Don't just work on your method

Studies have been carried out proving that, even with a completely random entry, traders can make money by adhering to good risk control and cutting losing trades quickly. In his book Super Trader, Van Tharp talks about one such experiment with Market Wizard Tom Basso.

Yet, when you talk to inexperienced traders, nearly all of them continuously focus on some form of 'holy grail' to get them in right at the start of a price move - be it based on fundamentals, technicals or some thermo-nuclear indicator they have developed.

For 99% of traders, concentrating on the twin pillars of good risk and emotional control will help far more than continually fussing over how to get in a trade.

Discount offer on mentoring due to expire shortly

Just a short reminder that the current offer on mentoring expires at the end of the month.

Here are some testimonials from traders past and present who have been in our group, and who I've had the good fortune to help and assist.

If you would like any additional information please contact me at info@thetrendfollower.com.

A great day

Yesterday I was able to travel to London and meet a couple of the traders in our mentoring group.

It was an interesting meet up for me because both of these guys are in the IT industry, and have used their own skill set to enhance their own trading approach or routine. 

Discount offer - mentoring programme

LIMITED TIME PERIOD OFFER

Make the next twelve months a year to remember and start achieving the returns you desire.

Learn how to:   

• Cut losses short and let profits run,
• Use strong risk control, and
• Develop the correct trading mindset.  

Using the magic formula of expectancy, opportunity and efficiency.

Be part of our team of like-minded traders, and use the timeless principles of successful trend followers and Market Wizards.

Make sure you sign up and reserve your place TODAY!

What you get: 

• Initial 1-2-1 training
• Access to members only twitter feed
• Access to watchlist of potential setups and other resources
• Entry levels, stop placement levels etc., given on any trades taken in real-time*
• Regular group webinars
• Ongoing email/Skype support 

Working within a small team, you can accelerate your learning and development process, and work to avoid or eliminate the major mistakes that the majority of traders make.

See some of these testimonials from traders who have been part of our group and have benefited accordingly.

For a limited period, annual membership has been reduced to £900 - 25% OFF.

Offer expires 30 November 2015.

Go here to sign up.

* All entries and exits taken are recorded and result in the performance and metrics shown on the blog.

Do we even need charts?

In his book How I Made $2 Million in the Stock Market, Nicolas Darvas talked about how he created his own 'box' method of trading, based on simply recording the daily high, low and closing prices of stocks he was trading or interested in. This information was provided by telegram from his broker to wherever he was performing his dance act across the globe.

In How to Trade in Stocks, which he wrote shortly before his death in 1940, Jesse Livermore reproduced his own tabulated records which simply recorded price in the relevant columns denoting various price reaction points, whether the stock was in an upward or downward trend etc. From here he was able to identify the 'pivotal points' for each stock, which then helped him to commence his trading operations.

One year on - have the changes worked?

"The great thing about being a trader is that you can always do a much better job. No matter how successful you are, you know how many times you screw up. Most people, in most careers, are busy trying to cover up their mistakes. As a trader, you are forced to confront your mistakes because the numbers don't lie." - Marty Schwartz

It is about a year since I start making some changes to my own trading approach. This followed a poor run of losing trades over several months which eroded most of the gains I had made in the first part of 2014. So, did those changes work?

The mathematical side of trading

When most people talk about how they approach the market, they refer solely to their style of trading.

In my own case, I follow price trends - I wait for a potential new trend to be signalled, and I will then 'hop on' for the ride.

However, there is another important factor you should consider, which is all to do with the mathematical side of trading.

Dealing with profit erosion

Today was an interesting day. My one existing long position saw its profit evaporate after the release of a trading update, after which the stock fell just over 7%. However, this drop did not invalidate the trend, nor did it hit my stop. As a result I continue to hold the position. Of course, that may change tomorrow...