Hello, and welcome to Module 12. In this module, we will look at some tips that I trust will help you to succeed with your trading, calling it long and short of it. So, if you got this far, congratulations. We have covered a lot of information over the last 12 emulated modules and I'm sure you can't wait to get trading. But maybe just before you run off perhaps this is a good time to share with you some of the personal trading wisdoms that I've learned over the course the last couple of years. And then to conclude this module, I will end with an overview describing my personal trading style and showing you some of the strategies and that I use myself.

I will also do this starting with a blank chart and showing you step by step out I said everything up and what I look for during my analysis. Sharing wisdom number one, define your strategy. So before you start trading, make sure you have a proven and back tested and a well defined rule by system for planning entering managing exiting your trench. So this should include a key entry level, a stop loss level as well as the target level. also ensure you have a risk reward ratio of greater or equal to one to one. In other words, we are talking here about your trading plan.

Very important. Before you start trading, make sure you have this in place. Trading wisdom number two, always define your risk you're not to lose before you learn how to win. And then trading gets exceptionally important because we cannot take a loss, you will sooner rather than later take the mother of all losses. So always stick to your predefined stop loss and it only gets more and more difficult to exit once you have dissipate your needs. Stop Loss.

And you can trust me on this one, this is something I still struggle with, especially if I have not into the fixed stop loss like I should. And if you disobey that initial stop loss level, you will find it more and more difficulty because that position and your loss will just become bigger. So there's my opinion is the case you'll have my strategies. And, and I also have wanted to underestimate the importance of not risking more than one to 2% of your capital per individual trade. And like we discussed in the big news, of course, the reason for that is, and this will allow you to have much greater provision for a much, much greater using street should you be a bit unfortunate in some of your trades and avoid the risk of ruining your account. So stick to that rule of not risking more than one to 2% of your capital.

Individual trade. Some of them are free. Never force a trade. be disciplined in your trading approach. By religiously sticking to your strategy and trading plan, then enter trades casually by looking for trade unfolded, and the thought utter chaos and uncertainty with a mod market. There's no clear direction it's better to sit on the sidelines and protect your capital.

There is not one job of each and every trader or investor out there and it is to protect your capital. And as I say, it's better to stay out of the market wishing you were in and in wishing you were out. Wisdom number four, define your age and share that your trading strategy has a high probability of phone teach. Australians like to call it an age. Now to ensure your strategy you have an inch to a bet based on the strategy by following your trading rules on historical data followed by trying it out in a demo account or free paper trading for those of you who are maybe familiar with it. concept.

Ultimately you can use the automation and data services as provided by myself on WWE effects automated comm where I will analyze and test your strategy using comprehensive computer simulation and tools that is available to me was the number five trade with the trend. Only take trades in the direction of the primary trend a lot of traders out they do make as we call it, counter trend trades. But in the long run, that is never a wise thing to do. And it's unnecessary and realistic of the primary trend. And if you as we suggest just straight on the daily and four hour time frame, if you do see a setup on maybe the one hour time frame that seems counter trend to the one hour time frame, that is okay but as long as you trade in the direction of the dream on the floor, Our chart and you should be okay.

So stick to that for our charts. One of the simplest ways to identify the primary trend is by using the 200 simple moving average. And if the 200 simple moving average is pointing upwards and the price is trending above that you are most likely in a bullish trend. Likewise, if the 200 simple moving average is pointing downward, and the price is trading below it, you are most likely in a bear trend. If the trend direction is unclear, stay out of the market do not go into the market when the market is ranging, unless you want to try out the strategy like the bollinger bands. And But otherwise, it's basically just a style of the market when it's very volatile.

You can also make use of the ichimoku Cloud like we've discussed and we you only take trades when you take long trades when you are above the economic cloud in the four hour or below with a technical attacking short writes when you build a cloud on the four hour and again, if you move towards a one hour time frame and you are on the opposite side of the longer timeframe trade is okay to take a counter trend trade as that is usually where your pullbacks will happen on your larger timeframes. So for instance, if the four hour trade changes down and on the one hour timeframe, price is moving in forming a new uptrend on the one hour time frame, but the four hour time frame trend is still valid and down, you can take that trade short sighted, but like I said, stay on the trend based on your time frame level.

