12 Traits of Successful Traders

The following are a list of traits successful traders have, which have allowed me to earn a nice income in the trading market after integrating them into my own strategy.

1. The habit to purchase pullbacks in an uptrends. Purchasing at the proper pullback level generally leads to profits if others are fearful to do the same. I like to buy uptrending stock as the trend already prove that this is a profitable stock. To me the pullback is a discount.
2.  Successful traders always use position sizing and stop losses to regulate their risk per trade. They won’t risk their lifestyle, capital or careers on any singular trade. Never lose your sleep or get worried over your position. It it does, I will reduce the position till my sleeping point.
3. Having the ability to sell Short on strength at critical resistance levels. In a market that’s bound or down, having the ability to sell short after a substantial move may lead to profits, and the risk/reward ratio will be in your favor.
4.  Successful traders tend ride the big trend, and enjoy trading within the path of least resistance in a particular time-frame. Ride the trend till it bend.
5.  Successful traders are adaptable and can be bearish or bullish sporadically based on the market trend and price action.
6.  Successful traders perform thorough research on price action trends and historical charts and to determine what is effective, and what isn’t.
7. They are passionate to make profit in the market, you need the passion and energy to do this work as it does not pay you a fixed salary every month
8.  Successful traders optimize their winning trades and minimize their losing ones. Keep the losses small.
9.  Successful traders despise losing money, and as such, ensure that any loss they suffer is minimal.
10.  Successful traders don’t surrender when they are burned out or have a string of bad luck. 
11. Successful trader mostly started as losing trader, it is through hard work to turn losing trader to winning trader
12. Successul Trader manage risk, if you got no money, you can't trade.

Upcoming Free Seminar:

What you will learn:

Time Tested Propietory Strategy to trade in Stock

How this strategy can apply in any market around the World

Simple Steps to pick the Growing Stocks?

How you can do Sector Analysis to find what is the Strong/weak sector now

Market outlook and individual Singapore stocks analysis using Technical Analysis

Venue : #34-07, 10 Anson Road, International Plaza, Singapore 079903

6th October 2016, Thursday, at 7.00pm - 10.00pm (Registration begins at 6.30pm)

5 Steps to becoming a Professional trader that you MUST know!

Step One: Unconscious Incompetence.
This is the first step you take when starting to look into trading. you know that its a good way of making money because you've heard so many things about it and heard of so many millionaires. Unfortunately, just like when you first desire to drive a car you think it will be easy - after all, how hard can it be? Price either moves up or down - what's the big secret to that then - lets get cracking!

Unfortunately, just as when you first take your place in front of a steering wheel you find very quickly that you haven't got the first clue about what you're trying to do. You take lots of trades and lots of risks. When you enter a trade it turns against you so you reverse and it turns again .. and again, and again.

You may have initial success, and that's even worse - cos it tells your brain that this really is simple and you start to risk more money.

You try to turn around your losses by doubling up every time you trade. Sometimes you'll get away with it but more often than not you will come away scathed and bruised You are totally oblivious to your incompetence at trading.

This step can last for a week or two of trading but the market is usually swift and you move on to the next stage.

Step Two - Conscious Incompetence
Step two is where you realise that there is more work involved in trading and that you might actually have to work a few things out. You consciously realise that you are an incompetent trader - you don't have the skills or the insight to turn a regular profit.

You now set about buying systems and e-books galore, read websites based everywhere from USA to the Ukraine. and begin your search for the holy grail. During this time you will be a system nomad - you will flick from method to method day by day and week by week never sticking with one long enough to actually see if it does work. Every time you come upon a new indicator you'll be ecstatic that this is the one that will make all the difference.

You will test out automated systems on Metatrader, you'll play with moving averages, Fibonacci lines, support & resistance, Pivots, Fractals, Divergence, DMI, ADX, and a hundred other things all in the vein hope that your 'magic system' starts today. You'll be a top and bottom picker, trying to find the exact point of reversal with your indicators and you'll find yourself chasing losing trades and even adding to them because you are so sure you are right.

You'll go into the live chat room and see other traders making pips and you want to know why it's not you - you'll ask a million questions, some of which are so dumb that looking back you feel a bit silly. You'll then reach the point where you think all the ones who are calling pips after pips are liars - they cant be making that amount because you've studied and you don't make that, you know as much as they do and they must be lying. But they're in there day after day and their account just grows whilst yours falls.

You will be like a teenager - the traders that make money will freely give you advice but you're stubborn and think that you know best - you take no notice and overtrade your account even though everyone says you are mad to - but you know better. You'll consider following the calls that others make but even then it wont work so you try paying for signals from someone else - they don't work for you either.

