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Don't listen to your inner NINNY! I can't swear on TV :(Traders have 1 JOB!. To just take the trade. All the other stuff is semantics. But most times you’ll find your inner B I mean Ninny takes over. And it tells you: ~ Don’t take the trade. ~ You’ll lose money. ~ The stars are not aligned! ~ Blah blah fish paste! You need to stop listening to your inner F - inny, or it will destroy your chances of success. So let’s talk about the 4 common excuses traders make and how to overcome them. Excuse #1: I’m not in the mood The markets are awake with or without you. People are making money and doing things in this world. Others are taking ice baths, cold showers, hitting the gym twice a day. They are doing the hard. You need to stop the excuses of not in the mood, get off the couch and take action for your life. You are in control of your life, what you do and what you make. Do what you need to. Create a schedule that includes time for exercise, meditation, and of course trading. Excuse #2: External news event kicked in Financial markets are subject to external events that can impact trading decisions. These events can include political developments, natural disasters, or major economic announcements. The problem is. These events come daily. Every day there are new news announcements, GDP numbers, employment and jobs reports, Interest rates, inflation rates etc…If you’re not taking a trade because of one of these announcements, I’m sorry but. That’s just an excuse! If you must. Write down a few IMPORTANT news announcements that you want to watch for when you trade. Maybe interest rates in America. Maybe NFP reports, Maybe during FOMC meetings. But do the research and find out what news events are worthy to NOT take a trade. I’ve been in the markets for 20 years and I haven’t found one worthy news announcement other than NFP for Forex trading. Excuse #3: Market doesn’t feel right To you it doesn’t feel right. To you, you think the market is some sentimental machine that feels healthy or sick. To me, I see prices, risks and probabilities. I see a robot and mechanical processes with billions of dollars streaming in and out at any one second, the market is opened. You need to develop an objective criteria for assessing market conditions. Have tunnel vision and stop trying to predict the temperature of the market. It’s not human. There is buying. There is selling. There is a repetition of that every day. Market doesn’t feel right, is an excuse. Excuse #4: System lined up but it’s not perfect Ok so you have a system good. You have a strict strategy to follow, great. But the system lined up and it’s not perfect. As I mentioned before. You need to write down the rules and criteria that you can use to identify opportunities and risks. There are only three types of trades in this world. HIGH probability trade – Market lined up perfectly according to the system. MEDIUM probability trade – Market almost lined up perfectly but I will still take the trade and risk a little less. NO trade – Market did NOT line up and therefore I’m not taking a trade. So, are you going to continue to listen to your inner Busy Ninny or are you going to start making money the right way?
TVC:SA40Education
by Timonrosso
GLOSSARY Smart Money Concepts - Complete Terms!It's taking the world by a storm. Smart Money Concepts is what has become famous lately. Now I've been trading for 20 years and even I have learnt to adapt and adjust SMC to my trading strategy. I guess we have to evolve and adapt with what there is. Anyways, Today, I've written a complete Glossary on Smart Money Concepts terms for you. Enjoy! SMART MONEY CONCEPTS GLOSSARY Break Of Structure (BOS) (CONTINUATION) A BOS is when the price breaks above or below, and continues in the direction of the trend. (CONTINUATION). Break Of Structure Down When the price breaks and closes BELOW the wick of the previous LOW in a DOWNTREND. Break Of Structure Up When the price breaks and closes ABOVE the wick of the previous HIGH in an UPTREND. Buy Side Liquidity (Smart Money SELLS) Where an Order Block forms where Smart Money SELLS into retailers (dumb money) BUYING orders - Pushing the price DOWN. Change of Character (CHoCH) (REVERSAL) Refers to a much larger shift in the underlying market trend, dynamic or sentiment. This is where the price moves to the point where there is a change in the overall trend. (REVERSAL) Change of Character Down When the price breaks and closes below the previous uptrend. Change of Character Up When the price breaks and closes above the previous downtrend. Daily bias Tells us which direction, trend and environment the market is in and what we are looking to trade. Daily bias Bearish When the market environment is DOWN and the trend is DOWN - we look for shorts (sells) in the market. Daily bias Bullish When the market environment is UP and the trend is UP - we look for long positions (buys) in the market. Discount market <50% The market is at a discount when the price trades BELOW the equilibrium level. We say the price is at a discount (low price). Equilibrium Equilibrium is a state of the market where the demand and supply are in balance with the price. We say the price of the market is at fair value. Fair Value Gap (FVG) A 3 candle structure with an up or down impulse candle that indicates and creates an imbalance or an inefficiency in the market. Fair Value Gap Bearish A 3 candle structure with a DOWN impulse candle that indicates and creates an imbalance or an inefficiency in the market. Between candle 1 and 3, do NOT show common prices. The price needs to move back up to rebalance and fill the gap. Fair Value Gap Bullish A 3 candle structure with an UP impulse candle that indicates and creates an imbalance or an inefficiency in the market. Between candle 1 and 3, do NOT show common prices. The price needs to come back down to rebalance and fill the gap. Levels of liquidity The area of prices where smart money players, identify and choose to BUY or SELL large quantities. E.g. Supports, resistances, highs, lows, key levels, trend lines, volume, indicators, psychological levels. Liquidity The degree, rate