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MightyOne
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Postby MightyOne » Mon Sep 17, 2012 4:03 pm

PebbleTrader wrote:...Dollars = Debt = Slavery...


yeah, I'm feeling enslaved ;)

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Braathen
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Postby Braathen » Mon Sep 17, 2012 4:13 pm

When i enter with space and dont add or shedd.. it becomes pretty useless no? :D lol...

I enter with 6 lots at XXXX and price moves in my favour to XXXX.
I wish to increase my position by 2 lots.

I do so after witch i move my fibo 8 lot line to the price.
Then price proceeds to go against me....

I quickly asses the situation and shed the 2 lots at a small lose and move
my fibo 6 lot line to the price.

And if i kept in.. and kept shedding.. at some stage.. i would only
have 1 lot left and price would have to go to the 00 to kill me?

Or ofcourse i could be adding along and then start shedding at
at a large body expecting a pull back but still staying in with
min. 4 lots.
"Trading is the ability to see & to plan & to act; it is not crystal balls, precision entries, and ego stroking."
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PebbleTrader
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Postby PebbleTrader » Mon Sep 17, 2012 4:20 pm

It depends where you are at on the chart, shedding lots may not make sense in some cases.

You do have to give them credit, it's a pretty brilliant / clever form of enslavement...
Life is just a journey

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MightyOne
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Postby MightyOne » Mon Sep 17, 2012 4:41 pm

The most important reason to shed lots is to prevent impact into 00 with a large position size:

Image


Maybe you brought your position down off of the weekly+ extreme to a technical level, on your trade chart, in an attempt to enter with a larger initial lot size; in this case, you would shed lots to move 00 back to the weekly+ extreme.

What you are trying to do is build lots up while keeping your position long term.

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Braathen
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Postby Braathen » Mon Sep 17, 2012 4:47 pm

For me it makes perfect sense to shed if price is coming back at you :D

You can always add back in if it goes in your favour again.

I also feel it makes perfect sense to add when going in your favour,
not adding to the actual space size but kinda locking profits because you will start shedding when it goes against you.
"Trading is the ability to see & to plan & to act; it is not crystal balls, precision entries, and ego stroking."
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Postby MightyOne » Mon Sep 17, 2012 5:05 pm

Accumulation is the name of the game, not shedding lots.

Plan the escape routes but focus on the attack.

Here is how you accumulate during a range while keeping your position locked on 00:

You liquidate at the 04 price and you increase your position by 25-50% at
the 05 or 06 lot lines.
Notice that your position does not change because you are exchanging space for lots.

Image

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Braathen
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Postby Braathen » Mon Sep 17, 2012 5:27 pm

You said to not hesitate to add to your position when it goes in your favour.
Dont you move the fibo when you do this? Like when folding your space
and keeping intial risk.

Later to unfold for the longer term, adding on a retrace and
then looking to fold again?
"Trading is the ability to see & to plan & to act; it is not crystal balls, precision entries, and ego stroking."
MO-

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Postby MightyOne » Mon Sep 17, 2012 6:12 pm

Yes, when you add lots without first liquidating then 00 moves closer to the current price.
You should not hesitate to move your position down off of the extreme to an 80%+ ret.

There are other more advanced moves as the one shown above:

Lets say that I go long 6 lots and take profit at x.

X now = the 04 line and at the 06 line I increase my lot size by 50% because (6/4) = +50%.

Act1: Liquidate 6 @ 04
Act2: reenter for 9 @ 06
Act3: Liquidate 9 @ 04
Act4: reenter for 13 @ 06
Act5: shed 7 @ 04 (+216% more space)

Price hasn't moved anywhere and I have doubled the space of the initial lot size. Even if I liquidate at the current swing low I will have more space than I started with.

1. The lesson to be learned here is that risk stays the same whether you are trading 4 or 12 lots.
2. Accumulation protects your position because the more lots you have the greater you can multiply remaining space.
3. Creative solutions to eliminate risk and maximize profit should replace predictions.

The only thing that is 'real' is potential (price will move 100 or 100's of pips from one long term extreme or the other)

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Braathen
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Postby Braathen » Wed Sep 19, 2012 8:11 am

Ok so i have taken some time to think about this
and what im seeing is the ability to accumulate lots
is more important than predicting the expansion.

So if im right my acumulation of lots will make my gains
seen from the heavens (hehe) and if im wrong i wont be losing
much if anything.

My biggest mental issue with this is if i liquidate i feel i then
will be left sitting waiting for a pullback like last thursday/friday
where price just blew straight up nearlly.

Sorry i have nothing better to say lol :D

I will keep thinking of a better answer.
"Trading is the ability to see & to plan & to act; it is not crystal balls, precision entries, and ego stroking."
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PebbleTrader
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Postby PebbleTrader » Wed Sep 19, 2012 10:01 am

Maybe waiting is a good thing.

Enjoy life while waiting for the market "traffic lights" to mostly turn green.

The greatest lesson of all in relation to money is not real is that it should not rule your life.

Trade as little as possible but make as much as possible when you are trading.
Life is just a journey

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