This may be one of the most valuable pieces of information I’ve ever sent you.

Last week we discussed forensic analysis.

And as promised, today we’ll look at some applications of volume price analysis.

More specifically:

We’ll look at 5 concrete examples of what volume price analysis (aka forensic analysis) allows you to see in charts.

Ok, let’s jump right into it:

So as you can see in this example, Bar A is noticeably wider than the other “normal volume” bars.

This means you should expect greater than average volume.

The relationship of the close on Bar A is an indication of whether it is buying or selling.

In this example the close is in the bottom 1/3 of the range indicating selling pressure, which is also reflected in the red bar.

If you have a wide price bar with low volume, that tells you something completely different.

In this case you should still expect a greater than average volume…

Yet, even though Bar A appears to have more volume than previous bars…

…for the price range of that bar, it should have had substantially more volume.

So this low volume bar is indicating a trend pause.

This is confirmed with the close being at the midpoint of the range.

With Narrow price bar you should expect low volume.

If you have a narrow price bar with low volume, this is telling you there’s no pressure to buy or to sell.

Bar A shows a narrow range and low volume – indicating a pause.

Even though the close is less than the open, it shows that there was no demand for selling.

You should expect for the next price bar to give you a confirmation of whether price is going to break out or break down.

This is the same price bar as the example above, but the volume is much greater for such a narrow price bar.

Even at the top of the trend, Bar A shows that there is above average volume for that range, which indicates buying pressure.

If it was selling, the range would have been far greater as the bid and offer would have expanded.

Even though the close is less than the open, it is showing that this share was not being sold, in fact it is a sign of strength.

There was a failure to sell, which validates the buys.

This is a narrow price bar in a downtrend.

It’s an indication of buying pressure.

Bar A shows there is above average volume for the range indicating buying.

Even though the close was less than the open, it indicates accumulation, for if it was selling the range would have been far greater.

Those are just some of the applications volume price analysis can have.

Inside Hawkeye we teach you how to make the most out of it — and we give you the tools to make it an easy process.

Plus, you can ask me anytime you have a question!

>>> Click here to learn more about it.

As technical traders, analysis is a major part of what we do.

But there’s a lot of data to go through, and it can get confusing.

Today I want to share with you how to make the analysis process easier…

By focusing on what I call Forensic Analysis.

In the 1930s, stock market wizard Richard Wyckoff used volume to develop a predictive indicator he called Volume Spread Analysis (VSA).

That’s what he used in his trading, and he was very successful with it.

Well, Hawkeye takes VSA and compares it to price, average true range (ATR), standard deviation of price, and other key information to create our own unique spin on Volume Spread Analysis…

Something that we call Volume Price Analysis, or VPA.

The end result is an insanely accurate prediction of market direction and sentiment.

Standard Volume is the total number of shares bought and sold during a specific time or tick interval.

It takes no account of the open and close.

It just accumulates and shows you how much volume was transacted during a certain period of time.

VPA takes that volume bar and looks at the open, the high, the low and the close to determine the distribution.

This distribution is studied and analyzed to determine whether the volume bar is red or green.

In other words, we can tell if there’s buying pressure (green) or selling pressure (red) coming in.

Hawkeye performs over 300 calculations per bar in order to determine whether the volume is buying or selling pressure.

Using Volume Price Analysis is the most sophisticated way of trading there is.

It’s a step beyond technical analysis…

And it’s what we call Forensic Analysis because it helps you do so many things, including:

• Understanding the structure of the market you’re trading in a better way
• Seeing trades more clearly
• Keeping more of your profits
• Helping you protect your positions

If that sounds like it would be useful to you…

>>> Click here to incorporate forensic analysis into your trading.

P.S. Next time we’ll cover the actual application of volume spread analysis and how you can use it to win more trades…

So stay tuned!

Between 70% and 80% of traders are failing.

And the fact of the matter is they are using traditional trading strategies and indicators like:

• MACD
• Stochastic
• Bollinger bands
• Elliott Wave

I’m not saying any of these are “bad” or “wrong.”

I’m just saying that if 70- 80% of traders are failing AND they are using the above indicators, there must be a correlation there.

The good news is there’s another way, and it’s… you guessed it — volume.

In today’s newsletter I want to break down for you WHY volume trading is so effective.

But first, let me give you some quick context on volume trading, and then I’ll share with you multiple reasons why volume is so powerful.

