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How to get your Trading DoneTrading is the easiest hardest way to become financially free. You need to follow a simple approach and then have the discipline to do it again and again for the rest of your life. It can at first be a daunting task because you have to implement an element of risk. But before you know it, you’ll be free from your financial shackles and struggle. Here are five tips to help you get your financial trading done efficiently and effectively. Step #1: Always have your cheat sheet with you. A cheat sheet is a list of rules that you have set for yourself when trading. These rules are from how to spot trading signals, getting your trading setup ready, to implementing the maximum amount of money you’re willing to risk on a trade to the indicators you look for when deciding on a trade. Always make sure you have your cheat sheet with you to have a clear set of rules to follow. This way you’ll avoid making impulsive decisions. Step #2: Look for the right trading setups with high probability trades. Before you enter a trade, it’s essential to look for the right trading setup. A trading setup is a specific combination of conditions that must be met before you enter a trade. For example, you may look for a bullish continuation or reversal price breakout strategy, combined with a moving average crossover and RSI divergence indicator. Once you have identified the right trading setup, you can then look for high probability trades within that setup. Step #3: Execute your trades or just take the trade. Once you have identified a high probability trade, it’s time to execute the trade. When executing a trade, it’s important to remember that the market can be unpredictable. You may have done everything right and still end up losing money on a trade. Therefore, it’s essential to take the trade, execute your plan, and move on to the next opportunity. Step #4: Journal your trades It’s essential to keep a record of all your trades, including the reasons why you entered and exited the trade. This can help you identify patterns in your trading and make adjustments to your strategy as needed. This way you can record, monitor and also identify areas where you can improve and re-evaluate your trading plan accordingly. Step #5: Rinse and repeat the process. Finally, once you have executed a trade, recorded it in your journal, and made any necessary adjustments to your trading plan, it’s time to rinse and repeat the process. Trading is a continuous process. There will always be new opportunities to explore and it’s ALWAYS the right time to start or continue. If you follow the above steps, you’ll increase your chances of success and make the most of your trading endeavours.
TVC:SA40Education
by Timonrosso
5 TIF Trading Orders You need to KnowQ. What are the 5 common TIF (Time In Force) Trading Orders to know? GTC: “Good Till Cancelled” Where the order remains active until you manually cancel it. FOK: “Fill or Kill” This type of order requires immediate execution of the entire order quantity. If the full amount is not executed, it is then cancelled. GTD: “Good Till Date” Where you can specify a specific date until which the order is valid. MIT: “Market if Touched” This order is triggered when the market price reaches a specified level (trigger price). It then becomes a market order and is executed at the best available price. LIT: “Limit if Touched” If a Limit if Touched order is triggered when the market price reaches a chosen or trigger price. GTC (Good Till Cancelled). This way you’ll know that your position (order) will stay in the market until you cancel it manually. What trading question do you have? Let me know in the comments. Can you think of anymore?
