US Election Trading

US Election

I can’t  believe that we are only weeks away from the seasonal signal trades from Vince… Then comes Halloween, Bonfire night and Christmas.

It’s funny too, that the seasonal buy signal is now part of my yearly calendar.

A Trade for my Subscribers

I will be opening a few new trades this coming week. One is a recommendation from Vince and looking at it I can totally see where he is coming from. There’s no sure things in this game, although if ever you could be certain of a trade going in the right direction for you then this might be it. I don’t mean put your house on it, but it’s a good strong opportunity.

Vince has traded various stocks in this sector… you can spread bet them at IG.

Also, I’m going to ask if I can share the information with my list of subscribers. Now this is a long shot… I have no idea if he’ll agree… but if he does then it might be Christmas come early for those that act on the information. Also, from your profits you can buy Vince’s course so essentially you could get the course for free.

As said though, I’ll see what he says.

US Election Trading.

The US elections are almost upon us. Regardless of the outcome, it should bring a bit of steady direction back into the markets.

S&P 500

Historically, the S&P 500 has had only 3 negative years since 1928 during election years.

In fact this year we have seen the S&P up just over 5.91% to date.

So, a simple little flutter on the S&P in comparison to your returns from the bank leaves them[the banks]… well nowhere near.

If 5% a year doesn’t float your boat then you need to get your expectations in check. Although some trades can and do make far more, it’s a great return for not doing anything and having limited knowledge of trading the markets.

Realistically, if you had just half a dozen positions all returning on average a very conservative 5% each year, you could clearly see the benefits of slow steady investing over cash in the bank.

 

screen-shot-2016-09-24-at-14-48-33

Amazon Sales

I’m building my brand, slowly but surely. In fact, I will eventually have one main brand on Amazon that will then have smaller brands beneath it. So different areas and niches will be branded differently but will all be part of the same group.

The first products listed for sale have been great for getting started and learning the Amazon ropes. These first products are not consumables but they will in future help build brand recognition as we [my partner and I] will have our company logo printed on non consumable products too.

Finding consumables products to profit from is a little harder to do so than finding normal physical products, but the rewards are far greater on consumables in the long run.

Having this mentality will be key to growing the business. We are also going to start another blog that will eventually feed the sales on Amazon.

Football Trading

There are literally hundreds of offers each week for football betting from the various bookmakers.

Accumulators, flat bets, goal scorers, overs, under, correct scores… you name it, there is a no risk offer connected to it.

Arbing these offers might not make you rich but you can absolutely make an easy £20 a day doing them. £600+ a month tax free for a few minutes work each day beats working your rear off doing something else that takes far more effort and time. Think about that.

If you haven’t got it you can get profit maximiser here. It’s the most reliable form of sports betting profits around and you don’t need to rely on any tipsters to do it.

If you wan’t to start your financial spread betting journey you can get Vince Stanzione’s course here.

The One Thing Review

The One Thing Review

The One Thing Review

As you know I have been reading the book The One Thing.

As I approached the final pages yesterday evening, I really appreciated that the book had found its way to me that I knew I had to give it a separate review as I’m sure you will benefit from reading this.

 

So what’s so great about The One Thing?

It’s in a league of its own is an understatement as far as business/self-help books go. I understand that that’s a bold statement indeed but it is.

The book focuses on your one thing… the one thing that you can do that will help you achieve all that you wish to achieve.

It goes on to show you that by focusing on this one thing, that all the other areas of your life related to this one thing fall in to place.

It’s one of those eureka moments that you occasionally get in life.

Reading it you will notice your brain agreeing with the teachings with a, ahhhhhh yes it’s true, you have been trying to achieve so much that you have achieved less that you should have or could have.

When you realize this it’s like a moment of true enlightenment.

It’s like this “at last, this guy truly understands how to help me get what I want”.

 

Remember Slight edge?

I mentioned a book called slight edge a while ago. You can read the more here

Slight edge was a good read, and is very true fundamentally. But slight edge was incredibly repetitive. Slight edge did not need to be so many pages long. 75 pages were ample for that book in my opinion.

