STOP Impulse Trading at once – 5 Actions to takeOne of the most dangerous traits a trader can adopt is…
Impulse Trading.
This is where they take trades mainly on emotions and gut rather than sound financial analysis.
This means, more risk, more irrational choices and that can lead to steering away from what works.
Your proven trading strategy!
And the end result, you’ll lose in the long term and end up with less confidence for your future endeavours as a trader.
So let’s come up with certain ways for you to STOP the impulse trading.
ACTION #1: Give it an hour
When you feel the urge to make a trade based on emotions, it can be helpful to step back and take a break.
One great way is to wait for an hour before you make any decisions.
Go get something to eat, grab a beer, go walk your crocodile or go do something other than trading.
Close your computer if you feel you’re about to impulse trade.
This break can help you regain a sense of perspective and avoid making impulsive decisions that you may later regret.
ACTION #2: Remember your long term goal
I always say…
Financial trading is a long-term game.
You need to have a clear and specific long-term goal in mind that guides your decisions.
When you feel the urge to make an impulsive trade, take a moment remember your trading record, journal and what works.
Also, remember it’s not about the one trade but the hundreds of trades later…
Ask yourself whether this trade aligns with your overall strategy or whether it’s just a momentary impulse.
This can help you stay focused and disciplined in your trading.
ACTION #3: Revisit your journal
Your journal is pretty much your game-plan.
It foretells of the most probable outcome when you follow it.
And it should include a record of all your trades, your thoughts and feelings at the time of the trade, and the results of the trade.
When you feel the urge to make an impulsive trade, take some time to revisit your journal.
Look at your past trades and the results they produced.
My favourite…
Go look at your drawdowns. Go look at your biggest drawdowns.
Then go see how you came out of the drawdowns and your portfolio headed to NEW all time highs.
There is no better feeling than that. Do this and I doubt you’ll want to take any impulse trades again.
ACTION #4: Read more trading psychology
Mind is everything with trading.
It’s a great way to develop your discipline and avoid impulse trading. Either go read trading books, articles, watch YouTubes or just save this article.
I can almost guarantee… If you read this article, when you feel like taking an impulse trade – You will stop that primitive way of thinking.
You’ll stop that inner conscience from trying to ruin your trading performance.
ACTION #5: Avoid Overtrading
If you find you take MANY trades at a time…
You’ll be more inclined of taking impulse trades, because you feel you need to take more.
Try and have a cap when it comes to the number of trades you hold.
I used to never hold more than 5 trades.
But over time, with adopting into new markets and evolved markets – that number gone up.
Now I make sure I never have more than 12 trades opened at any one time.
Remember to give yourself time to reflect, keep your long-term goals in mind, revisit your journal, and read more about trading psychology.
Let’s bring back the 5 actions to avoid taking any impulse trades.
ACTION #1: Give it an hour
ACTION #2: Remember your long term goal
ACTION #3: Revisit your journal
ACTION #4: Read more trading psychology
ACTION #5: Avoid Overtrading
Let me know if this was useful in the comments.
J200 trade ideas
JSE ALSI 40 Symmetrical Triangle wait for break up to 81,637Symmetrical Triangle seems to be forming on the JSE ALSI 40.
This is where price constricts into a triangle that is not facing up or down.
We now need the price to break above the Apex, which will send the price higher.
The beauty about Symmetrical Triangles, is that they are generally continuation patterns to the prior trend.
With the up flag pole before the triangle confirmed, means we will expect a break up.
Price>200
RSI>50
Target 81,637
Don't listen to your inner NINNY! I can't swear on TV :(Traders have 1 JOB!.
To just take the trade.
All the other stuff is semantics.
But most times you’ll find your inner B I mean Ninny takes over.
And it tells you:
~ Don’t take the trade.
~ You’ll lose money.
~ The stars are not aligned!
~ Blah blah fish paste!
You need to stop listening to your inner F - inny, or it will destroy your chances of success.
So let’s talk about the 4 common excuses traders make and how to overcome them.
Excuse #1: I’m not in the mood
The markets are awake with or without you.
People are making money and doing things in this world.
Others are taking ice baths, cold showers, hitting the gym twice a day.
They are doing the hard. You need to stop the excuses of not in the mood, get off the couch and take action for your life.
You are in control of your life, what you do and what you make.
Do what you need to. Create a schedule that includes time for exercise, meditation, and of course trading.
Excuse #2: External news event kicked in
Financial markets are subject to external events that can impact trading decisions.
These events can include political developments, natural disasters, or major economic announcements.
The problem is. These events come daily. Every day there are new news announcements, GDP numbers, employment and jobs reports, Interest rates, inflation rates etc…If you’re not taking a trade because of one of these announcements, I’m sorry but.
