TRADERS DAILY

SURVIVAL

Protecting your capital is the most important part of trading.This should be your goal to start with,your number one aim.If you're planning to get rich quick trading the market,forget it,thats not going to happen.To succeed in one of the world most toughest businesses means working harder and longer than you ever imagined which is why 95% of traders fail.You only progress by paying the 'tuition fee' that all successful traders have paid-that means blowing out your account,possibly several times.Only by experiencing the pain of losing real money will you learn what works and what doesnt work.Nothing i say here will convince you of that,but it's only by experiencing the losses can you begin to progress.During this process of paying the 'tuition fee',focus on the most important aspects of trading-far more important than any strategy:

A-identify high probably trades and avoid the 'noise'-staying out is a position.Let the market show its hand before risking your money.

B-take the loss when your stop gets hit-this should be a price in the market that shows you are going the wrong way and not a fixed amount for every trade,or you'll get stopped out of trades that ultimately win.This is one of the hardest things to do since the market is designed to take out stops as often and of as many traders as possible,which leads to.....

FOCUS

Stick to one market and understand how it moves by observing,researching and backtesting.(save the intraday charts on your computor as there are no historical intraday charts that go back very far on any financial site)Focus on how the market moves ,what moves it and why.Try to figure out where the stops are and which traders stand to lose the most-the market is designed to cause the maximum pain to as many traders as possible in the shortest time possible.

FREE PREDICTED PRICE PATH FOR THE US MARKET

FREE LIVE TRADING SIGNALS

FREE LIVE COMMENTARY

KEY TECHNICAL LEVELS FOR THE TRADING DAY AHEAD

TECHNICAL ANALYSIS

FIBONACCI PIVOTS SUPPORT/RESISTANCE

FIXED ODDS TRADING STRATEGIES

(click on the banner)

BAD NEWS=BUY,GOOD NEWS =SELL

The market is designed to get you going the wrong way.There is no doubt that the media either colludes with,or is manipulated by the smart money.To stay on the right side of the market you need to look for signs of strength at the lows,and weakness at the highs.

THE MARKET IS REPETITIVE

The same patterns appear on the chart time and time again,in any time frame whether it be an hour or a day or a year.Once you know this you can begin devising strategies to take advantage of the repeating setups.

SUPPORT AND RESISTANCE ALTERNATE

The most important technical levels are support and resistance.You could earn a living from the markets purely by betting at these points-will support hold/will resistance be broken? When the market is long(going up),resistance becomes support.When the market is short(going down), support becomes resistance.Not only does the market move between support and resistance, but it cannot move in any other way.Let me repeat that.THE MARKET MOVES BETWEEN SUPPORT AND RESISTANCE AND IT CANNOT MOVE IN ANY OTHER WAY 

ALL INDICATORS ARE USELESS 

Most traders use indicators-most traders lose.There is a massive industry geared towards selling you indicators. whether its a software package that will indicate buys or sells,or a vendor selling seminars or market calls based on them,all indicators have one thing in common,they lag.They can only ever tell you what has already happened so why use them when all you need do is look at your chart?  The problem is,most newcomers to the market believe that if they could just find the right indicator, or combination of indicators,they will turn the markets into a cash machine.Ask yourself this,do you really believe the'smart money'use indicators,or do they just buy cheap and sell high? Wipe those indicators off your charts now and the sooner you become a professional trader.

THE MARKET IS NOT RANDOM

There is a cycle.The cycle is: accumulation/mark up/trend(long)/consolidation/trend (long)/distribution/mark down/trend(short)-(see diagram on 'Basics for beginners')http://www.freewebs.com/knightrader/basicsforbeginners.htm   The cycle repeats.So, if there is a cycle and it repeats, the market cannot be random.As a trader you must decide what stage of the cycle the market is in at any given point in time and trade accordingly.You are trying to stay on the right side of the market.Having said that, there is a certain amount of 'noise'-random movement between key price areas,but that is because there is a constant battle between buyers and sellers going on. At any given time the buyers or sellers are in control,however if the smart money intends for the market to go down,it is the sellers who will ultimately win.'Noise' is a by product-the market cannot go down unless there are buyers,otherwise who will you sell to? In this case it is the buyers who are providing the liquidity/profit for the sellers .

AVERAGE DOWN

99% of traders will tell you not to do it! Most of the time its true-and as a beginner forget it,you'll just blow out quicker this is strictly for very experienced traders who know exactly when to do it. Remember,this is my holy grail,most will disagree with me,but setting your stops too tight is a good way to have more losing trades and occasionaly averaging down saves losing trades,making more money in the long run.It's like a lot of things in life,when you get to a certain level you can get away with breaking the rules sometimes-I can only tell you what my trading records tell me