Top Dog Trading

Trading is a business of probability. Every trader will take losses, so we need to use protective stops.

Many traders take profits quickly but hold on to losing trades - it's human nature. We take profits because it feels good, and we try to hide from the pain of losses.

3 BAD TYPES OF PROTECTIVE STOPS:

* Above/below support/resistance.

This can be previous highs/lows, pivot levels, Fibonacci, etc.

Too obvious:

Stop running.

S/R aren’t lines but zones.

* Percentage move against entry.

Meaningless with regard to the chart and price action.

HOWEVER, #1 rule: Must be within your money management rules: No more than ½ of 1% of your trading account.

* Volatility stops

 ATR

Parabolic SAR

Some traders use this technique because they say you have to allow room for the “noise of the market.

Seems logical, except for one huge problem:

It violates one of the most well-known rules of trading:

“Cut your losses short and let your winners run.”

So how do you keep that rule and still allow for the noise of the market?

You don’t! You need a way of identifying the noise of the market and trade when it is removed from price action so you get more low-risk, precise entries.

A BETTER ANSWER: Stops go where you’re wrong

When the reason for your trade no longer exits, then your trade should no longer exist.

The best risk management is an excellent entry.

For me, it’s always a Cycle High/Low.

Email me to get info on my Cycle indicator at [email protected]

Gives laser-sharp accuracy so risk is only the range of a bar to a bar and a half on every trade.

Get my free gift for you, for FREE, Top Dog Trading’s

“Top 10 Trading Rules for Success.”

These are 10 things I changed in my trading to become successful over the last 50 years. They’re also the top 10 things that have helped my students shift from losing money to making money.

Bottom line, no general theories or abstract ideas here. This is the practical stuff that can really work to bring real and dramatic change to your trading results.

It’s a mini-course that contains a pdf Special Report and 3 videos. Get right now by simply going to: http://www.onlinetradingtowin.com/tenrules

Go get it for free while the show is still new.

Many say there’s no such thing as a leading indicator. They even take pride is saying they only use pure price action and volume.

I’m not sure why they think that’s so impressive:

* They say that all indicators are lagging and that they only plot what’s already been done in the market … and that’s true.

* But that’s also true of price action.

* And that’s also true of volume.

So what is the leading indicator and why is it a leading indicator of what the market is likely to do in the future?

The answer: Momentum is a leading indicator.

* Here’s why: Not magical, but mathematical.

* Example of you walking North (you could turn around and go South in one footstep) vs train going north (because of its momentum, it can’t turn around in the distance of one human foot step)

* In Chicago Floor example.

What IS momentum?

* Velocity times mass.

* Speed of orders and volume of those orders.

* But volume of individual orders to find the whales.

Is momentum always a leading indicator?

* No, nothing is, and so there are certain signals called “momentum shift signals” that are the only times we have a high probability indication of what the market will do in the future.

* Many momentum indicators to choose from.

* Email me at [email protected] and ask for my Cycle Indicator. Make sure you mention that you heard about this on the podcast.

* I’ll get that info to you for free:

* Live webinar

* Video

* Depending one when you’re listening to this.

 

Get my free gift for you, for FREE, Top Dog Trading’s

“Top 10 Trading Rules for Success.”

These are 10 things I changed in my trading to become successful over the last 50 years. They’re also the top 10 things that have helped my students shift from move

from losing money to making money.

Bottom line, no general theories or abstract ideas here. This is the practical stuff that can really work to bring real and dramatic change to your trading results..

It’s a mini-course that contains a pdf Special Report and 3 videos. Get right now by simply going to: http://www.onlinetradingtowin.com/tenrules

Go get it for free while the show is still new.

Improving your trading with a New Year's Resolutions, or any other time!

* Marcus Lemonis, star of CNBC's "The Profit," doesn't wait until the beginning of the year to make resolutions:

* "I don't know that I make specifically New Year's resolutions. I think I typically make a new resolution when something bad happens or I have a failure or something doesn't go the way I think it should,"

* "I almost have this reset and I don't use the calendar year as a time to do that. I use a mistake that I've made or a decision that I made that didn't go right as a time to do that."

