Price Action & Profitable Trading Strategies ft. Tradeciety


– Oh, it’s like that. – I like to see myself. (laughing) – Welcome everyone, I think we are Live! I am sitting down today, I am sitting down today
in Frankfurt, Germany with Moritz and Rolf. Welcome guys. – Thank you for having us. – And if you guys are in this
live, come join the chat, we’ll be watching the chat,
it’s a super big screen so we can see the chat
completely well and comment down your questions, if you have
any questions for Moritz and Rolf. If you guys want to introduce
yourselves, that’d be cool, who you are, what
you do and a little bit of a background about yourself. – Sure, I’m Rolf, I’m 32,
from Frankfurt, I’ve been trading Forex for the
better part of 12 years. Six years ago I quit my proper job and then I sold everything
I owned, bought a one-way ticket to Asia and I
pursued my goal of trading and living with myself and
recently I moved back to Germany one year ago and now I settled
back, still trading Forex, features and some CMDs mainly. – Cool, what about you Moritz? – Well, I’m German too
obviously, I’ve just moved in next door to Rolf so
we’re gonna be neighbors, I’ve been trading Forex mainly
as a day trader for the past 10 years roughly and then
switched to stocks trading and now I’m trying to get
into algorithmic trading, so I’m all over the place, but
I try to keep it interesting. And right now together
with Rolf we’re running TradeCiety and Edgewonk which
is a professional trading journal and yeah, life is good. – Perfect, we have Anu in
the chat, welcome, Anu, says just bought Edgewonk
last Friday, awesome software. And there will be a link in
the description if you guys want to check out Edgewonk
and they do awesome work with that, and awesome work
with swing trading as well. So we’re gonna talk about
couple of different things today, about strategies, if
you guys have any questions, make sure to answer those
of course and I want to hear a little more about you Moritz,
you told me a few months ago you were looking
to go to swing trading and now you’re telling me
you’re more into algorithmic trading, so strategies
are encoded, why is that and what’s the process
you went through that? – What it was mostly, because
suddenly I had a lot of time to do swing trading, so
when I was day trading, I spent six, seven, eight
hours a day, and when I tried swing trading, I had
a lot of time and I always wanted to check out coding,
algorithmic trading and so on and I used a lot of time
to get into that and it has been quite an interesting journey. I invested around say 10,000 euros into, pretty much 10,000 into
software and books, material, data feeds, all that stuff
and it has been around four months now, yeah, and made
a lot of progress in those four months, I actually
have my first portfolio online already with a small
amount of my overall account of course and I’m test
driving that right now. If it works, I will
allocate more money to it. – Cool, so this is a great
example that you have to invest in either self,
towards training if you want to achieve something bigger,
I think that’s really important. – Definitely and a lot of time. But the thing is, I could’ve
done it without investing so much of my own capital,
however the learning curve, I shortened it by at least
three years, so it’s worth all the money to me. – Exactly, exactly. What about you, Rolf, I
want to hear more about your trading stock, what you
trade, I know you’re using (mumbles) as well, a little bit. – Yes, I trade three different
strategies and one is based on (mumbles). – Nice, so day trading
and swing trading, is that kind of what people expect
with (mumbles) I think? – I stared originally
one one hour time frame, and a little bit shorter
period, but over the years, I moved more and more into
the higher time frames, and now maybe on the
daily, but I still trade on the four hour time frame,
which is a nice compromise between the long term dailies,
because there’s not too much going on, but on the
four hour, you can have a life besides trading, so I trade
four hour, I like that, especially in Forex, you
have six candles in the day, maximum so it’s quite manageable. – Like it, so one problem I
found especially with this is that I probably have
only one strategy for myself and trading a four-hour
chart, I might only have like a (mumbles) per week,
so I had to go back on the one hour chart, what you do
is that you have multiple strategies, so how did
you come up with those? Are those some things you
got from books or are they something you got from
programs or you created them yourself? – I created by myself, I
started with one strategy, one setup only, but I saw
the same that you don’t have a lot of action especially
if you’re on the four hour on the daily, you might
get one or two trades per week if you’re really selective. But then I saw that there
are many setups happening which almost look like the
one I was trading, but they weren’t really quite the same. But then I looked at my journal
because I was also taking notes of the trades I did
not take, but which looked interesting, and there I
found some patterns based on a few other criteria
and then I tried to analyze those and I built the
trees, strategies and setups that I used. They are very similar,
when you look at my charts or my trades, they look
very, very similar, but they have little nuances, which one
is based on one adjustment, one uses moving average and
the other one is complete, pure price action and just
uses trendlines and support resistance and that stuff. – So people are gonna probably
ask after some point in this live what kind of indicator
you use for both of you and what is the best to use? So let’s go with Rolf first. – So the most important is
that you can use any indicator but you really have to
understand the indicator that you’re using. I often talk to traders, when
I ask them which indicator you’re using and then I
tell them I use RSI for one of the setups, to find
divergences, but they say RSI is such an immature
indicator, but then I ask them did you ever look at the
formula of RSI, do you know what the indicator is, how it
is calculating and what it is showing you? And then 99% of the people
never take the time to just look at the indicator and see,
