Kam Dhadwar – Trade Execution & Trade Management

Kam Dhadwar – Trade Execution & Trade Management

Description

I am often asked what I look for in order to execute trades successfully and how can I reduce my risk.  First of all, you should understand the Market Structure as well as the potential opportunity.  A vision of the market’s future must be developed.  You need to know and understand the potential market and where it might go before you can get in. Then “You must trade in the gap between where you are and where you want to be” (A famous quote by Ari Kiev).  This foundation is the basis for building belief and confidence in your idea.-Time activity.  It is important to plan every trade and trading day.

When it comes down to doing business and getting into a trade I personally watch  Price and how its moves around my levels and areas of doing business.  I also watch volume trading on both the Ask and Bid.

Much of trading is an Art Form so, just watching and reading the information alone is not enough,  you must also FEEL IT.  Although this takes experience and patience, it can be learned.  This feels like it’s topping or bottoming. It feels like it’s hitting bids well or lifting offers well.  That”s how I get into the rhythm and the feel of the market, that’s how I get in tune.  Trading Price and Order Flow are all about building belief and confidence in a trading idea.  It is important to use your emotions while trading.  I want to be able to trade as long as the idea and execution are good.  Any doubts or doubts are my signals to exit.  If I really know what I am doing and the opportunity is that great the level of confidence I have in the trade should keep me in it,  once the confidence has gone so has the opportunity.  You can always come back in if you make a mistake.

To read order flow and trade with it for execution, as well as trade management, you must ensure that you do not just observe the order flow but also make decisions.  The order flow must be viewed in relation to market structure and opportunity.  Some traders are tempted to look at the footprints and size, and then make their decisions based solely on what they see.  While this information can be useful, it is in and of itself quite useless.  It is useless because there is always a buyer for every seller, and a seller to every buyer. This information alone has not achieved anything and it does not mean anything.  So 200 sellers hit the Bid and 200 buyers fill the Bid. They cancel each other.  It’s always Zero Sum.  Also one decent trade alone doesn’t move the market, especially a liquid market!   Its a competitive marketplace with many big players,  quite often trading against each other.

What is the point of being useful? So what is useful?

– Who is becoming more aggressive? Are sellers making more aggressive offers to buyers, or are sellers lifting buyers offers?

– What was the market able to achieve after those orders traded? If so, did those who appeared aggressive keep up their aggressive behavior? Did it dry up or is there a new reason?  Is it possible that it dried up?

– Where and at what prices is rejection occurring?  What prices are accepted? what can it possibly mean  in this context?

It is all about the right type of thinking process to get a sense for the market and understand its dynamics.  The right questions can influence your thought process.  The market will give you the correct answers if you ask the right questions.

Financial Development Course

Financial development refers to improvements in the production of information about potential investments and allocating capital. It also involves monitoring firms and exercising corporate governance. This includes trading, diversification and management of risks.