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analyst75

Tricks to Winning the Markets This Year

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“Trading is one of the oldest concepts on the planet and that’s an advantage to your new business. You don’t have to reinvent the wheel. What you have to do now is create a written set of instructions to your brain. Instructions that will turn your concepts into cash. Think of your business plan as Cliff Notes on “How to make money by trading!” because that’s what it will be once it is completed. Since only the best traders have the discipline to make such a plan, you’ll have one of the “edges” you need to compete alongside the top market makers and traders.” – Dr. Van Tharp (Source: Vantharp.com)

 

Based on many years of trading and research in the markets, I’d like to share some tricks with you. I hope the tricks would help you become triumphant as a trader.

 

NEITHER A PERMABULL NOR A PERMABEAR BE

In Forex markets, it’s far better to be a trader rather than be an investor. It’s more preferable to make money when there is a strong uptrend or a strong downtrend. When an investor is experiencing drawdowns, a trader who’s good at timing entries would be raking in profits.

 

When a permabear is being pummeled in a market that suddenly becomes bullish, going protractedly northward, a trader that has a good system, who is good at timing entries would be raking in profits.

 

A trader goes long in a bull market and goes short in a bear market, truncating their negativity when caught in a wrong direction. On the other hand, an investor makes money only in a bull market.

 

In the modern markets, it makes more sense to be a trader, not a permabull nor a permabear.

 

Go short in bear markets and go long in a bull markets. Don’t buy and hold because a bear market can hold out longer than your portfolio may carry it. You can receive margin calls in the process. Strong pullbacks on Bitcoin is a good example.

 

 

FIND THE MARKET THAT’S MOST SUITABLE FOR YOUR STRATEGY

For example, a strategy that follows the trend would work well in a market that trends very well like, USDCNH, Bitcoin, Gold, Silver and other currencies that trend very well. It doesn’t mean that these trading instruments don’t experience consolidations, but it means they tend to trend more than other instruments like USDJPY and EURCHF. When you use a trend-following strategy on an instrument that tends to trend well, your results will improve.

 

There are also better results when a trend follower trades on an instrument which tends to move fast.

 

When you scalp, you would do well on trading instrument that moves slowly or tends to consolidate, just like EURCHF and EURGBP.

 

When you’re scalping in a highly trending market, your results can be worsened.

 

FIND THE RIGHT ENVIRONMENT FOR YOUR SYSTEMS

Locate the right environment for your trading system. Some trading systems perform well on Tuesdays to Thursdays only. Some perform well on Mondays and Fridays only. Some systems perform well from October to April only, while some systems perform well on May to September only. Some perform well during Asia sessions.

 

Please find the best months or weeks or days or times for your strategies. Find the best market conditions for your strategies and try to avoid periods and conditions that may not be favorable to you.

 

Conclusion:

Please don’t forget to use stops and risk very small per trade. Those who think they’re smart enough to avoid stop and low lot sizes, will eventually learn bitter lessons, no matter how good their strategies are.

 

I end this article with 3 quotes from great traders:

 

“Staying on the right side of the market is not always easy. But when it is, keep riding the easy move up while having a plan in place to protect your capital when the inevitable big pullback comes.” - D.R. Barton, Jr

 

“The markets don’t always cooperate with you. The winning trader is the person who questions a trading plan before executing it. He or she tries to anticipate what could go wrong, and thinks of ways to work around these potential setbacks. Being a healthy skeptic can be difficult at times, but the cautious optimist usually ends up making the most profits in the end.” – Joe Ross

 

“A losing trader can do little to transform himself into a winning trader. A losing trader is not going to want to transform himself. That’s the kind of thing winning traders do.” - Ed Seykota

 

 

Source: http://www.tallinex.com

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  • Topics

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    •   Date : 21st February 2019.

      MACRO EVENTS & NEWS OF 21st February 2019.



      FX News Today Asian equities initially rallied after Fed minutes promised patience on further policy action but most have moved down from earlier highs. Hopes that the US and China are nearing a deal on trade have risen after an unnamed source cited by Reuters said the two sides have started to outline commitments in principle in what is described as the most significant progress yet. The JPY225 closed with a gain of just 0.15%, while the Topix was unchanged from yesterday. The Hang Seng is up 0.03% and mainland China indices are also little changed. The AUS200 outperformed and rallied 0.70%, after better than expected jobs data. US futures are stronger after Reuters reports outlined progress in US-Sino trade talks and European futures are also moving higher. The March WTI futures are trading at USD 57.33 per barrel. Charts of the Day