oh it’s going high, I should buy, it’s going down, I should sell. But if you really look at
the formula, then you can get more insights into what
it’s really doing so I use the RSI which is a
great indicator or to use (mumbles) another one here. – Cool and do you have any
ways of using them that are different from most people? – No, I think they’re pretty
basic in how I use them, I use, for RSI I use the
default settings which is 14 and I use that mainly to
look for divergences after extended price periods
and the Bollinger Band, you can use them for
divergences as well when your price action fails to
reach, the Bollinger Band is a good signal if it
comes together with other components, I also like to
trade those spikes, volatility spikes and that depends, for
that, I set the Bollinger Bands to 2.5 deviations, instead
of 2.0 which is the default and that works quite nice too. – Cool. What about you Moritz? – When I was still, when I’m
trading manually it’s mostly pivot points for day trading
and for swing trading, moving averages, but to
gauge the overall momentum of a stock, in algorithmic
trading I prefer price action filters, on the daily chart for example which is just another
indicator to be honest. They just work much more
reliable than using indicator with extra parameters,
especially because the more parameters you have in a
strategy, the more prone it is to curve-fitting and
so yeah, when I do trading, I try to mostly use class
action filters and manually use pivot points and moving averages. – Cool, perfect. And one thing that I think
you guys talked about both times when I spoke with you
before is having that trading journal and to write down
your trades, what you do on a daily basis and what are the results. So I want to kind of dive
into, what did you learn from your trading journal,
are there some lessons you learned, strategies, for
your style that you applied after that? – Yeah, so even before I started
trading, I used the journal and people said, oh you’re
like a girl who has a diary, I think it’s very important
that you write down even what happens in your
life because if your life is worth living and it’s
worth recording, I think (mumbles) said that as
well and I really like that because only if you really
record your stuff, you can go back and see what did
I do, how did it play out and then when I ask the
traders for example, do you remember your
last five or 10 trades, then they’re already
struggling quite a bit. So if you don’t even remember
your last five trades, then it’s very hard to learn
from that and very often I saw that when I started
journaling, I wasn’t doing everything completely wrong
but there were certain mistakes I kept repeating,
like one big thing for me was there was always widening my
stop loss in the beginning and I saw that when I just
stopped this one thing, then my performance would
already change quite a bit, so that’s what’s quite a big
revelation where I always thought maybe my strategy is not working, but I didn’t have any
proof or way of proving it. But once I started recording the trades, I could see my strategy is
not that bad, but it’s just this little one thing that’s not optimal and that’s mainly, many
traders, they have no way of validating or checking
that so they’re always in this system and mindset
where they think, okay my strategy is broken, I need
a new strategy but they only see a strategy as a way of
finding entries but they forget that the strategy is
much more than just entry, it’s how you set stops, how
you manage targets, how you get in and out and everything like that. And that you can only find out
through good record keeping. – Yeah, yeah, this is amazing,
this is a very good lesson I have for myself. Once I tracked stuff, it
completely changed how I traded and completely changed what
I modified and what I looked after, because you don’t
want to trade and put the bad trade as your last time. You want to figure out the
right trade all the time. If you’re able to go back
and look at the overview of not one trade, because you
can get affected by one trade, but looking at the overview,
how often do you go back and generally look at all
the trades that are there? – So I open my journal the
first thing in the morning, before I start my platform,
I just want to see what are my last three or five trades
and I don’t even look at the outcome, I just want to
see how did I execute them, are there any problems,
or maybe I had some issues which are revenge trades, I
broke a rule or I was a little bit itchy and tried to get into a trade, also when I saw it, I haven’t
had the trade for maybe one or two days, that is also
a reminder that it happens, but you just need to wait. So every morning I just
make a quick check, and just for a few minutes. – I think that’s a good
idea, I think that’s a really good lesson I just got there, wonderful. And so I want to talk a
little bit about, I’ll answer your questions, guys, in a
moment, but I want to talk about price action, many
people like the topic, they hear the fact that price
action is the winning strategy and it’s the thing you can
make money in the market with, but I want to know how you
find price action and then the follow up question to
that is gonna be is how you apply this when you code a script? You see what I’m saying? – All right, so you can make money with the traditional stuff, pin bars and so on, of
course, but not the way it’s taught mostly. I started out trading like
that too, but I had to add my own twist to make it
work and I did that with my journal as well, I already said. Yeah. So when you do that with
a script or algorithm, whatever you want to
call it, robot advisor, great word, what you have
to do is basically, you have to change your thinking
a little bit for those. If you want to add price
action filters, then basically you look at daily highs,
daily lows, daily closes, close two days ago, close
three days ago and so on, it’s really hard to define
a pin bar in an algorithm, it’s possible, it’s not
that hard, it’s possible, but the real edge is usually
found in points, places where people don’t trade
when they manually trade. So, some very counter-intuitive
things happening, for example, price goes
down to the daily low, moves 10% up and then you
go long, that could be a viable strategy already,
