Monthly Archives: May 2011

Using MindMaps to Organise Your Trading Education

The following email (below) was shared by Stuart, a YTC Newsletter reader, in response to last weeks article, "The Second Greatest Trading Book in the World".

MindMaps are an exceptional tool for structuring your learning environment. I only wish I could have been so organised back when I went through my initial learning phase. Instead of a nice neat mindmap, I have a bookshelf full of disorganised notebooks and folders full of printouts.

Have a read of Stuart’s email, and considering using a MindMap to direct your own trader development. A screenshot of his MindMap is included. There are numerous commercial products available. Before considering them though, you may wish to experiment with an open-source version (FreeMind). I find it quite an effective tool, although lacking in some of the extra features of commercial equivalents. It’ll provide a good start though if you’re new to MindMaps.

Here’s the email (excerpt):

Lance,

In my current profession I have used mind mapping with great effect. I have no affiliation to any of the Microsoft products but my real world experience finds them really helpful.

I have used this for my entry into trading and Forex, which has proved invaluable as the sheer quantity of information and wandering threads can overwhelm you. What I find is it enables me to sift the junk, keep the good stuff and develop things into what my persona is going to be as a trader. As you rightfully say, strategy and plan are key and I believe these are created to suit ones own image and personality which refreshingly this new topic is making me soul search and think hard about me.

It is very helpful as it can grow, be edited and all the things (hyperlinks to either web or file content) move as well. I am not saying it is a panacea but it certainly helps on any journey that is started that will develop and all the paths are not known.

I also find it helpful to print it out and have it on the wall next to my desk and get the red pen out as things happen, keeps it fresh.

Attached for example is mine, a novice and which contains some great stuff and also some really bad stuff but it is reflective of my foray so far. I use categories and filters so I can evolve the stuff that has merit and archive the rest.

It has some nice features of linking, capturing notes and pictures and being exportable to other office products to form presentations, word documents with table of contents and also PowerPoint.

Just throwing it into the ring, please ignore if it is too much.

Kind regards,

Stuart

Here’s the image:

(click on the image to open a larger readable version in your web browser)


The 12 Elements of Trading Success

This video was one of the very first that I produced for this site, back in early 2008.

It used to be offered as a subscription bonus…. but I’ve decided now (May 2011) to remove it from there and make it available to everyone via this website page.

The video production is incredibly amateur, but the information is as relevant today as it was when first produced. I hope you get something of value out of the video.

Please note:

(1) This video is large – just over 37 Mb. Although it is a streaming video, 20% will need to load before it starts playing.

So please be patient while the “loading” screen shows. It will get there. And if you’re on dialup, may I suggest you go and get your favorite beverage and sit back & relax while waiting for it to load.

(2) The reference towards the end of the video to email Q&A is no longer relevant. See here for my current Email Q&A Policy.

CLICK THE IMAGE TO GO TO THE VIDEO PAGE:

(If the video image is not showing, then go here to see the video page.)

Lance Beggs

 

There is a Lesson in EVERY Trading Session – Part 2

Feedback from last weeks article has been superb. So I thought I’d give some more examples here this week.

And I’ll use this idea as the initial concept behind a daily blog – commencing later today. 🙂

For these examples, we’ll look to a different market. This time the HSI (Hang Seng Index Futures) which I’ve been trading the last few days in an attempt to repay some of my sleep-debt (an Aussie east-coast lifestyle is not conducive to long-term trading of the US markets).

As mentioned last week though… the markets, timeframes, and chart overlays used in these examples are irrelevant. What’s important is the idea of finding a trading lesson in every trading session. And that applies in all markets and all timeframes.

 

Monday, May 9th, 2011

A beautiful spring pattern leading into continuation of an uptrend:

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There is a Lesson in EVERY Trading Session

There is not much that needs to be written on this topic. The title really says it all. There is a lesson in EVERY trading session. Your job, in maximizing your rate of development as a trader, is to find that lesson.

Actually, there is more than one lesson in every session, but if you can get in the habit of finding at least one, every session, you’ll help with your growth and development in a massive way.

It might be trade related (either an example of a particularly well managed trade, or one that was poorly executed or managed). Or it might be simply a price action or market structure observation that is particularly cool. Whatever you find… and keep searching till you find at least one thing… study it.

Let’s look at some examples from the last few days.

Please note: The timeframes, chart templates and strategy used in these examples will likely differ from that used by many readers. Largely this is irrelevant. The lesson review concept applies to whatever markets, chart templates and timeframes you wish to use. YTC Price Action Trader and YTC Scalper readers will obviously understand my decision making… everyone else will hopefully get something from the concept.

 

Monday, May 2nd, 2011

A particularly well managed trade demonstrating (a) entry on a slower momentum retest of solid resistance, at the point showing signs of potential stall below resistance; and (b) reduction of risk through partial profit taking, when movement stalled after entry (note: in this case history shows better results through holding till targets, but we don’t trade off historical charts; we manage risk in real-time).

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