[Avoid this mistake when trading multiple timeframes]

Imagine:

You want to spy on your neighbour for god knows what reason.

Perhaps they are doing illegal activities, you’re a nosy park, whatever.

But there’s a fence built between you and your neighbour so you each have your privacy.

How do you overcome this?

Do you take a trip to space and spy down on your neighbour’s house?

Of course not!

Why?

Because you are “too far” out and the sights (or images) you see will not be relevant to your needs.

You’re probably wondering:

“What has this got to do with trading?”

Well, it’s the same concept.

If you want to glean insights from the higher timeframe, you can’t zoom out too far because the information you’ll get is not relevant to you.

I'm writing a new book on systems trading. But I can't decide on the book cover.

Can you vote your favorite design?

Here's the poll: https://99designs.com.sg/contests/poll/8985bdc8a2

Cheers

Do you want to read candlestick patterns like a professional trader?

Then download a FREE copy of The Monster Guide to Candlestick Patterns.

You'll discover how to "predict" market turning points and better time your entries & exits—even if you have no trading experience.

Click the link below and grab your copy, it’s free!

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Don't focus on goals like: I want to make $20k a month.

It will NOT improve your results.

Instead, focus on the process like:

I will follow my plan consistently regardless of the outcome.

I will stay out of the market when I don't have a setup.

I will journal my trades.

And etc.

Trend Reversal Trading Strategy Guide

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[The secret to using multiple timeframes like a pro trader]

I’ll be honest.

I didn’t figure it out on my own.

Instead, I learned it from Adam Grimes and Alexander Elder.

So here’s the “secret”….

When you trade with multiple timeframes, your higher timeframe should be between a factor of 4 to 6 of your entry timeframe.

Confused?

No worries, I’ll explain…

Let’s say for example your trading timeframe is the 1-hour timeframe.

So, which should you reference as your higher timeframe?

1. Take 1-hour multiply by 4, you get a 4-hour timeframe
2. Then, take 1-hour multiply by 6, you get a 6-hour timeframe

This means your higher timeframe can be between 4 and 6-hour

Does it make sense?

Here’s another example:

Let’s say your trading timeframe is the 5-mins timeframe.

Which should you reference as your higher timeframe?

1. Take the 5-mins multiply by 4, you get 20-mins
2. Then, take 5-mins multiply by 6, you get 30-mins

This means your higher timeframe can be between 20 and 30mins

A detailed guide on how to trade chart patterns like a pro even if you have no trading experience

Learn More 👉 https://www.tradingwithrayner.com/chart-patterns/

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4 Techniques To Profit From a Stock Market Correction

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Advice to new traders:

You’re not going to get rich quick

Don't hop from system to system

Have a planned exit for every trade

Limit your loss to a fraction of your capital

Your entry is only a small part of the equation

The early years are for learning, profits come later

A monster guide to candlestick patterns to teach you everything you need to know about candlestick patterns without memorizing a single one

Learn More 👉 https://www.tradingwithrayner.com/candlestick-patterns/

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[To be a pro trader, you must think independently ]

One of the reasons why most traders fail is because they ask questions like these…

–Is exponential or simple moving average better?
–Should I buy Tesla stock right now or wait for a pullback?
–What is the best RSI setting?

You’re probably wondering:

“What’s wrong with it?”

Well, it’s a sign you cannot think independently. It shows you want to be spoon-fed so you can skip the “work” and go straight to profits.

Unfortunately, it doesn’t work that way.

Why?

Because in trading, there’s no such thing as “best”.

What’s “best” for me might not be right for you because of our different goals, timeframe, personality, etc.

So…

If you want to succeed in trading (or in business), you must have the ability to think independently.

So instead of asking “what” or “when” questions, learn to ask…

Why.

This means you want to ask questions like:

–Why did he apply this trading strategy only to the stock markets and not FX?
–Why did he use a 200-day moving average as a trend filter?
–Why did he use a 40% trailing stop loss?

Do you see the difference?

These are 23 lessons I’ve learned from some of the greatest traders…

Learn More 👉 https://www.tradingwithrayner.com/trading-quotes/

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No edge.

No discipline.

No accountability.

No risk management.

No surprise why most traders fail.

How to use Moving Average to better time your entries, set proper stops, and ride massive trends

Learn More 👉 https://www.tradingwithrayner.com/moving-average-indicator-strategy/

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[To be a pro trader, you must be willing to get your hands dirty]

Now:

Just because you came up with a hypothesis to your question, doesn’t mean it’s correct.

That’s why as a professional trader, it’s your job to validate your trading ideas (or hypothesis).

You’ve got to get your hands dirty and do the work like backtesting, forward testing, etc.

For example, you might wonder:

“Is a 10-week breakout better than a 50-week breakout in terms of returns relative to risk?”

Well, to find out you can do a backtest across a universe of stocks using these two parameters, and see which offers a better result.

To make your life easier, here are some tools you can use for backtesting…

Amibroker – A backtesting platform
Norgate Data – Data feed
Upwork – A marketplace to find programmers

Still, most of you won’t do it because it’s easier to solicit an opinion than to actually do the work.

The problem is, you’ll never know if it’s true, or not—that’s why you must be willing to get your hands dirty and do the work!

Do you want to learn how to systematically beat the markets?

Then get your copy of The Essential Guide to Systems Trading (For Non-Programmers).

You’ll discover systematic trading strategies that work so you can beat the markets consistently even if don’t know a single line of code.

Learn More 👉 https://www.tradingwithrayner.com/essential-guide-to-systems-trading/

[Be realistic and know that you won’t make money every day]

Here’s the thing:

A trading strategy seeks to exploit certain market conditions in order to profit from it.

(For example, Trend Following makes money when many markets are trending together.)

But as you know, the markets are always changing. One moment it could be trending, the next, it could be ranging.

In other words, you’ll make money when market conditions are favourable to you.

When it isn’t, your trading strategy will lose money—which explains why you won’t make money every day (as market conditions change).

How Long Does It Take To Be A Profitable Trader?

Learn More 👉 https://www.tradingwithrayner.com/how-long-to-be-a-profitable-trader/

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Secrets To Trading Success (What I’ve Learned From The Market Wizards)

Learn More 👉 https://www.tradingwithrayner.com/what-i-learned-from-market-wizards/

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The markets can reward you for no rhyme or reason.

But if you think you have cracked the code, the market can take everything back and more.

If you don’t want that to happen, always manage your risk—and never assume you know it all.