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J200 trade ideas

T.G.I.M - Thank God It's Monday Traders! As a trader, Monday is probably the most exciting day of the week to trade... But before I tell you why let me remind you.... We live in a world where… Most people hate Mondays… Not only that… They wait 5 days to finally enjoy and live two measly days. They live for the weekend ONLY. That’s sad… But let’s try to conceptualise how lucky you actually are… Every action that your great, great, great, X 1,000 grandparents did, is the very reason you get to enjoy consciousness and existence in this blip of time. If just one of them got up to get a glass of water instead, you wouldn’t be around… Then let’s talk about that one day… Out of the millions of swimmers in one occasion on one day, you were the winner. YOU WON THE GIFT OF LIFE. That is a reason alone to celebrate every passing minute of your life. You won the cosmic lottery… Then, as life progresses you learn what you like, how to live and who to live with. You adapt to your idiosyncrasies, tastes, habits and interests… That’s what makes life a little easier to get through… And… Technology continues to outperform each year. We now have ways to communicate online, build our own empires and make an income through different career choices. Whether you enjoy investing, horse racing, online gambling or my favourite (financial markets trading), you have a multitude of options to choose and benefit from… And because you’re reading this today, tells me one thing… You have that passion, determination and discipline to try out the trading thing… Am I right? So what does this have to do with T.G.I.M? You need to stop saying “I hate Mondays” and start saying… “Thank God It’s Monday” Each Monday you start a new journey of life experiences to take you on the path of success, financial freedom and happiness… Mondays and the rest of the week days, are the days when you have the opportunity to grow your financial position. NEW OPPORTUNITIES TO: Learn about new markets with trading. Refine your trading risk management skills Take on new high probability trades to build your portfolio Educate yourself on new financial markets terminology, concepts, strategies and systems Go one step closer to achieving your financial goals Each day you learn, adapt and grow your portfolio, is another day closer to achieving your freedom. Also, you can ONLY get better. Find a reason to love Mondays. Next week wake up and say with confidence. T.G.I.M. Write it down somewhere BIG and read it out loud each week before you take a trade.
JSE:J200Education
by Timonrosso
1
6 Rules of Successful TradersI’ll tell you this. The money you desire, is not going to just fall into your lap. If you want to be a successful trader, you need to write down the ground rules to get your as$$into gear. I can’t profess for every professional trader, but I can share with you my rules I’ve been following for the last 2 decades. Feel free to write them down for your trading. RULE 1: Always have a trading plan This is a must. The financial markets are dangerous. Once you enter them, you are playing with the big boys. If you go in blindly or naked (without risk levels in place), prepare to be caught with your pants down. You need your game plan in front of you at all times. There needs to be criteria you’ll follow from when you switch on your computer to when you close it. RULE 2: Don’t procrastinate Trading is like waiting for the next train. Wait too long and you’ll miss your train. You’ll then have to wait an unnecessary extended period of time for the next one. When your trading plan fires a signal – FIRE. When your trading plan fires an adjustment move – FIRE. You are only fooling yourself, if you don’t act when you need to. RULE 3: Be patient There are two important factors to patience. First, never rush into getting into a trade for the thrill, excitement or revenge! Second, never rush at getting out of a trade if it has not hit one of your trading levels. Patience is where you will grow your portfolio. Say that out loud… Patience is where you will grow your portfolio. RULE 4: Take the trade If I made a T-Shirt I think I would have one just saying. “Just take the trade” Repeat after me! If all is lined up and ready to go. It doesn’t matter what fundamental factor or news event is going on. It doesn’t matter how you’re feeling or that you have a headache. Just take the trade when your plan tells you to. It will take you 30 seconds. Then close your laptop and go rest. RULE 5: Keep learning With technology advancing, financial instruments changing, market dynamics shifting and with the world evolving… You need to keep learning and updating your knowledge base. You never know if the new developments, will lead to a higher win and success rate. You never know if your system and trading will be optimised and maximised to a better performance, The onus is on you to keep up with learning… RULE 6: Don’t give up We all have our own time lines with trading. We are all on our own journeys, challenges and struggles. You only lose when you quit. So please, I beg you, don’t give up and you will thank me later… Let’s sum up the 6 rules quickly for you… 1. Always have a trading plan 2. Don’t procrastinate 3. Be patient 4. Take the trade 5. Keep learning 6. Don’t give up
TVC:SA40Education
by Timonrosso
Top40- 4000 points on offer...The Top40 has come under immense pressure over the last week or so and after the weekend's news, markets are shaky. The index has not only broken support, but also the 50 day moving average, with the RSI looking very weak and stochastics showing heavy selling. I think any bounce near 71000 can be shorted for a continuation of downward momentum. The next level of any meaningful support is rather far away...lots of room to scoop some volatility profits.
JSE:J200Short
by RobbyP
Why Trading Should be like Watching Paint DryIt has to be said. If you want excitement, take $10,000 and go to Las Vegas for a day. Trading should not bring about the same level of excitement. I’m not saying, the entire process should be boring. In life and with the careers you choose, you have to love what you do. You have to keep the reward and vison in your mind, to drive you each morning. And you need to have the discipline and integration to follow your plan each day. So, should trading be boring? Um, yes and no. Let’s start with where trading should be exciting and fun. When Trading is a Thrill This is where most people stay. They don’t take the necessary steps to open a trading account, fund it and grow their portfolios. Instead, they stay in a feel safe and in control of their non-growing finances. I still have members who’ve followed me for 10 years, and haven’t taken ONE single trade. You need to jump out and take action. The thrill of trading should be before the execution takes place. This includes: Analysing the markets Optimising your strategies Searching for high probability trades Reading up on new trading developments and fundamentals Monitoring your results and working on your statistics Finding new markets and instruments to trade and add to your strategy This part is an absolute blast. And requires no risk and no waiting. But then, when you do find your trade line up and put in your trading levels and click buy / sell… Then… Trading needs to be like watching paint dry or grass grow Once you have taken your trade, set your entry, stop loss and take profit levels – you’ve done your job. You now need to let it go and let the market to take over. Don’t interfere… Don’t get excited when it’s in the money. Don’t fear when it’s going against you. Don’t watch every tick. It will drive you insane. Just leave it alone. It should be boring to even see what your trade is doing, because it’s out of your control. If it hits your stop loss – cool… You’ve got your risk management in play. If it hits your take profit – cool… You’ve got your reward management in play. If you have rules to adjust your stop loss, when the market is moving in your favour – cool… You’ve got your reward management in play. Rather focus on the next trade idea or the other bullets I mentioned in the beginning. Keep control with what you can control and leave what you can’t control to the “stars”.
JSE:J200Education
by Timonrosso
6
ROADMAP from COMFORT to GROWTHMost people take the easy road of being in a Comfort Zone. For this reason, they keep getting the same results and remain in their ‘uncomfortable’ position in life. Think about it… Those that don’t understand new things, never adapt to something that could change their life for the better. Those that keep earning the same old salary, never grow their retirement kitty to the level they wish. Those that never throw things away, end up cluttering their life with the old. Trading is no different. It requires you to step out of your comfort zone in the beginning, to create something that can change your life. Besides, great things never came from being in a comfort zone. Let’s talk about the stages required to become a Growth Trader. ZONE 1: COMFORT This is where most people stay. They don’t take the necessary steps to open a trading account, fund it and grow their portfolios. Instead, they stay in a feel safe and in control of their non-growing finances. I still have people who’ve followed me for 15 years, and haven’t taken ONE single trade. You need to jump out and take action. ZONE 2: FEAR When you have finally decided to take a leap of trading faith, a whole bunch of new fear with encompass your mind. Will I lose money? Will trading work for me? Will I be able to follow a strategy each day? Will I be on time to trade the markets? What if the market environment is not conducive when I start? Harness this fear, because it means one thing… CHANGE IS COMING… ZONE 3: LEARNING Every loss, gain, rule is a lesson and adaption to entering a NEW zone. Every challenge you face, is one less challenge you’ll need to deal with in the future. Every difficulty you experience is a skill that you’ll acquire for trading. The more you learn about the technical and fundamentals of the financial markets, the higher the level of experience and wisdom you’ll gain as a trader. The learning phase is imperative to achieving success in any field… ZONE 4: GROWTH The accumulated lessons, experience, wisdom, actions and tribulations of repetitive actions – are the foundations to entering into a new comfort zone of GROWTH. The difference is… You would have taken the necessary steps to succeed and accomplish your trading goals. It will eventually reach the point, where the above zones will help you enter into a conditional and automatic process into your life where trading is nothing more than a continuous habit. Once the fear, thrill and uncertainty are removed – only then you’ll realise that the initial comfort zone of inactivity was the uncomfortable phase that took you nowhere… Life begins at the end of your comfort zone. Read that last sentence again.