Wisdom number six, keep a trading journal. And as part of your trading plan, you should always keep a journal of every trade that you take. And for instance, before you take a trade clearly define your entry stop loss and take profit label along with their risk reward ratio. Along with this, you should also have Have a checklist with set rules that you can tick off before your trade is taken. A lot of traders actually print out a checklist for them to think that they actually tick off before they take trades. And it's not a bad habit to form.

For instance on trading in the direction of the trend is my that's a question on a checklist. And it's my recipe is greater or equal to 1am I okay to take the loss should the trade not work out. So always be sure that you are okay with the loss should it have happened that you lose the trade and you have to take the loss, then as part of the journal, you can also write the execution of each trade along with any comments that you want to add. Wisdom number seven, consider the bigger picture. So before you take a trade, double check and make sure there are no imminent fundamental news or things that may have an adverse impact on your trade. So always keep an eye out for scenes and other economical news announcements.

Also Take into account things like dividend swing trading short safety position, as you will be responsible to pay the dividend. If you hold the position over the ex dividend date, and conditioning, if you are low on the market, remember that the price of the security are likely to to get down slightly gum extending. And just getting back to those news and economical news announcements. I personally make use of Twitter and I follow some of the economical news. entities on the wisdom number eight, protect your capital. We've mentioned this already quite a number of times, but I can't emphasize it enough to protect your capital limit your position size and exposure to never risk more than that at 2% or some threats even go 1% on a single trade.

So in other words, your stop should should be sent a maximum of 2% of your available training data While still enabling enough wiggle room in a trade immediately, it's not immediately get stopped out on a price spike or just you know, in on volatile behavior. You can also very, very your position sizes in accordance with market volatility and always trade smaller positions when the market is very volatile. And you should also consider implementing a maximum loss per day of say, say four to 5% of available capital. So, let's say you make two trades a day you lose the first one you lose the second one as well and maybe rather stop your trading for the day or maybe take one more trade and it wins Rosa maybe you know the site rather take that profit and go or you're just just not overtraining that's actually it comes down to not over trading and not risking too much of your capital on Single Day.

Wisdom number nine never add to a losing trade or position. So oftentimes when you're very optimistic about a trade and the returns against you, you might be tempted to average down by adding onto your position in the hope of getting a better average entry price. Now, this is something that a lot of new traders T and almost never works out. It's one of the fastest way to destroy your trading capital. And the reason that this is this is great is because you are recklessly increasing your risk exposure beyond what your risk profile can sustain if you were to be wrong, which is a real probability. And the same goes for revenge trading, we are trying to make up for previous losses by trading bigger and bigger.

Wisdom number thing, wait for confirmation. So when you're planning a trip, be careful not to present the news especially for breakouts and what's wait for confirmation that the markets indeed doing what Do you anticipate it to either via price rejection and looking at those candle tails or some of your other indicators and this is especially true when you know as I mentioned we trade your breakouts. As often times the market will appear to be breaking out only to pull back hard and reverse direction and this is called a bootstrap if you are long and the bear trap for shorts for shorts and bear traps oftentimes followed by our school the short squeeze and that is a strict Australia's on are forced to cover the shorts in you have to buy back those positions and that just pushes the price up even more. So only trade records of the successful retest of the breakout label and place a stop order at the high of the first breakout attempt.

They are really moved in one false move out of a pattern over it might happen as a sign guys for the lighting right then and yet wrong. wisdom in living, trade price action. Now the market can and will seem endless. At times, it's often been said that the base reason for the market return is from nine. So just as you wouldn't swim against the current, you certainly wouldn't want to try it again with the price action basis not to fight it and to simply go along with the price. And this is what's very important not to predict.

But while we act, traders should be completely unbiased, and it doesn't say that you should rather lose your opinion than your money. If you're gonna remember, I have my 20 simple moving average from a 21 exponential moving average setup that I use, and that is actually very useful to just stay with the price action. Wisdom number 12. Don't trade with your emotions. Now. As humans, we are emotional beings.