but only on certain weekdays for example. So there are some, when I code
strategies, I try to throw all my wisdom out of the
window, my human logic because you can find edges
in places where you wouldn’t never think they are with human logic. – And I understand, that is the
process to create a strategy on the script, when you take
what you know from manual trading and put it on a script
or you start from scratch? – That’s what I tried to
do from the beginning, but it didn’t really work. – Okay, okay, so what would
be the process for someone wanting to code something
today, an article or something, do they take what they have
now, do they start from scratch and try to look at the chart or? – Yeah, I would look at the
chart, try to get an idea, try to find a pattern that
repeats itself only visually and then you try to put that
into rules and into very simple codes, don’t make it too
complicated in the beginning, you can simply test, go
long every time price breaks through yesterday’s high
for example and then you can look at the results
because it’s very easy to quote, backtest 20 years of
data, it’s done in 30 minutes and you can look at day of
week for example, different instruments, different
timeframes and you can add additional filters like volume
and that way you can get, you can almost always get a
strategy which is profitable in the back test, but then
you have to do robustness testing to see what also
works in live trading. – Nice, love that, more on
that later because this is a lot to explore in that topic,
but I want to get to your guys’ questions for now. We had Gregory that says,
this is a guy that likes philosophy. We did a live with you before about that, yeah, it’s a guy, Philip,
what are your thoughts on taking partial profit along the way? – I think it can be a good
idea if it’s not taken as an excuse, most people
like to take partial profit because it feels good, they
are scared that they are giving back all of their
profits, so they like to take some off the table, but
what often happens is that trades are on its way, it’s
working good, it’s moving nicely around and then
they take profits too early and they miss the later part
of the trade and then they might have a good strategy
but they’re always cutting the winner short and nobody
then looks at scaling out of trades, they left the
full loss, get to the stop loss, but only reach the
profit with half of their position, so that’s really not that great. If you want to scale out of a trade, in a profit, then you should
have very clear and precise rules when you do that and
under which circumstances, how does the price action look like. For me for example, I look
at scaling out when I see that the price is on its
way but I see signs that the trend is weakening in my direction, then I will take profits along the way, when I see very clear
signs that the trade is not looking that great anymore. – And do you have any rules
for that or is that you who looks at the chart and
says okay, maybe it’s going to be time to stop or do you
have to create rules for it? This candlestick or a
specific sign to look for? – Yeah for example if I’m in a long trade and I see that the price
is reaching higher highs and higher lows, on the way
up, I will take a partial profit or scale all of my
position when I see that the price structure is broken,
when the price is not able to push higher anymore
or when the high fails or when the price falls back
below a recent low and makes new low, then I will start
considering taking something off the table. – Perfect, that’s great. I have a question here, let’s
see, what brokers are you guys using in Europe? And this is a question I can
serve to you because I have no clue what brokers are in
Europe, so if you have any, not recommendation, it’s hard to look for, but are there some brokers
more regulated than others? – Yeah, especially in
the lights now with ESNA, with (mumbles) prescriptions,
that’s kind of a tricky concept and there are different
ways of dealing with that, some brokers, if they are from overseas, they offer something like
professional accounts now where you can still get to
100 leverage, even if you are European customer, but
as long as you make sure that your broker is regulated
not from a little island you’ve never heard about
before, and if they offer segregated funds, then
that’s a good starting point and then you can talk to
them about leverage options. As a good rule of thumb,
you should probably not even look at trading with 400
or 500 leverage, if that’s really what you need from
a broker, then I don’t think it’s a good starting point. – That’s a very good point, yeah. And what I’ve seen from past
for myself is that brokers with the most promotion and
the best offer are usually the ones that you want to avoid. – Yeah, especially when
you see brokers giving you $15 over discount or an add
on if you fund it through. – So, I guess, plenty of
Forbes sites you can go through to look at different brokers. But that really is down
to the person I think, (mumbles) with different
brokers and a swing trader. – And you don’t really
need one broker as well, you can have multiple
brokers to have a little bit of a separation. – Exactly, so what are the
other advantages of having multiple brokers, because
I personally only have one, and I never tried out a
multiple account, but why do you do that? – People prefer, if they
are scared that one broker might go bust, that way you
don’t have to put all your trading account and all
your trading funds into one broker and second, you don’t
need to put all your money with one broker. If that is something
that would make your life a little bit more stress-free
and your trading a little bit easier, on your nerves,
if you don’t have everything in one area, then that’s also a good idea. – Nice, good question here
that I’m kind of curious about, when is it sensible to withdraw
money from your trading account? Is it after 30 trades,
50 trades, a 100 trades, or do you have some timed
deadline to withdraw money from your account? – It depends on your
cost of living of course. So I would never withdraw
more than 10% of the broker account because it gets
kind of annoying to rebuild. But you also have to pay
yourself especially in the beginning when you are just
