Friday, November 17, 2017

Self-Confidence Strategy [#1] | Trading Psychology



Today’s Trading Psychology question of the day…

“Before I found you on YouTube, I joined one of those chat rooms a few months ago to learn how to trade, and I lost all the money in my account in only a few weeks.  I’ve learned that people who know how to trade won’t give away their knowledge for $99/month, haha, but needless to say, this experience has killed my self-confidence and I need to find a way to get it back.  Do you have any suggestions for getting back my confidence?”

Great question… and something that every trader deals with on their journey to becoming consistently profitable.

Most traders assume that self-confidence comes from positive thinking, but in my own personal experience, self-confidence is knowing that you can handle the worst situations and come back stronger than before.

In other words, self-confidence doesn’t come from being right all the time, it comes from surviving the times when you’re wrong, or at your worst.

A great way to build self-confidence is to focus on how you trade after you’ve lost money. 

We know that confidence is build by overcoming challenges, and the biggest challenge we have to overcome as traders is digging out of a hole from a previous loss.

There are five (5) aspects of building confidence after a loss:
1.      Following Your Rules When Entering a Trade
2.      Keeping Losses Small
3.      Avoiding Revenge Trading (Staying Patient)
4.      Entering the Next Trade Correctly
5.      Managing the Next Trade Correctly

Follow Your Rules:

First, you need to make sure you’re following your rules, entering the correct trades, at the correct time, with the correct entry technique.

Thursday, November 16, 2017

Friday’s Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro



"Knowing is not enough; We must apply. Willing is not enough; We must do."
 Crude Oil is range-bound, so my plan is to buy the low, sell the high, avoid the middle, and focus on failures tomorrow morning.

S&P is bullish with a Spike & Channel pattern, and I’m watching for a pullback to the prior month high for buying opportunities going back to the prior week high tomorrow morning.

Nasdaq is bullish with a strong spike higher today, telling me to look for a ‘2-legged pullback’ into the ‘battle zone’ for buying opportunities going back up to re-test the high tomorrow.

Gold is bearish with a Spike & Range, telling me to focus on failures for selling-opportunities up above the range high tomorrow morning.

Euro is bearish with a short-term trading-range, telling me to look for buyer-failures above the range or a successful breakout-pullback to new lows tomorrow morning.

Wednesday, November 15, 2017

5 Ways to Trade with “Balance” | Crude Oil, Emini, Nasdaq, Gold & Euro



“Talent is cheaper than table salt. What separates the talented individual from the successful individual is a lot of hard work.” 

Crude Oil is range-bound with a triangle, telling me to focus on failures, selling above the highs and buying below the lows tomorrow morning.

S&P is range-bound just above the prior week low, so my plan is use the '2-Try Rule' to fade the breakouts until something changes tomorrow.

Nasdaq is range-bound with a triangle, telling me to avoid the middle and focus on failures up above the highs and below the lows tomorrow.

Gold is bearish with a Spike & Range, telling me to use the '2-Try Rule' to sell up above the range high tomorrow morning.

Euro is bearish with a Spike & Channel, so I’m focused on selling with buyer-failures up above the moving-average tomorrow morning.

Do You Expect to Win? | Trading Psychology



Today’s Trading Psychology question of the day…

“JJ…I’ve been learning to trade for a few years now, and one of my biggest problems is that I do a lot of prep work before the day begins, to the point where I am too aggressive with my trading and I often lose money.  I’m starting to think that it’s better for me to just wake up and trade what I see, rather than doing hours of work beforehand.  Any advice?”

Wow… this is an awesome question!  Here’s another question…

“Are you so prepared for each day that you expect yourself to win?  Is that causing you to focus on the profit, rather than the process?  Are you over-preparing because you’re actually scared of the fact that you don’t have any control over what the markets do?

Is it possible, that with all of your preparation you do before the opening-bell that you find yourself in a position where you almost feel “entitled” to make money that day?  And if you don’t… does it all come crashing down when you lose money?”

Boy… I definitely know that feeling, I’m the same way.

I remember learning to trade many years ago, and like a lot of traders, I would get up a few hours before the opening-bell, do a ton of prep work, and have a great plan of exactly how I was going to trade that day…

…then the opening-bell rings, the market reacts differently than I predicted, and I take a foolish trade right out the gate because I thought I was prepared for everything, but in reality, I didn’t have a clue what I was really looking for.

Tuesday, November 14, 2017

Secret to Trading with “Spikes” | Crude Oil, Emini, Nasdaq, Gold & Euro



“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.  What’s your position?”
Crude Oil is bearish and trading at two levels of major support, telling me to look for a ‘2-legged correction’ off the lows for selling-opportunities up in the ‘battle zone’ tomorrow morning.

S&P is bullish and running back to the high of the range we spoke about last night, which tells me to look for “traps” before we get back to the highs tomorrow.

Nasdaq is bullish and rotating back to the high of the weekly range, and my plan is to use “traps” to avoid buying too high tomorrow morning.

Gold is bullish with a Spike & Channel, telling me to look for seller-failures using a rising support trend-line tomorrow morning.

Euro is bullish with a strong spike higher, which tells me to look for a ‘2-legged pullback’ for buying opportunities in the ‘battle zone’ tomorrow morning.

Monday, November 13, 2017

Who Controls the Market? | Crude Oil, Emini, Nasdaq, Gold & Euro



“If we want to direct our lives, we must take control of our consistent actions. It’s not what we do once in a while that shapes our lives, but what we do consistently.”

Crude Oil is range-bound ahead of tomorrow monthly IEA Oil Report, which means the plan is buy the low, sell the high, and focus on failures tomorrow morning.

S&P is bullish with a Spike & Channel, but we’re trading directly into major resistance, so my plan is to wait for a pullback into the ‘battle zone’ for buying opportunities tomorrow morning.

Nasdaq is bullish with a Spike & Channel, but the LOCATION of this pattern is a big concern, so I’m waiting patiently for a ‘2-legged pullback’ into the ‘battle zone’ for buying opportunities tomorrow morning.

Gold is bearish with a flag pattern, which tells me to look for buyer-failure up above the channel high tomorrow, while watching for a possible reversal if those buyers can hold.

Euro is bullish, and a great example of the '2-Try Rule' is telling me to avoid buying the highs, and wait for a more reliable buying opportunity down at the range low tomorrow morning.