So, what’s covered in this month’s newsletter:
- Market Update
- Why is it so Crucial to Develop a Trading Plan?
- Upcoming Podcast Interview
If you have recently subscribed to my website, or for some reason you did not receive my last newsletter email, you can view the previous newsletters from this web link:
http://smarttrading.com.au/wp/news/
| Market Update |
What a wild ride the markets have continued to have. I must say I have been enjoying the ride back up to the downtrend line. I have gone from being mostly short last month with my daily swing trading system to being mostly long this month. That is what this swing trading system is all about – riding the swings of the markets as they occur and taking the strongest signals in the strongest direction at the time.
However, right now the Aussie market is at a very significant make or break point. The best way to show you is by providing a chart of the ASX200.
Below is a weekly chart of the ASX 200 and you can see a very interesting pattern building. A downtrend line has developed and the index is just touching this right now and falling away. Will it now continue its down move to another new low, or will it break and finally push higher? Time will soon tell what is going to continue to pan out.
Weekly Chart of ASX 200 as at 15 March 2016
I just love watching how the trends unfold in the charts. If you want to find out more about how to identify trends and determine the health of a share through its chart then check out my Smart Charting 101 Online Course. This is a 10 session video course and includes a comprehensive handbook. You receive all this for only $97.
The markets right now are not an easy time for new traders. It is the sort of market where you may feel like a genius one week as things move your way, but then you are back to being at zero the next week or even worse in a negative situation.
Are you prepared for that?
Do you have a trading plan and strong money management rules to tackle this kind of market or any market trend for that matter?
My market exposure guidelines in my trading plan indicate right now that I need to employ an aggressive exit in my trading when certain things occur as per my trading rules. This is an additional exit strategy I use to protect my profits, as most of the swing moves in these kinds of markets do not always have enough power to continue for extended periods and I use this strategy to maximise my returns in this environment.
I share about this, along with all my trading strategies in my Ultimate Smart Trading Mentor Course.
My Mastermind clients have already seen in my latest monthly market video update how I have employed an aggressive exit in my trading. I had so much to share with them about the current market and my trades that this month’s video was over 40 minutes long.
You too can become a Mastermind member just by joining my Ultimate Smart Trading Mentor Course. You not only learn about all my trading systems and strategies through the course, but you also receive a year’s membership to my Mastermind program. This is my ongoing support program for my clients and I keep them updated with my market actions through regular monthly videos, a discussion forum and webinar events throughout the year. So clients can regularly see how I employ all my strategies into the current market.
| Why is it so Crucial to Develop a Trading Plan? |
This is a snip from my latest blog post about why it is so crucial to develop a trading plan:
“One day I will do this, but right now I just want to trade.”
“Seriously, I don’t have the time to write a trading plan, I’ve got better things I can be doing, like trading”.
“I know how to trade, I have all the information in my head and it will take too much time and effort to have to type it all up.”
“A trading plan? This is not like business so I don’t need one.”
These are some of the excuses that the 80% of traders who FAIL in the markets say to themselves to justify why they don’t need to write a trading plan.
The statistic is that only 5% of traders earn the biggest profit in trading and they will all tell you that their secret weapon is their trading plan and how important it is to develop a trading plan. Yes, those who are highly successful in the markets are always emphasising that your edge is a trading plan.
Developing a trading plan is becoming like a redundant mantra. But even with the statistics, there are still a lot of traders and investors who venture right into their business of trading without thinking of the significance in getting organised through a trading plan.
Believe me when I say that this is one of the most crucial aspects of a successful trading business. If you are in this for the long haul, you need to have your plan documented and you will be surprised by how much clarity you gain from just doing it….
| Upcoming Podcast Interview |
I have recently undertaken an interview in the USA with Brandon Clay for his Trading Story podcast. He has interviewed over 100 traders in his podcasts and our interview was the first one he has done on trading plans. He could not believe it took him 100 interviews to finally have a trader talk about this key topic in detail plus many more gems.
The podcast will be live at the end of March and I will let you know once it is available. So stay tuned for that….
| Finally |
So, who says the market ride is a consistent wave? There will always be ups and downs and surprising twists that will leave you scratching your head if you don’t have a prepared trading plan to handle all market situations.
It will be very interesting to see what continues to unfold with the market trend over the coming month.
Also, if you haven’t had the chance to download my free report on the “10 Key Mistakes New Traders Make”, you can sign up now from the top of this web page with your name and email and get instant access to it.
Cheerio for now
Justine Pollard
Author, Private Trader & Trading Mentor
‘Discover the Smarter way to trade’
www.smarttrading.com.au
justine@smarttrading.com.au
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