      Main Macro Events Today EU PMIs – EU Manufacturing PMI is expected to have declined to 50.3 in February, compared to 50.5 last month, dangerously close to the 50 threshold. Services PMI is expected to have increased to 51.4, compared to 51.2 in January, hence pushing the overall Composite PMI higher to 51.1, compared to 51.0 in the previous month. Philly Fed Index – The Philly Fed Manufacturing Index is expected to have declined to 14, compared to 17 in January, still registering a positive effect. Durable Goods – Durable goods are expected to come out registering positive growth for December, compared to negative for November. US PMIs – Manufacturing is expected to have declined in the US, similar to the EU, reaching 54.7 compared to 54.9 last month, while Services are expected to have slightly grown to 54.3 compared to 54.2 in January. Existing Home Sales – Home Sales are expected to have remained at more or less the same levels, at 5M, compared to 4.99M last month. CB Leading Index – The Conference Board Index is expected to have shown a 0.1% m/m increase in January, compared to the 0.1% m/m contraction in December. Support and Resistance
       
      Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

      Please note that times displayed based on local time zone and are from time of writing this report.

      Click HERE to access the full HotForex Economic calendar.

      Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

      Click HERE to READ more Market news.

      Andria Pichidi
      Market Analyst
      HotForex

      Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • hello everyone, lets all have a good 2019  best of luck to all.a good start so far. and hoping for more good news in the future
    • Ethereum (ETH) Daily Price Forecast – February 20 ETH/USD Medium-term Trend: Bullish ·         Resistance Levels: $240, $250, $260 ·         Support Levels: $140, $130, $120 Yesterday, February 19, the price of Ethereum was in a bullish trend. The crypto’s price was trading at $151.68 when the crypto was resisted. The crypto was resisted at the $150 price level and the price fell to the support of the 12-day EMA. The bullish trend has been terminated but the ETH price is trading at  $145.76 as at the time of writing. On the upside, the crypto’s price will rise if crypto’s price is sustained above the EMAs while the bulls break the $150 price level. Meanwhile, the MACD line and the signal line are above the zero line which indicates a buy signal. Also, the crypto’s price is above the 12-day EMA and the 26-day EMA which indicates that price is likely to rise. ETH/USD Short-term Trend: Bullish On the 1-hour chart, the crypto's price is in a bullish trend zone. The previous bullish trend has been terminated as price made a downward fall. The ETH price has fallen to the support of the $140 price level and the bulls are expected to defend the support level. On the downside, if the bears break the $140 price level, the crypto will further depreciate.
      Meanwhile, the MACD line and the signal are above the zero line which indicates a buy signal. Also, the crypto’s price is below the EMAs which indicate that price is likely to fall.     The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.                                                                                                                 Top of Form                             Source: www.bitcoinexchangeguide.com
    •   Date : 20th February 2019.

      MACRO EVENTS & NEWS OF 20th February 2019.



      FX News Today Bund yields lower in opening trade, Equity markets mostly higher in Asia. Stock markets in Asia remained underpinned by hopes of a US-Sino trade deal. Wall Street closed higher, helped by positive earnings at Walmart Inc. Fresh. President Trump meanwhile suggested that March 1 tariff deadline is not cast in stone, so there is hope that further tariffs can be avoided. Japan’s exports fell 8.4% in January, while imports declined 0.6% y/y. The contraction in exports seems consistent with escalating concern that Japan’s export sector will be dented this year by global trade frictions and the slowing in China’s economy. The Yuan lifted after a Bloomberg report saying the US was looking for a pledge from China that it will not devalue its yuan currency as part of the trade deal. USDJPY has climbed to 110.91 from 110.60, amid cautious risk-on theme WTI crude edged out fresh 3-month high of $56.77. Charts of the Day


      Main Macro Events Today Juncker and May meet for another round of crunch talks in Brussels today. EU Consumer Confidence – The overall Eurozone number Consumer Price Index (M/M) on course to be confirmed at 1.4% y/y. FOMC minutes – The focus turns on the FOMC minutes to the January 29, 30 policy meeting as we look to glean more information on the Fed’s pivot to a more dovish point of view, even as rates were left unchanged. We did get a glimpse from Chairman Powell’s press conference, where he noted tighter financial conditions, along with tame inflation. And he said the onus is on price pressures to force a rate move. Australian labour data – The unemployment rate is seen holding steady at 5.0%. Support and Resistance

      Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

      Please note that times displayed based on local time zone and are from time of writing this report.

      Click HERE to access the full HotForex Economic calendar.

      Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

      Click HERE to READ more Market news.

      Andria Pichidi
      Market Analyst
      HotForex

      Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Forex trading is a genuine business and in that capacity ought to be moved toward like one. Obviously there are a chosen few traders who begun without a FX training and have turned out to be fruitful .
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