What do you need to become a successful Lifestyle Trader?
The solution to becoming successful needs to be wholistic and encompass all of the following elements:
• Method of analysis
• Trade set up
• Trade direction
• Level of entry
• Associated risk management stop & technically derived target
• Psychology, emotional, mental posture management
• A known Reward to Risk Ratio (RRR), with an additional element, predetermined time stop prior to trade entry (RRR/T)
Most tactics I have encountered require continual monitoring and reacting to events and deliver Reward to Risk Ratio (RRR) of 1 or less after brokerage and slippage. Typically new & intermediate traders feel a sense of ‘compulsion’ to be in the market. Surely you aren’t trading if you have not expressed a view in the market yet?
Traders confuse investing, where a ‘portfolio’ of investments are long-term held, and trading, where things involve ‘leverage’ and have a habit of becoming ’emotional’ suddenly. Investment principles such as portfolio theory do not apply in the same way to leveraged trading!
Be a highly focused, single strategy specialist rather than a generalist
A short word on ‘Efficiency’:- In World WAR II the average foot soldier fired 250,000 rounds for every enemy casualty. In the Vietnam conflict this did not improve. In the jungles of South East Asia this number was approximately 400,000. From all conflicts it is estimated that the overall statistic for ‘snipers’ is 1.3 rounds per confirmed kill.
One of the key reasons for this quantum difference in ‘efficiency’ is that Snipers:
- are highly trained valuable specialists at executing on one thing, they are never asked to peel potatoes.
- fire highly infrequently
- had extensive preparation and drills repeated for each shot
- exhibit high levels of patience, focus, and concentration
- observe for days on end before acting [their role was typically associated with Reconnaissance, as well]
- were specifically focused on ‘High Reward’ targets [often shooting high ranking officers] with a safe getaway, close to assured ‘Low Risk’
- prepared fastidiously prior to the ‘triggering event’, with specialist equipment designed exactly for the role, all aspects of execution are planned before
- have an acceptable point, time or event driven where they always withdrew, from the battlefield with a safe pre-planned exit [pre-planned Stops & Targets, ‘off risk’]
Back to the trading world, we are not here to enrich brokers, HFT Algorithms and other ‘service providers’, in the trader’s supply chain with a high level of ‘activity’ and churn. We want long run consistent ‘outcomes’ for ourselves and our ‘retail trader’ colleagues.
A few performance changing secrets…
3 easy steps to help you Trade efficiently
Whether you elect to engage with me or not, I will give you 3 simple rules that will markedly improve your trading right here:
- Cut your average number of trades taken in a month over the last year by 2/3’s. That’s right, if you do 30 trades a month, now limit your trades to 10 times in a month, if you already do 10 a month, now limit it to 3 trades a month.
- Never enter an ‘at market’ order again!
That is correct, you read correctly, now is almost never ‘the Key moment’, plan your trades by trading to a price level, and let the market take you in on a ‘pending order’. Market orders mean you don’t value or understand the concept of entry level optimisation, and its effect on ‘Time on Risk’ and ‘Risk to Reward Ratios’.
- Always have a pre-planned trade closure target. With every trade some technical justification for the target. Pre-calculated money management of that risked and known possible gain, through a ‘Reward to Risk’ assessment. That which you measure, is that you which you will improve, absolute profits are ‘ego’, attained ‘Reward to Risk’ is ‘process’. Chase the money and it runs, master the process and it comes.
The Method in ‘the Sniper’ Madness
But it doesn’t bring you a plausible method of approach on how to determine and implement these points. Which brings us to the Hunt Volatility Funnel Method [HVF Method] for this we behave like The Snipers, only we are The Market Snipers!
The attributes of a Sniper in Trading:
• Highly selective opportunity approach
• Pre-planned Entry, Stops & Targets, Non-Reactional or Non-Emotional approach
• Patience and the curbing of the compulsive requirement to always be ‘in the Game’. This is the excitement reflex of the monkey brain
• Entry & Engagement, only when a clear & definitive high probability of outcome, occurs with outstanding risk reward ratio’s [RRR] • Emotional Containment and a reframing of the traders response to risk, drawdown & success
• Making a holistic opportunity assessment, including intramarket analysis, volume based analysis, patterns, price behaviour and event based scenario forecasting
Most importantly The Market Sniper, Its staff and its students believe the skills for these kind of calls are totally, learnable, transferable and implementable for almost any committed adherent with time and application.
Using these attributes, The Market Sniper & HVF Theory were responsible for Calling:
• Copper for a ‘Trump’ Outperformance 32% Move beginning 2017
• Our Gold and Silver Long trades taken for a 21 RRR, just prior to 23rd February’s 2017 Unemployment number, on a recent training day
• Porsche for a 39% Move from, VW/Porsche Group Emission scandal lows
• The 2nd stage sell off of the EURO against the robust Norwegian Krona NOK, USD & CHF, The end January 2017
• In 2014 Brent Oil Short for a major secular turn on the break of $103 in 2014 April, [Charts, YouTube recorded media exist for all claims] • In 2015 a prediction that the EURCHF Floor fail in January 2015 for 30% overnight $EURCHF gain
• In 2009/10 the original EURCHF ‘Greek crisis’ crash of 2009/10 from 1.50 to near parity
• Large Macro FX Emerging Market Devaluations from 2014, with a huge 80% USDRUB move substantial other devaluations from the USDTRY 50%, USDZAR 45%, USDBRL, USDMXN over a mere 2 year timeframe
• Both the 2000-2011 Gold & Silver Bull Run & trading the subsequent Bear run of 2012 to 2015
• Francis has open predictions of a Deutsche Bank, & Barclays Bank Bailout from various dates in 2014/5 on both. Long before these were recently brought into focus.
• Hunt Volatility Theory, saw us in November 2015 call for major Equity Index sell off’s, in an appearance on World Finance, in world markets coming into January 2016 on a China Slowdown
• Many others to list.
Trade smart, with pre-planned trades
Smart trading is being relaxed, enjoying life, knowing that, planned trades, have their take profits and stop losses in place.
In short there are no ‘Guru’s in our company, merely Practioners of a highly insightful and ‘edge providing’ skillset.
The Lively Private network member area, see’s input from all involved with many early students providing excellent big picture trades.
Whilst we do not seek to create over weighted expectation, like many in this space, candidates have upon occasion, through early success’s covered the cost of their program and gone into profit.
Over the following 18 months, a multiple of the initial investment is possible, and over the following 5+ years, you may consider it, the most worthwhile investment you have ever made.
The Company has multiple products for skill development.
• The Flagship, Trading Metamorphosis Program – a bundle of all the available components
• Basecamp membership, through your desktop and smart phone application with email alerts on activity
• Trading days
• Weekly & Event driven Webinar sessions of the markets and current opportunities, implementing the HVF method.
• Special Alert Trade sessions
• Broker set ups, that best suit