My name is Mark Meir, I live in the UK and I have been trading for a living since 2001. Prior to that I owned and ran a Software consultancy, managing large projects for clients around the world. By the end of 2001 I had decided that I'd had enough flying all over the place and managing large teams of people, so I then decided to focus my attention on market place. I have been trading part time for over 25 years and have had some success and some failure, overall making enough money to convince myself that I can do it full time.
I've read dozens of books and went on several training courses and managed to stay pretty much at break even for a couple of years. Luckily I had enough reserves to sustain my family from the time I ran the market place business. About 2 years ago I discovered (or internalised) what I now call 'trading in the now'. This is based on my understanding of a combination of market place, meditation and other contemporary writers about the now.
How it Works?
There are numerous ways to Come into my trading room by Alexander Elder and there are many different systems and methods published in both books and on various 'paid for' websites. Some are good and some are useless, but what they have in common is that they do not necessarily fit with the way you are, and that is the most important factor. In recent years we've seen the rising of numerous trading robots, which are simply programs that trade on your behalf, some work some of the time and some never work, the main reason I don't use them is that I love trading and I love the ability to create something based on my own knowledge and understanding. If you log on to clickbank Come into my trading room by Alexander Elder you will see numerous robots for sale, see how their sales surge initially making the software writers rich and how the sales diminish over several months. Let's face it, if they worked all the time and made consistent money why would the authors sell them in the first place? Just put them on auto pilot and go and do something else.
So, why trade at all?
If your sole purpose is to make money, you may do well for a while but after some time you will notice that it becomes less profitable and you may even start losing money. Trading is an art and an activity that you must love and enjoy doing to be consistent, like most things in life. For some it is love at first sight and for others it takes time to fall in love, but as you fall in love with the action of trading, there can be no stopping you, you will learn to enjoy both the winning and the expense (what others call losing) trades, as each expense takes you closer to the winner. I will explain later how to ensure that the expenses remain low and the winners grow.
I believe that to trade successfully you must understand yourself, understand what motivates you and act in the Now, then you must learn several methods that you apply consistently and prosper from. You need to understand your time frame, some people keep a trade open for days and weeks, and some for minutes and hours. My personal style is the very short term, between a few seconds and a few hours, sometime a scalp (very short term trade) develops nicely and once you can bring it into profit you can decide to let it run for longer for greater profits. Most importantly, never let a winning trade become a loser. You also need to discover the best times of the day to execute your trades, I trade the London open (08:00 GMT to 10:300 GMT) and the US open (14:30 GMT to 17:00 GMT). Occasionally I trade the last hour of the US close. The reason I chose these times is that they are usually the most volatile and hence your trades move fast. Secondly I do not like to sit in front of the screen for too many hours, so often I can make my daily target (more about that later) within the first hour and then decide whether to continue or go for more. It is very important to trade what you see and not what you thinks, stay in reactive mode whilst trading and when you feel tired or confused stop trading. Know your own limits and stay conscious at all times, this will stop you from taking both revenge trades and trades that do not match your own setups.
As I live in London, I get up pretty early (around 05:30 AM) and meditate for an hour before breakfast and before I start trading. The reason for this is that places me firmly in the Now, removes all illusions and puts me in a calm and alert mode. I then read a very limited view of the market and what happened overnight, as I do not want to start my day biased one way or another. Bias can be dangerous and a fixed mind can cause you to throw money at your beliefs rather than at what the market is so clearly stating. When it comes to meditation, there are numerous types and you need to select what is best for you. The benefits stretch way beyond your trading (but that is out of scope for this blog). Personally I use a Zen meditation technique but if you google mediation you will surely find a form that suits you.
Here are related books that I recommend based on my own experience:
- Spiritual Enlightenment: The Damnedest Thing
- Busting loose from the Money game by Robert Scheinfeld
- The Book of Secrets: Unlocking the hidden dimensions of your life by Deepak Chopra.
