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How to Get Your Trading **** Done!So you have a trading account opened. The money is in, your watchlist and charts are set up. But you have left your trading half-hearted with doubt, concern and little energy. This is what is slowing your performance. This is what is stopping you from growing your account. And this is why you’re living with second thoughts not seeing progress. May these 5 steps be the wake-up call to get your trading done! Step #1: Get a cheat-sheet Every trading plan you have, needs a cheat sheet. Your cheat sheet will remind you of the criteria you need to enter your trade, put your stop loss and take profit levels. You can also add what percentage you would like to risk and the Risk reward you’ll follow. Once you fill in the blanks and info – Print it, laminate it and stick it up somewhere. Step #2: Prepare your watch list As you know there are countless of markets to choose from (stocks, indices, commodities, currencies and crypto-currencies). Make sure you have a solid short list of markets you’ll be looking at when you trade. Once a day or so, you can go through them and see what is lining up with your trading system. Step #3: Sit down and set up At the most suitable time, shut down all your distractions for the day. Phone, Netflix, family, pets etc… Sit down for a couple of minutes a day – going through your watch list and writing down the trades that are lining up for the next day. Step #4: Place your trade/s order Whether you’re placing a trade during the day or after the market closes, you need to take the trade. If all is aligned in syzygy, you have no excuse but to type in a couple of figures and click BUY or SELL. Easy… Step #5: Journal your trades Once all four steps have been accomplished, you’ll then write down the trades you’ve taken in a trading journal. This way you can keep track of your progress and have an archive of your trading performance with the right stats. Don’t waste any more time waiting for the right time and feel. There is never the right time. Hope this wake-up article will help you really kick off your trading success from here on end.
JSE:J200Education
by Timonrosso
Don't be a still trader!“Timon, I’ve been following your trading tips for the last 12 years and I STILL haven’t taken my first trade." But I will soon trade... Soon? Like tomorrow? Next week or in the next 12 years? Procrastination is the thief of time. I hate clichés but I love that saying. #1: STILL not ready for losses I think most people don’t want to take losses. They are seen as small failures or small fractures to a person’s pride and bank account. Whether you’re running a business, a household or a trading portfolio – there are going to be oopsies. So how do we deal with the idea of taking losses? Well, don’t think of them as losses. Think about them as costs… When you run a business you have to pay costs – equipment, stock, admin, salaries, legalities etc… When you run a household you have to pay costs – electricity, water, take the trash out, taxes and repairs. When you run your trading account you have to pay costs – Losing trades and drawdowns… You pay costs with everything in life, and so it shouldn’t be any different with trading… Instead of calling them losses – call them ‘costs of trading’. Helpful? #2: STILL no right system This one is common. You don’t know what the right system is for you. You’ve tried a couple of moving averages, indicators, price action even volume. Nothing seems to work for you yet… I don’t have a correct answer for you, but I can tell you with how I found my system. I wanted something that didn’t require too much thinking, little indicators, worked on all time frames, was easy to back and forward test and is timeless. And it took me years until I finally found a system that you see here in TradingView. So ask yourself exactly what you want in a system and drill down each detail that matches your current lifestyle and times… Just maybe, the answer will stand out for you better. #3: STILL Not making money Now this is ambiguous. If you end up positive for the year, you’re making money. If you’re not happy with how much money you’re up for the year, that’s different. It’s all relative. Step one is to make sure your portfolio is positive by the end of the year. Then it’s a numbers game as to what your portfolio should be to make more of an income. But first make sure you’re in the positive before you play with Mr Market. #4: STILL Making excuses The only thing I can add to this is the wonderful comfort zone of doing nothing. It’s safe, it’s consistent and we’re used to it. But if you are constantly thinking of wanting to trade and build your wealth on a regular basis – it tells me you’re ready but not ready to leave your comfort zone. You got to pull up your socks and just START. The hardest step to trading is taking your first step. I hope these tips will help you shake off the STILLness that’s lurking inside you, so you can achieve greatness.
JSE:J200Education
by Timonrosso
1
Don't let Captain Hindsight mess with your tradingCaptain Hindsight is bound to get in your head. Whether you’re just starting out or you’ve been trading for the last 10 years or so. He is going to question you with two simple words. And these two words, can really cause a negative impact on your trading portfolio. In this short article, I’m going to warn you about how he’s going to uppercut your mind and most likely cause havoc with your trading. This way, you’ll know what to watch out for. A dangerous two word question to interfere with your trading What if?” Here are some… “What if the market is in a bubble and I buy too high?” “What if I’m wrong about this trade?” “What if my trading strategy worked then, but won’t work now?” “What if the market is in a period where I’m just going to take losses?” Whenever the captain whispers these questions, you’re going to feel vulnerable and start second guessing your trading system, strategy and skills. Succumb to the Captain and he’ll be back stronger and more powerful than the last time. Here are THREE ways to beat Captain Hindsight before he returns ACTION #1: Extend your back-testing So you have a trading system that you believe works… Prove it. Go back and re-test different markets and jot down every time the system lined up. Record every trade, including the costs and the statistics and prepare yourself for what is to come. The more you back-test your system, the more markets and environments it would have weathered and endured. If it came out with all time highs on your portfolio, it’s a winner. Captain Hindsight – won’t have anything on you – with a decent track record… ACTION #2: Drop your risk The most common way for a trader to feel emotional, is when they have a lot to lose. The larger your trading position, the more desire to win and the more fear you’ll have to lose. This is why greed, fear and panic are the most ongoing reasons for traders to annihilate their portfolios. Trading is a get rich slowly but surely game. And when you accept the gains and losses, you won’t care what the Captain has to say. ACTION #3: Step away from the screen Not only will Captain Hindsight creep in before you take a trade. He’s bound to enter your mind while you’re in the trade. “What if you’re wrong about this one?” “What if you get out of your trade now while you’re in a profit?” “What if you take a small loss, because it looks like this trade is a loser?” The best action to take, when you’ve entered your trade with your trading levels (Entry, Stop loss and Take profit), is step away from your trading account. Distract yourself by getting a drink, water your garden, take a drive or do other work. The less you’re glued to the screen watching your trades, the less you’re going to feel worried about the small moves that happen in the day. Always remind yourself… “My trading strategy will REWARD me for following it. My trading strategy will PUNISH me for NOT following it.” These three actions will eventually help you beat Captain Hindsight for good, as it did for me over 20 years ago.
