[It never hurts to start small]
Let me ask you…
If you can afford to lose $10,000 without affecting your lifestyle, how much should you fund your trading account?
$10,000?
Wrong answer.
That’s because when you first start trading, your performance will be at its worst.
You’ll make trading mistakes, give in to your emotions, and do things that are detrimental to your account like averaging your losses, widening your stop loss, etc.
This means your $10,000 will not last long.
The solution?
Start with a small trading account.
This way, your mistakes won’t be costly and even if you lose it all, you have money to fund another account.
Because no matter what, you must pay tuition fees to the market.
The question is, do you want to pay more or less?
Let me ask you…
If you can afford to lose $10,000 without affecting your lifestyle, how much should you fund your trading account?
$10,000?
Wrong answer.
That’s because when you first start trading, your performance will be at its worst.
You’ll make trading mistakes, give in to your emotions, and do things that are detrimental to your account like averaging your losses, widening your stop loss, etc.
This means your $10,000 will not last long.
The solution?
Start with a small trading account.
This way, your mistakes won’t be costly and even if you lose it all, you have money to fund another account.
Because no matter what, you must pay tuition fees to the market.
The question is, do you want to pay more or less?
100- Day Moving Average: Definition, Calculation & Strategies
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The big money is made by sitting on your positions—not forcing trades out of boredom.
6 Trading Habits Which Keep You Poor (Without You Realizing It)
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[How to set proper profit targets (hint: it’s not about your risk-reward ratio)]
I laugh to myself whenever I hear traders comment:
“You must have a minimum of 1:2 risk-reward ratio if you want to be a profitable trader.”
Now let me ask you…
What’s so special about having a 1:2 risk-reward ratio?
Why not have a 1:10? Or even a 1:100?
So here’s the truth…
The market doesn’t care about your risk-reward ratio—it goes where it wants to go.
The only thing you can do is, observe what the market has done previously, and use it as a clue to where it might go in the future.
For example:
If the market previously collapsed at $100, then the next time it approaches $100, there’s a possibility of selling pressure coming in at that level.
As a swing trader, you don’t want to set your target at $105, $100, or $110 because the market might not get to that level due to selling pressure.
Instead, you want to exit your trade before opposing pressure steps in which is before $100 (around $99 or so).
This means if you’re in a long trade, you’ll want to exit your trade before:
• Swing high
• Resistance
• Downward trendline
(And it’s just the opposite for a short trade)
I laugh to myself whenever I hear traders comment:
“You must have a minimum of 1:2 risk-reward ratio if you want to be a profitable trader.”
Now let me ask you…
What’s so special about having a 1:2 risk-reward ratio?
Why not have a 1:10? Or even a 1:100?
So here’s the truth…
The market doesn’t care about your risk-reward ratio—it goes where it wants to go.
The only thing you can do is, observe what the market has done previously, and use it as a clue to where it might go in the future.
For example:
If the market previously collapsed at $100, then the next time it approaches $100, there’s a possibility of selling pressure coming in at that level.
As a swing trader, you don’t want to set your target at $105, $100, or $110 because the market might not get to that level due to selling pressure.
Instead, you want to exit your trade before opposing pressure steps in which is before $100 (around $99 or so).
This means if you’re in a long trade, you’ll want to exit your trade before:
• Swing high
• Resistance
• Downward trendline
(And it’s just the opposite for a short trade)
20-Day & 30- Day Moving Average: Definition, Calculation & Strategies
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Stop forcing trades when there’s nothing.
Instead, pick a level to trade where you’ll lose small when wrong—and earn big when right.
You pay less commissions, make less mistakes, and have less stress.
Instead, pick a level to trade where you’ll lose small when wrong—and earn big when right.
You pay less commissions, make less mistakes, and have less stress.
10-Day Moving Average: Definition, Calculation & Strategies
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7 Best Practice In Your First Year Of Trading
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I tried chart patterns and failed.
I tried trading indicators and failed.
I tried harmonic patterns and failed.
I tried candlestick patterns and failed.
Eventually, I realized it was not the tools—but me.
And everything clicked.
I tried trading indicators and failed.
I tried harmonic patterns and failed.
I tried candlestick patterns and failed.
Eventually, I realized it was not the tools—but me.
And everything clicked.
Swing Trading Techniques That Work
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[Consistent actions lead to consistent results]
I remembered my first trading system.
It was a Bollinger Band mean reversion strategy.
You buy when the price is at the lower band and sell when it’s at the upper band.
The first few trades I did were winners, then the losses came and I figured this trading strategy doesn’t work.
So, I moved on.
Next, I chanced upon harmonic patterns.
I spent half a year learning how to draw these patterns (guess I’m a slower learner).
At the start, I had some wins but slowly, the losses kicked in and eroded all my profits.
Again, I told myself…
“This trading strategy doesn’t work. Let’s try something else.”
This brought me to the world of price action trading, support and resistance, candlestick patterns, etc.
Again, the same pattern repeated itself.
I had some winners, some losers, and I gave up the strategy.
One day, I asked myself…
“Why does this always happen?”
“Why am I not getting any consistency in my trading?”
“It’s always a few winners and then the losses pile up and take everything away.”
Do you know what I realized?
The problem was me.
I was hopping from one trading strategy to the next.
My actions were inconsistent. And because my actions were inconsistent, I got inconsistent results (duh).
So, don’t make my mistakes.
If you want consistent results from trading, you must have consistent actions.
Stick to one trading strategy, master it—and then move on.
I remembered my first trading system.
It was a Bollinger Band mean reversion strategy.
You buy when the price is at the lower band and sell when it’s at the upper band.
