Guillermo Monguia / Profil
- Bilgiler
1 yıl
deneyim
|
3
ürünler
|
14
demo sürümleri
|
0
işler
|
0
sinyaller
|
0
aboneler
|
I'm a Trader and Software Developer. What I comment is not financial advice ;)
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
[Do you really need both Stochastic indicator & RSI?]
Well, they are similar but different.
I’ll explain…
The stochastic indicator and RSI are similar because they are both momentum oscillators.
In other words, they measure momentum in the market and their values range between 0 and 100.
But how are they different?
Well, the calculations that go into the stochastic indicator and the RSI indicator are different.
However, they use the same concept which is to measure momentum.
Thus, you shouldn’t be surprised to see both stochastic indicator and RSI pointing in the same direction (albeit with different values).
So, the bottom line is this…
If you want to use a momentum indicator (like RSI or Stochastic), just pick one will do because they pretty much tell you the same thing.
Well, they are similar but different.
I’ll explain…
The stochastic indicator and RSI are similar because they are both momentum oscillators.
In other words, they measure momentum in the market and their values range between 0 and 100.
But how are they different?
Well, the calculations that go into the stochastic indicator and the RSI indicator are different.
However, they use the same concept which is to measure momentum.
Thus, you shouldn’t be surprised to see both stochastic indicator and RSI pointing in the same direction (albeit with different values).
So, the bottom line is this…
If you want to use a momentum indicator (like RSI or Stochastic), just pick one will do because they pretty much tell you the same thing.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
In trading, EQ (emotional intelligence) is greater than IQ (intelligence quotient).
It's not just about being smart, but also about being disciplined, patient, and adaptable to changes in the market.
It's not just about being smart, but also about being disciplined, patient, and adaptable to changes in the market.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
[A stop loss order will save your trading account, here’s why…]
A stop loss order is a type of order that gets you out of a trade automatically.
It means that you don’t need to stare at your charts the whole day and try to scare your pants off as the price approaches your stop loss order.
Now…
I’m not going to lie to you…
It hurts taking a loss…
Even if it’s just a losing trade.
But how would you feel when your stop loss order got hit, and the price went against you even more?
Except…
You’re not there to take the hit.
You feel relieved, right?
Not only do you free up space on your portfolio early to look for better trading opportunities.
But you also prevented a huge potential loss.
Can you see why this is important?
That’s why you can think of a stop loss order as a “risk police” that prevents you from losing more money or having unexpected losses.
A stop loss order is a type of order that gets you out of a trade automatically.
It means that you don’t need to stare at your charts the whole day and try to scare your pants off as the price approaches your stop loss order.
Now…
I’m not going to lie to you…
It hurts taking a loss…
Even if it’s just a losing trade.
But how would you feel when your stop loss order got hit, and the price went against you even more?
Except…
You’re not there to take the hit.
You feel relieved, right?
Not only do you free up space on your portfolio early to look for better trading opportunities.
But you also prevented a huge potential loss.
Can you see why this is important?
That’s why you can think of a stop loss order as a “risk police” that prevents you from losing more money or having unexpected losses.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
[The hidden cost of copy trading that nobody tells you]
Copy trading is a business.
So, if you’re not being charged any upfront fee, then you’re paying more for the spread and overnight fees.
I’ll explain…
For most Forex brokers, the spread on EUR/USD is 1 pip. But on a copy trading platform, you might pay 2 to 3 pips more.
But don’t take my words for it because you can compare the spreads of a normal Forex broker with a copy trading platform and you’ll see the difference.
So, what’s the implication?
Two things.
#1: If you’re a trader being copied, then bear in mind your trading strategy won’t work as well because you’re paying more in spread (compared to a typical Forex broker).
#2: If you’re copying another trader, then it’s best to follow traders who trade infrequently so the spread doesn’t eat up a huge chunk of your profits.
Now, the spread isn’t your only cost because you still have to consider overnight fees (if you’re holding positions for longer than a day).
This fee is calculated by taking Libor + X%.
(Libor stands for inter-bank offered rate. It’s an interest rate that banks charge to other banks for borrowing the money.)
So, what is X?