The receptiveness was boring… even though it certainly sunk in.

However, The One Thing was indeed repetitive in pressing home that you need to concentrate on one thing to achieve more, but I never became bored with the notion.

I think that because I knew before even finishing the book that this concept of The One Thing is/can be a real game changer hearing it mentioned so often only served as encouragement to finishing the book and start practicing the teachings.

 

The One Thing Review – Researched and proven

The author really knows how to use this concept of the one thing and how it will help you in creating and reaching your goals.

It’s not the same old rehashed techniques that have already be proven to work. The book is not a new take on the old theories.

The One Thing has been put to paper after being used successfully over years and years by the author.

What becomes clear about the author is that he is passionate about the idea. He truly believes in in it, proves the teachings of it and explains clearly how you can use the idea in any area of your life.

There is also a website where you can learn exactly how they researched the content for the book. This is really useful should you find the need to dig into any particular area more thoroughly.

 

Will benefit any area of your life 

As I was reading through the book, much of my imagery was focused around using the techniques for business and profits… But I also realized that I can easily use this approach in the gym, the home or even really unique personal goals like teaching my dog to do new tricks.

 

What is the concept?

Thinking BigThe One Thing focuses [very briefly] around asking yourself what the one thing is that you can do to that will make anything else you do secondary.

It is by asking this exceptional question that you will come to answer with and exceptional reply.

Thus helping you achieve extraordinary results.

It’s really very clever and brilliantly sound advice.

 

Thinking Big

Thinking big is nothing new… In fact there is the classic book titled “The Magic of Thinking Big”

However, the author offers the unique approach to thinking big as ‘Think Big, Go Small” It is in essence an easy way to achieve your goals by using the domino effect.

It’s like, once you reach your first small goal on your way to Your One Thing [big goal] that this process will start the knock on effect with your results.

But here’s the difference…

The author goes onto highlight why reaching your one thing is the start of the journey to truly extraordinary results.

It’s not like… OK you’ve reached your goal… now it’s time to set another.

It’s more like, OK you’ve arrived at your destination now you need to get to the best place in the destination.

One of my favorite quotes from the book sums up the overall idea like this. The author makes you realize that to get what you want from life you need to continually do what matters most…

“If you do what matters most then everything will make sense. If you don’t know what matters most anything will make sense”

He goes on to say that “when you clear the path to success… that’s when you consistently get there.

That’s good advice… and it’s truly concentrating on your one thing that makes all else possible.

In Summary – The One Thing Review

Amazing Book… absolutely a must read if you are serious about achieving more.

Final Quarter – Trading Volatile Markets

I’m back from a well deserved rest. Although different to other years as we stayed in the UK, it was still nice to not pressure myself with having to do things computer, blog or trading related.

Obviously I kept an eye on the markets as did I my fledgling Amazon business but that was it.

I did start to read my paperback… but as I found it so amazingly interesting it did keep the cogs of my brain turning.

So I bought myself another paperback [my favourite Science fiction and fantasy book called Magician] and relished every page.

So what’s in store for the run up to December?

Well, I will be modifying and creating some day trading strategies and will get them into an actual trading system for the start of the new year.

Vince Stanzione

As always I’ll be waiting for Vince to give the buy signals in October as that’s a staple of my trading activities. You can read more about that strategy here.

Vince also thinks that the markets will be volatile in September. whilst i have no reason to disagree with him, I still see plenty of opportunity to trade and indeed make profits.

How to Profit Trading Volatile Markets

If you factor in the predicted volatility when you are trading, you’ll see that you can still easily make money from the markets.

One way to account for this volatility is to lower you stakes by 3/4 and only use a single moving average as entry and stop loss. This will help reduce your stress levels when trading as you shouldn’t panic to much if a position goes against you sharply. 

  • So if you are trading £10 go to £2.50
  • Use a really simple strategy like trading the 200 day SMA
  • Go long when the price is above the 200 day simple moving average
  • go short when the price is below the moving average.

That may sound too easy… but don’t knock it. You’ll be following the trend, accepting of any volatility because of your smaller stakes and be on the right side of the price most of the time.

