Nov 2, 2016

The 5-Week Trading Course

I have developed The 5-Week Trading Course.

In trading in order to win you have to do everything right. This is a structured course that has an end in mind, helping you becoming a consistent winning trader with a distinctive trading signature.

This is the trading material I wish I had been giving when I was not yet as successful as I wanted to be. I am sure this course will be very helpful in your trading journey wether you are still a novice or a seasoned trader that wants to improve further.

Oct 12, 2016

Don`t Become Obsessed With A Particular Market

It is easy for a discretionary trader to become obsessed with a particular market that has delivered a few straight losing trades, thinking that the market owes him something. This is a bad mental state to enter.

This happens to most traders once in a while. Traders that trade only one market are particularly prone to suffer from this malaise. After three, four or five losing trades in a row, a trader will feel that he has been fooled by the market. Do not try to recoup losses from a market after such a situation. You are probably just out of synch with that particular market. Look for a fresh trading setup in a different market, stock.

Oct 11, 2016

The Best Way To Start Evaluating A Technical Trading Pattern

The best way to start evaluating a technical trading pattern is by testing the entry signal. Is the signal associated with a higher than normal probability of a market move in the desired direction?

Oct 10, 2016

Trading Thought Of The Day

I have never met a successful trader who traded someone else's style. You must have a trading signature.

The Ability To Take Small losses Without Discomfort

The ability to take small losses is a skill shared by all successful traders. And this is where most novice traders really struggle. The inability to pull the trigger and close out a trade that is not working and taking a small loss is a thing that looks so obvious in print but it is a habit that comes with discomfort for many traders.

The Dangers Of Overtrading.

There are two big dangers related to over-trading. First, you pay lots of trading commissions which directly affects your year end P&L. Second, you commit capital to sub-optimal trades, and that means you may have less available capital for your best trading setups, your best trading ideas.

Jul 21, 2016

Trading Is Easy...

"Trading is easy … it’s the research, design, coding, testing and implementation work that’s hard."

Once you obtain a trading edge through research, design, coding and testing then it is all about the mental skills that are necessary to implement it without overriding it and making trading mistakes.

Markets a down a bit right now as the overbought condition is being digested.

Have a great day.

Jul 20, 2016

Looking At Markets With A Biased View

"A great deal of the emotional frustration and disruption of trading that traders encounter is the result of trying to fit markets into a preferred framework, rather than discovering the framework that best describes market behavior." 

Most traders look at a market with a biased view. They expect it to confirm what they are already looking for. Try to look at it as it is. See if what is working is mean reverting or momentum. Apply what you think is fitting best to the recent price action. Keep monitoring price behavior, keep adjusting.

The Most Important Skill In Investing

"Most important skill in investing is knowing what is NOT important. Synthesis = Edge." 

Paying attention only to the relevant information for a trade is a very important skill for a trader. Learn to separate the noise from the signals is a very important step to trading consistency.

Finding Your Own Trading Niche

"In each case, they are doing something very different from what the standard trading books describe. They have found sources of "edge" in markets that they have made their own, and they have been consistent in exploiting those edges." - Brett Steenbarger (trading expert)

The best way to becoming a successful and consistent trader is to find your own niche, your own market. Brett worked with hundreds of traders and saw a pattern of success: do something different, something that it is yours.

Start with an idea, test it and refine till its a workable trading premise. Than exploit it over and over again.

Develop Something To Work In A Specific Market

"Obviously it would be nice if I took a system and found it works on other markets but what I found is a lot of times the markets are so much different so even the ES and the TF for example, they are both stock market indices, they are both pretty correlated but they both have different characteristics that can be exploited and what works on one might not work on the other." - Kevin Davey (systematic trader)

Even similar markets have different behaviors and what works in one market may not work in another. So when we are trying to develop a strategy it may be a good idea to try to develop something to work in a specific market and not trying to build something that works across many markets.

Mar 15, 2016

A Unique Trading Edge

"The successful market participants I know have spent a great deal of effort thinking about–and researching–a unique approach to trading and investing that captures an enduring bias in the market place."

​There are a few very important concepts here. 

1- Spending effort thinking about a unique approach
2- Research that unique approach and refine into a tradable strategy
3- Focus that effort into finding an enduring bias in the current market place

You should use these guidelines to find a suitable trading edge. Ask yourself questions. Go look for the answers. 

Another key point here is the word "Bias". From the dictionary,

Statistics. a systematic as opposed to a random distortion of astatistic as a result of sampling procedure.

a particular tendency, trend, inclination, feeling, or opinion

So, in other words a bias is also a definition of an edge. A trading edge does not work all the time. It is really a tendency for the market to behave in a certain way in a particular condition. If these conditions are met, the market tends to... That is an edge.

Drawdowns: How To Make The Money Back

"You don't have to make it back the way you lost it." 

After a big trading loss many traders become obsessed with making that money back in the same trading instrument. Traders should avoid trying to make the money back in the same way that they lost it. Revenge trading is in most cases disastrous.

Jan 20, 2016

The Hallmark Of A Great Trader

"The hallmark of a great trader is they do their own thing. They have unconditional belief in their system & everything outside it is NOISE!" - Assad Tannous

Great market thought but I think this is a variation of Minervini`s famous quote, "The hallmark of a pro is to operate within your own circle of competence and ignore everything else."

Markets are in turmoil. Again. Back to my trading.

A Good Book

“A good book is more intelligent than its author. It can say things that the writer is not aware of.” — Umberto Eco

I just love this quote. Very true about the best trading books too. Reminiscences of A Stock Operator and Pit Bull just coming to mind.

Have a great trading day.