One mans loss – Samsung Stock

Samsung

One mans loss is another man’s game… very true. That also is true when it comes to trading.

You will often find that occurrence in various market sectors [often commodities] Gold could be down and corn could be up as a hypothetical example.

Samsung Saga

I have been following the samsung saga and expecting a really big slump but that hasn’t happen as yet… even though the price is down.

Sometimes though, trading a stock that has so much negative press doesn’t result in a free fall move that you are expecting.

That doesn’t mean that the benefits cant be seen elsewhere in the market.

I emailed Vince this week and asked if he was going to sell samsung ? He explained to me that in these situations it can be wise to trade the competitors stock.

That made perfect sense to me.

Stocks don’t always do what you think they are going to do, that’s for sure. All the charts, indicators and even seasons can be in place and the move you think is going to happen doesn’t. 

Trade the competition

apple

But in these scenarios where a company is facing some sort of catastrophe… as Samsung is with their mobile phone recall, you can look at trading one of their rivals as money can flow into the rival stock as it will be seen as a more stable option.

In this case we can look to trade Apple over Samsung.

I do like the look of Apple anyway, and this could be a somewhat super safe trade [if such a thing exists] so I’ll be looking to trade and profit on this.

You can actually trade some shares on binary now, even though only on the short term, it is a way to get some exposure to the markets and practice. You’ll know your total profit and loss in advance also. 

Vince Stanzione at The Business Show

Vince Stanzione at the business show

The business show is here again at the Olympia London. If you haven’t been before then it’s worth a visit.

For all that is there, I always find only a small percentage [in my opinion] will actually be worth going for. But… it is that percentage that you can take a tremendous amount from. So don’t be put of at the size of the event.

In fact you could probably apply the 80/20 rule to the show. 80% of the show not so relevant to you, 20% of the show right up your street.

Vince Stanzione at The Business Show

As you know, I have been there on a few occasions. And I am not being bias when I say that Vince Stanzione has one of the biggest audiences there.

There are people sat on the floor in there for his hour slot and at least 6 deep standing outside of the presentation area. why? Because this quiet multi-millionaire trader that you’d probably never notice if you walked past him on the street springs to life with passion and delivers an enthusiastic set on how to start making money from home.

Also, if you are thinking of learning to trade or indeed have already started then you’ll also get a chance to speak to him face to face.

In my opinion they need a few more genuine entrepreneurs like Vince there.

In saying that [my little grumble above], you can get a good idea of what is actually going on currently in the business world by walking around the stands and the show can help you create ideas for your own niche business.

Avoid the Hype

2 minute traderDon’t buy into the hype presented there though. The old hat marketing funnel guys like booking line have stands there.

They’ll be Giving away self published books that teach you how to make money doing something that they’re not doing… Giving presentations and pretending to cry all in a bid to convince you that they are genuine because they give to charity. You get my drift!

As it happens, talking about old hat marketing guys, Tim Lowe has bought out a new product called 2 minute trader. Same old, same old promising riches from horse racing trading from bets that cant lose.

Wasn’t this done like 10 years ago? YES… but marketers reinvent the wheel all the time. Last year Tim Lowe was selling football systems, the other month a programme to convert websites to mobile friendly versions, now it’s horse racing.

This is the difference from decent business men like Vince Stanzione and wobbly sales men like Tim Lowe.

Vince has been selling his system for decades. He hasn’t gone from spread betting to poker systems, racing, roulette and so on. He doesn’t offer the next new fad.

That is building proof that something works long term. He is a master of his trade [no pun intended]

2 Minute Trader

Anyway, back to 2 minute trader… the system might work for all I know, in fact I think that I’ll buy it and test it. If it works I’ll let you know, but even if it does I’d be surprised if it is anything new.

At least by doing this I’m not just slating a product because I’m not keen on the marketers behind it.

I’m going to give 2 minute trader a chance. If it is genuine and Tim Lowe can help you make profits from horse racing then you can buy it after the review.

Get Tickets to the Show

So if you fancy a day out, Vince is on at 4pm on Friday 18th November Tickets are free and you can get them here.

A Trade from Vince

I mentioned in my last post that I was going to ask Vince if I could offer my subscribers a trade from his mentorship site. Well… he said yes, so I will send that out to you Monday.

 

 

 

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.