and ability for an asset or security to be easily bought (flow in) or sold (flow out) in the market at a specific price. Liquidity sweep (Liquidity grab) Smart money buys or sells (and sweeps or grabs liquidity) from traders who enter, exit or get stopped. Market down structure When the price makes lower lows and lower highs. Market structure Indicates what a market is doing, which direction it’s in and where it is more likely to go. Market Structure Shift (MSS) MSS shows you when the price is breaking a structure or changing the direction in the market. Market up structure When the price makes higher lows and higher highs. Order block Large market orders (big block of orders) where smart money buys or sells from different levels of liquidity. Order Block Bearish A strong selling or a supply zone for smart money. Order Block Bullish A strong buying or a demand zone for smart money. Order block events Large market orders where smart money buys or sells from certain events i.e. High volume, supports, resistances, highs, lows, key levels, Break Of Structure, Change of Character, News or economic event. Point Of Interest (POI) POI is an area or level in the market where there is expected to be a large amount of buying or selling activity i.e. Order blocks. Premium market >50% The market is at a premium when the price trades ABOVE the equilibrium level. We say the price is at a premium (high price). Sell Side Liquidity (Smart Money BUYS) Where an Order Block forms where the Smart Money BUYS into the retail (dumb money traders orders - Pushing the price UP. Smart Money These are the smart, informed, and savvy financial institutions that invest (buy and sell) their large capital into different financial markets. Smart Money Concepts SMC is a more sophisticated method of price action to spot, identify and locate where smart money is buying and selling their positions Sweep Buy Side Liquidity (Smart Money SELLS) Smart Money SELLS into positions (and sweeps liquidity) from retail traders who are short (get stopped) and for long traders who buy and enter their trades. Sweep Sell Side Liquidity (Smart Money BUYS) Smart Money BUYS into positions (and sweeps liquidity) from traders who are long (get stopped) and for short traders who enter their trades. Feel free to print this out and have it as a guide to your Smart Money Concepts trading journey. All the best!
SP:SPXEducation
by Timonrosso
Trading Success Stoppers Part 2 Trading can be an excellent way to grow your wealth. But as you may know by now, it’s not a straightforward path without obstacles. In fact, several challenges can hinder traders from achieving success in the field. Here are four more significant success stoppers that traders face in their trading efforts. No Support from Anyone Trading can be a lonely and isolating field. Once you have the strategy, rules and mindset in place – it’s all on you. Initially you may want strong support from a community of traders or confirmation ideas that you’re on the right path. My situation is different. Because I have traded for the last 20 years, it did become very lonely and it felt like I had more to offer. With TradingView at least I have a community to talk to and help out where I can. So you see, having a support system can make all the difference. Without support, it can be challenging to stay motivated and focused on your goals. And in the end you’ll realise there is more to trading than just making money. Solution: The key is to find a mentor or a community of traders who can support and guide you. Join online trading forums or attending trading events can be an excellent way to connect with other traders and build a support system. You can also consider hiring a coach or mentor to guide you and provide feedback on your trading strategies. Success stopper #2: Laziness Look! Trading requires discipline, focus, and hard work, and without these qualities, it can be difficult to achieve your goals. Lazy traders are the worst. They lack the motivation, drive, and discipline that’s necessary to research, analyse, journal and trade in order make informed decisions. You also need to be able to get up off your ass and trade each week. Sure, you can take off a few days a week – that’s the beauty. But don’t let laziness stop you for more than a few days! Solution: The key to overcoming laziness is to set clear goals and create a routine that supports your trading activities. Set aside specific times each day or week to research the markets, analyze charts, and execute trades. It can also be helpful to create a trading plan that outlines your goals and strategies, which can help keep you focused and motivated. Success stopper #3: No Money to Trade This is more of an excuse than a success stopper. You know you can paper trade until you nail the trading game, until you can start putting in capital. And when you do save money, you’ll be able to learn the real world of trading and understand the slippage, costs, liquidity, margin trading etc… Solution: The key to overcoming this challenge is to start small and build your way up. Consider opening a demo account to practice trading without risking real money. You can also start by trading with a small amount of capital and gradually increase your investment as you become more comfortable and confident in your abilities. Success stopper #4: No Skills and Talents That’s what you think. But I honestly believe I can take just about anyone with a bit of computer experience and show them how to make a consistent income trading the markets. Trading requires a specific set of skills, such as market analysis, risk management, and technical analysis. And these skills CAN be taught. Whether you’re a slow learner or a fast learner, you can learn the ways. Solution: The key to overcoming this challenge is to invest in your education and development. Take courses or attend seminars to learn the necessary skills and techniques for successful trading. You can also consider working with a mentor or coach to help you improve your trading skills and develop your talents. So what is stopping you from your trading success? I can only think of 1 thing. Go look at the mirror.
