18: How To Easily Read The Market Like A Professional w/ Simon Klein

Simon Klein studied Computer Science at University College London and worked as an Analyst for Credit Suisse in both London and New York.

His interest in trading started after he received an offer to work as a Portfolio & Risk Analyst on the trading floor. He also worked at number of Propriety Trading Firms where he was able to get access to very skilled and experienced traders.

Simon learned how to read the markets without using indicators and has since developed a trading methodology that he’s still using today. He founded Tradesmart (TradeSmart4x.com) where he provides trading education, training, coaching and a live trading room.

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Podcast Interview

Interview Links

TradeSmart4x.com
Simon@TradeSmart4x.com

Recommended Books

Trading in the Zone by Mark Douglas

Broker and Platform

ThinkOrSwim

Simon’s Strategy of the Week

Key Lessons

• [27:33] I’ve been exercising regularly for years and I think it’s a very important part of the routine that you need to do to keep yourself fit in top condition as a trader, to keep yourself physically fit.
• [29:14] It’s better to not be in a trade that you shouldn’t be in than to be in that trade.
• [31:24] You need to track what you are doing, know what your results are and eliminate what is not working for you. Now you stand a chance of being a successful trader.
• [31:53] If you focus on money when you’re trading, it’s detrimental to your trading. You must be more process-focused. Focus on the process and not the outcome your trades.
• [34:45] You need to just follow your rules, follow your plan and if you know you have a positive expectancy, you know that losing trades are just part of your winning system, it’s just part of the business.
• [36:56] I don’t have plan B. Plan A, I’m gonna do everything that it takes to make it work.
• [38:35] There are two areas that you need to be careful as a trader – when you lose money and when you make money.
• [45:12] You don’t really need to predict the market, you don’t need to know what the market is going to do in order to make money consistently. You need to know what you’re gonna do when the market does something.
• [45:56] Once you learn how to read the charts then you’ll start to notice, as you watch the charts, certain things you start seeing again and again. From there you can develop a strategy.
• [48:27] Start small, prove it works, and then put money into it.
• [60:42] Learning how to trade is not just taking a trade, buying and selling, it’s a whole process you need to go through.
• [60:49] Don’t focus on the money. Focus on the process and the money will take care of itself.
• [63:53] Successful traders will buy on a pullback and the non-successful would sell to the one who’s buying.
• [65:48] Once you start to rely 100% on yourself then you start to really develop as a trader.
• [68:06] Learn how to trade before you start trading and focus on the process and not the money.

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Simon’s Trading

• He’s a day trader and also a swing trader
• He uses the H1 and Daily time frames for swing trading and day trades using the H1, M15 or the M5 time frames
• He only trades 2 to 3 times in a day
• He trades primarily the Forex and Futures markets during the London and New York Open
• His reward-to-risk ratio is 2:1
• He has a 70.6% average winning rate
• He focuses on the Forex major pairs, E-minis, Gold, and Oil
• He also follows Bitcoin futures
• He’s been trading since 2005
• He doesn’t rely on the fundamental news when he’s trading

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