That’s just an excuse!
If you must. Write down a few IMPORTANT news announcements that you want to watch for when you trade.
Maybe interest rates in America. Maybe NFP reports, Maybe during FOMC meetings.
But do the research and find out what news events are worthy to NOT take a trade.
I’ve been in the markets for 20 years and I haven’t found one worthy news announcement other than NFP for Forex trading.
Excuse #3: Market doesn’t feel right
To you it doesn’t feel right.
To you, you think the market is some sentimental machine that feels healthy or sick.
To me, I see prices, risks and probabilities.
I see a robot and mechanical processes with billions of dollars streaming in and out at any one second, the market is opened.
You need to develop an objective criteria for assessing market conditions. Have tunnel vision and stop trying to predict the temperature of the market.
It’s not human.
There is buying.
There is selling.
There is a repetition of that every day.
Market doesn’t feel right, is an excuse.
Excuse #4: System lined up but it’s not perfect
Ok so you have a system good.
You have a strict strategy to follow, great.
But the system lined up and it’s not perfect.
As I mentioned before. You need to write down the rules and criteria that you can use to identify opportunities and risks.
There are only three types of trades in this world.
HIGH probability trade – Market lined up perfectly according to the system.
MEDIUM probability trade – Market almost lined up perfectly but I will still take the trade and risk a little less.
NO trade – Market did NOT line up and therefore I’m not taking a trade.
So, are you going to continue to listen to your inner Busy Ninny or are you going to start making money the right way?
Trading Success Stoppers Part 2 Trading can be an excellent way to grow your wealth.
But as you may know by now, it’s not a straightforward path without obstacles.
In fact, several challenges can hinder traders from achieving success in the field.
Here are four more significant success stoppers that traders face in their trading efforts.
No Support from Anyone
Trading can be a lonely and isolating field.
Once you have the strategy, rules and mindset in place – it’s all on you.
Initially you may want strong support from a community of traders or confirmation ideas that you’re on the right path.
My situation is different. Because I have traded for the last 20 years, it did become very lonely and it felt like I had more to offer. With TradingView at least I have a community to talk to and help out where I can.
So you see, having a support system can make all the difference.
Without support, it can be challenging to stay motivated and focused on your goals. And in the end you’ll realise there is more to trading than just making money.
Solution: The key is to find a mentor or a community of traders who can support and guide you.
Join online trading forums or attending trading events can be an excellent way to connect with other traders and build a support system.
You can also consider hiring a coach or mentor to guide you and provide feedback on your trading strategies.
Success stopper #2: Laziness
Look! Trading requires discipline, focus, and hard work, and without these qualities, it can be difficult to achieve your goals.
Lazy traders are the worst.
They lack the motivation, drive, and discipline that’s necessary to research, analyse, journal and trade in order make informed decisions.
You also need to be able to get up off your ass and trade each week. Sure, you can take off a few days a week – that’s the beauty. But don’t let laziness stop you for more than a few days!
Solution: The key to overcoming laziness is to set clear goals and create a routine that supports your trading activities.
Set aside specific times each day or week to research the markets, analyze charts, and execute trades.
It can also be helpful to create a trading plan that outlines your goals and strategies, which can help keep you focused and motivated.
Success stopper #3: No Money to Trade
This is more of an excuse than a success stopper.
You know you can paper trade until you nail the trading game, until you can start putting in capital.
And when you do save money, you’ll be able to learn the real world of trading and understand the slippage, costs, liquidity, margin trading etc…
Solution: The key to overcoming this challenge is to start small and build your way up.
Consider opening a demo account to practice trading without risking real money.
You can also start by trading with a small amount of capital and gradually increase your investment as you become more comfortable and confident in your abilities.
Success stopper #4: No Skills and Talents
That’s what you think.
But I honestly believe I can take just about anyone with a bit of computer experience and show them how to make a consistent income trading the markets.
Trading requires a specific set of skills, such as market analysis, risk management, and technical analysis. And these skills CAN be taught.
Whether you’re a slow learner or a fast learner, you can learn the ways.
Solution: The key to overcoming this challenge is to invest in your education and development.
Take courses or attend seminars to learn the necessary skills and techniques for successful trading.
You can also consider working with a mentor or coach to help you improve your trading skills and develop your talents.
So what is stopping you from your trading success?
I can only think of 1 thing.
Go look at the mirror.
SA40 index Daily Long IdeaALSI top40 index could be forming a IHS pattern on the daily chart, if we trade higher and get a close above 73300, the upside target can be reached into new all time highs
Trading Success Stoppers Part 1Trading as you know is a fantastic alternative to grow your wealth.
However, it is not without its challenges.
In fact, there are several success stoppers that traders face that can derail their trading efforts.
