Enter The Matrix

Okay, I feel that I really need to get this blog out asap as I find it imminent to address this issue before I see anymore account blow ups or bad losses.  I've seen too many and I personally have blown up quite a few accounts my self.  No one should be losing this much money if they apply this very basic principle I'm about to talk about.  How to set proper goals, and defining the moment when we are a consistent winning trader. If any of you have read my past blog entry, I have shown pretty clear that it is absolutely impossible to know what the market will do let alone control it.  The only thing that we, as traders have absolute 100% control over is how much money we lose, or willing to risk. That is the key differentiation between trading and gambling. With that said, I see some traders set daily goals for themselves. Many of them set monetary goals like, 'I'm want to make $100-$150/day. I want to make 'X' percentage of my account daily/weekly/monthly....

Everyone and their grandma is looking for that secret sauce, the holy grail to trading, to put it in simple terms, the ‘edge’. Today’s write up I want to talk about that. I have learned from a lot of gurus and successful traders for my past year and a half of trading, most of them are all able to do one thing, and they encourage you to do the same as well; being able to articulate what your edge is, simply use that on a day to day basis, and you will have success. I would like to define what an edge is though before we go any further, as there is a lot of misconceptions about what an edge truly is. Some think it’s a magical formula, some secret sauce, when in fact that is soooo far from the truth. Edge: A trading setup that has a higher probability of the stock price going in one direction over the opposite direction. I was a semi-pro poker player about 10 years ago. I studied day in and out on the subject, played 12+ hour days, learned to deal cards and dealt poker as well in un...

In this write up, I would like to show you how I personally take entries and exits in trades. Hopefully this will help shed some light for those who are still struggling to identify and time their entries and exits. Before we start though, I’d like to show you that there are 4 stages/states to any market though, illustrated in the image below. We will be focusing on stage 2-4. The up trend of the market, the topping and sideways action of the market, and the down trend of the market. It is during stage 2 and stage 4 that we need to decide whether we are already too late to hop on the train, or do we still have time to get in and turn a profit. Most of the time I find my self missing stage 2, the beginning trader will see it as hype and the market is hot and jump in. Only to find themselves getting in too late and stuck on stage 3. For my self, I usually find my self spotting stage 3, I sit stalking and waiting for the first sign of stage 4 coming. That’s the bulk of my trades. ...

I would like to address a very important subject that gets very easily overlooked by a lot of traders when they trade. They would do a lot of meticulous research, establish a plan of attack, execute the trade: Lose, and end up saying something like, ‘I don’t get it, the stock was supposed to go in my favour.’. Then they go on a rant listing all the fundamental reasons of why the stock should’ve gone their way; OR, they would win and say, ‘I KNEW it! Tadaaa!’. Whether they win or lose, there lies a bigger problem that could be detrimental in their path to trading success in the future. They enduldge themselves in thinking they know what the market suppose to do. Let’s revisit and understand what the market is. The market is comprised of everyone around the world making a decision on a sentiment of some specific stock of a company, in turn they each make their own decision in whether they want to buy, or sell a certain stock. And even if by some miracle of a chance that the whole wor...

Having a winning attitude.  I believe the psychology and mindset of a trader is key to differentiating you as a trader from being the big part of the 90% losers, to the minority of the 10% consistent winners. With that said, I have studied and chat with a lot of the professional retail traders in my year and a half of trading experience. One thing I do find that they all have is a positive winn ing mindset. So let’s define it; The proper attitude a trader must have: A positive expectation of your efforts, with an acceptance that whatever the results you get, are a perfect reflection of your level of development, and what you need to learn to do better. I want you guys to write this down, put it in a spot where you can glance at it daily, memorize this. Try to pick apart what this truly means. I understand that I literally just wrote a summary. I will dive deeper into what this truly means in the next post. Really break this down for you guys. Have a good night.

Disclaimer: What I'm about to write is entirely just my personal opinion and I'm not a professional financial adviser. I don't assume the responsibility of your losses if you do decide to follow my advice. So, lately I have been getting some questions from a member in the discord room chat asking about how to determine their stop loss and how to calculate a 3:1 ratio. 'I have problems doing the math in my head when it comes to the 3:1 and where I should set my stop loss. I plan to set it at 1% from where I took my position or cash out at 3%. How do you guys do the math so quickly and do I need a calculator right by my desk?' Personally I always get a lil chuckle when I read something like this. I realize that a lot of the members on this page have came from some other trading page on FB and their head mod and founder(not to be named) there have always used the word 'percentage' in his/her educational material. I'll tell you this bluntly straight up....