July, 2024 - Trader Pro

Make more money trading – how to enter a trade step by step

July 29, 2024July 29, 2024traderpro

In this article I’m going to explain in simple detail how to enter a trade in a margin spread betting or CFD account. I will explain how to enter a market order, set a stop loss and take profit/limit/target. I hope you find this helpful.

How to enter a trade

Entering a trade is quite simple but it should really tie up very well to your overall trading plan and strategy including your plan of managing risk. You can find articles on these on our blog here:

How to create a Trading Plan – make big wins trading

How to manage risk – make money trading

Right… getting back to how to enter a trade…if the above articles make sense to you, you can then choose to enter the market according to your strategy on your entry signal by opening up a deal ticket ‘market order’. A market order is an order which lets you enter the market immediately at whatever ‘buy’ price is displayed on your screen/chart. Let’s take a look:

First, I selected the blue ‘buy’ button. I use Trading View but you should find that your broker account is displayed/arranged in a similar way. This brings up a deal ticket and you can see the default is that it opens on the ‘market’ order tab – see the ‘Market’ heading circled and the number of units you are about to purchase. You will want to fix your stop and then control your number of units afterwards – see below. This is so that you can fix the amount you lose on each trade to be exactly the same, regardless of market and trade set up. I produced a video explaining this on Patreon, here:

https://www.patreon.com/posts/how-to-control-104741853?utm_medium=clipboard_copy&utm_source=copyLink&utm_campaign=postshare_creator&utm_content=join_link

How to set a stop and limit/take profit

As stated above, it’s best to set a stop loss first. You should be aware of what ‘price’ you want your trade to exit the market at, should it go against you. See the section above on how to enter a trade. You can add this ‘price’ level to the trading view platform in the stop loss ‘price’ box, here:

In the above screen shot you can see that the ‘price’ level option is available for you to input a number. What you might find with some brokers, however, is that you need to choose an arbitrary ‘points away’ value and then adjust this on the chart by pulling the stop up or down on the chat, until it reaches the correct price according to your trade set up/strategy and plan. This was explained in my video on Patreon linked here:

https://www.patreon.com/posts/how-to-control-104741853?utm_medium=clipboard_copy&utm_source=copyLink&utm_campaign=postshare_creator&utm_content=join_link

Once you have set your stop price, you should be controlling the ‘quantity’/number of portions of the market you want to open. This should be etched up or down until you get to the required stop loss ‘value’:

In this example, I have controlled the number of portions to be such that the value I lose on the above deal ticket would be no more than £100. Note that this is not always perfect – you cannot always fix it exactly to the number you want. The closest I could get this on this example was £101.23 rather than £100. This is ok – such a small difference in stop value will not have an impact on your win rate or the success overall, of the strategy.

Once you have set your stop loss and chosen the quantity, you can then set your limit in terms of price. As with the stop, some brokers will force you to choose a ‘points away’ value and then you may need to adjust this line on the chart to pull your limit/take profit target to the correct position.

Once your stop, quantity and limit have been set, you are good to go, and you can just click buy/enter.

I hope all of the above makes sense, and it’s clear how to enter a trade, but if you are stuck, please do reach out and I would be glad to help!

Entering the market at a chosen price

You can also enter a trade with a ‘limit’ order at a specific price. This will allow you to only enter the market at a given price, and if the market does not reach this required price, you will not enter. This will be exactly the same as the steps above but you will start by entering the ‘price’ at which you wish to enter the market, on a ‘Limit Order’ ticket, into the relevant box:

Once you have chosen the limit order and entered your limit price, the other steps will be the same as above for a market order.

I hope you found this article helpful.

For more great tips and advice on trading the stock market, please visit:

https://trader-pro.co.uk

To watch me trade live please visit my Patreon page here:

https://www.patreon.com/Traderpro8320

Finally, if you would like to receive a discount on the Trading View charting software I use, please click on the relevant link here:

https://www.tradingview.com/?aff_id=117138

Please note any subscriptions taken via my affiliate link with Trading View may result in me earning a small commission. However, I provide complete transparency on me using Trading View personally – I publish my success on the financial markets via my broker reports and any profits earned were done so by using my own Trading View subscription, so I genuinely do recommend them and have been using the Trading View charts for many years.

