Category Archives for General

3 Profitable Stock Trades YOU Can Learn From

On today’s video I’m going to go through 3 stock trades; STT, PBA & WST – I think you’ll be able to learn a lot from this video so be sure to let me know what you think of it. Have a profitable day and hope it helps you.

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Understanding Price Action [Part 2]: The “Smart” Trading Indicators That Actually Work

Legendary trader Richard Dennis said:

“You don’t get any profit from fundamental analysis. You get profit from buying and selling. So why stick with the appearance when you can go right to the reality of PRICE?”

That’s why professional traders can make a consistent income with nothing but a blank chart…

Price is the foundation from which a successful, long-lasting trading methodology is created.

…and once you understand it, you’ll see it’s the closest thing to a “holy grail” for trading the markets.

Now this doesn’t mean you can’t use any indicators.

You can.

And I do.

However, only a few indicators actually support price action.

And when used correctly, they make your analysis even easier.

See which indicators I use below…

 

Here’s where you can get the most advanced chart-reading techniques that practically predict market direction.

Understanding Price Action [Part 1]: How to Read a Chart in Less Than 5 Minutes

The first rule my dad (and mentor) shared with me was:  “Everything you need to know can be found in the chart.”

It took me years of plotting charts by hand before I understood exactly what he was talking about; however, before long, I began to see predictable, repeatable and reliable chart patterns.

Patterns that represented buy and sell signals…

…patterns that told me when a trend was beginning and ending…

…patterns no one else seemed to see.

Until one day it all clicked and I finally had the edge I hoped for…

 

Here’s where you can get the most advanced chart-reading techniques that practically predict market direction.

3 Potential Stock Trades Setting Up

On today’s video I go through three potential stock trades that are setting up for tomorrow; CHRW, AAPL and TAP – be sure to watch the video for the exact trade details for each potential play. Have a great evening and I hope the video helps.

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A Personal Message from Todd

Just a quick 4th of July message from me to you 🙂


No matter where you are in the world – or what you may be celebrating – have a wonderful and safe weekend!

Your friend,
Todd

Trading Plan

11 Steps for Developing a Successful “Trading Business Plan”

Trading PlanEvery successful trader must have a written “Trading Business Plan” in order to stay disciplined and focused. Developing a thorough “Trading Business Plan” will help guide your trading. This outline is for those of you who are trading or investing for yourself. Those of you who are trading other people’s money (maybe a hedge fund, etc.) will need something much more elaborate than this. Please make no mistake about it though… This is VERY IMPORTANT in order for you to become a successful long-term trader or investor.

Alright, the 11 steps below are a brief outline for what needs to be incorporated into your overall “Trading Business Plan.” Each piece is essential:

  1. You must have a Mission Statement. What’s the real motivation behind your trading?
  1. You must spell out your trading/investing Goals and Objectives. You cannot get from A to B very easily unless you truly know where B is.
  1. You must spell out your Trading/Investing Beliefs and Market Beliefs. Please remember this important statement, “You cannot trade the market. You can only trade your beliefs about the market.” Therefore, it’s a very good idea to identify your beliefs about the market first.
  1. Spell out your exact Trading Strategies. How do you go about analyzing the market, and what are the key things you look at in your market analysis? What trade setups do you use before entry? What are your timing signals for market entry? What is your catastrophe stop loss? Where and when will you take profits? Will you use a trailing stop? Will you scale into the market? What exactly is your trade management system once you’re into the trade?
  1. What are your Position Sizing Strategies? This is part of money management, and is very important for reaching your trading goals and objectives in terms of profitability.
  1. What are your typical Psychological Problems when following your trading plan? What is your plan for psychological management when dealing with these problems?
  1. What are your Daily Trading Procedures? What should you be doing on a daily basis, not only to become organized, but also to become methodical in everything you do as a trader on a day-to-day basis.
  1. Do you have an Education Plan to help improve yourself on a continuing basis? If not, you should. Like anything else in life, you need to be continually working on yourself to become better and better.
  1. What is your Disaster Plan? What can go wrong? How will you deal with each item?
  1. What is your Planned Income and Budget for Trading Expenses? This is pretty simple and straightforward: write down everything you can think of and try to be as realistic as possible.
  1. How do you prevent trading mistakes and avoid repeating them if they occur?

Really sit back and think about it. Write down any and all mistakes that you might make during your trading. Once you do that, come up with a solution for each potential mistake – so you don’t allow them to happen, or know what to do if they do happen.

Having a “Trading Business Plan” of this nature is so very important, I rank it among the top requirements for all traders and investors to complete. If you don’t already have something similar, I highly suggest you start developing such a plan. I can guarantee that you will become a much better (and more prepared) trader.

Trading Chart

82 Statements of Successful Trading

Trading ChartEvery serious trader should not only understand each of these trading principles/ statements, but should also abide by them as if their lives depended on it!

