can happen and you will encounter losing months.

 

Losing Months

 

I actually had a look back to find a losing month, which I did in April 2019.

 

You can see the screenshot here. There were 18 trades with 3 winning and 15 losing giving a strike rate of just over 16%

 

I didn’t do the exact maths but if you had an average loss of 40 points and a win of 80 points then you’d have had a total loss for the month of 360 points.

 

You must realise that you can’t and wont win them all.

London Breakout Strategy losing streak 2019

 

The blue lines are the winning trades. The red lines are the losing trades and the yellow lines are the no trades where the range was above 60 points.

 

I am working on a strategy to trade alongside the London Breakout Strategy. This will help limit losses and increase profit over time and keep you trading the trend and larger moves. It’s looking very promising at present. I will keep you posted.

 

Stay Safe

 

Once again, please try and stay safe during the current Coronavirus situation. None of us are truly alone, we are all in this together and soon enough we will come out the other side.

 

 

Morning Breakout Strategy GBPUSD

I ran a test over January on the morning breakout strategy that is very popular… especially with new traders it seems.

 

When I googled the search term ‘Morning Breakout Strategy’, there was very little in the way of results but plenty of people offering advice on how to trade this popular strategy.

 

So I decided to put it to the test.

 

What is the Morning Breakout Strategy?

 

The morning breakout strategy is a strategy using the GBP/USD when the London session opens. It is not dissimilar to the DAX breakout strategy.

 

The idea is that the price of the pair tends to break the trading levels/zones of the previous few hours and then trends that way throughout the day.

 

Sounds simple right? Well actually it is… and that appealed to me.

 

The theory behind the morning breakout strategy is that you take the highest and lowest price point of the previous 2-3 hours of trading and draw a line at these levels. You then place a set and forget order at the Spread Bet Company that opens a trade and goes long when the high is broken and goes short when the low is broken.

 

You are basically drawing support and resistance levels for the last few hours of trading.

 

As the data regarding the strategy online seemed a bit vague, I tested the strategy using 15 minute candles and the previous price levels from 6am until 7.45 am.

 

I then also ran a parallel test using 1 hour candles using the price levels from 6am until 9am.

 

Here is a graph illustrating what I was doing.

 

morning breakout strategy

 

You can see that I have drawn a line at the highs and the low points on the 1-hour chart I did the same on and 15-minute chart.

 

The blue lines highlighted winning trades and the red lines losing trades or trades where I considered the stop loss was to big to open a trade.

 

My Rules Trading the Morning Breakout Strategy.

 

Once I had got my support and resistance levels in place, I’d set entry points 3 points above the highest high and 3 points below the lowest low of the previous few hours from 6 am.

 

So when I was testing the strategy using 15 minute candles, I was using the last 1 hour 45 minutes of price data [from 6am-7.45am] to draw my support and resistance levels.

 

When I was testing the strategy using the 1 hour candles I was using the previous 3 hours of price data to draw my levels. From 6am-9am.

 

Once this had been determined, I was looking to take 2 x my risk as profit. So 2/1. If I had a 30 point stop loss in place, I was trying to take profit of 60 points.

 

I also didn’t want my stop loss to be to big. Certainly no more than 60 points and the lower the better.

 

You then just need to log into your spread betting account and set up the trade. So you have 2 orders set to open. One long and the other short. You set your take profit level at double your risk [stop loss]

 

You also will need to cancel the other trade once either one has been triggered.

 

Results Trading the Morning Breakout

 

Here are the results of the morning breakout strategy in January 2020 using 15 minute candles and 1H.

 

 

15 Minute Candles

 

W/L Points Won Points Lost SL Date Running Total
02-Jan-20
03-Jan-20
W 68 34 06-Jan-20
L 27 27 07-Jan-20
L 34 34 08-Jan-20
W 60 30 09-Jan-20
L 30 30 10-Jan-20
128 91
31 31
BE 46 13-Jan-20
L 34 34 14-Jan-20
L 32 32 15-Jan-20
L 19 19 16-Jan-20
L 26 26 17-Jan-20
minus 80
L 31 31 20-Jan-20
L 26 26 21-Jan-20
28 28 22-Jan-20
28 28 23-Jan-20
minus 193
31 31 27-Jan-20
0 0 28-Jan-20
0 0 29-Jan-20
30 30 30-Jan-20
64 32 31-Jan-20 Minus 190
Total Profit 190 points loss

 

 

 

 

1 Hour Candles

 

1 hour chart SL Points Won Points Lost
02-Jan-20 30 60
03-Jan-20 48 48
06-Jan-20 47 95
07-Jan-20
08-Jan-20 57 114
09-Jan-20
10-Jan-20
13-Jan-20
14-Jan-20 40 80
15-Jan-20
16-Jan-20
17-Jan-20 30 30
20-Jan-20 27 27
21-Jan-20 30 60
22-Jan-20 33 33
23-Jan-20
27-Jan-20 32 32
28-Jan-20 57 0 0
29-Jan-20
30-Jan-20 42 84
31-Jan-20 54 61
Total Points Won 554 170
Total Profit 384

 

 

These results mean that using the 15 minute candles, we had 19 trades with 4 winning and 15 losing or break even, giving us a 21% strike rate and a loss of 190 points. That makes some seriously grim reading.