TVC:SA40Education
by Timonrosso
Revenge Trading is Catastrophic - Here's why!Do you feel it in your bones. Where do you want to: Take trades to make up for losses? Take trades for the sake of trading? Take trades out of emotions and gut (gat feel)? Take trades to make a quick buck? If so, you have felt the power and dangers of Revenge Trading. TO put it blunt. Revenge trading is detrimental, dangerous and just plain stupid for any traders to succumb to. I feel like I can finish the article already as I have said what I needed to. Not just yet! You need to understand why Revenge Trading is to your downfall. Let’s start with these: #1: Impulsive decisions are dangerous In the heat of the moment, you just want to take an impulsive trade. This can lead to disastrous outcomes. Revenge trading happens when you want to try recoup losses quickly. And so traders abandon their strategies, systems and rules. And they take on unwarranted risks. This will stop you from making good, calculated, logical and well-informed decisions based on sound reasoning and market research. Don’t do it! #2: Trading on emotions is deadly Emotions such as fear, greed, and frustration have no place in trading. Revenge trading is fueled by these emotions. And this causes traders to deviate and steer way from their plans by instead acting irrationally. What then? Bigger losses, unnecessary risks to the portfolio and skewed results on your trackrecord. Your hard earned and timely worked on journal! Is it worth it? I think not. Cut out your emotions and work at being calm and take on the more logical approach, devoid of emotional interference. #3: Violating trading rules is damaging Every trader should have a set of well-defined trading rules in place. Not just rules but also a list of criteria. Revenge trading typically involves disregarding these rules and just going against everything you should do. Basically, what the average dumb retail trader does which results in 98% of traders losing in this financial endeavour. Violate your rules and there will be severe consequences. Loss of confidence. Bigger losses More losses Erratic wins (which make you want to do it again and again and again) Not worth it. Don’t do it. #4: Too much unnecessary risk You know you’re using your hard earned cash to trade and build a portfolio right? So why are you burning it and cutting it up like it’s nothing? This reckless behavior can lead to bigger drawdowns and can even wipe out trading accounts entirely. Don’t do it! #5: Creates an ongoing cycle of doing it again Great! Once you have violated your rules, gone against your strategy and pretty much gone ape or rogue on trading – it takes a lot to gain ones integrity and discipline back. One of the most dangerous aspects of revenge trading is its cyclical nature. Break the rule, you’ll break it again. Cheat, you’ll cheat again. Enter a gambling mentality and you’re beeped. Bank a winning rogue trade and you’ll succumb to the trading world of discretionary action. However, if these subsequent trades result in further losses, the cycle repeats, trapping traders in a never-ending loop of revenge trading. Breaking free from this destructive pattern will then need a ton of discipline, self-awareness, and a commitment to sticking to one’s trading plan. So please be careful.
JSE:J200Education
by Timonrosso
16 Trading Mistakes you’re still MakingIf you’re still failing as a trader. You could be making one or more of these common and lethal mistakes. #1: No Structured Approach If you’re not following a structured approach to evaluate potential trades, you’re likely to make mistakes. It’s essential to have a well-defined plan that takes into account your personality, risk tolerance and trading goals. #2: You trade on Emotions Trading decisions should be based on facts and analysis, not emotions or hunches. If you’re relying solely on your gut feeling, you may miss important information and make poor trading decisions. Trust the chart not your heart. (I like that!) #3: Not researching each market per strategy Even if you have a trading strategy, you need to research, back test and forward test EACH market to see if they are conducive with your trading. For example. I have traded Forex since the get-go and yet the EUR/USD (Euro Versus US Dollar) is still the one currency that NEVER works for my system. This is the kind of research you should know, before you make a trade or risk a trade. Lack of research can lead to costly mistakes and missed opportunities. #4: No Specific Trade Setup It’s important to identify a specific trade setup before making a trade. You need to determine and pinpoint your exact entry and exit points, stop loss level, and price targets volume and margin requirements. #5: Not waiting for your high probability setup It’s important to wait for a clear trade trigger before making a trade. This way you’ll know what the right market, at the right time is and what you need to do to minimize your risk and maximise your profit potential. #6: Not putting in your stop loss When you trade you need to remember something. You need to set your stop loss to limit your losses. You need to set your stop loss to follow a plan. You need to set your stop loss to prevent an emotional reaction to your trading where you can take significant losses. Always, always always set a stop loss level with each trade and stick to it. #7: Setting a tight stop loss If you set your stop loss level too close to the entry price, it will increase your chance of getting stopped out. It’s important to set a stop loss level that considers market volatility and your risk tolerance. #8: No clear exit price target Yes, a stop loss is more important than a take profit price. But a take profit price is VERY important when it comes to following your Risk to Reward strategy. You need to set the take profits so you can calculate your potential gains, to lock in gains and to have a mechanical plan to follow in the future. #9: Forgetting your Reward-to-Risk Ratio If you ignore your risk to reward level rule with trading, you might as well give up trading. The key is to always make sure that your potential gains are more than your losses. If you ignore your risk to reward you will make poor trading decisions and your performance will not be stable and consistent. These are losing traits. #10: You forget the