My experience show, that the best and fastest way to make money trading is to take a low-frequency »hands-off« approach. If you are reading my articles amd learning your lessons from them you already know that, but today I want to expand on the concept of »trading from anywhere« and why the best way to make trading is if you »do it on the side« or »in addition to« other revenue streams, rather than put all of your hopes and dreams into trading.
In my opinion every new trader should practice a sniper trading approach which practicaly means that trades are taken in small quantities but with high belief.
Huge advantage of this approach is that you can still do other things you want, but still stay in touch with the markets and placing trades. The goal is to make trading an adition to your lifestyle, not its primary focus. You can still find time to travel, you can have a full time job, practically anything you want. Doing this is great for your stress levels and overall state of well-being, but also the best thing you can do for your trading account.
It’s immportant to have a healthy balance in your life. Everywhere you need to have soma self-control, and it’s no different in trading. Most traders don’t practice self-control and consequently they lose money. They stay up all night watching the charts, they get hooked to short time frame charts and are eventually sucked up into day-trading trap that catches so many well-intentioned beginners.
I hope that after today’s lesson you will adopt a »coffee shop trading attitude« , to become more of a »global nomad trader«/ part-time trader, with life also outside of trading. It’s a fact that most wealthy people don’t put all theit money and hope in one place. It may sound silly that I would be telling you to not depend only on trading. But the fact is I want you to succeed, and the best way to do it for most people is to follow a similar path to the one I am going to lay out below.
»FREEDOM TRADING«…TO GOOD TO BE TRUE OR THE ANSWER YOU’RE LOOKING FOR?
Trading from anywhere, no matter what you are doing, is not to good to be true, but is literally about the best thing you can do. Let’s explain…
- FOCUS ON THE RIGHT CHART TIME FRAME
If you want to take a »freedom« approach to your trading, you must focus on higher time frame charts (weekly, daily 4- hour and 1 – hour time frames, most other time frames are simply a waste of your rime).
When you are analyzing and trading on these higher time frames, you check charts each day or every other day at the end of the day, and you make decisions based on the daily chart close at the end of the trading day. I call this end of day trading. With it you can skip all the intraday noise and meaningles price movement, and you use that time to focus on your other activities.
- LOW FREQUENCY
Naturally, focusing pn higher-time frame charts means less trading. That allows you to take trading with more easeband to actually enjoy your life because you are not tied to your computer all day long.
But the most immportant part of this approach is that it actually helps with your trading performance and chances of long-term consistent succeas. In the end the whole point of trading is to make money overall not end up losing it.
- LET THE MARKET DO THEIR WORK
Day traders spend hours in front of their computers. They are on a never-ending mouse-wheel of information overload and try to make trading decisions. This kind of approach is unnecessary and in reallity the opposite od productive. Reason why people end up doing this, is because they became trading addicts. Their addiction are moving prices, flashing colors and the thrill of entering a new trade. Your goal is to control yourself and avoid the point where the market starts controlling you.
You have to let the market do the work, which means you have to set and forget your trades. Once the trades are made,nothing will change if you watch the market constantly.
- TRADE TO LIVE, DON’T LIVE TO TRADE
Many people blow their money on material things, but every time thay buy something new the allure of it quickly wears off. So having less material things is actually better, not only for your bank account and financial situation, but also for your mind and stress levels.
This minimal approach also works in trading. It means less trading, less worrying, less chances to over-trade and over-leverage your account. It’s no coincidence that many successful investors and traders are not day-traders.
- LESS IS MORE
When you stop trading all the time your trading performance is going to improve. Why is that? It’s simple. Our brain are not made to be good at trading because we are not used to be good at self-control and self-regulation impulses. When you are presentet with unlimited chances to make endless amounts of money, you found the recipe for destruction of your self- control. This is why less is more.
The less your brain is involved in the markets and your trades, the better your chances for success. Most effective way to
practice consistent self-control is to simply make the need to have to perform it as small as possible.
PRICE ACTION TRADING STRATEGY CORE POINTS
I hope by now you understand why trading like a nomad is beneficial to
your trading performance and also your lifestyle. Now let’s take a look at the main pieces of a »freedom« trading strategy so you will know how it’s done.
- End of day trading
The basic idea is that you are only making trading decisions after the New York close each day so that you are using daily charts the most and making sure you only consider bars that have closed out. This removes the noise and confusion of the lower chart time frames as well.
- Set and forget
Means that you find a trade, set up the parameters and you literally walk away from the computer until the next day after the New York close. Don’t try to »figure out« what will happen and don’t check the charts every few minutes
- Simple trading signals
The price action signals that i trade and teach my students aren’t hard to learn. What you don’t need is trade with indicators. That is a confusing, overly-complicated and unnecessary waste of time. A nomad trader who enjoys life instead of staring at charts all day, needs a simple trading approach like this. The complicated part of trading is money management and asychology, so don’t make the actual chart- analysis and trading part difficult as well.
- Money management
Probably most critical to taking this »nomadic« and relaxed approach to trading is money management. If you put your risk so high that it makes you preoccupied with your trades, you
won’t be able to set and forget your trades, because you will worry to much about losing money. So you must learn to make a risk that you can mentally handle.
This approach will definitely take some time to get used to trading less,
not checking constantly your trades, not spending so much time in front of your computer but your trading performance will become better if you stick to this way. You must distract yourself from the markets, use a simple strategy and make your risk reasonably. Find yourself a hobby, full time job, travel, make something with your life. Stay occupied, because if you will just sit around you will eventually open your computer out of boredom and you will start over-trading.
But you need to know how to analyze price action the right way, and how to put the whole strategy together to be able to trade feom anywhere and adopt this new way of trading. You can look how to combine price action strategies with a low-frequency nomad-like approach in my professional trading course and members area.