 

However, using the 1 hour candles we had 13 trades with 7 winning and 6 losing or break even. This gave us a respectable 53% strike rate and a profit of 384 points.

 

8-9am the Crucial Factor

 

When you run tests like this, the information that you can gain is amazing. We can clearly see that by using the price data until 9 am that we have managed to turn our 190 points loss using price data up until 7.45am into a profit of 384 points by holding on for an extra one hour and 15 minutes before drawing in our highs and lows.

 

This also means that the size candles that you use up until 9 am are not particularly relevant as long as they are under 1H.

 

Why I like the Morning Breakout Strategy

 

I actually really like this this strategy and think that it could be great for new traders.

 

It is very easy to see what you have to do.

 

Once you have found your price levels then you set the trades automatically and set profit targets all within your financial bookmaker like CMC or IG.

 

The risk reward is in your favour 2/1

 

There aren’t too many trades that it will drive you nuts.

 

You can start with a small bank

 

Trading times are easy enough to fit around working schedules.

 

Why I didn’t like the Strategy

 

The main reason that I didn’t like the strategy is that you will need to keep an eye on when you get a trade that opens as you will need to then cancel the one that wasn’t triggered.

 

That is easy enough to do though if you just set price level alerts on the chart using the IG platform. This way you’ll know when you should have an active trade in the market and when you’ll need to login and cancel the other one.

 

You do not want to have 2 orders in the market on the same pair when using this strategy.

 

Morning Breakout Strategy is a winner

 

Overall the strategy was certainly a winning strategy over the month of January using 1 hour candles with price data from 6am – 9am.

 

I’ll do some more testing over the coming months and update some more results come the last weeks trading in March.

Where Next for Bitcoin?

where next for bitcoin

I have not traded Bitcoin for some time now. I find the lack of price history gives me the jitters. But where next for bitcoin?

looking at the daily chart, the trend to me appears to be down. But that doesn’t mean that the price can break out of the triangle to the up side.

If you use the price history for 2019, then the trend is clearly up.

This is obviously contradictory to the longer term price history.

That’s my issue with trading bitcoin at the moment. I just can’t seem to make an informed decision.

Where Next For Bitcoin

The daily charts seem to offer limited information when you are trying to analyse bitcoin… but you can always look at the different charts to see if you can get an edge.

If you really want to try and trade bitcoin, then don’t be afraid to experiment with 1H, 4H candles. If you can hack the pace, the false signals and the spreads then you could even drop down to the 15 min candles and back test.

Trading bitcoin and indeed anything else is all about what suits you and makes you as a trader successful. Some traders are happy to be in front of the screen for many hours a day. Others will make one trade a day. Some traders only make a few trades a month.

Find what suits and stick to it.

Other Opportunities

Whilst everyone is obsessed with trying to figure out what way bitcoin is likely to go, many other opportunities are going begging.

Seasonality Trading is always well worth looking at come October.

The good old currency markets still offer regular opportunities too.

The Dogs of the Dow is another great strategy that absolutely anyone can follow each January.

If you want faster profits, then some of the fastest and biggest gains can come from trading individual shares… especially shares from the US markets.

As a trader, it is your job to find winning trades.  They don’t just jump out at you spell trade me.

For every chart there is a strategy that will work. It’s down to you to employ the correct one.

If something isn’t doing what you expect it to, then take a step back and look at other opportunities.

Trading Triangles

I mentioned in my last post about how you can trade the DOW when President Trump hits social media with his doom reports.

In this post I want to elaborate on that by sharing a video that explains on the importance of trading using Support and Resistance levels and how you can trade many other charts by drawing S&R levels that form triangles.

Using support and resistance levels should really form the foundation of all your trading.

These critical price levels can give you a clearer indication of where the price is likely to go.

Often when you are drawing your support and resistance lines, you will notice that channels and ranges become highlighted as well as triangles.

I love trading along triangles in either upward or downward trends.

The DOW Triangle

trading triangles

If you look at the chart of the DOW, you can see that I have drawn in a horizontal resistance line at the top and a diagonal support line at the bottom.

This has formed a triangle.

As I pointed out in my last post, the idea is then to trade at these support and resistance levels.

You will look for reversal candle patterns at these levels.

You will go long when price has reached the support level and a reversal candle pattern has formed.

And you will look to go short when resistance has been met and reversal candle patterns are formed.

Trading Should be Easy

Whilst this may sound too simple to be profitable, trading like this is in fact a very easy and profitable way to trade.

What’s more is that you can find triangles appearing on many charts.

If you build up your personal portfolio of charts that you like to trade that have formed triangles, over time you will find you have a very profitable and solid list of Indices, Currencies and Stocks to trade triangles.

Trading Triangles is a great strategy.

Trading Triangles Video

I want to share a video with you today on how you can use triangles and support and resistance levels in your trading.

This is a great video to give you a clear understanding of how simple it is read a chart, draw support and resistance lines and create trading triangles.