Decoding Markets and Marwood Research
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101 Lessons For Aspiring Traders PDF
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- ...on trading
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02 To succeed in trading you need 3 things; good money management, the right psychology and a profitable edge. Money management and psychology can be learned. Finding an edge (and keeping it) is the hardest part. 03 04 Learn all you can about trading but keep things simple. Track and analyse frequently to see what’s working and what isn’t. Continuously refine your strategy. Never add to a losing position. This one rule will stop you from taking big hits to your capital and destroying your confidence. It’s fine to ‘build a position’ buying at lower prices as long as that was the plan from the start. 05 06 07 08 09 10 Never fight the trend. Trends can go on for much longer than anyone expects so don’t underestimate the power of momentum. As Keynes said ‘markets can remain irrational longer than you can remain solvent’. Don’t get stuck to one view, markets are so complex, there is always some truth to both sides. Markets move based on liquidity, supply and demand, human interactions and random noise. You cannot predict or explain every major move. As Jesse Livermore said ‘price always follows the line of least resistance’. Don’t overthink price moves or bring too much personal opinion to the table. If a trade is not working out, give it some time. The worst place to exit is at your stop loss but never move your stop further away once you’ve placed it and never break your risk control. You don’t need to trade. If the market is quiet or behaving strangely, just wait it out. A new opportunity always comes along. You only need a few big trades to have a great year. The way I see it, I only need to hit four 20% trades in a year to double my investment. Always watch more than one time-frame. If you see a good trade on an hourly chart, see how it looks on the daily chart and weekly chart too. Zoom out to see the bigger picture. If you want to scalp the market you will need the order book. The order book can help you ‘see’ the market and assess your risk. If there are orders behind you, it will be easier to get out. Never trade off a 1-minute, 3-minute, or 5-minute chart without watching the order book. Too much noise. ...on trading 101 LESSONS FOR ASPIRING TRADERS Good risk:reward trades can often be found when an event is ‘priced in’, by going the other way. For example, if everyone expects there to be an interest rate cut, there may be little downside in betting against it. Download 1.87 Mb. Do'stlaringiz bilan baham: |
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