JSE:J200Education
by Timonrosso
How I go about Dividends as a Trader!Q. “In your view how do you go about with dividends as a trader and as an investor? Do you buy to chase dividends when they are declared or not? A. As a position trader (short term holder), I'm not really interested in buying companies for the dividends released. That’s because I prefer to make money in the short term with the trades I take, according to my short term strategy and analysis. But if I did have an investor mentality and I wanted to take advantage of buying companies for dividends, I would do a number of things. These include: First I would do my own thorough research and due diligence on the company's overall financial health and performance. Second, I would look at the dividend history of each company to see more or less what I would have earned over the last couple of years. Also, if you look at the history of the dividend, it will help you determine whether it's a reliable company to buy. I personally don't believe it's a good idea to chase dividends with stocks. I have also never met anyone that makes money chasing dividends in the short term. The problem is when the dividend is released, the share price tends to drop quite significantly. And you could end up losing more money because of the share price drop, rather than the money you gain through the dividends. This means, you could be stuck holding onto the shares and positions for the next couple of weeks or even months, waiting for the price to recover. Reply: *Hey Timon, thanks for comprehensive respond. It cleared my confusion as a trader when it comes to dividends.
JSE:J200Education
by Timonrosso
5 Choices you Make as a Trader - THIS Or THATFrom the second you turn on your computer, to the time you press buttons commit your funds into your trades and close your computer. You are making your own choices. Do you choose this? Do you follow that? Do you go against this? Do you type that? So technically, your financial future success lies all in your fingers. In this TradingView piece, you need to ask and answer what choices are you prepared to make – to turn your life around as a trader. CHOICE #1: Sleep until noon – Wake up early If you’re a position trader (trade once per week or so) like me, then you’ll know profitable opportunities knock VERY slowly. You can wake up late, open your trading platform and see a missed trading opportunity just like that. Or you can set your alarm, wake up to check the markets to confirm if there is a trade lined up or not. DON’T MISS YOUR TRADING OPPORTUNITIES! CHOICE #2: Only trade your starting portfolio size – Deposit money each month Let me be frank. R5,000 isn’t going to turn you into a millionaire. R20,000 isn’t going to turn you into a millionaire. I’m sorry but it has to be said. You need to find a way to keep depositing a bit of money into your trading account each month. Whether it’s 5% or 10% of savings, the more you deposit each month – the faster your portfolio will grow as you have more to make money from money. CHOICE #3: Go against your strategy – Follow your strategy I know it’s tempting to want to go against your strategy. You want to move your take profit, stop loss, you want to buy more. You want to take some money off the table. The problem is – make this choice and you’ll set a dangerous precedent. It will be the start of going against your strategy the next time and eventually, you’ll only be trading with discretionary (self) which I need to remind you is… A COMPLETE LOSING STRATEGY! The stock market doesn’t work on emotions. It doesn’t think and it doesn’t feel. So why should you? Keep to your proven and profitable trading strategy, and the profits will yield as your system has shown you time and time again. CHOICE #4: Learn and then drop the E – Try to earn and drop the $ Trading is a forever learning business. You need to learn how the markets work. You need to learn how the trading environments operate and when they are favourable or unfavourable to your strategy. You need to learn WHICH are the best instruments to trade. Which are the most reliable and secured brokers. Which trading platforms are up to date with technology. What NEW markets there are to utilise and profit from. The list continues. Please follow your own learning time line as a trader and then you’ll find it will all be worth it. CHOICE #5: LATER – NOW! I still get people who send me messages like… “Timon I’ve been following you for 15 years and haven’t started trading yet, what do you suggest?” Simple! Get out of your comfort zone, stop being lazy and take the necessary steps to start your trading journey. 15 years! You could have had all the experience you needed by now. You could have gained important lessons to build your portfolio. It’s all on you. The best time to start is NOW! There is no past (as it already happened). There is no present (as it automatically becomes the past). There is no future (as it’s still to come). So all you have is an infinitesimal photo shot of time called NOW! Got it? Make your choices and materialize your trading into the reality you’ve desired.
