Road to Rich

Webinar Tuesday 16th February 2016

Trading is a scalable business

Reading List

Alpesh Patel – “The Mind of a Trader”

Alpesh Patel – “The Internet Trading Course”

Be right 93% (100%) of the time: “Never lose your losing trades”

15.30 – 90% of private investors lose. Average losses are higher than average gains.

Look at 6-8 instruments at a time. (Any more are too many)

To maximise your trading opportunities:

1. Diversify instruments
2. Diversify time-frames
3. Missed this bit

Trade outside London hours – markets are less volatile

re. 1 –

re. 2 – Never go with a broker regulated out of Cyprus

re. 3 –

re. 4 –

re. 5 –

re. 6 –

Trading off tablet apps is very easy. Brokers have apps and you can use them anywhere.

No one retires from making money

Capture big moves and keep losses small (80/20 rule)

There is not a single successful hedge fund manager in the workd who doesn’t make losses.

• Winners add to winners
• Losers add to losers

Every essential profitable trade has 6 elements – SELMMA

1. 1. Stop losses – Avoid stop losses
   2. Entry
   3. Limit Orders: A or S
   4. Mind over Market
   5. Money
   6. Add to Profits (Additional Positions)

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1. Stop Loss

• Volatility-based stop losses
• Volatility-based money-management

If you put your stop loss further away, you reduce ?? 49’00”

The point of a stop loss is so you know that your strategy is not working.

Average True Range

2. Entry

There must be a logical reason for entering. Does the reasoning behind the strategy make sense?

(Machine back-testing is a scam – it is only a trading tool)

Observe: Test by watching and doing not back-testing

Automate

3. Limit Orders: A or S

4. Mind over Market

Detachment – Unemotional – Stress-free – Disciplined

5. Add to Profits

NH+QO+TP

New Highs – quickly get out 1.1.40

NP – New Positions = move stop up

8 Things … ?

1. Have a strategy that works
2. A simple clear strategy
3. Stop loss strategy …
4. Captures big moves and keeps losses small (80/20)
5. Can trade easily (eg. on app)
6. Can trade ANYWHERE and ANYTIME
7. Clear Roadmap to Rich
8. Suits you

Price can do ONE of four things (1.05.45)

1. Up Up
2. Up Down (professionals get out)
3. Down Up
4. Down Down

The Road to Rich

An FX Business Plan

1. Set your risk capital
2. Set your Max Loss (as a professional hedge fund manager per rade at 1%). For a private trader, make it the smallest you can so you lose without psychological effects; begin with £1, £5 or £10 if that is what you are comfortable with.
   Brokers who allow 7p per PIP are decent brokers allowing you to train

Find a strategy that allows 100 signals per day / week / month

Day trader: 100 trades per week x 50 weeks = £750,000 ($1)

100 trades per 6 months = 200 trades p.a. = £30,000 p.a.

• Bad teachers
• Bad mentors
• Bad strategies

1.14.00 !!!!!!!!

A rising MACD tells me when a trend will continue with momentum

1. We look at the MACD to be flat to rising in multiple time-frames
2. We look at multiple different indicators
3. Price confirmation – (1.17.43)

MT4

http://www.pipspredator.com

http://alpeshpatel.com/go/