Lessons from successful traders

This is a discussion on Lessons from successful traders within the First Steps forums, part of the Reception category; I'm in the fortunate position of being in contact with several extremely successful traders. We are talking about those that ...

Closed Thread
 
LinkBack Thread Tools Search this Thread
Old Jul 6, 2008, 2:36pm   #1
 
trader_dante's Avatar
Joined Aug 2005
Lessons from successful traders

I'm in the fortunate position of being in contact with several extremely successful traders. We are talking about those that are consistently taking several hundred thousand pounds per week out of the markets and also those that have, in the past, made many millions from trading. I would like to pass on a few tips - or pointers - that they have told me. What you make of them or how you interpret them is up to you - I will simply relate them as they have been related to me.

1. If you are bearish, do not be afraid to pay down.

Sell on signs of weakness. It takes guts to sell when price has already fallen considerably. The opposite applies for bullishness. Buy on signs of strength.

2. Double tops and bottoms can be very profitable opportunities


Sell at double tops and buy at double bottoms AS they form. These are potentially very profitable opportunities and you can trade them with tight stops.

3. Act on intuition

Intuition comes from studying the market and watching it over a long period of time. If you get a strong feeling about a market - even if you are not sure completely why - act on it. But know that feelings can be wrong and be quick to act if the market does not confirm your intuition.

4. There is no such thing as a price that is too high or a price that is too low.

The market is never too high or too low.

5. Have guts when a position goes onside


There is little point in calling a top or a bottom only to take a few points. You have to be able to hold a position.

6. Fading moves can be very profitable but there is no room for stubborness

When a price is at extremes and you want to attempt to fade it, take small positions and be prepared to act quickly to cut your losses if price does not turn. Look for areas where the market last found it hard to get above/below. Look carefully at the price action. Is it stalling? Remember that there is no room for stubborness in the market.

7. Look for clues

The market almost always tips its hand to which way it is going. If you can't see this, you haven't watched it long enough.

8. Remember why you got in.

If you are position trading a market and you are, for example, buying a considerable distance above support, then that last support is the reason for entry. Until that is invalidated, your trade reason still stands. The "market" knows or cares nothing of where your break even point or fixed trailing stop is. These two latter terms, if based on monetary concerns (not wanting to lose, wanting to protect profits) rather than based on technicals (keeping a valid s/r level between you and the price) are useless.

9. Support/Resistance is the key to the market

This is one of the only technicals that the professionals keep coming back too. Where are the support and resistance points? To determine their validity, watch the strength of the price at them.

10. See the bigger picture

You have to have the ability to see the bigger picture. Where are we on the higher timeframes? How much room do we have to move?

11. Get involved

Invariably, those that make big money, get involved. You need to live and breathe your market to make money consistently. Watch it as much as you can. Time spent watching is time spent learning.

12. Fundamentals

Fundamentals are useful but remember that how a market should react and how it does react are two very, very different things. Don't get married to a fundamental opinion if the price does not confirm it.
trader_dante is offline Coach/Trainer  
Thanks! The following members like this post: bustech
Old Jul 6, 2008, 6:24pm   #2
 
0007's Avatar
Joined Jun 2005
TD,

Thanks for your #1. It's a great reflection on your unselfish willingness to help others.

Although I'm not and probably never will be in the same league as your trader contacts, I do feel a resonance with their points. They also seems to indicate the importance of psychology, once the basics have been mastered.

I would definitely recommend these to beginners once they have some basic understanding & experience of trading.

Just IMHO.
__________________
0007 -
"A Gentleman should not be seen before mid-morning unless he is returning home from the night before"
0007 is offline  
Old Jul 6, 2008, 7:40pm   #3
The Staff are paid members that perform various roles such as editorial, advertising, support or technical work.
 
Trader333's Avatar
Joined Jan 2003
Great post Tom.