Let’s look at four of them.
STOPPER #1: Same Old Routine
One of the biggest success stoppers for a trader is falling into the same old routine.
It is easy to get into a rut and continue doing the same things day in and day out.
However, this can lead to a lack of progress and stagnant trading results.
Yes you need the same ‘ol strategy, risk management rules and criteria for a consistent track record.
But you also need to be open to try new things and adapting to changing market conditions.
You can do this by:
~ Backtesting and forward testing other strategies.
~ Adapting new markets into your trading
~ Identifying new market environments
~ Even improving your current indicators and chart layouts
Always looking out for better brokers, chart platforms and sources to help your trading
Improving your calculators and trading tools.
STOPPER #2: Self-Doubt
This can cripple a trader’s confidence and ability to make sound trading decisions.
It is natural to experience doubts and fears when trading.
But make sure you don’t let it take over and lead you to emotional decisions, doubting during drawdowns and missed trading opportunities because of how you feel rather than what the charts say.
To overcome this success stopper, you should focus on building your confidence and self-belief through trusting your proven track record.
You can do this by keeping a trading journal to track your successes and failure.
Also seek out the advice of a mentor or coach, and regularly review their trading plan to ensure they are on the right track – to help with your own confidence.
STOPPER #3: Procrastination
Procrastination is a common success stopper for traders.
It is easy to put off making trading decisions or taking action on a new trading strategy.
However, procrastination can lead to you never taking action which means:
No trades
No consistency
No growth
No results
To overcome this success stopper, traders should develop a sense of urgency and take action quickly.
Adapt the 1,2,3 JUST DO IT mentality as I mentioned in the previous video.
Break down larger tasks into bite sized and more manageable ones and set deadlines to complete on time.
STOPPER #4: No Big Idea
Finally, having no big idea or vision for their trading can be a major success stopper for traders.
You need to know your goals, strategy, risk profile and trading personality.
When you do this you will have the BIG idea on what you need to progress and thrive.
Stop these stoppers before they stop you from achieving trading greatness.
Tune in tomorrow for Part 2!
How to get your Trading DoneTrading is the easiest hardest way to become financially free.
You need to follow a simple approach and then have the discipline to do it again and again for the rest of your life.
It can at first be a daunting task because you have to implement an element of risk.
But before you know it, you’ll be free from your financial shackles and struggle.
Here are five tips to help you get your financial trading done efficiently and effectively.
Step #1: Always have your cheat sheet with you.
A cheat sheet is a list of rules that you have set for yourself when trading.
These rules are from how to spot trading signals, getting your trading setup ready, to implementing the maximum amount of money you’re willing to risk on a trade to the indicators you look for when deciding on a trade.
Always make sure you have your cheat sheet with you to have a clear set of rules to follow. This way you’ll avoid making impulsive decisions.
Step #2: Look for the right trading setups with high probability trades.
Before you enter a trade, it’s essential to look for the right trading setup.
A trading setup is a specific combination of conditions that must be met before you enter a trade.
For example, you may look for a bullish continuation or reversal price breakout strategy, combined with a moving average crossover and RSI divergence indicator.
Once you have identified the right trading setup, you can then look for high probability trades within that setup.
Step #3: Execute your trades or just take the trade.
Once you have identified a high probability trade, it’s time to execute the trade.
When executing a trade, it’s important to remember that the market can be unpredictable.
You may have done everything right and still end up losing money on a trade.
Therefore, it’s essential to take the trade, execute your plan, and move on to the next opportunity.
Step #4: Journal your trades
It’s essential to keep a record of all your trades, including the reasons why you entered and exited the trade.
This can help you identify patterns in your trading and make adjustments to your strategy as needed.
This way you can record, monitor and also identify areas where you can improve and re-evaluate your trading plan accordingly.
Step #5: Rinse and repeat the process.
Finally, once you have executed a trade, recorded it in your journal, and made any necessary adjustments to your trading plan, it’s time to rinse and repeat the process.
Trading is a continuous process.
There will always be new opportunities to explore and it’s ALWAYS the right time to start or continue.
If you follow the above steps, you’ll increase your chances of success and make the most of your trading endeavours.
5 TIF Trading Orders You need to KnowQ. What are the 5 common TIF (Time In Force) Trading Orders to know?
GTC: “Good Till Cancelled”
Where the order remains active until you manually cancel it.
FOK: “Fill or Kill”
This type of order requires immediate execution of the entire order quantity.
If the full amount is not executed, it is then cancelled.
GTD: “Good Till Date”
Where you can specify a specific date until which the order is valid.
MIT: “Market if Touched”
This order is triggered when the market price reaches a specified level (trigger price).
It then becomes a market order and is executed at the best available price.
LIT: “Limit if Touched”
If a Limit if Touched order is triggered when the market price reaches a chosen or trigger price.
GTC (Good Till Cancelled).
This way you’ll know that your position (order) will stay in the market until you cancel it manually.
What trading question do you have? Let me know in the comments.
Can you think of anymore?
Revenge Trading is Catastrophic - Here's why!Do you feel it in your bones.
Where do you want to:
Take trades to make up for losses?
Take trades for the sake of trading?
Take trades out of emotions and gut (gat feel)?
Take trades to make a quick buck?
If so, you have felt the power and dangers of Revenge Trading.
TO put it blunt.
Revenge trading is detrimental, dangerous and just plain stupid for any traders to succumb to.
I feel like I can finish the article already as I have said what I needed to.
Not just yet! You need to understand why Revenge Trading is to your downfall.
Let’s start with these:
#1: Impulsive decisions are dangerous
In the heat of the moment, you just want to take an impulsive trade.
This can lead to disastrous outcomes.
Revenge trading happens when you want to try recoup losses quickly.
And so traders abandon their strategies, systems and rules.
And they take on unwarranted risks.
This will stop you from making good, calculated, logical and well-informed decisions based on sound reasoning and market research.
Don’t do it!
#2: Trading on emotions is deadly
Emotions such as fear, greed, and frustration have no place in trading.
Revenge trading is fueled by these emotions.
And this causes traders to deviate and steer way from their plans by instead acting irrationally.
What then? Bigger losses, unnecessary risks to the portfolio and skewed results on your trackrecord.
Your hard earned and timely worked on journal!
Is it worth it?
I think not.
Cut out your emotions and work at being calm and take on the more logical approach, devoid of emotional interference.
#3: Violating trading rules is damaging
Every trader should have a set of well-defined trading rules in place.
Not just rules but also a list of criteria.
Revenge trading typically involves disregarding these rules and just going against everything you should do.
Basically, what the average dumb retail trader does which results in 98% of traders losing in this financial endeavour.
Violate your rules and there will be severe consequences.
Loss of confidence.
Bigger losses
More losses
Erratic wins (which make you want to do it again and again and again)
Not worth it.
Don’t do it.
#4: Too much unnecessary risk
You know you’re using your hard earned cash to trade and build a portfolio right?
So why are you burning it and cutting it up like it’s nothing?
This reckless behavior can lead to bigger drawdowns and can even wipe out trading accounts entirely.
Don’t do it!
#5: Creates an ongoing cycle of doing it again
Great! Once you have violated your rules, gone against your strategy and pretty much gone ape or rogue on trading – it takes a lot to gain ones integrity and discipline back.
One of the most dangerous aspects of revenge trading is its cyclical nature.
Break the rule, you’ll break it again.
Cheat, you’ll cheat again.
Enter a gambling mentality and you’re beeped.
Bank a winning rogue trade and you’ll succumb to the trading world of discretionary action.
However, if these subsequent trades result in further losses, the cycle repeats, trapping traders in a never-ending loop of revenge trading.
Breaking free from this destructive pattern will then need a ton of discipline, self-awareness, and a commitment to sticking to one’s trading plan.
So please be careful.
16 Trading Mistakes you’re still MakingIf you’re still failing as a trader.
You could be making one or more of these common and lethal mistakes.
#1: No Structured Approach
If you’re not following a structured approach to evaluate potential trades, you’re likely to make mistakes.
It’s essential to have a well-defined plan that takes into account your personality, risk tolerance and trading goals.
#2: You trade on Emotions
Trading decisions should be based on facts and analysis, not emotions or hunches.
If you’re relying solely on your gut feeling, you may miss important information and make poor trading decisions.
Trust the chart not your heart. (I like that!)
#3: Not researching each market per strategy
Even if you have a trading strategy, you need to research, back test and forward test EACH market to see if they are conducive with your trading.
For example. I have traded Forex since the get-go and yet the EUR/USD (Euro Versus US Dollar) is still the one currency that NEVER works for my system.
This is the kind of research you should know, before you make a trade or risk a trade.
Lack of research can lead to costly mistakes and missed opportunities.
#4: No Specific Trade Setup
It’s important to identify a specific trade setup before making a trade.
You need to determine and pinpoint your exact entry and exit points, stop loss level, and price targets volume and margin requirements.
#5: Not waiting for your high probability setup
It’s important to wait for a clear trade trigger before making a trade.
This way you’ll know what the right market, at the right time is and what you need to do to minimize your risk and maximise your profit potential.
#6: Not putting in your stop loss
When you trade you need to remember something.
You need to set your stop loss to limit your losses.
You need to set your stop loss to follow a plan.
You need to set your stop loss to prevent an emotional reaction to your trading where you can take significant losses.