You might even approach a 'guru' like Rob Booker or someone on a chat board who promises to make you into a trader(usually for a fee of course). Whether the guru is good or not you wont win because there is no replacement for screen time and you still think you know best.

This step can last ages and ages - in fact in reality talking with other traders as well as personal experience confirms that it can easily last well over a year and more nearer 3 years. This is also the step when you are most likely to give up through sheer frustration.
Around 60% of new traders die out in the first 3 months - they give up and this is good - think about it - if trading was easy we would all be millionaires. another 20% keep going for a year and then in desperation take risks guaranteed to blow their account which of course it does.

What may surprise you is that of the remaining 20% all of them will last around 3 years - and they will think they are safe in the water - but even at 3 years only a further 5-10% will continue and go on to actually make money consistently.

By the way - they are real figures, not just some I have picked out of my head - so when you get to 3 years in the game don't think its plain sailing from there.

I had many people argue with me about these timescales - funny enough none of them have been trading for more that 3 years - if you think you know better then ask on a board for someone who's been trading 5 years and ask them how long it takes to become fully 100% proficient. Sure i guess there will be exceptions to the rule - but i haven't met any yet.

Eventually you do begin to come out of this phase. You've probably committed more time and money than you ever thought you would, lost 2 or 3 loaded accounts and all but given up maybe 3 or 4 times but now its in your blood

One day - I'm a split second moment you will enter stage 3.

Step 3 - The Eureka Moment
Towards the end of stage two you begin to realise that it's not the system that is making the difference. You realise that its actually possible to make money with a simple moving average and nothing else IF you can get your head and money management right You start to read books on the psychology of trading and identify with the characters portrayed in those books and finally comes the eureka moment.

The eureka moment causes a new connection to be made in your brain. You suddenly realise that neither you, nor anyone else can accurately predict what the market will do in the next ten seconds, never mind the next 20 mins.

Because of this revelation you stop taking any notice of what anyone thinks - what this news item will do, and what that event will do to the markets. You become an individual with your own method of trading

You start to work just one system that you mould to your own way of trading, you're starting to get happy and you define your risk threshold.

You start to take every trade that your 'edge' shows has a good probability of winning with. When the trade turns bad you don't get angry or even because you know in your head that as you couldn't possibly predict it it isn't your fault - as soon as you realise that the trade is bad you close it . The next trade or the one after it or the one after that will have higher odds of success because you know your system works.

You stop looking at trading results from a trade-to-trade perspective and start to look at weekly figures knowing that one bad trade does not a poor system make.

You have realised in an instant that the trading game is about one thing - consistency of your 'edge' and your discipline to take all the trades no matter what as you know the probabilities stack in your favour.

You learn about proper money management and leverage - risk of account etc etc - and this time it actually soaks in and you think back to those who advised the same thing a year ago with a smile. You weren't ready then, but you are now. The eureka moment came the moment that you truly accepted that you cannot predict the market.

Step 4 - Conscious Competence
You are making trades whenever your system tells you to. You take losses just as easily as you take wins You now let your winners run to their conclusion fully accepting the risk and knowing that your system makes more money than it looses and when you're on a loser you close it swiftly with little pain to your account

You are now at a point where you break even most of the time - day in day out, you will have weeks where you make 100 pips and weeks where you lose 100 pips - generally you are breaking even and not losing money. You are now conscious of the fact that you are making calls that are generally good and you are getting respect from other traders as you chat the day away. You still have to work at it and think about your trades but as this continues you begin to make more money than you lose consistently.

You'll start the day on a 20 pip win, take a 35 pip loss and have no feelings that you've given those pips back because you know that it will come back again. You will now begin to make consistent pips week in and week out 25 pips one week, 50 the next and so on.
This lasts about 6 months

Step 5 - Unconscious Competence
Now we’re cooking - just like driving a car, every day you get in your seat and trade - you do everything now on an unconscious level. You are running on autopilot. You start to pick the really big trades and getting 200 pips in a day doesn't make you any more excited that getting 1 pips.

You see the newbies in the forum shouting 'go dollar go' as if they are urging on a horse to win in the grand national and you see yourself - but many years ago now.
This is trading utopia - you have mastered your emotions and you are now a trader with a rapidly growing account.

You're a star in the trading chat room and people listen to what you say. You recognise yourself in their questions from about two years ago. You pass on your advice but you know most of it is futile because they're teenagers - some of them will get to where you are - some will do it fast and others will be slower - literally dozens and dozens will never get past stage two, but a few will.

