Get more consistent income to grow your portfolio faster

5 Practical Tips on How to Trade on the Go (With 15 Minutes a Day)

After trading and travelling to 48 countries across the world, I realised that it is actually not very difficult to trade on the go, since in most countries you can get wifi or buy a data plan, so as long you have your mobile phone, you can easily place trades as you move along.

2016-07-10 10.20.49

 

Here are some useful and practical tips I have picked up along the way:

1. MAKE SURE YOU HAVE A GOOD INTERNET CONNECTION

This is a no-brainer, as the last you want is to be left handing with no internet after entering some trades, and not being able to input your stoploss and targets. Don’t forget to take full advantage of Wifi hotspots at hotels and cafes, or even better, purchase a local SIM card and data plan.

If you have intermittent access to the internet, perhaps because of flights, then make sure you always have a stoploss in place for all your trades.

2. FOCUS ON A HANDFUL OF SETUPS AND PRODUCTS

Since you don’t want to spend too much time browsing the markets, it is a good idea to prepare a simple watchlist beforehand. For me, I usually focus on about 20+ forex/commodity pairs, so that I can scroll through all of them quickly in a few minutes with my mobile phone to look for any good trading opportunities.

And since I won’t be taking many trades, I can choose the best of the best trades, which means that I can focus only the very best setups that I see. When you see an AWESOME setup, it should jump out of the chart and right in your face, and you should feel the rush of adrenaline and excitement to take the trade. If you have to squint at the chart and think thrice about whether it is a good trade, then I would suggest you just let it go.

3. USE A LARGER TIMEFRAME TO PLACE YOUR TRADES

If you are on the move, then obviously you won’t have time to be staring at the charts all day, which means you should not be using smaller timeframe charts like the 5-minute or 15-minute charts. Actually, I won’t recommend using anything less than a 1-hour timeframe.

By using longer timeframes (1-hour, 4-hour, daily), it means that you only need to check the charts at very infrequent intervals, such as every hour, every 4 hours, or once a day. This way, you do not have to constantly worry or stress about your positions, because your stops will naturally be wider (and your positions smaller), so you do not have to worry about the smaller market fluctuations.

4. DO NOT SPEND MORE THAN 15 MINUTES A DAY

Since you do not have to constantly monitor the market, this means that you only have to periodically check and update your positions. You can easily do this by utilising the “wasted” pockets of time that you have throughout the day.

For example, when you are waiting for a bus/taxi/mrt/plane/train, or waiting for your ordered food to arrive, instead of playing some mindless mobile app game or reading random articles of facebook, why not open up your trading app and place some trades instead? This way, you can make some additional income with your spare pockets of time.

5. LEVERAGE ON A GOOD NETWORK OF TRADERS

Lastly, by leveraging on other good traders, I can learn from their trades and hone my skills as a trader.

I will be back in Singapore in about another week, and I look forward to seeing you all at my next “Trading Foundation Workshop”, where I can share more about my travel adventures and some of the trades I made while travelling.
Check availability: http://synapsetrading.com/trading-foundation-workshop/

See you soon! 😀

Simple Video Tutorial: How to Set Up & Use the MT4 Trading Platform

This is a simple demonstration on how you can use the MT4 platform to:

  • Add and view charts
  • Add trendlines, support/resistance, indicators
  • Customise charts layout and colours
  • Toggle between different timeframes and charts
  • Place trades using various methods, including the EP, TP, SL

In this video, I did a sample trade on my live account to show how easy it is to place trades, and this can actually be done very easily via my mobile phone as well.

If you are keen to see more real-life examples, I will be logging in to my live trading accounts to show my open positions, and also take some new trades if there are any good opportunities.
Register to meet Spencer live: http://synapsetrading.com/trading-foundation-workshop/

See you there! 😀

The Most Important Money Management Rule that Most Traders Forget – Why?

What is the one rule that all professional traders use, but many retail traders forget, or are simply unaware of?

_MG_9839

We all know that the goal of trading is to make money, and as long as you have an edge in the market, you will be profitable in the long-run.

So the next question is, how do you maximize your profitability without blowing up your account?