In the 1930s, there were three great traders:

• W.D. Gann – An eccentric man who used methods based on ancient mathematics, geometry, and astrology.
• Ralph Nelson Elliott – His method was based on wave count. Although a great tool in hindsight, where do you start the wave count in the live market?
• Richard Wycoff – Developed a method based on analyzing volume with price movement.

And it’s Richard Wycoff’s teachings that we followed here at Hawkeye.

In fact, in developing Hawkeye, Nigel (our founding father) flew to meet the Wycoff family.

From there he was able to get his hands on Wycoff’s original notes, which he used when developing the Hawkeye algorithm way back in 1996.

Now, you may be wondering: what makes volume so special?

Well, check this out…

Here are 6 things volume helps you do that no other indicator does:

• Volume confirms the strength of a trend or suggests its weakness.
• Rising volume indicates rising interest.
• Falling volume suggests a decline in interest, or a statement of no interest.
• Extreme volume readings, i.e. climax volume, often highlights price reversals.
• Points where the market trades on high volume are the points of strong support and resistance.
• Breakouts and market spikes can be validated or ignored with the help of volume.

Volume really is the key to seeing all these things and helping you as a trader to assess the current value of price in order to know what to do with it.

If you know about trading, you know how powerful all the above points are.

Volume is the only leading indicator that signals price movement before it happens as well as market intent.

All other indicators by comparison are lagging, therefore they fall short of Hawkeye standards.

That’s why trading based on volume is so important.

… And why volume is the cornerstone of Hawkeye.

Funny thing is, that’s just the beginning of what volume can help you achieve when trading!

>>> Click here to unlock the full potential of volume trading.

Some of the biggest obstacles traders face are:

1. Finding the right entries
2. Finding the best exits (stops and profit targets)
3. Understanding why a trade is not working
4. Identifying support
5. Identifying resistance

Hawkeye Zones help traders overcome each of these obstacles in some key ways…

Zones allow you to:

1. Clearly see where to enter
2. See clear exit points (stops and profit targets)
3. Know why the trade is stalled or reversing
4. Know where support is located
5. Know where resistance is located

The nice thing about the Zones is that they are color-coded supply and demand zones that automatically refresh and change as price interacts with them.

So, not only do you get to see things as support or resistance…

But you also get to see where to enter, where to exit, and even where to take profits all along the way.

It’s a way of looking at your charts that allows you to trade with more certainty and confidence.

But how do Hawkeye Zones work?

Zones keep track of key market volume and price action as price moves throughout time.

Basically it’s a data mining algorithm, which gives us an edge on the right side of the market to find support and resistance areas.

Inside the charts, these colors help us remember how many times price has tested and failed to break through at support or resistance.

Zones typically identify regions of significant volume activity.

Historically, these areas are where we see buyers and sellers step into the market.

In the present, we can use these fresh zones to establish support and resistance.

In the future, we can define where price is expected to go as supply and demand shift.

But that’s not all…

Time also plays a big role in Hawkeye Zones.

Any time that the market is open we need to keep track of the creation and destruction of price zone areas.

Zone levels can last for YEARS!

These levels can also switch between support and resistance:

Support & Resistance + Time = Supply & Demand

These are some of the things we are looking for in the zones to find where supply and demand are for a certain ticker:

• How long a zone has lasted on your chart
• Time of day when price interacts with the zone
• Higher time frame confluence

If you are a serious trader, you know this information is gold!

It’s one of my few “secrets” to success, because when you are able to put these zones to use, the game becomes easier.

>>> Click here to learn more of these game-changing “secrets” to success!

The majority of traders fail.

If you’re trying to make it as a trader, your number-one goal is to defy the odds and avoid an account blow up.

Too many traders are enamored by the potential for profit and fail to protect their downside.

Anytime you are more focused on potential profit over potential risk, you are going down the wrong path.

If that’s you, it’s my duty to put you on the right track.

So today I’ll share with you the strategy I recommend to Hawkeye members to manage the growth of their account.

There are three simple guidelines to follow when using this strategy.

You can tweak them and play around with them as you evolve as a trader, but if you’re starting out, stick to them for now.

Here they are:

• You should have a maximum of 3 trades open at any given time. You don’t want to spread yourself too thin or have too much money in the market.
• If you want to open a new position, you must close the weakest existing trade, meaning the one you’re profiting from the least.
• Finally, you should never risk more than 10% equity on any one trade.

