Dario Mofardin emphasizes the importance of holistic analysis, incorporating intermarket analysis, trend channels, and other momentum indicators to confirm trade setups.
Dario Mofardin highlights the importance of identifying trend exhaustion and looking for turning points in the market.
Dario Mofardin utilizes risk management strategies such as staggering entry orders, taking profits at predetermined targets, and using a trading checklist to analyze macro factors, entry and exit points, and correlated markets.
Deep dives
Using Elliot Wave Theory to Identify Market Trends
Dario Mafardin discusses how he uses Elliot Wave theory to identify market trends. He starts with a top-down macro approach, analyzing global capital flows and market behaviors. Elliot Wave helps him identify motive waves and corrective waves, giving him insight into the trend direction and potential turning points. He uses Fibonacci relationships and other technical indicators to establish entry and exit points. Dario also emphasizes the importance of holistic analysis, incorporating intermarket analysis, trend channels, and other momentum indicators to confirm trade setups.
The Transition from Short-Term Trading to Swing Trading
Dario Mafardin explains his transition from short-term trading to swing trading. He realized that short-term trading distracted him from bigger picture money-making opportunities. He now focuses on swing trading and position trades, waiting for high-probability setups and strong conviction trades. He leverages his edge by adding to positions as the market confirms the move. Dario highlights the importance of identifying trend exhaustion and looking for turning points in the market.
Risk Management and Trade Execution Strategies
Dario Mafardin shares his risk management and trade execution strategies. He staggers entry orders to minimize the chance of missing a trade and adds to positions as the market confirms the move. He takes 75% of his profits at predetermined targets using Elliot Wave rules and Fibonacci extensions. He exits the remaining 25% of the position based on clear reversals or changes in trend. Dario uses a trading checklist to analyze macro factors, entry and exit points, and correlated markets.
The Importance of Self-Analysis and Journaling in Trading
Dario Mafardin highlights the importance of self-analysis, mental preparation, and journaling in trading. He starts the day with meditation to ensure he is in the right frame of mind. He journals his trades, updates a trading spreadsheet, and documents his daily debrief. Dario stresses the value of self-reflection, tracking decisions, and learning from past trades to improve performance.
Finding Resources for Elliot Wave Analysis and Intermarket Analysis
Dario Mafardin recommends studying Elliot Wave theory and its application in trading. He suggests reading 'The Elliot Wave Principle' by Frost and Prechter as a fundamental resource. Dario also highlights John Murphy's work on intermarket analysis, which helps identify correlations and confirmations between different markets and assets.
For this episode I spoke with fund manager, Dario Mofardin.
Dario went from a finance degree, straight into a market analyst and then trader position at a private global macro hedge fund, during the early 90’s. He then went into investment banking for 13 years, working with mergers and acquisitions from various locations around the globe. And since 2008, Dario has been trading independently, but has recently begun trading external funds also.
Some of the key points we chat about during this episode include; seeing the whole board as a global macro trader, how to build a body of evidence, why Dario went from short-term trading to higher timeframes, plus trade management and checklists too.
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