JSE:J200Education
by Timonrosso
What is Holding You Back Trader?So you want to trade, but just not taking action. You’re on the computer and so close to taking a trade or opening an account with a broker. The button is right there. And yet, it feels like there’s a wall between your finger and the button. I get it. It’s a big step to take when you know you’re entering into uncharted financial waters. You know risk is involved… You know time is needed. And you know education is crucial. And yet you’re still hesitant. In this article, we’ll pinpoint what is holding you back from creating your financial freedom as a trader. REASON #1: You’re talking more than doing This is a big one. Maybe you’ve been reading trading and investing articles for years now. And yet, you keep finding excuses to not take action. 1. “I’ll start next month” 2. “I’ll wait for the market to correct before I trade” 3. “I’m stressed with work and family” Listen… Life is going to continue with new problems, stresses and issues. And this will extend your delays and increase the number of excuses you’ll make with any new hobby. You just need to start doing, and the rest will take care of itself. And you’ll find you’ll feel more accomplished and proud of the fact, you took action. REASON #2: You’re concerned of the short term Every trader I know wants their first trade and month to be profitable. I was the same. In 2003, I bought a bunch of Anglo Gold shares. I felt so much panic because I wanted it to be a winner. I didn’t think of the long term effects. Let me tell you, I don’t even remember my first winner. I’ve taken thousands of trades and I’ll tell you, the first trade is over looked and felt. When you have a proven trading strategy, you lose interest in what a few trades will do for your portfolio. You keep your eye on the long term rewards. REASON #3: You are scared of losing This is one humble game, where the market takes a little and gives back to you and then some. It’s all down to one simple method – Risk and reward. You’re in a calculations game now, where you need to lose in order to win. Embrace the losses and own them as you would with any business costs or overheads. REASON 4#: You’re waiting for the right time What does that mean? Are you waiting for enough money? You never start with a lot of money as a trader. You test, you learn and you gain experience. I guarantee you blow more money on a holiday, on petrol and at restaurants than the amount you’ll lose as a start up and humble trader. Are you waiting for the right time? There are thousands of markets that are either in uptrend, downtrends or sideways trends everyday. There is never the right time to get into trading. Why? Because it’s always the right time. REASON 5#: You’re too busy to start I’m sure this article has helped open your eyes to a new spectrum of reasons why you’re holding back. Stop talking, start doing. You do have enough money to start trading. You have more than enough time You need to lose, to win. Nobody is ever too busy to not pursue their dreams and create their freedom. Got it? So stop holding back and listening to some imaginary voice inside your head
JSE:J200Education
by Timonrosso
Risk Less money in Drawdowns. More money in winning streaksA drawdown is a period of decline in the value of a portfolio. This is where you take a number of trades, and the losses drop the portfolio at a marginal level (if you know what you’re doing). During these times, the market is typically more volatile (jumpy) and unpredictable. And so you have a higher chance to risk money in unfavourable times. Risk less with drawdowns When your portfolio drops 6%, 8% or even 11% - This is where you’re not sure when the market will become more favourable. This is the time where you decide to risk less money per trade. You would drop the risk from 3%, 2% to 1.5% or even 1%. Then keep trading until the markets pick up and start to favour your portfolio… Once you’re out of the drawdown then… Risk more money with the winning streak During the winning streaks, the market is typically more stable and predictable, and the chances of making a profit are higher. You can then pump up the risk back to 2% or 3% (if you’re a risky biscuit). When do you do this? When your portfolio is either BACK to an all-time-high. Or when you can see the market has broken out of the sideways consolidation and volatile period. Risk management is an important aspect of successful investing, and adjusting the amount of money being invested based on market conditions is one strategy that can help investors achieve their financial goals. By risking less money during drawdowns and more money during winning streaks, you as the trader can lower your potential losses and maximize your potential gains.
JSE:J200Education
by Timonrosso
Humble yourself or the markets willAs a trader, you must approach the market with humility and an understanding that you are at its mercy. And so you need to remember that the market, doesn't know you, doesn't care about you, and doesn't work to reward you. Let’s break that down. The Market Doesn't Know You The financial market (Mr. Market) is a complex and dynamic system that is influenced by a multitude of factors. These factors are beyond our control and are pretty much impossible to predict. As a trader, you need to remember that the market doesn't know you, isn’t out to get you and that your success or failure is not a personal reflection of your worth. The Market Doesn't Care About You It can be tempting to think that the market is out to get us and that every loss is a direct result of our own mistakes. However, the market doesn't care about us as individual. They don’t have some personal vendetta against us. Every trade is simply a result of supply and demand dynamics along with risk, reward and probabilities. We must accept that sometimes the market will work against us, no matter how skilled or experienced we are. The Market Doesn't Work to Reward You There is such high competition with trading. This environment is very high-pressured. It sometimes feels like we are in some race to make as much money as possible. However, it is important to remember that the market doesn't work to reward us. As a trader, you must be humble and understand that success in the markets takes time, patience, and you must be willing to learn from your mistakes. Also need to approach each and every trade with a level-headed and open-minded perspective. Focus on this, and you you’ll make which will help us to make better decisions and increase our chances of success.
JSE:J200Education
by Timonrosso
Why You Need Humble Pie as a TraderHere's why you need to be a humble trader. REASON #1: Humility is required for losing I’ve mentioned this for the last 20 years. And nothing has changed. We are NOT in the trading game to be right. We are in this process, to follow a proven and winning strategy in order to grow our trading accounts over time. Not in a week, not in a month and not even in a quarter. It is our job to take the trades, bank the medium sized gains and take the small losses along the way. There should be no ego with expecting a trade or a sequence of trades to be right. If you want to be right, go become a lawyer, accountant, swimmer or find another hobby. REASON #2: Humility betters your trading strategy process It can also be tempting to try to change the system. This is where you act on impulse, bank a premature winner or cut a loss quickly. This does nothing to your strategy except turn it into a discretionary, non-tested and a temporary winner in the short term. But in the long run, when the markets rectify and become more favourable your winning, your strategy will stop working. Instead, rather focus on your system, improve on your entries, look for conducive markets and master execution. Your portfolio’s results will then take care of itself. REASON #3: Humility is not trying to avoid drawdowns You need to be humble enough to believe your carefully proven strategy ‘knows’ better than your short-term ‘wise-guy’ ideas. It’s not your job to avoid drawdowns (sequence of losses). It is your job to manage your drawdowns with structured and consistent methods. I have three strategies with drawdowns: 1. Trade your Equity Curve (portfolio) to know when to pause trading 2. Drop the level of risk per trade 3. Look for only high probability trades on other markets REASON 4#: Humility highlights your weaknesses You have to be honest as a trader. You can’t keep thinking you’re best at every aspect of trading. Break down the processes including (Markets allocation, Methods and systems, Money and risk management and Mind and psychology). Then ask yourself… Where am I weak with trading and why? Dig into your personality, traits and preferences. Become vulnerable so you can see the truth where you may be lacking in your success. Here are some thoughts: Do you convince yourself your trades are going to be winners? Do you look for confirmation signals that you don’t need to worry, when your trades move against you? Are you scared your ego will be hurt from taking losses? Are you only looking at a few markets because you’re scared to branch into international markets? Are you feeling old to the point you don’t have time to make slow money as a trader? Find your vulnerabilities, then look for solutions or research on how to improve them. Treat the market with respect and you’ll find the answers you need to win. Final words: Trading is not a race – work on your own time line. Trading might sound like an easy hobby, and it is. But you first need to overcome your demons in order to streamline the process. I tell you this because… You need to be humble as a trader, or the markets will humble you!
