My "Closing Bull" is back – A weekly review if the financial market news
Posted by How do I trade stocks? on Friday, August 24, 2018
There is no obvious way to make money from trading, which is why most traders lose money, it takes time and study to build systems with an edge. Trading is definitely not as easy as some vendors and educators would have you believe. I believe so many start trading in the belief that they will have fantastic riches with very little effort. Sadly, they will be in the 95% that lose and give up. Most accounts have been blown because people lack the discipline and patience to follow a trading plan, if they even have one!
Trading is contrarian to our emotional decision making. Basically, that which is EASY to do is almost certainly the WRONG thing to do. It is easy to take your profits when you have a winner and that is why it is WRONG. 95% of traders take profits way too soon because it is the EASY thing to do and because of this they never generate the handful of big winners that are required to pay for any and all the small losing trades. 95% of traders lose money at the end of the year because they do the EASY thing. If we want to be part of the 5% that makes money, then we have to do the HARD THING. This is what it takes to be successful.
Becoming an expert in trading patience does not happen overnight. It takes time and practice. I often feel anxious when I run a course and end up with a whole new batch of people following me. The reason is simple, I take on some of the emotional turmoil that comes with any new trader or follower of my site. I want them to win with me immediately and never look back. But, losses are also part of the game, and while they are always small in comparison to the wins, they can come consecutively too.
Those that have been with me for years I do not worry so much about. Sure, all of us, veterans or not get excited when the system is killing it as it has been for most of this year, but we also appreciate that it won’t win all the time. And, lets face it, emotionally it is easier to be losing previous profits than it is to lose any of your original starting balance. And all people that are new to my site start somewhere.
So, anyway, as I watch the current trade finally lift into profit after days of patiently waiting for it to do so, it fills me with a sense of relief for those that are new to this in particular. Hang in there, it takes patience to be successful here.
Now bring on the bulls!
As the sun shines in beautiful Southern Ontario reaching temperatures into the 30’s Celcius, the market has been hotting up too. It’s not closed yet, but at the time of this writing the current Nasdaq Futures trade is turning into another monster. The chart above represents daily candles and shows the current trade entry 4 trading days ago. The trade is currently up $4,500 per contract in the Nasdaq E-mini futures (22% return in your entire bank in one trade based on our conservative risk controls). I am delighted to say the system grabbed another bottom as it has done so many times before.
If you are in it, or even the QLD ETF system, congratulations, this is setting up for a move to a new all time high in the Nasdaq and likely the S&P 500 too. So let’s see where it goes and enjoy the ride, the stop will be moving higher in the morning, so watch out for my next text alert.
Bring on the bulls!
The Nasdaq Futures held the 7000 mark again. It has been bouncing of that area for a number of days now. I was surprised by the ferocity of the sell-off on Tuesday. The market was set to close at 1pm EST and it sold-off right into it. While I wasn’t expecting it, that support area held again and looks to me like that will be the last time we visit it for a while. My expectation is a move higher again from here, with tomorrow being key. The Nasdaq Futures have to take out the 7150 point to solidify my interpretation, and it closed at 7125.75, so not too far away.
This latest trade like any other requires patience. In the game of swing trading, where you are in for bigger wins in terms of multi-day/multi-week trends, you must have patience. Recently at the course I held in June I talked about the phenomenon of almost always being in the red of the first day I enter a trade. It’s almost universal, yet the ultimate outcome is always unknown….back to patience…
Bottom line, trading is not easy, never will be and even thought this latest trade is now back in the black and making money, the important thing for me to remember is that this is a game of math. I know there will be losses, but I know also that MOST of the time there will be gains, and the gains will be on average 3x the size of any losses, those are pretty good odds in the long run…even the short run.
So bring on the bulls!
Some spots have opened up due to non-confirmations, please follow the link if you would like to register for next weekends course (Sat June 23rd and Sun 24th at the Old Mill Toronto Hotel). The course is FREE and I won’t be selling anything at it either. https://howdoitradestocks.com/training/profit-power-course/
What you do get is the actual trading system itself, and all the training you need on how to use it, so if that’s something of interest, please register before it’s full again.
Have a great weekend!
Welcome to this week's "closing bull", a roundup of market news. Also here is a link to my upcoming free weekend course in Toronto June 23/24. Sign up if you can make it, we have made a few more spots available: https://howdoitradestocks.com/training/profit-power-course/
Posted by How do I trade stocks? on Friday, June 15, 2018
So, it finally looks like the QLD will be closing above $86 per share as I had mentioned was the higher probability in my last post. I would have loved to get in on it, but because it never waved down enough and went sideways for 2.5 weeks it invalidated any potential breakout entry. I needed it to go lower than 82. But them’s the breaks, so now I have to just sit on my hands and see what it does next.
Hopefully, this is not the beginning of a huge trend up and it will swing down soon to allow me a new entry. In the meantime, cash is a position and my expectation is for some selling to come soon. Most months have been profitable so far this year, and I expect June to be the same, I will be back in again soon enough.
I will not be on Facebook live again this week, with family visiting from Scotland it’s just not possible, however, normal service of my “Closing Bull” will resume next Friday.
Have a great weekend,
2018 Has been a great year so far, 10 trades with an 80% win rate! Attached are all my trades including slippage with my exact fills. I also did some math on what I have pulled out of the market per share on the QLD and it’s $32.52! This does not take into account the compounding effect of winner after winner. And when you consider that the QLD is only up just over $8 per share for the year, I am pretty happy with that performance.
These are real trades, there is no hiding place for me, I shared each and every one of these trades before they were filled.
Long may it continue…and I certainly expect it to.
P.s The Nasdaq Futures system has had an equally if not even better year so far, the systems works so well on both instruments.