Trading volatile markets

Always opportunities to trade, but wait and try to take the best ones.

Whatever is happening in the news or world there will always be [for the foreseeable future] a price in/on the stock market.

Yes we have elections, brexit, immigration issues… but we also have growth, strength and the world of opportunities called the internet. All these factors are what makes the world go round.

Another way to look at it is, it’s these types of factors that ultimately create the market price.

Making money from the markets is all about waiting.

I’ve said it before, the money is in the waiting and it’s one of my favourite stock market quotes.

You need to wait for the right trade to present itself. And once you have found the right trade you then need to wait until you have taken as much profit as possible. And that also stands true if you are trading volatile markets.

[Just thinking about it, thats a great name for a book on trading “PLAYING THE WAITING GAME”]

Anyway, there’s always going to be up’s and downs during the waiting, in volatile conditions or not. You just need to go with it and you’ll be fine.

10 years from now.

Vince Stanzione advised all that were at his seminar that we should be planning our financial strategies for over the next 10 years.

It’s good advice.

But why is this considered to be good advice?

Well, because of time. Changing your perception of time when it comes to creating wealth [and most other goals] can become your biggest of allies.

Chipping away with a sound strategy over 10 years and reinvesting your profits will likely see a much better result than trying to make your retirement fund in a year.

Creating wealth is a journey, it takes time. And I assure you that if you don’t take action, a year from now you’d have wished you started today.

A year from now

Think Longer Term for all Business Ventures

That goes for any business that you are in or thinking about.

My new Amazon business is something that I can really get stuck into for a duration. It is in itself a trade that i can add to and build upon. I use my profits to buy more physical stock.

The value of that stock might not go up and down in price like it does trading the markets, but it is still stock I own.

With one of the products that I have started on amazon with, I have sold nearly all my first 100 units that I ordered. I used the profits from the sales to buy 200 units more.

This equates to having turned my initial investment of $300, into physical stock worth $2900 [sale price is £10.97]

How much I can turn that into will obviously be limited by demand. But once I reach that demand level I will buy other products with the profits and then rinse and repeat.

Some products I buy might not sell so well, others will sell much better. Over 10 years of doing this how many products will I have that are making money? Lots hopefully.

Amazon has been growing over the last 20 years, I truly believe it’s going to be here for at least another 10, 20 and beyond. I’m happy to use a 10 year strategy on this

If the stock market disappeared tomorrow

If the stock market ceased to exist tomorrow I’d still be in business with this approach… vice versa I’d still be in business if Amazon disappeared tomorrow.

And if they both disappeared on the same day then I think there’d be much more to worry about than making money.

So in summary

If trading, follow the trend, use 1/4 sized stakes and keep it really simple, buy over the 200 day SMA and sell below the 200 day SMA as an example.

And if building any sort of trading portfolio or physical business, remember that in 10 years time you’d of wished you had started today.

  

De Stress – Chill out with a paperback

I love reading. Always have, as my partner has too. But I can’t remember the last paperback I read. That’s sad really.

Times have changed, sure. But I do so much reading on my iPad nowadays that buying a paperback seems almost a forgotten option.

I thought just the other day that I’d buy a kindle for outside reading as the screens are better than the iPad screens in the sun.

Poor old books…no, I really mean that. So I have just ordered The One Thing in paperback.

Do you try to do too much?

I found out about this book from a guy that runs a blog about selling on amazon. His podcasts are brilliant as well. I’ve chatted to him by email and he really knows his Amazon business. All his content is free so worth checking out.

As said, I almost bought the kindle version of this book but refrained from doing so. [I’m glad I did].

The book is about concentrating on one thing [unsurprisingly] at a time and to keep going until whatever it is that you need to do is done.

It goes deeper into how to shut out everything that is irrelevant to the cause and just focus on the one objective.

It sounds like the book is about removing all the unnecessary junk out of our lives and concentrating on the most important single goal effectively.

From what I can understand it is not just about business, the strategy can be used in any area of your life, health, wealth, relationships and more.

I’m looking forward to reading this.

