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MC DONALD'S TRADING LESSONSStory time… One of the greatest success stories of all time, is with the company which is based on the glorious golden arches we still see today. Mc Donalds… It all started in 1940 where, two brothers, Maurice and Richard “Dick” Mc Donald’s made a small fortune selling hamburgers in San Bernardino, California… They took a product and an idea and turned it into a fast, convenient and consistently profitable business. Once they mastered their strategy and system then they introduced Ray Croc (a shrewd American businessman) into an agreement to build more Mc Donalds… However, he barely made enough profits to sustain, find more franchisees and even pay off his expenses… That’s when Harry Sonneborn came about where he made Ray Croc realise, he was in the land business rather than the restaurant business… Ray Kroc explained… “Pretty simple, really. Franchisee finds a piece of land he likes, gets a lease, usually 20 years, takes out a construction loan, throws up a building, and off he goes.” Sonneborne then said: “You don’t seem to realize what business you’re in. You’re not in the burger business. You’re in the real estate business.” This conversation lead to the global expansion of McDonald’s, turning it into the most successful fast food corporation in the world. In this article, I’m not going to talk about Ray Kroc, but instead how the brother’s starting concept applies to trading. Here are three lessons I learnt from Mc Donald’s Success #1: Less is more… The brothers were geniuses from the start… When something didn’t work, they threw it out… When something showed to work, they harnessed it, optimised it and improved it… They did this with data. The brothers took sales data to compare which products were making more money. They found that 80% of their sales in the last 3 years came from simple burgers. Each burger was made with precise ingredients. Any deviation and this caused sales to drop. The rest of the 20% were drinks and barbeque. So the brothers made their life easy and got rid of the barbeque pit completely. They also cut their menu down from 25 items to just 11 items. It mainly had Burgers Fries Milkshakes and Soft drinks They said let’s do less of what’s not helping sales and focus on what is making the most revenue. Once they got rid of the barbeque pit the brothers later on systematised the burger making process. So how does this relate to trading… Less is more is one of my most powerful quotes when it comes to trading… You need to cut out a LOT of data to maximise your returns… Find one or two systems that suit you. Minimise the number of markets, time frames and charts to look at. Cut out unnecessary indicators that conflict with the systems signals and frequency. Choose a certain time that works best for your system. Stick to 1 or two financial instruments to trade. Only have 1 or 2 or max 3 trading accounts with reason. It will take time and effort on your side to cut out what needs to be cut, but you won’t regret it in the long run… As Mc Donald’s did… Take a product improve it drastically then sell it to the masses. #2: Find a system to repeat over and over With Mc Donald’s did you know… They took a tennis court and drew out the compartments of making a burger. They then orchestrated it with their employees until the flow and speed was at the most optimised level. Once they found a winning system, reduced the time to make a burger and optimise the process – they were able to even drop the price to appeal more demand… At the time, they could drop the burger to 15 cents… With trading, you know this… You’ll need to find, adopt, follow and repeat your turn-key system. It doesn’t matter whether it takes you 2 months, 2 years or even 7 years to get right. Once you have it, you’ll be able to generate consistent results year in and year out. Just like the cycle of burgers, you’ll have your very own consistent cycle of success through trading… Also, with your one system you’ll be able to optimise it and improve it when conditions change… This brings us to the third lesson… #3: “We love to see you smile” This was one of Mc Donald’s campaign they used from 2000-2003, which has stuck… Not only does Mc Donald’s keep to their winning formula, systems, products and manner – but they also adapt to change… They continue to offer new items on the menu’s as time’s change… From Happy Meals, Toys, Lollipops, Café’s, Ice creams, food cultural adaptions to even Vegan food… They think of everything to adapt to change… BUT! They don’t stop offering their winning products that bring in revenue. With trading you need to also evolve as a trader and adapt to change. Sure, your system will remain consistent. Sure, your risk management won’t change… But there are certain elements that require change such as… New markets: You might want to incorporate your system with new markets i.e. AI, Electric Vehicles, Metaverse, Cannabis, Energy alternatives, Crypto, NFTs. AI (with ChatGPT, DALLEE, BING) and so on… New instruments: Also, we might need to evolve from the current financial instruments we’re trading… Once day, CFDs and Spread Betting might be a thing of the past. I personally have evolved from shares, warrants, futures to ETFs. You never know what will be next… New automations: We might soon have robots and AI to use out system to find trades and execute them. You get the point… If you want to be successful with trading you have to understand the power of systems to repeat… This way the system will do the job for you… Next time you’re at Mc Donald’s, you’ll see what I mean.
