1.  Find a trade.

2.  Assess your risk/reward.

3.  Determine your position size.

4.  Control your exit strategy to maximize profits.

If you are not having success,  why not try what most traders fail to do – use the 4-Step Trading Process!

View the recording HERE

Check out the rest of the analysis including gold, oil and the USD:

http://www.youtube.com/watch?v=sUT3PYQ5ZCI

1.  Find a trade.

2.  Assess the risk/reward

3.  Determine your position size.

4.  Control your exit strategy – cut losses short and let the winners run.

Click HERE to view the recording

As for the trading, well, it continues to be very good for those traders who can manage their initial risk and find those very low risk, high reward type trades.  Once again, Steve Griffiths, MTPredictor developer, outlines one of the lowest risk, highest reward trades you will find.  He calls it the Holy Grail trade.  These trades unfold in all markets and time frames.  Check out his analysis using the MTPredictor Elliott wave and Fibonacci trading software in tonight’s video:

http://www.youtube.com/watch?v=JP3zXnXvnEM

MTPredictor will help correct this major trading problem.  How?  First, the software will provide you with an entry, stop and target that is at least twice the size of your initial risk.  Next it will tell you the exact size of the position you should take based on your account size how much you want to risk per trade.  The recommendation is that you don’t risk more than 2% of your account on any 1 trade.  You may want to start with less.  It does all this for you before you enter a trade.

You can see how this all works using the MTPredictor Elliott wave and Fibonacci trading software for stocks, commodities, futures and forex:

Click HERE to watch the recording.

Hi Everybody

Here is a great example of my MTPredictor Holy Grail trade setup that unfolded yesterday on the 3min YM

http://www.youtube.com/watch?v=Y8RzBpYvn4I

As you can see, we used the DP support on the 15min Chart to determine the “larger degree” trend, this then setup the Holy Grail TS3 buy.

The result was a massive +9R Profit (ignoring slippage and commission) !

This is why the Holy Grail setup is my favourite MTPredictor trade setup…………….

Thanks, Steve

Check out the webinar recording HERE

Since so many weeks have gone by without these numbers being hit, we have new resistance areas that these markets will need to deal with if they attempt to move higher.

The daily silver short is getting close to its target which is about 9.5 times the initial risk.  It will need to move down into wave 5 from its current position to get to the target at 25.20.

The daily long in oil hit its target and has been pulling back off this resistance while the Dollar Index has hit its weekly DP resistance.  There may be additional upside to the next level DP so keep an eye on it.

Check out the rest of the analysis featuring the MTPredictor Elliott wave and Fibonacci trading software for stocks, commodities, futures and forex.

http://www.youtube.com/watch?v=hnb977mnrQk

Check out the webinar recording HERE.

This study was done using a data set of over 12 million live trades from FXCM clients in 2009 and 2010.  Amazingly, the average trader won over 50% of their trades!  Some pairs generated a whopping 65-70% win rate for clients!

So, what in the world went wrong?  Why are the vast majority of their traders losing money?

Read the succinct article HERE.

Then, you will see why we do what we do here at MTPredictor.  For 10 years this company has been showing traders the importance of risk control, position sizing and having the proper reward side of the equation in place before you enter the trade.

Let me also give you some thoughts on the article based on my own experience in trading and working with traders over the last 16 years starting as a broker with Charles Schwab, mentoring students at my home, developing my own methods and systems, trading live money in real-time trading rooms and my time here with MTPredictor.

The article concludes that a risk/reward ratio of at least 1 to 1 should be used.  While a 1:1 risk/reward ration may be acceptable in simulation, it is usually not enough on the reward side of the equation for most traders.  Why do I say that?  Well, most traders will never be 100% disciplined 100% of the time.  We all have lapses in judgement while trading that can lead to greater that 1R losses.  Add to this, the fact that we all make mistakes from time to time with our trading platforms.  These innocent mistakes can also lead to greater than 1R losses.  Further, volatility and unexpected events happen (remember the flash crash?) in the markets all the time.  These also can lead (even when proper precautions are taken) to losses greater than 1R (or 1 risk unit).

If the reward side of your trades are only 1 times your initial risk, you can easily dig yourself a hole if any of the above scenarios come to pass.  This is one reason why MTPredictor recommends a minimum of 2:1 risk to reward for every trade.  This will allow you to make up the losses much quicker than  if you use only a 1:1 risk to reward on your trades.

For example, let’s say you start the day off with a nice 1R win of $400.  The next trade you get into there is a news announcement that comes out which causes a good deal of slippage in executing your stop loss and turns what should be a 1R loss into a 2R loss.  Now on 2 trades you are down $400 or 1 times your initial risk (1R).  Out of frustration, you take an ill advised trade.  It begins to go against you and you, through a lack of discipline, move your initial stop in the belief that the trade will come back in your direction.  It doesn’t.  Now, what should have been a 1R loss turns into a 3R loss!  You know it happens!  You have now lost $1600 or -4R.  It now puts you in the difficult position of having to win your next 4 trades in a row just to get back to break even on the day.

Now, lets look at the trader who uses a minimum of 2 to 1 risk to reward on every trade.  Let’s say he faces the same situation as the previous trader but did not even start the day with a winning trade.  Let’s say he is down a whopping 6R or $2400 on 3 trades.  Because the reward side of his equation is always at least 2:1 or greater, it is possible for him to make back the entire 6R loss or more on 1 single trade.  Let’s say, however, that his next trade is the minimum 2:1 and he wins on it.  He risked $400 but made $800 on the trade.  A subsequent trade then sets up that has a target of 5 times his initial risk or 5R potential.  It takes a few hours being in the trade but finally pays off at +5R or a profit of $2000.  Now, in only 2 trades this trader has not only made back the 6R loss caused by market mishaps and a lapse of discipline and actually profited $400 ($2800 profit – $2400 loss)!

It is much easier from a psychological standpoint to know you can recover from losses like these in 1 trade.  It is much more pressure to have to face going on quite a winning streak just to get back to even.

Anyway, hope this helps provide some perspective.  Do yourself a favor and start the trading year out the right way.  You can try the MTPredictor trading software for stocks, commodities, futures and forex for 15 day at $95 and see how the power of risk, reward and position sizing can turn your trading around.  Take the advice that is shared here and in the article (see link above) to put yourself on the right side of the equation and it will go a long way toward you becoming profitable in 2012.