Pretty easy, right?

Now let’s take a look at a basic plan to follow in order to manage your capital while growing your account:

Say that you have $18,000 in your account. For some of you that can be a lot, for others just a drop in a bucket…

Nevertheless, you should divide your capital into two boxes.

Half of it into a cash box, which will act as a rainy day fund.

And the other half into your trade box, this is the money you’ll use to open positions.

Equally divide your trade box into the three allowable trades that you can take…

… in this example, $3,000 each, no more.

Then 50% of any profits that you make will go back into your trade box, and the remaining 50% of the profits will go into your cash box.

And then you start the process over again.

That way you’ll always have money to trade and a rainy day fund for emergencies.

It’s a simple yet powerful strategy for managing the growth of your trading account, steadily and safely.

Especially when it’s combined with Hawkeye.

>>> Click here to find how Hawkeye can accelerate the process of growing your account.

This is something I’ve never talked about before…

Because it’s powerful information we typically reserve for Hawkeye members.

But today I’ll share it with you because I know it will help you in your trading.

The opening price principle is paramount to the Hawkeye philosophy.

Here’s how it works… and how it can help you predict how price will move during the day…

Consider a hypothetical auction where you’ve got a piece of fine art that’s going for $100K.

The auctioneer stands up and says, “Do I hear $100,000?”

*Crickets…*

Why?

Because there’s no demand!

The silence means that no one wants that piece at $100K.

The price has to come down before anyone will be interested.

So the auctioneer tries again at $90K…

Then $80K…

Finally, someone raises their hand at $70K and the bidding begins.

Price will probably fluctuate between $70K and $80K and close around $85K in the end.

That initial price set the basis for the session and affected the final outcome.

On the flip side, if the price starts at $100, people instantly raise their hands and generate a huge demand for that piece.

So with only one item and all those people wanting to buy it… the price will start soaring.

But again, the initial price set the basis for the session.

Well guess what?

The same happens in the stock market.

The opening price of a market will generally give a hint of where the market is trying to go.

Look at the example below:

In this case, the opening price was heavy to the downside and red.

What it’s doing is setting the basis…

Similar to the auction example where the price started at $100K, no buyers were interested in this ticker at the opening price, so sellers stepped in.

The price came down until it started to attract buyers…

Buyers started to go in (note the first green candle in the chart), and price started to go back up again.

But note how once the price started to get close to the opening price, it failed to go any higher and dropped once again.

Then it broke support and started to drop again throughout the day.

This example proves that the opening price was showing us that this market wants to go down for the day.

The opening price principle is very meaningful and helps you understand the intent or the sentiment of the current market.

And when this principle is combined with the Hawkeye suite of indicators, it’s a powerful combo that can help you predict how price will move during the day.

I hope you found this valuable and that you start using the Opening Price Principle in your analysis.

But if you’d like to learn more about how this principle works in conjunction with the Hawkeye tools and methodology, click here for an on-demand training session!

We’ve all heard that trading is 20% technical and 80% psychological.

Want to know why?

It’s because our emotions short-circuit our logical brains.

This “emotional sabotage” is the main reason why most traders never make it.

… And it’s also why seasoned traders struggle to reach higher monetary gains.

There are a few emotions that can short-circuit our logical brain, such as:

But why does emotional sabotage happen in the first place?

Why do those emotions come up and overtake our rational brains?

Well, there are a few possible triggers for these emotions:

Those triggers can give rise to negative emotions that can lead to:

And all of these usually share one common result: losses.

Successful traders do things differently…

They:

So how do you increase your odds of being a successful trader?

You need to change some of your thought processes…

Having a minus day does not make you a bad trader
You cannot “will” the market to do what you want
You cannot “predict” where the market is going — because the market will go where it wants, when it wants, how it wants

Something else about being a successful trader that we’ve all learned the hard way is that we do not have to work 12 hours.

In other words: Trade smarter, not harder.

Finally, in case you are struggling with emotions and trading… I want to leave you with some important questions to ask yourself.

These will help you catch yourself when your emotions are interfering with your logical analysis of a trading scenario:

I suggest tracking these questions in a trading journal and trying to spot negative patterns that are harmful to your trading.

You just may uncover a lot of the bad habits and thought processes that are diluting your trading gains.

