[Music]
hello and welcome to this week's trading
strategy video with me David Jones and
trading 2 & 2 now we've covered quite a
lot I think in recent weeks we've looked
at price action oscillators moving
averages breakouts false breakouts all
this sort of stuff so I thought this
week would be a good opportunity to
maybe just pause a little bit and look
at what are some pretty common trading
mistakes and when it comes to trading
mistakes you can make a really long list
but I thought for the purposes of this
because it's going to be a short video
and people just don't have the attention
span these days um let's look at the top
three trading mistakes let's start off
number one you will have heard this
before and we're going to look at a real
example from the last couple of weeks in
a second but I think one of the big
problems is people cannot trade with the
trend they see a market and there have
been plenty of markets in recent weeks
the euro oil stock markets they see a
market that's maybe doing that
or doing that and if a markets been
going up up up they can't seem to bring
themselves to buy into that market they
always want to try and pick the top you
know so they're going against the major
move in the market in the same of course
for falling markets of a market its
sliding plenty of people are trying to
pick the bottom but what are the chances
if you have a market that's gone up for
six months or down for six months that
you nail the absolute turning point it's
highly unlikely but let's look at a real
example let's take a look at the euro
dollar which just recently moved out to
two naffy highs there are so many
markets we could pick at the moment when
it comes to looking at trends but let's
go with euro dollar because it hit
two-and-a-half year high last week and
data shows that you know with some
brokers feeling like 70 percent of
clients were selling short the euro but
you're really trading against the odds
so in a trend like this in a strong
uptrend our approach to be looking to
buy the dips you know if you if you're
selling short look at the sort of moves
you're trying to catch their tiny moves
but it's what are the chances that
you're going to pick the absolute top
it's much easier to try and position
yourself for maybe the next swing over
the next few days next few hours and
extra weeks and whatever your time frame
is so trading with the trend really
should be at the core of our approach
but it's one that so many get wrong
because psychologically it's a difficult
thing to do but I think you know even in
a trend like this the market okay has
gone down for one day
but has gone up in a view we're looking
at here broadly speaking for the last
the last three months so it's much
easier to identify a trend on the chart
and it's pretty clear what the trend is
here and there to trade with that trend
so there we go we want to try and trade
with the trend put the odds in your
favor you know if a market is going up
over the timeframe you're trading look
to be a buy if a markets going down look
to be a seller I think this the second
maybe more common problem is a trading
to dig you know people might open an
account with let's say there's a parent
of thousand euros thousand dollars
whatever it is but they risk far too
much on any one trade yet they do a
trade where they're risking losing 250
euros x dollars whatever it is it's a
massive risk compared to the size of the
uCam and I think it's very difficult to
look at a market objectively if you're
in a trade if every point the market
moves against you or in your favor is a
massive sum of money to you whatever
that sum of money is you know so I think
we need to trade at a level where we're
not obsessing about every small point
move in the market so it's a really
important part of trading you when you
start off and even if your account grows
think we'll look am i really comfortable
with a level of risk I'm taking here
because if you're not then every time
the market moves a little bit against
you
you'll be panicked into making maybe
making bad decisions getting out of the
trade too early or setting your
stop-loss to time which brings me I
think to point number three I think the
third maybe the most common mistake
maybe get in there with trading against
the trend the most common mistake is I
think when it comes to selling stock
losses you know first of all if you're
not sending a stop loss you're just
hoping
the market is going to go in your favor
you don't really have a strategy for
getting out if you're wrong and that's a
real issue you know if you can't admit
you're wrong that's the real problem
when it comes to trading but let's say
you do use stop losses you're sensible
you think I am going to use a stop loss
on a trade I think but the most common
mistake when using stop losses is
setting them far too tight to where the
market is trading and we're going to
look at a great example in a second for
this so you don't even give the trade
time to work in your favor you're so
worried about losing on the trade you're
not even giving it a chance to be a
winner so to see a real example from
last week we're going to take a look at
the price of oil
I think oil is as good an example as any
to illustrate where people can go wrong
with stock losses so what we've got here
we've got at each candlestick represents
an hour and we've got the last week of
July the beginning of August as our
trading you let's take the last day here
so this is on the fourth of August that
we've got on our chart here so the
market traded as low as 48 dollars and
48 cents that was 11 o'clock in the
morning the height of the day was 49
dollars and 61 cents that's at 7 o'clock
in the evening UK time so the market has
travelled through a dollar 13 of range
so a hundred and thirteen points of
range and that does suggest that so
that's a pretty typical day I think for
the price of oil looking at you know the
