Sunday, October 11, 2015

How to get 4 additional winning trades per month

After working on Wall Street as a trader for 23 years, and managing private client accounts for the past 13 years,  I’ve seen a number of miracles happen over time.
One of my biggest win’s early in my trading career, was a trade back in 1982.
So starting with just a paltry $8,000 to my name, I began buying silver on the futures exchanges.  As it turns out my analysis was spot on, and I ended up running my $8,000 account to a little over $280,000 in only 30 days.

Since that time I have modified my trading strategy  – slightly.
After 120,000 trades, 1,200 trading accounts, and 8 Wall Street Firms – I am going to give you an exact guide to walking away with 4 additional winning trades per month.
Before you read this article you have to agree with the following statements:
  • You won’t find a ‘magic pill’ in the markets – the markets will eat you alive if you do.
  • The Forex systems churned out by marketers on the internet are just laughable – especially if you think that’s how they make money on Wall Street.
  • Forget about making 20%+ per month – that’s how poor people think.
Now, if you agree with all three of those statements then I salute you.
You are part of a small group of people who can separate reality from outright dreams and lies. And for that reason you will understand the words in this article better than anyone.
I don’t have time for ‘internet traders’, the ‘Forex forums’, or any other breeding ground for newbies who pretend they really know how the markets work – and neither should you.
This article is going to be simple.
I am going to show you how to get 4 – yes, just 4 – additional winning trades every month.
Don’t be fooled by the goofy EA developers and internet marketers out there.
Having 4 profitable trades per month is more than enough to push you into the big boys club.

Why most people reading this article will NEVER make a single dollar

Most people reading this article won’t make a dime. Not because the content sucks – it is some of the best trading tips in the world (according to me).
It is because people are lazy and don’t implement what they learn.
It is because people lose their shit and take too much risk.
And it is because you might not be able to handle my style. My past results really are no indication of you making any money whatsoever.
You might simply not have what it takes. However, there are a small percentage of people who do. And by following the rules you might be one of them.
There are no guarantees. So read carefully and make sure you examine every word on this page as if your life depends on it. Because it might just change it forever – if you have what it takes.

#1. The last (& only) opportunity for profits in the Forex market

There is this big lie out there that hundreds of thousands of Forex traders believe.
And you may have believed this too at one point.
“The Forex market is the most liquid market in the world and therefore it cannot be manipulated“.
That is plain wrong.
Governments have been cracking down on big banks because of their manipulation of a whole host of markets.
Check out this article on the BBC:
Screenshot 2015-08-18 21.01.02
Have a look at this chart they supplied:
_78920580_forex_rigging_explainer1_624
Have you ever been knocked out of a trade that just seemed totally random?
Well, chances are somebody rigged it. And chances are… you didn’t confirm your trade with a “2-pattern overlay”. More on that in a little bit.
You and I are small fish who are competing with much MUCH bigger sharks. Sharks who know the waters better than you do.
I used to swim with them. Merrill Lynch was only one of 8 companies I worked for on Wall Street. They did NOT take prisoners.
There are entire teams who’s job it is to cheat the system. And those are some of the brightest minds in the world from the best universities in the world.
You have to accept that you cannot beat them.

That’s why, what I’m about to reveal, is the very last opportunity to profit in the Forex markets.

Forget scraping a few pips off the charts.
Forget taking daily pivot trades, or “snipers”, or FAPTurbos, or whatever else these idiots are selling these days.
You have to stick to simple daily trades that unfold over a period of days, weeks, and sometimes months.
By riding the wave on a boat, you’ll be safe from the sharks on Wall Street.
If you want to get all of my trades for the next 14 days then click here and I’ll email them to you.

#2. How to dominate a currency with profitable trades

That’s a lie. You can never ‘dominate’ a market. That kind of thinking will get your account murdered.
However, you can put the odds severely in your favor by doing one thing.

You can use a simple “2-pattern overlay” before entering a trade

I’ve been using this since the 80s and it still works better than anything.
One million dollar client at EF Hutton & Co (another Wall Street company) dubbed me the “2-pattern wizard”.
Every time I used it he knew he was about to make enough cash to buy another house.
All you do is look for a minimum of two chart patterns to “confirm the trade”.
Now, that doesn’t mean you confirm an entry. You simply confirm that you potentially want to take a trade.
Here’s an example from one of my trades:
Example 2 pattern overlay
I saw a triple “core support bounce”, and then a simple overhead resistance. (If you don’t know how to spot price patterns then don’t worry… I’ll get to that).
DON’T jump into the trade just yet – it isn’t that easy.
You still have to know when to enter. I use a very specific ‘trigger’ that usually means the market is coiled like a spring, ready to burst in the right direction.
Keep reading and you’ll learn all about it.

#3. Use this simple trigger

Most newbies would simply jump into the trade because they saw a “double bottom” or some other pattern.
You and I know better.
You have to wait for the market to form a coil.
There are several different types of market “coils”, however the one I’m about to reveal is the easiest to spot and tends to give me better results.
It is called an “inside day bar”.
So, looking at the daily chart I would wait for this bar to form.
inside-day-bar
Here’s a real live example from a trade I took a while ago:
Screenshot 2015-08-20 17.31.49
Two inside day bars were the beginning of a nice coil. Here’s another example:
Screenshot 2015-08-20 17.34.30

#4. Have a tight stop loss and await the coming burst in movement

Remember that silver trade I told you about in the 1980s? It was my first big win.
Even though I turned $8k into $280k the risk was minimal. I did that by scaling into a rocketing market. Despite what people say… NEVER do that.
Not until you understand the true risks involved.
It can take a heavy psychological impact on you. I once saw a guy at Commodities Corp (now a division of Goldman Sachs) throw his computer across the room because he leveraged his position by scaling in too much.
Theres no need to do it.
Simply stick with what I am about to reveal and you could walk away with a handful of winning trades each month.

