TRADING VS INVESTING & USING MONEY MANAGEMENT WITH A OF DELTA 5
Are you a trader or an investor? This is an important question because it will have a major impact on your performance, and future targets and plans. LET ME KNOW WHAT YOU ARE...so I can plan your trading tutorials.
So, as an investor I will take long term decisions based on the higher time frames only. Monthly, weekly and daily. I am not interested in any other charts.
I would use the 50,100 and 200 moving averages on all charts, once the price moves above all MA’s, this is a long term buy. No stop, simply hold as long as the price remains above all the moving averages., close once price moves below the 50 ema.
A simple concept, but is this you? You NEED to know from the outset. If this is you, I can forward the charts that are long term buys (I prefer to buy markets). Let me know.
Long term investors, tend to have larger accounts, so stocks, forex, gold, oil will form part of the overall strategy. They will hold many positions. So within a share portfolio I will hold more than 20 companies, some will be more successful that others, but that’s fine.
Long terms investing has no stress, you simply use a portion of your account for that one stock, say 2% is reasonable.
THE TRADING ATTITUDE IS COMPLETELY DIFFERENT
Traders tend to have less invested, in terms of cash and commitment, they often don’t take it seriously enough. To be a Doctor take 7 years, then they make the money and commit for life.
How long have you been learning, 7 years? I doubt it, yet often people expect too much too soon. You MUST continue to invest in your knowledge and time.
Success is subjective and can be achieved, but how much are you will to learn? And how much time are you willing to commit. What are your targets? How much are you willing to risk?
I “work” 1 hour a day, is that what you want? I check my portfolio, are they still above ALL MA’s, are there any swing set ups? Mini or Major. If not, that’s it!
2-1 RISK REWARD WITH A DELTA OF 5
When it comes to trading (not investing) your risk to reward on a trade is crucial. It must be at least 2-1 or better. Otherwise don’t trade it. This enables you to have a system that is 50% correct, and still make profits.
Before you make any trades, you must know in advance your lot size (depending on stops). So, typically we would use 100 or a 50 pip stops, so it’s very quick to calculate the lot size, when the trade set up is correct. (TIP: be a mini swing trader, if you want to grow your account quickly). LET ME KNOW, I CAN SET YOU UP WITH THE CORRECT CHARTS).
Mini swings will have a 50 pip stop, so target will be 100 or more, Major swings will usually have a larger stop.
By the way, just because I forward a chart, does not mean I will be trading it, nor should you. It’s simply to learn what a swing looks like. ONLY trade one trade at a time, NO MORE, unless you have a zero risk position.!! Too many positions, makes your account vulnerable.
15 years ago, I wrote a book “The Ultimate Forex Training Course”. Little has changed since then. I shall be forwarding this to Members. Even though it’s copyright, it’s been copied many times since. (Let me know if you want a copy).
One of the main and most important subjects is money management. What are your targets? How do you manage your trading account? What risks do you use? Why do you risk too much?
In the book we discuss, in detail, using money management, with a Delta of 5. The combination of 2-1 risk to reward and Delta 5, keeps your account save at all times, and when drawdown comes, and it will. Your account is safe.
To find out more about Delta and get my book email me, and let me know what type of trader you are:
ADVANCED CHARTS AND TRAINING
There seems to be a false impression about the Advanced Pro Membership...the advanced chart set up don’t use indicators, we simply use price action.
We don’t trade more often, the Advanced charts are designed to get into positions earlier, not more often. So it will recognise a swing much sooner, by using support, trend lines, Pivots we simply enter before the crowd!
Advanced charts and rules are simple, but take some getting used to. If you have used lagging indicators for so long, profits come quicker, and the risk to reward ratio is far better.
£500 for the course seems a great investment, I would expect you to recover this within a few weeks, depending on account size and the markets of course.
Monthly Membership is just £9.95.
Start today if you have not joined already:
Chris
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