If you want more information like this, I personally do a weekly call with Hawkeye members where we review the markets and important lessons (like this one) to help you grow as a trader and make more money.

>>> Click Here To Get 3 More “No BS” Lessons Like This One…

Here at Hawkeye, we’re serious about reaching our trading and financial goals.

I’m sure you are as well…

And I know you’re willing to use every tool at your disposal to do so.

Our philosophy has always been to treat trading as a business, not a “side hustle” or a hobby.

… Which means we need a business plan.

After all, a goal without a plan is just a wish.

A business plan is a powerful tool you can use to bring more predictability, organization, and ease to your trading.

It will help you achieve potentially bigger gains and safeguard your money by sticking to some pre-formed guidelines.

Before we dive in, you need to know that in order for a business plan to be as effective as possible, it needs to be written down.

Here are the 12 steps to follow:

1. Mission:

   What is the reason you got into trading? What’s the end goal beyond money?

   Making money for its own sake is not a strong enough reason to keep you in the game when the going gets tough… for you to push your boundaries and not quit.

   You need a mission… a purpose… a reason strong enough to keep you moving forward whatever happens.

   In my case, my mission is to be a source of good, for my family and the world.

2. Vision:

   Write down the vision you have for your future.

   If you keep your view on that vision and the things you want to achieve, you’ll stay motivated more easily and push through any hardships.

   Here are a few things to think about:

   • How do you envision your life in 1 year, 5 years, and 10 years from now?
   • How do you want your life to be when you succeed?
   • Where will you live?
   • How will your typical day play out?
3. Goals:

   In order for you to hit your goals…

   You actually need to have goals. Breakthrough discovery, I know…

   You need to know:

   • The average expected profit per trade
   • How many trades you want to make on a daily or weekly basis
   • How much of your profits you want to put into a savings account

   Write down your goals, and start moving toward them.

   This business plan will help you tremendously in doing that.

4. Beliefs:

   There are six market types (bull volatile, bull quiet, sideways volatile, sideways quiet, bear volatile, bear quiet).

   Study them, and pick which ones you are going to profit from, and how.

   By the way, with Hawkeye we can identify those market types rather easily…

5. Big Picture:

   Take note of the current state of the market.

   The environment of the markets and the financial sector will have a big impact on your trading, so don’t make the mistake of not taking it into account.

   What type of market is it? Where are the best opportunities for profit? What strategies are working?

6. Tactical Trading Strategies:

   There are different strategies for each of the six types of markets.

   Decide on:

   • What setups you’ll trade
   • Under what circumstances you’ll open positions
   • How you’ll manage your risk-reward for each type of market, and for every type of trade (position trades, day trades, etc)
7. Position Sizing:

   How much of your portfolio will you risk on any given trade?

   You can use position sizing to help you determine how many units of a security you can purchase, which helps you control risk and maximize potential returns.

8. Dealing with Personal Challenges:

   Our unique personalities have a big impact on the way we trade.

   So try to work your strategy around your personal habits and preferences. Ask yourself:

   • What times do you like to trade?
   • What things you can do to perform at a higher level?
   • What emotions should you be wary of?
   • What habits could have a negative impact on your trading?

   All those things can become obstacles to your success if you don’t plan around them.

9. Daily Procedures:

   Daily procedures are a micro version of the business plan.

   They are the little stepping stones you’ll follow to your goals.

   You should break down your day into the different tasks you need to accomplish.

   Thinks like:

   • What time you wake up
   • What you do first in the morning
   • When you read financial news
   • When you browse the markets
   • What time you start unwinding at the end of the day
   • Any appointments you have

   You get the idea.

10. Education Plan:

    You need an education plan to learn the skills and strategies necessary to achieve your goals.

    If you’re not learning, you’re not growing, so your chances of reaching your trading goals will be lower unless you carve out time for education.

11. Worst-Case Contingency Plan:

    When you fail to plan, you plan to fail.

    It’s easy to blame something external for a failure.

    But if we are not actively thinking about worst case scenarios and preparing for them… whatever happens is solely our responsibility.

    So make a list of negative things that could happen and plan how you’re going to respond.

    For example:

    • What will you do if a power or internet failure happens in the middle of a trade?
    • Do you have the necessary preparations for a family crisis?
    • What if there is a flash crash?
12. Systems other than Trading:

    Trading is the central piece of your business, but there are other aspects of a business you’ll need to take care of.

