70% Account Drawdawn.

If you don't know where to start, start here! Don't be afraid to ask questions.

Moderator: moderators

aliassmith
rank: 1000+ posts
rank: 1000+ posts
Posts: 1667
Joined: Tue Jul 28, 2009 9:50 pm
Reputation: 21
Gender: Male

Postby aliassmith » Sun Nov 28, 2010 4:12 pm

MightyOne wrote:Risk 1.8% per trade and lose no more than 1.8% per week.

Spread the risk percent over 9-18 pips so long as you do not start with fewer than 3 lots.

Learn how to shed lots instead of letting price tag your stop.

Trade the pairs that most often give you the opportunity to exit for a small loss instead of spiking your stop if you are wrong.

Learn how to resize your trade after a loss to restore your pincushion and fight for every cent of your money.

Learn how to exchange profit for position size to increase your profits.

More risk is just more risk, but more profit is more profit.

Taking a risk after taking a risk is a downward spiral, but working with what you have is the path to great heights.

Luke 16:10-11


"Learn how to shed lots instead of letting price tag your stop."

I like it. :wink: I'll keep that in mind.
Trade Your Way as Long as It Makes Money!

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
genlogins
rank: 150+ posts
rank: 150+ posts
Posts: 153
Joined: Wed Jun 23, 2010 3:39 pm
Reputation: 0
Gender: None specified

Postby genlogins » Tue Nov 30, 2010 9:34 am

Well,

I have blown the 4% I took all last week to grow the account in just 1 day.

Please read the NLA to find out.

http://kreslik.com/forums/viewtopic.php?p=49507#49507


I am now reading the book of Trading in the Zone, just started and it is a good start.

I now have more time to dedicate to the Forex trading, but yesterday my emotions where hidden and high.

Today I am better, but I don't take the idea that I could get in a use a better Manual SL position, also I had today a +10 pips when I could take +50.

I not very bothered with it, but you must agree that no matter how good you control your emotions, something like that really affects you.

I know that the money that I put for trading is almost lost, and I will only put more money when I grow the account. Now with no job, I prefer to spend on food. Well at least I don;t have a family to worry about.
================================================

The Way To Money Is Using Simplicity And Take Small Loses

================================================

User avatar
eudamonia
rank: 500+ posts
rank: 500+ posts
Posts: 536
Joined: Thu Jun 15, 2006 9:50 pm
Reputation: 0
Location: Rocklin, CA
Real name: Edward Heming
Gender: Male
Contact:

Postby eudamonia » Tue Nov 30, 2010 6:47 pm

When you take risks you can't afford it is inevitable that you will experience emotions of guilt, fear, and self-betrayal.

These emotions are not your enemy or something to be avoided. They are trying to provide you with useful information. Will you listen?

When you trade within your risk tolerance and listen to your emotions (not shut them away) you will not experience these feelings in a way that is overwhelming.

The fear never goes away. But if you treat fear as an old friend, to be respected and listened to but never controlled by, you will no longer be at war with yourself.

Edward
Eudaimonia (pron.: you-die-moan-e-a) (Greek: εὐδαιμονία) is a classical Greek word commonly translated as 'happiness'. The less subjective "human flourishing" is often preferred as a translation.

User avatar
TheRumpledOne
rank: 10000+ posts
rank: 10000+ posts
Posts: 11396
Joined: Sun May 14, 2006 9:31 pm
Reputation: 45
Location: Oregon
Real name: Avery T. Horton, Jr.
Gender: None specified
Contact:

Postby TheRumpledOne » Tue Nov 30, 2010 6:54 pm

IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

User avatar
es/pip
rank: 1000+ posts
rank: 1000+ posts
Posts: 2898
Joined: Wed Jan 21, 2009 9:28 pm
Reputation: 0
Gender: None specified

Postby es/pip » Tue Nov 30, 2010 7:11 pm

eudamonia wrote:When you take risks you can't afford it is inevitable that you will experience emotions of guilt, fear, and self-betrayal.

These emotions are not your enemy or something to be avoided. They are trying to provide you with useful information. Will you listen?

When you trade within your risk tolerance and listen to your emotions (not shut them away) you will not experience these feelings in a way that is overwhelming.

The fear never goes away. But if you treat fear as an old friend, to be respected and listened to but never controlled by, you will no longer be at war with yourself.

