How the late Muhammad Ali can help with your trading success!

We have lost yet another legend.

Not only was Muhammad Ali a former Olympic gold medallist and first fighter to win the world heavyweight title three times, he was also an inspiring, controversial and outspoken figure for life and for racial pride. 

Sure, sometimes he did sound a bit overconfident and cocky. But that's what made him the success he was. 

One of my hobbies in life is to follow these rare champions and successful entrepreneurs. And as soon as I hear or read a powerful quote, I can't help but write it down and relate it to my own trading. 

Here are four powerful quotes by the champion himself to help you with your trading career.

Quote #1: “He who is not courageous enough to take risks will accomplish nothing in life”

Whether it’s trading or investing, you have to take a risk to grow your portfolio.

After all, you’re basing your “bet” decision on whether the market will rise or fall.

The trick is to find a trading strategy which is proven over time. A trading strategy with at least a 55% to 60% average win rate, means you’ll win 6 trades out of 10.

And the risk doesn’t end there.  

You might choose a strategy where your winners are smaller than your losers.

Even with a 60% win rate, your losers will blow your portfolio because of the big losers you take compared to your winners.

You need to be courageous enough to place your take profit levels at least two times higher than what you’re willing to risk.

Only this way you’ll accomplish building your portfolio more consistently.

Quote #2: “Float like a butterfly sting like a bee”

There are only three directions the market moves.

Up, down or sideways.

And when the market moves sideways, and you’re a trend trader, this is where you can take the most losers.

This is where the stock or currency bounces up and down in a range which can cause you to take consecutive losses.

So with the quote. ‘float like a butterfly…’, I refer to your patience levels.

If your trading strategy incorporates buying in a market that is rising with a trend. You need to be able to wait patiently for the market to establish a strong uptrend, and not trade during the sideways range and vice versa.

Be patient and wait for your winning trading system to line up.

And with the ‘sting like a bee…’ I’m talking about actioning the trade.

When your strategy eventually lines up a high probability trade, take the trade without thinking twice.

Quote #3: “Silence is golden when you can’t think of a good answer”

Sometimes, you’ll find yourself looking hard for a trade while the market is going sideways.

If you tend to take more than two minutes to find a trade in the market, stop!

When you have a trading strategy, a trade line-up should stick out like a sore thumb. So rather, acknowledge that there aren’t any trades lining up and just move on to the next stock.

Sometimes the best answer, is to do nothing at all. This will save you from taking low probability trades, which can hurt your trading portfolio.

Quote #4: “Even the greatest was once a beginner”

There are no lucky breaks with trading.

Every successful trader and investor started off like any normal kid starts school.

They began with education (learning the markets), making mistakes (losing money over and over) and finally, making money through hard experience.

The markets dynamics, in terms of demand and supply, have not changed since the Tulip craze of the 1600’s. So don’t be discouraged to start trading.

Take your time and learn the methods. Whether it’s through reading financial books, technical analysis books, YouTube videos, attending seminars and so on…

I want you to remember something when it comes to trading.

You can only get better through learning and trying, as long as you make sure your school fees aren’t that high.

Don’t be discouraged by traders who are making their millions and driving fast cars. Every trader started at the beginning. The trick is to start now and succeed later.

Are you feeling empowered?

I’m sure by now, you’re feeling adrenaline rush through your veins and empowered to start trading. Trading psychology is the biggest mover you can use to feel inspired in the markets.
Just like in any game, sport, business or venture.

So, I encourage you to read Trading Tips, learn to trade the markets, join Trading Facebook Groups, watch a few YouTubes and don’t stop trying new things.

I promise you if you train your brain, practise and trade, YOU WILL find the trading master within yourself.

Always remember,

“Wisdom yields Wealth”

Timon Rossolimos 

The Brexit ahead, MTN, Bidvest and the JSE market in general! - 23 June 2016

This one hidden cost can destroy you as a trader!

Two weeks ago, I attended a business conference at Château de Courtomer in France.

From 8:00 am until 4:30, I attended meeting after meeting in different rooms in the castle.

It was productive for business and it was a wonderful opportunity for Trading Tips as I now have new and exciting ventures I'll be working on for you.

Unfortunately, during this trip. I was hit by the biggest hidden cost every professional trader dreads..

If I hadn't made this mistake - I could've paid my trip to France and then some.

Today, I'm going to tell you about this hidden cost and share the mistakes I made.
Let me explain.

Plan your trades ahead before you travel

The cost that I’m talking about is your“Opportunity Cost”.

An opportunity cost is the loss of other alternatives when one alternative is chosen.

If I hadn’t chosen to travel to the conference, I would’ve taken three trades which would’ve banked me the amount that could have paid for my entire trip to France and the United Kingdom.

But instead, I decided to put trading on hold for that time.

Lesson learnt. So here’s what I want you to do.

Go to your trading platform and see if any trades are lining up for the near future, before you travel.

Write down all of the potential trades that are lining up, and schedule them the day before.

By schedule I mean, put in your trading levels for getting in your trade. And put in your stop loss and take profit level for getting you out automatically.

If your trade has not set up the night before, make sure you find a place with Wi-fi where you can look for trade setups later on. Or do yourself a favour and buy a Wi-fi dongle. This way you’ll have internet wherever you go.

First thing in the morning before you attend your conference or meeting, logon to your trading platform and search for any high probability trades which you can set up for the day.

If you do this, then there’ll be no opportunity cost you’ll take, while you travel.

You’ll be away for the rest of the day, so unfortunately you won’t have time to check on your trades. This means you need to set proper money management conditions.

Lower the risk in case something goes awry in your trade while you’re away 

It can be daunting leaving your trades alone in the market while you’re away from your charting platform…

I have two solutions for this concern.

First, lower your usual position risk that you have per trade. So if you risk 2% on a trade in general, lower it to 1.5% of your portfolio instead.

This way you’ll feel peace of mind knowing, you don’t have much to lose in case the trade goes against you.

And second, there is always a possibility of the market jumping your levels past your stop loss.

This means, you can lose more money than what you anticipated.

In this case, put in a Guaranteed Stop Loss, where you can’t lose more than what you plan to lose if the trade hits your stop loss. GT247.com is a well known Forex broker that has the Guaranteed Stop Loss option.

If you’re a regular traveler, you’ll need to consider these options to make your trading more easier to handle.

And if you miss a trade or two along the way, remember this.

It’s not the end of the trading world

Sure your results might be skewed according to what your portfolio looks like and what it should look like, due to missed trades.

But remember, the market isn’t a short term venture.

It’s a forever income generator that will make up for any missed trades you didn’t take.

I might be kicking myself now, but I know I’ll make up for the lost trades in the next month, quarter, year and so on.

Here’s a summary for your trading while you’re away Tip #1: Plan ahead before you go somewhere Tip #2: Find a place that has Wi-fi or make sure you buy a wi-fi dongle to use to set up your trades first thing in the morning. Tip #3: Lower your risk per trade, to help you feel at easy being in the market while away Tip #4: Place a Guaranteed Stop Loss, if you’re afraid the market will jump your stop loss Tip #5: It’s not the end of the world with your trading, you’ll catch up in the medium term again.

I want you to just print out the five tips, in case you travel and need a plan to trade while you’re away.

You won’t regret it!

Always remember,

“Wisdom yields Wealth”

Timon Rossolimos