JSE:J200Education
by Timonrosso
Tips to be a Healthy Trader - Wisdom Yields HealthI came up with a corny slogan in 2013. “Wisdom Yields Wealth”. Well, today I came up with another corny slogan but relevant to today and this year. “Wisdom Yields Health”. As you know, health is the greatest wealth of all when it comes to your: Physical appearance Mental cognitive thoughts Important decision making Longevity In 2023, health is everything as the world continues to linger in a very stressed phase. (Especially, what’s going on in South Africa with Eishkom, water issues and tax month having kicked off). If you want to be a good trader, you need to focus on not only your money and mind but also your health. Health will help you optimise your trading performance. So, this is a short but important article to remind you to try be a little bit healthier. HEALTH TIP #1: Sleep Even Hours It’s an old wife’s tale that you need 7 hours of sleep. It’s proven that the sleep cycle works on EVEN hours, NOT odd. So if you sleep 7 hours, you’ll deprive yourself of the last 1 hour you need to complete your cycle. When you decide to go to sleep, set an alarm for 6 hours or 8 hours to get the right amount you need. Also, if you wake up before the alarm and you feel fresh – stay awake, don’t go back to bed. Listen to your body more and it will reward you better. You need to be clear headed when you wake up in order to take on the markets with a fresh mindset. HEALTH TIP #2: Drink COLD Water Listen… You’re made up of over 73% water. So you might as well fuel yourself up and stay hydrated. First glass in the morning and another glass every two hours. Or just have a 2 litre bottle next to you. When it’s finished, refill it. Ok you’ve heard that a million times. Here’s where it gets interesting. Did you know that if you drink ice cold water, it will help you to keep awake, will fire your neurons and will boost your thinking capabilities. That’s the big tip with drinking water as a trader. Ice, Ice baby! HEALTH TIP #3: Eat less ‘high energy to consume’ foods in the day You know what puts us off work, trading and life? Having a bloated and painful stomach, because of the stuff we ate. I’m talking breads, pastas, sweets, crisps and fried food. When you eat this stuff, you won’t feel in the mood to trade, think or work. It’s also probably affecting in the bedroom too! Eat these in moderation and NOT when you trade or a few hours before you trade. Anyway, I’m not giving advice, just some tips that’s helped me to trade better over the years. HEALTH TIP #4: Keep Walking Gyms might be inaccessible right now. And exercise is just too difficult to keep motivated to follow. So instead, take your trade for the day and go for a walk around your complex, park or anywhere just to burn those calories and keep you fit and healthy. I’m in Greece right now and nothing beats a good walk around the Ancient historical sites in Monastiraki such as the Agora, Acropolis and even the amphitheatres. Or a walk around the Marina – Flisvos harbour to take in the cool breeze and breathtaking view of the sea. Find your piece of heaven (where ever it is) to walk around and burn those calories at least twice or three times a week. I can go on about health tips, but four is more than enough to start with. Please look after yourself, your body and your mind.
JSE:J200Education
by Timonrosso
1
How to Earn Self-Respect as a TraderIntegrity… It’s what gives you certainty, confidence and trust for yourself. It’s what tells you, you can do it. It’s what makes you leap forward in life. And it’s what earns you self respect. With trading, you need to achieve self respect, to help feel more assertive with the trading decisions you make. In this short letter, I’ll give you some actions to help you earn the self respect as a trader. Action #1: Do the hard things Anything that requires risking your hard earned money is tough. I get it. You didn’t make money just to lose it right? Well, you need to understand that in life there are no HIGH rewards without taking some element of risk. So, force yourself to sit down, deposit money into your account, wait for the proven trading setup to line up and TAKE THE TRADE. Next hard thing to do is, wait for the trade to hit your stop loss or take profit and don’t interfere with the process. And the last hard thing, is having tunnel vision and not listening to anyone about your trading decisions. Don’t listen to the news, your friends, strangers or even your family. You have your plan and system, follow it and you’ll feel in control and you’ll gain more self respect. Action #2: Don’t think it – DO IT Coming up with ideas are easy. Writing down goals and gluing your vision board with mansions and cars – are easy. What’s hard is actually taking the action. There is never the right time because it’s always the right time. So buckle up and take action with what you need to do to achieve trading success. Action #3: Take control and learn from your losses Losses are parts of the ying and yang of trading. You need a bit of good and a bit of bad to balance and build. Remember, the markets move in a zig – zag shape and so will your trading account. So when you