MACD secrets to help you make more money trading

July 23, 2024July 23, 2024traderpro

In this article I’m going to share with you some MACD secrets on how you can use the MACD indicator in a really practical way to make more money trading. You will not likely find these useful, very simple and practical tricks discussed anywhere! If you are intrigued please read on!

MACD Secrets… First, what is the MACD indicator?

The MACD indicator stands for Moving Average Convergence Divergence. We discussed in detail the technical side of how this indicator works in one of our other blog posts. You can read the technical detail here:

How to use MACD – The Moving Average Convergence Divergence to make more money

OK. So now you know what the MACD is, how can you use it in a practical way to make even more money when you are trading?

MACD tips which other traders don’t tell you…

The first MACD secrets we would like to share with you, is how to use the MACD to help you avoid taking losses when an uptrending market is starting to change direction and it’s running out of steam. We discussed how this can be done by noting the swings high or low of the MACD indicator, and whether or not the market is making higher highs based on these, in this article:

Amazing secrets to help you make more money trading – spot a downtrend early!

So how else can you use the MACD? What other MACD secrets are there to share? The MACD can show you the strength of momentum. Let’s take the histogram bars as an example… when the histogram bars are growing in size, it means the market is either increasing strongly or decreasing strongly in price. Also, when the histogram bars turn from dark green or dark red to light green or light red, it means the market’s price is losing it’s strength in which ever way it has been travelling… let’s take a look at some examples:

For a discount on the charting software used (Trading View), please click here:

https://www.tradingview.com/?aff_id=117138

I’ve provided the example of Marvel above. As you can see, the MACD histogram bars are dark green usually straight after a cross over, which is why this indicator can be used to spot an entry signal after a cross over below the zero line of the histogram, but after the cross over, how do you know whether the market is losing it’s strength? Note the colour change of the histogram bars on the above chart and then compare that to the price action above:

I’ve circled an example – you can see when the histogram started turning light green, the market’s price started dropping like a brick. On this occasion the indicator was slightly ‘lagging’ but you can see other examples where there was an early warning before the market dropped! See the example below:

You can see the colour of the histogram bars were flicking on and off from dark to light green – a warning sign! Then what followed? The upwards move completely lost it’s strength and the market started making a pull back.

Another way you can use the MACD to tell you what the market is likely to do, is by looking at the shape of the MACD cross over. If the shape of the MACD and Signal lines going into the cross over are such that they are almost at a vertical angle, this can be a really good indication that the price is going to move quickly in the direction of your choice… if the cross over is happening with a gradual ‘sliding’ ‘converging’ of the two lines this can be less fruitful. Let’s take a look at some examples:

As you can see in this example on Meta Platforms, the blue MACD line scooped under in such a way that it had a lot of momentum and the price pushed significantly higher after this on the chart. Let’s look at the opposite situation:

As you can see here, the price movements are almost flat after the cross over circled above- the MACD and Signal lines were very closed up after the cross and before the cross – and the price movement following the cross was insignificant. Indeed, the price actually took a nose dive shortly after this area on the chart! The momentum for the price to go up was weak and exhausted.

Once you get the hang of spotting these very practical MACD secrets, they really can help you in understanding the markets. We hope you found this article helpful.

For more great tips and advice on trading the stock market, please visit:

https://trader-pro.co.uk

To watch me trade live please visit my patreon page here:

https://www.patreon.com/Traderpro8320

Finally, if you would like to receive a discount on the Trading View charting software I use, please click on the relevant link here:

https://www.tradingview.com/?aff_id=117138

Support and Resistance – how to make more money trading

July 17, 2024July 22, 2024traderpro

In this article I’m going to explain what support and resistance is, how it affects the markets and how you can use it to make more money in your trading. All traders have got knowledge about support and resistance, and they use this knowledge frequently when placing trades on the market – it would be suicide to attempt trading without it! So let’s get started in understanding it!

What is support and resistance?