The first few trades I did were winners, then the losses came and I figured this trading strategy doesn’t work.
So, I moved on.
Next, I chanced upon harmonic patterns.
I spent half a year learning how to draw these patterns (guess I’m a slower learner).
At the start, I had some wins but slowly, the losses kicked in and eroded all my profits.
Again, I told myself…
“This trading strategy doesn’t work. Let’s try something else.”
This brought me to the world of price action trading, support and resistance, candlestick patterns, etc.
Again, the same pattern repeated itself.
I had some winners, some losers, and I gave up the strategy.
One day, I asked myself…
“Why does this always happen?”
“Why am I not getting any consistency in my trading?”
“It’s always a few winners and then the losses pile up and take everything away.”
Do you know what I realized?
The problem was me.
I was hopping from one trading strategy to the next.
My actions were inconsistent. And because my actions were inconsistent, I got inconsistent results (duh).
So, don’t make my mistakes.
If you want consistent results from trading, you must have consistent actions.
Stick to one trading strategy, master it—and then move on.
11 Trading Lessons I’ve Learned From 11 Years Of Trading
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“Losing trades is like diarrhoea. It's a pain in the ass but eventually, you have to let it go." – Unknown
Can You Make Money Every Day From Trading?
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[Your trading strategy must have an edge]
Now, being consistent with your actions is important in trading.
But that’s not all because you must also have an edge in the markets.
You’re probably wondering:
“What does it mean?”
Simple.
This means your trading strategy must yield a positive result in the long-run.
If it doesn’t, then no amount of consistency will save you because you’ll end up a consistent loser.
Don’t believe me?
Then go down to the nearest casino and bet consistently.
You can be consistent with your risk management, bet size, games you place, etc.
In the long-run, you’ll still lose consistently because you don’t have an edge over the casino.
Agree?
And it’s the same for trading!
You must have an edge in the markets because without it, no amount of consistency, risk management, trading psychology, etc. will save you.
Now, being consistent with your actions is important in trading.
But that’s not all because you must also have an edge in the markets.
You’re probably wondering:
“What does it mean?”
Simple.
This means your trading strategy must yield a positive result in the long-run.
If it doesn’t, then no amount of consistency will save you because you’ll end up a consistent loser.
Don’t believe me?
Then go down to the nearest casino and bet consistently.
You can be consistent with your risk management, bet size, games you place, etc.
In the long-run, you’ll still lose consistently because you don’t have an edge over the casino.
Agree?
And it’s the same for trading!
You must have an edge in the markets because without it, no amount of consistency, risk management, trading psychology, etc. will save you.
Do you want to read the price action of the markets like a professional trader?
Then download a FREE copy of The Ultimate Guide to Price Action Trading.
You’ll learn how to better time your entries, “predict” marketing turning points, identify explosive breakout trades about to happen, and much more…
Click the link below and grab your copy, it’s free!
https://www.tradingwithrayner.com/ultimate-guide-price-action-trading/
Then download a FREE copy of The Ultimate Guide to Price Action Trading.
You’ll learn how to better time your entries, “predict” marketing turning points, identify explosive breakout trades about to happen, and much more…
Click the link below and grab your copy, it’s free!
https://www.tradingwithrayner.com/ultimate-guide-price-action-trading/
If you take care of your downside, your profits will take care of itself.
The Essential Guide To Trading Multiple Timeframes
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[The most important formula in trading…]
You’re probably wondering:
“How do I know if I’ve got an edge?”
That’s a good question.
You can’t tell if you have an edge based on chart analysis, risk management, psychology, etc.
Instead, you must be able to quantify your edge.
Here’s the formula…
E = (average gain x winning rate) – (average loss x losing rate)
Now, don’t panic because the formula is easy to understand that even a 10-year-old can do it.
Let me explain…
Let’s assume you have the following metrics from your trading…
•Average gain = $500
•Average loss = $400
•Winning rate = 60%
•Losing rate = 40%
Next, plug those numbers into the formula and you’ll get…
E = ($500 x 0.6) – ($400 x 0.4)
= $300 – $160
= $140
Now, what does $140 mean?
Two things…
#1: It means your trading strategy has a positive expectancy (otherwise known as an edge).
#2: In the long-run, you can expect to make an average of $140 per trade.
Now…
Your expectancy will vary from one trading strategy to the next (and from trader to trader).
It’s possible to have an edge with a low winning rate because your average gain is much higher than average loss.
Likewise, it’s also possible to have an edge with a higher average loss than gain because your winning rate is high.
You’re probably wondering:
“How do I know if I’ve got an edge?”
That’s a good question.
You can’t tell if you have an edge based on chart analysis, risk management, psychology, etc.
Instead, you must be able to quantify your edge.
Here’s the formula…
E = (average gain x winning rate) – (average loss x losing rate)
Now, don’t panic because the formula is easy to understand that even a 10-year-old can do it.
Let me explain…
Let’s assume you have the following metrics from your trading…
•Average gain = $500
•Average loss = $400
•Winning rate = 60%
•Losing rate = 40%
Next, plug those numbers into the formula and you’ll get…
E = ($500 x 0.6) – ($400 x 0.4)
= $300 – $160
= $140
Now, what does $140 mean?
Two things…
#1: It means your trading strategy has a positive expectancy (otherwise known as an edge).
#2: In the long-run, you can expect to make an average of $140 per trade.
Now…
Your expectancy will vary from one trading strategy to the next (and from trader to trader).
It’s possible to have an edge with a low winning rate because your average gain is much higher than average loss.
Likewise, it’s also possible to have an edge with a higher average loss than gain because your winning rate is high.