Happy New Year! – Welcome to 2014!

I’m so excited about all the things I will achieve in 2014! I wish the same for all of you! I have some great plans, some of which will involve you, and ways in which I can be a better trader coach, and improve your results!

Here are some great resolutions for Traders taken from an article by Anka Metcalf:

At this seasonal time of renewal, change and recommitment—this is the perfect time to evaluate our trading results and a time to make new resolutions. 

An old saying comes to mind:

“You can’t manage what you don’t measure.”

It is an old management adage that makes a lot of sense especially in trading. Unless you measure something you don’t know if it is getting better or worse.

Here’s my list. 

1.    Manage the tendency to overtrade.  What is overtrading? It is the act of excessive buying or selling of a security in a defined period of time by increasing the risk limit. A lot of beginning traders find themselves over trading and the sooner they find out that in this career the more disciplined you are and the more successful you are the better it is for the trader’s future. Discipline is what it takes to make it to the next level.  

2.    Cut your losers and let your winners run. You often hear this but how are you actually applying it? Losing trades are inevitable, they happen; there is no trader, no high frequency trading computer on the planet that only racks 100% winners, losing is part of the game. It’s important to cut your losses before they develop into a red stream of losing trades and starts damaging your accounts. Never add to a losing trade. This requires discipline (again). On the other hand when you have a winning, profitable trade it is important to let the profits run, do not be tempted to close the trade too soon on the first pullback, give it room to develop, give it room to breathe. 

3.    Keep a trading journal. If you are not already keeping a journal I suggest you start. Keeping a record of all your trades offers the best trading strategy self analysis. It will give you an inside look into your trading strategies, habits and behavior. By thoroughly documenting your trades you can reveal things that you are probably not aware of. 

4.    Trade the chart. If you are an equity trader the news at times might be already build in the price. If you are a currency trader things stand a little differently. Economic releases are the catalysts for market moves so it is important to pay attention to news releases throughout the world and have an action plan ready. 

5.    Choose your timeframe wisely. Choose your timeframes depending on your style of trading. Here are my thoughts from trading markets for over 10 years. 

  • If you are a currency trader, I always teach my students to stay away from the noisy intraday charts and take a step back and look at the longer time frames for many reasons but the most important are: it brings more clarity and it is easier to identify the trend, volatility and spread.
  • If you are an equity or futures trader it truly comes down to your style but also you need to pay attention to the time frame on which the pattern developed on (gap traders focus on the 1 and 2 min charts, trend traders on 5 and 15 min charts, swing trader on the 1 hour and daily chart, core trader weekly chart, etc)

6.    Responsibility. Take responsibility for your own trading decisions and trading results. 

7.    Have a diversified portfolio. Diversification is key. Never put all your eggs in one basket. Diversification reduces risk and maximizes returns by investing in different instruments or market sectors. The results will be asymmetrical and less volatile which is good for the portfolio. 

8.    Adhere to your own trading / investment plan. If you do not have one, it is time to develop one that will encompass your entire trading routine. Having a well detailed plan will reduce stress and emotions from trading.

9.    Education.  Always strive to improve your trading education. Self improvement goes hand in hand with New Year’s resolutions. Make it your goal for 2014 to learn something new to enhance your trading; there is always room for more and always something new to learn. Whether you want to learn how to trade globally, study another strategy, improve your investment technique or just take on another instrument.

10.    Follow your own trading rules. The bottom line is that we as traders need to get ready for 2014, and one of the best resolutions I can think of is to follow our own trading rules.

 

A New Year's resolution is something that goes in one Year and out the other.
A New Year’s resolution is something that goes in one Year and out the other.

Midweek Market Focus 18th December 2013

Hi everyone,

Here is your exclusive link to this week’s MWMF episode. The focus is on creating a short-list of charts that are providing you with the best trading opportunities.

Here is the direct link:

Have a great Christmas Y’all!