anomalies! There are times where you might need to exit out of a trade prematurely. There are other market conditions that are wile and can impact your trade negatively. Whether they are black swans, market announcements, threats, dangers, fat fingers or even news events. Don’t forget to consider the anomalies to reduce a catastrophe. #11: You buy however much you want on margin When you trade derivatives you need to remember. You will be exposed to more money than what you deposit. You can LOSE way more money that you anticipated if things don’t go your way. You need to seriously understand the risks involved with margin and gearing trading before you even commit to trading derivatives. #12: You don’t diversify Some traders ONLY trade one index or one currency or one commodity. I believe this is not very good for the future. There are times where these markets enter into a stagnant period for months upon months on end. You need to find a way to diversify and trade a few more markets, to make up for the dangers of idling markets. It’s important to diversify your portfolio and spread your risk across multiple markets. #13: You chase the next best penny thing Chasing ‘hot’ penny stocks or penny cryptos is lethal. You’ll end up emotionally involved in them and you’ll find every reason (fundamentally and technically) to hold on because they are going to the moon. Remember, you need to research the markets that work with your trading strategy over at least 5 years. Any other markets, are dangerous and can lead to you blowing your account. #14: Not Emotional control Not managing your emotions appropriately and making impulsive trading decisions can lead to poor outcomes. When you lose you’ll feel like it’s the end of the world. When you win, you’ll feel you have trading down and life. Problem is these uppers and downers with trading will have an effect in your life negatively and will end up with you making very emotionally driven and triggering trading decisions. Then POOF. All will be gone. It’s important to stay calm and focused when making trading decisions. #15: No Trading Journal What are you basing your success on? A strategy you don’t even have proof whether it works or not. If you are Not using a trading journal to track your trades and evaluate your strategy over time, it can lead to a losing performance, unnecessary losses, missed opportunities for improvement and will leave you blinded to your potential. It’s important to keep a record of your trades and evaluate your performance regularly. #16: Not Learning from Mistakes Trading is a forever learning journey. You need to learn from EVERY mistake you make and move on. If you don’t learn you’ll continue to have a poor performance. It’s important to evaluate your mistakes and make changes to improve your strategy. Maybe even document every trading mistake you make in your trading journal. This way you’ll reflect and work on them for the future. Was that helpful?
JSE:J200Education
by Timonrosso
8 Most Important Trading Levels of EntryThere are over 30 different elements you can add to your trading journal. But if you want to start off light and easier, then there are only a few KEY levels you’ll need to get into your trade and track them. 8 to be exact. These include: #1: Market (Stocks, Indices, Forex, Commodities, Crypto) What market are you trading? There are many different markets to choose from, including stocks, indices, forex, commodities, and crypto. Each of these markets has its own unique characteristics, including volatility, liquidity, and risk factors. When you specify what market you’re trading you’ll know which account to measure your portfolio. #2: Date of Entry This information will allow you to track your trades over time and evaluate the success of their strategies. Also, something not many people think about is when you’re profitable and in the money. It is also useful for tax purposes, as you might need to report your gains and losses to the relevant authorities. #3: Entry Price The entry price is the price at which a trader enters a trade. This information is critical for calculating potential profits and losses, as well as for setting stop loss and take profit levels. You’ll also know how the market is moving relative to their position and make certain adjustments to your trades (following your strategy) as needed. #4: Type Buy (Go long) or Sell (Go Short) The type of trade, whether it is a buy or a sell short, is important because it determines the direction of the trade. If a trader buys a security, they are betting that the price will go up, while a sell short trade is a bet that the price will go down. This information is important for setting stop loss and take profit levels, as well as for understanding the risk profile of the trade. #5: Stop Loss (Risk level) A stop loss is an order to close a trade if the price reaches a certain level. This is a key risk management tool that helps traders limit their losses in case the market moves against them. Also, it’s used to lock in profits when the trade is going in your favour. #6: Take Profit (Reward level) Take profit is the opposite of a stop loss. It is an order to close a trade when the price reaches a certain level of profit. This allows traders to lock in their gains and exit the trade at a predetermined level. #7: Margin (Initial deposit) Margin is the amount of money a trader needs to deposit in order to open a position. This is important because it determines the amount of leverage the trader is using and the potential risk exposure. By recording the margin requirements for each trade, you’ll be able to monitor your overall risk exposure and adjust your positions if needed. #8: Reason of Entry The reason for entering a trade is important because it helps traders evaluate the success of their strategy and make adjustments as needed. This depends on your trading strategy. Are you trading because of a breakout pattern, Moving Averages, Range bounded, Order blocks, Liquidity Sweeps, Volume Spread analyses or indicator analysis – you’ll be able to jot your entry reason for each trade. So if you’re new to trading or not worried about the extras when plotting in your journal. You now have the most important elements of a trading: Markets, the date of entry, entry price, type of trade, stop loss, take profit, margin, reason. Hope that helps.
