Strategy: Harmonic Pattern Trading

Target profit: 75pips per week
Indicators: Channel Movement, Harmonic Patterns, RSI
Important chart pattern: double-top/bottom and Head & Shoulder, divergence and convergence
Important candlestick: Doji, bullish/bearish engulfing

My Trading Mantra

1. Objectively identify my edges - I have a system here that works.
2. Pre-define the risk of every trade.
3. Completely accept the risk. Consider the money GONE.
4. ACT on my edges without reservation or hesitation. Follow the rules and take every trade that meets the conditions.
5. Pay myself as the market makes money available. Take the profits and be happy. Even if compounding my account, pay myself something out of my profits each month.
6. Continually monitor my susceptibility for making errors.
7. Understand the absolute necessity of these principles, and therefore I never violate them.

Saturday, June 27, 2009

Takeaway from SGX seminar - What it takes to be a successful trader

3Ms to successful day trading
Method - Your strategy
Money Management - Risk / Reward Ratio
Mind - Psychology, remember to manage greed and fear. Most importantly, be patient and enter when the setup is in your favour

What differs 5 star trader from 3 star trader
Positioning size - Increase size when trade is in your favour. Remember, only do that when there is perfect setup

2 rules to note if you want to survive longer in trading
Always trade in trend
When your trade is wrong, cut loss and move on - don't be naive to think you are your own stop loss mechanism
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