One thing I’ve noticed about traders who are at the top of their game, they don’t stop learning. Even when they start consistently making money they continue to evolve and improve their approach. They just DON’T STOP!
So, it makes sense to hear from these traders more than once to find out what they’re up to. And in this episode we get a “clothes off” view of what Nick Shawn (EP04) has changed his style of trading (including an unique money management strategy).
By the end of the show you’ll not only be able to trade like Nick, but you’ll fully understand his unique approach to money management – something most guest never really touch on.
I urge you to listen to the full show, and watch the video we shot afterwards. You’ll be amazed (and grateful) at how much Nick shares and how it could improve the way you trade today.
- [10:37] For me, what is the clearest and most obvious in the chart, works best.
- [11:10] You don’t even really need the Elliot Waves. It’s a good extra confluence thing but it can be kind of confusing to do.
- [12:20] I only trade divergence on the higher timeframes now.
- [16:33] I’m a little more aggressive, I use 20% of my total investment funds.
- [16:52] Divergence will sometimes go into a trading decision on the majority of my funds.
- [17:11] You can get risk-rewards of sometimes 1 to 5, 1 to 6, but I always go a minimum of 1 to 3.
- [17:58] I like high-risk systems. I think they’re a lot of fun and they’re very interesting and they also can make tons of money.
- [21:00] All of my trades, whether it’s price action or a divergence, it’s all based on daily and H4.
- [26:42] You have to make sure that you’re okay with losing that small amount of money.
- [27:56] Significant daily levels work so well because everyone is looking at those most obvious levels.
- [30:33] Price tends to react very significantly at extreme highs and lows.
- [38:18] Win rate is very irrelevant in terms of risk control.
- [39:57] Keep things simple and control risk.
- [40:05] Whenever you keep things simple, you’re less likely to get confused.
- [40:33] Having a good risk-reward it means that you know you have an edge underneath your belt.
- [42:42] As long as you know you’ve kept things simple and you’ve controlled risk well, it’s not going to make you emotional.
- [45:49] In the forex market, you don’t know whether or not it’s going to be a winning trade.
- He trades forex
- He only trades divergence on the higher timeframes
- He uses 2 different trading strategies – Price Action and Divergence
- He has 2 separate trading accounts, one for his Price Action and the other is for Divergence strategy
- He’s a bit of an aggressive trader
- He likes high-risk systems
- He has a minimum of 1:3 risk-reward ratio.
- His trades are all based on the daily and H4 charts.
- He also trades Gold
Nick’s Divergence Strategy
Level up and watch this video where Nick fills you in on any blanks you may have from the audio interview. Trust me, you’ll love this!