The Dimensions of a Successful Trading Entity

Many considerations go into creating and running a successful trading entity. We’ll look at the most popular which get the most attention, right through to the most important, which usually get the least attention.

Here is the list:

1. Entry signals
2. Risk management
3. Exit signals

4. Reliability
5. Reward to Risk
6. Opportunity
7. Capital management

8. Objectives
9. Familiarity with Markets
10. Resources
11. Mindset
12. Style
13. Management

Most, and by most I mean probably close to 80-90% look at number 1 and that is it! That is a startling reality, but a reality nonetheless. But there is a reason this happens. Most new traders are unaware that such a large number of traders ultimately fail in this business, and more importantly, this fact is well known by the very people who market trading in this way.

But enough of that, let’s look at some serious considerations you should make and the order in which you need to do it.

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I have spent an awful lot of my personal time putting together a 69 minute video for traders that I believe will open the door to understanding how to trade successfully.

This video is a trading system I call the 4 T’s trading system, and in this video you’ll learn the trading system itself, the rules and how to trade it. It will also show you I apply leverage to it, but more importantly how to use leverage with the trading system to achieve a goal or objective.

However it doesn’t end there. By the time you have watched this movie, I believe you will be able to take any trading system, not just the 4 T’s system and use it to achieve your goals. If you already have what you believe is a work-able system but are unable to make it work, this may answer your problems.

If you do have any questions after watching the video I urge you to send them to me, via the question form link which you’ll also find on my blog. I plan on answering any questions regularly so do send them along.

It is quite long, so make yourself a cuppa and enjoy
http://financialmarketfisherman.com

To your success
Dean Whittingham

What is the best?

I was asked this question a few weeks ago and would like to offer some pointers.

The question is coming from someone who is struggling to find the right strategy and finds charts very confusing.

The question is hard in that the answer to his or her question is a different answer to the one they are seeking. What I mean by this is that the best combination of technical analysis simply doesn’t exist.

Let’s take two traders.

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1. Is there someone out there in the market trying to drive me broke? 2. Realistically, I think the question I would like to have answered is how the single largest volume trader of any instrument makes their bets on. TA or Fundamentals? I’d cry if it was Fundamentals since I’m a technician.

I here this question a lot; are the large players in the market fishing out the small guy, and maybe yes it does happen but this shouldn’t deter you or intimidate you either. The markets are still markets and that will never change. What one must remember is that if you enter a trade long and place a stop loss at a certain point you have done two things. You have told the market you feel this instrument is undervalued and will appreciate, and you have also told the market the price at which you are willing to sell your holding.

I feel this is where a lot of people get stop losses confused. If I purchase a house and then decide to sell it, I’m not placing a stop loss, but I am telling the market that at this price, I am willing to sell my house. A stop loss is no different. You are telling the market that at this price you are willing to sell and so if a buyer comes along who is willing to buy at the same price then so be it. All the broker is doing is fulfilling both of your wishes.

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What do you make of this chart?

Time to dust off your technical analysis skills and take a look at the following chart, and tell me what you think…

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Did you enter the trade long?

For those of you that haven’t read the first part of this trading quiz, please look back a couple of posts and do so now.

For the rest of you, read on and see what happened next…

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Would you trade this?

Hi everyone, I think it’s time for a little quiz.

Take a look at the chart below, and tell me what (if anything) you would do, and why you’d do it.

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Trends for beginners

Despite trying to keep my posts simple and easy to understand, I’ve been guilty of using jargon without always realising it, and in my recent posts on the 1-2-3 breakout trading system I didn’t make much of an effort to clarify trends.

In this post we are going to rectify that and use some basic technical analysis skills to give you a basic outline of trends.

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1-2-3 breakout system exits

In this post we’ll continue looking at the 1-2-3 breakout trading system by discussing an exit strategy for the long entries we covered last time, as well as looking at short entries and exits

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Did you see it coming?

I would like to ask any reader if your intuition predicted either of the following; the sharp drop in the major indexes, the sharp rise in the US Dollar, or the sharp rise in the Japanese Yen (unwinding of carry trades)?

Intuition is our most powerful sense, it enables us to read someone’s energy frequency (good mood/bad mood), before they even walk through the door. It also gives us the ability to assess and analyze a situation at a sub-conscious level before other factors become involved.

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