Six Factors for Success
Saturday, November 1, 2014 09:00 MDT » 11:00 EDT
Our guest speaker for the November 1st Denver Trading Group meeting is Corey Rosenbloom from Los Angeles, CA. Corey's presentation will cover several key topics that are the foundation for successful trading:
1. Strategy (a broad sense discussion)
In order to be successful, a trader requires a core knowledge of trading tactics and strategies. Often these can be simple methods centered on "what moves price" and would include favored indicators, price patterns, markets traded, timeframes, and other factors that can be codified in a business and trading strategy plan. This phase is the "Knowing What to Do" component and can be as detailed as the trader desires, depending on experience level (from simple "pro-trend retracement" strategies to complex programs incorporating many types of set-ups deployed on many markets).
2. Psychology (ability to implement rules in an uncertain environment)
It's not enough to "Know What to Do." A successful trader must implement the edge-based strategies as they trigger opportunities in the market movement. This area addresses the mental world and achieves the "Do It" component (with minimal doubt and hesitation). Simple strategies often help traders execute the plans better than complex ones. In this component, balancing greed and fear - and other emotional factors - is key.
3. Ability to Adapt (recognize when changes must be made as market structure/environment changes phases with respect to the strategy)
A successful trader can have a high-probability, edge-based strategy, have the ability to implement it in real-time without hesitation, but then fail when market conditions or market structure changes. In this area, we must objectively quantify whether a successful method has ceased working as the market environment - namely volatility, trend, and structure - change over time.
4. Broader Narrative (big picture framework)
The "Narrative" is a longer-term story or framework for conceptualizing the market. It focuses on the main three or four factors moving price and creating money flow across the markets (and the individual market you trade). Correctly assessing the narrative increases confidence and places the trader on the correct side of money flow (failing to understand this component can result in poor trading performance).
5. Game-Planning (setting-up the probabilities for the next series of trades)
Each evening, or each weekend, a trader must plan the actual strategies and positions based on charts, price levels, indicators, and other factors. The goal is to create a "Dominant" and "Alternate" Thesis which is a collective summary of the most likely price swing (movement) for the next day or next week.
6. Real-Time Implementation (taking action)
Finally, a trader must put into practice what he or she has studied and planned. Intraday structure, real-time trade triggers, stop-losses and targets are all part of this phase of trading. The goal is to execute efficiently based on real-time developments that confirm either the Alternate or Dominant game-plan (or thesis).
About Our Speaker
Corey Rosenbloom, Chartered Market Technician (CMT), is the founder of Afraid to Trade (2007) and the author of The Complete Trading Course (Wiley, 2011) and Profiting from the Life Cycle of a Stock Trend (Wiley 2013).
He uses his own blended method of Technical Analysis using concepts such as relative strength, intermarket analysis, sector rotation to find trading opportunities across the markets. .
He posts his analysis and education via his membership site and open blog on Afraid to Trade.com (http://blog.afraidtotrade.com). .
Corey is a frequent speaker at trading industry conferences and simplifies the complexities of daily life as a professional trader and analyst, striving to empower the individual trader with actionable knowledge and current strategies. He has earned Bachelor's and Master's Degrees in Cognitive Psychology from the University of Alabama in Huntsville. Corey resides in Los Angeles, CA..
***If you live near Denver, attend this 4-hour live educational trading forum on November 1st and meet Corey Rosenbloom in person.
Amount of historical data varies from 30 days to 14 years depending on the membership you choose.