In this video, I share how the tactical aspects of using price action and market internals can be used to identify and capture major market reversals and review this past week's sell off in the SPY as a case study.
This week’s lesson we will be brief however it will cover an essential risk management concept. If you are new to risk management concepts then understanding this lesson will allow you to objectively understand the strengths of your trading system, how and where you can improve your results, and gain an appreciation for how much risk you should be taking on. There are 2 measures which all traders need to be tracking regardless of your chosen method or timeframe. Those 2 measures are: Win percentage (W) Gain vs loss ratio (R) The win percentage (W) is the probability that a […]
In my previous post I recounted my experience and some of the trading struggles I faced when I began trading. My breakthrough came when I finally owned the journey of becoming a masterful trader. Becoming a successful trader isn’t a destination – it’s a process. It’s a process of moving from unconscious incompetence to ultimately unconscious competence. In your pursuit towards trading mastery let the following 9 steps guide your actions and intentions. These steps are adapted from the book – Handbook of Coaching – A Developmental Approach. 1. Know yourself. “It’s not the mountain we conquer but ourselves.” […]
Just several years ago I remember looking at my trading account balance and asking myself, “Why is it that I keep losing money?”. I still can remember how incredibly frustrated I felt. On some days I felt so incredibly close to breaking through yet at the end of each month my account balanced showed that I was only slightly above break even or in the red. I wanted to be successful at trading more than anything and was putting in hours of screen time, sacrificing my social life and pouring hours into after-hours homework and research, but the results just weren’t […]
How are you determining what are your best and most profitable setups? Do you know the average profitability and probability of profitability of each of your setups? Do you know your trade setups compare by the day of the week? Or better yet by the time of day? How do you know when it’s time to add size to your trades? How do you know if a setup is losing it’s edge? And how do you distinguish whether it’s because of the market conditions or because of your personal execution? Ahhh Journaling – the dull red headed step child of trading. […]