Saturday, 25 February 2017

Do I need to worry about Leverage or Margin?

Well, before we talk about leverage or margin and whether to use margin or not.

Let me address a rather more v.important aspect to this concept of trading, all of course, in my humble opinion.

None of the traders are ready for trading. That is why there are protections. I would consider myself lucky that I can find brokers who'd allow me trade a demo account with nearly the same prices and executions (executions really does not matter on the higher time frame though a pip above or below my po or SL is no issue there) Again, I'd like to stress on the fact that LEARNING TO TRADE CORRECTLY is a necessary requirement  before you decide to  trade a live account. Going for live account without first completing for instance 5 batches of T20 principle  would be, in my humble opinion, a very stupid and reckless thing to do. You'd rather give me your money.  :p

Trading is a skill that requires a lot of practice. Its a VERY lucrative skill but it requires practice. You must first make sure you have the following things.
1. A Trading Strategy which gives you an edge [aims methods have this covered]
2. Acquire an in depth understanding of the above.
3. Gain practical experience in the above.
4. Demo trade the strategy and maintain a discipline score for each trade and batch of 20 trades. Do at least 5 batches ( 5T20's)and maintain an average of 70% discipline score with none of the T20 batches less than 50% score (if a batch has less than 50% score, you might want to scratch that and repeat it).

This is a rough guide to How to become a Disciplined Trader. 

I'd like to suggest that in order to become a profitable trader you have to follow at least 2 steps.
1. Learn to Trade using a demo account.
2. Learn to trade using a live account.

Not so difficult to understand is it? Just two steps. Now, by demo I don't mean that you open a trade here and there and close it haphazardly. The idea is to recreate an experience and environment that is similar to the actual but without the RISK of losing money.  This would give you that "stress free state of mind" the one that is "Risk Free".

If you have not yet been able to keep at least a demo account and remained "disciplined" you cannot move forward. We see many players doing net Practice and they look fantastic but they fail miserably when it comes to "matches". [cricket analogy] 

Because during practice we lacked an important ingredient. FEAR/RISK. However to trade demo without Risk or FEAR factor is EXACTLY the purpose of Demo Trading. You want to perfect your skill so that it becomes "second nature". So, to become the best at what you do, you don't have to play as many matches as possible rather you practice as many hours as possible before you go for a match. So that you don't have to "think" what to do next during the live event, rather you KNOW exactly what to do without "thinking". Its your instinct.

[Are you telling me demo is waste of your time? then you don't believe in or does not understand the concept of Practice. And Yes, you have to write one beautiful Trading Plan, before you can trade, Else every trade will be classed as Zero Discipline Score] 

I'm trying to help the members who connect with me through Skype, and the hunt section of the forum, to become profitable by first becoming disciplined traders. In a way i'm selling the idea but the intent is purely to help. 

cheers and hope this helps a little...

ps: i don't care what leverage is there, its irrelevant until you have learned to trade correctly, you must first learn to trade. Just as I don't care how expensive is Formula 1 car, first I need to acquire the skill to be considered for driving one. And I don't have that skill so Formula 1 racing car is "of no value to me". Fun to watch though, those who can. 

Tuesday, 14 February 2017

Good Calls Today - AIMS The Hunt Skype Group

Today we had a few signals on different pairs. We shared it in our Skype Group and some of us enjoyed the profits/trades. First up is USD/JPY where we had a Hunt Buy Signal.

USD/JPY Hunt - The PC Cherry Signal. 

It was rather a simple setup. I saw it, shared it in Skype group. Everyone knows how to trade a certain signal. But some times you make a little adjustment in terms of target/take point area. In this case I only wanted to target the high of the box for slightly under 2R (3%) trade.

#USD/JPY Buy Signal. Nice 3% profit.  
The fun part is that I saw the signal at 2pm UK time, had the orders in, then went for a late lunch, picked children form school and when I returned around 4pm it had already hit its take profit level. #LetTheMoneyWork4U   Let the money work for you, don't work too hard. The best form of trading is when you can simply leave your chart because you have a plan that has 3 possible outcomes.

AIMS Trading Plan teaches you this technique of trade management. We always have 3 possible outcomes out of a trade. Each of the outcome has a 33% chance of happening. 33% losing trades (we call them rents) 33% winning trades and 33% break-even trades (I call them winning as you've made back your potential loss)

EUR/USD AIMS The Hunt Sell Signal 

Next up is the euro dollar pair where we had a sell signal. It was a bit iffy but after some deliberation I took it as there were signs it might go down. The signal was there to take. Its a Free Trade (where we have already banked profits and stop loss is at entry level so no risk there)

EUR/USD Sell Signal. No fuss sell signal simply set your orders and walk away. 

You can see that our charts have remained nearly the same in the past 7 years of trading. Thats when I started this blog, back in 2010. And still trading the same system? One would wonder why? ... IT WORKS...

CAD/JPY Buy Signal - AIMS The Hunt - Cherry Signal 

Here is another open trade where we are long using A Cherry Buy signal. Its a simple process, you  get a signal, you apply your filter rules. Most of the entry rules are coded into these indicators so you need not do that analysis. Its already encoded.

A good trade where we have taken half at 1R and letting it hit its take profit level. We'll see tomorrow.

Have a good night ...

CAD/JPY H4 Buy Signal - AIMS The Hunt - Cherry Buy Signal 

Friday, 10 February 2017

The Power of TZ1

When we take a trade we already have a fair idea where it might end up. Usually there is 1-3% profit available risking only 1% per trade. Look at this EUR/USD H1 chart. A lovely hit of TZ1 ... If you went short yesterday and had your Take Profit just above TZ1 , as in the picture below, you made 2% easily.

EUR/USD hits TZ1 target profit point nicely.