JSE:J200Education
by Timonrosso
1
10,000 Hours to Master Trading?Welcome to another Trading Myth Buster’s episode. This is where I take the old adages and see if we can bust them or not. Today’s adage goes to… “You need 10,000 hours to master something”. Let’s first break this up into how many days this will take. If you practise an art of something for 30 minutes a day… 10,000 hours equates to 300,000 minutes. We then divide that by 30 minutes and of course we get 10,000 days. Divide that by 365, and here’s how long it will take you to master something… Drum roll… 27 years! However, most professionals practise 8 to 10 hours a day – hence them being able to master the art in a short time. This is definitely plausible if you want to be a professional ballet dancer, golfer, cricketer, rugby player and even a chess champion. But no ways in hell, should it take that long to learn how to trade. I am just the exception but it’s because of what was available when I started… So please bear with me, on this side note… In 2003, when I started, it took me 10s of thousands of hours and years and years, to learn how to be a successful trader. This is because of a number of reasons: I spent two years studying both technical and fundamental analysis Each year I learnt and adapted a new trading strategy I back-tested and forward tested countless systems I had no one to show me the way I made unnecessary and timely mistakes Charting platforms and education were extremely limited I traded from morning up until 4am trading different markets I went back to the drawing board trying to find what works, year in and year out I entered into limbo mode for three years living in doubt and thinking trading was a scam So as you can see, I wasted thousands of hours of finding out HOW NOT TO TRADE… Made countless mistakes and wasted a ton of money – without having someone to direct me. But I pushed through it all and eventually found my feet one day. And so, yes it took me a lot longer than what it should have. So how many hours do you need to learn HOW TO TRADE? If a trader follows a path of a successful trader and method, it should not take more than 10 months to get their feet off the ground. Here’s how I calculated this time for learning to trade: #: 1 Month – Learn the basics to advanced theory #: 1 Week – Adapt and learn a proven and trusted trading strategy #: 1 Week – Back-test and journal 20 trades with different markets #: 4 Months – Forward test 20 trades with the proven strategy using a demo-account #: 4 Months – Real test 20 trades using a proven trading strategy with a LIVE (real money) account Here’s how to follow the foot-steps of successful traders The above is how to master the art of trading on your own… But having said that, you’ll still most definitely need to learn the mechanics of: How to trade CFDs How to take a trade How to adapt money management rules How to develop the mind of a successful trader This is a subjective and introspection journey that you need to run your own marathon. Take your time, go with your own energy and day by day you'll get closer to achieving your trading goals. And the more you do it, the quicker and more effortless it will become.
JSE:J200Education
by Timonrosso
How to be a LASER Trader!Rinse and repeat. That’s it… It’s one simple little acronym you’ll never forget… Ready? LASER your TRADES 1: Look The first thing you’ll need to do, is to go through your watchlist very quickly. A watch list is a list of markets you’ll LOOK through when finding trades. These markets can range from anything including shares, indices, commodities, currencies and crypto-currencies. When you have your watch list, you’ll go through the list and get a feel for how the markets have moved for the day. Example: Before I trade anything, I LOOK at the JSE All Share 40 stocks that are in my watch list. I then run through them briefly to see how the markets are performing. 2: Analyse The second round of going through your watch list, is where you’ll look for specific trading setups. Whether you trade using price action, patterns, indicators, volume etc… This is where you’ll ANALYSE the charts individually. Also with this step you’ll write down potential trades that are lining up. 3: Setup The third step is to go back to the markets that you’ve written down – which you’re looking to trade. You’ll then do your simple trading calculations and place your chart SETUPS so you can see where your trading levels are. EXAMPLE: If I see a trade that’s lined up, I’ll draw horizontal levels showing where my entry, Stop loss (risk) and take profit (reward) levels are… I like to use: Blue for entry Red for stop loss Green for take profit 4: Execute You’re ready to JUST TAKE THE TRADE! And then you’ll place your entry, stop loss and take profit levels. You’ll choose how many CFDs you’ll need to buy according to your money management rules. And then hit trade! 5: Record As soon as you’ve successfully taken the trade, head over to your journal (excel document) and record your trade transaction. That’s how to be a LASER Trader… And on a daily or weekly basis, you’ll repeat those steps…
JSE:J200Education
by Timonrosso
5 Reasons why others trade VS why I tradeIn the last 20 years, I always love asking this one question. “Why do you want to trade?” Have you ever written down the reasons why you want to become a trader and what your true motivations are? When you answer this question, only then you’ll become more clear with the goals you wish to achieve and how to achieve them. Here’s one clichéd answer, I don’t want you to write down… “I want to make money”. This answer is lazy, impersonal and it tells you and me nothing about who you are truly, deeply and emotionally. If you think trading only teaches you one aspect of your life… I believe your eyes are still yet to be opened with the incredible possibilities that trading will bring you. And so, in this article I’m going to share a few reasons for why people want to trade. And then, I’ll share a few reasons why I trade… Here are 5 reasons why people want to trade… Reason #1: Diversification “I want to diverse my portfolio with different asset classes. This way I can produce a stream of income through long-term investing via stocks and property, short term trading with Premium MATI Trader and medium term investing through index ETFs.” Reason #2: Hobby “I have spare time and money. And what better way than to spend my time trading and making an extra income while doing something I love?” Reason #3: Monetizing my ‘down-time’ “I’ve earned the same income for the last seven years and now I want to earn an extra income during my off-hours too. For the first time in my life, trading has helped me make money while I’m watching Netflix and spending time with my wife”. Reason #4: Invest for my family and kids “Most people depend on portfolio managers and hedge funds to invest their money for their family. I’ve decided to trade the funds I have for my kids instead and take control of the growth of their inheritance through trading.” Reason #5: Keeps me sharp and well-informed “Trading might not be making me super rich yet, but I got to tell you this. It is keeping my brain sharp, well-informed and helps with my skills with decision making.” These are some of the reasons I’ve heard, which have stuck. Now I want to share with you five extra reasons why I trade… 5 Reasons why I trade! My reason #1: FREEDOM – Earn your own income when you want I want the freedom to trade and build an income stream on my own terms, times and conditions. My reason #2: Independence – Be your own boss Trading gives me the platform where I am responsible for my own trading results. This gives me full independence where I take pride with my own financial decisions. It gives me the place where I can grow my portfolio in a way that suits my personality and risk profile to a T. My reason #3: Extremely fun – New career Trading is not a job… This means, you don’t have to do it… But rather it’s an extremely productive and fun hobby to make your free time work for you. This hobby is not like sports or gym where your reward is more on the physical side. Trading is where you gain many different mental skills and bank a consistent income once you get it right. My reason #4: Mind control – Control your emotions Trading well means you have to lose at times. and when you do, you need to be able to cut out the ego and ‘baby tantrum throwing side’ away. You learn to grow up, develop a thicker skin and become a mature trader. This is one of the greatest benefits to learning to trade. It gets to the point where, after you’ve taken hundreds of trades, whether you take a loss or bank a profit, you’ll stay content. You embrace failure with open arms, because you know that it’s one step towards winning. My reason #5: Life skills – You learn risk, rewards and probabilities Once you have mastered the four elements to trading success (Markets, Methods, Money and Mind) you develop a very strong understanding of concepts like: Risk & reward management and probabilities. This won’t only apply to trading but to almost every aspect in your life. You start taking accountability of events into your life. Predictions turn into probabilities. Risk evolves into calculated acceptance. And you start to see things as they are, rather than what you want them to be… SO WHY DO YOU WANT TO TRADE?