Support and resistance refers to areas which are particular zones of a financial chart where the price tends to touch the area and then rebound away from it. These areas are where there tends to be a lot of buying and selling pressure. Let’s take a look at some examples:

OK… So I’ve given you the example of the chart of Marvell. (If you would like a discount on the chart software I use, please click here):

https://www.tradingview.com/?aff_id=117138

As you can see on the chart, the price tends to touch the red lines and then rebound away. It has done this several times (numbered with the chat bubbles). When the price gets to around 71.25, the price tends to react at this level and push up from there. The opposite is true for the red line at the top of the price movements which is around 73.69.

So why does the price move in this way?

The answer is that many sellers including hedge funds and institutional investors, are aware that the price historically has reached such a level as a limit to the extent to which it can stretch before rebounding. Sellers and buyers are aware of these historical levels – and they then reinforce them by buying and selling at these levels even more, which creates something similar to a self fulfilling prophecy.

For example, if historically on the chart it can be noted that the price always moves up after it falls to the 71.25 level, many buyers will be watching and waiting for the price to reach this level before they place a buy order. They know there is a strong probability that the price will increase from this area. This in turn leads to more buying pressure and volume, creating the movement again away from the area – and so a pattern is formed after some time where this happens repeatedly. This leads me on to discuss the ‘usefulness’ of support and resistance in trading.

So how can support and resistance be used in trading?

If you can see historically that the price tends to move upwards after it touches a particular point on the chart, you can make a note of this and wait patiently for the price to enter the ‘support’ zone. The area will be called a support if there is a lot of buying pressure there. Likewise, the area is referred to as a ‘resistance’ when there is a lot of selling pressure at the area. Once the price has entered the support zone, the buyer can place a buy order and wait for the price to ascend upwards in line with the historical movements. The movement upwards from a support is not guaranteed but it will have a strong probability to move upwards from that spot.

The same is true for placing a sell order at a resistance level. A seller can place an order there and wait for the price to descend towards a profit target.

The stop losses can be set to the other side of the support/resistance zone, as so:

The stop loss would be placed where the bottom of the red zone is on the trade set up diagram above. The target could be set for the upper resistance area/line. This would apply the opposite way for a sell at the top line with the stop loss being placed above the top red line and the profit target being placed at the bottom red line.

As well as taking profit at these types of zones, some traders also place ‘break out’ trades. Break out trades work on the basis of the event of the price breaking through a strong support or resistance level. If this happens the price tends to move far and quickly beyond the level. Some break out traders achieve a 4:1 reward risk ratio for example. To understand risk management, please see my other article here:

How to manage risk – make money trading

How do you identify and draw these lines on the charts?

When ‘identifying’ support and resistance zones, you want to go to the daily time frame and zoom out as far as you can go, to see the greatest amount of historical price movement on the screen. Then take note of any really obvious levels. If you are squinting to see whether a level is present or not, it’s not! It needs to jump out at you and be really obvious. You want the price to have touched the level and rebounded at least three times but preferably more. The greater number of times it has touched the level and rebounded away, the better! I shared a video on my Patreon channel on how to draw support and resistance, here:

https://www.patreon.com/posts/support-and-102073984

You can select some tools on most charts to apply horizontal or diagonal lines to a chart (support and resistance can happen diagonally too but these are less strong than the horizontal lines) – you can see them in Trading View in the menu on the left here:

Also note that the most recent activity is the most important activity. Be sure to observe any recently formed support and resistance lines as well as really old ones.

Another thing to be aware of is that when the price busts through one of these zones, let’s say a resistance level, this resistance will then likely become a support for the higher prices – meaning it will in future touch it and go up, whereas previously it was touching the level and rebounding down.

I hope you found this article helpful.

For more great tips and advice on trading the stock market, please visit:

https://trader-pro.co.uk

To watch me trade live please visit my patreon page here:

https://www.patreon.com/Traderpro8320

Finally, if you would like to receive a discount on the Trading View charting software I use, please click on the relevant link here:

https://www.tradingview.com/?aff_id=117138

Amazing secrets to help you make more money trading – spot a downtrend early!

July 12, 2024July 11, 2024traderpro

In this article I’m going to show you how to spot a downtrend early and identify whether or not a market is still genuinely uptrending. The first thing you look at is whether or not the price is floating above the 200 period EMA – sure, but how do you know if it’s started to downtrend, inspite of this? I share this secret below.

