Featured Article

Razor Sharp Focus on What Matters

samseiden
Sam Seiden
Online Trading Academy, Chief Education, Products, and Services Officer

Today’s article will be simple, short, and certainly have a razor sharp focus as that is what is needed to succeed in just about any endeavor. I am going to suggest something today that some people won’t be able to do and others will disagree with it. A few others on the other hand will be able to do this and are already doing it in Online Trading Academy’s Mastermind Community and The Extended Learning Track (XLT), our online trading room at Online Trading Academy.

One of the most important things you need to do to be successful when short term trading for income or long term trading for wealth is to have proper focus. As a short term income trader, all you need to do each day is look at a chart, apply the Supply/Demand strategy and focus on where institutions are buying and selling that day. The challenge is to only focus on that.

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Below are two trades on successive days last week in the DAX and the EURO that we took with some of our students. On November 12th and 13th, we started the day out by locating on a chart exactly where banks and institutions were big sellers in these markets, the supply levels you see below. We then sold short at those levels when price rallied to them and profited from a downside move in both cases. These are examples of what we regularly do in our trading but the key is the FOCUS.

Daily Market Overview Service: DAX Futures – 11/12/14. Income Profit: $750.00

DAX Futures

XLT (Live Trading Room): Euro – 11/20/14. Income Profit: $1,125.00

Euro What makes this focus so hard for most people is all the other things they let influence their decision making process. For example, prior to taking these trades above, you may want to think about the economic numbers coming out that day. Wrong! We don’t consider economic reports or pay attention to them. All we care about when it comes to profitable trading is where the big buyers are buying and big sellers are selling in a market. You may want to see what’s happening in Greece or Spain or the next country nearing default. Let me tell you something… allocating one ounce of my focus on that is useless when it came to identifying where banks were selling the DAX and Euro and then shorting in those areas. The focus needs to be 100% on where the significant sell orders are that day and then selling at that price, nothing else. When it comes to profitable trading, knowing the details of what is happing to the European economy is as important as knowing what the Rover is doing on Mars that day, you get my point.

When people use the term “100%,” most of the time it’s a figure of speech, I am not. Again, when it comes to profitable trading and longer term investing, 100% of your focus needs to be on one thing and one thing only: Where are the significant institution buy and sell orders, period. As I always write about, we do this by learning how to identify supply and demand levels on a chart. We look for the picture that represents a major supply and demand imbalance and then take action at those levels. Some people will want to also include some indicators, Fibonacci levels, maybe the latest oscillator, wrong again… You need to have a razor sharp focus on where the major buy and sell orders are, nothing else matters.

Now that I have repeated myself a few times, hopefully you get the point and I will not waste your time with more repetition. Online Trading Academy’s core strategy teaches you nothing else matters when you know where institutions are buying and selling in a market and that’s the focus of Supply and Demand. To learn more about out core strategy,  join us for a free class at a location near you.

Hope this was helpful, have a great day.

Sam Seiden – sseiden@tradingacademy.com

Disclaimer
This newsletter is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results. Reprints allowed for private reading only, for all else, please obtain permission.