starting out, even if it’s just five dollars, who
cares, it feels great to buy yourself an ice cream
with money you made trading and then it keeps up the motivation. I wouldn’t go by trades, I
wouldn’t even go by it monthly, if you really want to
live from this business, I would get a check one time per year. And live from that one
year, and that’s it, that’s how I do it. – Cool. I think especially at this
point it’s really important to develop multiple streams
of income, multiple ways to make money because if
you’re only to get by on this check throughout the year
then you can wait a long time to get that money. So here’s a question from
Gregory that I find really interesting that I
answered before for myself, but the question is how
do you find fulfillment in trading when trading is
basically not really fulfilling over the long run and how
do you deal with the idea that traders are mainly
at their computer trading all day and that’s it? – That’s a very good question. And I wrote about this like
a few weeks back on the blog because I was struggling
with that myself as well. I come from a corporate,
finance world where at the end of the day you
have something that you’ve made or you participated in
a project which is bigger than you and with
trading, that’s not there. Essentially, you don’t
contribute anything, your job is not really
needed and I was struggling with that a lot so, that’s
also why I think for us, or for me, having Edgewonk
and having TradeCiety and I even do other things besides that, it’s so important for me to
keep myself engaged as well and that’s also why we are
now getting an office together because sitting here 24/7
by myself in this office, it’s great in the
beginning, it sounds great, you’re your own boss, but humans are social and we
like to chat with each other even though we chat like
12 hours per day on Skype, you should have somebody
around you, that’s even nicer. – And that’s pretty much
the same way I answered in the past, are there any different ways or any secret ways to
make this more fulfilling? – Yeah, for me, it was
always, because I’m a creative typist, I like to write songs
and I like to write fiction and so on and so as soon
as I had a strategy running and working, I would lose
quickly interest in it because the creative process
was basically over and done. It was just the execution,
so I always struggled a lot with that. I basically fixed that
problem by moving into algorithmic trading because
now I can learn coding and test hundreds of ideas
every day, so that’s quite rewarding actually. As for the ethic or the
moral part of trading, I never cared too much
about that, because unless you want to be a social worker,
I think no one contributes that much to society. Artists and social workers
are pretty much the only people in my eyes that really
do something for humanity and everyone else is in their
job to make money, right? Or following their passion,
so I’m really passionate about what I’m doing right
now and I’m also quite happy we’re moving into an office because it can be quite lonely. – Yeah, yeah. So that’s a good question,
I think we got left here a few minutes, what is the
difference between traveling and trading, kind of like I’m
doing now, like you did as well in the past, versus
having an office and an apartment where you live
pretty consistently? – There’s a lot of differences. I think especially on the
higher timeframes, when I was traveling I was mostly
going to the daily, not the four hour, but I found
that traveling also keeps you a little bit engaged,
it’s not as boring because you’re always in a new city, there’s new food, new things
to see and people to meet so that’s something that’s also nice. But at the end of the day, it was always, all the new impressions
are really hard on you and it’s really hard to come
home and focus on the work and be very focused on your
trading, so I found that to be a big distraction
after a few months, that’s also why I decided okay
now it’s time to come back and settle and get a real life again yeah. – Anything different? – For me, it was pretty
much the same experience, I love traveling, but after
so many years on the road, it just got a little bit
too tiresome and especially with TradeCiety, in its own
routine to get things done and it just works much better
in an office environment like with a stable life. But that being said, I
still miss traveling a lot. I will be probably in the
office six, seven months a year, and the other five months. – I think the ideal
duration of the travel, when you travel, do you go
to a place for let’s say 10 days, 30 days, five
months or is it always a varying event, where do you
go and what you want to do? – Yeah, pretty much. I never book too long,
I book the first three, four days and if I don’t like the place, I move on, but if I really love a place, I have found that 30 to
90 days, usually 30 days, it starts to feel like
you’re living in that place and that’s when it gets
really interesting. Bu after 90 days it gets boring
even, so time to move on. – Yeah, yeah. Cool, love that. Question here from, I think
I’ve seen, yeah, what is your YouTube channel for you guys? I think you have a YouTube channel anyway. – Yeah, the first one
is YouTube.com/edgewonk and the other one is
YouTube.com/tradeciety. – Or just type in TradeCiety
or Edgewonk in your YouTube and you will find it pretty fast. These guys did an awesome job
with their YouTube channels of course. – Thanks. – Good question here, how
come there are not many female traders, is this because
women are naturally more risk-averse? I’m sure you guys are
really good to answer that. Or yeah, what’s your opinion on that? – What’s your opinion on that? – I think the way most
people get into trading, for me, it’s just a way to
make money independently and I found trading then
and I think for women, they would look for
different things and I tried to show trade to my new wife
and it was not something she got very excited
about, just seeing the candles and then what are you doing? You’re just buying and selling. – I think you’re naturally
drawn to something or nothing, it’s probably just– – Yeah, it’s just like
different interests. – Be careful with that. (mumbles) – Yeah. Good question here from
Al’s Productions, how does a normal day look like