Spot a downtrend early – the highs and lows of the trend

The highs and lows of a trend really are the trader’s bread and butter. Without identifying these there are multiple things that can go wrong with the trading set up. New traders should really slow right down and take some time to identify these – they are critical to success. You will make a lot more money trading by spotting the highs and lows and avoiding bad entries where the market has just started to reverse to the downside.

Let’s take a look at some examples. Let’s consider the market of Gold as an example, on the 10 minute timeframe… take a brief look at the chart below, and try to decide whether it’s uptrending based on recent activity, before continuing to read on…….. did you do it?

OK, let’s consider my answer to this question. It’s above the 200 period EMA – GREAT! However, let’s now look at the highs and lows. You can check exactly where the highs and lows are and use these to spot a downtrend early, on the basis of the ‘swings’ of the MACD indicator and this is one of the practical ways the MACD can really help you in your trading – aside from giving you entry signals:

As you can see, at first glance the market does look like it’s now uptrending, but when you look closely, low 3 is now lower than low 2. In an uptrending market, the market makes ‘higher highs’ and ‘higher lows’. The pattern of uptrend has been anialated at the point of low 3. It starts again at that point – you can wait and see if it starts making higher highs and higher lows from that point onwards… a bit like this:

OK, so the pattern has started again at the original ‘low 3’ which I now refer to as low 1. As you can see it did go on to make higher lows again at low 2 in the above chart. You need the confirmation of it forming new highs and lows before placing a trade!

How this can help or hinder your strategy

Let’s consider what this could have done to your trade set up and win rate and profits/losses, if you ignored this break of pattern…

Let’s say you wanted to get in at the MACD cross over as your entry signal. (To understand more about this please see my strategy that I teach on Patreon, here:

https://www.patreon.com/collection/485557?view=expanded

You can also see my other article about how the MACD indicator works, and what it does, here:

How to use MACD – The Moving Average Convergence Divergence to make more money

Let’s further suppose that you entered the market at the MACD cross over at the low which was previously referred to as low 3, here:

You set your stop just below the low of the trend at the level which is shown in line with the bottom of the trade set up diagram applied (2370.33). As you can see, because the market was making lower highs, it went on to chop down into the stop loss before recovering. This loss would have been something that could have been completely avoided had the trader taken the time to spot a downtrend forming by identifying the highs and lows. Consistency in the pattern is key, before entering the market!

I have seen this help me avoid bad entries on many, many occasions. It does mean that you end up ‘avoiding’ placing trades and you place fewer trades, but with trading, less is more!! You will make more money trading, by placing fewer trades.

I hope you found this article helpful.

For more great tips and advice on trading the stock market, please visit:

https://trader-pro.co.uk

To watch me trade live please visit my patreon page here:

https://www.patreon.com/Traderpro8320

Finally, if you would like to receive a discount on the Trading View charting software I use, please click on the relevant link here:

https://www.tradingview.com/?aff_id=117138

Wow! I just made £370 in profit trading Diamondback

July 11, 2024July 11, 2024traderpro

I made £370 in profit trading Diamondback within the space of a couple of hours recently as a day trader. I talk about this below. I have placed these types of trades many, many times and had similar success.

How I made £370 in profit trading Diamondback

Patience is key in waiting for the right opportunity – I am always striving to prioritise quality over quantity with trading. I have talked about Diamondback becoming ready for a trade on my You Tube channel here:

You can see in this video I called this market as one I was watching very closely before I placed my trade on it. My Patreon members benefit from having commentary under a microscope prior to me entering these types of trades. I explain to them where I will get in, what I’m waiting for, what I’m thinking while my trades are open, and where I am planning to close them. You can get all of this on my Patreon page by becoming a member of my channel – I would love for you to join me and share in my success:

https://www.patreon.com/Traderpro8320

For more great tips and advice on trading the stock market, please visit:

https://trader-pro.co.uk

To watch me trade live please visit my patreon page here:

https://www.patreon.com/Traderpro8320

Finally, if you would like to receive a discount on the Trading View charting software I use, please click on the relevant link here:

https://www.tradingview.com/?aff_id=117138

Wow! I just made £330 in profit trading Copper

July 10, 2024July 8, 2024traderpro

I made £330 in profit trading Copper within the space of a couple of hours last week as a day trader. I talk about this below. I have placed these types of trades many, many times and had similar success.