Paul
Trader333 is offline  
Old Jul 7, 2008, 3:47pm   #4
 
3 Posts
Joined Jun 2008
Great Post -

Practical; Concise & Followable


Quote:
Originally Posted by trader_dante View Post
I'm in the fortunate position of being in contact with several extremely successful traders. We are talking about those that are consistently taking several hundred thousand pounds per week out of the markets and also those that have, in the past, made many millions from trading. I would like to pass on a few tips - or pointers - that they have told me. What you make of them or how you interpret them is up to you - I will simply relate them as they have been related to me.

1. If you are bearish, do not be afraid to pay down.

Sell on signs of weakness. It takes guts to sell when price has already fallen considerably. The opposite applies for bullishness. Buy on signs of strength.

2. Double tops and bottoms can be very profitable opportunities


Sell at double tops and buy at double bottoms AS they form. These are potentially very profitable opportunities and you can trade them with tight stops.

3. Act on intuition

Intuition comes from studying the market and watching it over a long period of time. If you get a strong feeling about a market - even if you are not sure completely why - act on it. But know that feelings can be wrong and be quick to act if the market does not confirm your intuition.

4. There is no such thing as a price that is too high or a price that is too low.

The market is never too high or too low.

5. Have guts when a position goes onside


There is little point in calling a top or a bottom only to take a few points. You have to be able to hold a position.

6. Fading moves can be very profitable but there is no room for stubborness

When a price is at extremes and you want to attempt to fade it, take small positions and be prepared to act quickly to cut your losses if price does not turn. Look for areas where the market last found it hard to get above/below. Look carefully at the price action. Is it stalling? Remember that there is no room for stubborness in the market.

7. Look for clues

The market almost always tips its hand to which way it is going. If you can't see this, you haven't watched it long enough.

8. Remember why you got in.

If you are position trading a market and you are, for example, buying a considerable distance above support, then that last support is the reason for entry. Until that is invalidated, your trade reason still stands. The "market" knows or cares nothing of where your break even point or fixed trailing stop is. These two latter terms, if based on monetary concerns (not wanting to lose, wanting to protect profits) rather than based on technicals (keeping a valid s/r level between you and the price) are useless.

9. Support/Resistance is the key to the market

This is one of the only technicals that the professionals keep coming back too. Where are the support and resistance points? To determine their validity, watch the strength of the price at them.

10. See the bigger picture

You have to have the ability to see the bigger picture. Where are we on the higher timeframes? How much room do we have to move?

11. Get involved

Invariably, those that make big money, get involved. You need to live and breathe your market to make money consistently. Watch it as much as you can. Time spent watching is time spent learning.

12. Fundamentals

Fundamentals are useful but remember that how a market should react and how it does react are two very, very different things. Don't get married to a fundamental opinion if the price does not confirm it.
gabriel lavelle is offline  
Old Jul 7, 2008, 4:09pm   #5
Joined Nov 2007
Jesus I hate this guy,

he just trots along, authors one of the best threads on the whole site, gives newbies a solid foundation to build their approach to trading on, then goes and posts gems like this.

He's just a git that keeps on giving.

@sshole
MrGecko is offline  
Old Jul 7, 2008, 4:57pm   #6
Joined Feb 2002
Thanks td.... A solid foundation that should be read by newbies and experienced alike!

Be Well

Steve
trigger is offline  
Old Jul 7, 2008, 5:10pm   #7
 
FXSCALPER2's Avatar
Joined Jan 2006
That is the best post I have ever seen on this site.
__________________
Is life so dear that we should blame men for dying in adventure? Is there a better way to die?
FXSCALPER2 is offline  
Closed Thread

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Best Thread: Lessons from successful traders trader_dante First Steps 14 Mar 30, 2011 11:12am
Successful traders out there - a proposition? BaFx Home Trader 0 Jun 17, 2009 1:07am
Backgrounds of Successful Traders trendie Home Trader 128 Jan 15, 2009 4:51pm
Successful Traders. peedee Home Trader 18 Jun 26, 2008 2:35am
successful traders cj12 Home Trader 11 Jul 6, 2005 2:51pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)