Always, always always set a stop loss level with each trade and stick to it.
#7: Setting a tight stop loss
If you set your stop loss level too close to the entry price, it will increase your chance of getting stopped out.
It’s important to set a stop loss level that considers market volatility and your risk tolerance.
#8: No clear exit price target
Yes, a stop loss is more important than a take profit price.
But a take profit price is VERY important when it comes to following your Risk to Reward strategy.
You need to set the take profits so you can calculate your potential gains, to lock in gains and to have a mechanical plan to follow in the future.
#9: Forgetting your Reward-to-Risk Ratio
If you ignore your risk to reward level rule with trading, you might as well give up trading.
The key is to always make sure that your potential gains are more than your losses.
If you ignore your risk to reward you will make poor trading decisions and your performance will not be stable and consistent.
These are losing traits.
#10: You forget the anomalies!
There are times where you might need to exit out of a trade prematurely.
There are other market conditions that are wile and can impact your trade negatively.
Whether they are black swans, market announcements, threats, dangers, fat fingers or even news events.
Don’t forget to consider the anomalies to reduce a catastrophe.
#11: You buy however much you want on margin
When you trade derivatives you need to remember.
You will be exposed to more money than what you deposit.
You can LOSE way more money that you anticipated if things don’t go your way.
You need to seriously understand the risks involved with margin and gearing trading before you even commit to trading derivatives.
#12: You don’t diversify
Some traders ONLY trade one index or one currency or one commodity.
I believe this is not very good for the future.
There are times where these markets enter into a stagnant period for months upon months on end.
You need to find a way to diversify and trade a few more markets, to make up for the dangers of idling markets.
It’s important to diversify your portfolio and spread your risk across multiple markets.
#13: You chase the next best penny thing
Chasing ‘hot’ penny stocks or penny cryptos is lethal.
You’ll end up emotionally involved in them and you’ll find every reason (fundamentally and technically) to hold on because they are going to the moon.
Remember, you need to research the markets that work with your trading strategy over at least 5 years.
Any other markets, are dangerous and can lead to you blowing your account.
#14: Not Emotional control
Not managing your emotions appropriately and making impulsive trading decisions can lead to poor outcomes.
When you lose you’ll feel like it’s the end of the world.
When you win, you’ll feel you have trading down and life.
Problem is these uppers and downers with trading will have an effect in your life negatively and will end up with you making very emotionally driven and triggering trading decisions.
Then POOF. All will be gone.
It’s important to stay calm and focused when making trading decisions.
#15: No Trading Journal
What are you basing your success on?
A strategy you don’t even have proof whether it works or not.
If you are Not using a trading journal to track your trades and evaluate your strategy over time, it can lead to a losing performance, unnecessary losses, missed opportunities for improvement and will leave you blinded to your potential.
It’s important to keep a record of your trades and evaluate your performance regularly.
#16: Not Learning from Mistakes
Trading is a forever learning journey.
You need to learn from EVERY mistake you make and move on.
If you don’t learn you’ll continue to have a poor performance.
It’s important to evaluate your mistakes and make changes to improve your strategy. Maybe even document every trading mistake you make in your trading journal.
This way you’ll reflect and work on them for the future.
Was that helpful?
8 Most Important Trading Levels of EntryThere are over 30 different elements you can add to your trading journal.
But if you want to start off light and easier, then there are only a few KEY levels you’ll need to get into your trade and track them.
8 to be exact.
These include:
#1: Market (Stocks, Indices, Forex, Commodities, Crypto)
What market are you trading?
There are many different markets to choose from, including stocks, indices, forex, commodities, and crypto.
Each of these markets has its own unique characteristics, including volatility, liquidity, and risk factors.
When you specify what market you’re trading you’ll know which account to measure your portfolio.
#2: Date of Entry
This information will allow you to track your trades over time and evaluate the success of their strategies.
Also, something not many people think about is when you’re profitable and in the money. It is also useful for tax purposes, as you might need to report your gains and losses to the relevant authorities.
#3: Entry Price
The entry price is the price at which a trader enters a trade.
This information is critical for calculating potential profits and losses, as well as for setting stop loss and take profit levels.
You’ll also know how the market is moving relative to their position and make certain adjustments to your trades (following your strategy) as needed.
#4: Type Buy (Go long) or Sell (Go Short)
The type of trade, whether it is a buy or a sell short, is important because it determines the direction of the trade. If a trader buys a security, they are betting that the price will go up, while a sell short trade is a bet that the price will go down.
This information is important for setting stop loss and take profit levels, as well as for understanding the risk profile of the trade.
#5: Stop Loss (Risk level)
A stop loss is an order to close a trade if the price reaches a certain level.