NYSE:MCDEducation
by Timonrosso
3 Amazing Lessons I learnt from McDonaldsI love McDonalds. There was a time where I was ranking different burgers from around the world. UK, France, South Africa, Dubai, America, Switzerland and Greece. And I only ranked about 4 burgers an 8 out of 10. I know you’re going to hate but… McDonalds Big Mc remains one of them I ranked 8 out of 10 – Delicious!. Anyway, so I love the burger, I love the story – if you’ve seen “The Founder” movie. And I love the lessons learned from the success story. And since 2013, I always enjoy writing articles on how other companies, entities and even individuals can teach you indirectly about trading. McDonalds is the one in the spot light for today! 3 lessons I learnt from McDonalds! The fast-food giant has been able to achieve massive success by keeping things simple, sticking to a proven system, and adapting to changes in the market. These same principles can be applied to trading the financial Lesson #1: Less is more… The company has built its success on a relatively small menu of simple, easy-to-understand options. Also the way to make the meals are so simple with easy ingredients you probably have at home. Well, traders can achieve better results by focusing on: • Small number of markets or securities • One or two systems • One or two time frames • One to three money management rules • Less time trading and more time holding Lesson #2: Find a System to Repeat The company has built a highly efficient and repeatable system for making and delivering food. Remember the scene in the movie “The Founder” where Ray Croc organised his system within a tennis court until mastered? It’s simple, it works – and it’s never died out. This has allowed them to replicate their success across thousands of locations worldwide. With trading, you should also look for a system that you can repeat and stick with it. I mean, by now my MATI Trader System – must feel like child’s play to you because of how I have taught you the system in and out. And I have shared with you hundreds of trade line ups already with Trading View. And with you seeing it the system everyday, it must feel second nature for spotting a trade by now right? Well, just like Rocket Science isn’t rocket science to a rocket scientist – That’s why you feel that way about my MATI Trader System… And if you have a system that you swear by, you’ll feel the same way I do. This can help you to avoid the pitfall of constantly switching strategies and missing out on long-term gains. Lesson #3: Adapt to Change McDonald's has also been able to adapt to changes in the market, such as: • Environment concerns • Consumer demand for healthier options • Relevant and trendy toys in Happy Meals • New neutral colour style restaurant catering to all nations and cultures around the world • More options for vegans and vegetarians They have and has been able to stay relevant and successful for decades. Similarly, traders need to be able to adapt to changes in the markets, whether it: Adding new markets to your watchlist Adjusting your Risk to Reward during favourable and unfavourable environments Shifts in economic conditions or changes in consumer preferences. This might mean adjusting your trading strategy slightly or seeking out new opportunities in different markets. You need to be able to adapt to change which is crucial for long-term success in the financial markets. And so, McDonald's has been successful by keeping things simple, sticking to a repeatable system, and adapting to change. Apply these principles to your own trading and you’ll find trading to be a walk in the park in the medium to long run… Do you like McDonalds and what would you rate the Big Mc? I won’t judge. Trade well, live free. Timon MATI Trader (Financial trader since 2003)
NYSE:MCDEducation
by Timonrosso
A primer on Key Earnings SupportIn this chart I'm illustrating a few trading setups that took place in $MCD following each earnings report for a year. The indicators you see in the chart are 'Average True Range' and 'Earnings Price Support' from @timwest's 'Key Hidden Levels' indicator pack. Every time a company reports earnings, analysts, investors, portfolio managers, traders, you name it...are paying close attention on the data that comes out, and the prices that the stock is trading for at all times, this normally starts one or several days before the report, and lasts for a day or a couple days after the report. The indicator my mentor devised plots a technical level that helps us map how far prices can move, and where to seek low risk trading opportunities on subsequent retests of past reports' levels. I use the ATR indicator to define the size of the stop losses that I use, which in turns helps me know how many shares to buy or sell when trading with this tool. To use this you need a method to determine the main trend direction, which can be fundamental or technical, or a combination of both. Time@Mode is the one @timwest created, and the one I use, which together with the proprietary indicators from the 'Key Hidden Levels' suite helps me find low risk trades that have a very good batting average. Hope you found this post helpful, and if you did, check out my site here: www.fb.me I offer trading signals since 2015, covering all markets I trade, or focusing only on specific markets according to each client's needs. Cheers, Ivan Labrie.
NYSE:MCDEducation
by IvanLabrie
2
Applying Elliott Wave Theory on MC DONALDS by ThinkingAntsOkToday we will Use Elliott Wave Theory as a method to bring extra information to the chart, remember that this is a tool that must be combined with other trading analysis methods, and the final objective is to bring a clear framework for decision making. We will give a Real example on MC DONALDS chart, Elliot Wave Theory was developed by Ralph Nelson Elliott by observing the behavior of the Stock Market. This is a complex Theory, if you are interested in learning more about this, we recommend Robert Balan´s Book "Elliott Wave Principle" Remember the Basic 3 Rules of Elliot Wave Theory: 1) Wave 2 will not retrace past the starting point of wave 1. If the impulse waves are going up, wave 2 cannot go below the origin of wave 1. If the impulse sequence is going down, wave 2 cannot exceed the peak from whence wave 1 originated. 2) Wave 3 can not be the shortest of the "impulsive waves". Wave 3 is not necessarily the longest, but it is almost always the longest 3) In an upward sequence. Wave 4 cannot overlap the peak of wave 1. In a downward sequence, Wave 4 can not rally above the bottom of Wave 1. If any of these combinations is violated the particular sequence is not impulsive in nature. Another important concept is that Markets are Fractals by Nature, that means that the structures that you find on a 1D chart, for example, will be replicated on lower timeframes like 4HS. This Rule keeps going independently of the timeframe you are working on, the same happens on a 1H chart and a 10 minutes Chart. That's the reason you will see different symbols on the Elliott Count on this Example. Observe how we can make a new Count on the 5th Wave we see on the Weekly Chart (is composed by a new 12345 full count). And if we go to the Daily chart, we can make a new count over the 5th wave of the 5th wave, I know this might sound complex but when you take the idea of Fractals, this process becomes really logical. In this case, Elliott Wave Theory will tell us that all the Cycles are completed, if we combine this with price action for example (using trendlines) we can see that also the price is against a major trendline that is working as resistance, and the last Item will be the Divergence on MACD. This doesn't mean that the price will go in that direction, but if we have to put our money on something, for sure you want to do it in the strongest direction of your analysis. Hope this Educational post is Usefull for People interested in Elliot Wave Theory. Thinking Ants
NYSE:MCDEducation
by ThinkingAntsOk
3