Trading is no longer exciting - in fact it's probably boring you to bits - like everything in life when you get good at it or do it for your job - it gets boring - you're doing your job and that's that.

Finally you grow out of the chat rooms and find a few choice people who you converse with about the markets without being influenced at all.

All the time you are honing your methods to extract the maximum profit from the market without increasing risk. Your method of trading doesn't change - it just gets better - you now have what women call 'intuition'

You can now say with your head held high "I'm a currency trader" but to be honest you don't even bother telling anyone - it's a job like any other.

I hope you've enjoyed reading this journey into a traders mind and that hopefully you've identified with some points in here.

Remember that only 5% will actually make it - but the reason for that isn't ability, its staying power and the ability to change your perceptions and paradigms as new information comes available.

The losers are those who wanted to 'get rich quick' but approached the market and within 6 months put on a pair of blinkers so they couldn't see the obvious - a kind of "this is the way i see it and that's that" scenario - refusing to assimilate new information that changes that perception.

I'm happy to tell you that the reason i started trading was because of the 'get rich quick' mindset. Just that now i see it as 'get rich slow'

If you're thinking about giving up i have one piece of advice for you ....

Ask yourself the question "how many years would you go to college if you knew for a fact that there was a million dollars a year job at the end of it? 

Take care and good trading to you all. – Anonymous
Source: forexfactory

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5 RULES to prevent a BIG losses in Trading

Few days ago I met up with some investors, they asked me to help the check out their stocks. Some of the stocks is in terrible condition, usually the common question is "Should he/she buy more at current price?"or "Should he/she Sell now?" When your stocks is down 50% it is really not easy to answer the 2 question above, however, lets think about why you think the price up if you continue holding? If you cant find any reason for it to go up, then you should not be holding on to a losing counter. I always tell my client, a big loss always start from a small loss, cut loss when it is still small. 

5 RULES to prevent a BIG loss in Trading

1.  Never follow other people/GURU/INSIDER/FRIENDS/REMISIER to get in a trade.
2.  Never trade just for 1-2bid, it doesnt work here in Singapore unless you are getting super low commission. Many people thought it is easy to make 1-2bid, so they buy ALOT of shares, the price up a bit, they can run away with small profits, however many times they cannot react fast enough to the opposite direction and get caught with Big losses.
3. Never RISK more than 2% of your portfolio in a single trade, you cant win every trade, some times you will have losses, the rule of the game is to win more than you loss, Win big when you win, Lose Smaller than what you win when you lose
4. Never Average down a Loser, buy stocks like you are investing in a business, Dont put in more capital on the business that is losing money! Invest more on the business that is making you the money!
5. Never trade without an Exit Strategy, knowing how you get in is easy, however many people always do not know how to get out when the PROFIT and also when they making LOSSES. Below is some of the example of how you can exit before big drop in the stock price using ART Supertrend System

 Ezra changed trend since August 2014, never show green candle since then, our Smart money index show no more Smart money in the stocks. Mostly retail money stuck in the stocks.

 Ausgroup change trend Since Aug 2014, our Smart money index show no more Smart money in the stocks. Mostly retail money stuck in the stocks.

Mirach Change trend since September 2014, our Smart money index show no more Smart money in the stocks. Mostly retail money stuck in the stocks.

The 5 Steps to becoming a Professional trader

Step One: Unconscious Incompetence.

This is the first step you take when starting to look into trading. you know that its a good way of making money because you've heard so many things about it and heard of so many millionaires. Unfortunately, just like when you first desire to drive a car you think it will be easy - after all, how hard can it be? Price either moves up or down - what's the big secret to that then - lets get cracking!

Unfortunately, just as when you first take your place in front of a steering wheel you find very quickly that you haven't got the first clue about what you're trying to do. You take lots of trades and lots of risks. When you enter a trade it turns against you so you reverse and it turns again .. and again, and again.

You may have initial success, and thats even worse - cos it tells your brain that this really is simple and you start to risk more money.

You try to turn around your losses by doubling up every time you trade. Sometimes you'll get away with it but more often than not you will come away scathed and bruised You are totally oblivious to your incompetence at trading.

This step can last for a week or two of trading but the market is usually swift and you move onth the next stage.

Step Two - Conscious Incompetence

Step two is where you realise that there is more work involved in trading and that you might actually have to work a few things out. You consciously realise that you are an incompetent trader - you don't have the skills or the insight to turn a regular profit.