Edward


that above





people do not want to listen

they want to jump in and make 50 million dollars

if you do not start at a level that has no bearing on your account and work your way up odds are you will never make it.

trade at 1 cent a pip until you make money for two weeks straight

then go to 5 cents ..........

50..............

1 dollar a pip ................

etc etc

if you cant make money at 1 cent a pip what makes you think you can at 1 dollar 5 10 50 2k per pip ?

you have to build your emotional foundation before you can believe and in return do
Bend over and assume the position for another 4 years of hope and change.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
adaseb
rank: 500+ posts
rank: 500+ posts
Posts: 871
Joined: Fri Aug 21, 2009 5:20 am
Reputation: 0
Gender: None specified

Postby adaseb » Wed Dec 01, 2010 3:09 am

Here is what I do.

Turn off the P&L in your trading platform. Make it only show the pips amount and not the dollar amount.

If you are trading $1/ pip, and you are up 5 pips, make it show +5 pip profit and not $5.

And start trading low at like 1c/pip and then move your way up.

Emotionally whatever amount you trade it won't matter because you are not looking how much money you made instead how much pips you made.

That way when you progress trading higher lots such as $100/pip, it will feel no different from trading $0.01/pip.

User avatar
adaseb
rank: 500+ posts
rank: 500+ posts
Posts: 871
Joined: Fri Aug 21, 2009 5:20 am
Reputation: 0
Gender: None specified

Postby adaseb » Wed Dec 01, 2010 3:19 am

You got to understand that Forex trading provides a nice low risk learning curve compared to other instruments.

In stocks you could trade 1 share but commissions are high.

In futures the minimum lot is roughly around $10/tick and there are also commissions.

In stock options .... i won't even go there.

So with a forex broker where you can trade at $0.0001/pip, you can go all crazy and trade like a mad man before you run out of money.

So use it to your advantage.

User avatar
genlogins
rank: 150+ posts
rank: 150+ posts
Posts: 153
Joined: Wed Jun 23, 2010 3:39 pm
Reputation: 0
Gender: None specified

Postby genlogins » Wed Dec 01, 2010 9:44 am

Funny you mention that Adaseb, as last week I was counting pips, my aim is about 10 pips or more a day, with only 3 trades max.

On monday I blow the 4% I made during the hole last week, but the last 2 days I just start to get back into the pips.
================================================



The Way To Money Is Using Simplicity And Take Small Loses



================================================

User avatar
adaseb
rank: 500+ posts
rank: 500+ posts
Posts: 871
Joined: Fri Aug 21, 2009 5:20 am
Reputation: 0
Gender: None specified

Postby adaseb » Wed Dec 01, 2010 2:08 pm

I read this on another trading forum and I am posting it here because I read the entire post and agree with every word he said.

If you pay attention to what is said in the post you will cut alot of hours off your learning curve.

It was posted by FBJS from BMT forum.


Unfortunately, there is a lot of bad advice out there, and lots of people who sound knowledgeable actually have no idea what they are talking about. It's no wonder that newbies get fooled all the time.

If you want to learn to trade, especially daytrading, you should realize that it's probably going to take you at least a few thousand hours to have any shot at it. You just have to stare at the market for a very long time, observe what it is doing, and figure out your own way to take advantage of it. The main reason 95% lose is because they don't put in the effort - they study the market for a few weeks, buy some course from a guy who claims to give them a trading system, and then put real money on the line. Needless to say, they get slaughtered, mostly because they don't have any real understanding of what is going on. You can't just follow a system without understanding market action and how your system works within it, because when real money is on the line and the pressure is on, you will crack. The only solution to this is hard work - lots of it.

If you are really serious about this, plan for and expect to put in at least a few thousand hours of time (2000 hours is 1 full year of work at 8 hours per day, 50 weeks per year)... and that's BEFORE you try trading with real money. Just observe, and/or trade on a sim until you are really, really good. How do you know when you are really good? When you stop asking questions on trading forums, and start answering them from a place of knowledge - and not until then. If you trade one penny of real money before you do that, you will not be successful.

If you don't want to do that and prefer to try the easy way, no problems - there are tons of "educators" out there willing to tell you how easy trading is and how they can teach you, if all you will do is pay them the low, low price of $500 per month, or $5000 for their trading system. I've seen a lot of these people present their "market knowledge", and let me tell you, most of them absolutely SUCK. So if you try to take the easy way out, all the sharks in the pool will simply be thanking you for your money. Good luck in your efforts, but remember that luck actually has very little to do with it - hard work and time will get you where you want to go, and nothing else... if you stick to it for long enough, you may make it.


