Saturday, April 22, 2017

A traders' #1 enemy: FEAR


Have you ever wondered why it's so much easier to paper trade than trading a live account?

It seems that our brain connects through a different wire when we're trading real money and we end up doing a totally different thing than we would if money wasn't on the line.

In our trading room I can see clearly the difference between fearless and scared traders, the first group just do whatever has to be done in every single setup that is presented to them during a trading day, no matter whether the previous trade was a winner or a loser, something that fearful traders have great difficulty in dealing with, no matter what happened on the previous trade, if the trade was a winner they end up skipping the next setup, afraid that they'd be stopped out and give part of their sought after profits, and when the previous trade was a loser they skip the next trade fearing getting stopped out a second time in a row...

If I would list all the different traps that scared traders fall into, I could write a book on that subject only.

Have you ever had the experience of just watching 1, 2, 3 setups without taking a trade just to see them working perfectly and then when you decide to take the next one it fails? Yes, it's really frustrating.

When we enter a trade we never know in advance whether that particular trade will work or not, we do not need to know what market will do next to make money, we just have to trust the statistics we know gets repeated over and over in that specific type of pattern, all we need to do is to take the "key levels" where market might turn, and expect to see a small rotation or a possible reversal, depending on entry location and when it does not work as expected... out.

Traders have to bear in mind that they need to take 10, 20, 30 trades, according to his own style, and be sure that the outcome from that sequence of trades will certainly be positive, 70% or more of the trades will work and at the end of the day they will be in the black, provided they're using a proven methodology like ours for instance, the Diamond Setups.

But, unfortunately, what I see is that most traders DO NOT want to lose a single dollar, afterall the reason why we trade is to make money, but we know that not all  trades will be profitable, we either accept that or we shouldn't be trading. The right mindset + risk management are key.

We have at least 2 different practical approaches on taking profits in our trading system:

1 - MTs - that group of traders will quickly scale out on half or 1/4 at +2 points or so to protect their profits and then continue in the trade trailing without any risk or just a very small risk.

2 - TTs - in that group they will only take profits at the initial target or they will trail until stopped out on FULL size, trying to let the trade develop to its fullest possible potential, although taking +4 points on each trade quickly adds up, mainly on volatile days when we may have several chances to trade along the day, 10+ points days are not that rare when that happens.

The Diamond Setups system triggers several different setups along a day or week, depending on each trader's own trading style, there are calls for day or swing traders, scalpers, and many times a call near the last hour that needs to be held for the next trading day or overnight, all of them are clearly explained in the member area in our website allowing traders to decide which style they will follow depending on how they feel more "comfortable" to trade.

For instance, if he/she likes to take only 1 or 2 trades a week for bigger targets then he will just check the swing trade levels page and wait until any of those levels are tested, if he/she likes to be more active along the dy then he can take the the day/scalping calls for quick profits with a smaller risk.

There is something for every taste, just make sure you learn what to expect and how much you want to risk and take the setups accordingly, 70%+ of the time those setups will work as expected, conquer fear by following a plan that you know will work on the majority of tries.

And last but not least: you DO NOT need to be perfect to consistently make money trading futures.

Join us now, click here: Diamond Setups

Or, if you have any questions, send email to: renatrader@diamondsetups.com

Best of luck!


Saturday, April 8, 2017

The Market and its Cycles


Hi traders!

I've been day trading ES for the last 10 years now, and coaching traders, both seasoned players or newbies for the last 7 years, I've seen many newbies start trading only to quit after a month or so, they are not aware on how market works, about its different cycles, they expect to have a linear winning curve and that's not always the case when they begin, as traders we also have more difficult periods and losing streaks, so it all depends on when a new trader joins the market, luck is also a (small) part of our business.

Cycles in the markets tend to last from weeks to months, during some of those cycles it allows to make truckloads of money while during others we will focus on just protecting our capital, being happy with small profits while we "wait" for a more generous market, we've been trading long enough to know that "the good times" are right around the corner.

All day traders need is some volatility to be able to take more trades make more money, we trade ES (S&P 500 e-minis) only and we know when the range is tight it is more difficult to get good chances to trade, one entry missed and boom, we could miss a whole trading day, but when volatility is in play with wider ranges like 15+ points, that's all we could ask for and more opportunities are given for us who live from trading.

In our trading room we have at least 4 types of calls that are made 24 hours a day from Sunday night to Friday afternoon (live Mon through Fri from 9 AM to 4 PM EST), they go from: swing trading to scalping, it all depends on each trader's style to choose their "level of comfort", let me give you some examples:

Day traders may expect to see 1 or 2 trades a day with targets from 4 to 10 points depending on context, STOPs from 1 to 3 points.

Scalpers may have from 2 to 6 trades a day with a minimum target of 4 points, STOPs also from 1 to 3 points

Overnight traders: for those who like to trade during the Asia and London sessions, with targets from 4 to 10 points and STOP of 4 points. Trading levels are posted daily at around 9 PM EST.

From one of the traders in our trading room on Friday:

[Apr 7, 2017 9:13:17 AM EDT]    b    Thanks for the ON levels
[Apr 7, 2017 9:13:19 AM EDT]    b    worked well
[Apr 7, 2017 9:13:30 AM EDT]    RenaTrader    good job, b!
[Apr 7, 2017 9:13:43 AM EDT]    b    +15 for the day

And last, but not least, swing players who usually have 1 or 2 trades a week with targets of 20 points or more with STOP from 10 to 12 points.

This week for instance swing traders who took the swing levels have made 50+ points, once a trader get a trade like that he will have no fear at all to risk 10-12 points in a single trade, he would have to be wrong 4 times in a row to give all profits back which is really rare to happen in our trading system, the Diamond Setups.

All those styles above with 70% win ratio, except for the overnight traders that get a higher win ratio of 90%

If you want to join us, the risk is very small, with just US$ 99.00 you'll have access to all those calls, our trading room is open Monday through Friday from 9 AM to 4 PM EST (NY time)

Click here to go to our website: www.diamondsetups.com

Or, if you have any questions, send email to: renatrader@diamondsetups.com

Best of luck!

"Setting goals is the first step in turning the invisible into the visible.
If you do what you've always done, you'll get what you've always gotten." - Tony Robbins