I am a business owner who doesnt know working hours, I work when I want and when I choose to, which is daily… I do love trading, but I put God first, then family, and then goes trading together with leading sporty life and enjoying my being around. I love and preserve my privacy. I am fortunate so much to share my life with a wonderful wife and one just amazing daughter, who is the apple of her fathers eye. I have been trading for several years, havent stopped having fun with it and I doubt I ever will. I discovered another joy in teaching others who are openminded and willing to listen. I dont mind telling you that I charge for my courses and email services first because I put a lot of my time with it and second because noone really appreciates anything for free. And I have no problem with my charging whatsoever.
Ok, lets talk about my trading habits and beliefs a bit;
I am a technical trader who keeps an eye on fundamental news. Typically a short term trading style with profit objectives and loss strategy set in advance on each trade. Taking the small loss quick and moving on, if profit target is hit on the daily number, thats great. If not, stay in a winning trade and exit a loser. All too often money is given back in the hopes of hitting the elusive homerun. I hate sleeping with a losing trade.
Just a general basic stuff, that is what works best for me. It is not a big secret that correct support and resistance is what makes me or breaks me. The general trend isnt a problem to pick, the problem for a small trader lies in knowing where to enter a market and how to minimize his/her risk. The risk/reward ratio has to be at least 1:2 or I wont take the trade.
Another trick is knowing when to take the profits and not give it all back. This is why I use a daily profit target most all the time. This way if it gets hit, great. Then if I still like the trade, I ll just put it back on, with a pullback or rally. Thing have to average out, when you are trading it is all about bucks, the rest is conversation…
I know I have a cocky, confident attitude. I expect to make money, otherwise I wouldnt trade. I will accept losses graciously in knowing that money management is most important and that all trades are certainly not winners. Once you learn how to trade and consistently make money there is no need to ever change your system, just simple add more contracts…
1. support and resistance are nuts and bolts… 2. I absolutely 100% believe in cutting losses short… this is essential and is what keeps you around. The name of the game is stay in the game. If your wrong, then your wrong, theres no harm there… The harm is staying in and watching the market move against you. Dont know how many times I have seen one single trade wipe a small trader out… also dont know how many times I have heard „I should have took profits“… 3. triple tops and bottoms get broken… 4. double tops and bottoms offer good support and resistance… 5. gaps on the daily get filled most of time… 6. be careful buying over bought markets and selling over sold market… 7. sell options when volatility is high, buy when low… 8. read #2 again… accept small losses quickly and with smile… the winner has the most small losses… 9. dont swing for the fence on each trade, there is a lot of good money between supp and res points, learn how to use em… 10. keep emotions out of it, this is why I say papertrading is useless – once your money is on the line, everything changes. Papertrading is great and second to none to learn terminology and how to place orders or test a system. 11. have a good relationship with broker, make sure he understands your plan. If your current broker doesnt want to take the time to listen and help you reach your goals, then you need a new one… 12. never trade with the rent money or your kids college funds God forbid, risk capital should only be used.
Tom out