Keep the initial stop loss tight, and then keep it loose…

The initial stop loss is very tight. I anchor it close to the previous bar.
If you’ve established the correct price action and trigger bar, you should see it shoot off in the right direction.
Only 1 out of 2 trades tends to linger around. If they turn, then it means the trade is a dud and your stop loss will kick you out quickly.
However, when it goes… it goes.
Here’s an example of a good trade I took.
graph51
I made a fat 5.2% in about one week.
This example shows how it immediately jumped in my favor. That means I spotted a good coil.
By the way… those are actual trades. My trading platform marks them with those little circled arrows.
Here’s another example:
EURGBP immediately jumped after a trigger coil for a 2.5% gain in just one day.
graph11
I don’t usually exit trades in the same day, however, 2.5% is a lot of money in my world.
You don’t often see 2.5% days. If everyday was like that my account would grow by a billion every month.
So when it happens… I take it.

#5. Exiting the trade for a fat profit

This is how you get 4 additional winning trades.
If you get the coil right. Your trade should shoot out of the block like Usain Bolt.
This allows you to have a tight stop loss. It puts you in a great position to make huge gains with a tiny risk.
If your stop loss was far away from your initial entry then your risk would be greater and you’ll have to reduce your position size.
Therefore, I would recommend a hard and fast 3:1 risk reward ratio.
If your stop loss is 35 pips away, your profit target will be 105 pips (three times the stop loss).
Now, admittedly I use a way more complicated process for my exits. I could write an entire book on it.
However, when I looked back at my last 300 trades, I noticed that if I used THIS exit strategy I would still have made a great return.
It is simple and it takes psychology out of the equation.

#6. How to ‘never’ lose

I learned this while working at Bridgewater Associates (they manage about $170 billion) from a funny looking Irishman.
Back in 2011/2012 I forgot this rule and I duly got slaughtered.
There is a story inside of the book ‘Marketing Wizzards’. It talks about a great trader who locks himself in a room with no distractions. No windows. No TV. No Computer.
He has his assistant bring him his chart-book without the instruments named.
So he doesn’t know if he’s trading pork bellies or gold. He doesn’t care.
All he cares about is the price and the fact that he has no distractions. It means he ‘never loses’.
My rule gives me the same sort of piece of mind.

Before I let you in on it you must know what I mean by ‘never’ lose.

When you lose a trade – you aren’t ‘losing’. It is simply part of the process. It is the equivalent of a business expense.
You will always lose trades. However, when you lose your mind and you don’t follow your own rules. That’s when you truly lose.
So here are the exact rules you need to follow to NEVER lose, always stick to your rules, and always win in the long run.
Do not share your trading results
I did once. And only once.
It was a huge mistake.
All of the sudden I was answerable to thousands of people who happen to stumble across my profile. This doesn’t work when you are a trader.
I lost focus. I kept fussing about whether a trade was a winner or a loser. I didn’t focus on whether it followed the rules or not.
As long as you follow the rules… you are winning.
When you don’t follow the rules – you are losing (even when you make a profit).
Systems and routines are the only thing that make you profitable in the long run.
It is the only thing that’ll protect you against the sharks.
So whatever you do – don’t share you trading results. Not even with your husband or wife.
It’ll put external pressures on you.
Don’t even mention a winning trade or a losing trade. Simply tell them you’re winning because you followed the rules.

#7. How to make $1m from trading

Do you want to know the real secret?
The one that most people ignore, because they don’t really take their trading seriously?
Well, it is a system of recording and documenting your trades in detail.
I call it a trade journal. Super original right?
Every single time I am about to take a trade, I stop.
I take a snapshot of the chart, I write out my analysis (the reason WHY), and then I enter the order.
90% of my orders are pending orders, which means they only enter when the market reaches a specific price.

This is an example of three pages inside of my journal.
Trade Journal
By doing this with your trading you’ll be able to get a lot more focussed.
When you look at the markets you will feel excited. You will get a rush of adrenaline.
Stop. Take a deep breath and start recording the trade before it happens.
It gives you the breathing room you need to make rational decisions. It helps you to be a winner every time by following the rules.
I have taken over 120,000 trades in my life. And the only times when I was consistently profitable was when I kept a journal.
If you want to receive my journal for the next 14 days then click here and I’ll send it to you.
Seriously. Get my journal. It’ll show you how you should structure yours for maximum results.
You’ll also get a better feel for the way I trade.

Now you have two choices

I should congratulate you. You’ve read the entire article.
However, this is just the start. You now face two choices.
Choice #1
Forget what I told you and keep doing what everybody else is doing.
It is easier to follow the herd after all. Some of the things I talked about aren’t easy. Some of them are plain boring.
Yet this is what it takes. And I think you know that, which is why you’ll probably go for…
Choice #2
This is the choice smart Forex traders go for.
You grit your teeth and follow the rules.
So that you can finally break away from the ‘internet heard’ and actually start taking pride in being a trader.

Be the person that “actually makes money”. How nice would that feel for a change?

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