JSE:J200Education
by Timonrosso
Trading Success Stoppers Part 1Trading as you know is a fantastic alternative to grow your wealth. However, it is not without its challenges. In fact, there are several success stoppers that traders face that can derail their trading efforts. Let’s look at four of them. STOPPER #1: Same Old Routine One of the biggest success stoppers for a trader is falling into the same old routine. It is easy to get into a rut and continue doing the same things day in and day out. However, this can lead to a lack of progress and stagnant trading results. Yes you need the same ‘ol strategy, risk management rules and criteria for a consistent track record. But you also need to be open to try new things and adapting to changing market conditions. You can do this by: ~ Backtesting and forward testing other strategies. ~ Adapting new markets into your trading ~ Identifying new market environments ~ Even improving your current indicators and chart layouts Always looking out for better brokers, chart platforms and sources to help your trading Improving your calculators and trading tools. STOPPER #2: Self-Doubt This can cripple a trader’s confidence and ability to make sound trading decisions. It is natural to experience doubts and fears when trading. But make sure you don’t let it take over and lead you to emotional decisions, doubting during drawdowns and missed trading opportunities because of how you feel rather than what the charts say. To overcome this success stopper, you should focus on building your confidence and self-belief through trusting your proven track record. You can do this by keeping a trading journal to track your successes and failure. Also seek out the advice of a mentor or coach, and regularly review their trading plan to ensure they are on the right track – to help with your own confidence. STOPPER #3: Procrastination Procrastination is a common success stopper for traders. It is easy to put off making trading decisions or taking action on a new trading strategy. However, procrastination can lead to you never taking action which means: No trades No consistency No growth No results To overcome this success stopper, traders should develop a sense of urgency and take action quickly. Adapt the 1,2,3 JUST DO IT mentality as I mentioned in the previous video. Break down larger tasks into bite sized and more manageable ones and set deadlines to complete on time. STOPPER #4: No Big Idea Finally, having no big idea or vision for their trading can be a major success stopper for traders. You need to know your goals, strategy, risk profile and trading personality. When you do this you will have the BIG idea on what you need to progress and thrive. Stop these stoppers before they stop you from achieving trading greatness. Tune in tomorrow for Part 2!
TVC:SA40Education
by Timonrosso
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
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
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?
Editors' picks
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 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
FUNDAMENTALS-Share Consolidation (Reverse Stock Split) RichemontOn 19 April 2023, Richemont went through a Share Consolidation (Reverse Stock Split). That's why we saw the price move from R300 up to R3,027 (909%). But before you get excited with whether you could have profited big time we need to remember what a Reverse Stock Split is... What is a Reverse Split (Share consolidation)? • The opposite of a stock split where • When the company makes a corporate action to • Reduce the number of its outstanding shares to its shareholders • Which simultaneously increases the share price • The shareholder will still have the same value proportional. What happens to the par value of the share price? A decrease in the number of shares means that the share price will go up! Why would a company do a reverse spit? The company might be under the impression that shareholders think the share price is too low. So, they’ll cut the number of shares and increase the shareholder which will give the impression of the share price higher and more valuable. EXAMPLE: With Richemont – 19 April 2023 SPECIFICS: Share consolidation: Reverse Stock Split 10:1. BEFORE: The share price was R300.00 AFTER: The share price is R3,027 No. SHARES OWNED: 100 AFTER CONSOLIDATION: For every 10 shares you owned before, you now own 1 share. So your 100 shares would be consolidated into 10 shares. OVERALL VALUE: BEFORE: 100 shares X R300 = R30,000 AFTER: 10 shares X R3,027 = R30,270 In this case, the value of the investment has indeed increased after the share consolidation but only marginally.
JSE:CFREducation
by Timonrosso