December 27, 2015

F2G Trading Strategy

Please read the disclaimer below, thank you!

F2G Trading Strategy - Are you the House or the Gambler?
The House may lose 45% of the time give or take in Vegas, but they always win in the long run.

Overview:
What to buy (volatile and liquid)
When to buy (partial first entry, full position second entry, or no trade if chart isn't clear)
When to sell (half position at 1R/2R, rest at major support or resistance, washout/spike, or trend reversal)
Notes

What to buy
Can trade ANY volatile and liquid security, commodity, or forex (futures preferred due to tax and commission benefits, forex and ETFs are a good alternative)
Something with a clear chart pattern and trade thesis, if not, avoid like the plague

December 20, 2015

How to Master Trading

Please read the disclaimer below, thank you!

In one of my previous posts, I discussed mastery and how important it is in trading. I'd like to go into more detail about this topic in this post. So what is trading mastery? I believe there are four pillars of trading mastery (think TAPER):

Technical Analysis
Planning
Execution
Review

Now let's go over each pillar in more detail.

Technical Analysis (TA)
-HTF support and resistance (horizontal and diagonal)
-HTF chart pattern (shows me where price is likely to go)
-LTF support and resistance (horizontal and diagonal)
-LTF chart pattern (shows me where high probability entries, stops, and price targets are)
-Update HTF and LTF TA continuously throughout the day

December 19, 2015

Streamlined F2G Trade Checklist

Disclaimer

F2G Trade Checklist (streamlined for maximum memory retention and maximum performance):

TL;DR: Focus on high probability entries at support or resistance, use "I dont care" position size, cut losses at the predetermined stop, take at least partial profits after quick moves or predetermined nearby prices. No excuses allowed, can always get back in if stopped out.

1. HTF & LTF technical analysis (see how below, also remember to continuously update)

2. High probability entry area and thesis (buy at support, sell at resistance)

3. Stop location that proves thesis wrong, respect it or the market will force you to take an even bigger loss

4. High probability price target for at least half of position, bat for singles to take advantage of compounding, take what the market gives you  (use LTF sup/res for these targets). Listen to what Einstein said about compounding: "Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it.”

5. Set position size/dollar risk (emotion and risk management)

Technical analysis steps:

1. Draw support and resistance price levels
2. Draw trendlines and trend channel-lines
3. That's it, rinse and repeat

The #1 Goal that Leads to Trading Success


I just won the trading competition at work by turning $100,000 into $214,000 in only two weeks trading SPY index options (paper money). That's a 114% return! I noticed there was one major thing that separated me from the other traders: I traded instinctively. I had finally mastered how to trade instinctively after more than 8 years of trying to learn to do so. During the trading competition I knew what to do, when to do it, and I fully believed in whatever had to be done. I then executed each trade according to what I had concluded from the price action with almost no effort. Simple and mechanical. That's not to say easy, but it was simple.

What I learned over the years was that, despite what everyone in the trading community tells you, there's really only one major goal in trading, and that everything else is either secondary or a waste of your time. And if you achieved this one goal, you could make it into the top 5-10% of successful traders after climbing out of the losing 90-95% of traders. So what is this #1 goal? The #1 goal is to learn to trade instinctively, and master it. That's the goal. Trading instinctively requires a trading system, with an edge, and your complete mastery of that system. Here's how people describe a trader when she's mastered her trading system and is able to instinctively execute it:

December 8, 2015

The F2G Trading System Checklist

Disclaimer: I'm now a registered representative with Series 7 and 63 qualifications. What I'm about to discuss is NOT ADVICE just what I believe and how I trade. This blog is for information and trading journal purposes only. Continued reading of this and ANY of my posts constitutes your acknowledgement of and adherence to this disclaimer. Thanks for your understanding.

The F2G Trading System Checklist:

1. Frequently update sup/res on all timeframes to better characterize the current price action

2. Plan your trade, trade the plan

3. Form trade thesis (HTF sup/res/chart pattern most important)

4. Set high probability entry based on HTF sup/res/chart pattern, LTF, or when something is wrong with the price action eg. market can't quite reach sup/res (remember HTF sup/res/chart pattern are always more important than LTF)

5. Set stop at the price that proves the trade thesis is wrong (risk management, consider reversing trade)

6. Set high probability profit target based on LTF sup/res/chart pattern for at least half of position to lock in profits, then HTF for the rest of the position. Focus on singles, not home runs, add to winners/re-enter if flat if trade thesis still correct

7. Select the proper position size (money and emotion/psychology/ego management)

8. If confused or if price action isn't clear, don't trade, wait for clarity because no trade is better than a bad trade

Questions? Submit them below in comments sections, or send me a private email and I'll respond when I get the chance. Thanks for stopping by F2G!

Credit: I've complied this trading checklist from my 8+ years of experience, but most of these lessons came from some of the most successful traders on the planet: @Modern_Rock, @_Lakai_, @InvestorsLive, @millerdon, @alphatrends, @mikebellafiore, @kroyrunner89, and @steenbab.

Fundamental Principals of F2G Trading

Disclaimer

Fundamental Principals of F2G Trading

The current market price is the collective vote of all market participants and takes into account all information, and the majority vote wins, which leads to the market direction, which we join like a surfer on a wave

The market is always searching for support (institutional buying) or resistance (institutional selling)

Support and resistance are horizontal (price level) and diagonal (trendline) lines, and drawn from highs to highs and lows to lows (including opens and closes)

The more touches a support or resistance level has, the more important it is, while HTF sup/res is always more important than LTF sup/res

Support and resistance are broken only when price closes strongly beyond them, broken support becomes resistance, broken resistance becomes support

Buy at support, sell at resistance (or when something is wrong, eg. market can't quite reach sup/res)

Focus on singles, not home runs, add to winners/re-enter if flat if trade thesis is still correct

Identify simple chart patterns such as channels/flags, triangles, wedges, and double tops/bottoms, then plan your trade and trade your plan

Cut your losses fast or the market will force you to take an even bigger loss (if you're trapped, chances are that other people are trapped too, so it all comes down to who comes to their senses first)

Questions? Submit them below in comments sections, or send me a private email and I'll respond when I get the chance. Thanks for stopping by F2G!

F2G Price Action Trading Announcement

The time has come.

After almost 9 years of trading and almost 3 years of day trading and thousands of dollars spent on bogus Guru trading courses resulting in nothing but failure, I've finally found my niche and consistent success. Disclaimer: I'm now a registered representative with Series 7 and 63 qualifications. What I'm about to discuss is NOT ADVICE just what I believe and how I trade. This blog is for information and trading journal purposes only. Continued reading of this and ANY of my posts constitutes your acknowledgement of and adherence to this disclaimer. Thanks for your understanding.

Ironically, the deciding factor to me being successful was not paid services. It was completely free information and videos you could find on the web right now. Consequently, I will release my personal F2G trading strategy to my blog readers because I paid nothing to actually learn how to be profitable. Let's get started: