Brandon Wendell, CMT
Brandon Wendell
When we learn a new skill it takes time to develop it. The best way to do so is to practice under a mentor. Think back to when you first learned to drive. You likely had someone review the basic operations of the vehicle and traffic laws with you. Then they likely rode with you in a controlled environment and monitored your progress. Eventually, you may have entered the open road with that person mentoring you and guiding you as you practiced your new skill. Now, you likely drive without much thought as you adjust your radio, put on make-up, slurp your Starbucks or eat your Egg McMuffin.
Free WorkshopTrading is a lot like learning to drive. It is a skill that must be learned and practiced. In Online Trading Academy’s Professional Trader Course you learn the basics of trading, the foundation. This is much like learning the basic vehicle operations and rules of the road. You now know what you didn’t before, but you aren’t experienced enough to drive yet. Online Trading Academy recognizes this and takes their classes a step further than anyone else. We drive with you in a controlled environment. This is accomplished with live trading in our classroom, using our funds and under the supervision of an experienced trader/instructor. Most students think that they are done at this point and ready to take on the markets but they still lack that “on the road” experience.
That would be like driving out of that parking lot onto a busy freeway with no experience. You are going to be a danger to yourself and others! When I learned to trade, I took on a mentor who guided me through the markets. I was able to share trading plans and ideas with this person and they helped to correct my mistakes before they occurred, or before they grew too large to manage. While the trading floor is gone, the electronic mentoring lives on. I am proud to be one of the instructors for the Extended Learning Track (XLT) program at Online Trading Academy. We have several sessions per week that offer education and review for the skills you learned in class. We also set up and take swing and intraday trades and review student trades. This is the equivalent of the “on the road” training that will shorten your learning curve and greatly enhance your skills.
I wanted to show you some examples from the trading sessions we held in the past in order to demonstrate the power of this mentoring. Before we enter into any trade, we must plan the trade. The instructors in the Extended Learning Track review the market conditions and potential trades for the session before any trading takes place. These are the same steps that any successful trader should do, and watching this will develop good trading habits for you.
Look at the trade we planned and executed on RIMM, (this is now the company known as Blackberry, BBRY). Even though we had a plan in place, as experienced traders we are always open to new opportunities and adjustments due to ever-changing market conditions. We took a live trade in the Stock Mastery XLT mentoring room based on RIMM failing at supply. This proved to be a nice winning trade to start the day. We were eventually able to take the second planned trade. Having an experienced trader demonstrate how to plan and adjust to market conditions is critical to your success.
We did something similar in another session in the Stock Mastery XLT Class. A student was asking about a stock, LULU. As the instructor, I immediately noticed a strategy that I employ in the market and immediately planned and taught the trade strategy to the students. We were able to take the trade with success and even had another opportunity using the same strategy after the class ended for the day.
Learning a skill doesn’t mean you are ready to apply it efficiently and immediately. Trading successfully is a journey and it becomes easier with help. That is what we are here for as instructors and mentors. Utilize the tools and assistance available to you and don’t take the journey alone. You’ll find the path is much easier that way. Until next time, trade safe and trade well!
Neither Freedom Management Partners nor any of its personnel are registered broker-dealers or investment advisers. I will mention that I consider certain securities or positions to be good candidates for the types of strategies we are discussing or illustrating. Because I consider the securities or positions appropriate to the discussion or for illustration purposes does not mean that I am telling you to trade the strategies or securities. Keep in mind that we are not providing you with recommendations or personalized advice about your trading activities. The information we are providing is not tailored to any individual. Any mention of a particular security is not a recommendation to buy, sell, or hold that or any other security or a suggestion that it is suitable for any specific person. Keep in mind that all trading involves a risk of loss, and this will always be the situation, regardless of whether we are discussing strategies that are intended to limit risk. Also, Freedom Management Partners’ personnel are not subject to trading restrictions. I and others at Freedom Management Partners could have a position in a security or initiate a position in a security at any time.
Editors’ Picks
EUR/USD seems fragile below 1.1700 as Middle East war boosts energy prices
The EUR/USD pair trades flat at around 1.1680 during the Asian trading session on Tuesday, but broadly seems vulnerable, being close to its five-week low. The major currency pair is under pressure as surging oil prices due to the United States-Israel war with Iran have increased the risks of higher inflation for the Old Continent.
GBP/USD hovers around 1.3400 with bearish pressure intact
GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.
USD/JPY struggles below 157.50 amid intervention fears, risk aversion
USD/JPY stays defensive below the 157.50 and over a five-week high set on Monday as a dramatic escalation of geopolitical tensions in the Middle East continues to benefit the US Dollar's status as the global reserve currency. The Japanese Yen also benefits from a risk-off market scenario amid looming FX intervention fears, acting as a drag on the major.
Editors’ Picks
AUD/USD consolidates around 0.7100 as geopolitical risks counter hawkish RBA
AUD/USD remains confined within a multi-week-old range, oscillating around 0.7100 in the Asian session on Tuesday. Bets for another interest rate hike by the RBA in May continue to act as a tailwind for the Aussie. However, a hit to sentiment from US-Israeli air strikes against Iran helps the safe-haven US Dollar preserve its overnight strong gains, capping the upside in the risk-sensitive Australian Dollar.
Gold stays bullish as Iran war continues to spur safe-haven flows
Gold is finding renewed bids in Asian trades on Tuesday, making another attempt to regain the $5,400 level amid persistent demand for safe-haven assets as the Iran war extends. A softer risk tone remains in play as US President Donald Trump continues to threaten deeper escalation to the ongoing war with Iran, warning that a “big wave” is yet to come.
USD/JPY struggles below 157.50 amid intervention fears, risk aversion
USD/JPY stays defensive below the 157.50 and over a five-week high set on Monday as a dramatic escalation of geopolitical tensions in the Middle East continues to benefit the US Dollar's status as the global reserve currency. The Japanese Yen also benefits from a risk-off market scenario amid looming FX intervention fears, acting as a drag on the major.
Top Crypto Gainers: Near Protocol, Virtuals Protocol, and Morpho lead market recovery
Near Protocol, Virtuals Protocol, and Morpho are leading the market recovery with double-digit gains over the last 24 hours. Technically, NEAR extends the breakout of the falling channel pattern, VIRTUAL holds above the 50-day EMA, while MORPHO tests a crucial resistance.
The market is not panicking it is repricing the probability distribution of Oil and time
At the end of the day, markets do not trade morality or geopolitics. They trade transmission channels. And the only channel that truly matters in this maelstrom runs through the price of energy and the time value of money.
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