Trusting Your System and Objectivity

It is very important to trust and continue to take objective actions as you process
the trading signals generated by your system. 

We have to learn to accept and take action based on the information given to us by the market
through the medium of our trading system. We have to accept and understand what the chart tells us
 rather than focus more on our  "feeling" about it.


Don't trade with your feelings or what you think about the markets. Our thoughts often take us
into the future trying to predict or they take us to the left of the chart pondering over the past.
Our thoughts make us look into the history tab of our platform or the running profit and loss for the day.


On average we experience and process 60,000 thoughts a day. And these thoughts make themselves
 known to us and get manifested inside our body as emotions and feelings. Yes, thoughts manifested
 are emotions, we feel emotions, we feel the manifestations of our thoughts. When you feel anxiety,
 stress or boredom it is because of the thoughts you have processed earlier.
The thought process happens ahead of those emotions.


So when you become aware of your emotions that you don't want or like you know that you have been thinking the wrong things. If you remain conscious at all or most of the time you will be in control of how you feel.


So our feelings are our feelings. They are inside of us. But the information that we see on the chart
are coming from outside, from the external environment. They become part of our inner self, the
internal environment but don't come from within.


What we need to is to respond in the manner that is the most objective and accurate. In order to
achieve that we have to find out and decide and document our course of action well in advance. The
actions that we take must have been already planned ahead of time.


Stop judging your template, your trading system or signals. Simply accept the information and take actions accordingly. If you're not sure then say no thank you with gratitude. But keep an eye open.


When the game is over you'll have the chance to go over the days performance and find out how well you did. IF you have passed valid set-ups you can then compare and analyse why did you perceive what you did and why did you take the course of action that you took. Was your perception correct or was it not.

If it was not, was it due the cloud of fear and greed or other emotions or was it based on market generated information?


If it was based on "objective" mental and technical analysis then you have done well but if it was a result of any of the negative emotions then you've made mistakes. It is time to enforce your disciplinary procedures which should have been laid out in your written trading plan.

May the Pips be with you! 

9 Reason why everyone should have a Trading Plan

What is a Trading Plan? 

"A trading plan is a complete set of rules that covers every aspect of your trading life. Many experts refer to the need to have an ‘edge’ which will tip the balance of probabilities of success in your favour." Say Tim Wilcox who wrote and shared a simple but powerful trading plan template int he trade2win forum about 10 years ago.

Everyone Needs a Trading Plan. If you don't have one, anything you do is a mistake. 

A trading plan will make the act of trading simpler than it would be if you traded without one. It will limit your opportunity to make bad trades and it will prevent many psychological issues from taking root.

9 Reasons Why YOU should have a Trading Plan 

[How to be a consistently successful trader? Have a Plan]

1. Relaxed, stress free trading that is simpler with a plan than it is without one 
2. Ability to monitor your progress, diagnose faults and amend the plan accordingly 
3. A plan helps to prevent many psychological issues from taking root 
4. A plan that is adhered to strictly will reduce the number of bad trades 
5. A plan will help prevent irrational decisions in the heat of the moment 
6. A plan enables you to control the only thing you can control - yourself  
7. Professional traders are highly disciplined. A plan will instil a large measure of discipline into your trading. Gamblers tend to lack both discipline and a plan 
8. A plan will enable you to trade outside your comfort zone. How many times have you let a loss run and cut a profit short because it was the comfortable thing to do? A plan, executed with discipline, will help to prevent this from happening 
9. A plan is your roadmap which will enable you to get from wherever you are now to wherever you want to be – i.e. consistent profitability 

All credit goes to Tim Wilcox for sharing this knowledge and to Steve of www.for-exe.com for sharing the link/document with us. Tim has shared a Trading Plan Template that should help all traders at any stage of their trading to formulate a great trading plan.

The template (and, by implication, your plan) – is designed in such a way that if you do take a ‘wrong turn’ on your roadmap, you will know about it very quickly and have the opportunity to correct the problem before losses spiral out of control.

Thanks Tim!!!

Link to Trading Plan Template 

Apple & Cherry Seeds - Our Latest Trading Style

Apple & Cherry Seeds - Our Latest Trading Style 

We have developed a trading style that we practice on a daily basis #AIMSSkypeLiveTrading. We do that in a group format which keeps us all on track. We are on track because we are open about our entries exits and analysis of the market. We share it with each other so we often get reminded if we are going off the trading plan.

Trading Gives You Unlimited FREEDOM

The biggest advantage and attraction of Trading for a Living is not only the fact that trading provides an excellent and unlimited opportunity to make money. Money, that will buy you many comforts and provide security. Money that will buy you your #freedom. AISM Stress Free Trading gives us freedom. Yet the very advantage, freedom, is the biggest problem for the common trader.

We think freedom means, no rules to follow ever and we can change whenever we want. But that is not true. You are free to star,t stop and end any trading activity as you like. True. But in order to make money from trading you will have to trade according to a certain plan. The universe has a structure. We have to learn to respect rules and once that concept sits well in our mind we enjoy following our rules.

Thanks to Grant and Steve, and other valuable participants we have developed a set of rules that gives us a certain statistical edge. Now, in order for a trader to take advantage from that statistical edge, the trader needs to learn to follow the plan, applying the rules to achieve the ultimate goal of a trader. The ultimate goal of a trader is to achieve consistency. This can be achieved by following a leader or simply working towards the set goal, solo. But the terrain is dangerous and the trade is prone to many pitfalls. Solo missions may be fun for some but not everybody's cup of tea. But one must leave their comfort zone, push the boundaries and expand the scope of their pain threshold.

Frodo Baggins will have to leave shire and will eventually get there but not without the help of Samwise Gamgee. However there is a better way to get to the top of the mountain. There are ways to travel higher faster and farther.

They did not land on the moon alone. The man who left the first impression of a human footprint on the clean canvas of the surface of the moon may indeed be Neil Armstrong but the reality is that he could not have done it alone. The fact is that it was Humanity's first step outside their home. It was a team of thousands backed by a team of millions around the globe that helped achieve the goal. Humans are social animals and they work best in teams. 

Would you like to succeed in your trading? 
Would you like to join a team of traders heading in the same direction?  

If Yes, you need to find a group that is heading towards the same direction and share a common goal. And Congratulations because  you've found it!!! 

Would you like to join the caravan that can help you survive the heat of the desert the cold of the mountains, the dangers of the forests, the depth of rivers and the vastness of the mighty oceans?

Join AIMS Skype Live Trading Group TODAY!

#TradingGivesYouFreedom
#AIMSStressFreeTrading
#iTradeAIMS.com 

5 main obstacles keeping you away from success

1.    Fear 

Overcoming the fear of losing money.  The fear of losing money is real. Everyone has it. The difference becomes how a rich and poor person handles the fear. Wealthy individuals use failure as a teaching moment and aren’t afraid to fail.

2.    Cynicism 

This deals mostly with those around you. Follow your own path, because at the end of the day, wealthy individuals are a small percentage who go against the grain and don’t follow the crowd

3.    Laziness 

One must be willing to put in the time and effort to build up their financial knowledge. This means being selfish and taking time out to build one’s personal wealth.

4.    Bad Habits 

Reducing expenses is easier said than done, but one must be willing to break those bad spending/investing habits in order to be successful

5.    Arrogance

Always be willing to reach out to those who are successful and those you want to emulate. To become wealthy, it’s often a collaborative effort, bouncing ideas from prospective mentors.

.............Robert T Kiyosaki, Rich Dad Poor Dad (Highly Recommended Book) 

3 Questions 3 Answers

We receive many emails from around the world. Most questions are the same or of similar interest while some people do come with some strange questions. However, this is not why I'm sharing the following post with you. Someone asked me three questions and I replied. I thought I'll share with you here. 

Hi,
Thank You for contacting AIMS Stress Free Trading.
Lagging Indicators. You asked if we use lagging indicators. People talk about lagging and leading indicators but the question is this. How do you define a lagging indicator? Aren't all indicators lagging? A moving average will ALWAYS be a lagging indicator. Yet professional traders use it. Marketing analysts use it. Statistical analyst use it. What else is a lagging indicator?

Ok, so what is a leading indicator, bar patterns that gives you directional indication? Mark my words NOTHING can tell you what will happen in the immediate or distant future. Yes, you can have a fair idea about it, you can have a "higher probability" of something happening over another yet you can NEVER know what's going to happen in the next second. Because EVERY moment in the universe is unique and as such ANYTHING can happen. This is what we believe in. If you could understand the above you are a thousand miles ahead of other traders already. (though its not a race with other traders its a dance with yourself and the market) 

Intuition: You asked if it helps to get an intuitive feel for the market?
Intuition is simply a function of the core brain the more powerful subconscious brain takes over activities that have been repeatedly performed with success and discipline over a long period of time. Intuition can only be developed by practice and practice is done consciously. So you have to gain experience in one field for a prolonged period of time then your intuitive feel will improve.

There are 3 stages in a trader's life (if not 5).Everyone must begin at the first stage and that is ~The Mechanical Stage. If you are disciplined enough to stick around and apply the rules and remain consistent you will excel and perhaps one day enter the higher more intuitive stages of trading but that will have to wait until you've decided how when and where to start your Mechanical trading.

Win Rate and Risk RewardThe Win Rate of the system is 60% winners and 2 : 1 Reward to Risk ratio. This can be further improved but if you could simply hit the above figures, by following the rules, you'll be way ahead of the rest of the market/traders.

Most Kind Regards


Immy 

Simplify Simplify Simplify

I'd like to say a few thing for you to ponder upon this weekend. Just at the back of you mind while you're having fun with lots of things in your life.

Markets are simple. Their movements are simple. But our minds are not simple. However it is our duty, our job to make it simple.

Simplify Simplify Simplify.......... Thoreau 

Elliott Wave is Simple

The wave function is simple. Market does not move in a straight line. It goes up and down a bit and up again. There are up waves and down wave and side ways.  When the market makes a series of new highs and higher lows its believe to be going up. When the market makes a series of new lows and lower highs its believed to be going down. It makes sense to be able to know that with a single glance. And that is possible. But we have indicators that makes it even easier to find out if its up down or sideways trend.

We don't do complicated analysis of Elliott wave when applying our strategies. We have a simple indicator that does the count for us. We don't need to know where is a b c e d or f waves neither do we bother with where is wave 1 or 2. We know where is 3 and we know how to get into 5 and we know where wave 4 and wave 5 ends. And we don't do complex calculations for that. That's the beautyof it. Its all done by one simple indicator. Thanks to Snorm of www.For-exe.com

If The Market is a Wave what is the most logical place to make entries? 

The most logical spots of entering markets would be pull-backs when its trending. And if you want to trade within a range bound market then it makes sense to go short when market touches the high of the range and go long when it touches the low of the range.

What Time Frame To Trade?

Now some of us get stuck with this simplicity and can't seem to decide what Zoom Level they need. No matter what time frame you've chosen to trade you have to stick to that. Once you understand this concept it really is very simple. The market creates the same waves on any time frame so there really is no point switching from time frame to time frame.

I work Full Time What Time Frame should I trade?
Daily or Weekly time frame. Total work per week 2.5Hrs.

I work Part Time What Time Frame should I trade?
Daily or Weekly time frame. Total work per week 2.5Hrs.
or
Choose anything between hourly, 30 minutes, 15 , 10 , 5 or even one minute chart.
However if you trade the five or one minute chart your choice of instrument is limited to only a few in the market. The lower the time frame you chose then you must trade the faster moving market with lowest spread. The higher the time frame you chose the more instruments you can have at your disposal.  Follow the following table as a guide.

Time Frame                        Total Instruments to trade
M1                                       1
M5                                        1 or 2
M15                                      1- 4 (2 is the best)
H1                                        1-8 (4 is the best)

H4                                        1- 12 (6 is the best) 

D1                                        8 - 20 ( Create a mix of Indices, Currencies and Commodities) 

Don't complicate entry mechanism. 

Just select an entry method or two and every time you see it just take the trade. Work on developing on having the "lets find out what happens next..." attitude if you don't already have one. Either stop predicting or if you do try to predict you must have flexible expectations. So take the setups and manage the trades according to a planned set of rules that gives you an edge. Always take trade setups that offer at least twice as much as your initial risk. 

Winning is a combination of trades that make or lose money. 

In trading winning is not simply putting a winning trade. Anyone can catch a winning trade. Its all about following your edge and trading according to your plan. Wins and losses are randomly distributed. You can know the probability of the outcome of a set of trades yet you can never know the outcome of the next trade for sure. Are you 100% certain what's going to be the outcome of the next toss of coins. Call it heads or tails?

What skill do you need to win the next Toss of Coin?

If you said. nothing. You're right. You don't need any skill. Its the same in trading. A trader does not need any special skills to find a winner. Because wins and losses are randomly distributed.

Simplify your trading. 

AIMS Stress Free Trading is the name given to a concept, an idea, a group of individuals, who are constantly working on simplifying the methods of trading. Our recent trading strategy that we call Apples Seeds and Cherries is another attempt to further simplify things. We don't make you do math or statistical analysis here. Well, we do stats but we don't need them for our day to day trading.

Edge in the Market. 

We don't need to perform those mathematical calculations or statistical analysis on a daily basis. Those have already been done. We know what entry mechanism together with trade management plan gives us an  edge in the market. An edge is nothing but a statistical advantage based on a set of tried and tested variables. So now we have a "set-in-stone" type entry, exit and trade management plan that gives us an edge in the market  and constitute our trading strategy.

Have a Great Weekend

Everything is fine in The Now

Everything is fine in The Now

#stressfree #nostress #relax #thenow