Ads

 

CHARTS TO WATCH UNTIL END OF JANUARY 2014

 

GBPUSD LONG

GBPJY LONG

GBPAUD LONG

GBPNZD LONG

GBPCAD LONG

GBPCAD RANGING/NO TREND

 

EURUSD LONG/RANGING

EURGBP SHORT/RANGING

EURCHF SHORT DOWN TO 1.2130

EURJPY LONG

EURAUD LONG

EURNZD LONG

EURCAD LONG

 

AUDUSD SHORT

AUDCHF SHORT

AUDCAD SHORT

AUDNZD SHORT

AUDJPY RANGING/NO TREND

 

NZDUSD RANGING/NO TREND – TRADE WITH CAUTION

NZDCHF RANGING/NO TREND – TRADE WITH CAUTION

NZDCAD RANGING/BULLISH – TRADE WITH CAUTION

NZDJPY RANGING/BULLISH – TRADE WITH CAUTION

 

CHFJPY LONG

CADJPY RANGING/BULLISH – TRADE WITH CAUTION

 

USDCHF SHORT – SOME CAUTION

CADCHF SHORT

CHARTS TO WATCH UNTIL END OF JANUARY 2014

GBPUSD LONG

GBPJPY LONG

GBPAUD LONG

GBPNZD LONG

GBPCAD LONG

GBPCAD RANGING/NO TREND

 

EURUSD LONG/RANGING

EURGBP SHORT/RANGING

EURCHF SHORT DOWN TO 1.2130

EURJPY LONG

EURAUD LONG

EURNZD LONG

EURCAD LONG

 

AUDUSD SHORT

AUDCHF SHORT

AUDCAD SHORT

AUDNZD SHORT

AUDJPY RANGING/NO TREND

 

NZDUSD RANGING/NO TREND – TRADE WITH CAUTION

NZDCHF RANGING/NO TREND – TRADE WITH CAUTION

NZDCAD RANGING/BULLISH – TRADE WITH CAUTION

NZDJPY RANGING/BULLISH – TRADE WITH CAUTION

 

CHFJPY LONG

CADJPY RANGING/BULLISH – TRADE WITH CAUTION

 

USDCHF SHORT – SOME CAUTION

CADCHF SHORT

Summary of the charts from today’s analysis:

Pending outcome of US Fed’s discussion of tapering over Tuesday and Wednesday this week:

EURUSD LONG

GBPUSD LONG

USDCHF SHORT

AUDUSD SHORT (WEAK AUS)

NZDUSD (AVOID- RANGING CURRENTLY)

NZDCHF (SAME AS NZDUSD ABOVE)

XAU – MORE BEARISH THAN BULLISH

USDJPY LONG

EURJPY LONG

GBPJPY LONG? (CHECK FOR GBP WEAKNESS IN OTHER GBP CHARTS)

AUDJPY – DO NOT TRADE! NO TREND, AND RANGING.

NZDJPY LONG – TRADE ONLY WITH EXTREME CAUTION – SHORT TARGETS.

NZDCAD – SAME AS NZDJPY ABOVE

CHFJPY LONG

CADJPY – WAIT FOR RANGE TO BREAK TO UPSIDE.

EURGBP

EURCHF TRADE DOWN TO 1.2130 ONLY

EURAUD LONG

EURNZD (AVOID)

GBPCHF BEARISH, BUT AT BOTTOM OF RANGE?

GBPAUD LONG

GBPNZD LONG – AROUND 1.9600, BUT NOT BEST CHART

GBPCAD LONG – SETUP IMMINENT – TODAY, TOMORROW

AUDCHF SHORT

AUDCAD SHORT

AUDNZD SHORT

ALL CAD PAIRS TRENDING TO THE UPSIDE- CAUTION ONLY ON WEEKLY RETRACEMENTS DUE.

BEST TRENDING CHARTS FOR END-OF-DAY SETUPS THIS COMING WEEK:

EUR LONG
GBP LONG
JPY LONG
CHF SHORT
EURJPY LONG
GBPJPY LONG
CHFJPY LONG
CADJPY LONG
EURAUD LONG
EURCAD LONG
GBPCHF SHORT
GBPCAD LONG
GBPAUD LONG
CADCHF SHORT
AUDCHF SHORT
AUDNZD SHORT
AUDCAD SHORT

WAITING FOR CLARITY- RECOMMENDED AS A DO-NOT-TRADE LIST:
CAD LONG?
AUD SHORT?
EURGBP SHORT?
EURCHF SHORT?
AUDJPY?
NZDJPY?
EURNZD?
GBPNZD?
NZDCHF?