At Vantage Point Trading you will find extensive Trading Tutorials, in-depth stock and forex analysis and educational trading articles via the Market Blog. Leave a question on any of the articles posted, and it will be responded to personally by Cory Mitchell, CMT. The goal of this site is to help those who want to trade–and are willing to put in the effort and dedication to do so–to succeed.
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More about Vantage Point Trading
Cory Mitchell, CMT began his professional trading career in 2005 as a strictly for profit trader on a proprietary trading desk. No clients, no phones, just pure trading ….a man, his wits, a computer and the market… and to this day that is what I do. Putting private (and formerly firm) capital on the line everyday, in the trenches, with the only goal being to extract a profit. If I don’t make a profit I don’t get paid. I don’t get management fees, a salary, bonuses or health benefits. My livelihood comes from being able to pull profits out of the market day after day….since 2005..and likely for the next 60 years.
After trading for about a year, I realized that I could not just pound at my buy and sell keys all day. Sometimes there just weren’t good opportunities present. So I started a group on Myspace (remember that relic?) where I posted my day trades, analysis and thoughts. This gave me something to do when there were no good opportunities. It helped others and it helped me to clarify my own views on market conditions and strategies. The group ballooned, quickly attracting a couple thousand day traders. But alas, as Myspace slowly became something akin to the current Plenty of Fish I decided to move my “journal” to my own website. And so Vantage Point Trading was born.
Starting as a forum, then gradually becoming a blog and now a full site with article archives and market stats, this site still remains at its core just my way of keeping myself disciplined to the ways that have made me successful in the markets. The fact that readers may benefit from something I say is a contingent perk – I make posts and public declarations about strategies, trades and markets to clarify them for myself. I put these things in public ink so I am more likely to stick with the trades I lay out and to give myself something to do when there is no good opportunities present.
Keep it simple!
Technical analysis provides key inputs into the positions taken. I need price confirmation to enter and exit; the reasons for why I am entering and exiting are always technical.
Chart pattern breakouts, measured moves and Fibonacci extensions are also used to establish likely points of exhaustion and capitulation. Relative strength of stocks to an index, or an ETF to another ETF, is major insight which is constantly on my radar. I only ever buy relatively strong stocks, and short relatively weak stocks. The Average True Range (ATR) indicator is also used in analysis and for context, but not for trade signals.
With Forex trading I focus on the major trends–isolating low risk trades with huge profit potential. I also implement specific day trading strategies which are designed around the tendencies of certain pairs. Trendlines, chart patterns and support are resistance are the main tools used along with average movement indicators and correlation studies.
A complex system does not mean more significant profits – as Einstein said, “Elegance is for tailors.”
Risk is always kept in control and known before the trade is entered. This is paramount for long term longevity in the markets. It is up to each individual trader to be disciplined enough to stick to the stops and risk levels they established prior to the trade. 1% of the account value is the absolute maximum every risked on a trade–usually it is much less than this.
Above all, one should focus on money management. In order of importance, money management is first, exits are second and entries are less important than the former two. This is the exact opposite of how most people view the market – they clamor to find the entry strategy that will get them in for the next big move…failing to realize that getting out with a profit and strictly controlled risk is the only thing that will lead to long term success.
An “If, then…” approach is always taken to the market; IF the market does one thing I have a have a plan for it. IF it does another, I have a plan for that too. By using an “If this happens, then I…” I am adaptable. I am open to new developments and do not get stuck on a particular idea.
Patience is the key virtue. I wait for moments where I have very little risk relative to my upside – I know quite quickly if the market will move in my favor and can exit with very small loss if needed. Every factor already discussed relies on DISCIPLINE. Without discipline failure is inevitable.
Cory Mitchell, CMT
Cory Mitchell began trading in 2005. He has a degree in business, the Chartered Market Technician (CMT) designation and is a member of the Market Technicians Association and the Canadian Society of Technical Analysts. He has been heard on radio interviews across the US, and is (or was) a regular contributor to Stock & Commodities magazine, Investopedia, DailyFX, Forbes Digital, Chart Advisor, ForexPros, The Nest, eHow Finance, Yahoo! Finance, International Business Times, Oil and Gas Investments Bulletin as well as many other financial resources.
Having traded extensively in stocks, forex, ETFs, futures, options and CFDs, Cory has worked for and with Fortune 500 companies managing and implementing trade strategies. Currently, Cory is an independent proprietary trader focusing on the futures and forex market. His day is divided between trading and writing about the financial markets. His analysis and methodologies are are available on the Market Blog.