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3 Reasons Why You Should TradeNow before I started, you may have thought my top reasons were probably things like: You can trade anywhere, you can do it anytime, and you will have a lot of free time and money. Yes, all of these are good reasons, but I wanted to give you my top three reasons why I think that you should trade. Reason Number Three: Trading Can Make You Money & Money Buys Happiness I’m a firm believer that money CAN buy happiness. Now, I know that this is controversial because people say, “Money can’t buy you happiness.” Based on my experience, they are wrong. I will prove it to you. If you’re an avid reader of this blog, a subscriber to my YouTube channel, or are a member of Rockwell Trading, you know I’m always about the facts. I have multiple trading accounts, and recently I was trading a small account live on my YouTube channel using a trading strategy called The Wheel. Many of you are already trading this strategy as well. On this account up to this point, I have made $3,204, in a month. Even though this isn’t my main account, and is one of my smaller ones, $3,200 is not too bad. Let me prove to you how money can buy happiness. Let me ask you, do know somebody who is in a tough spot right now with everything that we have going on in the world? Do you know someone who got laid off and couldn’t pay their rent? Someone who got sick and couldn’t afford to buy the needed medication? What about somebody whose car broke down, and didn’t have money to fix it making transportation difficult? So so let me ask you this. What if you could have given them $3,204? Do you think that this could have changed that person’s life? Making $3,000 for me is nice, but it doesn’t change my life. But maybe you know somebody whose life we can change with this. Very recently, I decided to give away that month’s worth of profits to a few people in need. I had our members and viewers nominate someone they knew, who was currently having a tough time. We received so many applications, and I reviewed the (heart-wrenching) submissions. I picked the two candidates who I felt could use it the most, and I split the profits from this trading account and sent them a check. It helped them out a great deal, and it meant the world to them. So for me, this was very solid proof that money CAN buy happiness, and can change your life for the better. I believe we have a responsibility to make more money to help not just ourselves, but others. Money buys happiness and this is why I will keep doing it. I’m doing this information out there because I want you to succeed. I want you to make money to give back. There are so many people in need that you could help. Here is an example of one of the nominations for the recipient of the trading profits we gave away. This nominee is a single mother of four children. Her son had a needed surgery a while back and she got stuck with a $9,000 bill. She’s getting garnished for this by taking $150 from each of her paychecks. She’s a nursing assistant and doesn’t receive all that much. She wasn’t one of the recipients that I chose as the final two, but I decided to send her the money that she needed anyway. Now doesn’t have to worry about her paychecks getting garnished for a whole year. Here is an email that I received over the weekend, and it’s from a man named Robert, and it read, “Markus, thank you for being you, brother! Could go into a long story about how ironic it is that I’ve been a Rockwell member for almost four years and finally started applying your trading rules in August of 2020, and had one of my best months ever." "But that’s not what this is all about. I would like to donate an additional $300 to whoever you decide to give the money to. I feel very blessed and just want to pay it forward. Let me know the best method to get the money to you." "Thanks for your persistence and all you do.” Why I’m showing you this e-mail? This is exactly what happens when we start making money together. I know that people are probably telling you, “You can’t make money with trading.” Well, you know what? Prove them wrong. You can make money with trading. Is it easy? No, because you need three things: You need the right strategy, the right tools, and the right mindset. Together we can make a difference Money buys happiness. I believe we have a moral obligation to make as much money as we possibly can to be like Robert. I know that many of you are already donating. I mean, you have told me in these emails and I’m so, so proud of you for what you’re doing already. Together we can make a difference. This is what this blog is all about, and this is what this message is all about.
NASDAQ:TSLA
by rockwelltrading
3
Bearish batAUDCHF is in a supply area, it is the third time that price reaches this zone, we can clearly see a bearish divergence in on balance volume. These comined factors make me think about a possible drop of the pair, there are three different areas in which we could take profitsaccording to our money management and our trading style: 0.6590 : first support (you can close 25% of your trade or if you trade frequently you can close your position and open another one 15/20 pips higher) 0.6500: 61.8% fibonacci retracemnt of the bat ( you can close 50% of your trade here and set sl at breakeven) 0.6405: last demand area where lies 200-day moving average. Use an appropriate money management.
