Hello my friend ........my fingers have had some rest , so here we go !!
I will start by saying that i come from an academic background ..A levels and Economics degree at Manchester. I AM IN NO WAY ATTEMPTING TO PATRONISE YOU !! The concept I am going to explain is common sense, please dont take this a bad way but I think a lot of people on trade2win do not have any formal qualifications. A lot of traders on trade2win sound like punters turned traders who think they are betting on a horse...hence some very immature/childish remarks. I am 29 yrs old and I honestly feel like a grandfather on here at times due to childish comments I hear that lack any form of logic.
OK let me start by explaining the concept of market tops and bottoms because i honestly dont understand your level of intelligence. I have to assume you are beginners, because the questions you are putting forward would only come from a novice. The experienced traders on here understand where I am coming from and have sent numerous messages of appreciation.
The best trader in the world cant catch a top/bottom in a market but what he can do is spread his entry positions in order to get a good average. This is what Nicholas Santiago/Gareth Soloway do at Inthemoneystocks.com, this is something they have taught me to do.
The chart explains the concept of averaging into a position, thereby increases your chances of an optimal entry. So for example if you trade at £10 a point , rather than enter full £10 @ 5510 , I would enter £2 a time @ 5510 , 5505, 5500 ,5506, 5514 = avg 5507 = optimal entry given the volatility in the market place.
I did A - Level mathematics at college, and trust me when you do stats 1, 2,3 and mechnanics 1,2,3......the concept of getting a smooth average is very important.
The chart explains the concept of averaging into a long and short
so lets deal with the different scenarios
Scenario 1 : I am long ftse from 5510 - 5500 ..avg = 5505 , stop loss = 5475 , tgt = 5535 , 5545, 5555
I trade 4/5 contracts on average
I go long from 5510 and average in upto 5500 as price goes to 5499 ..I managed to average all 5 contracts. i start with 2 contracts and then go long 1 contract a time anywhere in that region until i get 5 contracts long
avg = 5505
stop loss always remains stagnant @ 5475
market rally 5520
stop loss now amended to b/e , all risk reduced from trade
market moves to 5540
and i knock off 2/3 for +40 , then last 1/3 left b/e
market moves to 5560 , then last 1/3 closed + 60
I honestly can't believe I am doing this , as it is common sense !! I'm just shocked that I have to explain this .....Traders are supposed to be sharp people
Scenario 2 : I am long ftse from 5510 - 5500 ..avg = 5505 , stop loss = 5475 , tgt = 5535 , 5545, 5555
I go long from 5510 and average in upto 5505 as price only goes to 5504, I have only managed to fill 3 contracts before market moves higher to 5514-5515. I then check my variables and see that market is not moving lower therefore I add the other 2 contracts @ 5514 and 5512
avg = 5510
stop loss always remains stagnant @ 5475
market rally to 5525
stop loss now ameneded to b/e , all risk reduced from trade
market moves to 5535
and i knock off 2/3 for +25 , then last 1/3 left b/e
market moves to 5560 , then last 1/3 closed + 50
Scenario 3 : I am short ftse from 5500 - 5510 ..avg = 5505 , stop loss = 5535 , tgt = 5475, 5465 , 5455
I go short from 5500 and average in upto 5515 as price spiked higher to 5517, I manage to get all 5 fills.
avg = 5512
stop loss always remains stagnant @ 5535
market sells off to 5495 , stop loss now amended to b/e
market sells off to 5482 , knock off 2/3 + 30 , last 1/3 b/e
market rally back upto 5512 = last 1/3 runner closed b/e
Scenario 4 : I am short ftse from 5500 - 5510 ..avg = 5505 , stop loss = 5535 , tgt = 5475, 5465 , 5455
I go short from 5500 and market drops immediately .......i check my variables and they are all showing immense weakness therefore i add my remaining shorts @ 5497 , 95, 94
avg = 5496
stop loss always remains stagnant @ 5535
market sells off to 5480 , stop loss now amended to b/e
market sells off to 5470 , knock off 2/3 + 26 , last 1/3 b/e
market sells off further to 5450 , last 1/3 closed + 46
and that is how I trade folks...I have explained all the scenarios to you !!
A classic example was today on FTSE ....live trade called in the morning on this thread ... long ftse from 5510 - 5500
I got in @ 5510 , 5505, 5501, 5496 , 5490
avg = 5502
stop loss remains stagnant @ 5465
market rally to 5535 , closed + 32
The whole concept here is that I identify a zone ......one can enter anywhere in that zone , but if one can get a smooth average in that zone it is better as it gives you an optimal entry. The choice is yours as a student ?
I am not here to hold your hand or tell you what level to buy exactly to the pip ??
That is what a signal service does ??? I am not a signal service , I am alive analysis service. I am telling you what I am doing on my trading account and where I am entering.
80% of time I am able to enter calmly and catch any false spikes and get a very good average.
This wide 10 point window entry then allows me to account for different broker spreads , volatility , time delays etc etc. So its a double benefit for me due to optimal entry and for students as they are able to get into trade if they wish.
I hope that clarifies my trading style.......this style is based on a high level of accuracy , my accuracy = > 90% so I am fine to trade it.
My service is called "Live Analysis service" . not signal service. I send out my entry area, with stop loss and exit in real time. I then explain in advance which way i expect the market to move based on intermarket analysis and fundamental news flow, this allows the student to learn in a practical way. I then send TA and FA arguments via email explaining why the market is expected to move higher/lower ...........
The markets hits my target ............I send out text to say i have taken profit and students can do whatever they want with that information. If they choose to follow, they do so at there own risk.
My job is to explain why the market is moving in real time .......I highlight all the variables they need to observe and learn in order to trade independently.
I empower my students by showing them how i do it in real time ???
My neck is on the line on every trade , every day , every week ???
I lead by example and then they follow and learn like a car driving lesson ??
Now tell me if i am ripping people off by charging them a small fee which is peanuts given the cost of learning/courses in this industry that go up to the thousands !!
For just £50 a month for a few months i can certainly make them an accomplished successful trader with a firm grounding of the stockmarket ???
