Mi estrategia de trading LongShot – Clase 08 – FAQ’s

Mi estrategia de trading LongShot – Clase 08 – FAQ’s


Financial Education Hello Traders!, Today I have to start this class,
unfortunately, apologizing. Because in the previous class
I had said that this class was going to be a demonstration
of the strategy in the platform, and unfortunately this last week
that happened I was very complicated of time, and unfortunately,
I could not trade as I expected. In fact I made a couple
of attempts that I will probably show them
in the next class where I promise that I will do
trading on the platform. But this is precisely one
of the reasons why I stopped using this strategy,
and now I am using another one, and here I am going to make a parenthesis
precisely to answer that question that some people have
asked me in the comments, or they have even done it
to me by email, they have asked me: “Hey, but if this
strategy that you used before was so good and it gave
you such good returns… Why did you change it?
Why are you using another strategy?”. And the truth is that time
is one of those reasons, the time it takes me
to use this strategy. I remember that at the time,
some years ago, when I was using this
strategy on my platform, I spent a lot of time in front of the monitor,
looking at the screen and waiting for
the signal to occur. And on the other hand, once it entered
the trade it also took a long time for the trade to
develop, so that the price would advance until
I could adjust the Stop Loss, for the price
to go up, so I could take it to Breakeven
and then start doing trailing stop… It used to take me
a long time! And although certainly
the profitability was very good I was practically
a slave of the computer. Later I… Well, some do not know
but I’m a Software Engineer. I… My professional career is
System Engineering and as a programmer, I developed an alert
in the MQL4 language at some point, which is the MetaTrader 5
language, it was the platform that I
was using at that time. And towards
an audible alert when the crossing
of moving averages occurred. So in this way
I separated a little, I left a little bit of being all day watching,
at least while I waiting for a signal, I just listened or
expected to hear when the crossing of moving averages
signal was produced, and that gave me maybe
a little more freedom, but still… Well, I had to be there
after the signal was produced and it was not easy
to be aware that when the signal rang I had
to run to the computer, to see if it really was
an opportunity viable, if it really was a good opportunity
and I could open the trade. It was really an alert very,
very simple, in fact I will share it later
so that you also have it, but… That alert could sound
at any time. In fact, many times it
sounded at dawn and I woke up and ran to the computer
to see if it would open a trade or not, it would ring in the afternoons, it would ring
at night, it would ring in the morning So that… Really that slavery to me,
although fortunately I was doing well, I was making money… I ended up changing it because
of this strategy that I now use, which is what, as you know,
is taught in the Advanced Trading Course Level II, and you can see it in the series
that is here in this channel, the series of 18 videos called:
“Trade The Open Like A Boss”, which was the strategy that
I finally learned with Oliver and that I am now sharing in
my own course from my own optics. It is a strategy that allows me to trade
one hour, one hour and a half daily in the mornings during the opening of the market,
and then I have the rest of the day free to do what
I want. And it’s that kind of freedom, the one that
combines more with my way of being, with my personality and
with my trading expectations. So that’s the reason why
I changed the strategy. Then I want to continue
thanking you all for the large number of messages of support,
messages of solidarity. Well, I would not like to say solidarity,
but I would like to say support, because obviously I’m not going through
any tragedy, but I do have messages of support from the last video in which
I commented on some negative comments that I received in
the channel and you certainly have all the reason,
I even have to apologize for not mentioning so many positive things
that are infinitely many more. The amount of likes
in the videos, the number of subscribers that we have
today as of November 2017 when I am recording this video are about
30,000 subscribers that I have in the channel, the truth is that I appreciate the support,
I thank you for following me, I thank you for the trust
you have placed in me, and I thank you for looking at me
and listening to the advice, and the trading classes
that I am giving you. The truth is that the minorities
that do not agree with me, that do not agree with
what I say, with what I do, well, they can simply… They are free
to go to the channel they want they are free to go and
listen to whoever they want. Nobody forces them to be here,
they do not have to. I unfortunately… I do not know if
the correct word is unfortunately, but my sin has been to be
too naive, and to believe that
I can help these people, or people who have a wrong idea
about the financial markets, I think I can help them
change that mentality, and help them get out of
the error that too… Let’s say it’s been a bit embedded there
in their minds by the industry, there are many prejudices
and preconceived ideas that come from society,
that come from the school, that come from the parents, and that have
caused many people to lose their money. And from those prejudices
and false beliefs, people come to me and say:
“You know what? What you’re doing is wrong, what you’re doing is wrong,
what you’re saying is crazy”, and… And I’ve believed that I can get
people out of their mistake, I think I’ve achieved it
on some occasions but certainly not… It’s not right. It’s not good to wear
myself out that much, the truth is that people are
free to do what they want. people are free to listen to whoever they want,
and to believe what they want. If it seems good, it seems sensible,
it seems to make sense what I am saying… Well, wonderful, listen to it,
take advantage of it, I hope you take advantage of it, there are many people who are taking advantage of it,
many people who are already writing to me… Excuse me, they are sending me
images of their results and of the things they have achieved
with my classes, with my teachings and that pleases me a lot,
it seems wonderful to me. So… I from now on
will try to… I will try to ignore as much as possible
that kind of comments, it’s not that… It’s not that I do not accept criticism, in fact,
constructive criticism they are always welcome, and they are the ones that
have helped me to improve, they are the ones that have helped me to make
the contents more and more of a quality that are more in line with
what you want, to what you need, that type of criticism are welcome,
they are accepted and they are also necessary, necessary to grow and to continue
doing things well. But when people come
with insults, when people arrive with
disqualifications, when people arrive with
bad education, really that is simply not welcome,
it is not acceptable, I will not tolerate it and those people are simply going
to be blocked of the channel. Point aside from that, I also want to take
advantage of today’s time to resolve some doubts that people have raised, some doubts
that are repeated a lot in the comments. So I’m going to take this
time for that. Some people still ask me
if this can be used, this LongShot strategy
can be used in stocks, if it can be used in futures,
if it can be used in Cryptocurrencies. Gentlemen,
all financial assets are traded in the same way from
the technical point of view, the technical analysis is applied exactly
the same for all financial instruments. So yes, you can use it
for what you want, you can use it for options, you can use
it for stocks, you can use it for future, for Forex, for raw materials,
for cryptocurrencies, for financial indexes I do not know if I already said it, in short,
ETF, CFD, whatever you want, it does not matter. Can I use it on
the five-minute chart? Yes, I used it on
the 5 minute chart. Can I use it on
the 4 hour chart? Yes, you can also use it
on the 4 hour chart. You can use it in the chart
within the timeframe you want, on the financial instrument
that you want. Then, some people have asked me if
the confirmation candle has to be green, if the confirmation candle
has to be red, that if I go long and
the confirmation candle is bearish or if I go short and the confirmation
candle is bullish… It does not matter! The confirmation candle, the color of
the confirmation candle has no relevance to apply this
strategy. What does have relevance, is that once you open
the trade and you place the Stop Loss, that Stop Loss you have
to respect it, if the price touches the Stop Loss
is reason to close the trade. If the price has not touched the Stop Loss,
even when the trend is back and the price starts to fall
and Stop Loss is very close… If you do not touch it there are
no reasons to close… It’s that simple! As long as the price does not touch
the Stop Loss the trade is still active, and it has
to stay open. Once the price has advanced in your
direction, the size or distance in pips you have from the entry price
to the Stop Loss point, you can adjust Breakeven
and reduce the risk to zero. Some people tell me: “Hey! You know what?
It seemed to me to wait a little longer, because sometimes when I adjusted to Breakeven
it turns out that the price goes down, touches me the Stop, closes the trade
and then follows his way in the desired direction”. Well, if it works better for you,
according to the instrument that you are using, if it works better for you to leave
the Stop Loss in its place for longer, do it. Obviously you can adjust the strategy
in the way that best suits you. There are people who say to me:
“Hey, what do you think if I added a stochastic?” Perfect! “What do you think if I added a Fibonacci?”
Wonderful! If that works for you, if you have done the test and you have seen that
doing it that way works better for you, apply it. What you should keep in mind is that
if you complicate the strategy too much, and you start to add
a lot of indicators… You are going to confuse yourself first,
you are going to delay the entrance signals too much, and finally when you finish entering after
all of your 25 indicators are in harmony, in synchrony, it turns out that the trend
is over and is entering too late. So I would recommend that
you keep it as simple as possible, this strategy is developed precisely
to keep it as simple as possible. In fact, it has 4 technical
indicators, and that’s enough. Normally a strategy can be based
between 2, 3 to 4 perhaps, indicators but already put 5, 6, 7,
8 indicators is too much. However, if it works for you,
if you do the tests and you see that it improves
your points of entry, that reduces your risk, you feel more
comfortable doing it that way, well, perfect… As long as it works for you…
Wonderful! Do it, there is no problem. Another very repetitive question, and this issue
had already touched on a previous class is: “With how much capital
I start?”. Gentlemen, the capital depends
exclusively on the trader, that depends on what your expectations are,
that depends on how much your strategy is, how much money your strategy
can give you in each trade, what is… If you intend to live
on trading, you have to take out your account before how much
it is that you have to pay for your life monthly, and then on that basis you will know
how much money you have to do monthly, and once you know how much money
you need monthly to live, then you have to see how much money gives
your strategy to you in your monthly trading. Once you have achieved consistent
profitability in a demo account, see how much money you
can multiply the capital monthly, and on that basis you will know
how much capital you need. How much can this strategy give
monthly, or daily, weekly? That also depends
on you! Today I was just talking with
a student that we talked about that topic, and I said: “Look, the trading is…”, and this is
something that I have commented on other occasions, trading is partly artistic, trading in
a certain way it has that artistic component that makes it different from one
trader to another, so if you, suppose we are talking about
a recipe, a cooking recipe, a tiramisu, or a lasagna, maybe 3 different chefs are following
the same recipe with the same ingredients, and even so, after that lasagne
or tiramisu is ready, or whatever that dish is being prepared
by the three different chefs, when you try it,
there are 3 different flavors, because each person does his own way,
each person has his way of doing things, in spite of the fact that they could be
using the same ingredients, in the same kitchen, with… Whatever…
The same instructions and even then three people will
have three different results. And in trading it’s very similar,
it’s very much like that, because even though 3 traders may be
using exactly the same strategy, it depends… Their results will depend on which
instruments are applying the strategy, in what temporality they are
applying the strategy, how many lots are applying
the strategy, how many times a day
these people trade, how many times a week, how many times
a month do these people trade, what leverage does the broker offer
them if they are using leverage, what is the price of
the instrument they are trading, In short, there is a huge amount of variables
that change the result of one trader for another, despite being using
the same strategy. Therefore, it is very difficult
to say a specific number. I understand that for people
who are starting on this is sometimes complex to understand,
but they have to know that giving a number of results
of a strategy is not so easy. It will always depend on the trader, and for
that reason I said what results it gave me, but to know what results
it will give you, the only way to know is that you apply
the strategy in a demo account for a while until you achieve consistent profitability,
and once you have achieved consistent profitability, then you make a history and you will
see what your results are, and on that basis you will be able
to take an average of your results per day, per month,
week, whatever… Now, the percentage of success of
a strategy is not so relevant if you have a good
management of trading. And I also talked about this
with this student today, if my memory does not fail me, his name is Franklin…
Greetings Franklin, if you are watching me, and this I have also commented
on other videos. You can have a strategy that fails
9 times out of 10, and you can still be making money,
because if your trading management allows you to lose $1 each time you fail,
but earn $600 each time you win, you may be losing
9 times of every 10, but those 9 times count $1 each,
that is, they are $9 of losses, and the time you won,
you earned $600. What does it mean? That you earned $591, because of the $600 that you
earned you subtract the $9 that you lost, and that’s it. So, if you have a strategy
that hits once in 10, you lose 9 times and you win 1,
but you’re still making a lot of money. And that is feasible as long as you
have a good trading management that allows you to quickly cut
losses and exponentiate profits. So for that reason the trading management
is so, so important. And as I said before, you with an appropriate
and very robust trading management, you can practically apply a strategy
that is based on the flight of a coin, You take a coin out of your pocket,
you throw it into the air, depending on which side the coin falls on,
you decide to buy or sell… And to that you apply
an appropriate trading management, you will simply be
invariably winning when your trading
management is robust. That is why it is so important
to focus first on trading management, you have to learn
to lose, you have to learn
how to lose appropriately, this also comment
on the last class, you have to learn
how to lose properly, and after that you already know how
to lose appropriately, the profits will come, they will start
arriving alone. One of the exercises to learn
how to lose correctly, which we recommend
many times, is that you take an average of
your last 20 losing trades, look for your history, your trading journal
that you should already have, or that you should have, and if you
do not have it start doing it, look for a history of your
last 20 losing trades and get an average
of how much… How much has your average loss been
in those 20 losing trades? That is, add up to 20 losses,
divide it by 20 and have an average. So, suppose,
I’m giving a hypothetical example, suppose your average is $100 of loss
in each trade, I’m saying anything,
$100 of loss is your average… So, take that number
and divide it in half, okay? And $50 is going to be your loss target
in the next 20 trades. You’re going to try that in your next 20 trades,
you’re going to produce on purpose, that is, you’re going to make an effort
to purposely lose any number between $45 and $50, never more than 50, never less than 45,
you have a margin of error of $5. So try to produce
20 losing trades of $45 or more, or $50 or less, okay? And that purpose what is going
to teach you is… One, that trying to lose is almost
as difficult as trying to win, okay? Or it’s as difficult
as trying to win. And two, that… You are going to learn, you are going
to start training to control your losses, to keep your losses in
a fixed number. And when I say fixed numbers,
certainly the Stops are variable, but your maximum daily loss and
your maximum loss per trade are fixed numbers, which are calculated based
on your capital, and this I already said in the other class,
if you have not see it, I invite you to see it, they are fixed numbers, so you have
to learn to control your losses, to keep your losses controlled,
and that you will do through this exercise. You will try to maintain
an average loss, or rather, a specific loss number in
your next 20 trades… On purpose! You’re in a demo account, it’s not going to cost
you anything, it’s going to cost you time. However, you are gaining experience,
you are gaining knowledge, you are developing
skills. So do that exercise, if you do not remember,
I invite you to back the video, review it, write it, do that exercise, take the average loss
of your last 20 trades, divide that number in half
and try to produce 20 new losses with a number similar to that never,
never more than half. And also giving you
a margin of error, more or less averaged based on
the example that I just gave you. So, gentlemen, again,
I apologize for not being able to deliver today
what I had promised last week. This week I’m going to spend
a little more time, I have a bit more freedom
than the previous week, the week before I had some personal
commitments to attend, and for that reason I did not have
enough time to record the trades. But this week I’m going
to make an extra effort to produce trades on
the platform, record them, and be able
to show them in the next class. For those who do not know, my trading courses
are available at www.tradingefectivo.com I’m on social networks
as @tradingefectivo. If you liked this video give me a like,
share it with who you think can be useful. And see you
in the next class! A hug! Financial Education

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