According to Psychology Today, New Year’s resolutions can make some people feel depressed, unnecessarily stressed out, or disappointed in themselves.

WHY?

Because most use New Year's resolutions as “goals” and big ones because they have the target of one year in advance. That's too long to wait for a reward, in order to keep a person motivated

Should your goals (resolutions) be "big" or “realistic?” You need BOTH.

* Your long-term goal is your resolution.

* Your short-term realistic goals are habits.

* Long Term:

* Big goal required for inspiration (not motivation) to fill you with the energy of EXCITEMENT. How excited are you about that goal? Does it get you pumped up with energy? Or are you okay if it doesn’t happen?

* Short Term:

* Trading examples:

* Improve your win/loss ratio.

* Improve your risk/reward ratio.

* Cut out a bad trading habit:

* Over trading.

* Removing your stops when they’re hit.

* Taking profits too soon.

* Best way to do all these things and more is to get my Free “Top Dog Trading’s Top 10 Trading Rules for Success” and work on one rule per month.

* Go here to get it for FREE:

http://www.onlinetradingtowin.com/tenrules

* Realistic on the day to day basis.

* Need quick wins – this is what keeps you motivated.

* Write down all roadblocks that could occur and how you’ll deal with them.

* Need accountability. Get a partner you report to every day that you did or didn’t do your habit. Make sure it’s someone who will hold you accountable and not just say “that’s okay.” Not a "mommy," but a drill Sergeant!

 

Get my free gift for you, for FREE, Top Dog Trading’s

“Top 10 Trading Rules for Success.”

These are 10 things I changed in my trading to become successful over the last 50 years. They’re also the top 10 things that have helped my students shift from move

from losing money to making money.

Bottom line, no general theories or abstract ideas here. This is the practical stuff that can really work to bring real and dramatic change to your trading results..

It’s a mini-course that contains a pdf Special Report and 3 videos. Get right now by simply going to: http://www.onlinetradingtowin.com/tenrules

Go get it for free while the show is still new.

Which is better? Day trading or swing trading?

Each has advantages and disadvantages. Here's a comparison chart to help you decide which may be a better fit for you:

DAY TRADING DEFINITION:

* In and out during open outcry hours.

* Use intraday charts.

SWING TRADING DEFINITION

* Hold 2-14 days.

* Use daily and weekly charts.

DAY TRADING ADVANTAGES:

* No overnight risk.

* Overnight you have peace of mind.

* Can compound your money faster.

DAY TRADING DISADVANTAGES:

* Requires a good attention span.

* May need a larger account if trading stocks.

* Ask your broker about the pattern day trading rule.

* May be more stressful while you’re trading.

* Need to be “quick on the draw” and make decisions fast.

* Can lose money faster!

* Can rack up commission costs faster.

* Can’t do it during your “day job.”

* Exceptions:

* Spot Forex.

* Trading before work.

* Need better (more expensive) technology.

* Computer

* Internet connection

* Software

* Execution platform

SWING TRADING ADVANTAGES:

* Can do it whenever it fits into your schedule.

* Can take time to analyze the charts and other factors and make decisions in a more relaxed manner.

* May be less stressful during the day.

* Good attention span not required.

* Don’t need the best technology so less expensive overhead cost.

* Can profit big from overnight moves.

SWING TRADING DISADVANTAGES:

* Potentially make less money in the same amount of time (assuming success).

* Trading options can help you compound your money faster.

* Exposure to overnight risk.

* Overnight you may have trouble relaxing when you’re not watching your positions.

* Smart to hedge with options.

* May need a larger account because of the larger risk per trade based on the range of daily bars.

Get my free gift for you, for FREE, Top Dog Trading’s

“Top 10 Trading Rules for Success.”

These are 10 things I changed in my trading to become successful over the last 50 years. They’re also the top 10 things that have helped my students shift from move

from losing money to making money.