So that is easier said than done. But when trading is important to understand you're participating participating in a numbers game and you have to accept the fact that you do not have control of the outcome. trade, net losses or normal and to be expected. Manage your emotions in your stress levels by taking a break from trading if it's necessary. And most important never ever beat yourself up because of the market not going away. And don't look back at the last trend except learn from it.

Remember that profitable trading is a long term game dippin small, consistent returns, and not if but when you are expensing a long streak of losing trades, rolling reduce your exposure and or trade less until you gain confidence. Remember to never revenge try to make up for those losses and which means longer term and limit your risk and stay calm. dreading wisdom number 15. stay humble, be humble. Now there are two types of traders There's our ham mumble and those who will be humbled or skinny, professional or integrated that ham has been trading for some time and they will be able to tell you this says that at some point if Richard Wolffe bye bye have significant winning streaks as well as losing streaks. And it is during these winning streaks that traders oftentimes become overconfident certainly think they deserve to win and they increase the exposure, a lot of them all start to over trade.

It's usually at this point that they become sloppy into trading and as quickly as the market keeps the more gun and both take away, so the market as a whole variety of ways to serve a decent slice of humble pie. Wisdom number 14. Never Chase. So markets are in a constant state of uncertainty and flux, and it tends to overreact in the mean revert. This is evident in the way price moves and what looks like waves, as we've discussed already in the schools, and once a trade opportunity has been identified wait for the price to come back to you instead of chasing after it. So be patient and set your stop orders and wait for price to come to you.

Try not to enter tries to fall away from the 20 is an A or the center of your body Then that's what I use. As that might mean that process loop it's way to mean revert. Although when you're on a strong trend, price not stay away from that moving average for quite some time. But again, that means you probably missed a trade and it's better to maybe get on board on a pullback, and remit is no place for FOMO fear of missing out dread. Wisdom number 50. Trade like a poker player.

Trading is like poker, you played a strong hands and you fold the weekends. And remember that the market will always hold your wisdom number 16. always remain patient. Never Never settle for less quality trading signals. Stick to your plan, stick to your strategy. And sometimes the most profitable thing you can do is just doing nothing. Remember that to be successful trading is all about identifying and trading only the heart probability setups Wisdom number 17 cut out the noise.

So as part of a training strategy, you should identify the timeframe best suited to your style of trading. So if for example, you are trading on the one hour time frame, then don't look at smaller timeframes. This will only serve to confuse you. So stick to making decisions based on closing prices on your timeframe and avoid analysis paralysis by looking at small timeframes like the one minute job for instance. It's crazy world wisdom number 18. market doesn't listen to experts. Luckily.

So it would seem that these days everyone is an expert in trading. And I'd like to remind you that you should be very careful when listening to express Express as the market doesn't care about their opinion or anyone else's. And there's nobody that can predict what the market is going to do. Stick with the trend and allow the market to form your opinion and fall in imposing your opinion on the market. listing a few expensive things Traders, Eagle. In other words, you know, you're you're wrong.

So what's the point of using a stop loss as will cost you fear exiting this team taking your profits off the table too soon not sticking to your agreed upon risk reward ratio as fee agreed, you are trying to beat your opening and larger exposure trades trying to make more money but again, you're just risking your, your your account when you're doing that bias. So in other words, you are again imposing your opinion on the market because you feel that the market should go up and it goes down and you end up holding on to losers for way too long. stubbornness, refusing to admit you are wrong. And then of course revenge as I mentioned, trying to win back your losses by trading bigger or more. Not going to work. Final wisdom I'd like to shoot into some value Do things for trainees, and patients, letting price come to you waiting for only there's high probability setups, risk management, having a proper plan in place, managing your risk, only risking that 2% of your capital per trade, and being disciplined in execution of your trades, your approach and your strategy, perseverance, not giving up, sticking to your system constantly improving, and you're equipping yourself as best as possible.

And this is one of the goals of this course. And it's equip you so persevere and he will succeed. And then finally, passion, if your passion for trading if your passion for financial markets to not give up and pursue that dream. So it's at this point where I'd like to share with you my personal approach, and I've divided this into into various slides. The first one is How identify sedatives. So it's a weekend and I will open up the charts of all the major markets that's on my watch list.

