As a committed trend follower, I see little merit in many of technical analysis indicators. There are some that have strong mathematical validity as trading indicators and these are typically the most proven and historically valid indicators available.
In this course, you are going to learn about trend following .One of the advantages of being a trend follower is that you don’t have to become an expert in the fundamentals of the underlying commodity or in ‘specialist’ technical indicators.
The technique described within this section is one that I personally developed to assist me in my own trading. It is based on the same investment principles that are utilised by some of the most successful traders in the world. Every trend trader adapts the basic rules to suit their trading style. I have also adapted the ‘rules’ and developed a personal and unique approach to the markets. It takes discipline and commitment but it works.
Trend following is trading based upon price.
Let’s say that you wanted to trade Cocoa. As a trend follower, you don’t have to know anything about where Cocoa comes from, weather conditions, etc. All the known facts about a commodity are reflected in the underlying price of the contract. That’s why I like to teach people to trade using trend following techniques.
The 2002 Cocoa chart below shows a powerful uptrend that made many traders a lot of money. I have indicated where the entry positions and exit positions would be using the market secrets trading system. Two of the three ‘long’ trades shown were profitable.
When you are ready to trade, you will learn where you can open an account with a financial bookmaker with as little as $500. I have always recommended that new traders never start with more than $10,000, no matter how much money they have; If a trader can’t learn to make money with $10,000, then they probably won’t make it with $50,000 either.
After you are doing well and want to add to your account later, you can; but learn to crawl before you walk, and walk before you run.
Also, before investing any real money you must learn to trade with demo money. This is how you can practice and learn to trade without any real risk.
This section includes a detailed worksheet that will enable you to paper-trade and effectively measure your trading skills before committing real money. Paper trading encourages you to commit yourself to a particular trade whilst maintaining an emotional distance from the outcome.
You might find this hard to believe but when you first start trading, you’ll probably spend less than 30 minutes a day, maybe an hour, on your trades. Until you start to paper-trade, you won’t understand just how little time it really takes.
This is another aspect of trend following that is not widely acknowledged. The methodology used allows traders from all walks of life the opportunity to make a lot of money without changing their current work practices. The Spread Trading Secrets system allows you to profit and practice whatever your personal situation.
You might be wondering what kind of equipment and supplies you need. How about a telephone and a computer with internet access. There is no special software required and no expensive real time trading data. That’s all you really need. I even know some successful traders that don’t even own a computer; they trade using paper records or access the internet from their local library. The only barrier to entry in this business is being committed.
As a young sportsman I recall some words of advice given to me by a coach. He said
“Before you can be great you have got to be good. You can’t be good until you have been bad. Before you are bad you have got to try”
This is the essence of any trading philosophy. To be a great trader you have to actually start trading.
In this trading guide, you will learn a proven trading technique. Once you learn to trade this correctly, you could make a comfortable living in the financial markets. Some may even do much better. Importantly, the principles outlined in this book will serve as a solid foundation for your ongoing education to become a great trader.