realise this you’ll be able to acknowledge, own, take control and learn from your trading losses. But most importantly. The losses must only come from your proven plan. Don’t move a stop loss to make you risk more. Don’t remove a stop loss because you believe the market will turn. Take small losses so that the big winners make up and drive your portfolio up. Action #4: Don’t quit when it gets hard You only fail when you quit something. Read that again. When you quit, you lose. When you quit, you give up. When you quit due to premature excuses you lose self respect. Too many traders quit because they think the market is out to get them. This is either because they are taking a few losses or because they are trying to OUTBEAT the market through emotions. Listen if you have a few rules to manage your money like: ~ Risk 2% per trade. ~ Never allow your portfolio to be in -20% drawdown. ~ Never hold more than 7 to 8 trades at a time. You’ll be able to control your risk and boost your portfolio. Let’s sum these 4 actions up to trading self respect. Action #1: Do the hard things Action #2: Don’t think it – DO IT Action #3: Take control and learn from your losses Action #4: Don’t quit when it gets hard
JSE:J200Education
by Timonrosso
12
How to Get Your Trading **** Done!So you have a trading account opened. The money is in, your watchlist and charts are set up. But you have left your trading half-hearted with doubt, concern and little energy. This is what is slowing your performance. This is what is stopping you from growing your account. And this is why you’re living with second thoughts not seeing progress. May these 5 steps be the wake-up call to get your trading done! Step #1: Get a cheat-sheet Every trading plan you have, needs a cheat sheet. Your cheat sheet will remind you of the criteria you need to enter your trade, put your stop loss and take profit levels. You can also add what percentage you would like to risk and the Risk reward you’ll follow. Once you fill in the blanks and info – Print it, laminate it and stick it up somewhere. Step #2: Prepare your watch list As you know there are countless of markets to choose from (stocks, indices, commodities, currencies and crypto-currencies). Make sure you have a solid short list of markets you’ll be looking at when you trade. Once a day or so, you can go through them and see what is lining up with your trading system. Step #3: Sit down and set up At the most suitable time, shut down all your distractions for the day. Phone, Netflix, family, pets etc… Sit down for a couple of minutes a day – going through your watch list and writing down the trades that are lining up for the next day. Step #4: Place your trade/s order Whether you’re placing a trade during the day or after the market closes, you need to take the trade. If all is aligned in syzygy, you have no excuse but to type in a couple of figures and click BUY or SELL. Easy… Step #5: Journal your trades Once all four steps have been accomplished, you’ll then write down the trades you’ve taken in a trading journal. This way you can keep track of your progress and have an archive of your trading performance with the right stats. Don’t waste any more time waiting for the right time and feel. There is never the right time. Hope this wake-up article will help you really kick off your trading success from here on end.
JSE:J200Education
by Timonrosso
TEST: Is Trading for you? Trading is NOT for everyone. Not because they can’t do it, or because it’s hard – but rather… Trading is something that only a few will feel passionate to do for the rest of their lives… I say this because there are many things that I could do well in, make a huge income from, but I unfortunately don’t enjoy. For example, Poker, horse-racing and sports bets, real-estate, portfolio manager, business consultant… Don’t feel ashamed nor feel something is wrong with you. Instead, embrace your personality and work towards what is your OWN calling and passion. In this TradingView article, well find out if trading is for you… Out of 15 things I’ll mention today, write down YES or NO for each one… Let’s go… YES or NO? Are you a good decision maker? Are you proud to be called a financial trader? Do you enjoy looking at charts and indicators? Can you handle a bunch of losing trades in a row? Do you have the will-power to trade every week? Do you enjoy reading fundamentals with markets? Can you handle losses on a weekly / monthly basis? Do you enjoy learning more about local and global markets? Is it in your personality to deal with short term market moves? Do you have the ability to NOT listen to other people and the news? Do you have the patience to wait for the market to hit your trading levels? Can you follow strict criteria without steering away from your proven strategy? Do you enjoy looking up statistics and probabilities with portfolio management? Are you able to deposit a portion of your savings into your portfolio each month? Do you have the discipline to follow and improve one trading strategy in your life? If you counted less than 10, the big question is… Do you think you can train and educate yourself to fix those items and turn them into yes’s?
