Soaring Profits on the Euro and Sterling 2

Soaring Profits on the Euro and Sterling 2

Today was a pretty quiet day, just like yesterday, for the large part of the day. The major pairs were trapped in a narrow range of about 30-40 pips. However, from reading the price action, I was pretty certain we would be seeing more upside. Adding to my longs from yesterday, I had about 20 lots on the EUR/USD.

After hitting my first TP, I went long 10 lots on the GBP/USD, staggering the 1st and 2nd TP to maximize my hitrate and lower my risk. The markets were rather quiet after dinner so I took some time off to do some Christmas shopping.

At night, both pairs broke out, and my 2nd TP for GBP/USD was hit. the EUR/USD was showing signs of price weakness, so I decided to take my profits and call it a night. I ended the day with an average of roughly 50 pips on 20 standard lots, which amounted to slightly more than 10k. I am still adapting to wider swings in my P&L, and I will continue to increase my trading size.

Note to Mentoring Program Graduates:
Work on the easier setups, and aim to find one or two good trades a day. Work on getting a high hitrate, and do not be afraid of letting the winners run. One good swing can make you more than many days of small profits. Take small victories, and make sure you catch these windfalls too.
Good luck!

Real Trading Skills Seminar at CMC Markets

Recently, I conducted a training seminar for CMC clients, sharing how to read charts without using any indicators or special software. I taught them 3 simple techniques – EMAs, Market Phase & Visual Scan – which we later used to do analyse some stocks and indices together. This was a very decent turnout with over 50 participants. I might be conducting a session that is open to the public soon. When the time is right, I will out a notification to register via the mailing list.

Feedback

“Something new, trainer is experienced.”
– Katherine (Finance Manager)

“The speaker is clear and steady in his presentation. Also experienced, knowledgeable and frank. [Real trading skills] are essential to grow one’s wealth, to manage risk, and to improve mental or psychology well-being.”
– Steve Soh (Investor)

“[This content] is something new, something extra from others. [Real trading skills] are essential to update ourselves and keep learning and familiarizing. Now I see the markets more in depth.”
– Lim Kian Chuan (10 years experience)

“Clean and simple. Good trainer.”
– Alvin Yu (Financial Associate)

What did you like best about this seminar? “Chart reading”.
How is the content different from what you have heard out there? “Very practical”
How does this change the way you see markets? “Learn the skill to analyse the markets and how to control.”
What are the key take-aways? “Time-tested setups.”
– Patrick Lim (3 years experience)

“This seminar taught me how to use different approach to trade, makes reading charts more simple and easy, such as using visual scan. This is different from those either use only FA, TA or software to promote their trading course.”
– Kok Cheng (Retired, 5 years experience)

“Speaker is sincere in sharing. Thanks!”
– Susie Lee (20+ years experience)

What did you like best about this seminar? “Practical”.
How is the content different from what you have heard out there? “Visual scans – just based on visual observations + feel of the market”
What are the key take-aways? “The 3 chart-reading techniques – EMA, market phase, visual scans.”
“[Real trading skills] enable us to handle actual market conditions.”
– Choy Kam Luen (3 years experience)

“This seminar has broaden/widen my view about markets. I learnt something new. This is different because it does not sell any formula or software. It is simple and effective. I learnt how to view charts from different perspectives. Spencer is a very good and honest guy.”
– Stanley Tan (Retiree, 10 years experience)

“The main difference from what I have heard out there is his experience in trading.”
– Edward (Retiree, 5 years experience)

“Good speaker. My key take-away is the visual colour scan.”
– Nathan (Sales, 3 years trading experience)

“This seminar has new concepts introduced. It is somewhat different from others out there, with a different approach to the market. There is good explanation of concepts.”
– Thomas Tung (5 years experience)

“Straight to the point. Using price action is different from what is out there. Helps to maximise profit. More control over the market. My key take-aways are the confidence and the strategies. Speaker speaks very clearly.”
– Clarence (Real estate agent, ERA)

“Good content. Heard concepts I have not heard elsewhere. No indicators are used by Spencer. He used “count” of colour + shadows to tell whether market is in which phase. [Real trading skills] are essential to increase chances of making profit and to reduce losses. Very well-spoken, content is delivered very clearly. Good content.”
– Lim Bee Tin (3 years experience)

Top Trading & Investing Books

Here are some of the better books among the 200+ that I have read over the years, so if you want to learn the basics & foundations of trading by yourself, these might come in handy.