How I made £330 in profit trading Copper

Patience is key in waiting for the right opportunity – I am always striving to prioritise quality over quantity with trading. I have talked about Copper becoming ready for a trade on my You Tube channel here:

https://www.youtube.com/watch?v=aFvXtPS-BJs

https://www.patreon.com/Traderpro8320

For more great tips and advice on trading the stock market, please visit:

https://trader-pro.co.uk

To watch me trade live please visit my patreon page here:

https://www.patreon.com/Traderpro8320

Finally, if you would like to receive a discount on the Trading View charting software I use, please click on the relevant link here:

https://www.tradingview.com/?aff_id=117138

How to control emotion when trading to make more money

July 9, 2024July 11, 2024traderpro

In this article we discuss how a stock market trader can control emotion when trading. Trading can be very emotional but we provide the secrets on how to control emotion while trading, and these secrets are absolutely critical to becoming a successful stock market trader.

How to control emotion when trading – which emotions are at play?

The stock market is driven, basically, by a whole boat load of people placing orders to buy or sell. These people are filled with emotion but two emotions in particular are at play, when trading. The emotions at play are FEAR and GREED. Here are some examples of how the emotions of fear and greed can affect a trader when s/he is trading:

When entering a trade, the trader can get in too early (greed);
When exiting a trade, the trader can exit too late (greed);
When entering a trade the trader can miss out on the entry (fear);
When entering a trade, the trader can close too early (fear);
When looking for a market to enter, the trader can ‘stretch’ their entry criteria to markets which do not really meet the original criteria thereby allowing the trader to enter trades on markets they wouldn’t have entered without the emotion attached (greed);
When the trader has taken a few losses in a row, the trader can become fearful of the next trade and this can affect logical decision making (fear);
When the trader has taken a few profits in a row the trader could become complacent and start ‘overtrading’ (greed).

As you can see, there are a number of scenarios where the trader can be affected by these two emtions. So how do traders control emotion when trading?

How to control emotion when trading (fear and greed) – which trades to place?

The first step in how to control emotion when trading, which every new trader should be aware of is that he/she should be looking to place the same types of trades over, and over and over again. Types might include breakout trades, buy the dip etc. By placing the same types of trades over and over, the trader will slowly but surely develop confidence in his/her strategy, or be clear that what the trader is doing, is not working statistically. The trader will be acquiring very unique statistical data to do with the trader’s own personal trading style. S/he can gather information about how many losses or profits to expect in a row before it switches the other way – thereby keeping the trader calm when they know in the long run, the strategy is profitable overall. (If the strategy turns out to be unprofitable, keeping statistical data gathered on the same types of trades empowers the trader to acknowledge, accept and move on from something which is undeniably, not working – perhaps to try a different approach -but this should only be done when the particular strategy has been given a fair chance). A trader should look to place 30 + trades on a particular strategy to see the win rate. The win rate can fluctuate wildly at the outset because the population of trades is not large enough for the win rate to have any meaning. The writer has found that after about 30 trades this starts to settle down and with 100 trades the trader can really be sure of the win rate of what he/she is doing.

Second but just as important – Risk Management!

Another crucial step to controlling emotion when trading is to practice good risk management. We have provided a key article here on this:

How to manage risk – make money trading

A trader will find that if they are controlling risk effectively, this effectively keeps their emotions more ‘caged’ than the scenario where risk is not being managed effectively. For eg. when combined with the point above about placing the same types of trades and understanding the strategy being applied on a statistical basis, when the risk on each trade is low, the trader will not be worried about taking four losses in a row in the same way they would if they were risking half of their capital balance on each trade! They would soon be out of the game in this second scenario and would probably give up and start smashing their computer (not unheard of in the writer’s experience).

The writer believes these two single items can help any trader manage their emotions successfully. We hope you found this article helpful.