Well, this is the mark up that’s determined by the copy trading platform and you’ll need to check with them for the exact amount.
The good news is, you don’t have to worry about calculating all these because the platform will likely do it for you—so do check it out before placing a trade.
Now, there are probably other fees to consider but the spread and overnight fees make up the chunk of it.
Copy trading is a business.
So, if you’re not being charged any upfront fee, then you’re paying more for the spread and overnight fees.
I’ll explain…
For most Forex brokers, the spread on EUR/USD is 1 pip. But on a copy trading platform, you might pay 2 to 3 pips more.
But don’t take my words for it because you can compare the spreads of a normal Forex broker with a copy trading platform and you’ll see the difference.
So, what’s the implication?
Two things.
#1: If you’re a trader being copied, then bear in mind your trading strategy won’t work as well because you’re paying more in spread (compared to a typical Forex broker).
#2: If you’re copying another trader, then it’s best to follow traders who trade infrequently so the spread doesn’t eat up a huge chunk of your profits.
Now, the spread isn’t your only cost because you still have to consider overnight fees (if you’re holding positions for longer than a day).
This fee is calculated by taking Libor + X%.
(Libor stands for inter-bank offered rate. It’s an interest rate that banks charge to other banks for borrowing the money.)
So, what is X?
Well, this is the mark up that’s determined by the copy trading platform and you’ll need to check with them for the exact amount.
The good news is, you don’t have to worry about calculating all these because the platform will likely do it for you—so do check it out before placing a trade.
Now, there are probably other fees to consider but the spread and overnight fees make up the chunk of it.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
If you manage your risk, your profits will take care of itself.
If you don't, your parents will take care of you.
If you don't, your parents will take care of you.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
[Pullback stock trading tips]
When it comes to stock trading, it’s possible to have hundreds of stocks forming a pullback trading setup at the same time.
So the question is:
How do you know which stocks to buy and which to avoid?
Well, the secret is to focus on stocks which have increased the most in price over the last 12 months.
Why?
Because these are stocks likely to outperform the market (and it’s been proven in theory as well according to the paper Returns to Buying Winners and Selling Losers by Jegadeesh and Titman).
So, how do you apply this to your trading?
1. Rank stocks according to their rate of change (ROC) over the last 50-weeks—from the highest to the lowest
2. Look for a pullback trading setup on stocks with the highest ROC value. If there isn’t, then move to the next stock (with a lower ROC value)
3. The top 5 stocks with a valid pullback trading setup are the ones to focus on
When it comes to stock trading, it’s possible to have hundreds of stocks forming a pullback trading setup at the same time.
So the question is:
How do you know which stocks to buy and which to avoid?
Well, the secret is to focus on stocks which have increased the most in price over the last 12 months.
Why?
Because these are stocks likely to outperform the market (and it’s been proven in theory as well according to the paper Returns to Buying Winners and Selling Losers by Jegadeesh and Titman).
So, how do you apply this to your trading?
1. Rank stocks according to their rate of change (ROC) over the last 50-weeks—from the highest to the lowest
2. Look for a pullback trading setup on stocks with the highest ROC value. If there isn’t, then move to the next stock (with a lower ROC value)
3. The top 5 stocks with a valid pullback trading setup are the ones to focus on
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
No one can consistently predict the markets, call tops and bottoms.
So just follow price. Ride winners. Cut losers.
You'll be much further ahead than trying to outsmart the market.
So just follow price. Ride winners. Cut losers.
You'll be much further ahead than trying to outsmart the market.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
[Always be a student of the markets]
Here’s my learning curve as a trader:
I started with indicators, then price action trading.
And for a few years, I thought that’s all I needed because after all, the price is king and that’s all I needed to be a profitable trader.
But that hurts my growth because I tuned out everything else (and limited myself only to price action trading).
When I realized my folly, I quickly went back to being a student of the markets.
So I asked myself:
“What are other winning traders doing to profit from the markets?”
That’s when I got exposed to trend following, systems trading, mean reversion trading, etc.
By expanding my knowledge and incorporating different strategies, I was able to find more trading opportunities (most traders are blinded to).
