Here’s one of the best trading strategies I’ve seen in my trading career… it’s simply so versatile.
In short, it can help you identify the best performing trading candidates in the best performing markets. Stuart’s recorded a short video for you below, explaining how you can employ these techniques in your trading.
Please note: Just because Stuart McPhee (www.tradinginanutshell.com) applies the concepts to stocks doesn’t mean it can’t work equally well in other markets. It’s application is much more wide reaching.
For example, imagine ranking currencies from the strongest to the weakest and then trading both extremes against each other on the FOREX. If you understand the power in this, you’ll understand this single idea is worth its weight in gold.
I’m eager to read your comments, so please post them below. Also if you want to find out more about Stuart’s work be sure to grab a copy of Trading In A Nutshell - Click here.
When I was in New York for the Traders Expo in February, I met with the co-founder of the Expo, Tim Bourquin.He also runs a traders interview website and so he agreed to phone me in my trading office upon returning back to Melbourne and interview me.
The interview went for about 23 minutes and maybe the most candid interview I have done, as it includes some of the challenges I faced when I started trading. I think you will learn a lot from it. Click here (or right click) to download it.
With over 750 participants (and counting) taking part in our recent survey, the results have been fascinating. I was so thrilled with the feedback I invited Stuart over to my recording studio to get him to comment on your responses.
Originally we chatted for over an hour but I’ve edited the best bits down under 20 minutes. You can watch the footage below:
So I ask you now, what’s holding your trading back? Post your comments below.
I’ve just finished editing/uploading an interview Stuart conducted with John Netto (fund manager and author of “One Shot - One Kill Trading: Precision Trading Through the Use of Technical Analysis”). Stu recorded this one as John left the stage at the New York Trader’s Expo 2009.
It’s 10 minutes long and John shares some excellent trading advice. I’m happy for you to check it out but wanted to ask for a favour in return
What type of trader are you?
I’m wanting to find out more about my subscribers (that includes you) so I can best help you move your trading to the next level.
Accordingly, I’ve just created a quick 3 minute survey I’d like you to take. It’s only 14 questions and 50% of them are multiple choice!
If you’re happy to help out, right after filling out the survey, you’ll be redirected to a page where you can watch the John Netto video.
I’ve been eagerly waiting for Stuart’s return after he was speaking at the Trader’s Expo in New York. After catching up late last week it was great to hear the trip was a huge success!
Stu’s presentation was well received with one attendee commenting that his 1 hour presentation provided more value than another 4 hour paid session he had attended - suffice to say Stu was quite chuffed.
Whilst in New York he also took the opportunity to record a couple of videos for you… one at ground zero, and another on Wall St, watch them below:
Your Trading Coach,
David Jenyns
Ps. I’m just encoding another video interview Stuart conducted with John Netto… I should have that posted for you next week.
Towards the end of November, I travelled to Shenzhen, China to present at the International Finance Exposition (FINEXPO).
The Shenzhen FINEXPO was jointly held by China Council for the Promotion of International Trade, China Chamber of International Commerce, and Shenzhen Municipal People’s Government between November 21-23, 2008 at the Shenzhen Convention & Exhibition Center.
Whilst I was in Hong Kong before heading over to China, I took the opportunity to see one my mentors, Ray Barros and interview him.
Starting trading back in the 1970s, Ray has tremendous experience and in this interview, he talks about how undisciplined traders can become disciplined, how to develop entry signals and his thoughts on technical indicators, how the financial crisis has affected his trading, why risk management is so important and how his trading differs between his personal account and his funds management.
Finally, he offers the best advice he could give a close friend or family member who wanted to start trading.
You can watch the first part below:
Part 2:
and finally Part 3:
I even did an informal video on the morning of my presentation outside the Convention Centre - you can watch it below:
Some of you may know that I perform a consulting role for the Australian Stock Report (ASR), one of Australia’s leading daily trading reports. The other day I was in their office and took the opportunity to interview Geoff Saffer, their Head of Research.
Geoff talks about how we got into this mess, the price of oil, currencies, housing markets and what needs to happen for things in the world to improve. You can watch it in three parts below.
At the end of October, I travelled to Dalian, China to present at the Global Chinese Financial Forum.
The Forum is the largest series of bilingual (Chinese/ English) financial functions in North America. Dalian is the centre of foreign trade within the province, and is one of the largest international commercial ports in China, being the northernmost ice-free harbour for the nation.
I grabbed the chance to jump on the main stage and interview one of my mentors Daryl Guppy, who spoke about the Chinese economy in light of the global economic crisis and the US Dollar. You can watch the first part below:
and part 2
I even did an informal video the next morning, which you can view below:
I will be travelling to Shenzhen in late November for another expo so I plan on conducting more interviews and showing you when I return.
I have taken the following excerpt from my book ‘Trading in a Nutshell, 3rd Edition’. Have a read of it and then watch my video below. I am interested to hear how other people approach this, so please leave any comments below.
Ultra Comfort
I recall a question I received several years ago during a presentation that I made to a large group of traders and it was about comfort. I had just stated that two feelings that you should consciously experience often are confidence and comfort.
Confidence in your own approach, your plan and your implementation of that plan, and comfort in the way you feel about your whole approach and with the level of risk you are taking with your trades.
These comments were on the back of me stating how all of the actions required for successful trading go against our natural human instincts and tendencies. Therefore, the question was raised how we can be comfortable when we carry out these actions, as they generally cause a level of discomfort for most people.
For example, cutting a losing trade quickly and denying yourself the opportunity to break even in the trade goes against our natural tendencies and is an uncomfortable experience for many traders. Yet, we have to do it.
This presents the challenge of how we can routinely make decisions that make most people naturally uncomfortable yet feel comfortable doing it. I call this feeling ‘ultra comfort’.
Ultra comfort is a level of competence whereby you feel a sense of well-being and contentment on a regular basis with your decisions, however you are routinely making decisions that make most traders terribly uncomfortable – so uncomfortable, that they often drift away and end up deciding based on what will make them feel most comfortable instead. This will often result in a poor trading decision and this same notion was introduced a little earlier in this chapter under discipline.
The aim for you should be to attain a level of competence and humility where you have a level of ultra comfort and just make decisions without hesitation even though they go against your natural instincts – this is what consistently profitable traders do.