For more great tips and advice on trading the stock market, please visit:

https://trader-pro.co.uk

To watch me trade live please visit my patreon page here:

https://www.patreon.com/Traderpro8320

Finally, if you would like to receive a discount on the Trading View charting software I use, please click on the relevant link here:

https://www.tradingview.com/?aff_id=117138

Make money trading – some recent profitable trades for you!

July 2, 2024September 2, 2024traderpro

Hi guys

Just wanted to share some recent profitable trades I placed in May… May was a very good month for me. I’m sorry this is a bit late! The first thing to note is the direction of the overall market in May… See below screen shot of the NASDAQ and the S&P 500 on the daily timeframes. They were both in a nice uptrend with the MACD opening up:

Markets overall – recent profitable trades

I like to get into trades when the markets overall are about to make a MACD cross over or that has just happened. The S&P 500 was a bit slower than the Nasdaq – you can see the cross over was a bit bumpy and happened mid month!

Now lets take a look at some trades I placed:

Seagate – recent profitable trades

This is an IT company. The trade I placed on this one was not for beginners – it’s not in a nice strong uptrend currently. However, I knew the price was in a habit of bumping against the EMA line at at the point I entered on 9th May, it had reached another low, and we had just had a MACD cross over. I set my target for the EMA line as I knew there would be some resistance there. Sure enough it reached it’s target by 15th May and was profitable.

GOOGLE – recent profitable trades

This one was in more of a typical trading pattern for my sytle of trading. It had started uptrending strongly after reaching overall lows. There was a support level at around the moving average cross overs and I entered at this point on 9th May, when the MACD was just about to cross. The price reached up out of a consolidation zone and hit it’s target on 11th May.

Easyjet

This was another one which was not in my typical trading pattern….. I don’t usually trade consolidations. You can see the price was moving sideways between quite a narrow channel. It made a MACD cross over at my entry point and I set my target for previous highs. This one was another profitable trade.

GOLD:

30m timeframe:

This trade was very typical of what I look for and it was profitable. I first checked the daily timeframe to make sure that the price was uptrending in the candles and the MACD. On the daily timeframe the price had just bounced away from a support level with a MACD cross over below the zero level of the histogram. Next I zoomed in and got in and out of the trade using the 30 minute timeframe above. I waited for a MACD cross over on the 30 minute timeframe and set my target for around the previous high.

For transparency I have copied below the relevant entries in my trading account.

Just to be clear, not all trades were profitable in May. I made a loss on Shell and a couple of other markets.

I hope you enjoyed this digest. Please check our other blog posts for helpful trading tips and resources: Trader Pro – Trading strategies for success in the financial markets (trader-pro.co.uk)

If you would like to use the charting software above, we highly recommend Trading View to you. Use the following link and you may receive a discount on your subscription: https://www.tradingview.com/?aff_id=117138&source=TraderProBlog

Will the UK elections cause huge growth in the UK economy?

July 2, 2024July 11, 2024traderpro

The question of whether or not the UK elections will cause the UK economy to grow, is an interesting one, and one which we consider below. We consider the impact of previous elections on the FTSE 100 index as well as the impact of Brexit. Let’s take a look!

The previous three UK elections and their impact

The followingUK elections took place previously:

12 December 2019 – Conservatives
8 June 2017 – Conservatives elected
7 May 2015 – Conservatives elected
2010 – Conservatives and Liberal Democrats elected under coalition
1997 – 2010 – Labour was in power

OK… So now we know the history of who was elected previously, let’s compare this to the movements on the FTSE 100 index…:

As you can see the first time the consercatives were elected in 2015, the economy did start to grow. This continued until around June 2018 when the economy started, what I refer to as ‘stagnating’. It was moving sideways from the highest peak, until the Covid issue for a period of nearly two years. Obviously Covid’s impact was to drop the share prices like a ton of bricks! There was a sharp recovery to a point from Covid up to the time we finally left the EU via Brexit. From this point onwards, the growth in the economy has outstripped any performance previously. It seems when we are being told that Brexit has had a terrible impact on the economy, we are in fact being lied to. (I do accept that businesses have got a lot more admin to deal with, but it seems notwithtstanding this, the economy bounced back from Covid and exceeded any of its previous achievements). The economy has now reached its highest highs ever recorded!

