TraderGav.com

Gav's trading blog - Perseverance, Consistency, Confidence

Trading Lessons

Find Trading Opportunities With Fibonacci

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I do not intend to write a post to pitch EWI. But these guys are doing some great works in helping traders to learn and trade the markets. And a lot of the materials are, in fact, available free. A good example is the Ultimate Technical Analysis handbook. I would really recommend you have a read on that.

For the coming few days (now till 30th November 2009), EWI is giving away a ebook Find Trading Opportunities With Fibonacci. Here is the summary of the book, I think, it is worth checking out.
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Video: John Murphy on INO TV now

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INO TV has recently added one of John Murphy’s seminar “Applying Technical Methods to Today’s Trading”  in the free video library. I think it is definitely worth the time to check it out. All it requires is signing up a free account to access to the video. Details here.

INO_TV

In addition, there are some featured videos available as well, such as Crude Oil and Energy Update and Market Wizard insights by Jack Schwager.

Worth noting

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Joe Ross posted a link on twitter with title ‘A simple Idea to improve your trading’. I thought it is a good reminder to all my readers here.  And I certainly agree with the quote below, and being disciplined in trading methodology execution was and is the key of my consistency.

I feel certain that my discipline in executing each and every trade according to my trading methodology is the secret to my success. If you want to improve your trading, what you need to do is very simple. Before you enter any trade, imagine that you will have to explain this trade to a panel of your peers, by explaining to them the reason for your entry, your money, trade, and risk management guidelines, and why you exited the trade. Imagine having to explain why you chose this particular market and this particular time frame, along with how you set objectives for the trade, and how you determined where your initial protection would be. If you can truly do this, I strongly believe that you can be successful.

A blog post and something about stocktwits

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I read a recent blog post on TraderFeed. This caught my attention, echoing my mind.

Traders need to develop ways of seeing markets that are unique to them, that make sense for them, that fit their risk tolerance and lifestyle, and that best make use of their skills and talents. Simply giving traders ideas could actually stunt their development, much like doing a child’s homework for them.

An important challenge in trading is that there is typically more valuable information streaming from markets than a single individual can reasonably process on their own….

full post here.

That is the main reason why I hardly, or never use service like Stocktwits. OK, I am not against Stocktwits. It is a brilliant idea from some entrepreneurs. But, is it really useful for trader’s development? Well, Caveat emptor. Personally, I do not find it to be useful for my own development. To me, it is just a stream of random tweets, good or bad of so called ‘trading ideas’, valuables and junks, marketing of premium services, repeated links etc.  But, this is just me. I believe, some users are finding it to be helpful to them. By all means, go for it. I’ll leave it to you to decide, and please, do not try to argue in the comment why I am wrong. I don’t care.

Instead of wasting time following somebody, I guess, it will be better off for trader to be away from social networking, and develop his own view, own way of seeing markets.  With that skills, then the streams of tweets might give you some good ideas.

Quote from Interview with Tom Basso

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Here is an important note quoted from Van. Tharp’s Trade Your Way To Financial Freedom, 2nd Edition. Just to note it down here, and hopefully it helps some of the 12 readers.

Given your goals in terms of returns and drawdowns, what kind of initial risk stop do you want? If it’s close, will you be able to get right back into the market so that you will not miss a move?

Stops, in my opinion, should be a violation of the reason why I wanted to get into the trade in the first place. And yes, I always have a way to get back into the trade.

My stop is a function of the market and what it’s doing. It’s only in directly related to risk – unless the risk is too big for me to even take a position. I control risk as part of my position sizing.

Have good trading week ahead.