last week clearly get a big day there
but typically you know 113 point moves
is not an unusual one for the price of
oil but plenty of people will try and
trade a volatile markets like this with
incredibly tight stops let's say you're
trading and you're buying oil somewhere
and you're using a 10 point stop a 15
point stop a 20 point stop what are the
chances you've got it right there
chances are you're going to get stopped
out just in the noise of the market so
you're not giving your trade time to
work out and if you're buying in here
because you think it's going up and
using a 10 15 point stop your roommates
asking the market
to stop you out you know because this is
on a day where the market moves through
a hundred points you know so I'd suggest
we need to give some thought to the size
of our thoughts don't be afraid to use
wiser stops and trade a little bit
smaller and set them in logical areas
rather than just buying or selling
randomly and hoping the stock works out
for example it's always easy to look at
these things in the past of course but
we've talked about selling stocks before
in here well early morning so between
eight to eleven o'clock we saw the
market the prices will come back down to
about forty eight dollars fifty forty
eight dollars sixty and over the
previous couple of days you can see it
here and here and here and here whenever
we've seen the market dip down to sort
of forty eight thirty forty eight fifty
we see the buyers come back out so if
we're if we're buying in here somewhere
a logical place to have our stop loss is
the other side of these old loans so it
might mean if we're buying a forty eight
eighty our stock is going in you have 60
70 points away but if we're looking for
a bigger move who cares you know we're
giving the market time to prove us right
rather than setting a stop-loss that's
just going to get taken out during the
normal noise and normal trade of the
market throughout the day so there we go
I think the three most common mistakes
trading against the trend trading far
too big in terms of the size of your
trades when compared to the size of your
account and probably the most common one
setting stop-loss is far too tight so
you just get knocked out in a small move
against you which is just normal market
noise so a little bit of a different
approach this week but hopefully you
know it's given you something to think
about when it comes to your own trading
next week we'll take a look at another
different trading strategy as usual if
you have any questions about what's been
covered today or something you'd like it
to cover in the future just leave us a
message in those comments down below if
you liked the video click the thumbs up
if you're not subscribed if you click
that button that should have magically
appeared there you'll get automatically
notified when the next videos get
uploaded but for this week from me David
Jones and trading - and - we'll leave
things there
I hope you have a good trading week
hello and welcome to this week's trading
strategy video with me David Jones and
trading 2 & 2 now we've covered quite a
lot I think in recent weeks we've looked
at price action oscillators moving
averages breakouts false breakouts all
this sort of stuff so I thought this
week would be a good opportunity to
maybe just pause a little bit and look
at what are some pretty common trading
mistakes and when it comes to trading
mistakes you can make a really long list
but I thought for the purposes of this
because it's going to be a short video
and people just don't have the attention
span these days um let's look at the top
three trading mistakes let's start off
number one you will have heard this
before and we're going to look at a real
example from the last couple of weeks in
a second but I think one of the big
problems is people cannot trade with the
trend they see a market and there have
been plenty of markets in recent weeks
the euro oil stock markets they see a
market that's maybe doing that
or doing that and if a markets been
going up up up they can't seem to bring
themselves to buy into that market they
always want to try and pick the top you
know so they're going against the major
move in the market in the same of course
for falling markets of a market its
sliding plenty of people are trying to
pick the bottom but what are the chances
if you have a market that's gone up for
six months or down for six months that
you nail the absolute turning point it's
highly unlikely but let's look at a real
example let's take a look at the euro
dollar which just recently moved out to
two naffy highs there are so many
markets we could pick at the moment when
it comes to looking at trends but let's
go with euro dollar because it hit
two-and-a-half year high last week and
data shows that you know with some
brokers feeling like 70 percent of
clients were selling short the euro but
you're really trading against the odds
so in a trend like this in a strong
uptrend our approach to be looking to
buy the dips you know if you if you're
selling short look at the sort of moves
you're trying to catch their tiny moves
but it's what are the chances that
you're going to pick the absolute top
it's much easier to try and position
yourself for maybe the next swing over
the next few days next few hours and
extra weeks and whatever your time frame
is so trading with the trend really
should be at the core of our approach
but it's one that so many get wrong
because psychologically it's a difficult
thing to do but I think you know even in
a trend like this the market okay has
gone down for one day
but has gone up in a view we're looking
at here broadly speaking for the last
the last three months so it's much
easier to identify a trend on the chart
and it's pretty clear what the trend is
here and there to trade with that trend
so there we go we want to try and trade
with the trend put the odds in your
favor you know if a market is going up