However, do note that trading for real is very different from textbook examples. If you are new to trading, you will realise the difference once you start trading.

If you are serious about learning this skill on your own, make sure you finish all these books before you start putting your real money into the market. That was what I did when I started my trading career. This is just the bare minimum, and anything less is likely to end in failure. Even if you finish reading all these books, it is unlikely that you will be able to trade well.

fund trading

There are many things which cannot be learnt from books, such as “market feel”, behavioral analysis, applied price action, and real trading psychology. These can only be learnt by paying “tuition fees” to the market (paper trading or demo trading is a waste of time), or learning from a real trader who has mastered these skills and get them to guide you. Investing in education is a small price to pay to help you avoid the costly mistakes in trading.

Without further ado, here are the list of books:

  • The Secrets of Economic Indicators – Bernard Baumohl
  • Freakonomics – Stephen Dubner & Steven Levitt
  • The Undercover Economist – Tim Harford
  • The Pocketbook of Economic Indicators – Manual Jesus-Backus
  • 
International Economics – Paul R. Krugman
  • Trader Vic – Methods of a Wallstreet Master – Victor Sperando
  • The Trader’s Guide to Key Economic Indicators – Richard Yamarone
  • 
One Up on Wall Street – Peter Lynch, John Rothchild
  • How to Make Money in Stocks – William O’Neil
  • The Alchemy of Finance – George Soros
  • Hot Commodities – Jim Rogers
  • Investment Biker – Jim Rogers
  • Technical Analysis from A to Z – Steve Achelis
  • 
Technical Analysis – Power Tools for Active Investors – Gerald Appel
  • Bollinger on Bollinger Bands – John Bollinger
  • Technical Analysis Demystified: A Self-Teaching Guide – Constance Brown
  • 
All About Technical Analysis : The Easy Way to Get Started – Constance Brown
  • Technical Analysis for the Trading Professional – Constance Brown
  • 
Fibonacci Analysis – Constance Brown
  • Mastering the Trade – John Carter
  • Trend following – Michael W. Covel
  • Trend Commandments – Michael W. Covel
  • The Complete Turtle Trader – Michael W. Covel
  • How I made $2,000,000 in the Stock Market – Nicolas Darvas
  • Understanding RSI – Edward Dobson, Roger Reimer
  • Integrated Pitchfork Analysis – Mircea Dologa
  • 
Technical Analysis of Stock Trends – Robert D. Edwards, John Magee
  • Entries and Exits – Alexander Elder
  • Trading for a Living – Alexander Elder
  • Sell and Sell Short – Alexander Elder
  • Come into my Trading Room – Alexander Elder
  • Way of the Turtle – Curtis Faith
  • Inside the Mind of the Turtles: How the World’s Best Traders Master Risk – Curtis Faith
  • The Master Swing Trader – Alan Farley
  • The Elliot Wave Principle – A. J. Frost, Robert R. Prechter Jr.
  • Truth of the Stock Tape & Wall Street Stock Selector – William D. Gann
  • 45 Years in Wall Street – William D. Gann
  • 
New Stock Trend Detector – William D. Gann
  • How to Make Profits in Commodities – William D. Gann
  • Trend Trading – Daryl Guppy
  • Snapshot Trading – Daryl Guppy
  • New Trading Systems and Methods – Perry Kaufman
  • Breakthroughs in Technical Analysis: New Thinking from the World’s Top Minds – David Keller
  • How to Trade in Stocks – Jesse Livermore
  • Fibonacci and Gann Applications in Financial Markets – George MacLean
  • The W.D. Gann Method of Trading – Gerald Marisch
  • Dynamic Trading – Robert C. Miner
  • High Probability Trading Strategies – Robert C. Miner
  • 
Candlestick Charting Explained – Gregory L. Morris
  • Technical Analysis of the Financial Markets – John J. Murphy
  • Intermarket Technical Analysis – John J. Murphy
  • How to Get Started in Active Trading and Investing – David Nassar
  • Japanese Candlesticks Charting Techniques – Steve Nisson