JSE:J200Education
by Timonrosso
Top40 rolling over- Short the bouncesThe Top40 has been under pressure over the last few sessions and today it is looking like it has finally reached exhaustion. As the RSI begins to show more weakness, we can see how the Top40 has started rolling over and now it does appear that momentum has shifted to the downside. I think any bounce can be shorted here for a corrective move back down towards 71000. I have marked the area of support where the previous breakout occurred. I won't be surprised to see a test of that level. I'm pretty sure I don't speak out of turn when I say, we have moved too high, too quick and it is time for some sanity to enter back into the market.
JSE:J200Short
by RobbyP
Don't be a still trader!“Timon, I’ve been following your trading tips for the last 12 years and I STILL haven’t taken my first trade." But I will soon trade... Soon? Like tomorrow? Next week or in the next 12 years? Procrastination is the thief of time. I hate clichés but I love that saying. #1: STILL not ready for losses I think most people don’t want to take losses. They are seen as small failures or small fractures to a person’s pride and bank account. Whether you’re running a business, a household or a trading portfolio – there are going to be oopsies. So how do we deal with the idea of taking losses? Well, don’t think of them as losses. Think about them as costs… When you run a business you have to pay costs – equipment, stock, admin, salaries, legalities etc… When you run a household you have to pay costs – electricity, water, take the trash out, taxes and repairs. When you run your trading account you have to pay costs – Losing trades and drawdowns… You pay costs with everything in life, and so it shouldn’t be any different with trading… Instead of calling them losses – call them ‘costs of trading’. Helpful? #2: STILL no right system This one is common. You don’t know what the right system is for you. You’ve tried a couple of moving averages, indicators, price action even volume. Nothing seems to work for you yet… I don’t have a correct answer for you, but I can tell you with how I found my system. I wanted something that didn’t require too much thinking, little indicators, worked on all time frames, was easy to back and forward test and is timeless. And it took me years until I finally found a system that you see here in TradingView. So ask yourself exactly what you want in a system and drill down each detail that matches your current lifestyle and times… Just maybe, the answer will stand out for you better. #3: STILL Not making money Now this is ambiguous. If you end up positive for the year, you’re making money. If you’re not happy with how much money you’re up for the year, that’s different. It’s all relative. Step one is to make sure your portfolio is positive by the end of the year. Then it’s a numbers game as to what your portfolio should be to make more of an income. But first make sure you’re in the positive before you play with Mr Market. #4: STILL Making excuses The only thing I can add to this is the wonderful comfort zone of doing nothing. It’s safe, it’s consistent and we’re used to it. But if you are constantly thinking of wanting to trade and build your wealth on a regular basis – it tells me you’re ready but not ready to leave your comfort zone. You got to pull up your socks and just START. The hardest step to trading is taking your first step. I hope these tips will help you shake off the STILLness that’s lurking inside you, so you can achieve greatness.
JSE:J200Education
by Timonrosso
1
Why is trading NOT working for me?!Even with the right markets, time frames, systems, rules and ideas… Trading is just not playing out you the way you thought it would. It’s not growing your portfolio at the rate you wished… It’s taking forever to get right… It’s overwhelming and you don’t know which strategy to choose… From my experience this is because of one reason. You’re not treating trading for what it is… Let’s REMIND you… TRADING IS… A fun hobby Trading isn’t a tiring job where you need to sit for hours countlessly looking at a screen. It’s also not a job where you need to be cramped up in a cold room, sitting on an uncomfortable chair, wearing a suffocating ‘noose’ I mean tie, around your neck while you’re waiting for the next pay-cheque. If that was the case, I would have stopped trading 19 years ago. Trading should be treated as a fun hobby. With this hobby… You don’t need a lot of time (half an hour a week will do just fine). You don’t need a lot of effort. (Just a few click of the buttons and a few simple grade-8 maths calculations). You don’t need to worry and stress yourself out. (Opportunities come every day, you can manage your own risk and no one is watching over your shoulder.) In other words this is one opportunity which will give you: More free time, Less work and a hobby that will consistently pay you. TRADING IS… A patience game When you’re enjoying a hobby, you look forward to doing it the next day. It’s like anything you enjoy… Watching TV, playing sports, eating your favourite snacks or even having sex… You’ll adapt, incorporate