while trading and traveling? Again, I’ll answer for me
and you guys can answer for yourself, I’ll let you
answer first and if I do things different I’ll just fill in that. – I was always making sure
that I have travel days and that I have work days. So there were days or
periods where I would stay in the hotel or at the
Airbnb and I would just focus on work and there were
days where I would go out for just touring and sightseeing
and during those days when I was mostly doing
the sightseeing, I would do some work in the morning and
do some work in the night. And yeah, so I don’t try to
crowd in everything in one day because you don’t
enjoy anything really. – Same for me basically. The day trading stuff depended
on the time zone I was in and I tried to get everything
done either in the morning or in the afternoon if
possible and then I would use the other half of the day
for doing sightseeing or enjoying life. – But then there’s also this
part of you have to manage trading plus business plus traveling. Are they done in different
parts or do you have more days for only work and then? – I tried, I started
using komodoro technique and that helped me to get
everything done in basically six to seven hours and I
got up five in the morning and I finished around 12 or one. And then I didn’t do anything
for the rest of the day. – That’s pretty good,
that’s pretty good, cool. It’s pretty much the same for
me, except that I traveled every day, something different,
to be active and stuff, but yeah, it’s always
working on different parts, basically trading and
travel, but it’s pretty much you must do it frequently I think. We have a question here
about emotions, let’s see. How do you keep your fears
and emotions out when trading during the day? – It depends much if you
only rely on trading, that’s a big one. So, that’s also why we do
other things besides just trading and I saw it on two
or three students of ours who make the jump to full-time trading, they quit their job and
then they suddenly saw that trading was not as
well anymore and then once they, I suggest that
they maybe go back to work at least part time, then
you see that you can take a lot of pressure off. So many traders have this
romantic idea of being a full time trader and traveling
around the world, but once you completely rely on
yourself and once your trading has to fund your expenses and your bills, then you really have to
check why are you fearful, why are you greedy and then
you find the underlying cause. – Yeah, yeah, and you
better find interesting things to do if you only trade and travel, because you can for some
time just trade and travel, travel the whole day but it
doesn’t get really fulfilling over time. – Yeah, especially if you
have your phone in your pocket and you’re always checking
your trades, and you’re ruining your traveling as well. – So let’s take a scenario,
let’s say you have a really bad trading day, how do
you make sure you’re not affected by the losing
trades when you trade? – For me, it’s a lot about
sports, I like to go running, I like to go to the gym,
to the sauna, in the spa and that’s usually what
helps me, especially after a hard run, put in some nice
music and the world will look quite different after
you come back from a one or two-hour run. You’re not so stressed anymore
and you can put everything into the perspective. Especially with some
experience and then you can see okay, after 10 years of trading, you will. And then when you do
something completely different and when you come back
the next day, everything will look quite different. The worst thing you can do
is keep sitting in front of your computer and
trying to make it back. Just remove yourself
immediately and that’s fine. – What helped a lot for me
was changing my thinking from time to money. Which sounds kind of
counterintuitive, but what really always annoyed me was when
I would work the whole week for example and then lose
all the profits of the week on Friday. So that means to me, I didn’t
look at the dollars because it’s not really important
to me, what I looked was the time I put in and I
had nothing to show for it, so that really annoyed me
a lot and tilted me a lot, so what I did was not looking
at time anymore, lost, but only the dollars and
I never again looked at my (mumbles) actually, so I
didn’t see, okay, two days ago, you had the equity highest for
two weeks, so for two weeks you worked and you gained
nothing, that sucks, so I never looked at my equity
curve again and I was fine. – Yeah, cool. (mumbles) And there’s a question by
Philip, what are your worst days of trading and what
was your best day like? I guess over time that’s
really important, in the sense that you don’t think that
the best days are where you make the most money, maybe
for some people the best day is gonna be that in the beginning,
but then it’s more about how much thought do you process over time. So what would that be like,
what would be the definition of your best day of trading? – I think the best day of
trading is when you have wrote down your plan
and you have executed it and you didn’t make any
mistake in doing so, then you can go to bed at night, (mumbles) and sleep like a baby. – Feeling you did your best job, yeah. – Yeah, there was a recent
trade I mapped it out on Sunday, on my trading
plan, I got it on Monday, I didn’t do anything in
the week, just let it run, every day I check it, it’s
okay, it’s okay, it’s okay and then by Friday I got to
take profit target, followed the plan and yeah, that’s pretty much. You shouldn’t have any best
day because then you probably had a lot of swings in your account. If you suddenly have a huge
winner which makes 30 or 40% of your account then
probably you’re doing something wrong I imagine. – And a trader once told
me, is if you have these high swings, where you
have like a good trade, you’re probably gonna feel
really bad when you have a bad trade and that’s why you
want to be in the similar state all the time. It makes a big difference. – The worst day was probably Fukushima. It was horrible, not to
say that it wasn’t horrible for anyone else, but I had basically put
in a position and I went to the washroom and I
came back and I was broke. I’m like, I wasn’t salty,
