Lack of Funds for Traders

My biggest obstacle in trading has been the lack of funds.  And I do not think that I am alone in this!

Most traders I believe, do not have enough funds, to trade properly.  And I don't think it matters if you are a   Forex trader, futures trader or heck even a stock trader.

But I do know for me, this has been my biggest problem.

What I would typically do is tighten my stops real tight so that I wouldn't lose a lot of money.  And that may have been true....I did not lose a lot of money on THAT trade.  BUT......I lost more times so of course that ultimately meant I lost more money.

Well I just wrote about the Lack of Funds for Traders on my other blog and I personally think this is a universal problem for new traders especially.

And I have had to deal with this for years.......never coming up with the proper solution.

Well what if we could fix the problem?  What if the answer.....was already a part of what we already do on a daily basis?

You see that's what I was looking for.  Not another income or funds from having 2 jobs.....just another income.

Well anyway you can read about what I wrote on the other blog about Funds for Traders and who knows....maybe you will agree.

In any case...have a very Merry Christmas....and a Happy and PROSPEROUS New Year!!!!

Introducing Our New Sister Sites

We have started two new sister sites.  Now you may or may not be interested in them.....but we never know what our visitors are into, as far as there business lives go anyway.

So the sites are listed below and we would appreciate it if you just visit them.....even if it's out of curiosity.  They are new and we can get better search engine results if we get incoming clicks from other sites.  It shows the search engines that they have relevancy.  So check them out if you are curious....or just have some time.

B2B Sales Leads - This site offers our favorite Sales Leads Software to businesses and is a basic blog site that will only have a few pages.....but will then have a lot of blog updates.  The software is fantastic for those of us who are trying to grow a side business or a full time business.  I bought it for my aviation business over a year ago, but now use it for an insurance business that I am starting.

Lots of Sales Leads - This site is more geared towards people who want to earn extra income.....or a full time income.  It is the same software, however there is a lot more information about starting a second income stream....and a residual income at that.  There are many ways to grow this business but I prefer to market over the Internet and to do direct mail campaigns.  This way I do very little work on it during the week, and yet the sales can come in on there own during the week automatically.

Anyway, we wanted to introduce them to you.....just in case you are remotely interested.  And we could use the clicks to get the sites kicked off in the right direction.

Thanx.....and I wish you the very best in your trading!

Really Long Term Predictions for the Financial Markets

Really Long Term Predictions for the Financial Markets?  What markets?  And how long term are these predictions?

You and I know that everyone wants to know where the market is going next.  Traders and investors spend small fortunes trying to figure out what will happen next in the markets.

And after what America has gone through with the latest "recession".......well let's just say that it seems to be on everyone's mind.

Well in the Christian Trading Room.....we talk about the markets and where they will go next.  But usually we are more concerned about the next 5 minutes or the next hour or so.  But traders will be traders and we talk about lots of subjects while we trade during the day.

Yesterday, one of our great Christian brothers popped into the room and he was talking about a You Tube video that he saw and he shared it with us.  Now I didn't watch it right away personally but I was watching the discussions about the video.  Then later when the markets were getting ready to close, I pulled it up and started to watch it.

All I can say is WOW!!!!!

I found this so interesting that I just had to share it with all of you......so I embedded it below so you can find it easily.

So before you check it out for yourself.......think about this for a second.

We are all born with some sort of religion.....or beliefs....and basically it comes from our culture and parents.  But deep down inside of each person is a little voice that lets us know that there must be more to this life and there must be some sort of higher being and creator.

Now out of all the religions that there are in the world, Christianity is set apart because God told us that He would show us things before they happen......to prove that He is God.  And we find all sorts of these predictions or prophesies throughout the Bible.

What I am always amazed at though is how precise these prophesies are.....especially about the birth and crucifiction and Resurrection of Jesus......way before He ever came to earth.

And the really wild thing is the day and age that we are living in RIGHT NOW!!!!!  You see the last book of the Bible tells us what will happen before Jesus comes back.  And what is really crazy is that it flat out tells us that when these things start to happen.......that generation will not pass away until all of these things come to pass.

That is so crazy......I mean we are talking about things that God said through the Bible that were foretold thousands of years ago and when we read that book of the Bible.....we see these things happening right now.  And not obscure things......they are all over the front pages of newspapers and all over the news sources on the internet.  It's kind of spooky in a way.....and yet how exciting to be living in this day and age.

So now watch this video and see how 9/11 was spoken about in the Bible......and see how our politicians spoke the very words that were spoken about thousands of years ago.  That's right......9/11!!!!

