jake bernstein introduction trading model and patterns australia february 2008 © 2008 by jake...
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Jake Bernstein
Introduction Trading Model And Patterns
AUSTRALIAFebruary 2008
© 2008 by Jake Bernstein
The Trading Model S-T-F
Unless you have a trading model you are doomed to failure A trading model provides structure My Model: SETUP-TRIGGER-FOLLOW THROUGH Set up: A high probability pattern (examples) Trigger: Increases the odds of a set-up NO SETUP – NO TRIGGER = NO TRADE You MUST have a reason for EVERY TRADE Follow-through: Risk management/Profit Maximizing Consider the fate of the typical trader
© 2007 by Jake Bernstein
What happens to the typical trader? Consecutive losses Changing the system What most traders can handle 90% of your money on 10% of your trades Small profits and large losses Lack of confidence and lack of discipline Disorganization Too much information Too many opinions Danger of chatrooms
Types of Set-ups
Price patterns – support/ resistance / trend Time patterns - cycles Price relationships – open / high / low/ close Monthly seasonals Weekly seasonals Daily seasonals Key date seasonals Spread seasonals EXAMPLES Set-ups, triggers and follow through Unless you can maximize profits you won’t win
Psychology, Discipline and Confidence
The weakest link in the chain What cases lack of discipline? Why do traders lose with profitable systems? Why do traders make money with losing systems? How confidence creates discipline What creates confidence? How to help create confidence What if it doesn’t work? Finding a professional for help Should you be trading?
Making the commitment
Take the challenge
Don’t paper trade
Why you should use real money
How to do it
© 2007 by Jake Bernstein
Would You like a Broker Who Knows Jake’s Order Styles?
Check Out Boutique Broker I-Deal and ask for your Special Jake Bernstein Student Offer – http://i-deal.com.au
31 days 26 c>o = 83%
20/27 c<o = 74%
Jake Bernstein
Why Traders Lose How Traders Win
AUSTRALIAFebruary 2008
© 2008 by Jake Bernstein
Goals and Why Me To review and explain winning trader behaviors To review and explain how traders win Based on my near 40 years of trading experience Based on my personal mentoring of hundreds of traders Based on my more than 650 seminars all over the world Based on my thousands of trades Based on my education in clinical psychology Based on my own mistakes Based on my own successes Not the “same old stuff” My 1982 book “The Investors Quotient” by Wiley – still a classic
best seller What we will learn today
© 2007 by Jake Bernstein
Jake Bernstein’s Trading Rules
If you can’t test it don’t trade itIf you have to think too long you’re about to loseDon’t analyze – actualizeToo many inputs= too little realityThe smaller the stop loss the worse the resultsFind your time frame and trade within that time frameGet organized or get outDiversify or loseThe big money is made in the big time frameDon’t average in but scale out
© 2007 by Jake Bernstein
Common thinking gets common resultsCommon results means that you WILL lose moneyThe small trader isn’t always wrong The large trader isn’t always rightBy the time you hear the news its old newsLook at enough indicators and you’ll find what you wantMost indicators have never worked and never willNormal market behavior teaches us nothingUnusual market behavior brings unusual opportunitiesHigh accuracy does not always lead to profitsA few good trades will make all the differenceSetup - Trigger and Follow through will make the big difference in your results
© 2007 by Jake Bernstein http://www.trade-futures.com
Time is more important than priceRisk is more important than rewardWhat you do with profits is more important than how you take your lossesIf you can’t take at least six consecutive losses then don’t even think about tradingTraditional moving averages get traditional resultsNever trust the markets to do what you think they should do - trust only yourself to do what you have to doDiversify across markets, systems and time framesAvoid on line market chat rooms - they’re poison!If it seems logical then it’s probably wrongLeave your losing personal habits at homeBigger and faster computers do not necessarily lead to better results
© 2007 by Jake Bernstein http://www.trade-futures.com
Sample Track Record – Optimized MOM/MA
© 2007 by Jake Bernstein http://www.trade-futures.com
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Equity Curve
Running Total of Equity Equity MA
Max Drawdown: -$34,370.00 on 12/01/2006 Longest Flat: 408 days ending 09/01/1983
MOM/MA optimized11 market portfolio“Whizzard” system
Study time is not proportional to profitsMore is not necessarily better either in indicators, information or computer powerMany mechanical trading systems perform much better than the individual trader (example)
© 2007 by Jake Bernstein http://www.trade-futures.com
© 2007 by Jake Bernstein http://www.trade-futures.com
Be Careful what you tell yourself…You may start believing itBe careful what others tell youYou may start believing it…
Market myths perpetuate Common myths… Small stop losses will protect you The more you trade the more you make “I need to make $xxxxxx a month” Options are the best way to trade My broker is there to help me…are you sure? A bigger and faster computer will help you make more money Day trading S&P is the best game in town The FOREX market is the best market for profitable trading The myth of the 200 day moving average Follow what the professional traders are doing and you’ll succeed The REVERSAL and KEY REVERSAL are profitable signals Spread trading is virtually risk free
© 2007 by Jake Bernstein
How A Jake Student has gone
Would You like a Broker Who Knows Jake’s Order Styles?
Check Out Boutique Broker I-Deal and ask for your Special Jake Bernstein Student Offer – http://i-deal.com.au
How Jake’s Recent Trades Have Gone From His Broker
From: Matthew Zimberg Optims Trading Group [[email protected]]Sent: Wednesday, 20 February 2008 11:55 AMTo: JakeAtMBHSubject: Last Trades
Hi Jake, You can show the following to your students: Your system has gone long the oil on the 13th of Feb Today the market has jumped around $4. So far we have about 7K per one future contract.
The Coffee, long on the 5th of FebAbout 5k per contract Both trades were taken from Whizzard. Good Job and THANK you for being in our lives. Matt
Adest.com.au
Or call 02 927 4690
Would You Like to Get The Software Jake Uses?
You can and its Called Trade Navigator http://adest.com.au/software/trade-navigator-softwar
e-gold.htm There is a special offer for Jake’s students
Call 02 9527 4690 and ask for it
You can get a Full working 30 day free trial from:
http://www.liontrader.com/free_trading_software.htm
How A Jake Student has gone
How Jake’s Recent Trades Have Gone From His Broker
From: Matthew Z’berg Optis Trading Group Sent: Wednesday, 20 February 2008 11:55 AMTo: JakeAtMBHSubject: Last Trades
Hi Jake, You can show the following to your students: Your system has gone long the oil on the 13th of Feb Today the market has jumped around $4. So far we have about 7K per one future contract.
The Coffee, long on the 5th of FebAbout 5k per contract Both trades were taken from Whizzard. Good Job and THANK you for being in our lives. Matt
Would You like a Broker Who Knows Jake’s Order Styles?
Check Out Boutique Broker I-Deal and ask for your Special Jake Bernstein Student Offer – http://i-deal.com.au
Would You Like to Get The Software Jake Uses?
You can and its Called Trade Navigator http://adest.com.au/software/trade-navigator-softwar
e-gold.htm There is a special offer for Jake’s students
Call 02 9527 4690 and ask for it
You can get a 30 day free trial from:
http://www.liontrader.com/free_trading_software.htm
Adest.com.au
Or call 02 927 4690
Jake Will Be Back in Sydney in June 2008 for 3 Days of Real Time Trading