3 Things That Made Me a Better Trader

10 Jan

Its as simple as following a trend. In my opinion, there are 2 types of traders, trend traders and range traders. I prefer to fade range trading because it is very easy to get chopped up. The first step to being a trend trader is to first Identify a trend. I do this by using the Keltner channel. It lets me know two things:

1. Market has pushed with enough emphasis that the move could have continuation.
   
2. The Keltner channel objectively identifies the trend for me. This way I do not have to rely on my own discretion.
   

Secondly, I patiently wait for a pullback



Lastly, I look for an entry on a "breakout bar" or an inside bar and I place a stop order entry just above this.



Its as simple as that. There is no more magic to this formula. There are many other ways to enter a trade on the pullback. For instance you could place a limit order at the previous bars EMA value (EMA with an offset of 1). I have linked a my complete editor's pick Keltner channel strategy to this article. If you want even more in depth detail on this strategy check out my website in my profile.

Good Luck and Good Trading!