THE MOST PROFITABLE TRADING STRATEGIES

Updated: May 25, 2021

Learn from the best trading experts in the world...


Over the decades there have been 100's of trading books produced, all touting to have a unique method to master the markets. However, on closer inspection it is clear the most renowned traders base their strategies on the same principles, from previous legends like Jesse Livermore.

Principles aligned to;


  • Trading with the trend

  • Trading breakouts

  • High volume

  • Precise risk management

  • Disciplined, mechanical approach

  • Price action

It's amazing when you think how simple their processes are, especially in an era where indicators have flooded the market place. In our experience, the use of a single indicator in combination with the above principles is all you need, we use the MACD others may prefer the RSI etc, but in essence keeping it simple is key.

Once the strategy is defined, an understanding of probabilities and risk reward is how you will turn from an emotional (often losing)trader to being able to trade 'in the zone'.



Understanding that nobody can predict the next move in the market consistently, and that each candle is a random event will create the foundation for the right mindset. Just like tossing a coin, each toss is a random event, the coin has no memory therefore if a coin has landed on tails 10 times in a row, there is no logical reason why it should fall on heads with the next toss, it is still a 50% chance of either. However, the law of large numbers suggests that over perhaps 1000 tosses the likely distribution would be close to 50/50. Fully understanding this will allow for your edge to play out over the longer term without over reacting to short term outcomes.


Risk reward is in our minds, the final piece of the jigsaw. Risking small to win bigger is the compounding secret to growing your account. There is no need to have a system that is right more than it is wrong, the overriding factor is how much you win in comparison to how much you lose. Contrary to newbie belief, many of the best traders win less than 50% of the time, but, when they allow their trades to trend, they win big.


For those looking to reduce the learning curve, and not have to endure hundreds of books in the process, our free youtube channel summarises popular trading books and presents them in an animated version with key takes from each book/guru.


It would be great if you joined our community.


Thanks

Financial Wisdom

121 views

Recent Posts

See All