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QA WHAT is a Margin Call? QA: What is a Margin Call? You don't want this. It's an automatic instruction to close out your trade/s when you have insufficient funds in your portfolio. This is a safety mechanism for both you and your broker. It's also where either your trading platform, your broker or an automatic message via email will tell you to either deposit more funds into your account, close your trades or will warn you that your positions will be automatically closed. *DO YOU HAVE ANY TRADING QUESTION? Comment below or LIKE this post if you found it helpful. I've been trading for the last 20 years and it's my hobby to help provide analyses and help traders get on the right foot. I'm happy to have a platform like TradingView to do it :) Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
5 Market entry Orders Easily ExplainedBack in the old days, to action a trade you only had two easy options. Buy or sell… Fast-forward into the present day, and today you get slapped with five different options to choose from when you get into a trade. Right now, I’m going to simplify these five trading entry orders in way that you’ll never forget. Entry Order #1: Market Order The first entry order is the easiest to understand. This is where you’ll buy or sell at the most current market price. When you choose a market order, it is the quickest, most effective and easiest way to enter into your ‘long’ or ‘short’ trade at the current bid (buy) or offer (sell). Entry Order #2: BUY Limit When you place a ‘Buy Limit Order’, you’ll place your long trade entry price BELOW where the current price is trading at. Once the market price drops on or below the Buy Limit Order price, you will be automatically entered into your ‘long’ trade. EXAMPLE: BUY Limit If BHP Billiton’s share price is currently trading at R305 per share and you would like to buy (go long) at R300 per share, you’ll choose the Buy Limit Order. You’ll then wait for the market price to drop to your chosen order price or below it where you’ll then be automatically entered into your ‘long’ trade. Entry Order #3: SELL Limit When you place a ‘Sell Limit Order’, you’ll place your short trade entry price ABOVE where the current price is trading at. Once the market price hits this entry point or above it, you will be automatically entered into your ‘short’ trade. EXAMPLE: SELL Limit If BHP Billiton’s share price is currently trading at R300 per share and you would like to sell (go short) at R305 per share, you’ll choose the Sell Limit Order. You’ll then wait for the market price to rise to or above your chosen order price, where you’ll then be automatically entered into your ‘short’ trade. Entry Order #4: BUY Stop When you place a ‘Buy Stop Order’, you’ll place your long trade entry price ABOVE where the current price is trading at. Once the market price hits this entry point or above it, you will be automatically entered into your ‘long’ trade. EXAMPLE: BUY Stop If BHP Billiton’s share price is currently trading at R300 per share and you would like to buy (go long) at R305 per share, you’ll choose the Buy Stop Order. You’ll then wait for the market price to rise to or above your chosen order price, where you’ll then be automatically entered into your ‘long’ trade. Entry Order #5: SELL Stop When you place a ‘Sell Stop Order’, you’ll place your short trade entry price BELOW where the current price is trading at. Once the market price drops on or below the Sell Stop Order price, you will be automatically entered into your ‘short’ trade. EXAMPLE: SELL Stop If BHP Billiton’s share price is currently trading at R305 per share and you would like to sell (go short) at R300 per share, you’ll choose the Sell Stop Order. You’ll then wait for the market price to drop to your chosen order price or below it where you’ll then be automatically entered into your ‘short’ trade. I hope this helps with knowing how to place an entry order for next time! Trade well, live free... Timon MATI Trader
JSE:J200Education
by Timonrosso
Why you should never HOLD a boring trade - Rule I followGet in and get out in the shortest time possible. This is the science of successful trading. But what happens when a trade turns out to be more like a non-performing investment? When you hold a long-term trade, there are a few issues that will follow including the: Opportunity cost You can find other higher probability trades, instead of having your money tied up aimlessly in a sluggish market. Unnecessary impatience You’ll eventually feel rather anxious and frustrated holding onto a long-term trade, when you are better off trading in a market that is moving. The fake-out With an ongoing trade, the breakout pattern may fizzle out into a low probability fake-out trade (a trade that turns against you). I created a rule to avoid this situation from ever occurring again. I call it a time stop loss... After 7 weeks of holding a trade, exit the trade and look for a better opportunity. Worst case you take a smaller loss than you thought. Best case you take a smaller profit than you expected. But you'll stop holding trades that aren't performing and stop paying daily costs with trading.... Sound good? Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
2
My Interview with US Successful Trader Peter L. BrandtThe Internet has truly made the world a smaller and a more accessible place. In 2013, I stumbled across world-renown trader, author and owner Peter L. Brandt, on Twitter and his blog. I sent him a request for him to join one of the most elite South African trader groups on Skype. We had some fantastic chats over the next couple of days. There are words of wisdom that are far too essential to let them slip by. I’ve collated some of the timeless lessons Peter L. Brandt shared with me. I hope you enjoy the interview and find it useful for your trading career. Timon: I’ve never met a trader who trades long time-frames on Forex and commodities, do you believe technical charts can be used to predict market movements? Peter: I absolutely positively do NOT believe I can predict the markets. I absolutely positively do NOT believe charts are predictive tools any more than a MACD, COT, Moving Averages or anything else. My win rate is historically around 38%, although I made some changes to the system