Short
by Dragon_Investments
Proving Your Trading System with BacktestingWouldn’t it be great to see the future? To see where turning points in price will occur with a high degree of accuracy? To see if a trading system that you developed or bought or learned actually works? Well, you can, with a method called BACKTESTING.  Backtesting performs three important functions: 1: It helps you IDENTIFY the reliability / win rate of your trading system over time. 2: It helps develop and reinforce the muscle memory you need to EXECUTE opportunities in your trading strategy 3: It helps you continually REFINE / improve your strategy as you observe it work against price action, ultimately increasing your "hit rate" as a professional trader. The first requirement of a trading system is that it works via RULES. There are no 'hunches' in the market... the market has *specific* behavior patterns and our job as traders is to recognize those patterns and *capitalize* on them. Backtesting has three important requirements: The first requirement is that your trading platform supports backtesting. Can you go back "x" amount of time and look at the timeframe(s) you need to make the decisions you would have made if you were "in the moment" in an efficient manner in order for you to simulate hundreds of trade setups? The second requirement is that *you* are willing to put the energy and work into testing your trading system within an inch of its life before you risk a single penny of your trading capital. You need to know WHEN the system works, WHERE the system fails, and WHY the system worked and failed when it did, and that takes hundreds (if not thousands!) of simulated trades to do so. As you are observing the system in action you will begin to "see" the patterns in a new light. It will become more and more intuitive and you will find opportunities to 'tweak' the system as you go along. You will identify patterns when trades fail and stop trading that pattern. You will see opportunities that got away and you can 'tweak' your system to take advantage of those opportunities. Most importantly, you will see whether the system even works reliably at all and ditch it if it doesn't. It may be frustrating to decide to do so, but the good news is you will not have lost a single penny trading a faulty system to begin with! TRACKING YOUR TRADING SYSTEM To track the accuracy of your trading system you will need to setup a spreadsheet that will record the important variables you want to track. For example, you may want to include the headers, Asset / Date / Time In / Time Out / Long or Short / Reward to Risk Ratio / Gain or Loss / Account Balance The "Reward to Risk Ratio" column is the most important. If you read my previous column, "Trade Like a Pirate" ... ... I discuss that you need to think in terms of Percent Risk per trade ("R") and not Dollars. This will show you how well your strategy works. For Example, if after tracking 100 trades you find out that your system has a 33% success rate, your account will grow by 1% for every three trades if you follow a minimum 3:1 Reward to Risk Ratio (3 -1 -1 = +1). If you find on average 6 trades per day, your account can potentially grow by 2% per day. Under the "Account Balance" column, if you add the trade's win/loss to your previous account balance you can determine how long it would take to get 'x' amount of money from where you started (or how long it will take and inferior system to lose it all as well!) Testing your trading system also shows you how many opportunities present themselves per day / per hour and when the best time is to go 'fishing' for trades. Backtesting might tell you that you need to wake up 2 hours earlier (and go to bed 2 hours earlier) if you want to achieve the goal of replacing your car in 6 months. Or fire your boss in 24 months. Or pay off the mortgage in 3 years. Having a plan to *make* money should also include your plans on how and when you want to *spend* that money - how you will 'pay yourself'. Socrates famously said “The unexamined life is not worth living.” Likewise the unexamined trading system is not worth putting your hard earned money into. The more you backtest your system, the more you will gain (or lose) confidence in the system which will ultimately determine the actions you will take. Another happy by-product is that not only will you be able to refine your trading system, but you yourself will be continually refined in the fire of the market, exercising your mental muscles looking for opportunities that meet your particular trading system. For instance, by analyzing all my losing trades in my first batch of 100, I was able to identity a pattern in the formations common to all failing trades but not winning trades. I then modified my trading system to exclude trades which showed that pattern, increasing my success rate by 30% in the next 100 trades I tested with the new system. Not happy with that, I went through my losing trades from Round 2 and found another common pattern among them. Eliminating those, I modified my system and increased my success rate by yet another 20%. Finding what works is often a product of finding out what doesn't work, and just stop doing that! If you need advice on how to stop a bad habit, just listen to Bob Newhart: www.youtube.com Finally, just as any athlete will you tell you that you should "Warm Up" before performing any strenuous exercise, one thing my backtesting system has taught me is that I need to spend the first 30 minutes of my trading day "warming up" by finding all the opportunities that presented themselves in the Futures market during the overnight session and log them in my spreadsheet. Likewise at the end of the day I look at all opportunities I might have missed so I can reduce the likelihood of missing them again. The original title of this article was "Backtesting to the Future" which reflected this habit: by 'warming up' before actually trading I got my mind prepared to "see the opportunities" for the future day ahead, and I identified these patterns a lot better than I would have if I entered the pool cold and experienced the 'cramp' of a losing trade. Admittedly, backtesting a highly visual concept, so I will be following up this article with a video showing an example of my backtesting strategy and how you can model my system to meet the needs of *your* system. As I love to say, "Good artists copy, great artists steal." Likewise, "Good traders copy... Great traders steal." I hope you can steal some of these ideas and have them help improve your trading game! Share your thoughts and success below! As always, I'd love to hear if this has helped you become more confident and profitable in your trading. Like and Follow if you haven't already and you will be alerted to when I post the followup video! Trade hard and trade well!
Education
by ocaptain
105