Take some time out to De Stress

De Stress

It’s OK; I’m not going to start to preach on to you about anything. I’m just going to give you some very interesting scientific facts about the benefits of meditation.

Stress, far more than just a headache

It’s no secret that stress is affecting us negatively. In fact some say that stress in its many forms can be fatal.

Yes we have all heard about it and know when we are really stressed, but how well are we dealing with it?

I read this article recently about the benefits of meditation; they claim that the huge rise in depression is a direct result of all the stress. They go on to claim that meditation is just as effective as some anti-depressants as a solution to depression.

Is it things like exchanging the good old paperback for the iPad and the amount of other nonstop entertainment devices that we have today that is subconsciously stressing us out?

Makes me wonder if we are dealing with stress most of the day?

My Advice

So it is my advice in this post to remember the enjoyment of reading a paperback and pick one up this summer.

Also check out meditation… there are so many benefits from doing so. Ironically there are many apps that can help you get started.

My partner is into hypnosis and meditation seriously. He always says he feels better for doing it regularly [meditate and hypnosis]. In fact he says he almost does it naturally now. He says it’s like reminding yourself to stop thinking.

Holidays

We are going to be having some holiday time now for a couple of weeks.

I’m going to try and not think too much for the next fortnight. I’m looking forward to it.

Haven’t booked anything abroad, but we shall be along the south coast at various stops. The UK has some fabulous places to visit. Plus the thought of driving to the airport, queuing, checking in and everything else is that goes with summer holidays is, well, it’s stressful.

Read some Trading Books

Also might be an idea to take some time to swot up on your trading over the summer if you are still looking to get started.

With the US elections almost upon us, I think there will be some good trading opportunities after the results. I think Hillary will get in… If so, the world is essentially being run by women… May, Merkel,Clinton. Girl power.

Anyway, have a great holiday if you are having one and I’ll update with anything super worthwhile if it can’t wait or anything amusing that I just have to share.

Making Money with Amazon

Free forex signals

Free forex signals

An idea occurred to me the other day that you may be able to make a profit trading currency by using some of the free forex signals offered.

My approach is slightly different than just relying on a signal company’s prediction though.

I thought that if you could sign up for a few services and only trade the signals that all the services agree on, you may be able to make consistent profits???

Now, I HAVE NOT tested this out but the logic behind it is that if all the signal services you sign up to for alerts suggest the same trade then you trade it because it may carry some extra accuracy weight.

Free Forex Signals System

So for example, service A,B and C all agree that the USD/CAD will rise over the next hour.

You then place your binary bet or spread bet.

If only 2 of the services [let’s say A & C] agree that the price will rise you only place half your normal stake or trade half your normal point size.

Obviously you’d have to find the free forex signals yourself, but there might be an opportunity to be had here.

If you do a Google search for free forex signals you’ll get the idea.

I have never used a signal service, free or paid. Vince Stanzione does indeed offer trades but it is not really a signal service, it’s more of a learn to trade portal. So I’m not going to count that.

For people that are just too unsure or are not confident enough to rely on their own selections, this may be ideal.

It’s been done on Horse Racing

I know that a similar type of thing has been done with horse racing.

It was something like, If 6 tipsters all recommend backing the same selection then it’s so many points that you bet, or you back a place for a given runner if 3 or more tipsters fancy a horse with win odds of 4/1 minimum.

As said, you’ll have to develop this idea on but it may carry some weight with some trial and error.

Learn to Trade Price Action

Learn to trade price action

One of the simplest and most effective ways to start trading is to learn to trade price action.

Price action Trading or PAT relies solely on the actual price of any given market. There are no indicators on your charts. Not even simple moving averages.

Instead of using any such indicators, you will speculate price movement by the current and recent price, occasionally trend lines and simple candle stick formations.

We don’t use technical indicators when trading price action because any indication of price movement using these indicators relies on past prices.

As we are only concerned with the actual current price and direction when trading price action, these indicators become redundant.

The actual price movement itself is all we will be relying on. The price doesn’t lie.

You can easily use the free charts on yahoo to trade price action, they are more than adequate for this type of trading.