    Taxes and having a solid financial model are the two of the most important ones.

Following these steps and creating a business plan can help make trading an easier and more predictable quest.

It can also help you find more consistency in your results and avoid dangerous situations.

But you need to make sure to write it down and stick to it religiously.

If you have any questions, do not hesitate to reach out.

>>> You can click here to discover the Hawkeye model and how our users have turned trading into a more predictable business.

Would you like to elevate your trading to new heights?

Would you like to avoid making emotional trading decisions?

Would you like to preserve your capital so you can make the most out of it?

If so, then grab a pencil and some paper…

Because today I’m sharing a simple yet profound way you can take a huge step forward in your trading…

By developing a trading plan!

Now a trading plan is a written set of rules that defines how and when you will place trades.

But it’s much more than that.

It is also a business plan, a rule book and a financial planner all rolled into one.

Having a documented trading plan that you adhere to religiously for each and every trade is one of the cornerstones of success.

And in my opinion, a trading plan is one of the biggest single factors that separates successful traders from not-so-successful ones.

A trading plan is:

• Personal — tailor made to fit the individual trader.
• A “living document” that will change and evolve over time (AFTER the market has closed for the day, but it’s rock-solid and unchanging while trading)
• A map
• Not a guarantee of success, although it greatly increases the chance of success.

What does a trading plan include?

• Trading goals/objectives
  • Will you trade for a living or to supplement your income?
  • What instruments will you trade?
  • What time frames will you trade?
  • How much will your initial investment be?

• Daily routine
  • Time allotted for research
  • Time allotted for continuing education
  • Sufficient rest for an alert mind
  • An environment free of distractions
  • Times of day to trade and to sit out of the market

• Multiple strategies for multiple markets and market conditions
  • Entry rules: Under what circumstances will you enter a trade?
  • Risk rules: How much will you commit to the trade?
  • Exit rules: Under what circumstances will you close the trade?

• Who are you? In order to personalize your plan you must know who you are, what you have, and what you need.

  Ask yourself the following:

  • How much time can I commit to trading?
  • What skills do I currently have?
  • What skills/knowledge do I lack?
  • How much risk can I tolerate?
  • How will trading affect my relationships?
  • Do I have the necessary tools?
  • What are my personality traits?

Now that you know the elements that go into your trading plan, I want to share with you 3 keys to a winning trading plan.

Key#1: Having your trading plan in writing.

When your trading plan is written out it acts as a blueprint or a roadmap you can follow to your trading goals.

If it’s not in writing, it’s subject to fear, greed, and emotional decisions.

Why have a written plan?

Consider a mountain climber. Would he begin his assent without:

• Physical training?
• A map?
• Researching the weather, the terrain and the wildlife?
• Having an idea where to stop and rest?
• Enough funds to see him through the journey?
• A camera or journal?

It’s obvious that a mountain climber who fails to carefully plan his expedition will likely encounter disaster.

The same applies to traders dealing in volatile markets. A carefully prepared plan will keep the trader on course and help him avoid the hidden precipices.

Key #2: Back and forward test your plan.

There are two ways you can test your plan.

• Backtesting: Using your plan on historical data to see how it would have performed historically. Many platforms support automated backtesting.
• Forward testing: Also known as paper trading, this allows you to test your plan on the live edge of the market. A simulated trading account is ideal for this.

Key# 3: Trade your plan!

Even the best trade plan will fail if you do not adhere to it in a live market.

But remember that live trading has issues with fills and slippage.

Trades that were good in testing might not have actually filled in a live market due to low volume or limited transactions at that price.

Always account for slippage in your trades. It makes your results much more realistic.

A final piece of advice… don’t forget to keep detailed records!

If you win a trade, you need to know exactly why and how.

More importantly, you need to know the same when you lose, so you don’t repeat unnecessary mistakes.

Write down details such as targets, the entry and exit of each trade, the time, support and resistance levels, daily opening range, market open and close for the day, and record comments about why you made the trade as well as the lessons learned.

Documenting the process helps you learn what works and what doesn’t.

I hope this provides as much value for you as it has for me. Having a written out trade plan is what has enabled me to achieve the success I have.

Hawkeye users are in a fortunate position of having indicators that come with suggested rules for usage that can also be incorporated into personal trading strategies.

