Russ Berg (aka: 56818). First Hour Trading. FHT. How it works. My Trading Workstation. How it looks when I am ready to start trading every morning. Another Look. A screen shot of all 4 monitors. Starting with Number 1 on the left. Monitor 1. Staying in Sync with the Market. Monitor 2.
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First Hour Trading
How it works
How it looks when I am ready to start trading every morning
A screen shot of all 4 monitors.
Starting with Number 1 on the left.
Staying in Sync with the Market
My main Trading Monitor
Secondary Trading Monitor
FHT and MHT Chats with two reference websites in the background.
All four of these have an edge sticking out to click on in order to bring it to the top.
Use them or lose.
1. Protect your Capital (ALWAY have a stop).
2. Plan your trade and trade your plan (know your risk before you trade (how much you are willing to lose if you are wrong) and set a target for profit)
3. Emotions while trading will kill you!
4. Never trade out of bordom or when you are angry with the market (see rule #3)
5. NEVER move a stop against you once it is set. You can always buy it again at a better price.
6. You can never go broke taking profits.
7. If you miss a trade "it was somebody else's money".
8. Cut your losers short and let your winners run! (scale out on successful trades and use trading stops)
9. Keep a trading journal with reasons or conditions for entering and exiting each trade. Review both winners and losers for patterns in your behavior and adjust your trading system .
10. Anything can happen. It is not the news that counts; it is the market's REACTION to the news that matters. Trade what you see NOT what you think!
And Russ adds a few of his own:
11. Always trade within your comfort zone. Trade too big and your emotions will cost you big money.
12. Never add to a losing position. Doubling up will usually just add to the pain and cause you to violate rule 11. (It is much better to double up on a winning position that is going your way.) But you have probably never done it.
13. If you insist on trading in the thinly traded and unpredictable pre-market, only trade half of your normal dollar amount.
14. Learn to think in terms of percentages, not dollars. It is just as hard to make a nickel a share on a five dollar stock as it is to make a quarter a share on a $25.00 stock. Either one produces a 1% profit. Don’t try to stretch that $5.00 stock out to a dime a share profit any more than you would try to make half a buck profit on the $25.00 stock. Think in percentages and you won’t make that mistake.
15. If you are a newbie it is better to trade one stock at a time well than it is to trade 2 or 3 stocks at a time and do it badly.
16. Trading a stock that is going against you, and staying in it “on hope” is like placing a bet at the race track on a 50 to 1 shot. You get a lot of losers that way. Is that what you want, “A lot of losers?”
***Another trader says: The only thing I can add to the "Rules" is the following:
1. Keep a positive attitude no matter how much you lose, for you will lose. The secret is to follow the rules to keep this problem to a minimum.
2. If you take a loss, forget it. If you take a profit, forget it even quicker. Don't let ego and greed inhibit clear thinking and hard work.
3. Never forget that the market's sole purpose is to take your money away from you.
4. YOU CAN'T EVER GO BROKE TAKING PROFITS May 13, 2010 12:16:49 PM EDT
***And still another trader says:
1. Never, NEVER cancel a stop loss. I know, I know, every time you have a stop loss in the market, the market moves just enough to stop you out, right? Well it might mean that you should evaluate where you place your stops (this is where good trading journals come in handy), but once you’ve done your analysis and placed the trade, you need to be committed to the trade and your written trading plans & systems. The only adjusting you should do is to lock in your profits.
2. Always have your broker or your trading desk number handy, along with your account number even if you trade electronically. This is really important for the intraday day trader who is trading leveraged markets. It is easy to get a little too comfortable when your trading platform and internet connection are running smoothly, but once you drop your guard that inevitable lost connection will happen…a lost minute, even seconds could be an expensive lesson!
3. Always check your open and close orders. This can be done a few different ways depending on your trading platform, but if your intention is to be flat in the market, always double check!
4. Don’t rely on Dollar Cost Averaging to “repair” a bad trade. It does NOT work. Trust me! I know you’ve heard stories about making money by adding to a losing position, but let me share one word…ENRON.
5. The market will always go higher and it will always go lower. Don’t try to pick tops and bottoms on a hunch. This is where most new traders get burned.
6. Don’t over-leverage yourself or have all of your money tied into one position. Keeping cash on hand is okay as a trader. These days brokers are offering extremely competitive margin requirements for intraday trading futures, but low margins can be a wolf in sheep’s clothing.
7. Don’t over-leverage yourself or have all of your money tied into one position. Keeping cash on hand is okay as a trader. These days brokers are offering extremely competitive margin requirements for intraday trading futures, but low margins can be a wolf in sheep’s clothing.
8. Don’t trade to trade. Understand that there are 3 positions you can take as a trader: a long position, a short position and a position to NOT be in a position.
9. Avoid trading the plan and strategy without having a good understanding of how the plan and strategy works. What is the typical winning percentage? What is the largest drawdown? In general, high winning percentage strategies have smaller average profits per trade. Lower winning percentage strategies might not have as many winners, but when you are a winner, you typically win big.
10. Don’t get cocky after a few wins. The market WILL humble you and make fools out of those with egos.
And They will work for You Too…
1) They Plan Every Single Trade—Every Single Onea) The highest price they are willing to pay (if they are going long) or the lowest price at which they are willing to sell (if they are going short)b) Their profit target where they will exit if they are "right"c) Their stop loss where they will exit if they are "wrong"d) The risk/reward ratio of the tradee) The exact percentage of their account they are risking
2) They Stopped Trying to Pick Tops and Bottoms Years Ago
3) They Are Patient with Winners…and Ridiculously Impatient with Losers
4) They Trade One Market—Just One
5) Their Benchmark for Success Is Anything But Money