Winning Methods of the Market Wizard

I'm aware that it's been a while since I've updated my blog but during my holidays I came across a video which enlightened me about trading and would like to share this with you.

 Jack D. Schwager is the CEO of Wizard Trading, a commodity trading advisory firm that has been managing client funds since 1990. He is the author of The Complete Guide to the Futures Markets, Market Wizards,
The New Market Wizards, Fundamental Analysis, and Technical Analysis.

Jack Schwager explains the traits and behavior patterns that super traders have in common -- and tells you how you can develop those same winning characteristics. He explains the there is no right way or wrong trading
as a technical trader or through pure  fundamentals. Some of the key topics discussed is patients and that money management is not enough to be successful trader because all successful traders need a method or an edge such as price action. This is a video that you'll find as entertaining as it is informative.


Click here to see video

Market Psychology - Mind over Market

In a previous article I discussed trading psychology at very basic level, but the more I trade and study about the markets it seems that this is one of the corner stones to be a successful trader. I came across these videos where Mark Douglas discuss a few things which put trading in a different light. Its obvious when we trade we all have an edge or a collective pattern that allows us to trade without fear and uncertainty. If you are wondering what an edge is, its a higher probability of a decision taken actually happening over the other but within a series of trades. 

Mark Douglas also describes that trading is not about being right or wrong but we should rather learn to think in probabilities. Therefore when I see my signal or edge I should think that the odds are in my favour and that the market will buy or sell at my entry point. So what happens when I see my edge and it fails? All it means is that other traders didn't come into the market, because they didn't have the same conviction in what I was seeing therefore it failed. If a trade fails even though my edge is present and I've had success in using this edge in the past doesn't mean it will have the same outcome again.

No point in judging if the trade will work or not but rather place as  many probabilities on my end as possible for success. Remember its all probabilities so if you have the correct money management and trading plan in place you should trade your edge without hesitation

Mark Douglas -  Mind over Market - Part1

Mark Douglas -  Mind over Market - Part2

Mark Douglas -  Mind over Market - Part3

Mark Douglas -  Mind over Market - Part4

Mark Douglas -  Mind over Market - Part5

Forex Trading Psychology

Trading psychology is a huge aspect of successful trading and determines whether or not you will be able to make consistent profits as a trader. The two areas that need to be developed and enhanced is your patience and discipline. During my training this week we touched briefly on this topic but I can see that I will return to it in more depth at a later stage in the course.

Some of the key elements that where mentioned during my training, may sound obvious but from what I have heard and read its the most difficult part to master e.g. If the rules for your strategies are not met, then do not enter a trade! 

It seems that discipline will help prevent me from dangerous trading and protect the profits that I have already made. The tutor mentions that every trader goes through a mental roller coaster in trying to find the correct strategy for them to use, it is through discipline and determination where I

will be able to keep on trading and finding ways that suit my needs e.g. There may be a good chance that my strategy may not prevail and this is when discipline and patience are applied together, I must stick to my rules and be patient with the market, let the market come to me and not go chasing after it instead. Analysis is another way to keep your discipline, when experiencing a run of winning or losing trades it is imperative to find out

• What am I doing right and what can be improved?
• Why was my trade onside?
• Why was my trade offside?
• Why did I enter at X price?
• Why did I not exit at X price?

Don’t let emotions fuel your view on the markets, if emotions get in the way you will lose money. There is always tomorrow, Patience is a Virtue!

Keep you posted Happy pipping!!