But as you watch it.....think about where America's financial system will go in the next few months if America does not take heed to what has been foretold.....and although I personally think it will be months, it will certainly shock you soon......even if I am wrong about months.

And I am wrong when I trade believe me.....but I always have that planned into every trade :)

So here it is.....and one quick note.....it starts off a little slow and you may be tempted to hit stop......but I am telling you the pace picks up and goes faster and faster.  It gets so interesting that you will find your self glued to the screen.  And when you start to get into it.....you will not be able to stop it and most likely you will have goose bumps as well.  So.....check it out!!!

Wow right?  And think of this for a minute.....Adam and Eve did not listen to God.....but instead did their own thing.....and we know how that turned out.

Back in Noah's day the people were doing what they wanted to do and practiced all sorts of immorality and they mocked God....and did not change.....and we know how that turned out.

And then there was Sodom and Gomorrah....and again the people rebelled against God and practiced all sorts of immorality and they refused to change....so God destroyed them with fire.

And now look at America......we kill our babies and we again practice all sorts of immorality and......now some even mock God, but certainly the majority is not changing.  So now that we have had a warning will America change?

Will we personally change?

Will God change His mind......and NOT do what He say's He will do?  Not likely!!!

Folks.......if we do not change I can tell you which way the markets will go in the longer term.  In fact from a technical view......I have been telling my kids "not" to even think about buying houses now.....and pay off debts and save.  Because in my view of the markets.......the recession that we have just witnessed is a tinker toy as compared to what is coming down the road.  And now after watching this video.....I am convinced even more.

Oh sure everyone is talking about the recovery of the markets.......but the market is so weak technically.  It is just crawling and struggling to keep going.

So what will we do?  Well personally as for me and my house......we shall serve our God.  Now more than ever it is so critical for all of us to look into what the Bible is saying and make up our minds and we need to do it soon......because all of the earth quakes and tornadoes and weather changes is no accident.  

And it will get increasingly worse.....so time is running out.

Well.....you know how to find us if you have questions.  Just pop into the chat room or contact us through the Contact Us page and any one of our members would be happy to answer your questions or concerns.

And don't be scared of the unknown.....because it is not unknown......it is only the beginning!

May God richly bless you and your family!

Disclaimer

Can an Algorithm be Visual

Folks who know me....know my charts right off the bat.  And usually because I have too much stuff on them.....and I am certainly not discounting that fact.

However my journey has a goal and I have a vision in exactly what I want from my charts and basically it is an algorithm.......but it is also a visual algorithm......if there is such a thing.

So in the interim period of time I do have 2 indicators at the bottom of my screen and they help me tremendously with divergence and trend "weakening" forecasting and I am used to it.  But I have to be perfectly honest with myself......it could be really confusing for a new trader.

Well yesterday I was helping a new trader from the fund that I am part of.....and he just had to have my charts.. LOL!

So he took a Genesis Trade Navigator free trial and I gave him my library of indicators that I had built and I helped him set up his charts.  Well we did not even finish....and I had to leave....but when I left he was set back a little.  Those darn little diamonds are pretty cool when you couple them up with the Hull Moving Average.

He changed his diamonds to arrows......but I think his whole life changed yesterday....LOL.

So anyway this morning I was thinking of what my ultimate goal was and I turned off the two indicators at the bottom of my charts and looked at Friday's EURUSD short.....which by the way I got into really late.  I was looking for a person on the internet helping out one of our members and I saw price take off on the other screen out of the corner of my eye.

I actually just hit sell because I was waiting for it.....but I just wasn't paying attention.  So on the 60 min chart you can see the entry and it hit the 6:1 reward risk target by a pip.....but the 4:1 target was rock solid.  I did get the 5:1 by accident I guess as I had a 100 pip limit exit on in case I wasn't looking.....and I wasn't looking when it hit.  So accident...good planning....what ever.  Just another trade...... just so we keep the emotions under control!

Okay...let's look at the chart below.  First we look at the screening chart which in my case is a 240 minute...or 4 hour chart.

Click on image to enlarge

So we know the dominate trend is down and we know we were in a corrective pull back.  The A,B,C could be argued....and I am not arguing with the market at all....or anyone else.  But at the very least we had a double bottom and we knew the pullback would be significant.  And based on the fact that price penetrated the 21 SMA we pretty much knew the 89 EMA would be tested.  In short.....we were expecting the down trend to make another push down.

But the corrective up move was also significant enough to trade as this is a 240 min chart and the trade would actually take place on a 60 min or even a 15 min if we wanted to.

But the point of this blog post is....can an algorithm be visual?

Well......we have indicators and we have logic.  And the logic filters out bad trades and only lets us take the good trades. 

