The Middle Third

By: Bill Poulos of Profits Run

Today, I'm going to share one of the best 'mind shifts' I've ever discovered when it comes to trading the markets.

Now, let’s look at going after profits in the middle one-third of a trend. So take a look at this chart where I’ve zoomed in on a nice uptrend.

Now here’s what most people think you have to do to create wealth trading the markets. They think you have to buy at the very bottom of a trend as seen here, and then sell at the very top. Anything less than that is perceived as a failure.

Well, one of the greatest traders of the 20th Century, Bernard Baruch, who was a multi-millionaire and who also went on to become a presidential advisor, had this to say about trying to capture the entire trend. He said:

"Don’t try to buy at the bottom and sell at the top. It can’t be done, except by liars. I can’t help making money. I just wait for the market to bottom. Then I buy on the way up, and then I sell before the top. I'm satisfied with the middle one-third of the move."

Now this is a very, very profound concept, and I want to emphasize this again. Baruch said, "I just wait for the market to bottom, and buy on the way up. Then I sell before the top. I’m satisfied with the middle one-third of the move."

That’s the secret: the middle one-third. If that doesn’t make sense to you, here’s another way to look at it. Babe Ruth, Hank Aaron, and Barry Bonds are all masters of the middle one-third. They understood that all you need to do to hit the most homeruns, over time, is to hit the ball one out of every three times you step up to the plate.

What do you think would have happened if Babe Ruth had given up early in his career because he didn’t hit the ball 100% of the time? Of course, we wouldn’t be talking about him right now.

Just like Bernard Baruch and just like many of the rich, all three of these homerun kings were satisfied with the middle one-third. So let's look at what Baruch was talking about in a little more detail, so you can implement this concept yourself.

This is the same chart we just saw, but applying Baruch’s philosophy to it. This is what the middle one-third looks like. Now, you might be thinking: "Well, what about the rest of the move? I'd be paying too much if I miss the bottom or I'd be selling too low if I miss the top."

Well, that’s how the middle class thinks. They think you need to capture it all, but some of the wealthiest people on the planet, like Baruch, figured out long ago that the middle one-third of a trend is much easier to take advantage of.

All you need to do is wait for a trend to develop, hop on board, and then sell before it ends. Now, in practice, what we actually end up doing is selling a few days after a trend peaks, and that’s why the sell arrow points to the spot on the other side of the trend.

Do you see how that works? It's easy and it's what the rich do every day to keep and grow their wealth.

This is just one of 4 steps to achieving market mastery that I teach on my new training website for free. To learn the other 3, click here...

Simplifying Complicated Charts

On the Trader's Blog you've heard us talk plenty about how to simplify your trading. As a matter of fact, you've heard Adam preach about keeping it simple over the years. Today we've asked Bill Poulos from Profit's Run to share with us how he keeps his trading method simple by using a simple indicator that we could all benefit from. To find out more about Bill Poulos visit his website here.

One of the problems that many traders run into is trying to find the perfect combination of indicators that will lead them to the perfect trading method.  Not only is this a problem for new traders but we find that many experienced traders continue to over complicate their charts with too many indicators.  They often think that the more indicators they can get on the chart the more successful they will be.     This is usually not the case and only leads to more confusion on the part of our entries. The concept of keeping things simple works especially well when applying it to our trading strategies.  The key for many trading methods is to simply know the trend of the pair and then know when to buy or sell that pair.

Continue reading "Simplifying Complicated Charts"

How To Enter & Exit Forex Trades in 60 Seconds or Less

Protecting profits while limiting risk is key, but how safe too safe? The goal is to turn a profit without giving it all away in pullbacks and commission fees. Today Bill Poulos, of the renowned mentoring service Profits Run, will show us how he quickly enters trades with limited risk, and yet still profits from big moves. Be sure to comment with your thoughts and check out Bill's new service,  Forex Profit Multiplier.
When it comes to Forex, most traders focus on where and when to enter the trade, and pay little attention on when to get out.

This is a big mistake. Continue reading "How To Enter & Exit Forex Trades in 60 Seconds or Less"

How Coaching Solves Real Traders' Problems

Earlier this week we got a great response from our members to Bill Poulos' Guest Blog post on his "Free Trade Strategy". So well, that he got a number of emails asking some pretty heavy questions regarding coaching after they attended his webinar. He emailed me and asked if he could answer some questions and teach a bit more and here he is. As always, comment below and check out the replay of his webinar right here.


Hi everybody, this is Bill Poulos and I want to thank you for reading last week’s entry on my Free Trade Strategy and it’s importance in eliminating risk in any trade, especially in the forex markets.

Today, I’m going to talk about three things: two problems most traders face in trading (and access to simple fixes for these problems) and the new era of coaching in the trading education market. Continue reading "How Coaching Solves Real Traders' Problems"

The Free Trade Strategy

Trader's Blog would like to welcome back Bill Poulos from Whenever I ask Bill to come and teach, he always delivers. This time is no different with his article on the free trade strategy. Please take time today to read the article, comment below, and also if you'd like to learn more from Bill check out his “Forex Smart Start Profit Strategies Session” webinar here.

Trading the Forex markets is risky business, make no mistake about it.  As a trader, if you do not pay attention to risk first and foremost, you will lose, plain and simple.  There are at least two key aspects to managing risk.  One is the placement of stops and the management of the trade as it unfolds, and the other is the position size of the trade relative to the trader's account size.  If either one of those is not handled properly, the trader will lose in the end.

The good news is that both can be managed to the trader’s advantage resulting in minimizing losses and providing the opportunity for great profits.

Continue reading "The Free Trade Strategy"