You now set about buying systems and e-books galore, read websites based everywhere from USA to the Ukraine. and begin your search for the holy grail. During this time you will be a system nomad - you will flick from method to method day by day and week by week never sticking with one long enough to actually see if it does work. Every time you come upon a new indicator you'll be ecstatic that this is the one that will make all the difference.

You will test out automated systems on Metatrader, you'll play with moving averages, Fibonacci lines, support & resistance, Pivots, Fractals, Divergence, DMI, ADX, and a hundred other things all in the vein hope that your 'magic system' starts today. You'll be a top and bottom picker, trying to find the exact point of reversal with your indicators and you'll find yourself chasing losing trades and even adding to them because you are so sure you are right.

You'll go into the live chat room and see other traders making pips and you want to know why it's not you - you'll ask a million questions, some of which are so dumb that looking back you feel a bit silly. You'll then reach the point where you think all the ones who are calling pips after pips are liars - they cant be making that amount because you've studied and you don't make that, you know as much as they do and they must be lying. But they're in there day after day and their account just grows whilst yours falls.

You will be like a teenager - the traders that make money will freely give you advice but you're stubborn and think that you know best - you take no notice and overtrade your account even though everyone says you are mad to - but you know better. You'll consider following the calls that others make but even then it wont work so you try paying for signals from someone else - they don't work for you either.

You might even approach a 'guru' like Rob Booker or someone on a chat board who promises to make you into a trader(usually for a fee of course). Whether the guru is good or not you wont win because there is no replacement for screen time and you still think you know best.

This step can last ages and ages - in fact in reality talking with other traders as well as personal experience confirms that it can easily last well over a year and more nearer 3 years. This is also the step when you are most likely to give up through sheer frustration.

Around 60% of new traders die out in the first 3 months - they give up and this is good - think about it - if trading was easy we would all be millionaires. another 20% keep going for a year and then in desperation take risks guaranteed to blow their account which of course it does.

What may suprise you is that of the remaining 20% all of them will last around 3 years - and they will think they are safe in the water - but even at 3 years only a further 5-10% will continue and go on to actually make money consistently.

By the way - they are real figures, not just some ive picked out of my head - so when you get to 3 years in the game dont think its plain sailing from there.

Iv had many people argue with me about these timescales - funny enough none of them have been trading for more that 3 years - if you think you know better then ask on a board for someone who's been trading 5 years and ask them how long it takes to become fully 100% proficient. Sure i guess there will be exceptions to the rle - but i havent met any yet.

Eventually you do begin to come out of this phase. You've probably committed more time and money than you ever thought you would, lost 2 or 3 loaded accounts and all but given up maybe 3 or 4 times but now its in your blood

One day - im a split second moment you will enter stage 3.

Step 3 - The Eureka Moment

Towards the end of stage two you begin to realise that it's not the system that is making the difference. You realise that its actually possible to make money with a simple moving average and nothing else IF you can get your head and money management right You start to read books on the psychology of trading and identify with the characters portrayed in those books and finally comes the eureka moment.

The eureka moment causes a new connection to be made in your brain. You suddenly realise that neither you, nor anyone else can accurately predict what the market will do in the next ten seconds, never mind the next 20 mins.

Because of this revelation you stop taking any notice of what anyone thinks - what this news item will do, and what that event will do to the markets. You become an individual with your own method of trading

You start to work just one system that you mould to your own way of trading, you're starting to get happy and you define your risk threshold.

You start to take every trade that your 'edge' shows has a good probability of winning with. When the trade turns bad you don't get angry or even because you know in your head that as you couldn't possibly predict it it isn't your fault - as soon as you realise that the trade is bad you close it . The next trade or the one after it or the one after that will have higher odds of success because you know your system works.

You stop looking at trading results from a trade-to-trade perspective and start to look at weekly figures knowing that one bad trade does not a poor system make.

You have realised in an instant that the trading game is about one thing - consistency of your 'edge' and your discipline to take all the trades no matter what as you know the probabilities stack in your favour.

You learn about proper money management and leverage - risk of account etc etc - and this time it actually soaks in and you think back to those who advised the same thing a year ago with a smile. You weren't ready then, but you are now. The eureka moment came the moment that you truly accepted that you cannot predict the market.

Step 4 - Conscious Competence

You are making trades whenever your system tells you to. You take losses just as easily as you take wins You now let your winners run to their conclusion fully accepting the risk and knowing that your system makes more money than it looses and when you're on a loser you close it swiftly with little pain to your account

You are now at a point where you break even most of the time - day in day out, you will have weeks where you make 100 pips and weeks where you lose 100 pips - generally you are breaking even and not losing money. You are now conscious of the fact that you are making calls that are generally good and you are getting respect from other traders as you chat the day away. You still have to work at it and think about your trades but as this continues you begin to make more money than you lose consistently.

