US Dollar Continued Strength

Welcome to my weekly snapshot of information that I hope will help in your journey as a systematic, rules based, trader!

In todays issue:

  • Trading Quote
  • Trading Strategy Tips
  • Recommended Trading Books
  • Whats on our Watchlist
  • Trading Humour

Trading Quote 

"The trend is your friend, until the end, when it bends." - Ed Seykota

Ed is a famous trend following futures trader who shared his wisdom with other traders in many different ways.  If you haven't seen his YouTube video for the "Whipsaw Song" you should watch it as it basically lays out all the requirements of a successful Trading Strategy in a catchy banjo song.  In this trading quote Ed is suggesting that the key to successful trading is to find a strong trending market and stay in the trade as long as you can.  To do this your Trading Strategy should include a rule that clearly states how you will exit a profitable trade.  The goal is to stay in the trend as long as possible while at the same time not giving back too much of your profits.

Trading Strategy Quick Tips

  • Stay Disciplined and Stay Profitable - Emotional discipline is key. Avoid impulsive trades by sticking to your plan and managing your emotions when markets get volatile.
  • Diversify Your Portfolio - Don't put all your eggs in one basket. Diversify your investment portfolio across different asset classes to spread risk and optimize returns.
  • Continuous Learning for Success - Stay profitable in trading by continuously learning and adapting to changing market conditions. Knowledge is your competitive edge.

For more Trading strategy tips be sure to review our tutorial on Building a Systematic Trading Strategy.

Recommended Trading Books

Trade your way to financial freedom

Market Wizards - Interviews with Top Traders Ask any successful trader what their favourite trading books are and they will inevitably put Jack Schwager's Market Wizard series at the top of the list.  This is the first book in the series and includes interview with trading legends such as Richard Dennis, Paul Tudor Jones and Ed Seykota.

Whats on our Watchlist

Your Trading Strategy should include a daily scan to find the strongest trending markets.  Every day after the market closes as part of my trading strategy I scan my trading portfolio of approximately 50 markets to identify the ones that are showing strength and should be added to my watchlist. The strongest trending markets are highlighted in the table below.  How does this compare to the markets on your watchlist?

There has been considerable change in the strongest markets over the past week.  Energy dominated last week with only Uranium continuing to show strength this week.  The US dollar continues to defy logic and is one of the strongest markets this year. 2023 continues to be a challenging year to trade with very few prolonged trending markets.

Trading Humour

Please let me know what you think.  What did you find most useful? What would you want more or less of? If you find this information useful please share with fellow traders.

Trade Smarter....Trader Better!
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