JSE:J200Education
by Timonrosso
JSE ALSI Setting itself for upside? Maybe we don't sell in May?!JSE ALSI 40 - Cup and Handle seems to be forming on the ALSI 40, We need to wait for a breakout to the upside. Price >200MA RSI>50 Target 79,178 I prefer banking money when markets go up than down. So this might be the saviour for May with the JSE ALSI! SMC: We have a Sell Side LIquidity area below the new Handle. This is where Smart Money has come and swept through selling (Long traders stop losses) and (Short traders entries). They have bought into these orders, which is pushing the price up. Super bullish signs from the big boys.
JSE:J200Long
by Timonrosso
2
#Alsi - Index WeeklyIf you've been wondering why the #ALSI has been trading like a yo-yo in the last few sessions, one needs to zoom out and get a better picture of what's happening. We currently range bound in a consolidation that dates back to mid-April giving many short-term opportunities for traders. The last few weeks we have printed several 'spinning top' candles indicating the tug-o-war between the bulls & bears. This is likely to continue until the range indicated is broken with a weekly close above or below in which case one can expect a new leg/rally.
TVC:SA40
by Trader-Dan
4 EXTRAS to add to your Trading Journal TODAYI’m sure you know by now. That every successful trader needs a trading journal. This is an essential tool to track, monitor, evaluate, record, and measure your trading success. However, I’ve come up with 4 EXTRA Journal Items that you can add to your journal that could help improve your trading, win rate and overall performance. We can call these the “Trading Journal Extras.” Let me know if you think any of these will be helpful to add to your journal. EXTRA Journal Item #1: MY EMOTIONS Emotional State When Taking Trades Trading can be an emotional rollercoaster. When you lose, it feels like everything is out to get you. When you win, it can feel like you’ve nailed life in a bag and you can do this for the rest of your life. But what if you actually journaled your emotions? Every time you take a trade or you bank a loss or gain, document it in a section saying “EMOTIONS. This element to your Trading Journal can help you identify patterns in your emotional state that may impact your decision-making abilities in the future. You will also see who you are personally and how you emotionally handle trades. Watch it improve over time. For instance, if you find that you’re more likely to make impulsive trades when you’re feeling anxious or stressed, you can take steps to manage your emotions before taking trades. This can help you make better decisions and minimize the risks of impulsive trades. EXTRA Journal Item #2: MISTAKES LEARNED Mistakes Made and Lessons Learned As a trader, you’re bound to make mistakes, and it’s essential to learn from them. So why not write them down. Incorporate the mistakes you made in your Trading Journal. This way, it can help you avoid making the same errors in the future. For example, if you realize that you lost way more than 2% for a trade. Write down where you went wrong. Did you over capitalise? Did you extend your stop loss? Did you hold on longer than you should (which the costs added up)? Did you follow your strategy and risk management rules? Write down the mistake and you’ll have a better chance of avoiding it in the future. EXTRA Journal Item #3: NEWS REACTION Market Reaction to News Events You won’t find this in my journal. But I know many traders who trade using market fundamentals and news analyses. And if you’re a day trader, Forex trader or a high frequency trader – then this item might be imperative to your trading journal. The market’s reaction to news events can cause major whipsaws, fakeouts and shakeouts. You might find it interesting and educational track how the market behaves before and after a news release. E.g. NFP (Non Farm Payrolls). Unemployment numbers Interest and Inflation rates announcements Quantitative Easing Earnings Reports and so on… For instance, if you