Free Resources / NEELY RIVER Explained / What makes Neely River Trading different?
What makes Neely River Trading different?
When it comes to trading, the goal is to make money.
Glenn Neely's proven approach to trading is absolutely unique.
Unlike trading techniques that focus on market predictions, Neely River Trading is a strategy, coupled with its technology, focuses on trading markets more profitably.
Briefly, here are 4 ways this trading strategy is different from nearly any other trading strategy.
1. Understanding Neely River theory. Recognize that trading is like a river.
Here's a brief summary of Glenn Neely's realization and voila inspiration, in his words:
"If you're in a boat on a river, you don't predict where the ocean is. You just observe. The river is going to take you downstream to the ocean.
Your job in that boat is to survive until you finally get to the ocean. You're going to get there as long as you don't hit rocks, go over a waterfall, run into a sandbar, or get a hole in your boat.
You just have to manage your environment in the here-and-now, and eventually you'll get to the ocean.
Neely River is about how to manage, maneuver, and survive in a real-world trading environment – not with the assumption that you know where the market is going, but by understanding what to do until it gets where it's going.
It's a completely opposite approach to the way most people deal with markets."
Read "Why is it called Neely River?" for a more comprehensive explanation and visual of Neely River theory.
Take "Neely River trading courses" to learn more about Neely River theory and its trading technology.
2. Neely River is not a forecasting technique. It is observational (logical & scientific), rather than anticipatory (emotional).
It's incredibly important to learn how to navigate market reality instead of trying to predict the future with precise market forecasts.
As Glenn Neely says, "Forecasts don't make money – effective trading techniques make money."
With Neely River you're not trying to predict what's going to happen. Your trading decisions are focused on the here-and-now. You deal with the evidence you have and decide how to maneuver and position yourself. You move stocks or options based on concepts that are more observational than anticipatory. Remember, the goal of trading is to make money, not forecast where the markets will go.
Read "The Forecasting Paradigm vs. The Trading Paradigm" to compare forecasting with trading.
Listen to Glenn Neely's interview "A paradigm shift in market trading" for an introduction to Neely River.
3. Neely River trading strategy places an emphasis on protecting your capital.
For bottom-line trading results, it's important to focus on protecting capital and reducing risk to zero as quickly as possible. Capital protection and risk management strategies are fundamental to Neely River Trading technology.
To control capital exposure and limit losses, Glenn Neely advises traders to never risk more than 1-3% of capital on any given trade, because it's extremely difficult to make up for large losses. (Keep risk at 1% if you're relatively new to trading.) This "secret" to successful trading is often overlooked – to the detriment of many traders!
"If you stay focused on managing risk and protecting your capital you will be much better off," says Mr. Neely. "You'll survive in the game much longer. And you'll have more time – and more opportunities – to catch good trends."
Listen to Glenn Neely's interview "The "secret" ingredient to successful trading" to trade for the long-term.
4. With Neely River, you learn how to observe the market, then adjust your trading style according to who's in control.
A first step to improving trading results is understanding the three types of traders:
- Trend Traders – Those who generally buy into strengths or sell into weakness.
- Top/Bottom Pickers – Those who sell into the highs and buy into the lows.
- Bargain Hunters – Those who are buying or selling near the middle. They wait for a high or low to happen, watch for a reaction, then get in on a pull-back.
Next, you must identify which of the 3 types of traders is controlling current market behavior. Now, it's absolutely critical to adjust your trading style based on who's controlling the market. Be flexible! Sticking to one trading style for every market condition is not a winning strategy.
Read "What is Neely River Trading?" to learn more about Neely River Trading technology.
Take the "Neely River trading courses" to learn Neely River theory and become a better trader.