Home Trading Strategies 5 Simple Tweaks That Can Boost Your Trading Results

5 Simple Tweaks That Can Boost Your Trading Results

5 Simple Tweaks That Can Boost Your Trading Results

hey hey what’s up my friends so in today’s episode i’ll be sharing with you right simple tweaks that you can make to your trading and get results fast okay so these are simple actionable techniques that you can use right and you should expect to see you know results with it with it results with it right in a short period of time so number one the first thing that you can do is to trade from an area of value now what do i mean by this well let’s say the market is in an uptrend right where is an area of value in an uptrend well it could be at support it could be at a respected moving average right these are all possible areas of value in an uptrend likewise in the downtrend okay just because the market is in a downtrend doesn’t mean you look to sell immediately let the price come to an area of value resistance swing high moving average trend channels this area of value that you want to trade from okay and i know this sounds simple but why don’t traders do it i’ll tell you why because they don’t have patience they just want to trade right now they want to action right now they don’t want to wait they don’t want to sit on their hands then that’s why you know they lose consistently right so number one trade from an area of failure number two trade with the trend yeah trade with the train why do you want to fight against the trend the trend is your friend you’ve heard this probably a gazillion times and again why do traders want to trade against the trend i’ll tell you why it’s because they think that the market can’t go any higher oh look reyna how bullish this market is it’s too high it can’t go any higher and then poof next day goes up another 100 pips 200 pips the next day and so on and so forth well again really if the market has been moving up steadily higher over the la for the last three months then the common sense thing to do is to expect it to continue moving higher but most traders they want to fight it they think that oh it’s too high it can’t go any higher and they fight against the trend they lose money so really keep things simple okay let me share with you a very simple guideline if you can’t define the trend then just pull out the 200 period moving average whichever time frame you’re on the daily the five minutes to one hour if the price is above the 200 period moving average then you only look for buying opportunities you won’t even consider selling okay and likewise if the price is below the 200 period moving average then you only look for selling opportunities don’t consider buying now of course this is not foolproof but it should keep you on the right side of the trend more often than not so this is just a very simple guideline for those of you who are struggling right to define the trend and uh number three have a proper stop-loss right you can’t just put on a trade and put in a random 35 pip stop loss because that’s a nice number because that’s how much how much money that’s left in your account yada yada it doesn’t make sense the market doesn’t care uh how much money is left in your account all right it goes where it wants to go and you got to respect the market so 35 pips might be reasonable for someone trading off maybe the 15 minutes time frame but if you trade off the daily time frame that’s too little you’ll likely get stopped up just on the you know the noise of the markets so how do you set a proper stop-loss okay so there are few ways to eat but i’ll share with you the simplest one whichever time frame that you’re looking at okay all right look at the nearest price structure so let me give you an example let’s say you are you bought in an uptrend okay ask yourself where is the nearest price structure like a swing low like support where is the nearest one then set your stop loss below it why because this price structure will act as a barrier to help you hold up the higher prices so if the price makes a pullback at least this area of support could provide some obstacle right for the price to have difficulty breaking below it so you’re actually setting your stop loss right you’re using the natural price structure of the market right to make it difficult for you to reach your stop-loss so if it’s in an uptrend set your stop-loss let’s say you know uh a distance below the swing low a distance below support if it’s in a downtrend set your stop-loss a distance above resistance a distance above the uh the swing high right make the market work hard right to reach your stop loss don’t set it in the random you know 5 10 20 pips based on how you feel or how much money is left in your account doesn’t make sense okay uh number four have a target that makes sense so stop losses is fix what about targets let’s say you’re a swing trader do you just randomly set a 50 pip target because it’s a nice number or 75 pips because you like the number seven and five no of course not again as a swing trader or as for most discretionary traders your target is usually at a level on the chart right where the market might turn against you let’s say you bought at support where where do you think the market will turn against you well when it if it reaches support and it start the hit starts to hit higher and it approaches resistance that’s a area on the chart where the price could turn against you so as a swing trader what you want to do is to exit your trade before resistance to exit your trade before the market reverse against you the last thing you want to do is to set your targets above resistance or to have a random 2 300 pips a target which doesn’t make sense again right have a target that actually makes sense that’s number four and finally number five have a trading journal i know this sounds ah not this again but this is so important because when you have a trading journal you can record down your trades you know which trading setups are the ones that are making you money is it your breakout trades is it your false break setup is it your counter trend trades and then you also know which are the ones that are costing you to lose money then what you need to do is to simply focus on the setups that are making you money and stop trading those setups that are costing you money simple and that’s why your trading journal is so powerful but most traders why don’t they do it ah it’s hard work right now it’s dry it’s boring blah blah blah and that’s why again most traders never succeed okay so quick recap number one trade from an area of value number two trade with the threat number three have a stop loss that makes sense number four have a target that makes sense and number five have a trading journal so with that’s it i wish you good luck and good trading i’ll talk to you soon you


Please enter your comment!
Please enter your name here