JSE:J200Education
by Timonrosso
1
20 Checklist Items in 2023 for YOUR TradingI wish you all the health and happiness, this year has to offer. To kick you off this year on a strong note, I’ve prepared a quick 20 item checklist which you can use for your trading. Save this as a guide for 2023. Let’s go… 1. Save and deposit a portion of your money every month, into your trading account to grow it faster. 2. Cut down on social media and save 15 minutes of no distractions a day to trade. 3. Re-look and evaluate your watchlist, which fits your strategy. 4. Don’t let the news, your friends or anyone interfere with your trading signals. 5. Never extend your stop loss in a trade where you can lose more money. 6. Be more mindful and accept when market trends change. 7. Never miss a trading idea that lines up according to your strategy 8. Celebrate taking each trade that lines up according to your proven strategy. 9. Ask trading questions so you’re never left in wonder. 10. Journal and jot down every trade that comes your way to build your trading track record. 11. Screenshot and save every trading setup, to remind you on how your strategy works live. 12. Find the best time that suits your trading personality and system. 13. Stop overthinking everything, once you’re in your trade. Let it be. 14. Watch every reputable trading stream and lesson on TradingView you can, to boost your knowledge. 15. Don’t fall for scams, get-rich-quick schemes and sensationalised marketing copy or posts on social media. 16. Trust and enjoy the process, week by week. 17. Persist and persevere through your own trading time-line and don’t compare yourself to others. 18. Only take trades when your trading strategy gives you signals 19. Only do what you love and love what you do – don’t waste your time on anything else. 20. Remember to say this when you’re feeling down. “YOU CAN ONLY GET BETTER”. I trust these resolutions will help you through the year.
JSE:J200Education
by Timonrosso
3 Awkward Stages for a Trader!There are three awkward stages that every successful trader will go through. You can’t escape them. And let me warn you. The more successful you become the more awkward the stages get. Let’s get to them. AWKWARD STAGE 1: You are ridiculed First when you start out as a trader, you get nothing but doubt from everyone around you. You hear things like “It’s a scam” “You’ll blow your account” “You won’t last long” “Get a real career” This stage is purely based on one reason. Those who doubt you are either not traders and are clueless or they failed themselves and are now basing their failure on others. This can be quite demoralizing for you when you just get started. Also this is the starting stage where you’re trying to find your feet. I’d suggest you go where you are appreciated, rather than tolerated and ridiculed. Find a community of members that are starting out and a group that have been through the trial and error and are now succeeding. Once you’ve passed the ridicule stage, it doesn’t get any better just yet. AWKWARD STAGE 2: You are attacked This to me is the worst stage. Because as you’re finding your trading personality and risk profile, other traders get all up in your business. They tell you how wrong you are. They tell you how you’re not making any money and worse they gang up on you. I remember in 2009, I was doing ok as a trader. I joined a couple of groups on Skype and Facebook. And when I were to buy a trade (based on my strategy), the rest of the members attacked me by saying how wrong I was and that I’m going to lose all my money. And I just felt out of place by being called the contrarian of the group. I never attacked their analyses, I never tried to bring them down and I never interfered with their trading. I was then kicked out of many of these groups and was referred to as an emotionless robot. This once again left me as the loner trader with no community to relate to. Don’t worry about these people. Most of them have blown their accounts by now and still don’t know how to trade. Keep going and just keep trading. You’re doing well and don’t need this negativity. And then you’ll enter another awkward stage once you’ve progressed as a trader. AWKWARD STAGE 3: You are ignored Yep… You can make a living as a trader for over a decade. You can be at the maturity phase of your trading. You can be a multi-millionaire. But you’re still going to be ignored, by a number of groups. First, you’ll be ignored by pretty much all of the people who attacked you in the second stage. Second, you’ll be ignored by the egotistical traders just starting out and think they know better. Third, you’ll be ignored by nearly ALL of the trading companies that sell the false dream of making millions as a Forex trader. I’ve learnt that everyone wants you to do well, but not better than them. And I feel very sad for humanity, who think like this. I celebrate all traders who mean well, whether they are new to trading without any money saved up or are multi-millionaires. I even celebrate those who are much wealthier than I am... Because we are all on our own trading journey to success and time. Don’t worry about others, just focus on you!