You'll start the day on a 20 pip win, take a 35 pip loss and have no feelings that you've given those pips back because you know that it will come back again. You will now begin to make consistent pips week in and week out 25 pips one week, 50 the next and so on.

This lasts about 6 months

Step Five - Unconscious Competence

Now we’re cooking - just like driving a car, every day you get in your seat and trade - you do everything now on an unconscious level. You are running on autopilot. You start to pick the really big trades and getting 200 pips in a day doesnt make you any more excited that getting 1 pips.

You see the newbies in the forum shouting 'go dollar go' as if they are urging on a horse to win in the grand national and you see yourself - but many years ago now.

This is trading utopia - you have mastered your emotions and you are now a trader with a rapidly growing account.

You're a star in the trading chat room and people listen to what you say. You recognise yourself in their questions from about two years ago. You pass on your advice but you know most of it is futile because they're teenagers - some of them will get to where you are - some will do it fast and others will be slower - literally dozens and dozens will never get past stage two, but a few will.

Trading is no longer exciting - in fact it's probably boring you to bits - like everything in life when you get good at it or do it for your job - it gets boring - you're doing your job and that's that.

Finally you grow out of the chat rooms and find a few choice people who you converse with about the markets without being influenced at all.

All the time you are honing your methods to extract the maximum profit from the market without increasing risk. Your method of trading doesnt change - it just gets better - you now have what women call 'intuition'

You can now say with your head held high "I'm a currency trader" but to be honest you dont even bother telling anyone - it's a job like any other.

I hope youve enjoyed reading this journey into a traders mind and that hopefully youve identified with some points in here.

Remember that only 5% will actually make it - but the reason for that isnt ability, its staying power and the ability to change your perceptions and paradigms as new information comes available.

The losers are those who wanted to 'get rich quick' but approached the market and within 6 months put on a pair of blinkers so they couldnt see the obvious - a kind of "this is the way i see it and thats that" scenario - refusing to assimilate new information that changes that perception.

Im happy to tell you that the reason i started trading was because of the 'get rich quick' mindset. Just that now i see it as 'get rich slow'

If youre thinking about giving up i have one piece of advice for you ....

Ask yourself the question "how many years would you go to college if you knew for a fact that there was a million dollars a year job at the end of it?

Take care and good trading to you all.

I left of the name of the author of this piece by mistake. If anyone knows the name of the true author, please let me know and I'll add it here. 

http://www.forexfactory.com/showthread.php?t=3156

Pls like our Facebook fan page to get more article to help you in your trading!
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Legendary Trader - Paul Tudor Jones Trading style and Beliefs

From Wikipedia 

Trading style and beliefs[edit]

As reported in Market Wizards and the press, Jones futures trading style and beliefs are summarized as follows:

• Contrarian attempt to buy and sell turning points. Keeps trying the single trade idea until he changes his mind, fundamentally. Otherwise, he keeps cutting his position size down. Then he trades the smallest amount when his trading is at its worst.
• Considers himself as a premier market opportunist. When he develops an idea, he pursues it from a very-low-risk standpoint until he has been proven wrong repeatedly, or until he changes his viewpoint.
• Swing trader, the best money is made at the market turns. Has missed a lot of meat in the middle, but catches a lot of tops and bottoms.
• Spends his day making himself happy and relaxed. Gets out if a losing position is making him uncomfortable. Nothing’s better than a fresh start. Key is to play great defense, not great offense.
• Never average losers. Decreases his trading size when he is doing poorly, increase when he is trading well.
• He has mental stops. If it hits that number, he is out no matter what. He uses not only price stops, but time stops.
• Monitors the whole portfolio equity (risk) in realtime.
• He believes prices move first and fundamentals come second.
• He doesn’t care about mistakes made 3 seconds ago, but what he is going to do from the next moment on.
• Don't be a hero. Don't have an ego. Always question yourself and your ability. Don't ever feel that you are very good. The second you do, you are dead.

Read more on: http://en.wikipedia.org/wiki/Paul_Tudor_Jones 

Keep your losses Small

Managing the Risk of Ruin and keep your losses small is the most important for all Traders. A big loss will kick you out of the market, and you will miss out the best time when market Trend

If you want to Ride the trend, you gotta wait for the trend to come. If you want to be here for the Good Times, You gotta be here ALL the time

Can We trust Noble Group Trend?