This is a key risk management tool that helps traders limit their losses in case the market moves against them.
Also, it’s used to lock in profits when the trade is going in your favour.
#6: Take Profit (Reward level)
Take profit is the opposite of a stop loss.
It is an order to close a trade when the price reaches a certain level of profit.
This allows traders to lock in their gains and exit the trade at a predetermined level.
#7: Margin (Initial deposit)
Margin is the amount of money a trader needs to deposit in order to open a position.
This is important because it determines the amount of leverage the trader is using and the potential risk exposure.
By recording the margin requirements for each trade, you’ll be able to monitor your overall risk exposure and adjust your positions if needed.
#8: Reason of Entry
The reason for entering a trade is important because it helps traders evaluate the success of their strategy and make adjustments as needed.
This depends on your trading strategy. Are you trading because of a breakout pattern, Moving Averages, Range bounded, Order blocks, Liquidity Sweeps, Volume Spread analyses or indicator analysis – you’ll be able to jot your entry reason for each trade.
So if you’re new to trading or not worried about the extras when plotting in your journal.
You now have the most important elements of a trading:
Markets, the date of entry, entry price, type of trade, stop loss, take profit, margin, reason.
Hope that helps.
JSE ALSI 40 finally heading up to 77,000JSE ALSI 40 - Bullish Bias
Finally, the market chose a direction and we are only looking for longs.
Falling Flag breakout
7=21 = Crossing up
Price>200 -Bullish territory
RSI>50 - Bullish
Target 77,000
SMC:
Two Sell Side Liquidity Order blocks have formed where Smart Money will come down to sweep the selling (buying into it) and it will push the price up.
Now to go to the 15 minute to spot potential entries and break of structures.
Comparison of Food Retailers - YTDPick n Pay down a staggering 40% year to date. Spar the best of the bunch
JSE ALSI Setting itself for upside? Maybe we don't sell in May?!JSE ALSI 40 -
Cup and Handle seems to be forming on the ALSI 40,
We need to wait for a breakout to the upside.
Price >200MA
RSI>50
Target 79,178
I prefer banking money when markets go up than down. So this might be the saviour for May with the JSE ALSI!
SMC: We have a Sell Side LIquidity area below the new Handle. This is where Smart Money has come and swept through selling (Long traders stop losses) and (Short traders entries). They have bought into these orders, which is pushing the price up.
Super bullish signs from the big boys.
#Alsi - Index WeeklyIf you've been wondering why the #ALSI has been trading like a yo-yo in the last few sessions, one needs to zoom out and get a better picture of what's happening.
We currently range bound in a consolidation that dates back to mid-April giving many short-term opportunities for traders. The last few weeks we have printed several 'spinning top' candles indicating the tug-o-war between the bulls & bears.
This is likely to continue until the range indicated is broken with a weekly close above or below in which case one can expect a new leg/rally.
4 EXTRAS to add to your Trading Journal TODAYI’m sure you know by now.
That every successful trader needs a trading journal.
This is an essential tool to track, monitor, evaluate, record, and measure your trading success.
However, I’ve come up with 4 EXTRA Journal Items that you can add to your journal that could help improve your trading, win rate and overall performance.
We can call these the “Trading Journal Extras.”
Let me know if you think any of these will be helpful to add to your journal.
EXTRA Journal Item #1: MY EMOTIONS
Emotional State When Taking Trades
Trading can be an emotional rollercoaster.
When you lose, it feels like everything is out to get you.
When you win, it can feel like you’ve nailed life in a bag and you can do this for the rest of your life.
But what if you actually journaled your emotions?
Every time you take a trade or you bank a loss or gain, document it in a section saying “EMOTIONS.
This element to your Trading Journal can help you identify patterns in your emotional state that may impact your decision-making abilities in the future.
You will also see who you are personally and how you emotionally handle trades. Watch it improve over time.
For instance, if you find that you’re more likely to make impulsive trades when you’re feeling anxious or stressed, you can take steps to manage your emotions before taking trades.
This can help you make better decisions and minimize the risks of impulsive trades.
EXTRA Journal Item #2: MISTAKES LEARNED
Mistakes Made and Lessons Learned
As a trader, you’re bound to make mistakes, and it’s essential to learn from them.
So why not write them down. Incorporate the mistakes you made in your Trading Journal.
This way, it can help you avoid making the same errors in the future.
For example, if you realize that you lost way more than 2% for a trade.
Write down where you went wrong.
Did you over capitalise?
Did you extend your stop loss?
Did you hold on longer than you should (which the costs added up)?
Did you follow your strategy and risk management rules?
Write down the mistake and you’ll have a better chance of avoiding it in the future.
EXTRA Journal Item #3: NEWS REACTION
Market Reaction to News Events
You won’t find this in my journal. But I know many traders who trade using market fundamentals and news analyses.