The answer lies in the 2% money management rule.

Let’s use a hypothetical example where you start betting with $10,000. In this scenario, you have hitrate (winning chance) of 60%, and you either win double of what you bet, or lose the whole sum of what you bet. How much would you bet each time?

If you bet the whole $10,000, you have a 60% chance of doubling your money, but you also have a 40% chance of losing everything. That is exciting for a gambler, but not ideal if you want to remain profitable in the long-run.

What if you split your $10,000 into 2 bets of $5000 each? Your probability of losing 2 bets in a row is only 16% (40%*40%), which means your chances of losing everything is much less. Sounds good? What if you take it one step further, and split your $10,000 into 10 bets of $1000 each? The odds of losing everything drops to just 0.01%.

In trading, the secret of money management is not to focus on making the most money, but rather to ensure that you do not lose your capital.

As Warren Buffet once said, the number one rule of his is to not lose money.

How does this apply to your trading?

According to the 2% rule, when we take a trade, we will only risk 2% of our capital on each trade, meaning for a $10,000 account, we will only be risking $200 per trade, and that is the maximum amount that we can lose for each trade. (Risk is calculated as the difference between the entry price and stoploss price, multiplied by the quantity traded.)

With this 2% money management rule, the only way to lose all your trading capital is to lose 50 times in a row, and the probability of that happening is less than 0.000000000000000001%.

We have most likely heard horror stories of traders blowing up their account, and that is happens when they break this rule. If you stick to this 2% money management rule, it is almost impossible for you to blow up your account, and you will see a marked improvement in your trading results.

And this is what separates the professionals from the average trader.
Which one are you today? 😀

 

DSC_0021

Join me for my next free 2-hour seminar where I will reveal all my trading secrets!
Check availability: https://www.eventbrite.sg/e/how-to-profit-from-the-stockforex-market-with-just-15-minutes-a-day-tickets-16884977422

Market Basics: Understanding Trend vs. Range Market State Transitions

This is an essential skill required by every aspiring trader. All professional traders definitely know this, for it forms the basis of many setups, and can mean the difference between breezing on the right side of the market, or clenching your fists in anger as the market goes against you.

I am referring to the ability to tell the state of the market.

Besides behavioral analysis, there are some simple price action guidelines that we can use to accurately determine the state of the market. This is important for obvious reasons.

There are 2 basic states of the market – trend or range. As the market shifts between these 2 states, it creates many trading opportunities in the form of setups.

Newbies who attempt to trade by memorising setups while ignoring the underlying structure of the market are heading for the proverbial iceberg. That said, this is just the tip of the iceberg.

This video should provide you an idea of how prices move, and if I have a chance to share more in upcoming seminars next year, I will show how these transitions give rise to the different trading setups that we teach during our training programs.

The Quest for the Holy Grail: Secrets, Gurus & Software

To many, the holy grail of trading is deemed to be the ultimate solution to all their trading problems, the magic bullet that will allow them to profit without effort, the secret trading method or tool that will allow them to predict the market and win on every trade. However, far from being the solution, this mentality often acts as a stumbling block to all traders, if not a brick wall.

Many people hop from tip to tip, from guru to guru, from one software to another, attending every seminar and learning from every guru, but they will never be contented, and they will never become good traders, because they are too busy finding the holy grail to put their knowledge into practice. So what is the holy grail?

The Quest for the Holy Grail: Trading Secrets, Gurus & Software

The Quest for the Holy Grail: Trading Secrets, Gurus & Software

If you want to learn to trade, it make sense to learn from someone who is trading in the current markets. Not someone who was successful trading 20 years ago and now teaches for a living. Will their strategies that worked 20 years ago still be relevant now? It is unlikely in this current dynamic market.

Many people in trading start off with the wrong ideas, and after sacrificing a lot of time and spending a lot of money, they wonder why they still cannot get the results they desire. Others think that hard work can solve everything, and given enough time, they will naturally pick up the skills themselves. Not many succeed in re-inventing the wheel. As a world-class tennis coach used to say, “Practise makes perfect, so make sure you are not practising the wrong thing.”

“It’s not the method or system, it’s the trader.”