notice that the market reacts positively to news about a particular sector or asset, you can make an informed decision to invest in that asset or sector. Similarly, if you notice a trend of negative market reactions to news events, you can use that information to minimize your losses. EXTRA Journal Item #3: TRADING LESSON Trading Lessons and Strategies Finally, as a trader, you must keep learning and growing. If you learnt something about trading, WRITE it down in a journal entry. Adding a section in your Trading Journal called LESSON OF THE DAY. Then record the trading lesson/s and strategies you learnt which can jog back your member and it can help you improve your skills, application and knowledge. The FOUR extra Trading Journal Entries A Trading Journal with these EXTRA items can help you excel as a trader. Thins like emotional state to identify patterns, writing down mistakes to avoid repeating them, tracking market reactions to news events to inform decisions, and recording trading lessons and strategies to continuously learn and improve. So here’s a sum up of the FOUR EXTRAS that you can apply to your journal. MY EMOTIONS Document emotions every time you take a trade or bank a loss/gain MISTAKES LEARNED Write down mistakes made and where you went wrong in your Trading Journal NEWS REACTION Track the market’s behaviour before and after news releases TRADING LESSON Record lessons and strategies learnt that will help with your trading Let me know if this helps and which out of the FOUR you’ll add to your trading journal?
TVC:SA40Education
by Timonrosso
Maximise your trading success with market analysisWhen it comes to trading, one of the most important skills to develop is market analysis. When you know how to read the market and make informed decisions, it can be the difference between spotting high, medium and low probability trades. Here are some ideas to analyse the market and maximise your chance of success. Start with the Main Indices The first step in market analysis is to take a look at the main indices. These indices, such as the JSE ALSI, SP500, Nasdaq, FTSE100, and others, are a good indication of the overall market direction. Once you have seen the indices, you’ll get a sense of how the market is moving as a whole, and what kinds of opportunities might be available. Identify the major Trends Once you’ve looked at the main indices, it’s time to: Identify any market trends (Market environment) If the market is showing a strong uptrend (trend, momentum, moving averages analysis) Then it’s best to ONLY look for longs or buys. On the other hand, if your indicators suggest that the market has confirmed a downtrend, it’s best to look for sells or shorts. Look for Breakouts Sometimes the market doesn’t confirm an up or down trend. If you see the market is moving in a sideways manner, there’s still an opportunity to profit. In this case, it’s a good idea to write down the levels of breakouts you’d expect. If the market breaks up, you’ll expect longs, and if it breaks down, you’ll look for shorts. This way you’ll prepare for both outcomes And you’ll be able to capitalize on whichever direction the market takes. Final Thoughts Market analysis is a critical skill for any trader to master. When you start with the main indices, to identify trends, and looking for breakouts, you’ll be able to make informed decisions about your trades and get a good idea of where they’re more likely to head.
TVC:SA40Education
by Timonrosso
JSE ALSI setting itself for downside to 67,985 due to the bad RInverse Cup and Handle has formed on the JSE ALSI 40. We need the price to break below the brim level and all hell will break loose. MA 21>7 RSI < 50 Target 67,985 FUNDAMENTALS. The rand is majorly in trouble, R19.80 to the US Dollar and R23.90 to the pound. Is this because of load shedding. Is this because people are leaving the country due to the inefficiencies of the government. Is this because of the world markets coming down? Or is it a combination of all. Whatever it is, we are seeing downside to come.
JSE:J200Short
by Timonrosso
4 Ways to STOP Impulse TradingHow do I STOP Impulse Trading? Just a reminder. An impulse trader is one who makes quick, irrational decisions to take a trade (long or short) for some form of immediate satisfaction it may bring in the short run. Impulse trading might occasionally work. But it's risky and can damage your trading confidence and psychology in the long run. That’s because when you win, you’ll take more impulse trades that go against your strategy. But then the winning streak will end and the losing streak will come. And that’s where you’ll blow your portfolio eventually. So, to help you overcome impulse trading, I suggest these three solutions: Solution #1: Take a break When you feel the urge to make an impulsive trade, step away from your computer for an hour. Use the time to go cook a meal, go for a walk, or do something else that helps you relax. Then when you’re feeling more relaxed and in tune, you can come back to trade the markets with a refreshed, rational mindset to see what has or is lining up. Solution #2: Reflect on your trading history Review your trading track record. It is your game plan. It shows you the potential of what is to come. And it allows you to look at your past data and trend of your portfolio. Consider the gains and losses you've experienced and remind yourself of why it is super important to stick to your trading strategy. This alone should help you resist impulsive trades. Solution #3: Set specific conditions for impulse trading If you still struggle to control your impulsive trading instincts, then this might be the best idea. Open a separate trading account with disposable funds. This way, you can indulge and take your impulse trades without jeopardizing your primary trading strategy and account. Maybe it’s a R10,000 or even a R50,000 account. Or if you just want to trade for trading sake it, it might be a R5,000 account. Whatever it is. When you feel impulsive, trade using your impulse trading account. And then when it comes to your main account, you’ll be able to follow your specific trading strategy according to your track record. Remember, trading should be approached and seen like running a business, not like playing a slot machine. Keep this in mind, and this should help save your portfolio.
TVC:SA40Education
by Timonrosso
1
May the Fourth Be With You - And your Stop losses!Star Wars has been around since 1977 which was written and directed by George Lucas. During that time, there have been phenomenal quotes, lessons and adventures that have been shared. Instead of telling you different lessons Star Wars can teach you about trading. How about I share some quotes and how you can apply them? Here are the ones I find are the most applicable. #1: "I find your lack of faith disturbing." Use this as a reminder to stay confident in your trades, even when the market is unpredictable. Have faith in your strategy. Have faith in your commitment. Have faith in your strong mindset. #2: "Your focus determines your reality." Stay focused on your trading goals and strategy. It’s not about what others see. It’s not about what others feel. It’s about you in your own work station, planning, preparing and executing accordingly. #3: "Do or do not, there is no try." Commit fully to your trades, rather than hesitating or second-guessing. When it’s lined up, ACTION. When you see a trade setups, write them down and prepare for execution. Don’t try… DO! #4: "Fear is the path to the dark side." Stay level-headed and not let fear or panic drive your trading decisions. Fear doesn’t exist. Only danger does. We are fearful most times in our head when there is no apparent danger. Remember this when you feel fear. #5: "In my experience, there's no such thing as luck." Successful trading is based on skill, probabilities and strategy, not luck. #"6: The Force will be with you, always." Here’s a reminder that your skills and strategy will guide you through both good and bad trading times. In this case the force is your proven strategy, your will, your commitment and your strong mind. #7: "You must unlearn what you have learned." Be open-minded and flexible when it comes to adapting your trading strategy. We learn as sheeple to buy low sell high. While I have gone against the idea and instead BUY HIGH, SELL HIGHER. Also, when everyone buys, is normally where the Smart Money offloads theirs. And when retail dumb money sells, that’s where Smart money BUYS. Did you find these useful? Which one resonated the most with you?
TVC:SA40Education
by Timonrosso
13
RISK less with Drawdowns and more with 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.
TVC:SA40Education
by Timonrosso
Why YOU NEED a Slice of Humble PieAs 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.