  • The Candlestick Course – Steve Nisson
  • Beyond Candlesticks: New Japanese Charting Techniques Revealed – Steve Nison
  • Timing the Trade: How Price and Volume Move Markets! – Tom O’Brien
  • The Secret Science of Price and Volume: Techniques for Spotting Market Trends, Hot Sectors, and the Best Stocks – Timothy Ord
  • 
Candlestick and Pivot Point Trading Triggers – John L. Person
  • Technical Analysis Explained – Martin J. Prings
  • The Visual Investor – Martin J. Prings
  • Martin Pring on Price Patterns – Martin J. Prings
  • Dow Theory for the 21st Century – Jack Schannep
  • Trade like Jesse Livermore – Richard Smitten
  • 
The Secret Code of Japanese Candlesticks – Felipe Tudela
  • New Concepts in Technical Trading Systems – J. Welles Wilder
  • Secrets for Profiting in Bull and Bear Markets – Stan Weinstein
  • 
Stock Market Technique, No 1 – Richard D. Wyckoff
  • Stock Market Technique, No 2 – Richard D. Wyckoff
  • Studies in Tape Reading – Richard D. Wyckoff
  • Wall Street Ventures & Adventures Thru 40 Years – Richard D. Wyckoff
  • How I Trade and Invest in Stocks and Bonds – Richard D. Wyckoff
  • R N Elliott’s Masterworks, the Definitive Collection – R. N. Elliott, Robert R., Jr. Prechter
  • Technical Analysis: The Complete Resource for Financial Market Technicians – Charles D.Kirkpatrick II, Julie R. Dahlquist
  • Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds – Nicole Elliott
  • Practical Speculation – Victor Niederhoffer, Laurel Kenner
  • The Wall Street Waltz – Kenneth L. Fisher
  • Stock Market Wizards – Jack D. Schwager
  • The New Market Wizards – Jack D. Schwager
  • Millionaire Traders – Kathy Lien, Boris Schlossberg
  • The Battlefield for Investment Survival – G. M. Loeb
  • Fooled by Randomness – Nassim Nicholas Taleb
The Black Swan – Nassim Nicholas Taleb
  • 
The Education of a Speculator – Victor Niederhoffer
  • Liar’s Poker – Michael Lewis
  • Reading Price Charts Bar by Bar – Al Brooks
  • The Lexus and the Olive Tree – Thomas L. Friedman
  • The World is Flat – Thomas L. Friedman
  • Reminiscences of a Stock Operator – Edwin Lefevre
  • Trading in the Zone – Mark Douglas
  • The Disciplined Trader – Mark Douglas
  • Investment Psychology Explained – Martin J. Prings
  • Irrational Exuberrance – Robert J. Shiller
  • Beyond Greed and Fear – Hersh Shefrin
  • Trading Rules that Work: The 28 Lessons Every Trader Must Master – Jason Alan Jankovsky
  • Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves – Kathy Lien
  • Bird Watching In Lion Country 2010 – Dirk Du Toit
  • Pairs Trading: Quantitative Methods and Analysis – Ganapathy Vidyamurthy
  • Quantitative Equity Portfolio Management – Ludwig B Chincarini, Daehwan Kim
  • Technical Traders Guide to Computer Analysis of Futures Market – Charles Le Beau, David Lucas
  • The Definitive Guide to Point and Figure – Jeremy Du Plessis
  • SteidMayer on Markets: Trading with Market Profile – SteidMayer J. Peter, Steven B. Hawkins
  • Quantitative Trading Systems, Practical Methods for Design, Testing, and Validation – Howard B. Bandy
  • Expert Advisor Programming – Andrew Young
  • Future Trend from Past Cycles – Brian Millard
  • Cloud Charts: Trading Success with the Ichimoku Technique – David Linton

Note: I will continue to add to this list as I discover and read more good books. Feel free to recommend any books not on this list!

Thanks! 😀

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.

Important Announcement

We’ve been informed by our fans that Facebook has made some changes to FanPages lately, restricting the visibility of posts made by all FanPages like ours. We are now required to pay for the visibility of posted content, even if you have signed up to see these posts by liking our Page. If a post is not promoted, it will be seen by only around 10-15% of the Page’s followers.

How to Continue Receiving Updates

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