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If I Would’ve Acted On Emotion, I’d Have Missed Today’s +6.1R $DAX Trade

…thankfully, I didn’t.

Here’s the story, here’s what happened;

This morning, following the open, I was looking at this;

The market was, in my opinion, screaming “get short”. We’d failed to make a new high, we were in a consistent down-trend following yesterday’s huge down-day, we’d retraced slightly overnight which usually signals a continuation, and so on, and so on, and so on.

All the signs, from a ‘guessing’ perspective, from a discretionary perspective, from a ‘trying to read and predict the market’ perspective were shouting “get short”.

…but the problem I had?

My statistically proven $DAX edge triggered a buy signal, when this happened;

At this point, my mechanical rules said “Get long”.

“Wait” I said to myself, anxiously, “I’m buying into this monumental down-move?”. Every ounce of my being was saying; “No, skip this one today, Will. Stand aside. Look at the market for God’s sakes. Do not buy this market, look at it!”.

But my edge –

My statistically proven edge, that’s backed up by rigorous black and white data that proves beyond a shadow of a doubt that this very setup provides wins that’ve been as high as +16.2R

– Said to buy the market.

…and what’s more, the stop-distance given to us was a tiny 7 points, with a target of almost +60 points away.

Again, I thought to myself, am I really buying into a market that yesterday fell by hundreds of points, and is in every single area that I can identify saying get short?

I took a breath…

…and I reminded myself of what’s got me to where I am today, and is the reason I now trade full-time, and that’s this;

I have a statistically proven source of edge, and a set of crystal clear, black and white rules in place that allow me to capitalise on this edge.

All I need to do is follow the rules.

…so that’s exactly what I did. I executed and got long.

What happened next?

We shot to target, banking a monumental +6.1R win in a single hour, growing our account by +6.1%

This is why I trade mechanically.

This is why I remove all of the guessing, the predicting, the worrying and the emotion from trading, because acting on this noise, this nonsense, rarely delivers profits, and hell, it’s even rarer that it delivers trades the size of +6.1R without any ‘work’ whatsoever, not to mention the +7.2R we had just five sessions ago.

We’re now five weeks into the year and are just under +20R up by doing nothing but following a simple set of rules.

My point is this;

No-one can predict the market, and yet this is exactly what the vast majority attempt to do, and they wonder why they consistently lose money.

Why struggle? Why waste the time and the energy that comes with getting caught up in the worrying and the anxiety that attempting to predict without a clear process or framework brings, when a mechanical edge delivers astoundingly better results with literally none of the trouble?

A mechanical edge frees you from the worry, the stress, the anxiety and the panic that trading with discretion forces on you.

I’m sure many traders had losing days today as they tried to ‘read’ and ‘feel’ where the DAX would head. We did none of that.

We waited for our entry signal, executed, and profited.

…and that’s all that we ever need to do.

What impact would an edge that could finally free you from all of the roadblocks that’ve held you back so far –

The guessing, the predicting, the worrying, the stress, the anxiety, and all of the other hurdles that discretionary strategies leave blocking your path

– have on your trading?

If you’d like to completely remove all of the above, all of the things that hold back the consistently losing majority, and you feel you’d benefit from trading a statistically proven strategy using a clear set of rules;

I can help.

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Trading Is Just Like… Going To The Gym?

Think about it…

So many people go to the gym, yet very few ever see significant, lasting results. They might lose a little weight, but it’s all soon put back on. They might gain a little muscle, but it’s all soon gone again.

The problem is, they have unrealistic expectations of what’s possible.

…and no plan or process in place, which is strange because, much like in trading, that is all you need to succeed;

Realistic expectations, a plan, and a tried, tested, proven process to follow.

We know, from a simple, logical perspective that if we follow a meal-plan and exercise regularly that, over time, we’ll lose weight, build muscle and achieve our dream body.

We also know, from a simple, logical perspective, that if we follow a trading plan with consistency, along with trading a statistically proven strategy, we’ll trade successfully over the long-term and finally achieve our dream of trading profitably.

At the gym though, much like in a new traders’ trading account, it takes time for the results to appear and become tangible…

After a month… nothing.

Two months? …nothing.

Three months? …still nothing, and then it happens;

“I quit, I can’t do this. I can’t keep this up. I’m not seeing any results and I’ve sweated it out for three months?! Four months?!”

…and you give in, when results were only a meal-plan and another month or two of hard work away. It’s all over. Yet again, another dream falls by the wayside.

How much more of your valuable time are you going to have to waste, and how much more of your hard-earned money are you going to have to lose to the markets before you say enough is enough and put a trading plan and a proven strategy in-place?

…simply put, it’s all you need.

The freedom from the rat-race, the ability to make money on your own terms, to live life without having someone controlling the days and the hours that you work, the luxuries that you’re missing out on; It’s all waiting.

It’s interesting because, deep down in side of us all, we know for an absolute matter of fact that trading profitably is possible. But again, only with realistic expectations, a plan, and tried, tested, proven strategies to follow.

In the gym or in your trading;

You know success is possible, you know the dream can become a reality, so ask yourself those crucial, all-important questions, because these answers will tell you exactly whether you’re headed for success and dreams achieved, or failure, yet again;

  • Do I have realistic expectations?
  • Do I have a trading plan in place *that I follow, win or lose* on a daily basis?
  • Do I have a statistically proven strategy in place that provides edge, and *that I follow, win or lose* on a daily basis?

If the answers to the above questions are yes;

Congratulations. You’re either trading profitably now, or you’re very much headed towards profitability. Keep up the focus and the consistency.