So the rules are:

1. We need a BUY or a SELL indication which is a Cyan or Magenta Diamond.  And usually they are right on time.....or early!
2. The HMA must agree...and also be Cyan or Magenta and it is very fast also.
3. AND the bars need to agree also....so they need to be Green or Red
4. And lastly....at least two time frames must both agree!  So if they do not agree totally on the higher time frames...we reduce the time frames...but they must agree.

So if I am not mistaken....this is pretty much a very simple algo in my mind.....and if I am stretching it.....it is at least logic.  But my goal was for it to be colors...a trigger....and filtered.  And something that almost anyone could master.  I think we are getting close :)  We are capturing at least 80% of the value of the indicators being used.....and bringing it up to the price bars.....to keep us focused on price!!!!

Anyway....lets look at the 60 minute chart and see how it worked out.

Click on the image to enlarge

Well the first thing you will notice is the huge down swing....and wow.....you got in really late Dave!!!!

Ha,ha,ha.....yes I did LOL.  But I was helping someone and what I was doing at the time was important.....but we also have to accept that we were expecting this move and we were expecting a re-test of the previous low so my jump into it was of course a higher risk then my yellow strip down my back would normally allow.......but I kept my finger on the mouse.  And it did not take very long at all to get to the break even trigger line (at 1.2730 or 1:1 reward to risk)....and after that it was a free trade.

But let's look at the corrective upswing.  We got a Cyan diamond and the HMA turned Cyan.....but we did not get Green bars at first.  Price then hit the 21 SMA and the bar turned green but we had our face right up against the 21SMA.....so why would we trade that?  And immediately.....price stalled but it stalled above the 21 SMA...which is the white line.

Now price settles in and is using the 21 SMA for support.....and then a Cyan diamond pops up....on the bar...but slightly early for the buy.  We needed the bar to close to verify.  And on the next bar....it turns green and we have all of our rules verified....and there you go.

Now as the EURUSD does....we had a little down spike 5 bars later that triggered the Parabolic SAR.....and in my case would take me out because I go to break even when my trigger tells me to......but the very next buy signal would have taken us to the top.

Now to clarify the diamonds.....they are simply a cross over of a SMA on CCI.  SO because its CCI driven it is very fast....so fast that many times it's early or right on.  SO we do not close a trade immediately if one pops up....and we are only interested in the signals in the direction of our trade.....but the opposite signals...in this case the sell signals....are a heads up.

And if they agree with price candle's, the HMA....or what ever we use to determine a change of direction.....well then it is an awesome heads up indeed.

Now this looks really clean with out indicators on the chart.  But if you are experienced enough to use indicators as well.....then I would use them.  I started to trade a new market....well actually it is an old friend that always tricked me.  And that was about 8 years ago and no matter what indicator I used that darn market would fake me out all the time.

Well I was trading it on the simulator to prove to myself that I knew more today then I did 8 years ago.....and it was going and going and going.  I knew it was going to make a pullback.....but it just seemed like it wouldn't quit.

I was in it on a long position and yesterday when I woke up I turned on the charts and the thing spiked up.....and ADX and CCI was screaming at me that this was the end.  I got the sell signals and the ADX and CCI conditions made me tighten my stop way up close anyway and I was taken out.

Then on the next bar the bar turned red.....and I was triggered into a short.  And it was so close to the top that my risk was right in line with the rules.

Within the first hour I was triggered into break even and the entry was never challenged.  So what does that all mean?

If you use the ADX....which everyone says is a lagging indicator.....to determine the strength, or more importantly the weakness of the trend.....and you use the CCI to determine the entry and also divergence....they can drastically assist you in getting into a swing at the right time.  And what I mean at the right time.....I mean impulse power that drags us into profits and not challenge our stops....or even our entries in most cases.

I agree with all of the pro's that price is the fastest indication of direction, strength....etc.  But lets also remember that only 1 or 2 of us out of every 10 traders will actually make it.  SO we have to strive to be smarter and more efficient at our trading.  We have indicators to help us....and I agree they can also distract us.

But we also have computers and that gives us such an edge over all of our predecessors.  So use the darn thing.  Make your charts work for you....and make them work hard.

And always, always......always.....trade it on a simulator until you are absolutely convinced that you have an edge and your stats prove it.  If you can't prove it with your stats.....you have no business trading real money.

And lastly.....in my humble opinion and yes it is just an opinion of mine.....risk management and money management is the most important aspect of trading.  If you constantly take care of managing your risk and your money.....with a vengeance.....your profits will take care of themselves.

Well......until next time....may God richly bless you and your family!!!!!