If you traded the price action and managed to achieve a 50% strike rate you could safely assume that you could make consistent profits.

Also, by placing a stop at 100 points and only take a profit at 200 points and above means that you are taking odds of 2/1 in your favour every time you trade.

So using the above statistics conservatively, you place 100 bets and 50 lose, but you win 2 x more than you can lose with your other 50 winning bets. The edge and the odds are in your favour, giving you have a positive returns.

How to trade the price action

As said, PAT is very easy to do, there is nothing complicated about trading the price action. Here’s a good example of how simple and effective this strategy can be.

Looking at this chart of the GBP/JPY we can see that the recent trend is down. We can also see that the price has been making higher highs over the recent shorter term.

You can also see that the very last candle has rebounded from the resistance line and formed an inverted hammer candle.

If I were trading on this information I’d expect the price to move down from this recent resistance and resume its downward trend.

 

 

learn to trade

 

As you can see from this next chart this is what happened.

Price action trading

These charts all have a similar pattern and price action movement after reaching support or resistance lines and forming certain candle patterns.

Spinning top

 

Learn to trade price action

Now even though I was correct at predicting this price movement, another trader that sees the exact same chart may take a completely different view of direction. This trader may have decided that the price was going to rebound.

It is important that when you are trading price action that you rely on your judgment and blank out other opinions.

Price action trading can also be used on falling prices just as effectively.

Candle Patterns

You can trade price action charts by trading candle set up patterns very easily. There are many candle formations that people use, but the ones I have found to be most reliable are these.

bull morning star bull abandond bull engulf bull hammer

These candle formations often spell a reverse of direction and can be very useful when trading our 4 hour candles. I find the doji and the hammer are awesome chart signals.

So far…

a, we have higher highs or lower lows

b, we have support or resistance from our drawn lines

c, we have a certain candle formation formed

d, we have identified trend direction

Other Price Action Factors

There are some other useful factors to consider in depth when trading price action.

Time frame of trading

I have found the minimum time frame on the charts that creates the most reliable consistency is the 4 hour charts.

The lower the time frame the higher the chance of random results [losing the edge]

If you are using fixed odds to trade then you will use the higher/lower bet and trade in 4hr increments. So 4,8,12. I find I am using 8 hours more than others.

The thing is, with fixed odds higher/lower bets you are right or wrong. There is no middle ground. So the longer the time frame you use the more chance you have for a result.

Once you are wrong you are wrong. But if things are going really slow and the price is moving sideways you have more time for things to move in your favour. Thats why it’s better to use longer time frame candles like 4 hour. You have a greater chance or a better edge.

Imagine it like this

The ten minute candle is very thin in width; the 4 hour candle is much thicker.

All of a sudden someone decide to put a ton of gold on the thin 10 minute candle. The candle just can’t handle the weight and it crumbles and gets pushed away.

Now this same someone puts another ton of gold on the 4 hour candle. But because the candle is so much thicker it doesn’t crumble away to nothing. It may move very slightly but it stays stable.

This is essentially what is happening to the candles on your charts.

The smaller the time frame the less buying or selling [weight] the candles can withstand, hence faster and more erratic price movements.

Become an Expert                  

Far too often, new traders try to trade all different pairs, indices, stocks. DON’T. Slow down and stick to trading the same few.

You will over the years become an expert at looking at that one particular pair for example.

Some charts that I look at and I’m trading you can read like a book. you just get a feel for them. Like you find yourself saying “yes the price does that, it’s OK, I’ve seen it before”.

You know what to expect and this one element of trading can make all the difference to your success.

In fact since I started developing a day trading system I have concentrated on a single currency pair to trade. The results improved.

It’s boring

You might be thinking that it’s going to be a boring old journey trading just the one chart for the next 10 years and beyond. Well that’s trading, it’s boring. If you want excitement go play roulette.

You will have the chance to trade other opportunities, of course. But understand that it’s better to become a master price action trader using one stock, currency pair or indices and make money consistently over time than it is to trade anything that moves and make far less… and more importantly learn to trade far slower.