JSE:J200Education
by Timonrosso
How do you calculate Bitcoin's Market Capitalisation?It’s quite similar to calculating the market cap of a share. To calculate the market capitalization of a cryptocurrency, you need to know two things: 1. The current market price of the cryptocurrency 2. The total number of coins or tokens that have been issued. Then all you do is multiply the market price and the total number of coins or tokens. Let’s calculate the market cap of Bitcoin… The current market price for bitcoin is $16,939 and the current number of tokens in circulation are 19,255,318. To calculate the market capitalization of Bitcoin, you would multiply the market price by the total supply. Bitcoin market cap = $16,939 X 19,255,318 = $329,021,194,902 You can go on Google and type in what the price of a Crypto coin is and then what the number of tokens are in circulation. Then multiply the two and you’ll have the market cap. If you have a trading question, ask in the comments. Trade well, live free, Timon MATI Trader (Trader since 2003)
OANDA:BTCUSDEducation
by Timonrosso
3 Amazing Lessons I learnt from McDonaldsI love McDonalds. There was a time where I was ranking different burgers from around the world. UK, France, South Africa, Dubai, America, Switzerland and Greece. And I only ranked about 4 burgers an 8 out of 10. I know you’re going to hate but… McDonalds Big Mc remains one of them I ranked 8 out of 10 – Delicious!. Anyway, so I love the burger, I love the story – if you’ve seen “The Founder” movie. And I love the lessons learned from the success story. And since 2013, I always enjoy writing articles on how other companies, entities and even individuals can teach you indirectly about trading. McDonalds is the one in the spot light for today! 3 lessons I learnt from McDonalds! The fast-food giant has been able to achieve massive success by keeping things simple, sticking to a proven system, and adapting to changes in the market. These same principles can be applied to trading the financial Lesson #1: Less is more… The company has built its success on a relatively small menu of simple, easy-to-understand options. Also the way to make the meals are so simple with easy ingredients you probably have at home. Well, traders can achieve better results by focusing on: • Small number of markets or securities • One or two systems • One or two time frames • One to three money management rules • Less time trading and more time holding Lesson #2: Find a System to Repeat The company has built a highly efficient and repeatable system for making and delivering food. Remember the scene in the movie “The Founder” where Ray Croc organised his system within a tennis court until mastered? It’s simple, it works – and it’s never died out. This has allowed them to replicate their success across thousands of locations worldwide. With trading, you should also look for a system that you can repeat and stick with it. I mean, by now my MATI Trader System – must feel like child’s play to you because of how I have taught you the system in and out. And I have shared with you hundreds of trade line ups already with Trading View. And with you seeing it the system everyday, it must feel second nature for spotting a trade by now right? Well, just like Rocket Science isn’t rocket science to a rocket scientist – That’s why you feel that way about my MATI Trader System… And if you have a system that you swear by, you’ll feel the same way I do. This can help you to avoid the pitfall of constantly switching strategies and missing out on long-term gains. Lesson #3: Adapt to Change McDonald's has also been able to adapt to changes in the market, such as: • Environment concerns • Consumer demand for healthier options • Relevant and trendy toys in Happy Meals • New neutral colour style restaurant catering to all nations and cultures around the world • More options for vegans and vegetarians They have and has been able to stay relevant and successful for decades. Similarly, traders need to be able to adapt to changes in the markets, whether it: Adding new markets to your watchlist Adjusting your Risk to Reward during favourable and unfavourable environments Shifts in economic conditions or changes in consumer preferences. This might mean adjusting your trading strategy slightly or seeking out new opportunities in different markets. You need to be able to adapt to change which is crucial for long-term success in the financial markets. And so, McDonald's has been successful by keeping things simple, sticking to a repeatable system, and adapting to change. Apply these principles to your own trading and you’ll find trading to be a walk in the park in the medium to long run… Do you like McDonalds and what would you rate the Big Mc? I won’t judge. Trade well, live free. Timon MATI Trader (Financial trader since 2003)
NYSE:MCDEducation
by Timonrosso
Success is a self-introspection journey!You and I both know that financial trading the markets is an exciting and most definitely a lucrative venture for those who actually take the time and energy to get it right and trade well. But! Big But... If you want to become a successful trader, it's not just about analyzing market trends and making informed decisions – it is also about self-introspection and personal growth. This journey is one big self-discovery. And you'll find it's not only beneficial to trading but with life, love, work and even your true identity. Aas traders must know our own motivations, behaviors, and beliefs in order to truly excel. This means taking an honest look at our strengths and weaknesses, and being willing to make the necessary changes to become a more disciplined and effective trader. Do this and you WILL develop a strong sense of self-awareness in order to make better decisions under pressure. Trade well, live free. I'm off to bed. Timon MATI Trader (Financial trader since 2003)
JSE:J200Education
by Timonrosso
1
11 Industries Blockchain will Rule the WorldBlockchain is the one technology that allows people to create unique, specific products, programmes and services online. Instead of downloading a programme, app or making a transaction on a regulated centralized system like Android or IOS, you’ll use a decentralized system to do everything you currently do with the internet. These ideas on how blockchain will disrupt industries will blow your mind. #1: Voting Blockchain and online voting may one day be the main platform where everyone can take part. Think about it. No more standing in a line, casting votes to a local authority in the hopes that your vote will be counted. Having a decentralised system for voting can result in: • No voter manipulation and fraud • One vote per identity • No external influence • Full transparency • Results within seconds • No foul play Once a vote is added to the ledger, it cannot be tampered with, removed or duplicated. And so having a blockchain-based-online voting platform, where everything is updated, in real time and with full transparency – could soon be a reality for elections… #2: Stock market trading & investing Blockchain could one day take over trading institutions and the financial industry as we know it. There will be no more use for brokers and market makers, as everything will be electronic. Investors and traders will choose the blockchain path to: Take control of their own portfolio 24/7 Extra security and privacy which cannot be accessed by anyone Facilitate trades without any costs, commissions or fees Result in much faster and more efficient transactions Improve liquidity and volume with financial markets Reduce fraud and manipulation Trade 24/7 markets including Forex, stocks, indices and cryptos Speed up deposits and withdraws within seconds Rely less on third parties #3: Social media and internet Imagine a Facebook, Tik Tok, YouTube, Instagram or even Twitter that nobody owns. With blockchain and dApps (Decentralised Apps), they would be completely immune to attempts to manipulate, regulate, spy or even shut them down. #4: Buying assets, goods and services Anything of value that can be tracked, traded