Chris Lori grew up in a family where his father taught him how to be financially prudent. This held some weight which developed his interest in Mutual Funds, Investments, and Equities early on in his teens.
After retiring from his sports career at the age of 35, Chris focused his energies on studying the Forex Market. Then things really turned a corner even better when he met his mentor who taught him about market structure and price behavior. But the real turning point in his trading career was when he was able to refine his psychological profile.
Chris believes that every highly successful trader should have a risk management model and a protocol that protects them from themselves.
Trading in the Zone by Mark Douglas
- [14:51] I think that anybody who has an interest in trading, they all, of course, start out with doing some research online and try to access as much freely available information as possible.
- [20:54] You all have been through a process of having succeeded at something. So you started at point A where you knew little or nothing about that what you were about to venture into, then you engaged you started the learning process and you have a general path on which you are going to follow to achieve your goal within that discipline.
- [21:46] I see some highly skilled people come into trading but they are not patient enough to engage in the due process.
- [22:34] If you have no experience and you try to copy what somebody else does, your entire lack of experience represents a risk to you.
- [22:47] You’ve all been through a process of going from point A to point B in succeeding, you need to understand that and apply that to trading. Have the patience to go through the proper process.
- [24:31] It’s important to have a very clearly defined development process.
- [26:20] The day that you become an independent thinker and you don’t care what everybody else thinks or says, that is the day that your trading is going to start to go through the roof.
- [31:44] We want to train the brain so that it becomes more comfortable with price behavior where previously you became very uncomfortable.
- [33:38] As price is rising, the state of liquidity around price and why it’s moving and where it’s moving to is changing.
- [42:01] As a result of the development process your trading plan will formulate over consistencies that you see and when you start to identify consistencies then you start to identify trades.
- [44:50] Risk management model is to protect your psychological threshold.
- [45:07] Every highly successful trader has a risk management model and a protocol that protects them from themselves.
- [46:26] The first goal of every trade is to secure your equity but in order to do that effectively and consistently you have to understand the price behavior or whatever model you are using you have to understand the intimacy of the tools that you are using.
- [52:12] The more dilution you have the less focus you have on understanding and building an intimate relationship with a specific space in the market.
- [52:48] If you’re making one trade a week and you’re not successful then making five trades a day is just dilution, you’re not gonna be successful.
- [58:47] If you stay focused and you become highly-skilled at taking money out of the market in a specific area, you don’t need to go anywhere else. So, if you’re not trading Foreign Exchange successfully, you’re not gonna trade Cryptocurrency successfully.
- [68:13] Every one of these successful traders had a mechanism in place to protect themselves from themselves.
- [72:12] Engage in the development process, work it out, plan it out, invest your time in front of your computer wisely, be productive, and don’t waste any time.
- He’s purely Price Action based trader for the intraday model
- He looks for a weak move into a pocket of liquidity where there’s going to be a strength
- He uses the same exact parameters for his short and long-term positions
- His intraday trades last for about 5 minutes to a couple of hours
- He uses an average gain-lose ratio for his intraday trades
- He trades the volatility with profit targets of 10 to 30 pips
- His stops have a maximum of 0.25 of 1 percent
- He has a maximum of 3 (intraday) trades
- He doesn’t believe that one should trade 10 or more currency pairs
- He also trades Indices
- He uses limit orders as his first exit
Chris’ Strategy of the Week
- His levels are coming up anywhere from 30 to 60-minutes charts using the daily highs and lows
- If the price has not arrived at a big figure for more than 3 days, liquidity will accumulate, and the price moves nice and smoothly (not a central bank-driven move)
- He enters a trade when the price hits a big figure anywhere in the 04 to 09 area
- Puts his stop down below 90, if the price starts to accumulate and breaks to the upside, he moves his stop up to break even or below the accumulation level
- He puts his profit target 10 to 15 pips away
What did you think?
Leave a comment below, and if you heard me mention the Fasting Diet then let me know if you’re keen to join in!