but it was horrible. – Not cool, not cool. If you got a really good
question or if you have any question, down below
in the chat, I’ll make sure to answer them, when
there’s a bunch of them, I’ll keep up with all of them,
really good ones for sure. We have a question here that I saw before, yeah, when did you guys start to trade? Did you start with a demo
account and did you lose a lot of capital in
that demo account before moving to a live account? – I was never really a big
fan of demo trading because I don’t see the point of it. So yeah, I lost in the
beginning, I lost a few, at least reasonably sized
live accounts, it hurt, but it was not like my
lifestyle had to change. So yeah, there was a few
times when I didn’t know what I was doing in the beginning
obviously and looking back it seemed like funny
blowups now, but I learned, I always made sure I
learned something and tried to learn something from
it and that at least the money I lost was an investment,
it was not for nothing. – Good thing is it’s always
better in the future, after you’ve done the thing,
and once you’ve make it to become a trader. – Yeah, it should be like that. – Anything different for you, Moritz? – I mean, yeah, demo trading
to get to know the platform and when you’re new to
trading to learn about all the types and so on and
then as quickly as possible move to real money and move
to amounts where it hurts a little bit when you lose
and you’re happy a little bit when you win. I have the experience from
most people from Western, developed countries, that’s around $50. – Nice, yeah. Question here about stocks
or equities versus Forex, are you finding differences
in trading those versus Forex or are they pretty
much the same thing? – For stocks, yeah, of
course, completely different, they move different, they
trend differently, in Forex there are no real trends because
you can just flip the pair, Euro-Dollar, Dollar-Euro
and because they are pairs, so there are no real, unless
okay, quantitative easing and so on, Yen a few years
ago, okay, but you don’t see that very often so stocks,
you have to learn some different techniques, you can use volume. They move differently,
you have to get used to it definitely. – Yeah, and do you have a
way to pick one or the other, let’s say, if you’re
starting out to be brand new, would you go with Forex or stocks or both? – Stocks, always stocks. – Okay, why is that? – Easier to learn for me, it fitted my personality much better. It’s not the answer for everyone but for me it was much better. – Nice and do you swing
trade stocks as much as you day trade though? – I don’t day trade stocks. – Okay, only swing trade, cool. Interesting. And what about you Rolf,
are you doing Forex or stocks? – I see it different and I
only trade 80 or 90% Forex. Stocks, I cannot really deal with stocks, the way how I trade, I like
this continuous flow of a chart, I don’t like that, stop that
tonight and then you have to get up in the morning
and that really throws off how I look at charts and how
I look at the price action so that’s why I prefer Forex. – That’s why when you get
into trading, look at as many markets or asset classes as
you can and try to find out what fits your personality best. – We have two different examples
which is very interesting and I’m also different,
I’m mostly Forex as well. So that’s very interesting. Interesting question here,
what do you guys splurge cash on the most, what is your thing? – Food? Definitely food. – That’s good. – And travel costs, travel costs and food. – Travel takes of course. – Yeah, not so much food, I
like traveling, but I also like to buy nice things, so
I like to spend some money sometimes, yeah. – Nice, cool. What about, this would be
more for Rolf, but what are your thoughts about
these specific pairs, the really strange pairs
that no one trades, do you trade them or no? – I trade exotics like the Swedish krona, Norwegian krona, I also trade sometimes the Turkish lira, but I only
trade them on the daily, rarely on the four hour
sometimes, but you have to make sure there are different periods. There were periods sometimes
when the Turkish lira is completely going crazy
and in those periods you should stay away from them, but there are also periods
when it’s trending nicely, moderate volatility, and
that’s when you can trade it. So every Sunday I go
through almost 45 pairs on the daily and the four
hour and every weekend I choose new pairs for the coming week. I look for which pairs
are moderate volatility, good trending phase, nice technicals and I would keep them
on my inner watch list and I completely ignore the rest. So every week or a few
weeks, I would trade completely different pairs. – That’s interesting, and
do you bet your whole thing on all the pairs, like
you’re stretching on all the pairs or is it something
that you know will work based on how the market behaves? – Yeah, on the higher timeframes
if you see that there’s moderate volatility, nice
technicals, if you see that the market is paying
attention to support resistance, previous highs and lows,
then it’s reasonably safe to assume in my opinion that
for the next few trading days at least the trend is
likely to continue, yeah. – That’s a good answer. Because some people think
that you have to back test every single thing through
20 years or whatever of data, but if you know
that it should work based on the market and how it
behaves, I think there’s a good chance it’s gonna work. – Yeah, especially manual
back testing is quite hard because it’s very easy to
skip over the bad trades and also it’s very easy to
skip over boring periods and that’s where we have problems. Everybody can take the easy
trades that jump at you, but if you’re there to
sit in front of a screen at a back test, it’s quite
easy to just take the forward button for two or three
weeks and then you see a nice setup again, but if you
have to sit in front of your computer for two or three
weeks and nothing happens, that’s quite a different thing. – Nice. Interesting question
here from Ann I think, what was your turning point
when you started to understand that trading was kind of
a more concrete future, when you could go into it
more kind of down to Earth, to make profit with? – That was when I started using a journal. It’s an old answer, but