Just check the reviews in Amazon.com and choose one or two that tickle your fancy, all are excellent.
There are numerous others which you can find for yourself, and there are many free website with further information and resources. You can also find free MP3 with guided meditations that may be easier to start with. My favourite is ..
Another program that I highly recommend is Guy Finleys' audio visual material (some of it free and some for sale) available at:http://www.metatrader4.com/
Finally, and just to reiterate, a daily meditation will enhance your trading and will enhance your life.
There are numerous methods and systems out there, I will show you 2 simple methods that I use here and will update this blog with additional methods and videos of their use over the coming days and weeks. I use very few indicators and rely mostly on my focus and ability to react to the price action. This is easily achieved when you remain focused, based in the now and avoid all distractions:
For charting I use MT4 which is a free charting package and it has all the instruments that I trade, namely – currencies, Index futures, Oil (WTI) futures and Natural gas future.
To download MT4 go to - http://www.metatrader4.com/
You will need to select a broker that has the instruments of your choice. You do not have to open an account with that broker and the package is completely free.
Method 1 – Scalping the index futures:
This is a very simple method and is based on momentum trading, it's very fast and requires 100% focus and attention to what is happening in the market. In my morning (US time) I trade the Dax futures based on the tick chart, 1 minute chart, and I also have a 5 minute chart up and running to see the bigger picture. I also have a Dow 5 minute and 1 minute chart open as the Dax (or FTSE) tend to follow the Dow. Over the coming days I will record this type of trade and post it here, so stay tuned. The same trade can be executed on the S&P futures, again watching both it and the Dow charts.
This trade is usually entered a few minutes after the US stock exchange opens. My charts have the following indicators set up:
10 ema, 14 period Bollinger Bands (standard deviation 2) and another set of Bollinger band (standard deviation 1).
When the price hits a Standard deviation 2 BB, I watch the reaction to the event and as the price is rejected (if it is) I enter a trade in the opposite direction, as this is a momentum trade I do not allow it any “breathing space”, it either works (usually) or does not, there is no hanging around. If the trade goes against me by 2-3 ticks I exit and wait patiently for the next one. If the trade goes my way I continue to watch the tick and 1 minutes charts and exit the position once the momentum has stopped. Again, no waiting is involved, you exit and if the trend continues, we can re enter again on a retracement. The areas to watch out for are the mid BB and the 10 ema as they may offer support or resistance, once the 10 ema is cleared there is a stronger likelihood that the price will make it's way to the next BB. If the price does hit the opposite BB, then exit and wait to see if it kicks that band to an extreme. If it does, do not jump in again, wait until the price comes back to either the 10 ema of the standard deviation 1 BB and then re enter. Once again, no leeway is give, 2-3 ticks against you tell you to get out and wait for a better opportunity. If it does go your way then trail your trade (manually) and exit once the momentum dries up.
This is a typical reactive 'trade in the now' type of trade and I often have over 100 of these trades in one day. You can tailor the number of trades to your style, or you can set a daily point target which once reached you stop trading. I usually set my target at 50 points (achieved most days) and stop trading once hit. This can be achieved in 10 minutes and can take 2 hours sometimes, obviously the more the market trends, the easier it is.
Method 2 – Scalping the News:
This is a method I've been using for several years. There are numerous economic announcements during each month, some of them are tradeable and others are weak. As a rule of thumb, the bigger and more important the announcement the better the trade is likely to be. The main events are employment figures from the US, UK and Australia, CPI figures from most of the G20 countries, GDP figures, Interest rate announcements and many other. These trades are what I call 'Spike trades' and entered as the news comes out and exited a few seconds later (usually). It is not possible to enter the trade manually so I use software that is programmed to hit the sell or buy button once the news is out. These type of trades make a good profit, but require good timing and focus. This software is available from News trades Sniper
This is just the tip of the iceberg, no further complications exist, just experience and a desire to do it. I will continue to update this blog with more methods and videos over the coming days, so please feel free to come back and check.