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 hovers around nine-day EMA above 1.1800
EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.
GBP/USD holds medium-term bullish bias above 1.3600
The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.
USD/JPY drops back below 157.00 on Japan's verbal intervention
USD/JPY has come under moderate selling pressure below 157.00 in the Asian session on Monday. The Japanese Yen lost ground to near 157.70 following Japan’s ruling Liberal Democratic Party's outright majority win in Sunday’s lower house election, opening the door to more fiscal stimulus by Prime Minister Sanae Takaichi. However, JPY buyers jumped back and dragged the pair southward on FX verbal intervention by Japan’s Finance Minister Katayama.
Editors’ Picks
EUR/USD hovers around nine-day EMA above 1.1800
EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.
Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand
Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.
GBP/USD holds medium-term bullish bias above 1.3600
The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.
Bitcoin, Ethereum and Ripple consolidate after massive sell-off
Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels.
Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle
Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.
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