in an attempt to boost that to 45%. Generally, 100% of my profits come from 10% of my trades. It is a matter of trying to keep the other 90% from being a net loss. Timon: I agree with no one being able to predict the market movements, however, I believe in probability predictions. If there is a breakout to the upside, there is a higher probability for the market to continue moving in the direction of the breakout. What is your take on when unfavourable markets bring about a 15% or more drawdown on your portfolio? Peter: Drawdowns come with the territory. The question to always ask for discretionary traders is, whether their trading rules are out of sync with the markets? If they are out of sync with their rules? or both? If I know the problem are my rules being out of sync with the markets, I will never stop trading because I cannot time my rules. I may cut back on the size during a losing period. Timon: As my trading mentor and dear friend Igor Marinkovic says, “Your biggest drawdown is still to come and so is your biggest winning streak.” What are your thoughts on risk management principles? Peter: As a general rule — very general rule — an excellent trader with a great grasp of money management should have an average annual ROR that is 1.5 to 2 times their worst drawdown, over the past three or five years. For me, this is mandatory Even daily patterns are made up of many hourly patterns that morphed, which are made up of many 15-minute patterns that morphed etc... — I call it ‘Chart Morphology’. The trick is to determine which patterns are real and which patterns are more likely to morph. Sometimes a market reveals itself by failing. It is because of morphology that I seek patterns that are 10 to 12 weeks or longer. I’m also not worried about markets changing so drastically that all conventional systems stop working. The reason is my belief that markets are and have always been driven by fear, greed and money flows. These things will always be the same. Timon: Yes, that’s why I don’t believe in Holy Grail systems. I believe in finding the system that suits your personality and risk profile. Along the way, one should not feel scared about making mistakes, but be sure to avoid them from being too costly. What would be your final feedback on trading in general? Peter: Sounds like you are well on your way to a long and profitable career trading. Mistakes are the tuition charged by the markets for learning. Unfortunately, the markets often decide the tuition rate, not us. Hence, I only risk 0.5% per trade. You have to develop your own style. I have never met another truly skilled trader who has copied his or her style from another trader. This is true from a tactical standpoint, but from a money management standpoint most skilled traders think very much alike.
JSE:J200Education
by Timonrosso
2
Forget about motivation and implement this insteadThere is an over-estimated word that people say. I’m talking about MOTIVATION. “I need motivation to keep to a healthy diet.” “I need motivation to go to gym six days a week.” “I need motivation to see my friends.” If I needed motivation to trade, I would have stopped trading over a decade ago. From today, I want you to remove the word motivation from your life and replace it with… INTEGRATION Integration is when an action becomes a habit without any effort and without any force. You make it a part of your daily life where you don’t need the motivation to do something. To integrate something is to naturally enforce great discipline, passion and determination into your life. I bet you already integrate certain aspects into your life such as, Getting dressed Brushing your teeth Cooking food Just like you’ve integrated a few of the above aspects into your life, so too have I done with trading. For well over a decade, I have the same morning trading routine I’ve incorporated into my life. I make coffee Open my trading and chart platform Look at the main index Analyse charts using my MATI System Place my trade orders Let the market do its thing That’s it. It’s what I do. I don’t need the motivation or discipline from friends, family and colleagues when I follow my morning routine. I’ve just integrated trading into my routine. It’s time you stop the motivation and start integrating certain aspects into your life with everything that you are passionate about. Trade well. Timon (MATI Trader)
JSE:J200Education
by Timonrosso
5 Laws of Trading Success - EXPLAINED E=MC² Everything you need to know about the Universe, can be condensed into this tiny equation. What if there was a formula that unlocked the laws of trading the markets? I believe, there is… I call them the 5 Laws To Trading Success… 1. Markets You’ll need to be able to find and trade the best markets, at anytime and anywhere in the world with CFDs or through Spread Trading. 2. Method You’ll need to create and adopt proven, mechanical and consistently profitable trading strategies with a few entry and exit rules. 3. Money You’ll need to learn how to use essential money management rules in order to boost your winners, cut your losses and never blow your trading account. 4. Mind You’ll need to be able to improve your self-confidence and develop a successful trading mindset, in order to trade effortlessly with little worry and with less stress. 5. Miscellaneous You’ll need to adopt extra tips and tricks in order to boost your win rate, cut your trading holding time and preserve your portfolio. Once you incorporate all five equally important elements – around your personality, lifestyle and risk appetite – you’ll be able to create a timeless and profitable trading plan for the rest of your trading career. Trade well live free. MATI Trader
JSE:J200Education
by Timonrosso
1
How to Draw Legitimate TrendlinesHey Guys! Just wanted to post a quick lesson on "How to Draw Legitimate Trendlines". In this lesson, I explain the 3 rules that must be applied for a trendline to be legitimate. 1.) Trendline's attachment points must be on the wicks of a candle. Not the body of a candles. 2.) There must be at least 3 contact points on a trendline for it to become legitimate. 3.) There must be no break outs or surpasses of the trendline. Moreover, I demonstrate these with examples. That's it! I hope this helped! Have a great day! Ken
Education
by TradingForexPriceAction
1