My trading view charts do not go back far enough to consider what happened when Labour were in power. However, I found the chart below on the following website: https://www.statista.com/statistics/261764/annual-development-of-the-ftsenull-index/

According to this chart, the value of the UK economy bounced around when Labour was in power. It seemed to have two peaks where the second did not outperform the first so it was not really growing.

What will the next UK election do to the value of our economy?

Considering it’s possible for Labour to come into power, we can probably expect the economy to start stagnating again. With either the Conservatives or Labour, it seems they were both against the Brexit vote, (they seemed to have spent more time trying to ‘undo the vote’ rather than implement it, and they were both on the same page on this. Given the Brexit vote seems to have had the most dramatic effect on our Economy in a good way and these two main parties were against it from the start, indeed they were arguing there would be absolute catastrophy as a result of Brexit, it’s very difficult to say what we can expect of them or how much, what they say, can be trusted!

The writer is unclear about what will happen but we do have the history there under each party as a slight indication of their performance. It seems however, that the UK citizens actually know better than both of them!

I hope you enjoyed this article.

For more great tips and advice on trading the stock market, please visit:

https://trader-pro.co.uk

To watch me trade live please visit my patreon page here:

https://www.patreon.com/Traderpro8320

Finally, if you would like to receive a discount on the Trading View charting software I use, please click on the relevant link here:

https://www.tradingview.com/?aff_id=117138

I made the most terrifying mistake trading this month!

July 1, 2024July 11, 2024traderpro

This month I made the biggest mistake trading – of my life. It’s a mistake I have learned from and one which I never, ever want to repeat. I failed to close a position when it was going against me. This was literally the most costly mistake I’ve ever made and i’ve never had suck a lack of discipline in my trading previously. I explain below.

Biggest mistake trading – EUR/JPY

I entered this market obviously with a view to making a profit. The trade went against me but it moved so quickly that I lost my discipline and control at the point where it was at my stop loss level. I usually close trades manually and I still am minded to continue this practice because it usually allows me to analyse what’s going on at the time, under a microscope, so as to not close trades prematurely. However, on this occasion, the EUR/JPY price sailed down so fast I was not thinking clearly and as it went further against me, it was even more difficult to close. I’m sharing below the point where I was sitting in the trade per the 30m timeframe. I exited the trade somewhere on it’s way back up after sitting there watching it until 3am… I had initially thought it was recovering but then the huge green candle formed with the enormous bottom wick, seen below. It was here I exited the trade because I had no idea where the price would end up and doing some analysis on the daily timeframe, I decided the price had the potential to soar down to the EMA line on daily timeframe, and this would have put me into the red for a value which would have represented about 75% of my entire trading capital balance! I felt obliged to close the trade on that large green candle. I felt relieved once the trade was closed.

You will see below that the price did in fact recover which is frustrating for any trader to note, following a loss – but especially following a particularly large loss! However, any decisions we make are ‘in the moment’ – we do not have a crystal ball.

What did it cost me?

This mistake cost me 10% of my trading capital balance. It was a very costly mistake. It should have merely cost me 1% which is my usual loss tolerance. However, it could have been worse and as I said above, I was filled with relief once I had closed the position. It has set me back in my overall growth plan for my trading account.

The lesson which has been learned by me

After this experience, I will never, ever, hold a position open again when it has moved against me and reached my pre-planned stop level. I also learnt something about myself – that I am capable of momentary lapses of discipline. As traders we need to learn from these mistakes, forgive ourselves and plan how to move forward effectively. Trading is very emotional and we are not algorithms. Trading can be affected at any one moment by personal circumstances or worries/concerns completley unrelated to trading. Even hormones can affect the way someone behaves on a given day. I am usually a very disciplined trader and I am disciplined in many different aspects of my life so I really did surprise myself this month – but knowing this was out of character, I am confident that I will never allow this to happen again. It was completely counterproductive – it will take me about two months to catch up and get back to the account size I would have been at, had I not made the error.

I am now forgiving myself and moving forward.

I hope you found this blog post helpful and it helps someone else to avoid losing money/perhaps it will help someone else to have the courage to close a position when things have gone badly wrong!

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