So, ask yourself: Are your markets allies or adversaries?

Do you struggle to decipher them, or do you effortlessly grasp their signals?

If it’s feeling like hard work, then find solace in knowing that it may not be you, nor a lack in your skills – it might just be that you are yet to make ‘friends’ with a market. 

The best way to establish this connection is by studying multiple markets and taking trades until you find the markets that resonates with you. There is no shortcut to this process. 

David Bowden, the Founder of Safety in the Market, recommends that you trade a mix of assets – a stock, a commodity, an index and a currency. However, he emphasises the importance of carefully selecting the assets that align with your unique trading style, which is a process that requires time and consideration.

David recommends this diversified approach to trading for the following reasons:

1) Different markets often have different risk profiles and respond differently to economic events and market conditions. By spreading your trading across various markets, you can reduce the impact of a negative event in one market on your overall portfolio.

2) Profit Opportunities: Different markets offer various profit potential, and they may not all move in the same direction at the same time. By trading different markets, you can take advantage of trading opportunities in various asset classes, which can help you capitalise on market trends and volatility.

3) Market Conditions: Markets go through different phases and cycles, such as bull markets, bear markets, or periods of high and low volatility. By trading different types of markets, you can adapt your strategy to match the current market conditions. 

4) Diversification of Trading Strategies: Different markets require different trading strategies and techniques. Trading various markets can encourage you to develop a broader skill set and adapt to different market dynamics.

5) 24-Hour Trading: Some markets, such as the foreign exchange (forex) market, are open 24 hours a day, five days a week. By trading different markets, you can take advantage of trading opportunities in various time zones and adapt your trading schedule to your preferences.

6) Skill Development: Trading different markets can challenge you to learn about various economic factors, global events, and trading nuances. This continuous learning process can make you a more knowledgeable and adaptable trader.

When selecting a market to trade, some other essential key factors to consider are:

• • Trading Hours and Activity: Assess the market’s trading hours and peak activity times and determine if they align with your lifestyle and availability. Trading in markets that operate when you can actively participate can be more advantageous.
  • Capital Requirements: Consider the capital needed to trade the chosen market. For instance, explore whether trading contracts for difference (CFDs) might be a more suitable option compared to trading the same instrument in the futures market. If opting for CFDs, be sure to understand the margin requirements and verify if your available capital is sufficient to engage in trading.
  • Costs: Take into account the transaction costs associated with the market, including commissions, spreads, and any other fees. These can affect your overall profitability.
  • Information and Research: Access to reliable and timely information, and research resources is crucial for making informed trading decisions. Evaluate the availability of such resources in your chosen market.
  • Trading Platform: Ensure that you have access to a trading platform that is user-friendly, stable, and supports the instruments you want to trade. Your platform should also provide essential tools for technical analysis – and check if there are any additional costs to access instantaneous data on your market, or if there are any additional costs involved. 

It’s important to note that simply trading in various markets isn’t enough. Developing a routine for recording and analysing your trades is a crucial aspect of successful trading, but it can take some time to gather sufficient data so be patient and persistent. The outcome will be worth it. 

It helps you to gain a deep understanding of what is working and what isn’t in your trading strategy and the markets you choose, that way you can make informed decisions based on data and analysis rather than relying on hunches or the emotions tied to your last trade. 

It’s something we cover in much more detail in our Trading Plan Tune Up (which usually sells for $199 but for a limited time, it’s your FREE).

In our Trading Plan Tune Up we explain the reasons WHY you should have a trading plan and work through the mechanics of putting one together.

We explain what a ‘Reward to Risk Ratio’ is, show you how to calculate it on your own trades and demonstrate how many of our students achieve a 10 to 1 return on their trades.

In addition to having an effective trading plan and knowing how to calculate your Reward to Risk Ratio, we strongly recommend the advantages of maintaining meticulous record-keeping.

As David Bowden, the founder of Safety in the Market, says “Trading must be run as a business” and attributes his success in trading to the fact that he ran his trading like a business, not just a hobby.

He says that many people get into trading because they are sick of having a boss… BUT this can be their undoing. While they are being paid to attend an office or workshop, they have no trouble at all doing the basic things and meeting expectations. They can accept that there is a time frame in which to complete their jobs and that they must sign in at a certain time in the morning and meet expectations.

“When it comes to trading, however, they want no rules at all and no boss either and therefore, no routine. Anyone who starts trading without a solid plan and set routine is asking for trouble” David says.

Knowing important numbers like your Reward to Risk Ratio, Profit to Loss Ratio and Percentage of Profitable Trades can serve as a reference point to measure your progress. It’s something we cover further in our blog post – ‘The Art of Keeping Track: Recording Your Trading Results’ 

While Gann’s assertion that ‘some stocks are your friends’ may seem unconventional, his documented 91% success rate in the markets underscores the wisdom in his advice.

Well known for his complex writing style, Gann’s texts may require diligent effort to decode, but the insights within are invaluable.

David Bowden, who founded Safety in the Market back in 1989, spent years deciphering Gann’s complex works and unearthed many treasures, like this concept that some stocks are your friends. 

He created substantial personal wealth from his trading, and then set about sharing his knowledge with everyday traders back then, and that’s still our aim here at Safety in the Market today – to present relatively complex strategies in an easy to understand format to everyday traders. 

We offer a range of powerful resources, including home study courses, online coaching, events, webinars and cutting edge tools to help traders succeed.  

To get a taste of our teachings, we invite you to enrol in our ‘Trading Plan Tune Up’.

Normally priced at $199, it’s currently available for FREE for a limited time. 

If you’re looking to improve your trading results or start on the right path, our Trading Plan Tune Up may be just what you need.

You can access it here: Trading Plan Tune Up