We’re often asked questions about our trading approach, trade idea generation and signals – do you provide signals/are they sent in real time etc. As a result, I wanted to make it clear exactly how we approach the markets and how our discipline supports our trade selection process.
Firstly, we never look for trades in the market during the London Session (8:00am – 16:30pm UK time). This may sound odd, but our trade ideas are formed between 6:00am – 7:00am UK time, we never sit there scanning through the markets looking at opportunities during the important trading hours.
A typical retail trader is taught to scan the market for opportunities (usually technical signals), they have their entry/stop loss plan and then they implement it. Our approach is totally different. The analysis that I do first thing in the morning tells me what I need to be focusing on and what I need to be avoiding for that day. I then let the market come to me and tell me whether it’s ready to be sold or bought. This ensures that I’m not wasting time, I can set my price alerts and only be involved when the market is ready to let me in.
When it comes to trading signals, I let my clients know exactly what pair we need to trade, what our bias is, where the entry zone is, where the stop needs to go and how much we’re going to target. Clients that have completed our trading education know specifically what to look for. This ensures that there is no confusion, every client has the same, clear information and then it’s a case of waiting for the London Open to see if our trade bias is ready to execute.
One of the things that I say regularly is that “there is always tomorrow and the markets are not going anywhere”. What you’ll find is that we’re never in a rush or itching to trade the market. The feeling that you have to be involved in something is probably the biggest killer of accounts in my opinion. I would rather take on a trader with poor risk management that doesn’t mind sitting out VS a trader with excellent risk management but has the urge to click and be in something constantly. Trading is a game of patience and discipline, not quick results. In short, we’re not afraid of sitting in cash if there’s nothing probable according to our strategy. Probability is what we trade, when that’s not in our favour, we simply do nothing. However, when things line up, that’s when we tell you guys about it.
This structure and approach to our trading is probably the reason our success rate is topping 87% for 2017.