Bottom line, no general theories or abstract ideas here. This is the practical stuff that can really work to bring real and dramatic change to your trading results..

It’s a mini-course that contains a pdf Special Report and 3 videos. Get right now by simply going to: http://www.onlinetradingtowin.com/tenrules

Go get it for free while the show is still new.

In today's episode I interview my friend Fausto Pugliese from CyberTradingUniversity.com

Fausto Pugliese was one of the original Day Traders of the early 1990s and one of the first independent traders to take advantage of the Direct Access Trading technology boom in 1987.

He acquired a wealth of knowledge from years of hands-on experience, beginning in the trenches, working side by side with some of the most practiced and successful traders in the industry. After spending considerable time mastering the art and discipline of day trading, Fausto chose to start his own company to share some of his highly-sought-after wisdom.

Fausto is the 12-time champion at the World Traders Challenge, and is the author of "How To Beat Market Makers At Their Own Game – Uncovering the Mysteries of Level III."

Here are just some highlights from the interview:

* Why he likes day trading.

* How to get an edge in trading using Level III.

* The difference between Level II and Level III.

* It makes a huge difference to have the right type of brokerage firm.

* Why trades pre-market.

* Why you must invest in the BEST tools to be successful in trading (hint: not the "free" tools).

* High Frequency Trading (HFTs).

* The biggest fallacy is that no one makes money trading, because many people do.

* Why it's important to be a self-empowered trader and not rely on others for trading signals.

* Why you need to watch "Iceberg orders."

 

* Fausto's favorite book:

* "How to Beat Market Makers at Their Own Game" by Fausto Pugliese.

* "The SOES Bandit" by Harvey Houtkin.

* Fausto's favorite quote:

* "Losing money is a good thing because you know you lost it and you won't do that again."

* Fausto's favorite trading resource:

* Level III Quotes.

* Nasdaq Trader.

* Fausto's Special Offers:

*  Live Online Trading Course:

* https://www.cybertradinguniversity.com/student-portal/go/fbc

* Tape Reading Crash Course:

* ctu.co/trial

 

Get my free gift for you, for FREE, Top Dog Trading’s “Top 10 Trading Rules for Success.”

These are 10 things I changed in my trading to become successful over the last 50 years. They’re also the top 10 things that have helped my students shift from move

from losing money to making money.

Bottom line, no general theories or abstract ideas here. This is the practical stuff that can really work to bring real and dramatic change to your trading results..

It’s a mini-course that contains a pdf Special Report and 3 videos. Get right now by simply going to: http://www.onlinetradingtowin.com/tenrules

Go get it for free while the show is still new.

When learning a new trading method, stick to it exclusively without adding anything else you’ve previously learned.

I see this when students send me their charts and there’s lots of other stuff on the charts.

Therefore they are not trading my method. They’ve created their own hybrid method and I haven’t tested that.

Educated Amateurs

Step one is to “unlearn”

* Beliefs in mind:a. Trade in direction of trend of the longer time frame.

b. Overbought and oversold.

c. Trend is higher highs and higher lows

* Habits in Behaviors

Common saying told in martial arts circles of people who’ve studied martial arts and then go to a new master.

* Tea example.

* Martial arts example.

 

Get my free gift for you, for FREE, Top Dog Trading’s “Top 10 Trading Rules for Success.”

These are 10 things I changed in my trading to become successful over the last 50 years. They’re also the top 10 things that have helped my students shift from move

from losing money to making money.

Bottom line, no general theories or abstract ideas here. This is the practical stuff that can really work to bring real and dramatic change to your trading results..

It’s a mini-course that contains a pdf Special Report and 3 videos. Get right now by simply going to: http://www.onlinetradingtowin.com/tenrules

Go get it for free while the show is still new.

Is Bitcoin the Next Big Thing?

CLICK HERE FOR THE FREE BITCOIN SPECIAL OFFER

In the last episode I invited you to write me with your questions and the #1 question that came in was about cryptocurrencies.

When you think of cryptocurrencies, most people think of Bitcoin. But there are 1,000s. I’d say 95% of them are ripoffs, or at least junk. Ethereum and Litecoin and a handful of others may have some future, but the big daddy is Bitcoin and that’s what the world is rallying around.

I wasn't an early adapter of Bitcoin years ago, but now my opinion is that Bitcoin is not only here to stay, and we may be at the BEGINNING of a financial revolution:

* The CME Group, set a date this morning for the start of bitcoin futures trading – Monday, Dec. 18

* The Chicago Board Options Exchange plans to launch its own bitcoin derivatives trading early next year.

* John Deters, chief strategy officer of CBOE told CNBC:

"We've really come to the conclusion recently that that cryptocurrencies are here to stay."

* CBOE Futures Exchange announced it’s filed a product certification with the CFTC to offer its own bitcoin futures trading. It too hopes to be underway by the end of the year.

* LedgerX won CFTC approval to offer swaps and options on Bitcoin.

* The New York Stock Exchange began a real-time index that tracks the valuation of bitcoin.

* In an announcement on Wednesday Nasdaq said it will launch bitcoin derivatives products in the first half of 2018.

* PayPal cofounder told FOX Business that bitcoin is "very underestimated."

* PayPal announced a partnership with Coinbase to allow merchants to accept Bitcoin in place of US dollars.

* Amazon.com has registered at least 4 cryptocurrency-related web domain names, including "AmazonBitcoin.com"

* Bitcoin is uncorrelated to any other asset. Funds may add some bitcoin as a non-correlated hedge to smooth out volatility in their portfolio.

So yes, I'm now personally convinced Bitcoin is not only legitimate, and here to stay, but I believe we're at the very BEGINNING of what could be astronomical growth.

BITCOIN SPECIAL OFFER:

If you think it’s right for you, then you may be able to earn an EXTRA 10% on Bitcoin!

I setup my Bitcoin account through Coinbase because they are the leading Bitcoin platform and the first regulated bitcoin exchange in the United States.

Coinbase is also the company that the NYSE uses to base its valuation of the NYSE bitcoin index because of Coinbase's commitments to transparency, security and regulatory compliance.

HERE'S HOW YOU GET YOUR 10%:

Buy or sell $100 of digital currency (or more) through Coinbase, and you and I each earn $10 of free Bitcoin!

(yes I have a financial incentive, but you get the same benefit I do).

If you buy or sell more than $100, you still only get the $10 of free Bitcoin, so the "10 percent" is based on a transaction of exactly $100.

That’s a high percentage, so as the price of Bitcoin goes up, Coinbase my end this promotion.

Also please note this offer is not available in all countries.

Bitcoin is VERY speculative and may be very risky. I'm not giving any specific recommendation as to whether you should invest in it or not. If you do want to invest in it, then only use money that you could afford to lose. You also need to know that bitcoin is extremely volatile. It’s made short-term swings of 20 to 30% or more so if you don’t have the stomach for that, it may not be for you.

TECHNICAL ANALYSIS HERESY OF THE DAY:

Don't trade in the direction of the trend of the higher time frame.

* What do I mean by multiple time frames?

* The traditional teaching.

* Why that isn’t “optimal”

* Why you could get away with it in the past.

* Why you can’t get away with it now.

* My “heretical” teaching.

* Use momentum instead of trend on the higher time frame to confirm your trade on the lower time frame.

 

Get my free gift for you, for FREE, Top Dog Trading’s “Top 10 Trading Rules for Success.”

These are 10 things I changed in my trading to become successful over the last 50 years. They’re also the top 10 things that have helped my students shift from move

from losing money to making money.

Bottom line, no general theories or abstract ideas here. This is the practical stuff that can really work to bring real and dramatic change to your trading results..

It’s a mini-course that contains a pdf Special Report and 3 videos. Get right now by simply going to: http://www.onlinetradingtowin.com/tenrules

Go get it for free while the show is still new.

