Transcript for:
Trading Without Stress: A Simple Strategy

I made a fortune trading this simple strategy would you like to trade without stress would you like to make a fortune trading a simple strategy instead of a major complicated outof whack strange strategy I've been using this strategy for 30 years it's worked for me it'll probably work for you it's just my idea and I'm trying to get it out there so that people can understand that trading is not straightforward that you can't just take 100 bucks and turn it into a million bucks in a week that this takes a little bit of effort and a little bit of work so guys has come into the office with me today and let me go and show you how this simple strategy works today I'm going to show you in the charting how my strategy Works how it goes and what's the best way to trade it and that sort of thing I normally show everybody this in just about every video I think it it never gets old does it you've got to figure it out you got to figure it out for yourself but it's not in the system it's all about managing your risk it's all in the risk and it's all in the the fear the fear that's built into us and how we struggle to trade and how we struggle to get those emotions sorted out it's coffee with Rob so we're going to have some coffee big schlub big cup of coffee man it's all about understanding how to manage that risk how to look after yourself and not take a big loss is what people tend to do when they're trading is when they're taking a loss they tend to add to the trade and they tend to try and hedge it down or they try to get back to a zero or why don't you believe that might work for you it's it's the big one that's going to take you out you've got to take a small loss get out and add to your winners add more to your winning trades not your losing trade that's where you make the mistake people are telling you to hedge your bets and that's a mistake because the minute you do that and a trade doesn't recover it just gets worse and worse and worse and worse and while you're doing that and this is something that people don't think about the more you do that the more money that you've got tied up in that trade you just leave money tied up into this big massive losing trade and you use that money in a more profitable trade that's another issue that people don't look at all this money is tied up in this losing trade if it's gear trading same thing taking that gearing away from you it's very difficult to get that gearing back if you lose on that bigger scale it's going to hurt you it's going to take you a long time to recover from it when you see it going to a loss and it goes to your stop loss let your stop loss take it out and move on to the next trade move on don't get stuck behind those trades as you guys know a trade support resistance and that's my system because it makes it easy to manage your risk trading is risky guys 80% of Traders lose money and if you don't like losing money and you don't like Risk you probably shouldn't be trading the thing is what people don't understand is that if you take a trade no matter what your system now what what you doing or what if you trade because the moon's full if you trade because the stars are all aligned on the right and you take this trade because you're assured that this is going to work what you don't understand is it's a 50/50 chance there's a 50% chance you're going to lose there's a 50% chance she going to win and that's how training Works doesn't matter what your system is the reason for that is there's always a winning buyer there's always a willing seller no matter what you do there's a willing buyer and a willing seller how can these two both believe that the Market's going to be on their side it's going to be in their favor you are someone selling you are someone buying and they both believe they're a winner they both believe they're doing their right think how can that be because they both have a system that gives them an edge and that's what it's all about guys it's all about understanding that you're up against another Trader somewhere or some other investor or something to that kind of nature that's going to affect your trading they want your money and you want their money and it's as simple as that so you're buying into something which is either going to go up or it's going to go down and it's a 50/50 child so it goes up or goes down the once you understand that and you can manage your risk you'll understand that if it's taking out the stop loss you got it wrong and if it's winning you got it right add to that trade because you got it right and it's probably going in that direction the thing is the Fear Factor is a big issue when we have fear it stops us from taking those traits let's talk about that a little bit more after we've looked at the charts can you make a fortune trading this simple strategy yes you can it's not that difficult let's choose a product I mean we haven't looked at the us500 for a while let's go and have a look at that see what it looks like just choose any old product o tricky tricky it's on its way up look at that take it to the day that's what we always do take it to the day and let's just go and have a look at what we've got here on the day chart because it's really really looking quite positive man this is a lamp pole of note okay so we're going to use Trend here because it's really difficult to use our normal support and resistance systems we do have a new support in there and we'll just clean that up in a moment but this is really is quite a quite a trend running along this area here yep and I wonder if we should just move that out a bit is it possible to do that ah the stuff is rubbish ready annoying