Welcome to our Articles Blog !
LESSONS LEARNED
0. Forgiveness for the trading I am about to do, gratitude for the trading I have done.
1. Know the market condition. Have a market condition framework that is useful in your time frame for typical holding periods: stable enough, but sensitive enough
2. Have a stable herd of standard targets that have behavioral characteristics that are linked to your typical holding periods
3. Use performance stats as a market condition
The Kata Challenge System is a trading system developed by Dr. Ken Long with traders at Ablewaytech.com that helps traders become more successful. The system is based on the concept of "katas," which are pre-defined trading patterns that capture all the major price moves in the market. The system uses a combination of technical analysis and risk management to identify profitable trades and minimize losses. It emphasizes the principles of commitment, discipline, study and simplicity to teach how to trade professionally.
By applying narrow stops you may experience a lower win rate, but if your system and skills are in tune with the market you can expect an increased number of opportunities and the size of your average winners to increase. This will more than offset the slightly lower winning percentage and will add directly to your bottom line.
The valuable feedback from our students is a testament to the effectiveness of our trading course and the dedication of our instructors. We are delighted to have received such positive responses regarding our teaching style, course content, and interactive sessions. Remember, successful trading requires continuous learning and adaptation to the ever-changing markets.
Our Thinkorswim user group for the Owl Bundle has been meeting weekly and it has been a great platform for us to exchange ideas, information, insights, and strategies with one another. The members are sharing helpful tips and tricks while also assisting each other with common problems. Through this user group, a sense of community and belonging is being fostered, allowing traders to connect with like-minded individuals who share a passion for trading.
One of the regular traders in our trading mastermind has made a successful practice of focusing on just a few stocks and ETF's in his short-term trading strategy. The rest of us have seen him develop an almost uncanny ability to anticipate his targets reactions to news, behavior at certain important price levels and generally stay in tune with the changing price action a day-to-day basis.
A short term trader could reasonably conclude that market mispricing occurs more likely in moments of great fear than great greed. A short term outlook is much more likely to be influenced by emotion than the longer-term rational approach to the markets. For these reasons, a short-term trader could consider the idea of "Max Pain" in the search for tradable short-term opportunities.
In this article I’d like to talk about the process of finding symbols to trade each day. This can be applied to any timeframe really, because whether I’m conscious of it or not I have some reason for selecting a symbol to trade. Whether I plan to hold it for ten years or ten minutes, there was some thought process I went through to decide on that symbol.
The style of trading that works best for me is a combination of discretion and rules based systems. Sometimes I start with a framework of rules and then apply some discretion in the gray area between the rules. I see this as mostly systematic trading with some discipline and discretion. In other circumstances I start with a discretionary reason to trade, such as a favorable reward to risk ratio in either direction and then add structured rules to govern risk timing position sizing and exits. I think of this style as being artistic with the addition of structured discipline. In both cases I believe that both forms of trading are a type of craft knowledge.
Understanding the differences between various trading styles can help one make informed decisions when entering the financial markets. This section will compare and contrast Scalping, Day Trading, Swing Trading, Position Trading, and Buy and Hold strategies, focusing on Risk Management, Profit Potential, and Time Commitment.
It’s important to have a systematic trading process in planning your trades. In our weekly Owl Bundle on Thinkorswim user group Zoom meeting, an experienced trader shared how he plans on which symbols to trade the next day. I was very impressed with his systematic approach to trade planning starting first with an understanding of the market.
