Who I am
It is an honor to tell you that I am richly blessed having met my wife and soul mate Helene. Even after 36 years of marriage, we are still deeply in love with each other. We live in a the coastal town of Mossel Bay, Western Cape, South Africa. What with the 2nd best temperature in the world, it is truly a paradise!
My Business Career
From very humble beginnings, I overcame many formidable entry barriers to become the successful owner and shareholder of two highly successful companies. The reason why I managed to succeed was my philosophy of never forgetting a customers lifetime value to a business. It is fatal to ignor this. My business breakaway strategy included: offering the customer superlative service - greater efficiency - Better team spirit - Improved morale (all of which can can only strengthen your bottom line!). In the interests of greater efficiency my team encouraged creative freedom, lacerating red tape, busting corporate bureaucratic thinking because, we had joined the imagination age.. . .
My Spiritual & Physical Health Side
For many years I served as an ordained part-time church minister, serving all levels of society where I was most needed including, the elderly, families, youth and young children. My greatest challenge was my 4 year ministry to the sick at the largest government Academic Hospital in South Africa, which was based in Pretoria. I found this place to be both my sanctuary and sanatorium. Countless times I wept when dealing with people on their death beds. The hardest challenge was ministering to children who were terminally ill. It was here that I learned the true meaning of “Agape Love”, where it is not only beautiful and pure, but also it hurts very deeply! It is very much how parents feel once their children have reached adulthood and are about to leave home forever.
On the health side my wife Helene and I eat water-borne foods and follow a very strict physical fitness regime, which has served us very well over the years. The right diet and plenty of oxygen has proven beyond doubt to improve one’s health and energy levels. My greatest weakness is my love for ice cream which I have restricted myself to eat only on Sundays.
Why I Trade
Trading is one of the ultimate experiences in my limited lifetime. It is further enriched by the knowledge that one is not alone and operating with knowledgeable support people and fellow-growing friends. I have never allowed money to be my master, but rather my servant. Therefore I trade with the desire to not only to offer financial security to my loved ones, but also position me so that I can uplift others. There is nothing on earth which can match the gratification that I get from empowering others with knowledge and wisdom to help them succeed in their lives..I have come to the realization, through experience, that the only precious treasure which we can take with us when we die is the souls of people. The nonburnable gold, silver and precious stones on God's altar of fire. "Success breeds Success" and it becomes more effective when one preaches only what one practices. Great leaders who I try my utmost to emulate, lead by example not just surface words. For over two-and-a-half decades, my businesses presented the following slogan on all of our printed materials: "Only action determines our value in the market place and to multiply our value we will multiply our actions". Trading can be both fun and humiliating. It makes us all realize that we are only fallible human beings.
My Current Strategies
My New Trading Plan This is a “living” document and subject to improvement over time.
Introduction:
It is important to start this Trading Plan by being clear that this plan is engineered to ensure that consistent and constant profit returns are maintained with minimal losses. That's not to say that there are not people making livings just studying candlesticks, and price action; However, I have found that a larger view and understanding of the market is crucial for success. Price action plays a large role within that overall picture, but I do not suggest following any candlestick signal blindly. Through intensive study we need to see the market in a whole new light. The following points will cover this:
• Market Focus: my personal main focus is within the currency market, followed by Indexes and Commodities (Gold & Oil is my main bias).
• Market Timing Comprehending that the biggest players in the market are the Institutional and Professional Investors. 85%of all activity comes from them and they control Billions of $’s. It is these institutions who create DEMAND. We therefore need to become experts at Market Timing. Price is the function of Supply and Demand. The biggest Institutional Funds are the Pension Funds, comprising of trillions of $’s . . . The thing that drives Price is VOLUME. How can we measure demand? Demand is therefore measured by looking at the Volume. The Volume of the amount traded and is the only footprint left for us to examine the markets TREND. It indicates to us as to where these Big investors Entered or Exited the market. Identify with Certainty where the market is going.
• Exercising FAITH and Developing psychological Toughness. True faith does not operate in a vacuum. I heard a Christian Minister (Dr. David Jeremiah) ask the following question which left an indelible and unforgettable impression in my life: He asked if you were to go pole fishing where there is snow and ice, “How much faith do you need to stand on one inch of ice compared with one foot of ice?” Very good question! If you prefer to fish on one inch of ice, please don’t ask me to go fishing with you. However, if you have done your homework properly you need very little faith to trade. Psychological toughness develops over time as we trade.
• Trading Type: The full nine yards including: Scalp, Swing and position trading (Ref: Forex Fanatics Strategy).
• Identify the (5) Phases of the Market and Spot the Right Patterns.
• Main Indicators used: Real Volume, ATR (daily chart), 20,60,200 EMA’s, RSI 9 and Currency Strength Indicator, Heat Map, Fin Vis & last but most important to be found at this link: https://www.mataf.net/en/forex/tools/currency-index
• Stringent with Risk Management Control & it’s many components.
• What To do once in a trade:
Number #1 Question: Never Ask . . . What do I do now? (A pilot or Surgeon do not ask this – they are trained to Know what to Do).
Number #2 Question: Where do I place my Stop?
Number #3 Question: What is my Profit Target?
Number #4 Question: How do I protect my profits?
Some Nuts and Bolts of the Trade Plan
– Play your “A” Game Every Day and Stay Focused
1. ANNUALLY First week of January every year – Examine and do technical analysis of the monthly and weekly charts.
2. WEEKLY (SAST Time Zone – South Africa) Saturday/Sunday afternoons (During “the Gap” when all markets are closed).
• Ensure that all charts are permanently setup and in order and that indicators selected are correctly set.
• Early morning analysis of the Monthly, Weekly & Daily charts. Examine 20 - 35 currency pairs and hyper-select the highest probability trades Seek out bargain Buys & Sells during the Australian & Asian sessions.
• Read the language of the market contextually and calculate the edge for success. Be willing to grant the market power over decisions. Keep growing in the areas of Diligence, Patience and Discipline. “A Market can stay irrational for a lot longer than you and I can stay solvent”. • Pick good Support and Resistance zones to enable the execution of entries and exits without requiring confirmation and increase profit potential . . . giving a trading Edge. This strategy requires much smaller stop losses.
• Look back in time for Strong Support and Resistance zones. Read and comprehend the ranges traded by the big institutions. Look to see if they were caught in any ‘Bear” or “Bull” Traps and observe the volatility that occurred. In cases where they are caught in Bear traps, these areas become extremely strong Resistance points and are difficult to cross over. “Gaps” are also a clear sign of this. Identify if there are any range bound Congestion/Consolidation Channels (Horizontal, ascending or descending). Look for where sudden big vertical moves transpired, thus forming flag patterns. Observe where there are other patterns ie., Head & Shoulders etc. Determine how the present price reached this point.
· Avoid over trading & over leveraging.
· Don’t chase trades, let them come to your pending trade setups.
• PREPARE the OPEN RANGE STRATEGY before the London Market Open. Set up 15 Minute charts for 5/6 major currency pairs ie., GBP/USD, EUR/USD etc. DRAW the P.O.C. (Point of Control) horizontal line on all the charts (Purple). This is the calculated previous day Highest Volume Price. Main Pivot (commonly known in professional trading circles as the “Meat of the Market”) – draw a horizontal line (Magenta) of the previous days (per the Daily chart) HIGH, LOW & CLOSE divided by 3 or (H+L+C)/3. Draw a Box/Rectangle (green border, white background) on the charts of the previous days last 30 minute London closing period. The parameters are: the Highest & lowest activity points including the wicks. Examine the Candlestick Price Action within the box using a 15M chart. Draw a dashed horizontal line (blue) in the centre of the box to reflect throughout the charts (Now we have 3 solid levels from which to execute Buys or Sells safely and effectively). Take note of the early activity outside the box (ideal for Brace Strategy implementation – the dashed line acting as Support or Resistance at this open range time cycle).
3. DAILY
• CHECK BOTH THE FINANCIAL & HOLIDAY CALENDARS
• Watch and observe the Price Action and Direction of the currency pair/pairs on the Open Range 15 MIN charts (London Open Range price cycle) – attention time required only 40 minutes tops. Check for activity outside the prepared Box. Frequently watch the horizontal line levels throughout the day. Go long above the Open Range or Short below it.
• Implement Money Management Rules throughout the day to minimize Risk.
• Be on the Watch for Short Term Scalping and Swing Trading opportunities.
• Stay Aware of Market conditions, Price Movements, Momentum, Reversals and Drawdowns etc.
• Plot Pivot Step Entry & Exit Points. Be reminded to play your “A” Game Every Day and to stay Focused