TVC:SA40Education
by Timonrosso
1
Daily Bias - JSE ALSI 40 - BULLISHWe ended the week on an awful note with resources dropping over 4%, with gaps down and with sudden breakaway trends. Looking at the bigger picture of the ALSI 40, we still remain with Bullish Bias. 7>21>200 RSI>50 And we seem to be making a Falling Flag, which needs to break up. Also with SMC, it's early days but we have the first level of liquidity (Sell Side Liquidity) where hopefully Smart Money has come swept the sellers with Long traders stopped and Shorters (entered). Them sweeping the Sell Side Liquidity is buying into it pushing the price up. We remain with a buying side bias for the week.
JSE:J200Long
by Timonrosso
WHY YOU Don't always Receive INTEREST when you are short... Q. I thought that when you go short (sell) that we earn interest (swap fees) per day. But to my surprise I was actually charged interest on my open trade with AUD/NZD. Was I not meant to earn interest?” A. Unfortunately, it depends… With each market you trade, you’ll need to look at the symbol information for each trade you take. This also depends on the deal the broker has with each market. For example, when you SELL AUD/NZD you're essentially buying NZD/AUD (as they are currency pairs). So whether you go long or short, you don't earn interest with short (sell) currencies... But make sure, you always look at Symbol information and see what swaps are positive when you are short. With the AUD/NZD you can see you pay -3.35% per year. That means each day you hold, you’ll have to pay 0.009% per day. Then with some commodities and indices you’ll either earn interest or you’ll have to pay interest when you short (sell). For example, with gold you’ll receive an interest of 1.23% per year. Whereas with cotton you’ll pay 5.4% per year. With the UK 100 FTSE, you’ll pay an annual interest of -0.24%. And with the Dow Jones you’ll receive 0.74% per year. Then with local and international stocks, you’ll receive a certain % of interest (swap fees) per year. So make sure you always check to see what each swap (daily interest fee) entails. This obviously depends on the Market Maker you're using and if you're using Trading View make sure you see the information from your broker what the interest swaps (fees) are when you go long or short.
TVC:SA40Education
by Timonrosso
4 Ways to ACTION a trade - WHEN TO FIRE!You know that successful trading is… . . . . Patience. You need to wait for the setup, reason, system, lining etc… But then there is the 2% time where you actually ACTION a trade. We action a trade for three reasons. To enter To adjust To get out But we need to talk about these reasons more… Let’s do it., ACTION #1: Trade lines up – JUST TAKE THE TRADE! When your trading signal lines up with your entry, stop loss, take profit, and system: This is the most obvious time to take action. It tells you “HELLO AN OPPORTUNITY HS ARISEN” It is crucial to act quickly and decisively when this happens, as opportunities in the market can disappear just as quickly as they appear. ACTION #2: Adjust your levels – JUST CHANGE THE TRADE There are two levels you can adjust with your trades. Stop loss and Take profit. When the market is moving in your favour, and you have solid rules to move your stop loss in the favour. This is done to lock in minimum gains. For example. When my trade is 1:1 in the money, I might move my stop loss to just above breakeven. This way I have nothing to lose if it turns against me. Then when the market is shooting in your favour, you might want to adjust the take profit. This is because you can see the market wants to move further or… There is a new setup with a new take profit level in place – which happens often with my analyses. Action #3: Execute the time stop loss – JUST GET OUT When an extended period has taken place i.e. 35 days or 7 weeks. You might want to just get out of the boring trade. You are either : • Chowing (eating away at) unnecessary daily costs holding a non performing trade. • A trade setup seems null and void as a new contrary setup as formed. • Or it’s just a plain old opportunity cost where you can put your money in better places. it may be necessary to exit the trade in order to avoid incurring too much in daily fees or missing out on other better opportunities. Action #4: Exit due to unforeseen circumstances- SERIOUSLY JUST GET OUT! For example when a black swan event occurs: A black swan event is a term used to describe a market collapse (10X the standard deviationof its normal price move) that is unexpected and has a significant impact on the market. In the event of a black swan event, it is essential to exit your trade in order to protect your capital and avoid taking a bigger loss than you expected.
TVC:SA40Education
by Timonrosso