2009.06.24 WHY 95% OF TRADERS LOSE PART III

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Cyrillic
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Postby Cyrillic » Thu Jul 30, 2009 4:53 pm

They disregard everything they know, when they down a large amount of money and start to gamble instead of stopping for a day and recovering where they left of.
Chrisl.
As far as i know most of the time the program starts you off at your s/l right away, the problem is you will always end up with +1 -1 because of price movement, however you do not lose pips on mb trading (only pay commision)

I would like to thank TRO I've been learning a lot over the the past month, I have been able to produce consistent profits or make my money back using 3 sema indicators. However sometimes i get too over myself and disregard the rules thinking i know it all and that bring me down quiet a bit.

Philippe.

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StanleyCup
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Postby StanleyCup » Fri Jul 31, 2009 9:45 am

You can't say that enough about mb forex trading... I'm demoing on my 5/6th platform so far and I'm utterly sickened by how much money I've made for/ lost to my live broker just because of the spread. I think the biggest difference I've seen so far was 10 pips on one of the yen pairs that FXDD would have been glad to take were I live. Ridiculous!

Chrisl
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Postby Chrisl » Fri Jul 31, 2009 10:35 am

Hi Cyrillic...
Would you mind posting a screen shot of your MB navigator so that I can see how to set up the system that I only use limit orders.
Would be highly appreciated...
'You only see what you have learned to see,everything else is invisible'
...Mark Douglas

10pipsman
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Re: 2009.06.24 WHY 95% OF TRADERS LOSE PART III

Postby 10pipsman » Fri Jul 31, 2009 4:33 pm

TheRumpledOne wrote:

WHAT IF...

You only entered trades in one direction, kept your losses to 2% or less of your account and let the winners run?

Let's say you only enter LONG and you are trading the GBPUSD. We know from statistics the average hourly range usually exceeds 30 pips. Over the last 8000 bars the average is 47 pips.

When the hour opens we enter the trade if the price hit open + 5 pips. (Yes, the Buy Zone!). We only enter ONCE per hour.

Possible outcomes:

* the price never hits open + 5, we do not enter.

* the price hits open + 5, reverses and we stop out.

* the price runs close to or above average and we make a profit.

How many times does price take off like a rocket from the open and never drop more than a pip or 2?

Let's apply some "common sense".

We start with $1000 and only risk 2% or $20 per trade. If we trade 2 minilots, that would be a stop loss of 8 pips ( counting 2 for spread or commission ) for a total loss of $20.

If we make 22 pips on a trade, that would be $44 ($40 net) for a 4% return. Do you realize what $1000 becomes if you compound it at 4% a day?

You do realize that OVER TRADING is one of the mistakes most traders make, right? How many trades PER DAY do you need?

DO YOU SEE IT?



I am not sure if I got this correctly:

Example EU opens the hour at 1.4300

I will wait for it to hit 1.4305 and open a BUY trade. But because of the spread, my initial position is at 1.4302. So I should set my SL at 1.4295 (10pips from 1.4305).

Question, what will my TP be? +22? Why 22? because the ave range is 47?

Sorry, noob question?

Cyrillic
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Postby Cyrillic » Fri Jul 31, 2009 5:57 pm

Chrisl
Just watch the order placement video offered by mb trading they should answer your questions on how to use all types of orders on navigator to your outmost advatage.
http://www.mbtrading.com/forextutorials.aspx

Again i would like to mention that you cannot avoid the currency spread as is because it is a part of the market (buy is higher/sell is lower) you are not being charged anything extra spread only commision, you should watch the pair that you trade to see the natural spread is carries (some do carry 0.5 which is very low) It is just the way the market is, and the faster you'll understand it the better. (i do no discourage you to try other brokers but my guess is you'll find out that they are not as good as they promise to be) i suggest you read reviews of every broker you trade with (i prefer forexpeacearmy for my reviews) until you understand that an ECM like MBnavigator is a reasonably good choice. I hope i was helpful.
Philippe.

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Cyrillic
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Postby Cyrillic » Fri Jul 31, 2009 6:09 pm

Sorry for double posting
10pipsman i would suggest you look for a currency with a tighter spread like eur/gbp has .7 spread (speaking for navigator if you are using another broker this does not apply to you) so you set up your limit order to enter you at + 5 pips, once you get in you set your stop at -5 pips than you wait, for it to hit your target or take profit before hand because profit is all that matters in a quick scalp. That is the way i do it.. I hope i could be helpful to you.
Philippe.

10pipsman
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Postby 10pipsman » Sat Aug 01, 2009 12:49 am

I am not from US, but MBTrading is only accepting checks as form of deposit?

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PTG
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Postby PTG » Sat Aug 01, 2009 12:55 am

10pipsman wrote:I am not from US, but MBTrading is only accepting checks as form of deposit?


No, you can wire money to them.
This is my new signature: "new signature".

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jacal1
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Postby jacal1 » Sat Aug 01, 2009 7:02 am

since discovering DTB my results and my discipline has turned around Im doing less and making higher daily percentages.

I'm now in the process of fine tuning my use of DTB even further as I still have habits but my pip takes are getting larger went from 20pip positions to 50-70 pips on H1 2 or 3 semafore and I trade only with the main trend If position returns and does not break I put in second or third position.

I'm still amazed everytime the semofore leads the way and my squigglys' follow (sorry again TRO) but i have success now this first month has been a whopping success as an example $200 gain $16 loss almost 9/1 ratio for two trade days.

Discipline and Diligence I have and now I have DTB and these forums I hope will find success. Scratch that "I will find success"!!

As always thank you! TRO

DTB!!
The fear of Jehovah is the beginning of knowledge, wisdom and discipline...Prov 1:7

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Patch
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Postby Patch » Sat Aug 01, 2009 11:51 am

jacal1

Congratulations. It sure is exciting and encouraging to hear about the differences and changes that are taking place in your trading and discipline. Could you begin taking screen shots and posting your daily trades here for everyone?

Trust the Semafors !!!
Patch

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