Yes, it really is too bad that there are so many scammers out there. I actually attended a webinar a while back for the hell of it, and I couldn't believe what the guy was doing. He was selling this amazing "system", which he claimed that if you followed it would consistently return 100 pips per day. He claimed that a whole bunch of new traders had just started using his system, and that this one guy who had never traded before 3 weeks ago was now pulling thousands of dollars every day consistently. Because I have experience in trading, I KNEW for an absolute fact that this guy was lying through his teeth, and that the people giving testimonials were absolutely fake, i.e. paid shills. Unfortunately, this guy sounded absolutely confident, secure and knowledgeable in what he was saying, and it was easy to see how tons of less experienced traders would fall for his complete BS. (Sure enough, I went to Google afterwards and did a search on his name with the word "scam", and a bunch of results popped up. )

You have to use your brain here: if someone had a system that was consistently pulling out 100 pips a day, why would he selling it to you for $2000? 100 pips a day could net you hundreds of thousands of dollars every day on a liquid instrument, so why would anyone in their right mind sell that type of thing to their competition? He could make a lot more money just trading it himself instead of selling it to you.

The wonderful thing about the markets from the point of view of a scam artist, is that it's almost impossible to prove that they are scamming you... most regulators and law enforcement officials don't know nearly enough about how the markets work to actually prove an outright scam... and tons of newbies fall for it. Here is my advice: never, ever, EVER buy a system from some guy hawking it for a few thousand dollars. It almost certainly won't work, and even if it did, it's not your system, which means that you won't trust it and won't be able to execute it properly.

There really are no shortcuts, but I can tell you that after a few thousand hours of staring at the market, you can eventually begin to "get it". A funny thing happened to me when I hit the few thousand hour mark, and a whole bunch of stuff that was previously confusing about market movement all of a sudden started to make sense at that point. Just keep track of how your own understanding is progressing.... don't rely on other traders, and take every piece of advice with a huge grain of salt, because it very well might be wrong. Keep staring at the market with a fresh set of eyes (yours), and see what you can learn from it, because that is where all true knowledge will come from. Other traders and books can teach you certain techniques (market profile, VSA, whatever), but only you can combine them into something that is tradable by you, and makes sense to you.

In general, you should be feeling yourself getting more and more confident in reading the market as every month goes by... so if that is not happening after 6-12 months, it might be an indication that you should actually quit, because not everyone makes it. On the other hand, if you feel yourself making progress, then keep working at it, because at one point you will start to "get it", and from there it will all be a lot easier. Also, don't try to trade real money while you are doing this - you will not be able to really observe the market properly if you are in the middle of a trade and concentrating on not losing your shirt. All that you will do by trading with real money too early is cause yourself psychological damage which will have to be repaired later, not to mention reduce your available trading capital which will be needed once you do actually "get it". You might as well put in those thousands of hours for free, instead of paying the market some tuition on top of it. That's the best advice I can give you
...

User avatar
Shinobi-X
rank: 50+ posts
rank: 50+ posts
Posts: 95
Joined: Mon May 18, 2009 2:38 am
Reputation: 0
Location: SOHO
Gender: Male

Postby Shinobi-X » Fri Dec 03, 2010 2:25 am

2,000 hours of screen time is probably enough for fast learners. the best analogy is...
if you took 4 years to complete college to get you your current income (or whatever educational background) and live comfortably off it it is absurd to think that you can master forex trading in 12 months.

regarding candlestick though... i don't completely agree that you should spend thousands of hours just to watch candlestick. trade hard trade smart or in this case study hard study smart. go to m1 (one minute) TF and watch them for hours. the movement is the same with the higher TF. in H1 you will find volatile, quiet and trending market. in m1, the volatile & trending market will almost always happen during tokyo/london lapse and 2 hours after that and london/ny lapse and 2 hours after that and also near/after major news release. the quiet market most likely starts 2 hours after tokyo open and after london close. whatever happens on h1 also happens on m1. you just need to observe them. this is how you can learn quicker. imagine spending 2,000 hours watching m1 chart :)

the greatest part of the post above (adaseb's post) is the last paragraph..."not everyone can trade forex".


Have a great weekend guys/gals :)
The gap between reality and dream is called action.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


Return to “beginners forum”