Weekly Learning - Turle by Russell Sands

The following are the lessons and experience I learned from Rusell Sands DVD

What do you need to become successful as a trader?
- Discipline
- Common Sense
- Ability to learn
- An Open Mind
- Average Intelligence

Trend Following
- Markets do trend even it trends 15% to 20%. Even you are right 20% of the time, you can still be a winner.
- You must take all the trades and cannot second-guess yourself.
- Go with the trend
- We do not know where the target is. We get out when the trend turns.
- Go with the gap with the direction of the trend. The gap with the trend is much bigger than the gap against the trend.
- It is hard works in mental and physical.
- It is a reactive trader. We do not predict but we react. If the market is up, we are the buyers. If the market is down, we are the sellers
- The price is always right.
- Follow the market without ego
- Do not fight the trend.
- Never risk more than 2% of your capital
- It applies to all markets especially commodities and currencies.
- Do not trade on borrowed money or money that you cannot afford to lose. It will affect your judgment.

System rules:
o Buy if the price breaks the 20-day higher sell if the price breaks the 20-day low.
o 50-day high is better than 20-day. The higher the high, the better it is.
o The longer the market is consolidation, the better the trade is if the price breaks out.
o Get out if the prices make 10-day high for shorts or low for long.
o 2% capital is your risk.
o Do not have profit target
o Add more contracts if the price break higher day highs like 50-day high or year-high.
o After a few profitable trades, do not take the next few trades.