So basically your broker, you probably have watchlist available to you that is pre populated or that you populate yourself. And on my watch list, for instance, are all the major forex space, Euro USD, Euro GBP us the yen, for instance, and also some of the indices like the Dow dex, and also trade the Aussie South African index here locally. And the reason I choose does major pairs and indices is due to the lower spreads. The next step is start. Start looking at one of these instances. For instance, let's use the Dow sort of stalled on a monthly timeframe, and then I'll move down to the four hour timeframe at workshops are funded monthly, go to weekly daily and then move down to the four hour time frame.

So over the weekend there's no need to look at Tom translating for our, our thing as I go through these timeframes are at all the major support and resistance levels as I've shown you in the schools and also show you now the jobs and in the final step over the weekend is that identifying walk potential setups based on patterns and chemical breakouts for instance, we are see the train is about the tray to change orders or any buttons that might come into play in the coming week and then I set alerts at or near the classes Major support or resistance level and that is because that is where the breakouts or reverses tend to occur during the week, certain depending on the status and the lives That identified over the weekend, they will now probably be a couple of markets that we'll be zooming in on or that I will be monitoring on that four hour time frame, looking for the breakouts at those major levels or out of those identified structures.

And this means that I only have to theoretically look at these charts once every four hours waiting for those setups The next day, so that is if I noticed a price moving closer to a major support or resistance area that has major labels, I will start looking at the following. Are there any other versions present? I'll show you how to do that. What are the candles Tell me of the price rejection? And what is price doing? Is it strong candles, breaking out reversing was price selling is price being rejected?

Waste a bunch of what is the Punisher doing with price in relation to the Bollinger and what is he came up with me so using all those trading tools that we have discussed and trying to get the market to inform My opinion, I might even use the pitchfork or Fibonacci tools to help identify potential breakout and or reversal areas. So if necessary, and only if necessary, I will drop to a one hour just to maybe get a clearer picture of where I'd like to enter away the breakup is possibly occurring. So after identifying these potential symptoms, and I think I've entered your having identified as potential breakout reversals, the first step is now to identify the area where I want to place my stockholders and I usually use the one hour time frame for this and that's just because I get a better entry. So if the market stall, maybe moving about trying to make up its mind, and you get a better idea of what is happening on that one hour time frame, over my analysis is based on the fourth.

So if the breakout or reverse has really occurred, I look to place my stop orders at the retest it Yeah, so that's the way the breakout occurs from. And if the breakout reversal is not yet occurred, I would usually wait for confirmation and look to place my stop orders around the last fractal. So I'd wait for that breakout to first occur and then place a stop order, either like last fractal that occurred in that level or that area. So the next step is Yeah, so that's the most important for a shield bigness discussed now, and that is skyrocketing calculating the potential risk to reward using a combination of a market price fury, as well as looking at the next major level of resistance. If you're going long or support you again should do identify that price target. Remember, the market will move from one major label to the next.

The next thing is to look at the fractals and identify a safe area for my stop loss. So you do not want to place your stop was too close to you. entry price as maybe as a small pullback or some variability will cause you to be stopped out. So I always try to give get a nice place, nice area to place my stop loss where I feel it's safe and and that's why you should place below a fractal swing low for Long's was in a string or some half full swing low for competitions and as soon after short positions. In Step three, I consult my checklist. Now, and some of the things my trick is is that as you already know, am I training with the train is my risk reward ratio greater than one and if it is, is the max the maximum loss smaller than 2% of my total account, and if so, I set my stop would is calculating my exposure and that is your position size based on the maximum loss We must stop we must also study so our recalculate my exposure, I have some exposure based on that loss to ensure a maximum of 2% of my account if I were to be stopped out and managing the trend.

So, what's the stop order is triggered and I'm in the trade. All I need to do is keep an eye out for any major news events that might have an adverse effect on my open trade. I actually used to it as I mentioned for that and I just found a couple of major financial news services. So use Twitter as a very handy for that. And again, you can relax because you can keep in mind and this is what I do. I'm quite calm wants to trace into it.