And if you’re a day trader, Forex trader or a high frequency trader – then this item might be imperative to your trading journal.
The market’s reaction to news events can cause major whipsaws, fakeouts and shakeouts.
You might find it interesting and educational track how the market behaves before and after a news release.
E.g. NFP (Non Farm Payrolls).
Unemployment numbers
Interest and Inflation rates announcements
Quantitative Easing
Earnings Reports and so on…
For instance, if you notice that the market reacts positively to news about a particular sector or asset, you can make an informed decision to invest in that asset or sector.
Similarly, if you notice a trend of negative market reactions to news events, you can use that information to minimize your losses.
EXTRA Journal Item #3: TRADING LESSON
Trading Lessons and Strategies
Finally, as a trader, you must keep learning and growing.
If you learnt something about trading, WRITE it down in a journal entry.
Adding a section in your Trading Journal called LESSON OF THE DAY.
Then record the trading lesson/s and strategies you learnt which can jog back your member and it can help you improve your skills, application and knowledge.
The FOUR extra Trading Journal Entries
A Trading Journal with these EXTRA items can help you excel as a trader.
Thins like emotional state to identify patterns, writing down mistakes to avoid repeating them, tracking market reactions to news events to inform decisions, and recording trading lessons and strategies to continuously learn and improve.
So here’s a sum up of the FOUR EXTRAS that you can apply to your journal.
MY EMOTIONS
Document emotions every time you take a trade or bank a loss/gain
MISTAKES LEARNED
Write down mistakes made and where you went wrong in your Trading Journal
NEWS REACTION
Track the market’s behaviour before and after news releases
TRADING LESSON
Record lessons and strategies learnt that will help with your trading
Let me know if this helps and which out of the FOUR you’ll add to your trading journal?
Maximise your trading success with market analysisWhen it comes to trading, one of the most important skills to develop is market analysis.
When you know how to read the market and make informed decisions, it can be the difference between spotting high, medium and low probability trades.
Here are some ideas to analyse the market and maximise your chance of success.
Start with the Main Indices
The first step in market analysis is to take a look at the main indices.
These indices, such as the JSE ALSI, SP500, Nasdaq, FTSE100, and others, are a good indication of the overall market direction.
Once you have seen the indices, you’ll get a sense of how the market is moving as a whole, and what kinds of opportunities might be available.
Identify the major Trends
Once you’ve looked at the main indices, it’s time to:
Identify any market trends (Market environment)
If the market is showing a strong uptrend (trend, momentum, moving averages analysis)
Then it’s best to ONLY look for longs or buys.
On the other hand, if your indicators suggest that the market has confirmed a downtrend, it’s best to look for sells or shorts.
Look for Breakouts
Sometimes the market doesn’t confirm an up or down trend.
If you see the market is moving in a sideways manner, there’s still an opportunity to profit.
In this case, it’s a good idea to write down the levels of breakouts you’d expect.
If the market breaks up, you’ll expect longs, and if it breaks down, you’ll look for shorts.
This way you’ll prepare for both outcomes And you’ll be able to capitalize on whichever direction the market takes.
Final Thoughts
Market analysis is a critical skill for any trader to master.
When you start with the main indices, to identify trends, and looking for breakouts, you’ll be able to make informed decisions about your trades and get a good idea of where they’re more likely to head.
JSE ALSI setting itself for downside to 67,985 due to the bad RInverse Cup and Handle has formed on the JSE ALSI 40.
We need the price to break below the brim level and all hell will break loose.
MA 21>7
RSI < 50
Target 67,985
FUNDAMENTALS.
The rand is majorly in trouble, R19.80 to the US Dollar and R23.90 to the pound.
Is this because of load shedding. Is this because people are leaving the country due to the inefficiencies of the government. Is this because of the world markets coming down? Or is it a combination of all.
Whatever it is, we are seeing downside to come.
4 Ways to STOP Impulse TradingHow do I STOP Impulse Trading?
Just a reminder.
An impulse trader is one who makes quick, irrational decisions to take a trade (long or short) for some form of immediate satisfaction it may bring in the short run.
Impulse trading might occasionally work.
But it's risky and can damage your trading confidence and psychology in the long run. That’s because when you win, you’ll take more impulse trades that go against your strategy.
But then the winning streak will end and the losing streak will come. And that’s where you’ll blow your portfolio eventually.
So, to help you overcome impulse trading, I suggest these three solutions:
Solution #1: Take a break
When you feel the urge to make an impulsive trade, step away from your computer for an hour.
Use the time to go cook a meal, go for a walk, or do something else that helps you relax.