over the timeframe you're trading look
to be a buy if a markets going down look
to be a seller I think this the second
maybe more common problem is a trading
to dig you know people might open an
account with let's say there's a parent
of thousand euros thousand dollars
whatever it is but they risk far too
much on any one trade yet they do a
trade where they're risking losing 250
euros x dollars whatever it is it's a
massive risk compared to the size of the
uCam and I think it's very difficult to
look at a market objectively if you're
in a trade if every point the market
moves against you or in your favor is a
massive sum of money to you whatever
that sum of money is you know so I think
we need to trade at a level where we're
not obsessing about every small point
move in the market so it's a really
important part of trading you when you
start off and even if your account grows
think we'll look am i really comfortable
with a level of risk I'm taking here
because if you're not then every time
the market moves a little bit against
you
you'll be panicked into making maybe
making bad decisions getting out of the
trade too early or setting your
stop-loss to time which brings me I
think to point number three I think the
third maybe the most common mistake
maybe get in there with trading against
the trend the most common mistake is I
think when it comes to selling stock
losses you know first of all if you're
not sending a stop loss you're just
hoping
the market is going to go in your favor
you don't really have a strategy for
getting out if you're wrong and that's a
real issue you know if you can't admit
you're wrong that's the real problem
when it comes to trading but let's say
you do use stop losses you're sensible
you think I am going to use a stop loss
on a trade I think but the most common
mistake when using stop losses is
setting them far too tight to where the
market is trading and we're going to
look at a great example in a second for
this so you don't even give the trade
time to work in your favor you're so
worried about losing on the trade you're
not even giving it a chance to be a
winner so to see a real example from
last week we're going to take a look at
the price of oil
I think oil is as good an example as any
to illustrate where people can go wrong
with stock losses so what we've got here
we've got at each candlestick represents
an hour and we've got the last week of
July the beginning of August as our
trading you let's take the last day here
so this is on the fourth of August that
we've got on our chart here so the
market traded as low as 48 dollars and
48 cents that was 11 o'clock in the
morning the height of the day was 49
dollars and 61 cents that's at 7 o'clock
in the evening UK time so the market has
travelled through a dollar 13 of range
so a hundred and thirteen points of
range and that does suggest that so
that's a pretty typical day I think for
the price of oil looking at you know the
last week clearly get a big day there
but typically you know 113 point moves
oil but plenty of people will try and
trade a volatile markets like this with
incredibly tight stops let's say you're
trading and you're buying oil somewhere
and you're using a 10 point stop a 15
point stop a 20 point stop what are the
chances you've got it right there
chances are you're going to get stopped
out just in the noise of the market so
you're not giving your trade time to
work out and if you're buying in here
because you think it's going up and
using a 10 15 point stop your roommates
asking the market
to stop you out you know because this is
on a day where the market moves through
a hundred points you know so I'd suggest
we need to give some thought to the size
of our thoughts don't be afraid to use
wiser stops and trade a little bit
smaller and set them in logical areas
rather than just buying or selling
randomly and hoping the stock works out
for example it's always easy to look at
these things in the past of course but
we've talked about selling stocks before
in here well early morning so between
eight to eleven o'clock we saw the
market the prices will come back down to
about forty eight dollars fifty forty
eight dollars sixty and over the
previous couple of days you can see it
here and here and here and here whenever
we've seen the market dip down to sort
of forty eight thirty forty eight fifty
we see the buyers come back out so if
we're if we're buying in here somewhere
a logical place to have our stop loss is
the other side of these old loans so it
might mean if we're buying a forty eight
eighty our stock is going in you have 60
70 points away but if we're looking for
a bigger move who cares you know we're
giving the market time to prove us right
rather than setting a stop-loss that's
just going to get taken out during the
normal noise and normal trade of the
market throughout the day so there we go
I think the three most common mistakes
trading against the trend trading far
too big in terms of the size of your
trades when compared to the size of your
account and probably the most common one
setting stop-loss is far too tight so
you just get knocked out in a small move
against you which is just normal market
noise so a little bit of a different
approach this week but hopefully you
know it's given you something to think
about when it comes to your own trading
next week we'll take a look at another
different trading strategy as usual if
you have any questions about what's been
covered today or something you'd like it
to cover in the future just leave us a
message in those comments down below if
you liked the video click the thumbs up
if you're not subscribed if you click
that button that should have magically
appeared there you'll get automatically
notified when the next videos get
uploaded but for this week from me David
Jones and trading - and - we'll leave
things there
I hope you have a good trading week