Noble Group is definitely not a great stocks to buy and hold on to for the past 2 years. If you are doing a mid term trend following trade, Noble Grp is now falling into bearish zone, we see that Noble Grp usually trend very well in bull or bear market and it is actually profitable if you go long and short at the right directions. However, what we know is many people are STUCK in this stocks, some as high as $2.00. So why people get stuck in stocks? After years of studying and helping my client to fix this kind of problem, i came to some conclusion.

1) No Exit plan - When we enter a trade, we have a preset exit plan. We follow our system to get in and get out. We understand that not every time we will win but if we spot a trend, we will follow till the end. Most people dont have a exit plan, so they always sell their winner at small gain and hold on to the losers till a bigger loss that make them go mad and sell at the lowest point.

2) Loss is too big - If you cannot cut loss if your losses is too big, it means your position size is too large. you underestimated the movement of the stocks.

3) Bad Habit - Buy/sell base on feeling, average your losers, follow other people's trade. Lack of self confident, cannot follow own plan etc.. Most people enter stocks base on FEELING, the fact is the feeling you get is what the BIG boys want you to feel. If you have been consistently losing in the market, it is impossible for you to change overnight and become a millionaire even you have the best system in the market. Bad habit takes years to change, you have to find a coach that push you towards the right mindset  and good practice.

If you are having problem with many stocks stuck on hand, Talk to us. We offer free 1 on 1 stock analysis with our ART system charting software

Are you getting the Stock Market Auntie Syndrome?

Many times we encounter investors that come asking,(Auntie) how is my stocks? Where is the market heading? Do you think will there be a next QE coming? Interest rate hike? What do you about Genting SP, Noble Group? Cosco? My Cosco Jialat leh, buy at $2.00 one.. etc..

When you need to know what is happening next, you are actually lacking of a Strategy of entering and exiting. You need to find a Strategy that fits you!

Auntie: Cannot Cut loss la, lose a lot money leh if i cut loss now!
To cut loss or not? Even fundamentalist do have cut loss, you have to understand that no system work 100%. Losing is part of the Game. To win is game, is just to have Big Win and Small Loss. But most people in the market tend to have Big losses and Small gain. This is natural human behavior, market is design to beat you in this way. You have to decide your Risk management strategy. Most successful trader don't risk more than 1% of their portfolio in each trade, this manage the risk of Ruin, black swan, fat tail event that will blow up your account!

Auntie: Aiyo! This Cosco is "My FRIEND" give one!
RESPONSIBILITY!!
Always remember this! Nobody cares about your money more than yourself, you have to justify using your strategy whether this trade fits you. What I learn from great traders is, they dont follow other people. If you want to become better, you have to try catching the fish by yourself

Auntie: So how now? Cut or Dont Cut?
No Comment. =.=||||

Do you have what it get to be a Profitable Trader?

•Weapon?

1.Stock Cash Account – Long position, Intra Day Naked Short, Contra Trade

2.CFD account  - Trade STI index, Shorting and Leverage Power

3.Stop limit order

4.Trading System to Enter and Exit

5.Cut loss, let profit Run. Add position to winners

6.Backtesting to build confidence

7.Money management Template(Keeping records)

8.Mentor groups

9.Stock Scanner

•Defenses

1.Trading Plan

2.Perfect Execution (Entry and exit as planned)

3.Money management, Risk per trade, Position Size

4.Patience, wait, don’t overtrade

5.Emotional Control

6.Stock watchlist (Monitor your stocks daily)

7.Plan B(What to do if market suddenly Crash?)

Feel free to contact us if you have any enquiries.

Learn How to Short Stock and Index here

What have we learned so far from the Correction!

Have we learn something in this correction. A month ago, we notify our client to exit ''some'' of their position, as much as 30% of the portfolio in the stand of managing their RISK due to market behaving abnormally.

1)First thing we learn from this Correction is ''Market did give a sign when it is going into a correction'', ''A big correction usually start from a small drop''. A correction is a period where stock market stop rising. Normally after a period of uptrend and for the past few years, it takes at least one month to recover. After recover, market went higher, hence most people usually wait for a correction to come and they buy more during this period when price is falling. However what we do is completely different from most people. As a trend follower we only start buying when price start rising and mid term trend change.

2) We dont stay Long in this correction period, instead we should have Short position for most of our counters.When market turn up again, we will go long again.

3) When market start falling, many people will try to find out the news of WHY it is dropping, the main reason which what i always tell my client is ''People are selling'' and if the price move alot, These people are the big boys.