and recorded on a blockchain network, will allow transactions in one form or another. In fact, we already have individuals and institutions that are buying, selling and exchanging crypto-currencies (i.e. Bitcoin) for tangible products such as vehicles, property, investments and other assets. An asset can also be intangible such as patents, royalties, intellectual property, copy rights and branding. Also, there are blockchain advantages including: • Lower costs • Less risk and danger • Guaranteed transactions • Accurate evaluations #5: Currencies As you’ve seen, crypto-currencies and forms of exchange – can be created and exchanged simply from the digital ether. The decentralised crypto-currencies will continue to provide a form of exchange for products and services as an alternative to general currencies. #6: Music, books and movies Since the days of Napster, Kazaa and Limewire, entertainment companies have tried everything to prevent piracy from wiping out their revenue. Just a few years later, and a single copy of a song, movie or programme could be distributed around the world within seconds. Blockchain and smart contracts technology could create a decentralised and accurate database of rights of ownership. It could also put an end to piracy and other forms of un-authorised copyrighting. The blockchain transaction will be made in a secure and transparent manner in a way the royalties will be distributed to the owner in a fair and an instant payment process. #7: Banking Blockchain will disrupt the entire banking system. By having a decentralised banking network, we won’t have to worry about a bank crisis ever again. The reasons for a blockchain banking system include: Lower transfer fees Less costs and taxes Instant processing time High security No third party Quick overseas transfers Never go offline or off the system Just so you know, all of your banking transactions take place in a digital online wallet. A wallet is the place (programme) where you can store and make transactions. When you have access to your wallet you get two keys. A private and a public key. The private key is a special digital idea or a code of numbers and letters, given to each user that links to their account. This is the code to access and take control of your account where you can transfer funds out of it. A private key is like having a credit card with your credit card number, expiration date and security code. With this information, you can spend as much funds as you like. That’s why you should never share this private key and never lose your private key. The public key is the code (numbers and letters) that is fully available to the public. A simple analogy of a public key is having someone’s bank account number. Anyone with this number can technically send money into your account. NOTE: The public key is known to the public. If you lose your public key, you can find it again with your private key. Just remember to never lose your private key. So with blockchain banking you can imagine how being able to deposit, withdraw, exchange and transfer money, will make things extremely efficient and secure – Don’t you think? #8: Games The next streamed and online game, may be through a decentralised operation – also known as Crypto-gaming. This will allow gamers, programmers and other entities to improve and build on the game to enhance the experience for all users. By having an source place for gaming there’ll be opportunities to: • Build on continuously and expand the game • Create social network of like-minded gamers • Have more stable, secure and transparent operation • Not have to worry about crashes, manipulation and shutdowns • Offer financial benefits for gamers i.e. customising and selling digital collectibles, art or created virtual worlds. #9: Crowd funding Crowd funding has become the new alternative to traditional venture capital, bank funding and self funding. The issues in the past have been where the banks require an existing business with good revenue, venture capitalists need proof that the business is a success and the costs are exorbitant. Soon there’ll be an era where blockchain will take over all three forms of funding. Blockchain will facilitate crowd funding when it comes to funding for projects, businesses, charities and other causes. The beauty about blockchain crowdfunding is that there’ll be: • Enforced funding terms • Instant money returns if the criteria is not met • Lower transaction costs • No middleman • Decentralised platform • Automatic actions according to the criteria stated • Better funding for ICOs (Initial Coin Offerings) And once the terms or funding is met and the transaction is a success – the money will be automatically distributed to the cause without any human error. #10: Health care Blockchain technology will one day be able to keep personal medical file information private and safer that with a central authority. You’ll finally be able to access your medical information with a click of a button and distribute it only to those you trust. With blockchain, healthcare will benefit in ways that you’ll be able to access: • Medical information which can’t be tempered, hacked or removed • Pharmaceutical companies will have a record of past, present and future prescription medicines to collect and deliver to • A list of personal health records of diagnoses, illnesses and private health information • Revolutionise insurance claims and reduce fraud and adjust quotes for members according to their current health situation #11: Supply chain management Blockchain technology will stream line the supply chain for businesses and drop shipping. Every step from requesting a transaction to having a product or service delivered to the customer can be traced, recorded and monitored. The most important element for supply chain management with blockchain is the transparency and validation that occurs between the transactions performed and shared between the suppliers. This includes transactions made through: • Importing & exporting • Shipment • Trade • Drop shipping • Commercial industries • Farming & supplying food Blockchain can replace the traditional supply methods for centralised authorities. The future lies with Blockchain technology I hope I have shared just a little bit of light and stretched your mind ever so slightly on what the future may bring. There is an evolution of the people wanting to take control, improve transparency, cut out the middleman and streamline the process in ways of greater efficiency. One day – this will be our new normal. Trade well, live free. Timon MATI Trader (Financial trader since 2003). If you enjoyed this article let me know, so I can write more around it...
Education
by Timonrosso
24 Hour Trading Stocks Around the Clocks!Doesn’t it feel almost inevitable? That in the near future we’ll be able to trade shares 24 hours a day, five days a week? Well, during the last week, I’ve been wondering what the future of trading will look like and what we need to prepare for. In this article, we’ll go through the practicalities of trading 24hour markets and what you may need to prepare for. 24 Hour markets available today Right now, there are more markets available to trade 24 hours a day than ever before including: • Forex • Commodities • Crypto-currencies • Exchange-Traded-Funds • Indices I guess the important question to ask is… Will it make a big difference if the world opened up to trading stocks 24 hours a day? Could it be the end of stock traded sessions? Currently, the trading sessions for shares are restricted to the hours the exchanges are opened. This is normally from 9:00am until 5:00pm. There are two historical reasons for having stock traded sessions: Maintain liquidity and timing for efficiency during operating hours. But what would happen if stocks never closed their trading times? Think about it… We’d have hundreds of thousands of stocks open to the public to trade at your disposal whenever you desire… We’ll need to address the pros and cons of how this would work… GOOD & BAD reasons for trading stocks around the clock Let’s start with the