If the answers to the above questions are no; 

Admit it to yourself, you know the reason you aren’t achieving success. You know the reason you aren’t moving towards your dream of trading profitably, and it’s because you don’t have the above in place.

…whether you do anything about it or not, well, that’s on you.

Don’t be the person who goes to the gym for a month, doesn’t see results and quits…

Be the person who decides, this is it. Don’t allow your dreams to remain dreams any longer. Do what you know you have to;

  • Learn a statistically proven strategy that provides edge.
  • Put a plan in place, and follow this plan no matter what.
  • Gain consistency and remain focused, stay the course, and achieve the dream of trading profitably.

…it really is as simple as that.

Food for thought – William.

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Is Trading A Scam?

I was approached by a trader a couple of days ago distraught with the losses he’d incurred over the last few months and years. He came to me after finding me via Twitter and reading my blog, seeking guidance on process and most importantly removing emotion from trading.

We jumped on Skype together and his first question was, as the title of this Email would suggest, “Is trading a scam?”. He told me that every time he seemed to either execute a trade, close a trade or re-open a trade the market would go against him. He’d convinced himself that brokers were all a scam, all setup simply to take his money. He believed that whatever position he opened, long or short, the trade would be a loss no matter what.

And if a trade moved in his favour? He was so frightened of then losing the very small profit he was finally looking at, he’d close the trade before his target was reached. Emotional decision after emotional decision, destroying his trading results and slowly blowing up his second trading account.

A quote from his Email to me; “Honestly Will, is it all a fix or do people really make money trading?”.

To assure him it is possible, I showed him a few real Emails and Twitter messages from traders I’ve worked with [Some of which are here on my blog] including a trader I taught my GBPUSD strategy to recently who make +6R in 4 consecutive days trading with a +1.5R target each session, telling me how well he was doing and how pleased he was. A real person, a real Email. Black and white proof that yes, you can make money trading. Anyone can if they manage emotion and trade a strategy that is proven to produce results.

“So what’s the answer?” He went on to ask …well, for me and every single one of the traders I’ve worked with so far in either mentoring or sharing one of my strategies/processes, the answer has been the following;

Applying rules. Trading mechanically, completely removing emotion from the equation.

See, when you have a black and white, statistically proven process with trackable, testable data that backs up each action and outcome, you know exactly when you’re doing the right thing and more importantly when you’re doing the wrong thing. There’s no question. Did you execute [effectively, with precision] in line with your strategy? Yes or no, it’s as simple as that. If the answer is yes, across a large enough amount of trades you will profit. And if the answer is no, you know exactly why you aren’t seeing results, and the best part is, because we have rules you can zero in on exactly where you’re going wrong.

Discretionary trading is fun and watching a flurry of traders make predictions online is exciting, but it’s completely unreliable and as the statistics show, a vast amount of these traders fail. If not quickly, eventually. Whereas mechanical traders don’t make predictions, we simply trade recurrences that we have discovered within markets, utilising data and statistics to aid our execution and our results are proven, black and white, and can be applied by anyone.

As soon as I began trading mechanical strategies, those being my GBPUSD, DAX and D1 Swing strategies, my trading completely changed for the better. There was no more guessing, no more predicting and no more worrying…

After all the days, weeks and months of stress, disappointment and constant hard work that I’ve put into my trading business [If you follow me on Twitter you’ve seen how many spreadsheets and data sheets I’ve laboured over], honestly, trading has never been this easy, consistent and stress-free.

So if you find yourself in the same position as the trader I was approached by, or hell, you’re currently where we’ve all been and you’re working hard but emotion is holding you back, I’d implore you to either research mechanical approaches to trading or take on a mechanical strategy because it might just change your trading the way it changed mine, finally resulting in a structured, black and white view of the market/s you trade and the confidence to follow a proven strategy and process.

If you’re interested in learning more about my strategies, click here, or if you’d like to know more about how mechanical strategies work, or maybe you have questions you’d like to ask, feel free to Email me.

I’m always here and happy to help and/or answer any questions.

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Day Trading the DAX: Turning £90 into £726.30

$DAX (Short) Entry: 10909, Exit: 10828.3

What a morning on the DAX…

As usual, we awaited our mechanical, rule-based setup, executed when this showed up a few minutes after the open at UK 07:00am – No thought, no guesses, no predictions – We then simply placed our stop-loss, placed our take-profit at our target and walked away.

…just above an hour later we’d hit target, turning our initial risk of just above £90.00 into a staggering £726.30 in one easy trade that couldn’t have been simpler to take.

I also caught the whole trade live on camera, demonstrating how easy the whole process was [When you know the rules behind the setup, at least].

Watch it back here.

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£110 Banked In 7 Minutes This Morning Trading The Mechanical $DAX Strategy

$DAX (Short) Entry: 11556, Exit: 11537.6

This morning’s $DAX trade was another quick and easy win in the bag for the mechanical rule-based $DAX strategy. We entered at 07:03am and were out of the trade with £110.40 in the bank by 07:12am, before most people have even left for work.

Rather than talking the talk though, not only have I walked the walk, I went to the extra effort of capturing the entire trade live on camera.

In the below video I walk you through the entire process, from trade inception through to hitting our take-profit after holding the trade for just a few minutes, along with explaining the in’s and out’s of a mechanical, rule-based approach where we completely remove emotion, guess-work and prediction from the markets and simply follow a proven process and a trade a proven setup;

DAX-Trade-Nov-2nd

If you have any questions, would like to learn the above strategy and begin trading it alongside me, or for anything else, please feel free to either drop me a message on Twitter or Email me.

  • Will.

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