Want to simplify the process of creating an effective trading plan?

>>> Click here to find out the core of a Hawkeye trading plan.

Have you ever wondered what successful traders talk about when they get together?

What sneaky trading secrets we share with each other?

What advice we offer one another when the going gets tough?

Well today, you get to be a fly on the wall and discover the hottest topics highly successful traders discuss when they’re talking shop…

There’s a couple more that we could talk about, but these are definitely the most important.

If you master these 4 premises and learn the technical side of trading…

You’ll be well on your way to becoming a successful trader.

If you want to learn the technical side…

>>> Click here to watch a free training on how to do so.

Everybody talks about the best moment to enter a trade.

Which made me realize…

…not a lot of people talk about when NOT to enter a trade.

There are 4 core reasons why beginners enter trades that are bound to be losers.

And more importantly, they’re all tied to one single factor.

1. FOMO (fear of missing out):

   FOMO trades happen when you are afraid of missing the move.

   You may feel like you are faced with an opportunity that will not present itself again, and, of course, you don’t want to miss out.

   Usually these opportunities are highly volatile…

   Which forces you to make a quick decision — often, a wrong decision.

   If you’re asking yourself: do I enter or leave it alone?

   Know this:

   Entering a trade just because you’re afraid of missing out is not a great idea, so let it go.

2. Hype:

   If you hear about a certain stock or trading opportunity during a family dinner or while having a chat with a friend…

   …that stock is hyped!

   You’ll know when there’s hype around a stock the moment someone who doesn’t trade for a living starts spouting emotionally fueled statements such as:

   “You can become rich by just buying this one stock!!”

   Not only that, most times people are just repeating something they heard from someone else or from the news, which means it’s too late to get in (even if there’s actually solid reasons behind the move).

3. Hope:

   You’ve heard wonders about this one stock that’s going to be a “revolutionary technology” in 5 years, so if you buy now, you’ll be rich by then.

   These are harder to fight.

   You’ve seen how companies like Amazon, Apple, and many others have gone from a few dollars to hundreds.

   And there will be others that do the same.

   But trying to catch the one that does, at the exact right time… is unlikely to say the least.

   Plus, have in mind that in order to cash out big you’ll need to invest a lot of money and wait a lot of years, and it may not even happen!

   Quite some risk if you ask me…

4. Vengeance:

   Possibly the one that we traders have to tango with more often than the others…

   And in my opinion, the hardest one to tame.

   When you lose money on a trade it always feels awful.

   It’s easy to get riled up and try to win your money back as quickly as possible as a way to take revenge on the market.

   But this makes you no different from a gambler at a casino.

   There will be plenty more opportunities ahead, so take your lesson and look on to the next one.

So… do you know the one thing all these have in common?

They all stem from emotion…

And trading emotionally always leads to disaster!

That’s why effective trading is based on logic.

When you just react to a trade without any plan or process in mind, your trade will be overtaken by emotions.

Now there are 6 distinct components a solid trading game plan requires.
Here they are:

If you are missing any of these components on any or all of your trades, it’s going to be tough to succeed in the long run.

I personally teach how to master each of these components and how to trade based on logic inside Hawkeye Traders.

If that’s something you’re interested in…

>>> You can click here to learn more.

The other day I heard a popular expression on TV that got me thinking.

I’m sure you’ve heard it a thousand times…

Here it is:

“We’ll cross that bridge when we get to it.”

It’s funny how it relates to trading.

This is a mistake I actually used to make A LOT during my early trading career.

You see, I had a bit of a problem with timing my exits…

More times than I’d like to admit, I’d hold my winners in the hopes that price would keep going up so I’d make more money.

But I’d hold them so long that they would turn into losers.

So when it comes to trading, “crossing the bridge when you get to it” is not the best strategy.

Rather, you want to try and “cross the bridge BEFORE you get to it.”

What does that mean?

Secure your wins along the way!

It’s ok to hold it a bit longer and see how price develops (if Hawkeye indicators tell you it is likely to keep climbing).

But make sure to sell into strength so you mitigate your risk!

Of course, talking about gains reminds me of another expression that can be related to trading…

Now this is a funny one!

“No pain, no gain.”

I mean, who the hell wants to go through pain to get gains?

Who wants to go through pain at all?

When it comes to trading, pain equals losing money.

And yes, it is very painful!