Some things are easier to trade.

currency pairs volatility

Some currency pairs, stock and indices are actually easier to trade than others.

Here are the easiest currency pairs to trade listed by daily range in ticks.

You can also try trading the DAX as this can regularly through up some great trading opportunities.

Also, if you do your homework you’ll find certain stocks perform really well for price action trading.

Paddy Power is a great place to start.

 

Slight edge and time

If you have been reading the blog for any amount of time you’ll know that I preach to you about how slowly overtime is the best way to make profit’s. It is again the same with price action trading. Trade once a day with a slight edge in your favour, compound your profits and over time you will increase your wealth.

You can read one of the most repetitive books ever written here. OK i may be having a dig at the style of the book, it is very repetitive, but I seriously remembered the lessons taught. So much so that it is on that fact alone that the book is worth it’s weight.

Stop losses and Setting target profits

As mentioned briefly at the beginning of this post, with this type of trading you will benefit from setting targets and stop losses.

If your target profit is 200 ticks then your stop loss should be a maximum of 100 ticks.

Using the above criteria you are firmly dictating that the odds on any trade will always be 2/1 in your favour. This essential also reduces the strike rate needed to be profitable.

You will often find however that your stop loss will be far less than 100 ticks.

If you look at this gold chart you can see that the stop loss can be set at the resistance line at the very end of the current movement 1256.6 [around 45 ticks] as your entry is around 1261 even though your upside is a potential 200 ticks. That’s a great edge.

The reason that you use a profit target trading the price action is that it makes it [price action trading] completely mechanical. You are not going to let profits run here. You have no need to panic over where to take profits if the price starts to move back against you.

You have set rules and these are in place to try and make trading more profitable and less emotional over time.

Gold price action

Where to trade? Spread bet or Binary

You can trade the price action by spreadbetting the position and setting stops and targets as explained above, or you can place simple fixed odds bets on a daily/weekly basis.

Each have there own pros and cons, simplicity is fixed odds and greater profits [at least in the beginning] is spread betting.

How often can you trade?

You are not going to trade everyday. That’s all there is to it whilst you are starting out and trading a single currency for example.

You have to be patient and wait for the signals and entry points. Or else you’re just plain gambling.

The opportunity to trade is not going to be clear every day. Even though the opportunity to trade is there every day. When in any doubt as to what way you think the market is going to go, leave it out for the day. Only trade when you are sure. Don’t look for what isn’t there.

 

So in summary

  • Identify the current trend direction.
  • Look for the price approaching a support or resistance level
  • Identify a candle formation at the level
  • Trade the rebound or…
  • Trade the price breakouts
  • Set stop loss
  • Set take profits
  • Rinse repeat

 

7 Trading Blogs I Always Read

 Trading Blogs
I’m often asked if I follow any other traders online… of course I do. Although there is only so much anyone can absorb and read on a weekly basis.
When I first started trading I used to try and read everything and anything from so many different trading blogs… anything to gain an edge and a bit more knowledge. Now there are only a few I follow on a regular basis.
You should find at least a couple here that you will be able to take something from. 

The Trading Blogs I Always Read

Bullbearings 

I like to stay tuned into this because it predominantly UK contributors, written in plain english it is a breath of clean air. I do not take trading advice from any of the writers on the site [other than Vince] I use the the site to keep my eye on the overall picture and stay current.
Sometimes a headline is all you need to read and I like to do that.
You can also use it for a bit of research.

The Naked Trader 

I like this site, I like Robbie Burns. 
You can get some good trading ideas from Robbie and a brief insight into why he has chosen a stock or opened a spread bet. 
You can also research anything that Robbie is trading and do your own evaluation of his positions.
It’s good practice for newbie traders.
I personally like Robbies style of writing as it’s light hearted and often amusing. 

Stock traders Almanac 

I’ve mentioned the stock traders almanac numerous times on the blog. This is one blog that you must read and also one book that every trader must have a copy of. 
The almanac has many statistically sound and proven systems and opportunities that you can incorporate into your trading. 
I also like the way that it is a family business that has been handed down.
I met and spoke with Jeff Hirsch at one of Vince Stanziones seminars. He’s a nice guy and is also very genuine. 
The Stock Traders Almanac is a must.