That is, if they truly want to be successful traders!

  1. Always listen to what the market is telling you.
  1. Do NOT try to outguess the market, rather let it serve as a guide on how to trade the setup.
  1. Waiting for the trigger before taking a trade helps you trade consistently and avoid speculation.
  1. Many professional traders and institutional buyers buy breakouts. When money starts flowing, you can ride the coattails of the large money on the way up.
  1. Buying bottoms and shorting tops is largely a failing method, despite the predisposition of most new traders to attempt these types of trades.
  1. All breakout traders have to deal with the reality of false moves and whipsaws – so I suggest NOT entering the market on breakouts, but rather buy and sell on pullbacks (i.e. retracements).
  1. Successful trading is much more difficult than it first appears. It requires a long process of market watching and practicing chart pattern recognition.
  1. There are NO Guarantees in trading. No absolutes. Anyone who tells you otherwise is trying to sell you something.
  1. People often underestimate the effectiveness of simple trading methods, focusing more on advanced techniques – in essence, equating complexity with profitability. Technology has fooled many traders into believing the more complicated a trading strategy is, the better the chances of success. However, simple trading rules CAN produce profitable, systematic trading approaches that are easy to understand and execute.
  1. All traders are opportunists, and will/should take advantage of any benefit offered to them.
  1. If a trader can’t make money with what’s available now, they won’t make money by inventing a new indicator.
  1. We think even day traders need to do some macro work.
  1. Take what the market will give you. Don’t become greedy or you’ll suffer.
  1. Personal issues that are not properly handled can sabotage the best trading methodology and the most committed efforts.
  1. Streaming quotes and fast executions won’t make you a penny if you don’t have a sound trading methodology.
  1. Making money trading is never easy, but without a sound trading methodology, it’s virtually impossible.
  1. Always look to reduce your risk first, then look to increase your profitability second.
  1. To keep winning in the markets, you have to continue trying to improve your skills as a trader.
  1. If you’re truly serious about trading for a living, one of the first things you should set out to do is find a winner to emulate. Find a mentor who’s been there.
  1. One of the most common reasons that traders put their trading on hold is fear – fear of making a serious mistake, of not being perfect, of failing, of losing face, of losing all their capital, and of feeling pain. In each case, the fear is of some kind of loss, and loss always results in pain.
  1. Profitable day trading often comes from capturing market swings without regard to the overall market trend.
  1. Volatility is the essence of trading, creating the reward and risk that makes a market.
  1. Complacency with a trading approach is a real danger in trading.
  1. Bulls make money and bears make money, but PIGS get slaughtered.
  1. Oscillators can be used to help give trade signals, confirm trades, offer timing clues, and help identify general market trends – but a successful trader still needs to understand price action analysis.
  1. Most traders’ real problems are in their failure to cut losses short – an inability to be disciplined, letting their egos get personally involved in the market, fear, greed, and a lack of risk management.
  1. I recommend analyzing every trade you make – it WILL be the best learning tool you’ll ever have.
  1. Never think of trading in terms of the greed factor. Always think of the loss potential first.
  1. What separates the pros from the amateurs is when a trade doesn’t reach its potential profit level, the pros are still able to exit the market with a profit.
  1. If new traders can last six months to a year, they definitely have hope of succeeding.
  1. It’s very important to do something to occupy your mind away from the market – take breaks.
  1. Know your trading personality. That’s what separates winning traders from losing traders.
  2. Trading losses need to be monitored, but profits take care of themselves.
  1. If you focus on the money, you tend to make more trading mistakes because you get too emotional. You must focus on your trading – you will then make better trading decisions. Sometimes this is easier said than done… But it is very important!
  1. A trader’s success or failure ALWAYS comes down to their mental state of mind. It’s the most important!
  1. Emotions can never be completely eliminated from trading, but by cultivating an awareness of patterns that impact your trading, you will better manage that emotional edge.
  1. An ongoing look at a trading journal – and the analysis of individual trades – will definitely help in your success as a trader!
  1. Understanding the risk and reward characteristics of your trading methodology/system is vital to consistent success.
  1. Discipline, patience, persistence, and a well thought out trading plan will definitely help with the emotions and psychology of trading.
  1. Most successful people have lost more than they have made.
  1. You must believe in yourself and have confidence in yourself. Without it, you will never become a successful trader – NO question about it!
  1. You MUST have realistic goals when trading the markets.
  1. Let me ask a few simple questions: What’s the most you’ve ever lost in a trade, and how long did it take you to lose that money? Were you able to recoup that money? How long did it take to let go of your loss and move on?
  1. One of the best kept secrets in the trading world is: “Almost Nothing Turns Out As Expected.”
  1. The best trading plans usually go wrong. Not occasionally, not sometimes… but usually.
  2. Most traders want certainty & reliability. They want a system, an advisor, or a market indicator they can count on to tell them what to do. The more they don’t get it, the more they want it.
  1. Trading systems NEVER produce the results advertised, forecasts rarely come true, trading advisors with records of phenomenal success almost always fail to deliver, and the best trading analysis is contradicted by reality.
  2. Most traders’ lives are filled with a continuing series of examples that didn’t turn out as planned. A majority of traders continue to hope that success and certainty are just around the corner.
  1. Most people are first attracted to the markets by the thought of “making a lot of money fast without having to really work for it.” THINK AGAIN! This is definitely the wrong thought process for success – especially in this business.
  1. No one will look after and trade your money the way you will. NO ONE, Period! Do NOT let any supposedly competent “advisor” trade or manage your money.
  1. Most traders keep searching for the “Holy Grail,” but never find it. A “Holy Grail” does NOT exist in this business.
  1. If you want predictions, read the Enquirer.
  1. When you give up the hope that some advisor, some system, or some source of inside tips is going to give you a shortcut to wealth, you’ll finally begin to gain control over your trading/investing future.
  1. When you finally give up the search for “certainty,” an enormous burden will be lifted from your shoulders. Then you can finally begin to learn to trade/invest realistically and successfully.
  1. Realize that trading is a psychological game, rather than an economic, fundamental, or technical game.
  1. Realize that understanding yourself is the KEY to profit making decisions and strategy.
  1. Don’t Struggle. Remember: the market is always right.
  1. Always try to follow the path of least resistance.
  1. We, as traders, don’t deal the deck – We Just Play The Percentages.
  1. There are only three areas to master in trading:
  • Knowing ourselves
  • Knowing what to do
  • Doing what you know
  1. Moving average crossover systems generally lead to whipsaws.
  1. Realize that, once you make up your mind to work on issues that are blocking your success, there is no stopping you when you apply the right trading method(s).
  1. Always start off by paper trading to see if you truly understand what you’re doing. Remember, there is NO rush. The markets will still be around tomorrow.
  1. Setting logical profit objectives is one great way to take the guesswork out of exiting the market.
  1. Always use stop losses! There are no exceptions.
  1. What you lose in money in the markets, gain in skill and knowledge. Learn from your mistakes!
  1. Always protect yourself with a stop loss technique. If you don’t employ stops when you trade, you WILL NOT become successful!
  1. There is truth in the old adage, “A fool and his money soon part.”
  1. Taking profits is a balancing act: hold on too long and you risk giving back your profits; get out too soon and your gains might not be worth holding on to. By using a methodical approach to solve this puzzle, you can establish intelligent profit targets that only help enhance your performance.
  1. Trading, like any other profession, is an acquired set of skills that you must take time to learn in order to be successful.
  1. For most people, there’s a learning curve – a step-by-step process of obtaining skills in areas such as trade entry, trade exits (profit targets, protective stops, etc.), trade management, and money management… Not to mention learning to manage yourself psychologically.
  1. Hindsight is one thing… But in real time, you don’t know an exact outcome – especially in the business of trading/investing.
  1. Major obstacles in successful trading are:
  • Lack of confidence
  • High anxiety levels
  1. The more time frames you watch simultaneously, the more confused you will get.
  1. Some of the most profitable traders use a strategy of selling rallies in a downtrend and buying dips in an uptrend.
  1. Sell-offs accompanied by high volume often indicate downside exhaustion, and are generally followed by quick bounces.
  2. Traders who act quickly and use strict risk control can do very well in the markets.
  1. What separates a successful trader from an unsuccessful trader is composure and discipline in the market.
  1. Look for trades with the market, not against it.
  1. No matter what trading strategy successful traders use, they always know how to identify good trade setups – and do NOT push trades when they are not there.
  1. While the key to real estate may be location, location, location… The key to successful trading/investing is discipline, discipline, discipline.
  1. It’s not you against the market, but rather YOU AGAINST YOURSELF.

We hope you’ve been able to get something out of The 82 Statements of Successful Trading. Hopefully you’ve learned something new!

Yours in success,

Todd

Up $562 Trading E-Mini S&P 500 Futures Today

On today’s video I had a couple good trades in the E-Mini S&P 500 (ESM16.D) futures market that resulted in a $562 Profit. See how I bought the market at optimal times while the market was falling out of bed. Have a great day and hope the video helps you in your own trading.

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Small Profitable Trade In the E-Mini S&P 500

Today’s video contains a very small short trade in the E-Mini S&P 500 (ESH16.D) futures contract. It was very quick and a very small trade before the market moved a lot higher…thank goodness I exited when I did. Have a great day.

 

A Few LIVE Profitable Trades To Watch

On today’s video you’ll see that February has gotten off to a good start – be sure to watch the trades in the T-Bonds (USH16) and E-Mini S&P 500 (ESH16.D). Have a great day and hope the video helps – Todd