1) Technical Analysis Axel trades technically, not economically. He doesn’t see economic news as significant to his trading strategy. He’s more focused on the reaction of the market to the news, rather than the news itself. “For me, the reason why something is happening is not really that important...”

This guy mastered technical analysis. "I can see where the market is likely to go." After 25+ years of trading, he discovered why most traders fail: They think they need to sacrifice profit to increase their win rate… Here’s how he increased both at the same time:🧵

2) Specificity in Simplicity After having traded with a messy chart, Axel realized that simplicity actually allows for precision. He focuses on reading price action, and understands that the market will tell him where it’s going. “I really try and understand what each candle actually tells me.”

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3) Versatile Trading Axel trades up to 5 different strategies, with most of them being momentum strategies, but also utilizing one of them for reversals. “It’s all about increasing the odds of you being right.” He focuses on versatility to increase his win rate, but makes sure to avoid sacrificing his risk/reward ratio.

4) Bank vs Retail Trading Axel notes that as a bank trader, external accountability made discipline easier. As a retail trader though, you're your own accountability—but you don’t always have to be trading, unlike bank traders. He views “sitting on your hands” as a key advantage for retail traders…

5) Managing Risk Axel warns to never over risk, although most traders constantly do this… The result? Blown accounts. “The odds of you wiping out your account are pretty great.” Over risking comes from the desire to make money quickly.

6) Journaling Through writing everything down (trade analysis), Axel realized something: When he diversified across markets, and timeframes, both his win rate and profitability went up. If he didn't journal, he never would've discovered this…

7) What is Price? The price is the difference between demand and supply, and buyers and sellers. For Axel, the price is everything—it’s his data. “I firmly believe that everything is in the price.”

8) How to Develop an Edge An edge is formed when utilizing the collection of data. How you collect the data is up to you, but the work has to be done… Not only will it allow you to capitalize on your strengths, but it’ll also clean up your weaknesses. “It prevented me from overtrading.”

9) Trading Like a Business “It has to be a properly thought through and set up way of trading.” Trading is hard—it takes a lot of effort, a well thought out plan, a strong edge, good psychology, and most traders don’t last… But if you stick to the plan, and treat it like a business, you will have the skill, and you won’t just be subject to luck.

10) Illusion from Ego Axel says that some of his best trades are the ones he’s not confident in, And some of the trades he’s really confident in don’t pan out. Our ego deceives us... “A lot of traders basically look at markets and think they see something that nobody else sees.”

Watch the full Axel Rudolph interview here👇

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