4) Time to learn shorting? During the past 1 over years we have been preparing our clients to use CFD, just incase the bear strike. In current event, Shorting tend to be more profitable and you can also hedge your portfolio if market tank further. Now is still not late to learn shorting if you are going to remain to trading for the next 10-20years.

5) Believing you are ''Right'' can be very expensive. I see people turn profit into losses when the trend changes. and the loss just turn bigger. E.g believing we are in a bull run, believing market will rebound, believing the stock is already at a critical support. A better way is to believe in a system or strategy(regardless u are using TA, FA or Trendfollowing) that can tell u an entry and exit rather than our own judgement. Most importantly is to be consistent of what we are doing, so from there we can tune it to trade better. If u are doing discretionary trading, just make sure u have stoploss + a weekly/monthly risk budget so u wont gamble too much away.

6) Lastly, our Emotion. If you are going thru a tough time now, try to Feel what you feeling now. Write it down so next time u know how to handle this. Don't give up on learning how to beat the game, today if you are losing, somebody out there has made Your money. =)

Again.. this is NOT a Buy/sell call Just a review, just show some chart for ur information.

 Supergroup recently call for exit,

 Ezion fall 7% today, actually on last thursday our system call for exit and you should have exited this trade on last friday.

Osim up since last year September, this is one good demonstration of winning big. Since Sept 2012 this counter rise from $1.32 till  $1.95 on Friday. This trend took profit with 47% gain.

You Might be a Trend Following Trader if…..

“Trend  followers use reactive technical analysis. Instead of trying to predict a market direction, their strategy is to react to the market’s movements whenever they occur. This enables them to focus on the market’s actual moves and not get emotionally involved with trying to predict direction or duration.” -Michael Covel/ Trend Following

You Might be a Trend Following Trader if…..

1. …you love buying break outs above resistance and new all time highs.

2. …big trends make you happy not angry.

3. …you do not trade the concept of something being overbought you just use a trailing stop.

4. …your trading decisions are based on what is happening now, not your opinions, your fears of what will happen, or your hopes of what will happen later.

5. …you risk a little capital over and over again to make a lot of capital eventually.

6. …you are great at letting your winners run.

7. …trend followers don’t need a story they follow actual price action.

8. …you look for longs in a bull market and shorts in a bear market you are likely a trend follower.

9. …higher highs and higher lows are one of your best indicators to go long.

10. …you have been long $SPY for the majority of 2013 instead of trying to fight the parabolic move up.

    
    
    http://newtraderu.com/?p=3620

Your worst enemy in trading

Life Is Not About The People Who Act True To Your Face, It Is About The People Who Remain True Behind Your Back

When you are stressed out, and lose confidence, you are your own worst enemy. When in a bad slump, many traders sabotage themselves. They panic and denial sets in. They fail to admit their shortcomings and mistakes. Although it's easier said than done, flexibility and open-mindedness is the hallmark of success for a trader.  

If you can be flexible enough to admit your mistakes, admit your humanness and vulnerability, and avoid imbuing setbacks with personal significance, you'll be able to take losses in stride. You'll be able to stay objective and read the markets intuitively and precisely.

Trading is indeed a stressful business. There's pressure to do well, and the need to do well can interfere with your ability to cultivate the calm, winning mindset needed for financial success. But by staying grounded in realistic expectations rather than feeling beaten down, you can remain objective, free, and creative. And when you reach this state of being, you'll increase your chances of mastering the markets.

anonymous

7 Things Every Novice Traders And Investors Should Know

Anytime that you make a trade in the stock market, you need to know what you’re up against. Knowing the following seven points will not only help you in your trades, it will put you in the right frame of mind in order to be successful trader for the long term, which is what we all desire, and what really counts.

1. Don’t Throw Good Money After Bad – If you’ve got a losing stock, don’t make excuses or say things like “now it’s really become a bargain” or “it can only go up from here.” Those are famous last words. If you own an underperforming stock, sell it – today! Don’t wait, and certainly do not add to your shares of that stock. That is a recipe for full-blown disaster. There’s a reason that the stock you own is underperforming. That reason may not be obvious to you now, but eventually the reasons will come out. Your money can be put to much better use buying a stock that is in an uptrend and can make you money right now.

2. Don’t Buy Low and Sell High – We’ve heard this phrase all of our lives: “buy low and sell high.” You can’t go wrong with that advice, right? Actually, that’s wrong, because buying low implies buying a stock that has been on a losing streak, or one that is underperforming. Those are usually the worst kind of stocks to buy. The best stocks to buy are those that have firmly established a definite uptrend. So a more appropriate phrase might be, “buy high and sell higher.” Another piece of advice that goes along with this is as follows: don’t try to pick the bottom. Let someone else try to figure out what the bottom is. It could be that the stock has a few more weeks to go before it completely bottoms out. No use wasting your money guessing on where that point might be.