Morpheus Trading 

I haven’t been reading this blog as long as the others I have mentioned, but it’s a great blog about trading price action and swings.
The blog posts are interesting and informative
There is a little bit to much marketing on the site for me, but that may be something that appeals to you if you decide on this shorter term style of trading.
You can sign up for the alert service and it comes with 30 days free. I have not tried anything that is paid for on the site but the trading strategy is sound.
Also, if you are unsure or even intrigued by trading ETF’s then this is a good place to start your research.

Trading Sim

A thorough day trading blog that i flick back to now and again to see what they are up to. I like the way that they try to explain their chart reading and go to great levels to make sure that nothing is missed.
Again, not everything is free but what is free you’ll be able to take a lot from. 
I like reading the posts from Alton Hill. He seems genuine and has a passion to teach that comes through clearly.
Since starting my day trading system search and development I have used some of the ideas and theories to aid my own research.

Mellon on the Markets 

Not essentially his own blog but you can also follow him on https://twitter.com/jimmhk jim mellon has an estimated wealth of over 850 million and is often referred to as the UK’s Warren Buffet.
His ideas and visions are well worth staying up to date with. He is focused on the developing world and the opportunities that may present themselves.
Good stuff.
And last but certainly not least.
I’m a subscriber to Vince’s premium service so read those blog posts, but his main blog is great for the newbie traders. Not full of a million and one strategies to choose and try, but more focused on trading opportunities and a traders mind set. 
Quick tips and videos that can help you understand trading at your own pace.

A slight edge in financial trading systems

 

If you are looking to trade the markets over the longer term [1-3 months +] then the edge you need for your financial trading systems to be successful will be far less than if you were to trade a shorter time frame.

So what is the edge? The edge can be defined as any factor that you can apply to your trading strategy that will help you gain profits over any time frame that you are trading.

A slight edge in financial trading systems

At first glance, these long term charts supplies most of the information you need to place a trade with higher expected win rate than that of losing.

We are simply going to buy the positions in the expectancy of the price rising.

Financial trading systems

 

 

Trading apple stock

 

In fact if we look at these charts in the final quarter of the year it will be interesting to see what the profit and loss is by simply trading above and below the 200 day SMA?

Now if we look at some 1 minute forex charts that are popular with day traders we can see that it will require a much greater edge if available to make accurate decisions.

1 minute trading system

All the above price movement occurred in less than an hour. I have tried trading these time frames and it is madness.

To give us an idea of direction we will probably need to use far more indicators and our speculation needs to be analysed in far greater depth.

I feel that this type of trading [or at least to me] seems to be more like guesswork.

Even if you think that you may have an edge likelihood is that there isn’t one. With so many underlying variables trading 1-5 minute charts seems random.

Furthermore, even if there was an edge I think that the speed that the markets move creates further problems, especially if you are spread betting.

[Using binary will be your best option here as you can place the bet and leave it alone].

Panic Trading

With spread betting though and using these time frames the psychological demons of trading are queuing up to have their say.

Shall I close, add more, wait, exit, oh no 3 ticks in the wrong direction this is a disaster… close out for 5 ticks loss after your spread and the price goes back in the right direction. You enter again and pay another 2 points spread.

This is a good example of what a new day trader goes through.

It’s the quick fire decisions that hammer new day traders.

They panic and get it all wrong under pressure. Even though they may know what the correct action to take is. They don’t do it.

“Always sell what shows you a loss and keep what shows you a profit. That was so obviously the wise thing to do and was so well known to me that even now I marvel at myself for doing the reverse.”

Jesse Livermore

 

Trading Under Pressure

Financial trading quizImagine that you are taking a general knowledge quiz. And your specialist subject is dogs. Each question is asked every 1 minute.

You have time to think about the answer and the likelihood of you getting the answer right increases.

You are asking your subconscious if the answer is stored there in your brain, if you know it the answer is given.

If you don’t know the answer you may even be able to make an informed guess. Almost like using chart indicators for your brain.