it’s also the right answer. When I had it black on
white, that I had a positive expectancy, it was only a
matter of repeating what I did again and again and again
and then it was quite obvious what I had to do. – Any different answer for you, Rolf? – Yeah, for me it was when the
real life was coming closer, so I was trading even before
university, I got into finance, international markets
in the university as well. And then after university
I had a very nice job, but then I had my trading
at the side which was going okay, I was seeing good
results and then I said, okay, now is the time if I
want to take it seriously, now is the time and yeah,
I took it very seriously, I treated it like it was a job
actually where you prepare, where you analyze, where
you do your homework and that’s where you
see the progress here. – What was your first
trading journal like? Was it simple, was it bad,
was it complicated to do or? – I probably ended up with
worse than 999 so the first version was too simple in
parts and too complicated in other parts, took to long
to journal and I revised it many, many times. Eventually I put all that
experience and knowledge into Edgewonk actually
so, it’s years and years of hard work in Edgewonk. So we’re quite proud of that. We started Excel, I think you too. – Yeah, I started with Evermoon and Excel, I had Word at one point. And then at one point I
was printing out my charts and it was never really
anything until I moved to Excel and slowly built
the formulas and stuff. – What are the top three
or five things to track in a journal? Let’s say putting aside
the profit or loss. – The most important ones,
of course your expectancy, your setup, the markets, market condition and that’s four, what else? – For me, because of the
high timeframes, I struggled in the beginning a lot
with it, I tracked trade management a lot in my trading. So because micromanagement
is a very big problem for many traders, so
that’s probably the biggest one for me and then I
spent a lot on (mumbles) which is basically you
become more process-oriented, you look at your mistakes
and you can always add new comments for certain
things that you want to improve or want to track. So trade management for me
is the biggest one and then thought process and mindset stuff. – And it works on all fronts,
for pretty much any type of trader, right? – You can use it for all
markets, even for cryptos. It’s easier if you’re
on the one minute chart because then you’d have
a lot of work to do while you trade, but you can also
use the import function in Edgewonk, upload your statement. – Pretty cool, pretty cool. So Al’s Production was
saying I bookmarked Edgewonk, I will probably use it
more when I get to Forex. But yeah, you can use it in any market. – Any market, any currency, any timeframe. – And as a reminder, it
can be (mumbles) of course. Do you find there are
better times in the day to trade Forex? – During the openings, London
opening, New York opening, New York opening has always been tougher than the London opening
for my trading style. If there is one time to
trade, as a day trader, it’s the London opening. – But you don’t trade
London open now, right? – No. – Okay, interesting. What about you, Rolf? – The four hour doesn’t
really matter that much, but there’s certainly the
component when you want to judge your trade, is it
moving nicely or isn’t moving nicely, but you
still have to look at, okay, the Euro is strong
and the Japanese Yen, it will probably not move
as much during the Europe session, but when the US
or Asian session is open, then it should move a little bit. So that’s something you have
to take into consideration. – Have you found it in
most of your trades, on the four hour chart, is
it mostly one or the other, or is it various? – Yeah, on four, you
obviously have more charts because you have more
candles, so there will be more trades on the four, but
I really like the daily. If I see a setup on the
daily and the four-hour, I would prefer to trade
the daily because it’s just smoother, you don’t have anything to do. You have to look at your
charts one time per day, instead of six times per day,
so it’s quite convenient. – But stop loss can be
bigger and your trade value may be more far, no? – Yeah, obviously, and
that’s the trade-off. Many traders don’t see,
everybody says you should go to swing trading, swing trading
is easier, but it’s a very bad generalization because
you have to stay long in your trade, you have to
wait longer in the trade, that’s the downside of it. On the other hand, compared
to day trading where you have to have a really stable
mindset, after a loss you need to just shake it off because
there will be the next trade in the next five minutes. – Exactly. And I believe, this is
based on my knowledge, but I believe there are
some markets where swing trading works really well,
like sometimes it works really well and sometimes
it seems like you better day trade than swing trade,
because you don’t get to take profit, have you seen that
before or is it only me? – I think that’s where my
weekly process comes in where I take the Euro
average pound for example, it has been ranging in a
very tight range for the last few weeks, so that’s
one thing you’d want to trade on the higher timeframes. – That’s a really good point. And I think that with
weeklies, you have to know what to focus on. Very good. Do you place trades after
the open, I suppose, yeah? – After which open? – That’s general, you trade
after the open, because you can’t trade when it’s closed. (mumbles) – I mean, generally of
course you can place trades after the open. – Yeah. How many positions do
you place on a busy day and I guess on a non-busy day? Is it varying a lot or pretty
much the same consistently? – There are weeks obviously
when you have more trending periods, in the higher
timeframes, then you will place naturally more trades, but on
average, I get four to five, sometimes six trades a week on
the four hour and the daily. – That’s good, do you agree? – Yeah, it varies a lot
depending on news items. If I have a lot of
high-impact news in one day, there will be more trades. I started to limit it, in
the beginning I had problems with tilt, so I limited
it to three shots a day, two shots a day, even, two
trades, then when I go to bed, I traded one more and
