4 Lessons from Trading Stocks this year

Let's see

here is a Stock I filtered ... 

I trade stocks and indices and forex all using my favourite trading strategy I like to call The Setup. This strategy has a proven, tried and tested edge. It gives me an over 60% win rate with a profit factor of 1.5 per 50 trades. For every 20 trades, I make 5-10% risking only 1% per trade. 

But sometimes, instead of taking a trade, I use "my clever" brain to talk me out of it. E.g. in the picture below you see the chart of the Stock #Marriot #MAR. I thought that this industry is not very profitbale so lets not invest in it. I was wrong. 

4 Lesson Learned: 

1. Don't Trade What You Think ... Trade What You See

2. Don't assume you know which sector is better and that it should or should not move. 

3. When you see a setup, simply look at your risk levels and take the trade. If you are not over-leveraged and your risk factors still allow you to take a trade, simply take the trade. 

4. If you are in the trade, don't over analyse it and check it over and over. Simply wait for your predefined exit signal or take profit level to be hit. 

5 Easy Ways to Conquering Trading Stress

To most traders, trading is their job - it’s not a hobby. It requires commitment and consistency. It’s not something you sign up for on the side while also having a full-time job. Most traders want to make it to the top where they’ll be making enough money to dedicate all of their time to trading. 

 Amidst all the trading jargon, it is often forgotten that stress is a natural reaction to all the things that traders juggle when it comes to profiting in the market. 

Stress labels include fear, paranoia, impatience, anger, and there is an opportunity for anyone who takes a proactive approach to these stressful triggers rather than reactively moving forward with them. 

In this article, we will help provide you with actionable steps and a better understanding of how stress can affect your ability to make good decisions when 

Trading is not easy and to be honest, it can definitely cause some financial stress. We want you to have fun in the markets – whether you’re a beginner or an advanced trader. 

In my long career as a trader, I have seen many people trade without stress but not a lot. Most traders are nervous and neurotic around trading times. This kind of mental energy can be exhausting and can cause long term health problems. 

Stress-Free Trading Tip Number 1: Have Clear Goals and Objectives: Trading Plan

The #1 Tip to trade without stress is to start with a trading plan. The best way to do this is to set clear goals and expectations. Analyze the market and plan what you want to accomplish by each deadline.

Imagine yourself reaching these goals and taking the next step once you accomplish your goals. This will get rid of the uncertainty feelings that lead to trading stress. 

A trading plan does not have to be a very big document. To begin with, you can start with a single page. Over time this page will turn into 2 then 5 and then in several dozens of pages. My trading plan now has about 52 Questions. In fact, all members of AIMS Community can see and copy my trading plan.  At the end of each year, I review my trading performance and based on that I come up with a new trading plan. I then share my entire trading plan with my members. 

Trading plan not only keeps me on track it also helps me remain focused and allows my mind to remain stress. Everything is laid out in my trading plan so I don't have to worry about what should I be doing. 

Stress-Free Trading Tip Number 2: Find out What Works for You?

Photo by Andrea Piacquadio

The second way to trade without stress is to find a trading strategy that works for you. Each trader should have a trading system that they can feel confident with. If you have the right strategy, you will always know what moves to make when the market begins to shift. 

I have several strategies at my disposal. Over the long 10 years of my trading career, I have managed to develop more than a dozen trading strategy. My personal favourite is The Setup One trading strategy. However, my most current trading strategy is what I call the LOBOT method. I simply adore the simplicity of this method. I use the LOBOT strategy on daily basis. Each morning we trade the DAX30 using the LOBOT method along with our friends in our Discord Server. 

In addition, you can decide whether you want to use technical or fundamental analysis. I have not come across many traders who would use Fundamental analysis lately. But it can be a powerful tool for those willing to hold positions longer terms. 

Technical analysis looks at price action and volume, while fundamental analysis primarily looks at company news and financial statements. Both methods are widely popular among traders because they 

Stress-Free Trading Tip Number 3: Choose the Right Niche

The third way to trade without stress is to find the right niche. You need to find a trading niche that fits your personality and skill level. For example, if you are only interested in making small trades, you should avoid high risk or low liquidity stocks. 