stuff anyway ah let me remove that and just start again guys start again cuz it doesn't want to let me work all right so we'll leave it at that leave it at that I can't see another support talk so this isn't maybe the greatest of Trades but we are going to go back to the fo and we're going to go and have a look at what we have here let's see what we've got on the us500 support resistance this one can come that we don't need this one anymore because it's gone past it asn't was broken through what was resistance and this is now support but what you can see is here's some areas where you can actually trade look at that that's an area that you could trade into if it comes back down so if it comes back down to there it's kind of a supply area and you can you can trade out of there that would be useful that's a useful trade area we've got this huge Trend going up here which we could look at there's a small small Trend within the 4H hour that you could look at which will probably come out in here yeah the us500 support and resistance there's not much to trade at the moment you've got to wait for the trades to come to you if it comes down to this major resistance here that'll probably be a good trade which is at about 5510 255 so around 55 is a our number look for our numbers guys so I would wait for it to come down to this 5,500 and maybe trade off of that right rather than trying to trade off of these higher levels up here guys there's no resistance it's just it's cleaning going up don't even don't even go there let's have a look at a popular Euro US dollar see what that looks like we hav't looked at that for a while you when lost I trade that w b some okay there we go let's have a look here take this Arrow out of here as well we don't need that and we are in this sort of level so we can look at that but where is your daily level on this so we're going to have to go to the day chop and if you go to the day chart you can see ah there's your main level down here there's a big level at the bottom so that is your main level all right so now you know that that's there by the way guys when you're taking these levels take it off the line chart because you get the closing prices right always look for the closing prices that's where your your best scenario is back to the candles here of the candles we can let's just see let's go back to the 4our cuz we're trading on the 4our here to make it easier for you guys to see what what's going on so now there is your major resistance and there's your major support this is more like a 4H hour support that we've drawn in here but you could also look at there's another there's a gap here there's a gap that it's going to fill he now it's filled in that filled that Gap long ago going up right so not much to trade on this one either you can look at the sort of trend here the carry on going long to the top but I would wait till it gets to the resistance of the top here and then just take a short out of the there and that's where your trade will be let's have a look at something else your briish pound let's see if there's any trades in there and here's a trade okay so this one what you're looking at is you've got your major support you've got your major resistance and as you know already we get them from the daily levels what you're waiting for here is for a green candle to come out of your support and when the green candle comes out of your support you're going to take this trade this trade if you took a trade from the green candle here it would have gone long but sometimes when you wait for the green candle it comes back to retest and you get nervous and then you start freaking out no need to do that comes back to retest that's fine I normally take it on the first green closed green candle out of the resistance resource support because sometimes it doesn't come back to retest and then you lose out on the trade anyway and I just put my stop loss below that area and then I forget about it I know I've paid my my money for that trade if it comes to stop- loss the trade is invalidated I wouldn't take that trade anyway I'd probably go the other way if if it comes back little retest will come back and retest and it will go whether you're Turing on a 5 minute whether you're training on a 4 Hour whether you're training on a 1 hour a day or weekly it doesn't matter it's just going to take longer in the 4-Hour chart to go through this retest circuit and then go up than it would all say 5 minutes for example or a day it would take longer all you got to do is take the trade when you've got a confirmed green ball coming out of that area and then just leave it and and and if it is your stop loss then the TR in that simple as that don't get complicated don't look for the moon to turn white or the Stars to be aligned or some ridiculous system that says that must touch this seven times before you take along or whatever the case no just guys green bar out of the support go Red Bar out of the resistance go it might come back test it and go doesn't matter because as long as your stop loss is over there it's not going to matter anyway you do have your money tied up in the trade but you're confident the trade's going to work and that's why you took the trade in the first place you took the trade because you believed that that was a good trade look at this you see here's a good example the Red Bar comes out closes now you wait for a retest and wow the retest is only the air somewhere there's no point in waiting for that you could have got into that sh and taken all of that all the way down you probably would have gone out somewhere around here Maybe not maybe you would have waited till it gets even further but that's your trade nice