eventually I stopped trading sometimes altogether if there were no high impact news at all. – I think this is a good
lesson if you find yourself kind of placing trades, but
you want to revenge trade and place more trades,
it’s kind of good to limit yourself to three trades
a day or two trades or one trade. But if you put a rule
and you don’t respect it, then you have something more to work on. So then you have some work,
so yes, that’s a really good way to do it I think. I think we’ve got all
questions, if you guys have any more questions,
comment below in the chat, the chat is full and
(mumbles) but I want you guys to maybe tell people what
should they expect from Edgewonk (mumbles) of
course, but what should they expect from it and how can they use it to become better traders? – So one thing is that
Edgewonk, the trading journal is a labor of work, but
it’s also good work, it distracts you from
your charts a little bit and many traders, they are
too focused on always sitting in front of the charts
and they’re always chasing the next signal, but you
don’t grow as a trader by looking at charts and hunting signals, but you only grow when you
take a look at inside of you, you look at your journal,
you put in the time and that’s where the trader really grows. It’s also a nice thing and
very easy thing to judge yourself, how serious do
you take trading and if you are not ready to put in
the time a little bit, if you only look at charts,
watch YouTube and Netflix besides that, but you’re
not ready to do some actual work, then yeah, you should
consider that and ask yourself how serious you
really are about trading. So a trading journal can
be a very, very good tool, ask any trader in any trading
book, the trading journal is always mentioned there,
so the journal is definitely one thing and especially Edgewonk, it grows with you. When you open Edgewonk for
the first time, it might look very overwhelming,
but as a beginning trader, just get into the mindset,
you record the basics of your trade, you see
the basic information. Especially in the beginning,
you don’t need to work on everything in your trading,
just focus on probably mindset, avoiding the big
mistakes and then over time you can grown with
journal and with Edgewonk. – Yeah and I think the
most happy feeling happens when you open your journal a few months, a few weeks after and you
see all of your trades and you see how you can make things better which is where you have the
whole value of the journal. – Yes, and also as you
said, during the podcast, is that many traders report
when they’re about to take a trade, but they think, I
have to put it in Edgewonk and it would screw up my
(mumbles) meter and they would think twice about it. – Do you log your trade
before, during or after you’ve put it down? – I log my trades, you
can enter open trades, so as soon as I have an
entry I will log it with the entry price, entry date,
stop, take profit and also custom statistic around
the market conditions and then when it’s closed
I will add the rest. – Cool. – I love Edgewonk. – Perfect, love it, love it. We have another question
here I think we answered partly which is what moving
average are you using, are your favorites and why? – Well, that’s the question
we get a lot and I can only say use one and stick to
it and get used to it. Fast moving average 20
and 50 and slow ones, 200 and 150, but it’s
not really important, you can also put it to 120. – The most important is
that you have consistency, you don’t take the 21 day
and then you see I should’ve taken the 22 period and I
could’ve avoided a loss, and then you change this one
and then next week you see the other and you’re just
chasing your own tail. – And that’s one mistake I made. – Choose one, stick to it. – Because we can show and
help you what’s (mumbles) basically or that’s
what people should maybe use them for more? – It’s not the moving
average, if you lose a trade, it’s not about the moving
average, and also a trade is not only the entry, but
you have to look at all the things that come
before, how you manage it, how you place your stock,
how you take profits, everything has to come
together, and not just the moving average, it won’t
make the difference between profit and losing a trade. – Very useful, yeah. What about Fibonacci,
do you guys use it or? – Yeah. – Okay, interesting. – I’m never too sure whether
it’s a self-fulfilling prophecy or not, but you’re
not ever too sure about anything in trading, and
Fibonacci are like mostly for the extensions when you
see swing go down to the 50 retracement, then
basically when it goes to the 127, 161 or 200 extension,
you can manage your trade or take profit. The extensions are the most
interesting thing about Fibonaccis you may ask. – Interesting, cool. So I really appreciate it,
again there’s gonna be a link below for Edgewonk as always
if you guys want to check it out and if you want to
reach these two people, where can they find you,
connect with your or reach out? – Just go to TradeCiety
or go to my Twitter, TradeCiety and then hit
me up or hit Moritz up, and yeah, our emails are everywhere. – Perfect, everywhere. – On TradeCiety it’s everywhere. – Nice, nice. Welcome, Gym Bro,
TradeCiety, not TradeSociety, but TradeCiety. You want to spell that out for people? – Yeah, it’s Trade and then C-I-E-T-Y. – Good job. – Good job, yeah, perfect. Spell it right, just perfect. And welcome Gym. And I’ll catch you guys pretty soon. – Take care, bye. – Bye, bye! Bye, bye, Facebook.

9 thoughts on “Price Action & Profitable Trading Strategies ft. Tradeciety”

  1. I started journaling and using edgewonk one month ago. Never really thought that the trades i made with "no setup, entry by emotion, chasin the market" have this huge bad impact on my performance. Thanks for this eye-opener.

  2. Till today I still cannot understand why large leverage is bad? Isn't that a god send if you know how to use it?

  3. That Pomodoro technique, Human relation , Traveling , 3-5 Students and personal experience and things to notice in Trading , Situation based Emotional Control @30.54 ,

    @31.57 That's what happening to me Right Now (Obviously i am way smaller trader in comparison to you guys) .

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