Because I know that I should usually have a fixed stop loss that is limiting my risk and we are price to reach my target the trade will medicalized banking my profits stay free. If keeping up My trade and analysis the prices news well into profit. Having formed a nice swing higher than I might want to move my stop loss to break even would be just below the last fractal for a long position or above it for a short position. And next day, I patiently wait for the outcome. And finally, once the trade is computed or cleansed, I would love to trade in my trading journal remarking which market are traded, which timeframe, I looked at, what was the setup, the risk reward and any news events that might have occurred as well as any other comments at all. So that concludes my personal approach.

And at this stage, I'd actually like to show you how I do this. Using trading view I have a different different platform that I actually use based on my broker, but I'm going to show you how I do this on the charts and just get a chart Here we go. again back to our Euro USD. I'm actually currently in a trade for your USD at this stage. And but I'll show you now how that happens. ledgers quickly go to the one month time frame.

So as I mentioned every weekend at start by if you look on tradingview you'd see as a few few This is a watch just to some extent. So you see us a forex major forex market CFM here USD market, it is USD and in market GBP USD GBP JPY. That's gpn. Australian is the you also have some of the fixed stock markets. indexes is your s&p 500 dow. As you can see, dex is all the major markets.

So identify the ones I like and then I'll go over these charts. Using the method as an extension now so let's just use the GB key as an image is that as a forex currency, so forex we got here we are, so I'm on a monthly timeframe. So I'm going to start by drawing my horizontal support resistance. I like to start with different colors for different timeframes. So pink would be my monthly conference. As you can see, we training round about this wrench and no point in doing too many lines appear.

At this stage, I think I'll draw some resistance of the agency out this actually previous previous vote immediately actually see we have identified a mess of head and shoulders that is formed on this ground cpvc This ensures we had a break out and we are now seeing a retest of that breakout area. So that does not bode well at all actually for all the time found anyway and adding those it was it's not the area maybe they that we can go that far anyways but that's so important. Okay, I'm going to keep the tape for for now. Okay? There's lots of more labels up here but I think required some way away from that so I'm not just gonna throw that onto a weekly I changed my father just fine tuning those labels, it's infection against didn't even just add back in and all I'm doing is I'm just Trying to identify this area of his resistance and see the candles tells us rejected becomes support and again became support.

Also see a line over here the I see something that resembles a double top of the day. Lots of lines of supply so you can see if I can make those two, almost again getting that area we found support for probably also have to do that moving to daily. So at this time, I think you've noticed that you're really fit Gary identified most of those evils, a few new ones would maybe pop out. Immediately I can see this UFC for the biggest resistance now support. In other words, if price were to move lower down, that could become a way of support resistance. I see lots of details every day, I think actually before joining that large ensemble that went down to around this, you can see Yes, so maybe, maybe maybe maybe a small area resistance.

So this stage, I think price is at least going to touch that Blue Label over here, perhaps even that one and then it's likely to maybe see a pullback, but let's go to four. Okay, so for Our game looks much different colors and light blue okay is an area I think we do have most of the areas here is going to be cease quick tip to support me at this point I'm actually going to add my ichimoku indicator cloud so you can see on the for our how we were actually quite strong downtrend and in our recently broke out of that you can moko cloud. You can see that Chico span and the lagging cousin prices still below the cloud, meaning that we must still see a fool that maybe even the cloud area Via and talking about divergences. Let's look at our RSI. As I like to do I like to eat discuss the noise slightly.

Sorry for being required. I'm just sitting here. Okay. And yeah, I actually like to do too cheap here. And I'm also going to add you can use them the MACD indicator for divergence indicator or names. But for this instance let's use the MACD it's actually more popular.

And now yes what I'm looking for in the coming weeks, so immediately thinking back To our structures, you can really see what I'm seeing here is this corrective wave forming. And as we know that eating to break down so that is a Bear Flag. These are fact bowls, and that would be a flat. It's quite extended. So at this stage would be unlikely to maybe see a breakdown. I don't think we will go past this level of support at the stage.

But the areas that I will be looking at is resistance around this area. As you can see, this area became support and support and this average resistance in this sport, and I was going inside the cloud, the CIO. Let's see if we can see some divergence tops leading up MACD weaving ups and not really diverging fee and you know even on the RSI not anything really stupid to clear about that. So not facing any divergence so we must still see that that push upwards to that blue line and when I do this I just also sit and burden even on you can see that on trading you can set alerts via I added a label so you can add your alerts at certain levels and in previous training the room for me it is in any action happening round about labels if you identified let's go to one our CP See whether vergence may be clear.

So the one hour time frame you can see we made a new top and there's some divisions actually on the MACD and we did see we actually did come down we did correct of that. Currently, we did make a new low with a D was the previous low around that area and divergence D So I think the areas to look out for is maybe a bit higher up. I just like to add oranger indie just getting a marketing for my opinion. Okay, I don't think off the bottom of the boundaries, seeing some price rejection rate. So nothing really happening at this stage and but definitely a few levels to watch The stable sort of breakdown of this structure with signify versatile with this this label support where as price reaching his booty will pay for the signal as possible short rate for me so if we reach this blue label, so you can add us a day, you can definitely expect the price to maybe move down from Delhi or if we operate in three years we can also go short possibly to this area yet.

And so I go through all my mock ups you could go to USD for instance. This is the one I'm actually currently in a trade on this market. And as you will see already identified all my major support resistance on the monthly to weekly daily As can see on the daily, we are way below cloud hugging the bottoms of Ballinger strong downtrend. Looking for shorts in such strong downtrend obviously and I have identified this area as you can see this red line, the previous area of previous period of resistance and that I believe has now become support as you can see they but once it was broken, it now again becomes resistance. So, there was an area I was was looking at, and it was to shoot and if you go to four hour timeframes that area I use for my analysis to close the body injure stage again.

So, you can see as we need, I actually drew this Pitchfork drawn for you again, to share. I did it The shift to make this that Hi, that love that one. So it didn't last swing low at first Oh, really that high. And that left. As you can see this is it. So I drew that Pitchfork and I immediately were able to project and see we will intersect with this area of average resistance.

And where it was coincided with even support, you can see how it actually projects and formed that area of support every day. And inside of that level there, you can map the cloud. So, I actually went lower to the one hour time frame and I believe this We're also going to find some divergence happening as you can see, making a lower high on the RSI whereas we were making a higher high and I entered my trade show you show you the trades from others. There we go. So you can see that is my opening 1.18229. So our wind shorted out 18229 so round about that label.

So I think it was put on the metro member, but it was round about when I saw the price action rejecting this label that are insured. I have a target of this red line over here. You can see the red line at the end. So I'm just gonna close that door. With this one target is with Tasha via. Here we go.

That is my target extended target. But obviously I'll monitor price to see what is happening. You can use the HTML code retracement to see way possible areas of support might come in you can see I identify this every year as possible support because of this diagonal support at the bottom. Yeah, making that level better. And in as well as that today 20 foot energy level and so you're roundabout the asking is it areas like profits off the table, but I wouldn't want it to at this stage, so far, so good. And I've actually added on to my short position So these are open trades and as you can see I've opened a 123 and then the one at 630 today and the second one was opened at 18155 level zoom in to get a clearer picture.

So it I mean short again, I went short that one one it feel to set was roundabout very when short the first with my first trade and the second one was at 181555. So it was round about here when I saw that rejection from the cloud. As you guys can see, the price came down, came back up got rejected from a cloud, in short, in the first stop loss to really set a break even as you can see, we've made successive new, lower highs that stop loss for the first year break even as a second short read as stoploss with the same level of the fish trade, that's just how I manage trade. And I do this for every chart of all the major markets and let me try again, very simple trade from one level to another us using some of these tools that ease sheet and the balance sheet on the cost to identify my trades and targets.

So definitely, it's I believe, module 12. Thank you very much. It's been a pleasure. Module 13 will cover some automated trading and showing you guys what I do. And of course, automated trading, what it is and some of the benefits of it. Thank you very much and I really hope that you can apply the lessons that you've learned in the schools.