Then when you’re feeling more relaxed and in tune, you can come back to trade the markets with a refreshed, rational mindset to see what has or is lining up.
Solution #2: Reflect on your trading history
Review your trading track record.
It is your game plan. It shows you the potential of what is to come.
And it allows you to look at your past data and trend of your portfolio.
Consider the gains and losses you've experienced and remind yourself of why it is super important to stick to your trading strategy.
This alone should help you resist impulsive trades.
Solution #3: Set specific conditions for impulse trading
If you still struggle to control your impulsive trading instincts, then this might be the best idea.
Open a separate trading account with disposable funds.
This way, you can indulge and take your impulse trades without jeopardizing your primary trading strategy and account.
Maybe it’s a R10,000 or even a R50,000 account.
Or if you just want to trade for trading sake it, it might be a R5,000 account.
Whatever it is.
When you feel impulsive, trade using your impulse trading account.
And then when it comes to your main account, you’ll be able to follow your specific trading strategy according to your track record.
Remember, trading should be approached and seen like running a business, not like playing a slot machine.
Keep this in mind, and this should help save your portfolio.
Sell in May and Go Away - Might apply in 2023We are still in the Box range.
This isn't a great trading environment to buy and sell.
So we need to wait for the price break out of this box formation.
Looks like the Sell in May and Go Away might apply this year, if we get the break below the box.
I am kind of leaning towards the Bearish bias that the price will break below as many JSE stocks are lining up strong selling chart patterns setups.
We just need the JSE ALSI to confirm.
J200 long idea 60minJ200 6min has broken up above resistance and retested the breakout level during todays intraday session of the 72800 level
Risk Reward 1:2
May the Fourth Be With You - And your Stop losses!Star Wars has been around since 1977 which was written and directed by George Lucas.
During that time, there have been phenomenal quotes, lessons and adventures that have been shared.
Instead of telling you different lessons Star Wars can teach you about trading.
How about I share some quotes and how you can apply them?
Here are the ones I find are the most applicable.
#1: "I find your lack of faith disturbing."
Use this as a reminder to stay confident in your trades, even when the market is unpredictable. Have faith in your strategy. Have faith in your commitment. Have faith in your strong mindset.
#2: "Your focus determines your reality."
Stay focused on your trading goals and strategy. It’s not about what others see. It’s not about what others feel. It’s about you in your own work station, planning, preparing and executing accordingly.
#3: "Do or do not, there is no try."
Commit fully to your trades, rather than hesitating or second-guessing. When it’s lined up, ACTION.
When you see a trade setups, write them down and prepare for execution. Don’t try… DO!
#4: "Fear is the path to the dark side."
Stay level-headed and not let fear or panic drive your trading decisions. Fear doesn’t exist. Only danger does. We are fearful most times in our head when there is no apparent danger. Remember this when you feel fear.
#5: "In my experience, there's no such thing as luck."
Successful trading is based on skill, probabilities and strategy, not luck.
#"6: The Force will be with you, always."
Here’s a reminder that your skills and strategy will guide you through both good and bad trading times. In this case the force is your proven strategy, your will, your commitment and your strong mind.
#7: "You must unlearn what you have learned."
Be open-minded and flexible when it comes to adapting your trading strategy. We learn as sheeple to buy low sell high. While I have gone against the idea and instead BUY HIGH, SELL HIGHER.
Also, when everyone buys, is normally where the Smart Money offloads theirs. And when retail dumb money sells, that’s where Smart money BUYS.
Did you find these useful?
Which one resonated the most with you?
RISK less with Drawdowns and more with Winning StreaksA drawdown is a period of decline in the value of a portfolio. This is where you take a number of trades, and the losses drop the portfolio at a marginal level (if you know what you’re doing).
During these times, the market is typically more volatile (jumpy) and unpredictable.
And so you have a higher chance to risk money in unfavourable times.
Risk less with drawdowns
When your portfolio drops 6%, 8% or even 11% – This is where you’re not sure when the market will become more favourable.
This is the time where you decide to risk less money per trade.
You would drop the risk from 3%, 2% to 1.5% or even 1%.
Then keep trading until the markets pick up and start to favour your portfolio…
Once you’re out of the drawdown then…
Risk more money with the winning streak
During the winning streaks, the market is typically more stable and predictable, and the chances of making a profit are higher.
You can then pump up the risk back to 2% or 3% (if you’re a risky biscuit).
When do you do this?
When your portfolio is either BACK to an all-time-high.
Or when you can see the market has broken out of the sideways consolidation and volatile period.
Risk management is an important aspect of successful investing, and adjusting the amount of money being invested based on market conditions is one strategy that can help investors achieve their financial goals.
By risking less money during drawdowns and more money during winning streaks, you as the trader can lower your potential losses and maximize your potential gains.
