1. Trusting the system is the most important thing in trend following trading.
2. Trust will make you to take action regardless of how robust the market situation.
3. Trusting the system is not something that can be developed overnight
4. Based on my experience, I need 1 year to feel comfortable with my system.
5. During this one year period, I am trading demo account using same number of pairs, same trading size.
6. After one your then I know the behavior of my system after going through the tough time in the market.
7. Anyway, after having the system then trusting the system, there's one more important element that will make you survive & make money.
8. That important element is "Money Management" , I will explain how money management play vital role in trend following trading in my next post.
Tuesday, 24 April 2012
Sunday, 1 April 2012
Taking every single signal from system
1. You will be successful in trading if you trade base on signal from the system.
2. One more thing, is to take action from every single signal from the system without exemption.
3. Nobody have an idea which signal is actually a winner.
4. Your ability to execute the signal from the system is actually a reflection of your trust to the system.
5. If you don't trust the system then don't do live trading.
6. I will share in the future on how to build trust in your system.
2. One more thing, is to take action from every single signal from the system without exemption.
3. Nobody have an idea which signal is actually a winner.
4. Your ability to execute the signal from the system is actually a reflection of your trust to the system.
5. If you don't trust the system then don't do live trading.
6. I will share in the future on how to build trust in your system.
Tuesday, 20 March 2012
Coach/Mentor in trading journey....
1. Today I met Michael & Vivian, they are my trading coach & person who guide me to be trend trader (there's one more guy actually, Jeffrey Yong).
2. Michael is a pioneer & most experienced from them all.
3. From them, I unlearn & learn everything on trading.
4. From them, I start my journey as trend trader.
5. I learn on phychology of trading,principle of "TREND FOLLOWING", trading system, entry and exit, what to trade, money management and etc.
6. From them I meet many other trend following traders too.
7. They are coach who trade their own money, they walk the talk..
8. Having coach/ mentor in trading is very important in your trading journey.
9. And finding the right and genuine coach is tough, and many traders lost their whole capital before they find them.
10. In the future posting I will share the criteria of genuine coach & fake coach.
2. Michael is a pioneer & most experienced from them all.
3. From them, I unlearn & learn everything on trading.
4. From them, I start my journey as trend trader.
5. I learn on phychology of trading,principle of "TREND FOLLOWING", trading system, entry and exit, what to trade, money management and etc.
6. From them I meet many other trend following traders too.
7. They are coach who trade their own money, they walk the talk..
8. Having coach/ mentor in trading is very important in your trading journey.
9. And finding the right and genuine coach is tough, and many traders lost their whole capital before they find them.
10. In the future posting I will share the criteria of genuine coach & fake coach.
Saturday, 17 March 2012
Thursday, 15 March 2012
I trade in portfolio of currency pairs...
1. Trading is one of the most emotional game, it's torturing & painful to those who trade wrongly.
2. What is one of the important element in trading?
3. One of them is, "TRADE IN PORTFOLIO" or trade more than one stock/currency pair in your portfolio.
4. I use to to trade only 1 commodities at one time, and the emotional stress is so great due to waiting, focusing, hoping for this single instrument.
5. As a result I exit prematurely & definitely with no monetary gain.
6. Not only that, the risk is also great when you trade on single instrument. Your risk is not well spread.
7. Now with "Trend Following", I trade 20 pairs of currency. I have peace of mind in trading, I am rewarded financially too.
2. What is one of the important element in trading?
3. One of them is, "TRADE IN PORTFOLIO" or trade more than one stock/currency pair in your portfolio.
4. I use to to trade only 1 commodities at one time, and the emotional stress is so great due to waiting, focusing, hoping for this single instrument.
5. As a result I exit prematurely & definitely with no monetary gain.
6. Not only that, the risk is also great when you trade on single instrument. Your risk is not well spread.
7. Now with "Trend Following", I trade 20 pairs of currency. I have peace of mind in trading, I am rewarded financially too.
Monday, 12 March 2012
Trend trading is a game of waiting...
1. Trend trading is a game of waiting, and only those who wait will emerge as a winner.
2. Waiting for what?
3. Definitely waiting for the odds to be in our favor
4. When are odds in our favor?
5. Odds are in our when equities curve is in the drawdown between 40 to 60 %.
6.So what should we do when odds are not in our favor?
7.The answer is WAIT!!!
2. Waiting for what?
3. Definitely waiting for the odds to be in our favor
4. When are odds in our favor?
5. Odds are in our when equities curve is in the drawdown between 40 to 60 %.
6.So what should we do when odds are not in our favor?
7.The answer is WAIT!!!
Thursday, 8 March 2012
Expectation on trading....
1.Everything we do, will always come with expectation & same goes with trading.
2.I used to have ridiculous expectation on trading especially when first introduced on "Day Trading"
3.Until I am adapting "Trend Following", I realized that Preservation of Capital is more important than return.
4.There should be no expectation at all in trading since it will create stress & emotional torture.
5.Always remember Market Adversity that it will always want to hurt any trader financially & emotionally.
6.Always remember that if market give you 20% then it is much much better compared to any return offered by fixed deposit, mutual fund, etc
7.However historically "Trend Following" trader usually get the return between 50 - 150 % return per year.
8. Some says 50% return per year is tiny, however we must look from different perspective.
Eg.$10,000 capital with 50 % return will give you $1,297,463 in 12 years time.
9.If some says 12 years is such a long time, then think again.. Whether you like it or not, time will pass by & you will reach that 12 years.
10."Trend Following" is a philosophy that not everybody can follow, however those who can will accumulate wealth over certain period of time.
2.I used to have ridiculous expectation on trading especially when first introduced on "Day Trading"
3.Until I am adapting "Trend Following", I realized that Preservation of Capital is more important than return.
4.There should be no expectation at all in trading since it will create stress & emotional torture.
5.Always remember Market Adversity that it will always want to hurt any trader financially & emotionally.
6.Always remember that if market give you 20% then it is much much better compared to any return offered by fixed deposit, mutual fund, etc
7.However historically "Trend Following" trader usually get the return between 50 - 150 % return per year.
8. Some says 50% return per year is tiny, however we must look from different perspective.
Eg.$10,000 capital with 50 % return will give you $1,297,463 in 12 years time.
9.If some says 12 years is such a long time, then think again.. Whether you like it or not, time will pass by & you will reach that 12 years.
10."Trend Following" is a philosophy that not everybody can follow, however those who can will accumulate wealth over certain period of time.
Saturday, 3 March 2012
My tips on being unemotional in trading
a.Be a systematic trader and take position based on signal.
b.Take position and stay away from market.
c.Don't day trade.
d.Trade in portfolio and not single instruments.
e.Trade with additional money & not scared money
f.Do not have any expectation on the market, it gives what it want to gives.
g.Always remember that market will always want to hurt us emotionally, financially & full of surprises.
h.Trade with the right size that we will not worry us on margin call.
i.Have confidence with the system that we use, and this confidence only come after we trade/test the system for certain period of time either
j.Mix with the right group of people & stay away from day traders & losers.
k.Apply "Trend Following" in your system instead of day trading, Elliot's Wave, Fibonacci, candlestick etc.
l.Plan the trade & trade the plan
Money is an emotional subject and same goes to trading
1.Money is an emotional subject since it will make us sometimes irrational when we make decision on it.
2.Trading is an emotional subject since it involves money.
3.Greed of making more money and fear of losing money is influencing a lot of people in trading. They take unnecessary action like over trade or ignoring the signal from trading system. They end up losing money & losing the opportunity that they should had in the first place
4.I used to be so emotional in trading, during my early days in trading (including when I trade stocks, Futures, and Commodities). I made a lot of mistake and lost huge amount of money.
5.On that time, I trade using ridiculous time frame like 1 hour, 30 minutes and even 15 minutes. End up, I was following the market closely and creating unnecessary stress to me.
6.I was following news from CNN, Bloomberg and many other sources. Creates more confusion and sometimes news were contradicting each other and again made me indecisive.
7.Then I thought I found the holy grail when I saw the list of indicators like RSI, Bollinger Band, MACD etc. Yet I was exploring hundreds of them and have no faith in them and I cannot hold my position since I did not trust the indicators in the first place.
8.I am lucky because my persistency of looking for the right way to trade paid off when I trade using " Trend Following System".
9.To be honest, my confidence and trust in "Trend Following System" does not come overnight. I demo trade for one year, mix with the right people, start small with live account and increase the capital gradually.
2.Trading is an emotional subject since it involves money.
3.Greed of making more money and fear of losing money is influencing a lot of people in trading. They take unnecessary action like over trade or ignoring the signal from trading system. They end up losing money & losing the opportunity that they should had in the first place
4.I used to be so emotional in trading, during my early days in trading (including when I trade stocks, Futures, and Commodities). I made a lot of mistake and lost huge amount of money.
5.On that time, I trade using ridiculous time frame like 1 hour, 30 minutes and even 15 minutes. End up, I was following the market closely and creating unnecessary stress to me.
6.I was following news from CNN, Bloomberg and many other sources. Creates more confusion and sometimes news were contradicting each other and again made me indecisive.
7.Then I thought I found the holy grail when I saw the list of indicators like RSI, Bollinger Band, MACD etc. Yet I was exploring hundreds of them and have no faith in them and I cannot hold my position since I did not trust the indicators in the first place.
8.I am lucky because my persistency of looking for the right way to trade paid off when I trade using " Trend Following System".
9.To be honest, my confidence and trust in "Trend Following System" does not come overnight. I demo trade for one year, mix with the right people, start small with live account and increase the capital gradually.
Saturday, 25 February 2012
My trading journey
1.Trading is one of the best ever thing that I discover in my life. There were stages of event in my life which lead to what I discover now.
2.At 17,I was already obsessed with the power of compound interest. I read a lot on mutual fund,unit trust, and stock market.
3.After my SPM examination, I managed to convince my dad to open a trading account with local stock broker. My dad convinced my mom to give me $5,000 as a capital for trading stock.
4.Along the way, I read a lot of books written by Larry Williams and Jack Schwager. Larry's book is more on his techniques in trading futures and commodities.While Jack is concentrating on bibliography of famous traders and speculators. I even read items written by Victor Niederhoffer.
5.Later I opened futures trading account and started trading Index Futures and CPO. My feeling on that time, I felt like getting closer to be a millionaire.
6.Although I was still at University, my obsession was so deep and I spent most of my time at library reading books on trading. Not only that I start to record daily price of CPO and Index futures and develop my own technical chart.
7.I was managing my own account and also my uncle's account. However the accounts got burned when I asked a broker to trade for me. It was a bitter experience and great learning curve
8.After the losses, I no longer trade but just doing a lot of demo trading. This time I was opening a demo account for currency trading.
9.The concept of 24 hours non stop market is a new attraction for me. Again, My account got burned and the journey to wealth looks bleak and just a fantasy.
10. As time goes by, I was busy with my work in Telecommunication company and move to a new place in East Coast of my country.
11.However one day, when I start to implement "Trend Following" in my trading then it had change my life forever. My 1st year result return was 50% (despite some initial indiscipline on exit and profit taking).
12.I will share further my experience in the next posting..
2.At 17,I was already obsessed with the power of compound interest. I read a lot on mutual fund,unit trust, and stock market.
3.After my SPM examination, I managed to convince my dad to open a trading account with local stock broker. My dad convinced my mom to give me $5,000 as a capital for trading stock.
4.Along the way, I read a lot of books written by Larry Williams and Jack Schwager. Larry's book is more on his techniques in trading futures and commodities.While Jack is concentrating on bibliography of famous traders and speculators. I even read items written by Victor Niederhoffer.
5.Later I opened futures trading account and started trading Index Futures and CPO. My feeling on that time, I felt like getting closer to be a millionaire.
6.Although I was still at University, my obsession was so deep and I spent most of my time at library reading books on trading. Not only that I start to record daily price of CPO and Index futures and develop my own technical chart.
7.I was managing my own account and also my uncle's account. However the accounts got burned when I asked a broker to trade for me. It was a bitter experience and great learning curve
8.After the losses, I no longer trade but just doing a lot of demo trading. This time I was opening a demo account for currency trading.
9.The concept of 24 hours non stop market is a new attraction for me. Again, My account got burned and the journey to wealth looks bleak and just a fantasy.
10. As time goes by, I was busy with my work in Telecommunication company and move to a new place in East Coast of my country.
11.However one day, when I start to implement "Trend Following" in my trading then it had change my life forever. My 1st year result return was 50% (despite some initial indiscipline on exit and profit taking).
12.I will share further my experience in the next posting..
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