So pain basically means you’re doing something wrong.

Because if you want monetary gains… losing money is not the way!

It just doesn’t make sense, right?

So this is how I would approach it…

“No pain, more gain!”

Pretty self explanatory, right?

If you’re not making the “gains” you desire, there’s a “pain” in the way.

Maybe it’s this next and last popular expression…

“When they zig, you zag.”

Let me explain why that’s wrong when it comes to learning how to trade.

One mistake I see beginner traders make over and over is going to the market by themselves to try and catch the bottom of a stock that’s tanking – or the ceiling of one that’s spiking.

When you’re at the beginning of the journey, you should take it easy and get accustomed to the market.

If you go “all in” trying to win big from the jump, you’ll burn your account to the ground before you could say “zig-zag.”

You should try to go with the trend and catch the meat of the move.

It’s a lot safer and can yield lucrative results.

Also on this point…

Even though you should have your own personal trading plan, I wouldn’t recommend starting your trading journey by implementing your own “zag.”

Instead, find a mentor that’s already crushing it.

One that you can replicate and trade alongside with.

So when they zig and make money, you also zig (and make money).

This way you’ll win trades while you learn how your mentor picks trades, how he executes them, and how you can do it, too.

Then once you really know what you’re doing and feel confident enough, you can start executing your own trade ideas.

Want to know how I zig?

>>> Click here to zig with me!

It finally happened…

After a few intense weeks, the GameStop frenzy seems to be winding down.

To be honest, it feels like this situation has set a new order in the markets.

Things can change quickly nowadays…

But right now, the best thing we can do is learn from what happened and prepare for what’s next.

1. Know who you’re trading alongside.

   This is something most traders have probably never given much consideration.

   But it’s definitely a factor to consider these days.

   Knowing who is trading the same ticker you are matters.

   Why?

   Because a passionate group of traders can have an impact on price… just like the WallStreetBets boys did on GME.

   Which brings us to number 2…

2. Choose your broker wisely.

   Many traders learned this lesson the hard way with Robinhood.

   Choosing the right broker is now more important than ever.

   So what kind of broker should you pick?

   I’d recommend one that caters to active traders.

   These offer more control, access to better short inventory, better platforms, and a host of other benefits that can make or break traders during periods of market volatility.

   Speaking of volatility…

3. Expect the unexpected.

   I think the real lesson from this situation is:

   Anything can happen, so keep your eyes and ears wide open!

   There are forces clashing behind the scenes every day that we don’t know about.

   New regulations can be passed at any moment changing the way the game is played.

   So stay alert and be wary of where you put your money.

4. Never underestimate a move.

   Cold reality spoiler:

   The market doesn’t care what you think.

   A stock is never up or down “too much.”

   Remember that the market is not completely “rational” and that price moves don’t always align with fundamental analysis.

   Don’t fight the trend — instead, make sure you’re on the right side of it.

5. Cut losses quickly.

   This lesson is sponsored by the billion-dollar Wall Street hedge funds.

   Cutting losses quickly is one of the most fundamental lessons traders learn early on.

   Never risk so much that it can put you out of the game if you lose.

   In the same way, you should strive to…

6. Lock in gains along the way.

   Buying and holding is not a strategy that works on volatile momentum stocks.

   That’s something that many Reddit traders didn’t think about (or just didn’t know).

   The reality is most of them could have sold their shares and made huge gains while the price was upward of $400.

   But they decided to hold in order to keep raising the price.

   Clearly, they didn’t consider number 7 on our list…

7. What goes up must go down.

   Parabolic moves are subject to the laws of gravity – what goes up must come down.

   Huge moves (especially those with no fundamental basis, a la GameStop) are unsustainable.

   Hype inevitably dies down and the market moves on to the next big thing. We see this in every market.

   So remember to cash in along the way!

Hopefully, these quick tips can help you survive and thrive in whatever market conditions are coming our way.

Very rarely do we get so many lessons from just one trade.

But GameStop was a true phenomenon that will be talked about and studied for years.

I don’t know when something similar will happen again…

But I do know where you can find more lessons to improve your trading skills.

>>> It’s right here!

If you click the link above you’ll go to a free masterclass where I teach you how I became a full-time trader…

Including the exact tools and methodology I use…

And how you can double your account in 36 days trading low-risk setups.

Here’s the link again…

Check out the free training, and have a great weekend!