Instead, you should look into the safer options that offer a greater chance of success. Finding the right niche allows you to feel more comfortable with your investments, which will lead to a decline in stress. 

The way you trade should be flexible as no one size fits all. Your style should be personal and unique to you while giving you a high probability of success.

Stress-Free Trading Tip Number 4: Keep a Trading Journal

Photo by Judit Peter

The key is to understand our trading style works best for us. The path we are on in our trading journey is unique to us. What works for someone else may not work for us. And that's OK. All that matters is that you develop a trading style that allows you to trade your own way, your way!

Whilst, trading doesn’t have a “no stress” option, knowing how to trade correctly can really help you get started and improve your results. I highly recommend you join our trading community and begin trading stress-free. JOIN NOW 

Stress-Free Trading Tip Number 5: Acquire a Probabilistic Mindset 

The probabilistic mindset is the thought process many successful traders possess. It is the way a trader thinks about everything on a probability scale.

The best traders have a probabilistic mindset. They use probabilities to make decisions, and can quickly change strategies when their assumptions are wrong. A probabilistic mindset will help you make better decisions in Forex.

In a probabilistic mindset, everything has a degree of uncertainty. The strength of your belief is represented by the amount of evidence supporting it.

Whether you’re a novice trader, a day trader, a swing trader or an investor, the probabilistic mindset will help you to truly understand the market and become consistently profitable.

5 Reason I Day and Swing Trade Forex in 2021

So you've come to the right place if your goal in day trading and swing trading forex is to become a consistent winner. When it comes to trading strategies, systems, and indicators, there are an overwhelming amount of choices available to forex traders. 

Simply put, trading forex is an exciting way to invest your money. 

 As with anything worth doing, you must put in some work if you want to gain success. Below are five reasons why I trade forex (and it’s the same reasons why you should too). 

1. Forex trading offers monetary leverage. Even though we get far lower leverage of 1:30 in Europe it is still pretty good. Of course not as good as 1:100 and 1:200 which is still available in countries like Australia and the east in general. 

Meaning that you can trade with a low capital outlay to control a large currency position. You can trade a standard of $100,000 currency lot by investing with a small capital of only $1000. 

However, some Forex brokerage firms permit even less than that by giving you up to 200 times the leverage. This is not available for us in the west but the east is still great for forex traders. That is, with only $100 capital outlay you can control a 200,000 unit currency position.

2. There are no restrictions to your forex trading. You can trade freely without worrying about a broker or a bank that controls any aspect of your forex trading. 

3. Online Forex trading has low transaction charges even though if you have a mini account or trade in small volumes. 

4.  You can trade forex from any location at any time because it is global in nature.  Flexible time is one of the advantages of Forex trading. The Forex market never shuts as it is an incessant electronic currency exchange taking place globally. In this regards, you can trade whenever you have the free time and as long as there is an internet available anywhere.

5. You can trade by buying or selling in the Forex market in either direction, i.e. when it is going up or down. There is unlimited earning potential when you participate in Forex trading for it has a daily trading volume in excess of 1.5 trillion. That makes it the largest financial market worldwide when compared with the equity and futures markets of 50 billion and 30 billion respectively.

What's the Catch?

As with anything worth doing, you must put in some work if you want to gain success. Below are five reasons why I trade forex (and it’s the same reasons why you should too). 

Day trading or swing trading forex is a great way to make a living from the comfort of your own home. However, it is not easy money. There are many traps and pitfalls that await the beginner. On top of that, making consistent profits through forex trades takes time and effort which make this form of investment very similar to working on one’s day job. The only difference is you get to pick your own hours! 

But if you are in it for the long haul, trading currencies can help you make a living no matter how old you are and no matter what your circumstances are. You can even do this from the comfort of your own home by setting up your very own home office. 

 

How to Be Successful in Forex? Avoid These Top 3 Mistakes that Forex Traders Make. 

To be a successful forex trader, you need to have the right mindset and be prepared. 