So here's the deal...
You may (or may not) be a profitable trader but, it doesn’t mean your learning curve is over because you’re always a student of the market.
I encourage you to keep learning and exploring new strategies. Don't limit yourself to just one approach, because there's always more to discover.
Ultimately, the key is to remain open-minded and willing to try new things. It can be scary to step outside your comfort zone, but it's often the only way to achieve true growth and success.
Here’s my learning curve as a trader:
I started with indicators, then price action trading.
And for a few years, I thought that’s all I needed because after all, the price is king and that’s all I needed to be a profitable trader.
But that hurts my growth because I tuned out everything else (and limited myself only to price action trading).
When I realized my folly, I quickly went back to being a student of the markets.
So I asked myself:
“What are other winning traders doing to profit from the markets?”
That’s when I got exposed to trend following, systems trading, mean reversion trading, etc.
By expanding my knowledge and incorporating different strategies, I was able to find more trading opportunities (most traders are blinded to).
So here's the deal...
You may (or may not) be a profitable trader but, it doesn’t mean your learning curve is over because you’re always a student of the market.
I encourage you to keep learning and exploring new strategies. Don't limit yourself to just one approach, because there's always more to discover.
Ultimately, the key is to remain open-minded and willing to try new things. It can be scary to step outside your comfort zone, but it's often the only way to achieve true growth and success.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
[Follow your trading plan regardless of each trade’s outcome]
When I was a 7-year-old, my teacher would give me a “star sticker” whenever I put in the effort to do my homework, regardless of whether the answer is right or wrong.
In other words, she rewards effort, not the outcome.
If you think about it, this approach is highly suitable for trading.
You should reward yourself whenever you follow your trading plan regardless of whether the trade is a winning or a loser.
So here’s how the star system works…
Every time you follow your plan, you get 1 star
Every time you didn’t follow your plan, you get -2 stars
The goal of the star system is to accumulate 100 stars
As you can see, the focus isn’t to make profits.
Rather, it’s to accumulate as many stars as possible by being consistent with your actions.
Remember, a consistent set of actions lead to a consistent set of results.
When I was a 7-year-old, my teacher would give me a “star sticker” whenever I put in the effort to do my homework, regardless of whether the answer is right or wrong.
In other words, she rewards effort, not the outcome.
If you think about it, this approach is highly suitable for trading.
You should reward yourself whenever you follow your trading plan regardless of whether the trade is a winning or a loser.
So here’s how the star system works…
Every time you follow your plan, you get 1 star
Every time you didn’t follow your plan, you get -2 stars
The goal of the star system is to accumulate 100 stars
As you can see, the focus isn’t to make profits.
Rather, it’s to accumulate as many stars as possible by being consistent with your actions.
Remember, a consistent set of actions lead to a consistent set of results.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
Good trading isn't about how much you make.
You can make money on poor decisions and lose money on good decisions.
Instead, focus on the process.
Trade with an edge. Execute your trades consistently. And have proper risk management.
You can make money on poor decisions and lose money on good decisions.
Instead, focus on the process.
Trade with an edge. Execute your trades consistently. And have proper risk management.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
Don't take losses personally because the market has nothing against you.
It doesn’t know who you are, what you do, or why you traded.
Instead, it’s an opportunity to learn what works and what don't, so you can become a better trader—and that’s how winning is done!
It doesn’t know who you are, what you do, or why you traded.
Instead, it’s an opportunity to learn what works and what don't, so you can become a better trader—and that’s how winning is done!
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
[Be prepared for a steep learning curve before profitability]
I’m sure you can agree:
Professionals like lawyers, doctors, pilots, etc. spend 5 years (or more) to master their craft.
That’s why in the early years of their career, they typically don’t “see the money” as they are in the learning stage.
But when they get good at it, BOOM, the money starts rolling in—but, it doesn’t happen overnight.
And it’s the same for a professional trader!
You’ll take years to build your foundation, make mistakes, find your edge, and if you survive long enough, you can’t help but get good at it.
So, don’t come into trading thinking you can quit your day job after taking an online course—it doesn’t work that way.
There’s a steep learning curve ahead and you must be prepared for it.
