steadytrader

trading ideas. At The Steady Trader, a clear trading plan and multi-timeframe trading approach is the basis that helps Investors to navigate the markets.

only will it help you become a very profitable trader, but more importantly it will help you develop a feel for the rhythm of the market. To feel the market and be able to sense its next possible moves is the ultimate goal. You want to become ‘one’ with whatever market it is that you are trading. Trading is an art, not a science, but a clear trading plan is of essence for success. My three bucket trading approach and plan is straightforward to understand and focuses the trader on executing high probability low risk strategies in multiple timeframes. My strategies/systems are divided into three, what I call, ‘buckets.’ Each bucket is made up of the strategies of mine that have similar time horizons, allowing me to clearly distribute my trades and investments over different timeframes. Let me explain: Many if not most amateur investors when they start trading don’t have a strategy much less a real trading plan. Those traders that make it through the first few months of pain will eventually come to the realization that they need more structure in their trading approach (and knowledge), which often leads them to read a few books, attend a class, or follow an online course. While this education phase is good in and of itself, the problem most often is that these traders only learn one system or type of setup and think they are ready to get rich. In all my years of trading I have never come across a single system that works consistently all the time, meaning in all market conditions and economic environments. The individual trader needs an approach with multiple legs (systems) or else most likely won’t consistently pull money out of the market. The solution for me is to have trades and investments across multiple time-frames. Here are just a few of the vast benefits of diversifying trades and investments across multiple timeframes: • The trader increases the consistency of profits • The trader greatly decreases the correlation of his portfolio vs. the market • The trader gains significantly better perspective of the market’s current standpoint and opportunities • The trader can act from a more neutral standpoint and will trade without stress • The trader will find more trades with the most favorable risk/reward ratio