The top three mistakes that forex traders make is 

1. Not planning, 

2. Not having a strategy and 

3. Noot having the right tools both technical and mental tools. 

 As a trader, whenever you buy or sell an investment, you’re taking a position. As with any asset, forex prices fluctuate on a daily basis. It is impossible to tell exactly how much currency will cost in the future. Even the most experienced traders often have different views on where prices will move. This isn’t a matter of opinions; it’s just how the market works. 

The forex market’s low transactional costs provide opportunities to save money. Forex traders need to pay very little commissions, taxes or fees when they trade with brokers. 

 ”But is it really convenient to trade forex—a time when I normally get home from work?” Yes, forex trading is conveniently done online from anywhere in the world.  You can basically open your computer and go straight to your trading platform at any time of the day or night, including weekends. 

 The forex market is highly sophisticated and the traders who master it are often viewed as experts in their respective fields. 

 Mastering forex trading is just like anything else; it will require you to study, watch and learn from actual market movement. With time and experience, you can earn a living from forex. 

Is it Really a Very Simple Way to Make Money?

Trading forex is a complex business. A number of technical and psychological skills are required. 

Forex trading is a skill and yes a big one. The reason might be complicated and could take some time. But, you’ll understand if you read along. 

I am a trader who shares my knowledge and expertise about the forex market and has covered many resources for traders in blog posts. 

For new traders, it is difficult for them to devise their own trading system since they do not have too much knowledge about the Forex market. However, even a neophyte trader can devise a trading system that will fit on his personal preference and needs—in just five easy steps!

3 Main Characteristics of a Successful Forex Trading System

Before we discuss the five easy steps towards a profitable Forex trading system, you need to learn first the three main characteristics of a successful Forex trading system. These are as follows:

1. A successful Forex trading system is simple. There is no need for a complicated trading system with too many rules. It is a proven truth that simple systems work better than complicated ones, and they have higher chances of success despite of the “brutal” characteristic of Forex trading.

2. A successful Forex trading system cuts losses and runs profits. Keep in mind that you need a trading system that gets the huge possible profits and eliminates losses quickly, if not instantly.

3. A successful Forex trading system follows long-term trends. You will never cover your losses if you are just generating small profits. Keep in mind that the Forex market is worth $2 trillion U.S. dollars, thus there is no point in trading in exchange for just small profits if you have the opportunity to make trades for larger revenues. Focus on long-term trends and you will be able to see better results.

5 Easy Steps in Building a Forex Trading System

Now, here are the five easy steps in building a profitable Forex trading system:

1. As previously mentioned, your trading system must be as simple as possible. Integrate few yet essential rules and an extensive investment management system.

2. Always look for long-term trends (preferably on a weekly basis), then shift to daily charts and to time entry. This will help you analyze market trends efficiently.

3. The ideal way of trading foreign currencies is through breakout method.

4. Always watch for any break that you will note on your chart, which is commonly confirmed by stochastic crossed with bearish divergence. This will be your great timing tool whether you will enter a certain deal or not.

5.You must integrate effective time management within your system. Time is gold and is one of your precious resources. Design a trading system that is time-efficient—where you can maximize the potential of your time resources to generate huge profits.

Get away with complicated systems; it will just ruin your entire Forex trading career. Build a simpler one and see for yourself how profitable it is. The one I like the most is our own trading strategy called The Setup. Download your FREE COPY HERE

How to Record Trades in Your Trading Journal

Today I'm going to record my first trade.  As you may know from my previous blog posts and videos. I have started a public 20K Swing Trading Challenge. 

How will I record my trades? 

I'd like to share with you a very unique method of recording my trades. We call this method the T20 Principle. 

I have learned this technique from Mark Douglas the Great (RIP). He introduced this concept in his famous book Trading in the Zone. 

I'm going to record my trades in Batches of 20. I will record each trade in a separate post. This is a modified version of our T20 Journaling Template. 

T20 Principle Book: If you're a member of AIMS please do not miss download the book T20 Principle. 

