5 Stupid Trading Advice Points

 

There is the right way to motivate your trading and there is the wrong way.

Very wrong way.

You will be told what you should do by new and inexperienced traders which could have a major negative effect on your trading.

My job is to help spot the good from the bad so you can be steered in the correct direction to trading well.

In this article, I’m going to reveal some stupid advice that you may hear to help you avoid from making the wrong choices…

Let’s go.

 

Stupid #1:
Go big or go home

You may here this statement from your friends or even from the voice inside your head.

Whether you’re in a losing streak or you took one whopper of a loss.

It’s very easy to want to fight back and claw your losses.

How you ask?

By taking the reverse position, increasing your size and hoping for the best.

This is where your ego takes over and you forget your good money management rules that you have been programmed to follow.

Instead, you get into an undefined and impromptu trade. You don’t calculate your take profit and you certainly don’t think of even putting in a stop loss.

This is a dangerous way of thinking. Remember, trading is a LONG term journey to consistent profits. You want to follow a strategy that you know works.

So, don’t listen to stupid advice of GO BIG OR GO HOME.

In the end you will end up going home and blowing your account.

Stupid #2:
The next trade will be better

No.

We never know whether a trade will be a winner or a loser. Hence, we place our stop loss in every trade we take.

We can’t predict how the trade will play out because of numerous factors that drive the market.
Price, demand and supply, fundamental analysis, algorithmic changes and new position sizes coming in.

You know when a trade is the best? At the entry.

If you followed your rules exactly and you follow your strategy, you’ve done the BEST you can do.

A trade never gets better than that.

#Stupid #3:
Follow your heart

Does this trade feel good?
Do you have a good feeling about this trade?
Do you believe the universe will reward you with this trade you take?

Forget it. Cut out the emotions, feelings and instincts!

You need to stop with the expectations of trades. Either it will hit your take profit or stop loss, period.

No market knows you, cares about you and there is no financial angel who is looking down on you telling you the future of a market.

If that was the case, we’d have millions of successful traders without strategies.

The market is a cold, calculated and probabilistic entity – think like the market and you’ll have some chance of winning.

#Stupid #4:
Everything happens for a reason

Another esoterical approach to why you lost money.

Because of karma, because of your friends wishing bad on you, because of some curse.

Come on… You are in the financial market den of demand, supply and probabilities.

We are bound to win some, lose some, rinse and repeat.

Only reason you should have is what your proven strategy tells you, when and what prices.

#Stupid #5:
Work harder and you’ll win more

Financial markets has no correlation to working hard and profiting more.

Sometimes, the more you trade and are in the market – the higher the chances you’ll blow your account sooner.

Rather think and work smart, choose trades carefully and grow your account on a slow and consistent basis…

15 minutes a day is all you need for analyses and trading. Unless you’re an intraday trader, but that is different cattle of fish to deal with.

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Why going to gym is like trading well

 

Let me ask you something.

So you want to be a trader right?

You want to make an income for a living.

And yet most people start trading and feel they have to do what they can to retire the next week.

This is like going to gym for the first time, picking up the heaviest weights, pumping the protein in your body and expecting a 12 pack the next day.

Doesn’t work like that.

In this article, I’m going to explain why going to gym is like trading well.

You got to put in the work

When you finally decide to commit to gymming, you’re dedicating a life of pure dedication, effort, time and a new lifestyle.

You adapt a strict and consistent routine and have the discipline to sweat and repeat for the next day.

Trust me I know. I’ve been gymming four times a week for almost two decades, and it’s been trying but rewarding.

Later in life you, you realise a few things like.

Oh wait, I can see a six pack.

My muffin tops are becoming cupcakes.

My stomach isn’t pressing on my cell phone’s buttons like before.

I can actually climb a flight of stairs without heaving!

I see progress!

Same goes with trading.

You need to decide to commit one day. Have a specific routine in the day or week and follow your strategy.

For example, three times a week at night I like to load up my trading charts and carefully scan through my entire watch list.

I do this to see, if any trades are lining up for tomorrow. Then I set my entry, stop loss and take profit levels.

Before you know it, it becomes second nature.

Pick up heavy weights when things are too easy for you

Then when you’re starting to get used to your gym routine, unfortunately you need to upper the levels.

You need to pick up heavier weights, learn new machines and workouts and even upper your cardio levels.

This is what you need to get stronger, be leaner and see faster results.

With trading, you need to pick up your game to become richer.

I don’t mean risk more relative to your portfolio. If you risk 2% on a trade, keep it at that. Never risk more.

But you can start to deposit more into your account.

So instead of risking a mere R200 off a R10,000 account, you can risk R2,000 off a R100,000 account.

The more money you deposit into your account, the faster and bigger your account will grow.

Don’t over train, don’t over trade

Remember, I told you to not just go all out at the gym in the beginning.

The reason is, you’ll pull a muscle, lead to a slipped disk, you’ll tire yourself out.

Training is a marathon and you need to follow the process incrementally.

With trading, you need to have a similar mindset.

Don’t take too many trades at once. Don’t risk your entire portfolio out of the hopes you’ll grow your account faster. Also, never have more than 5 – 8 trades opened at once.

And if you feel stressed not knowing whether you’re doing the right job to grow your account, then there are two things you can do.

Back and forward test a trading strategy until you see exactly the results you can expect in the future. This can take a few months, to get right but it’s essential.

Or you can take the shortcut, and follow the trades I take on a weekly basis… This way you’ll get the full reasoning, trade levels as well as the strategy for you to learn.

Then when you’re ready to go on your own, then by all means. At least you would have been guided the right way to trade well.

I’m sending my next high probability trade tomorrow, so don’t miss it by clicking here to sign up to my signals.