In today's episode I interview long-time stock trading friend Ken Calhoun from "Trade Mastery."

Ken day trades and swing trades, looking for stocks that are breaking out with strong moves.

Ken Calhoun is the president of TradeMastery.com and StockTradingSuccess.com (with Steve Nison). Having provided online training to active traders from over 32 countries since 1999, he is an internationally published trader who’s earned industry acclaim for his professional trading systems.

Mr. Calhoun has been featured in leading trade publications and events such as Technical Analysis of Stocks and Commodities magazine, Active Trader magazine, Equities.com, TheStreet.com, Equities.com and CBS MarketWatch.com. He is a graduate of UCLA and has traded millions of dollars of stocks, ETFs and more during his active trading career.

Here are just some highlights from the interview:

* The P&L is the best "indicator."

* How he day trades and swing trades equities.

* Which days of the week he finds his best trades.

* The qualities he looks for in a good stock trade.

* Why "getting paid" is the most important aspect of trading.

* When he holds a trade overnight and when he doesn't.

* The ONE trade setup that he would trade if he could only trade one strategy.

* Why he enters on chart patterns but exits on the "P&L."

* Ken's favorite book:

* "Beyond Candlesticks" by Steve Nison.

* Ken's favorite trading quote:

* "Trade wide, not deep."

* Ken's favorite trading resources:

* eSignal

* www.Finviz.com

* Ken's Special Offer:

* Ken's Free Saturday Trading Webinars:

* http://TradeMastery.com/free/

* Ken's web site:

* http://trademastery.com/

 

Get my free gift for you, for FREE, Top Dog Trading’s “Top 10 Trading Rules for Success.”

These are 10 things I changed in my trading to become successful over the last 50 years. They’re also the top 10 things that have helped my students shift from move

from losing money to making money.

Bottom line, no general theories or abstract ideas here. This is the practical stuff that can really work to bring real and dramatic change to your trading results..

It’s a mini-course that contains a pdf Special Report and 3 videos. Get right now by simply going to: http://www.onlinetradingtowin.com/tenrules

Go get it for free while the show is still new.

My very first guest to be interviewed on this podcast is Etienne Crete from "Desire to Trade."

He swing trades the Forex market, watching 15 pairs on multiple time frames, with an emphasis on looking at significant support and resistance zones and Bollinger Bands.

His initial interest in trading began as a university student and he shares with us the biggest lessons he learned during his 2 year journey to becoming a successful trader.

Here are just a few of the things discussed in this episode:

* Focus on the process, not just your expectations.

* How he incorporates his trading style with his lifestyle and love for travel.

* "The best winning strategy you can write on a napkin!"

* Why trading on an iPad didn't work well for him.

* After interviewing nearly 100 traders on his "Desire to Trade Podcast," what he found they all have in common.

* What pivotal event turned his trading around.

* Etienne's recommended books:

* "The Daily Trading Coach" by Brett N. Steenbarger.

* "Psycho-Cybernetics" by Maxwell Maltz

* His favorite trading tool:

* Using Trello.com to post his trading journal. Get more information here:

* https://www.youtube.com/watch?v=GyeFNCfomOA

* Special Offer:

* His Free One-Page Trading Plan Template:

* https://www.desiretotrade.com/topdogbonus

* Etienne's web site:

* https://www.desiretotrade.com

* Etienne on social media:

* https://www.youtube.com/c/desiretotrade

* https://www.facebook.com/groups/desiretotrade

* https://twitter.com/desiretotrade

 

Get my free gift for you, for FREE, Top Dog Trading’s “Top 10 Trading Rules for Success.”

These are 10 things I changed in my trading to become successful over the last 50 years. They’re also the top 10 things that have helped my students shift from move

from losing money to making money.

Bottom line, no general theories or abstract ideas here. This is the practical stuff that can really work to bring real and dramatic change to your trading results..

It’s a mini-course that contains a pdf Special Report and 3 videos. Get right now by simply going to: http://www.onlinetradingtowin.com/tenrules

Go get it for free while the show is still new.