1. Batch and Trade Number: 

2. Symbol and Time Frame:

3. Signal Type: 

4. Trade Direction :

5. Date/Time: Entry:        

6. Date/Time Exit:   

7. Entry price: 

8. Exit Price:

9. Questions Before Trade is Taken: (I will record these in the form of a video analysis of the trade) 

• How do I feel before setting the order? 
• Intuition?
  e. g. What is your intuition about this trade? Do you think its a good setup? Do you think it will be a winner? How do you feel internally? Is the technical analysis correct? Is the market really in a good position to go in this direction? 
• Is this technically The Setup 1?
  [This question is entirely focused on the technical analysis side. Is this really a perfectly good setup 1? Is M1 creating the proper setup 1 pattern? Is the M5 Chart (or the 5XHTF) creating the correct corresponding pattern? Gator is open and there is a 4-5 candle pullback? etc]

10. Post Trade Questions: 

• How Do I feel after closing the trade (or end of the session for Day Traders)?
• Have I done well and why?
• Have done badly and Why?
• What Could I have done differently? 

11. DS For this Trade:

12. DS Running Total:

13. Add Picture and Video 

EUR/USD - The Complete Elliott Wave Analysis

EUR/USD Complete Elliott Wave Analysis by iTradeAIMS on TradingView.com

Editor's Pick on TradingView.com 

Stocks Swing Trading Strategy Ep #1

Do you remember a few days ago, I told you about my Stocks and Shares Trading Strategy?

I told you that I'm going to start trading the Stock Market and that I am going to apply a Swing Trading Strategy. 

You will see EACH and EVERY Trade that I Take. I have a £20,000 Spread Betting Account. It will be completely transparent. 

So, The wait is over, everything is finally ready. The Account is Ready and I have taken the first step. 

Watch the first episode of this series.  

You will learn: 
1. Which stocks are I  looking to buy this week?
2. How I find these stocks?
3. LIVE TRADES 

This Video was Followed by a Live Stream on Trading View Watch Here:

Part 1: https://www.tradingview.com/streams/JWVL8_5YwaEcfM1kLWRQh 

Part 2: https://www.tradingview.com/streams/Up4OGnIgQ1kozBcllu4fS/

Are You in to Stock Trading? Want to Know my Portfolio?

 Hello

As I sit here on a Saturday morning, wondering what would I do when I am finally allowed to go out and do what I want to do. But the reality is that I'm actually more excited about my NEW Venture of the New Year. 

I spent most of the last year researching and testing my strategy for investing and trading stocks. I have actively started Swing Trading Stocks. 

Initially, I have started with a 20K Account and I'd love to share my technique and analysis with anyone who's interested. 

I tested trading The Setup 1 Strategy on the Daily and Weekly charts last year. The results were more than outstanding. I mean, they are so ridiculous that I don't even want to share with you. I turned a 10K paper-trading account into 1.6 Billion. Say no more. 

I know I won't be able to do that on live accounts because I took enormously large positions often investing all of my equity. But what I enjoyed the most was getting into $TSLA Tesla Stocks at the price of $444 back in Oct and Nov 2020.  I'm still holding around 10 stocks. 

Another great trade was $FUTU. The Setup 1 signal got me into the stock at $45 and it went all the way up to $79. 

I have developed a Stock Trading Scanner on the TradingView platform. I shared a video on youtube last year.  If you'd like to learn more login to iTradeAIMS members area and visit Lesson 17 which is my Stock Trading Course.  If you are not a member yet please considering joining or otherwise wathc my FREE youtube videos where I have explained my Stock Trading Strategy. 

In this video below I discuss when I was long on Tesla from the average price of $436 Watch Time Stamp : 

If you join AIMS As a Premium Members I will Give you my Complete Trading Strategy. 

I will share each and every stock trade that I take, starting from when it first hits my scanner and when the Stock Gets added to my Watchlist. Which will be followed by a process of making the actual trade. 

I will be running a Live Account of £20,000. You will see each stock and inside the account. 

JOIN me in this journey of investing in stocks

Finally Watch This Video to Learn How I find Stocks and How I Decide to Invest in that company. 

And to the very end I leave you with $GM General Motors Chart which is my absolutley favourite. I will do a complete analysis of this stock this week.s