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Why didn’t you take the trade?

 

It lined up perfectly.

The opportunity was there.

And yet you didn’t take the trade?

You know we only have one job as a trader…

To take the trade. Then take the next one when it comes our way. Then we repeat the process forever.

So, I’m going to now guess why you didn’t take the trade and let’s see if I’m right…

Ok?

10 Probable reasons why you didn’t take the trade

1. You didn’t feel like it

2. You saw some external indicator or news event that stopped you from taking it

3. You looked at the overall market environment and it just didn’t feel right

4. It lined up but it just did not look perfect

5. The market has moved too much in one way or the other that you don’t want to take a chance

6. You’re scared to lose any more money

7. You don’t want to spend any more money on a trade

8. You don’t fully trust your system yet

9. It’s your birthday or some day of the year where you refuse to take a trade with the risk of losing money

10. You believe you know better this time than what your system is saying

Now let me save you some time and tell you something.

These are NOT reasons to not take a trade.

These are excuses that are completely unnecessary.

If you have a proven system like the MATI Trader System and it lines up – You just take the trade.

If you have the rules for when to take a trade and the rules come into fruition – You just take the trade.

Next time when one of those silly excuses line up and you just can’t put your finger on the button I want you to say one thing…

JUST TAKE THE TRADE.

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A TRADER without these 3 PLANS will NOT succeed

 

I got a private message yesterday on Twitter @Timonr.

“I’m trying this trading thing out when ever I find a second in the week.

So far it’s hardly getting me anywhere. Any tips?”

Ye… Don’t try. DO!

Let me ask you something…

Do you own a business or have a job?

Do you know how to get by every month putting food on your table?

If YES, then you’ll know for a FACT that:

“trying” to do your job.

“Trying” to run a business.

“Trying” to eat every day.

Is going to lead to failure and a disaster.

You have a higher chance at making no/little sales, becoming an undesirable employee and physically becoming unhealthy and unattractive.

Same goes with trading.

Trading isn’t a trying business. It’s not something you do when you have a found a minute in your week or day.

You’re going to get nowhere by “trying” with such little effort.

If you really want to take this seriously and make an actual living, then you’ll need to have a PLAN. Scratch that!

You’ll need to have 3 PLANS.

A daily, weekly and yearly plan.

#1: SET YOUR

YEARLY PLAN

See this as the big game plan.

In one year what do you wish to achieve from your trading.

See your goals before you act on them, and you’ll find you’ll follow your path accordingly.

Here are some goals you should set for the year.

If you want to be more accurate with your yearly plan, make sure you have a proven and winning trading strategy to have a better expectation on what to achieve for your trading outcome and performance.

It’s not easy building one yourself.

If you want to get started right away, just know that the trial, error and level of optimization can take YEARS.

Once you’ve optimised your strategy and you find it works, then you’ll need to back test 20 trades, forward test (with paper money) 20 trades and then real test (live account) 20 trades.

I don’t want traders to feel discouraged with the process.

I understand fully, it’s not in everyone’s personality to take the time and effort like I have done over the last two decades to find, optimise and refine a trading strategy.

Which is why I offer my entire MATI Trader System Programme for those who want to speed up their trading performance from the get go. Click here to own the programme if you’re one of the few MATI Traders who haven’t downloaded it yet…

Once you have your yearly plan, you can move on…

#2: SET YOUR

WEEKLY PLAN

There are two objectives I have with a weekly plan. Analyse and report and identify major trends.

1. Analyse and report

This is where you’ll log in to your live account.

Open your portfolio account and view your trading performance over the last week.

See what is in the green and what is in the red.

Answer these questions:

• How many trades are winning and how many are losing?

• Have I held onto my trades LONGER than I should i.e 7 weeks?

  (Write down which trades are over extended to close in the next week.)

• Have I plotted all my trades in my trading journal and populated the portfolio chart so I can see how I’m progressing?

2. Identify major trends

Once a week you can also quickly skim through the main indices and charts, to give you an idea on where the financial markets are trending.

I like to look the:

Main indices: ALSI40, SP500, CAC, DAX, NIKKEI, UK100 etc…

Main commodities: Gold, platinum and Brent Crude.

Main cryptos: Bitcoin, Ethereum, Tron etc…

Local indices: Resources, Property, Industrials etc…

This will prepare you for the week and will give light on where markets are MORE likely to head.

They can also give you an indication on whether you may expect a reversal due to your trading strategy signalling potential change.

#3: SET YOUR

DAILY PLAN

Ok, if you don’t want to look at the markets everyday – that is fine. I understand you have other priorities.

But I would urge you to have a daily plan for every 3 days or so.

And during this time, is where you’ll achieve 2 goals:

Trading analyses and trading execution.

1. Trading analyses

This is vital to spot and identify high probability trades that are lining up according to your trading strategy. Write them down on a sticky note (which I still do) and then set your alerts for entry.

Or you can get a general idea on how much time will be needed, before a trade actually lines up.

2. Trading execution

The trade has lined up, looks good and ready to go.

Set your entry, stop loss, take profit and volume (no. CFDs or spread betting value) and get into your trade.

So in closing… You’ll need to take this more seriously. Don’t blame me if your portfolio isn’t picking up because you didn’t follow the right steps you need to take.

This isn’t child’s play and all the responsibility to create your trading future is in your fingertips.

So remember:

SET YOUR YEARLY PLAN:

No. trades, No. winners, No. losers, Win rate, % Gain per year

SET YOUR WEEKLY PLAN:

Analyse, report and identify major trends

SET YOUR DAILY PLAN:

Trading analyses & execution

Set these three plans and work towards them and you stand a better chance at making it in the trading world.