The Two Most Overlooked Components in Trading
Traders of all levels of experience need to understand the first two steps in the trading process. People consistantly breeze past step one: the overview, and step two: the set-up, and go right for step three: the trigger.
The overview is going to put the market in perspective for you by giving you the current direction on the higher time frames. This is very important because it will determine how we manage the trade — more loosely if the higher time frames are in agreement with our position, and more diligently if they are not.
Once you do your overview the market should be framed for you, and the different trends at work should be clear. To schedule a complimentary tutorial during U.S. business hours on how to conduct a proper market overview send an e-mail to me at jnorris@brewerinvestmentgroup.com.
With a little practice the set-up will start to pop out at you. There is essentially only one set-up for us and that’s the current market trend – formation. Once we learn to recognize when/where a trend starts, we will also recognize when it’s coming to an end, and that’s where the trigger comes in. There are a myriad of signals out there, and almost all of them will do the job for you when applied when they occur, and you manage the trade properly based on the current trends in the market.
I’m very excited that we’ll be implementing complimentary live trading exercices for our clients going forward where we’ll set aside a 4 or 5 hour block of time between the London and NY sessions, several times a week to paint the the various market’s overviews, current trade set-ups, and of course triggers — signals.
Jay Norris
jnorris@brewerinvestmentgroup.com
DISCLAIMER: Futures, options and Forex (off-exchange foreign currency futures and options, or “FX”) trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, options and Forex may fluctuate, and, as a result, clients may lose more than their original investment.
That is an excellent Flow chart shown in this blog! Yes, it makes so much sense to look at the higher time frames first and “slow down” your attitude and overall outlook towards trading, before trying to run with it and likely stumble too early.
Very well organised is Jay, that is very evident from this blog! Many Thanks….
(Ascot, UK)