Chart Spots
Starting from scratch, the financial markets can be a daunting place. Make no mistake, they are indeed. You are going up against professional traders, who are experts in their fields and have been trading or managing funds for years.
When you decide to make all trading decisions yourself, it is likely that you will need to invest a lot of time educating yourself. Fundamentals, Technicals, Market Auction Theory, there are plenty of fields to explore.
Take into account that this is very much is linked with the amount of time you plan to invest.
When you decide on buying a particular security, plan your entry point, your exit point and your stop loss. Ideally, you want to end up with a Risk / Reward ratio of 1:3. This ratio will still provide you with a profit, even if you are wrong on 50% of your trades!
Having a clear strategy, based on specific criteria will help you to make your trade plan.
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
― Warren Buffett
When money is on the line, your emotions can run red hot. If you trade based on your emotions, you will have a hard time making money. That is why having a clear strategy and a trade plan can help you with controlling your emotions, as you will make the important decisions upfront.
Remember, the markets don’t care about your P/L, that’s why you need to trade the markets and not your P/L.
This can mean a lot of things, to give some examples:
Have a look at our Youtube channel, to experience how we look at the markets, using Market Auction Theory and Volume Profiling.
Kevin is the founder of Chart Spots and has been active in the financial markets since 2016. With a background in IT and business consulting that dates back to 2006, he combines technical expertise with real-world trading experience. Kevin founded ChartSpots in 2017 to provide data-driven tools and insights that empower traders at all levels.
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CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
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