3. Don’t Swing for the Fences – Everyone wants to hit a home run once in a while, but making that your primary trading aim means you are risking your capital and your sanity. The only way to have long-term success in your trading career is by taking many small gains instead of a few big gains. Home runs are few and far between. They are a nice bonus when they happen, but don’t expect them every time. If a stock has made you some gains, take them. Don’t get greedy or expect a doubling or tripling in price, because you could end up losing what you have already gained, and sometimes a lot more. Take your profits, and move on to the next stock.

4. Know the Best Times of the Day to Trade – The best times of the trading day are the opening and the closing. More specifically, these times are the first hour and a half (9:30 to 11:00 am) and the last hour and a half (3:30 to 5:00 pm) that the stock market is open. That is when there is the most price movement and the highest volume. This is also why the opening and closing price quotes are used in mapping out stock charts. The volume around midday generally dies down quite a bit for one major reason: too many traders, especially the big institutional players (the ones who can noticeably move the market) are out to lunch. Some may take earlier lunches, and some may take later lunches, but there are always big players who have gone to lunch during this time. The people who they have left in charge are usually younger associates with less experience who don’t have much say in decision-making. So it’s best to avoid both buying and selling during this period of the day, as any price movements could be false signals or fake-outs.

5. Do Not queue to Buy or Sell Before the Market Open – Buying or selling a stock before the open (8:30-8:59 am), in what is known as a pre-market trade, is usually not recommended. During the pre-market period, there is a considerable lack of volume. As a result, a few small traders can quickly bid up the price of a stock to a fever pitch. If you try to buy this stock during this time, it will usually come back down after the market opens. Conversely, if you try to sell a stock pre-market, often times you would have sold for a better price if you have waited a minute or two (or five) after the opening bell. Because of the lack of volume, along with a real dearth of institutional investors, it’s best to avoid pre-market trades altogether.

6. Sometimes No Trade is the Best Trade – When markets are falling and volatility is running rampant, staying “on the sidelines” in an all-cash position is often the best policy. Now it’s true that opportunities do arise when market volatility starts going crazy, but this is not the time to be a hero. Wait out the storm. When there is blood in the streets, stay out of the way of the stampeding masses. Once the market sorts itself out, and volatility dies down, it becomes safe to get back in the market. That is also why you should never feel bad about getting your stops hit (getting “stopped out” of a trade). Those stops, which often indicate small losses, save you from much bigger losses later on, bigger losses which can stop you from trading altogether. In fact, what may appear as a small loss at first, may actually be a “gain” in your favor; for example, if you sell a stock for a $0.50 loss, but the stock then continues to lose another $2, you should not consider that trade as a loss.

7. Trading online yourself or calling your stockbroker to execute trades? – If you are not getting the results you hoped for in your trading, should you get professional assistance? Being human beings, we are all susceptible to the ebb and flow of our emotional states. One of the hardest things to do is to disengage your emotions when trading, whether those emotions involve fear (when your stocks are falling) or greed (when your stocks are rising), or just the everyday emotions that stem from your personal life. If you can find a trusted and reliable good stockbroker, you are then able to bypass a lot of your own emotional baggage, and follow the lead of someone who is experienced in the discipline of trading. Find someone who has a good track record, and is willing to back up their claims of success.

http://www.financial-spread-betting.com/Spreadbetting-advice.html 

Losing Trades are a Natural Part of Trading

Novice traders have a great deal of trouble accepting the notion that losing trades are a "natural" part of trading. Yet, if you are actively "cutting your losses" on trades that don't go in your favor, a losing trade can actually be thought of as a positive step, because it is the act of consistently limiting your losses to a manageable amount which allows you to keep coming back to trade another day. While losing money on a given trade is not in itself a good thing, the very act of keeping each individual loss to a minimum is a necessary step in trading profitably over the long run.

When starting out, traders often shoot for a high percentage of winning trades, even though that generally means taking profits quickly and missing some big winners. More experienced traders come to realize that the percentage of trades which are winners is often a meaningless statistic. In the end, the only thing that counts is if the amount earned on winning trades exceed the amount lost on losing trades. As long as that is the case, it matters little if 3 out of 10 trades are profitable or if 7 out of 10 trades are profitable. The key is to make alot when you win and to lose a little when you lose.

Came across this article in a forwarded email.