and most importantly look forward to the next time you do it. And the more you do it, the more you’ll improve, the better you’ll get and the easier it will become. Trading is a patience game. The longer you spend the time and days working on it and improving, the faster, better, and more powerful of a trader you will become. And this will lead to one outcome – Financial Independence. TRADING IS… Ever evolving This isn’t your run on the mill, rat-race kind of hobby. This is one heck of an interesting, exciting and thrilling activity that changes so quickly. Every day, week, month and year you’ll to learn a ton of trading tips and lessons. That’s because the markets are always, changing, evolving, adapting and are even suprising… They evolve with: Ever-changing market conditions. New financial markets added to the exchanges. New created instruments to incorporate i.e. Crypto- currencies, ETFs, CFDs etc… New mega-trends driving new global demand i.e. AI, Machine learning, Electric cars, Cannabis, NFTs, Smart contracts and Extended Mixed Reality. TRADING IS… A lonely journey This is one hobby, where YOUR success entirely depends on YOU. This won’t work if you’re asking your family, friends, dogs and even strangers for their opinions on what to buy and sell. This won’t work if you’re listening to the random billionaire analyst on Bloomberg talking about what they have in their portfolios. This won’t work if you’re scrolling on Facebook for an individual’s trading prediction. (INCLUDING MINE). No! With your system, your money and your time – You need to trade alone and on your own terms… You know what will make you money? Taking more trades according to YOUR criteria. Listening to YOUR rules according to YOUR strategy. Spending more of YOUR time, improving on executing trades well. Notice the word YOUR… Not others, not him, not her – YOU… So take trading for what it is and enjoy the process. TRADING IS… A fun hobby TRADING IS… A patience game TRADING IS… Ever evolving TRADING IS… A lonely journey
JSE:J200Education
by Timonrosso
1
Don't let Captain Hindsight mess with your tradingCaptain Hindsight is bound to get in your head. Whether you’re just starting out or you’ve been trading for the last 10 years or so. He is going to question you with two simple words. And these two words, can really cause a negative impact on your trading portfolio. In this short article, I’m going to warn you about how he’s going to uppercut your mind and most likely cause havoc with your trading. This way, you’ll know what to watch out for. A dangerous two word question to interfere with your trading What if?” Here are some… “What if the market is in a bubble and I buy too high?” “What if I’m wrong about this trade?” “What if my trading strategy worked then, but won’t work now?” “What if the market is in a period where I’m just going to take losses?” Whenever the captain whispers these questions, you’re going to feel vulnerable and start second guessing your trading system, strategy and skills. Succumb to the Captain and he’ll be back stronger and more powerful than the last time. Here are THREE ways to beat Captain Hindsight before he returns ACTION #1: Extend your back-testing So you have a trading system that you believe works… Prove it. Go back and re-test different markets and jot down every time the system lined up. Record every trade, including the costs and the statistics and prepare yourself for what is to come. The more you back-test your system, the more markets and environments it would have weathered and endured. If it came out with all time highs on your portfolio, it’s a winner. Captain Hindsight – won’t have anything on you – with a decent track record… ACTION #2: Drop your risk The most common way for a trader to feel emotional, is when they have a lot to lose. The larger your trading position, the more desire to win and the more fear you’ll have to lose. This is why greed, fear and panic are the most ongoing reasons for traders to annihilate their portfolios. Trading is a get rich slowly but surely game. And when you accept the gains and losses, you won’t care what the Captain has to say. ACTION #3: Step away from the screen Not only will Captain Hindsight creep in before you take a trade. He’s bound to enter your mind while you’re in the trade. “What if you’re wrong about this one?” “What if you get out of your trade now while you’re in a profit?” “What if you take a small loss, because it looks like this trade is a loser?” The best action to take, when you’ve entered your trade with your trading levels (Entry, Stop loss and Take profit), is step away from your trading account. Distract yourself by getting a drink, water your garden, take a drive or do other work. The less you’re glued to the screen watching your trades, the less you’re going to feel worried about the small moves that happen in the day. Always remind yourself… “My trading strategy will REWARD me for following it. My trading strategy will PUNISH me for NOT following it.” These three actions will eventually help you beat Captain Hindsight for good, as it did for me over 20 years ago.
JSE:J200Education
by Timonrosso