BAD. BAD #1: Less trading – Small price moves We could see thin volume of buying and selling taking place for each stock, as there’ll be little demand when people are off work or asleep. BAD #2: Higher price manipulation With the low trading volume, this can incite shady investors and traders to manipulate the share prices, causing major sudden price fluctuations So with low demand and movements for stock trading around the clock – right now, it just doesn’t seem to be practical having 24/5 stock trading sessions. But right now – does not mean it will always be like this in the future. Here are the GOOD reasons for a 24 hour trading stocks around the clock. GOOD #1: Higher employment numbers Most companies, will need to employ more brokers and dealers – for after hours – until they incorporate robo-advisors… GOOD #2: No more open price gaps The unexpected sudden price gaps on stocks will almost be eliminated. You won’t have to wake up to a nasty surprise seeing the market jump your stop loss overnight again. GOOD #3: Follow international events We will be able to base stock trading decisions and prices on any news event, earnings and ratings that comes out internationally. GOOD #4: New stream of investors This will attract many new investors and traders to trade stocks from other countries which will help companies share liquidity. Why we could see trading stocks around the clock in the future We are seeing a major rise in the number of investors and traders. Trading has never: • Been more affordable • Been easier to learn. • Been more accessible (with just a smart phone). • Shown such superior customer services. And we definitely have the technological structure and networks, to support around the clock trading for all markets. And when it comes to stocks. Well, with the increase in adoption of new technologies, and improvements with off-market liquidity – we will very well see stocks trading around the clock. And now you know what to prepare for… Trade well, live free. Timon MATI Trader (Est. 2003)
JSE:J200Education
by Timonrosso
5 Habits of Successful TradingGet a pen and paper and write these five habits down. Each habit you have, write down a 1 and each habit you don’t have write a 0. Sum up the points at the end and you’ll know where you are, what you have to do to improve and whether you have the trading edge to be successful. HABIT #1: Courage You need the courage to follow these basic steps. #1: Open a trading account #2: Deposit money in your trading account #3: Adopt a trading strategy #4: Take the trades that line up #5: Follow your strategy (with the winners and losers) Have the courage to do that today or have done it? Mark 1 for YES Mark 0 if you’re not ready… HABIT #2: Persistence I’ve said this before… Trading is a forever business… It’s easy once you get it right. The hard part after a while is keeping persistent. Do you have the PERSISTENCE to: #1: Trade for a few minutes every week? #2: Look for trading setups? #3: Follow a proven trading strategy without changing the rules? #4: Not give up on a trading strategy after a losing streak? #5: Not go against a strategy after during a winning streak? Mark 1 for YES Mark 0 if you’re not ready… HABIT #3: Save Money Look. The more money you have in your trading account, the faster it will grow. If you think R5,000 or R10,000 is all you need to retire in a few years – it’s time to wake up! Every month, I deposit around 5% -10% of my savings into trading… Now I know not everyone can deposit such a large portion of their savings in trading as they have other capital allocations to their portfolio… Well, what ever you can deposit per month comfortably is better than nothing. This will help you to grow your trading account at a faster rate. Mark 1 for YES – I have the habit to save money per month. Mark 0 if you’re not ready… HABIT #4: Evolve The markets are constantly going through change. In just a span of 20 years there have been a multitude of trading instruments. For example: Shares – warrants – Futures – Binary Options – ETFs and CFDs. We’ve also seen a plethora of different markets including Equities – Indices – commodities – currencies and Crypto-currencies And as a trader, it’s our job to keep learning and evolving with the markets… Do you have the habit to adapt to change and learn throughout your trading career? Mark 1 Not ready for change? Mark 0 Habit #5: INDEPENDENCE Once you have everything you need to succeed as a trader, it’s all on you. You should not have anyone to hold your hand, influence your decisions or tell you what to do. When you are sitting by your laptop or device – No one should be able to change your mind including from: • Friends • Family • Mentors • Your conscience • Bloomberg • Spouse and kids If you think you have a good level of independence, mark 1. If you’re not ready for being independent mark 0. Final Thoughts The points where you marked 1 – Great keep at it and remember your strengths… The points where you marked 0 – It’s ok… Every successful trader started with doubts and weaknesses. Trade well, live free. Timon Rossolimos MATI Trader
JSE:J200Education
by Timonrosso
Russell 2000 Index - EXPLAINED - What, Why, Where, How?Small cap stocks, Penny stocks and pink sheets are the high adrenaline stocks investors play games in. They are generally the cheaper, highly volatile, some are illiquid and can fluctuate 50% - 1,000% a day. From the Wolf of Wallstreet glamorizing the potential returns for investors to your every day salesman broker trying to sell you the next winner. But what is the Russell 2000 Index and what should we know about it? I’m going to sum it up a bit of information about how it works and important facts you need to know Enjoy! WHAT IS IT? The Russell 2000 Index (listed in 1984) is a stock market index that tracks the performance of small-cap publicly traded companies in the United States. It is named after the Russell Investment Group, which operates the index. The share price can vary significantly, as it is made up of a diverse range of small-cap publicly traded companies. MARKET CAP Small-cap stocks are generally ones with a market capitalization of between: $50 million and $2 billion. CRITERIA TO LIST STOCKS There are a few criteria that needs to be met to qualify for the inclusion in the Russell 2000 Index: • The company must be a publicly traded U.S. company. • It must market capitalization of at least $50 million. • Must be ranked in the bottom 2,000 of the Russell 3000 Index, based on market capitalization. • Must meet certain liquidity requirements, including having a minimum average daily trading volume of at least 250 shares over the previous six months. • Must have a minimum of one year of trading history. WHAT IT CONSISTS OF The index is made up of the smallest 2,000 publicly traded companies in the Russell 3000 Index, which represents approximately 98% of the total market capitalization of all publicly traded companies in the United States. HOW IT OPERATES The index is reconstituted annually, with new companies added and removed based on their market capitalization and other factors. VOLATILITY & LIQUIDITY The Russell 2000 Index has a high level of volatility (greater price swings) and low liquidity (ease of flow of orders) compared to other large cap stocks. DANGERS WITH THE INDEX Currency risk: When the US dollar drops the index can follow Diversification: There is no sector for the stocks. When the index drops the stocks follow. Liquidity: You might find difficulties finding buyers or sellers to ease in or out of your positions. Volatility: The jumpiness in the market is highly erratic. Lack of analyst analysis: You’ll hardly see news coverage via the media which means, you could be left in the dark with what is going on in the companies. Liquidation risk: You have a higher chance at being in a company that is about to be liquidated due to financial issues, no growth, manipulation and cooking the books. Economic issues: When global economies collapse, stocks drop with it. Small cap stocks are no exceptions. This can affect the investment prospects .