You’ve been warned.
I’m sure you can agree:
Professionals like lawyers, doctors, pilots, etc. spend 5 years (or more) to master their craft.
That’s why in the early years of their career, they typically don’t “see the money” as they are in the learning stage.
But when they get good at it, BOOM, the money starts rolling in—but, it doesn’t happen overnight.
And it’s the same for a professional trader!
You’ll take years to build your foundation, make mistakes, find your edge, and if you survive long enough, you can’t help but get good at it.
So, don’t come into trading thinking you can quit your day job after taking an online course—it doesn’t work that way.
There’s a steep learning curve ahead and you must be prepared for it.
You’ve been warned.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
7 ways you can exit a trade:
1. Trailing stops
2. Support & resistance
3. Fibonacci extension
4. Swing high & low
5. Setup is invalidated
6. Previous candle high/low
7. Time stop
Bonus: Margin call
1. Trailing stops
2. Support & resistance
3. Fibonacci extension
4. Swing high & low
5. Setup is invalidated
6. Previous candle high/low
7. Time stop
Bonus: Margin call
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
[How to grow a small trading account (that nobody tells you)]
It’s easy to grow a small trading account.
Want to take $500 and double it within 2 days?
Want to make 50% a week?
It’s easy because all you need to do is risk a huge % of your account on each trade, and if the trade goes your way, BOOM—target achieved.
But here’s the thing…
Just because it’s easy doesn’t mean it’s feasible.
Sure, you can double your account in a few days. But, it’s also a matter of time before you give everything back to the markets, and more.
The solution?
Instead of looking for shortcuts, let time and money be on your side.
This means you’ll regularly add funds to your account and compound your returns.
It’s easy to grow a small trading account.
Want to take $500 and double it within 2 days?
Want to make 50% a week?
It’s easy because all you need to do is risk a huge % of your account on each trade, and if the trade goes your way, BOOM—target achieved.
But here’s the thing…
Just because it’s easy doesn’t mean it’s feasible.
Sure, you can double your account in a few days. But, it’s also a matter of time before you give everything back to the markets, and more.
The solution?
Instead of looking for shortcuts, let time and money be on your side.
This means you’ll regularly add funds to your account and compound your returns.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
A casino doesn't make money by predicting.
They manage their risk and let their edge play out—and it's the same for trading.
They manage their risk and let their edge play out—and it's the same for trading.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
[Be realistic and know that you won’t make money every day]
Here’s the thing:
A trading strategy seeks to exploit certain market conditions in order to profit from it.
(For example, Trend Following makes money when many markets are trending together.)
But as you know, the markets are always changing. One moment it could be trending, the next, it could be ranging.
In other words, you’ll make money when market conditions are favourable to you.
When it isn’t, your trading strategy will lose money—which explains why you won’t make money every day (as market conditions change).
Here’s the thing:
A trading strategy seeks to exploit certain market conditions in order to profit from it.
(For example, Trend Following makes money when many markets are trending together.)
But as you know, the markets are always changing. One moment it could be trending, the next, it could be ranging.
In other words, you’ll make money when market conditions are favourable to you.
When it isn’t, your trading strategy will lose money—which explains why you won’t make money every day (as market conditions change).
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
Trading one strategy with discipline beats 10 strategies without discipline.
Stay focused my friend.
Stay focused my friend.
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
Advice to new traders:
You’re not going to get rich quick
Don't hop from system to system
Have a planned exit for every trade
Limit your loss to a fraction of your capital
Your entry is only a small part of the equation
The early years are for learning, profits come later
You’re not going to get rich quick
Don't hop from system to system
Have a planned exit for every trade
Limit your loss to a fraction of your capital
Your entry is only a small part of the equation
The early years are for learning, profits come later
![Guillermo Monguia](https://c.mql5.com/avatar/2023/4/643f3bee-d2c2.png)
Guillermo Monguia
Trading will not make you rich.
At least not next week, month, or year.
But if you persevere, protect your downside, and compound your returns—you will make it.
At least not next week, month, or year.
But if you persevere, protect your downside, and compound your returns—you will make it.
: