Saturday, 13 June 2009

The Tale Of Two Trades and 1 Chart!

After sitting down with my head trader Eamon Phillips, it became apparent that many people were unaware of the trading cycle. This occurs due to lack of clarity or false hope being projected by other trading companies. Below is an article written by my head trader and professional coach from Veritas Traders!

At VERITAS traders we believe it takes a few years at least to develop a successful trading method. My trading method has been and to some essence still being developed. No trading plan can be successful without gaining your own experience.

It would be far too easy for me to talk about past trades that I have taken, however I am privileged that I am able to share my trading live with our clients in our live trading room on a daily basis. This makes trading a little bit more rewarding.

I am able to teach others how to trade so they can develop their own strategies. However the real benefit is they do this in real market conditions and they gain the valuable, which in turn shortens their learning curve.

First trade of the day.
Entry: 4548 Long
Exit: 4536

Figure 1 First DAX trade stopped out for -12pts

The first trade was a short which cost me 12pts. Why? Because I did not have one of my charts set to my correct time frame.

This occurred whilst our clients were trading with me in our live trading room and we were all stopped out. I reviewed my trade to see what had happened.

  • Did I follow my plan?
  • What my set up right?
  • Was I being emotional because I had lost a trade?
You see all these questions and few more are in my trading plan. Not just the entering and exiting a trade.

What had transpired was I Had one of my charts set to the wrong time frame. I am not sure how it happened but it did. On the 16 April 2009 I edited my trading plan to ensure this does not happen again

Second trade of the day.
Date: Apr 16, 2009
Time: 9:12 AM
Entry : 4339 long
Exit : 4600
Time: 13:45 AM

As you can see it was a big winning trade. My entry was a ‘Bull flag’ setup and as you can see the trade was more profitable.
Key points to a successful trading plan.

· Treat Trading as a business
· Make sure you have the correct hardware and software.
· Know what you are trading.
· This means understand and focus on your chosen market like a sniper. This can

only be achieved by actively watching and trading it for months.
· Rules for trading
· Rules for not trading
· Entry Rules
· Exit rules
· Have rules to know when to walkway after a winning or losing day But mostly

importantly have a trading method that allows…

You to constantly re-evaluate your trading so you stay on top of your game
I hope this article will give you a few tips to make your trading profitable.

Eamon Phillips

If you would like to know a bit more about joining us on a our live trading day. Where you get full interaction and get to see live trades making money! Please place your details in the TradeToWin box above!

Carl Hutchings
Trader and Fund Manager

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