big straight down that would have been a good short why would you wait for it to retest there's your retest the nas short again but now you're hitting a major support level which has been hit a number of times now this is how you'd look at support levels or resistance levels if you look left you see it's hit it hit it hit it hit it hit it hit it hit it it's kept on hitting this support level and every single time that it hits this support level down here what does it do it goes out it goes out it goes out maybe not all the way maybe not far but it bounces and it goes up so what do you think might happen next time what do you think do you think it's going to break through or will it BS there's a good chance there's a more than 50% chance in fact there's probably a 70% chance that it'll hit support and go back out the danger of this one is it has gone back and done a retest here that could cost you it could be problematic but I would say if you get a nice green bar coming out of the support level take the long trade the long trade will take you up and you can just add to it if it gets to the middle here just add to it and let Let It Go All the Way to the Top here and then take your profit simple as that not complicated don't over complicated manage your risk stop loss that's it put your stop loss below here it's not really a stop loss guys it's an invalidation if the price comes down to this level this is not a trade that you would take on the day just step back and say if I was going to get into this trade now would I take this trade no I would wait for it to retest and go short why would I go long here in other words take your stop moss and get out because you're in the wrong trade then you've made a mistake and it's simple it's a 50/50 game whereas if it goes long and it works you've made quite a decent sized long profit so work out how much this tray is going to cost you work on that work on that basis and then if it doesn't cost you anything and it makes your profit you'll be elated you'll be excited so that's the shots and let's go on with fear how does Fear affect your trading and it affects it more than you can imagine we've got an inol fear and inol problem within our systems that affects us no matter what we do it's it Cal the dawn of time we have a fear of that losing emotion that losing emotion is one of the strongest emotions that you can have if you start losing you start falling apart and making terrible mistakes but it's a bit like when you start winning you get that ation you get that high that like I'm winning I can't like nothing can touch me now nothing can touch me two or three trades later guess what it touches you and it really hurts you and that emotion can be worse than the initial losing emotion so if you start to take a loss you have to blank out you have to learn to say that's a loss that's my stop loss think of it as buying a trade think of it as if you're investing in something this trade is going to cost me $50 that's it right I paid my 50 bucks if it loses that's going to cost me 50 bucks but if it wins I'm going to make 100 150 bucks so I'm going to win that's great but if you lose the 50 you paid the 50 so you've ritten that 50 bucks off don't make it 100 don't make it 150 now once you've already accepted that you're going to lose the 50 don't turn it into 100 don't add another 50 to the loss just take the 50 bu loss move on to the next trade whatever the next trade will be if your trade is in stop loss it's most probably invalidated it's an invalidated trade ask yourself this question when you want to add the other 50 bucks to your stop loss ask yourself this question if I looked at this trade right now from start and I wasn't in this trade would I take this trade if the answer is no if there's a big no I wouldn't touch this trade right now then don't add to it take the stop L if the answer is yes if you look at the trade and it's showing you something else if it's showing you that you could actually take a good trade here and it's actually coming to a point where you should actually be trading it then you can have a look at okay let's look at it as a new trade we've lost that 50 bucks we're going to invest another 50 bucks into this trade and I'm going to look at a new option for taking that trade you can actually look at trades that way as far as the system goes guys don't over complicated don't listen to all our gas telling you to you're going to make a million bucks over 100 bucks cuz that's not going to happen try and keep it simple keep it easy keep it close to the heart don't get imers you're going to take your emotions out of your trading if you want to be successful it's the only way that you're going to get it right and I'm going to keep on hoping on that I'm going to keep on pushing on the videos I'm going to keep on going for it guys over and over and over again cuz it drives me nuts uh so many people out there tell you you can make so much money out of nothing and you can't look these guys give you good systems you can learn from them you can when they show you in a video like I do how to trade you can you can use those systems to trade just don't believe that you're going to make million out of it and understand that it's all in the head and it's all in the psychology and you'll probably get there in the end so with that guys it's Friday it's a wonderful day it's time to enjoy the weekend and get on with it I am looking at adding another video to the sequence on the weekends I've discussed it in my previous videos going and have a look at maybe looking at trades few we'll see how that goes and if we get into that or not thanks for watching till the next video guys cheers thanks bye