Many of the questions you get correct because you have time on your side.

Now imagine the same sets of questions are being asked. But now you only have 5 seconds to get the correct answer.

This is a totally different prospect. It’s unlikely you will get as many or anywhere near as many correct answers.

You may well know the answers but under stress you just can’t give the right answer quick enough

This is much like how day trading and longer term trading results differ. The results are in direct correlation to the time that you have to make informed decisions against ill informed decisions under stress.  At least that’s my theory.

It’s simple that the longer your day trade is the more successful you will become. Trading 1 minute charts is difficult trading 4 hour charts is much easier.

I’ve proved countless times that it’s far easier to trade the long term, that’s why I recommend Vince’s style of trading.

That said, I am starting to see options trading the shorter term, although nothing using charts under an hour really.

My day trading research

As you know trying to find a winning day trading strategy is taking a lot of my time up at the moment; I’m happy that it is and I’m enjoying the challenge greatly. But there is only so much that I can do.

Little Acorns

So for the next few months I will not be placing any little acorns bets.

It’s purely because I need to be totally focused and little acorns is something that I’m using very little cash on and reward ratio is lower to my other current interests.

I will most certainly be keeping an eye on the results though [via some of the racing blogs] and will get back to it soon.

If you are using it, keep going, it really works even at level stakes.

I have noticed a few ways that might increase strike rate but it means studying the form in detail. And this adds to selection time. I will do a separate post on this soon.

Charting packages

I’m also testing out some new charting packages that are cheaper than sharescope. I thought it may be beneficial to new traders to have some other good chart options that will not cost them £50 a month.

I’ll keep you updated on my findings. At the moment I’m trying TradingView, it’s around 29 euros a month for live prices and it seems OK. Another I’m trying is Prorealtime. You can get a free trial for both and pro real time is free if you have an IG account.

 

A week after Brexit

Life after Brexit

Life goes on after Brexit.

What a week after Brexit… not that the Brexit had anything to do with what I was doing. It just shows you how quick everyone adjusts and moves on. Be honest, how often did you think about it this last week? Nowhere near as much as before the vote I bet.

Anyhows, I have just had so much on as well having home improvements on-going. Sometimes it’s Friday before I know it.

Euro 2016

Well what happened to the England team? That was the worst display I can remember from an English national team. In all honesty though, I do blame the manager.

He was never a success in the premier league so how on earth could he possibly carry the England team forward? Why did we choose him?

Anyway, I’m glad Hodgson has gone, he didn’t have a clue and was sooooooo boring.

Personally I think we need a younger manager with far more attitude. Let’s see who’s in line?

I am still chipping away at trying to find a day trading system that will work. It’s seriously hard work though.

More often than not I’m finding that many of the trades that I identify are far more profitable leaving them up to a week and more.

So what starts out as a day trade winds up not one unless you are trading the dailies of course. Then you start again the next day and pay another spread. I’ll get there though.

The Markets

The markets seem to be steadying but I’m not sure about anything long term at the moment. I’ll stay with Silver for now and another that Vince recommended.

Vince Stanzione has made some other really good calls that I wish I had traded. That’s how it goes though; you’re never in on all the winners. There will be more opportunities soon enough.

He [Vince] did a good video recently that highlights some common questions that are raised about technical analysis and random outcomes.

Well worth a watch as you may understand why it has been so difficult to produce a short term system.

Other online opportunities

I’ve recently started selling more products online.

I say started selling but should really say listed some more items on Amazon. If you don’t know anything about selling on Amazon, I’m using their FBA service. I think it is going to be huge. You can read about it here.

You might remember, years ago I started selling on eBay. I turned a £100 start up into over £30,000 turnover in just over a year.

Well I’m going to do something similar on Amazon but they [Amazon] do everything for you, like taking payments, shipping and customer service.

This means that if I can source a winning product I will have far more time to look for other products and build on this.

One of the main reasons I stopped selling on eBay was because of having to deal with the customers. Some are just so horrendous. They treat you like dirt.

By using Amazon FBA I’ll avoid all of this.