TVC:RUTEducation
by Timonrosso
EXPLAINED: Short Selling in 3 ways and with an exampleWhat is Short Selling? This is where you sell (go short) an underlying market at a high price, anticipate a drop in price where you’ll buy it back at a lower price for a profit. How short selling works… To understand this concept, I’m going to break it down into three explanations. • One line • Step by Step • Visual Explanation #1: One line Short selling is the practice of selling a financial market (such as a share, crypto currency, index etc…) that you don’t own with the intention of buying the same market back later on at a lower price for a profit. Explanation #2: Step-by-Step 1. You sell a number of shares, which you don’t own, at a higher price. NOTE: You borrow the shares from a broker or lender. 2. After time passes, the market then comes down in price. 3. You then decide to buy back the shares and close your position for a profit. NOTE: When you buy the position back, you automatically return the borrowed shares to the broker/lender and pay them a fee. 4. You will pocket the difference between the price from where you sold the shares and the price where you bought them back. The Broker gets the shares back you get the profit – bada bing bada boom – DONE. Let me know what other term you would like explained. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
WARNING! This will reflect on your tradingThe world thrives on drama, gossip and most people just want it to end by the way they think.... I can't blame them because most people are struggling to live their lives where they are working from pay check to pay check. Where they are hoping their boss will give them a half day off. Where they are constantly feeding the fat cats of the world and paying taxes from their salaries. But then trading comes along, where you can have some degree of control of your finances and investments. Where you can risk what you wish and play the rules with growing a portfolio,... BUT if you bring in your emotional aggression and tendencies, it will reflect on your trading... Instead, you should work on yourself more. Don't be angry over unnecessary things Don't make a mountain out of a mole hill Don't risk anything you can't afford to lose Don't get angry over a small loss - you are in the trading den to make money NOT to be right Take 10 DEEP breaths in and out before you make any impulsive decisions or take any abrasive action. Focus on change and the whole world, your mind and your trading results will change with you... Let me know if this helps. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
1
9 SIGNS You're Trading Well! Trading well is a marathon and not a quick race. It doesn’t matter how much money you banked in a week, winners you took or how much money you have in your account. What does matter is one word “Persistence”. And with persistence comes, 10 signs that you’re doing well with trading. Let’s get to them… Sign #1: You have the passion to LEARN how to trade When you learn to trade, it’s not only a strategy game but also a self-introspection journey. You get to understand who you are as a trader in a way that you learn: • What time you wish to trade • What markets you’d like to look at • The instrument you want to buy/sell • The broker that best suits your needs If you have the passion to learn what fits your personality when trading, it’s a good sign you’ll do super… Sign #2: You have a solid daily trading routine There is no right or wrong way to go about your trading. Once again, it’s what you feel comfortable with on a daily or weekly basis. Maybe it is reading MATI Trader first thing in the morning, then going through your watchlist and seeing which trades are lining up. Afterwards you set your trading levels and take your trade. Whatever your trading routine is, make sure you have a checklist to follow. Sign #3: You have strict rules to follow Rules are the only way to find consistent opportunities within the chaos. I have three rules with trading. 1. Never risk more than 2% per trade (no matter the portfolio account). 2. Never risk any money you can’t afford to lose 3. Never hold more than 5 trades at any one time. If you have rules to follow, you’re doing well… Sign #4: You have tunnel vision There are no two traders that are the same. This means, when you know who you are, you’ll know to ONLY follow your rules, strategy and vibe. If someone tries to change your mind, put your blinkers on and remember the proven strategy you KNOW works. Don’t listen to others and don’t care about where other traders are in their career. Sign #5: You have a track record Whether you’re still demo-trading or live-trading, it doesn’t matter. All you need to make sure is that you have an excel sheet or written pad with all of your trades you have taken or backtested. This is will remind you and give you proof of what works and will make you a consistent income during your trading. Sign #6: You have the time to trade You’ll need to choose the time, that suits you best to analyse and trade the markets. It can be first thing in the morning, during your break in the afternoon or even 2am when you wake up and can’t go back to sleep. Sign #7: You can psychologically handle it Trading is mostly mindset. How you deal with your winners, losers and with your trading longevity. If you are prepared to mentally handle everything trading comes with – you’re well on your way to a bright trading future. Sign #8: You have a dream As much as trading is fun during the process, we all have a future idea on where trading will take us. Some want to travel around the world and not have to worry about budgeting. Others want to just spend their time during retirement keeping their brain active and seeing trading as a forever-challenge. Me, I love to trade, teach how to trade and create financial freedom for my future and for generations to come. What is your dream? Sign #9: You have your trading system The game-plan… Do you know where to enter, exit and place your risk levels every time? If so, GOOD. You have a trading system. This is all part of trading well. If you enjoyed this article feel free to LIKE and Follow for more daily trading tips articles. This is information I've gathered since 2003. Trade well, live free. Timon MATI Trader
NASDAQ:NDXEducation
by Timonrosso
7 SIGNS You're Trading Well So, you’re probably wondering how you’re doing as a trader. • Are you rich? • Is your portfolio shooting up? • How many winners did you bank this week? If you think those are the questions to ask – Then YOU’RE WRONG! As I’ve mentioned many times before. Trading well is a marathon and not a quick race. It doesn’t matter how much money you banked in a week, winners you took or how much money you have in your account. What does matter is one word “Persistence”. And with persistence comes, 10 signs that you’re doing well with trading. Let’s get to them… Sign #1: You have the passion to LEARN how to trade When you learn to trade, it’s not only a strategy game but also a self-introspection journey. You get to understand who you are as a trader in a way that you learn: • What time you wish to trade • What markets you’d like to look at • The instrument you want to buy/sell • The broker that best suits your needs If you have the passion to learn what fits your personality when trading, it’s a good sign you’ll do super… Sign #2: You have a solid daily trading routine There is no right or wrong way to go about your trading. Once again, it’s what you feel comfortable with on a daily or weekly basis. Maybe it is reading MATI Trader first thing in the morning, then going through your watchlist and seeing which trades are lining up. Afterwards you set your trading levels and take your trade. Whatever your trading routine is, make sure you have a checklist to follow. Sign #3: You have strict rules to follow Rules are the only way to find consistent opportunities within the chaos. I have three rules with trading. 1. Never risk more than 2% per trade (no matter the portfolio account). 2. Never risk any money you can’t afford to lose 3. Never hold more than 5 trades at any one time. If you have rules to follow, you’re doing well… Sign #4: You have tunnel vision There are no two traders that are the same. This means, when you know who you are, you’ll know to ONLY follow your rules, strategy and vibe. If someone tries to change your mind, put your blinkers on and remember the proven strategy you KNOW works. Don’t listen to others and don’t care about where other traders are in their career. Sign #5: You have a track record Whether you’re still demo-trading or live-trading, it doesn’t matter. All you need to make sure is that you have an excel sheet or written pad with all of your trades you have taken or backtested. This is will remind you and give you proof of what works and will make you a consistent income during your trading. Sign #6: You have the time to trade You’ll need to choose the time, that suits you best to analyse and trade the markets. It can be first thing in the morning, during your break in the afternoon or even 2am when you wake up and can’t go back to sleep. Sign #7: You can psychologically handle it Trading is mostly mindset. How you deal with your winners, losers and with your trading longevity. If you are prepared to mentally handle everything trading comes with – you’re well on your way to a bright trading future. This is all part of trading well. If you enjoyed this article feel free to LIKE and Follow for more daily trading tips articles. This is information I've gathered since 2003. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
1