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My trading strategies : Trade against the trapped trader!STRAT 11 : Basic premise As price continues in a trend, more and more traders keep piling into the same direction, hoping that the trend will continue and they will make money. However, at some point, the trend sharply reverses, breaking the market structure in opposite direction and trapping a whole bunch of retail traders in the direction of trend which just got reversed. We create a zone which identifies these trapped traders and then patiently wait for them to exit, and trade with limit orders in the direction of their exit. You can add additional confirmation signals from DXY's directions for the instruments which are highly correlated to DXY (EURUSD, USDCHF, etc)

Learning You can see today's rally in bank nifty . Generally what happens if there is a big rally then after achieving the top the index will retrace 20-30 to a maximum of 50 percent. Hence whenever you see green candles at 30 or 50 % levels of fibo retracement you can still go long in direction of the rally. This is the move where many retailers get trapped after selling and the market bounces sharply which you can see here. If it breaches 50 percent then you can say the trend may have changed for downward 300-500 points.

How to draw a trade zone for false breakout / liquidity hunt?Once you spot a location to trade from (be it a liquidity hunt, or a false breakout + market structure break) - that's only half of the job. The next most important step is to draw a correct zone which gives you a safe and reliable way to enter and define your risk. I've always found that drawing zones which help you define your entry & risk is an art, more so than science. And this doesn't work for me - because if it's not driven by a process, I'm bound to make mistakes in this important step. Hence, I wanted it to be more defined - to the level that it could be given to a programmer who could code it. Primary method of drawing the zone 1) Find the candle that generated the signal 2) Draw a rectangle into left side of price on the signal candle (green rectangle) For SHORT signal => 3) Draw (yellow) zone using the highest + last UP candle which exited this rectangle For LONG signal => 3) Draw (yellow) zone using the lowest + last DOWN candle which exited this rectangle 4) If the candle right after signal candle does not test this zone, then trade this zone as a signal - ELSE - look for the secondary way of drawing the zone Secondary method of drawing the zone 1) Find the signal candle and look left of it For SHORT signal => 2) Draw zone using last UP candle which broke an HH pivot For LONG signal => 2) Draw zone using last DOWN candle which broke an LL pivot 3) Discard the zone if price revisited that zone before giving the signal There are many reasons why these zones work (if your overall trade is correct) - These will be the candles which are guaranteed to be engulfed by the signal making candle - If these are institutional trades, most likely it's here where they set the fakeout trap. Hence, when price comes back to these zones, they have no need to take prices beyond your stop loss as there's no more liquidity there - If these are those amateur folks who were trading the breakout, this is where the smartest of them bought/sold and will be the first in line to exit If you have feedback on how to improve this zone drawing process, please leave your feedback in the comments below. Cheers!

Best investors of our time Here are the best. Under 10 years it's too luck based, and even up to 20 years. So all the people on the list will always be old. Warren Buffet & Jesse Livermore started investing full time in their teens (Warren started at 8 but the track record starts later maybe late teens or twenties, Jesse started at 14 I began the track record estimate at 16), George Soros started in his 30s, Jim Simons started in his 40s and his monstruous medallion fund was launched on his 50th year. For Jesse Livermore I looked at Dow Jones dividends reinvested returns from 1893 to 1930 which were about 11%, and he managed to grow to 10k in 1893, made 100 million in 1929 (so he had 100,000k + x) so he made at the very least 30% a year... Why I placed him at 18-19% over the stock market returns, but it is possible he made more than this. In any case he got better results than Soros. Special mention: Carl Ihcan got returns of 26% from 1968 to 2011 versus Buffet 20% (or at least that's the book value of Berkshire), while the S&P with dividends reinvested over that period produced 9.5% so Buffet overperformed by a little over 10% and Ihcan by 16% putting him above Warren Buffet (but for less long) and close to Jesse Livermore & George Soros. But since then Ihcan has done terribly, so Warren Buffet is still numero uno. Jim Simons secretive medallion fund made 66% a year over 30 years so that's an overperformance of pretty much 55%. This is not where all his money is, and the fund is capped so there won't be growth futher (for medallion fund, but overall he'll still make lots of money via medaillion flat gains & his other funds). The overrall perf is so off the charts anyway that in any case he is clearly number 1. In the game we got: - An overwhelming majority of sheep shadowing the stock market and making sure they perform same as the rest of the herd every quarter - Alot of fundamental investors (including short sellers like Jim Chanos I guess) - A couple of value investors - A handful of speculators (why bother if you can't beat the stock market anyway? Investors that speculate on the side to reduce portfolio volatility not included) - A herd of retail traders that look at oversold indicators, fight obvious trends, and think they'll beat Livermore that could read & write at 3 years old - 1 secretive mathematician/geometrist/pattern recognition master (wink wink) that finds patterns in enormous amounts of data - Hundreds of day trading educators that claim they can massively outperform a one in 100 million genius that gets his edge from seeing things others cannot

The 5 REAL Reasons why Traders Fail MRWIZARD