Aliassmith Psychology 101 and other stuff

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aliassmith
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Postby aliassmith » Sat Jul 03, 2010 1:05 pm

MightyOne wrote:
aliassmith wrote:
aliassmith wrote:
MightyOne wrote:
aliassmith wrote:Correction and trade to a daily Fat Cat.


Once it all clicks you will spew money into your account like too much liquor the night before :wink: :lol:


To much liquor the night before usually makes me spew alright. :shock:

Still working on emotional issue of holding losses. Reading Phantom helps
solidify some of your concepts and the way he adds to positions.


Easier to make a lot more money when I cut my losses. I seem to be
getting a handle on that. Wierd how I can take big drawdowns and still
come out ahead. Cut out the big drawdowns guess what! :D

It is also possible to make rediculous returns when you take advantage of
your winners. Heck, if you can add into a trade and get it up to about
30:1 leverage then that is a lot of cheese.

It is just silly how cut your losses short and let your winners run comes
full circle, at least in some form.



If you are going to go that high (30 to 1) then I would start with:

5 + 5 (avrg = 50% RET)

+ 15 to 1 (40% RET)

that would be the springboard to insanity.


Thanks, I will look into that. I am always looking for the best way to build my rocket ship. It is harder on smaller timeframes but can be done.
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aliassmith
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Postby aliassmith » Sat Jul 03, 2010 1:14 pm

d4x wrote:Hi Alias,

Just reading your thread and Phantom of the pits, both are good stuff. Wondering if you could explain how you add to your position (like MO or Phantom) when your going for smaller pip totals. I can see how to do it when your targeting 75+ pips and you have some breathing room, but when only going for 30-40 pips how do you get in at multiple entry points without having a large draw down.

Thanks
D4x


Well, all I can say is it is in Phantom's and MightyOne's teachings. It is
up to the individual how to implement it. On the smaller timeframes
and swings, one needs to be prepared to build the rocket ship. The thing is
that I don't always get the opportunity to get it built. You have to be aware
of the small/and large timeframe S/R.

Most importantly you have to think quick and be nimble.

Edit: here is a pic, you have to place your orders to stay beyond the
corrections like in the example. This may mean using different lot sizes
to compensate for order position.
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MightyOne
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Postby MightyOne » Sat Jul 03, 2010 8:16 pm

I am happy when I can set an average within the first 100 pips :lol:


You can get them in on a 5 minute chart, you just have to plan ahead.

You also need to get your mind off the money and focus on making good decisions.

Catching a large move with 1/4 of your position is not what I would call missing a move (in fact 1/4 of what you want to place into the market is probably the correct position size).

Here is a chart of some of the methods you might use to get multiple orders in on a 5 minute chart:





Image

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Postby aliassmith » Sat Jul 03, 2010 10:18 pm

d4x wrote:Thanks for the reply Alias. I also trade like you (MO's stuff but on smaller time frames. Momo or range, correction, entry) and I'm just trying to figure the best way to average/scale into positions. I totally understand the concept but it's tough to get your average on the other side of strong S/R when trading smaller time frames. It ends up moving 40 pips in 15-20 min and I can't get my full position on before the move's already done. I'm trying to find a happy medium between not putting a full position on right away and then taking a larger loss if it goes against me. Or starting a trade with just a 1/4 position and have it move quickly to the tp and only ending up with a small profit because I only managed to get the small position on. But I'll keep working on it and let you know if I come up with anything.

Thanks again for your response.


1/4 position and 40 pips is nice, although I don't do positions that size.
Basically since I am "daytrading/scalping" I am looking for outcomes as
follows:

**** No large losses
**** Medium loss rarely (usually an emotional mistake)
**** Small loss often
**** Small gain often
**** Medium gain sometimes
**** Rocketship gain sometimes (double digit returns)

Smallest starting position size is 10:1 then adding 10:1 and then 10:1
again. Other times I do 20:1 and add 10:1 then maybe 5:1 which doesn't
move my average position by much and leaves a bigger cushion than
MightyOne's 1+1+2 method. Each method has its merits.

If I get on one position and the price moves towards my exit quick I am
happy even though I didn't get my rocket ship built. :)
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Postby mob » Sun Jul 04, 2010 4:02 am

alias, MO - thanks (again) for sharing your insights & methods.....

Alias - as a relative noobie I am a bit at a loss how to understand your 10:1 etc position sizing as I would view such as leverage ratios. How may I convert this notation into lots based on risk allocation in money management?

Cheers

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Postby MightyOne » Sun Jul 04, 2010 12:31 pm

mob wrote:alias, MO - thanks (again) for sharing your insights & methods.....

Alias - as a relative noobie I am a bit at a loss how to understand your 10:1 etc position sizing as I would view such as leverage ratios. How may I convert this notation into lots based on risk allocation in money management?

Cheers


Let us say that you have $1,000 and are willing to risk $45 or 4.5%

10 to 1 leverage is 10,000c which is ($1?) per pip or a total wiggle room of 45 pips.

When you increase your position size by 10 to 1 then your wiggle room = 22.5 + CushionOfProfit

aliassmith
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Postby aliassmith » Sun Jul 04, 2010 1:25 pm

MightyOne wrote:
mob wrote:alias, MO - thanks (again) for sharing your insights & methods.....

Alias - as a relative noobie I am a bit at a loss how to understand your 10:1 etc position sizing as I would view such as leverage ratios. How may I convert this notation into lots based on risk allocation in money management?

Cheers


Let us say that you have $1,000 and are willing to risk $45 or 4.5%

10 to 1 leverage is 10,000c which is ($1?) per pip or a total wiggle room of 45 pips.

When you increase your position size by 10 to 1 then your wiggle room = 22.5 + CushionOfProfit


Interesting. Wiggle room plus "cushion of profit". After I add I don't even
consider taking a loss. I figured that if I have my average correct then
price moving near my average would be an indication to bail.
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Postby MightyOne » Sun Jul 04, 2010 1:28 pm

aliassmith wrote:
MightyOne wrote:
mob wrote:alias, MO - thanks (again) for sharing your insights & methods.....

Alias - as a relative noobie I am a bit at a loss how to understand your 10:1 etc position sizing as I would view such as leverage ratios. How may I convert this notation into lots based on risk allocation in money management?

Cheers


Let us say that you have $1,000 and are willing to risk $45 or 4.5%

10 to 1 leverage is 10,000c which is ($1?) per pip or a total wiggle room of 45 pips.

When you increase your position size by 10 to 1 then your wiggle room = 22.5 + CushionOfProfit


Interesting. Wiggle room plus "cushion of profit". After I add I don't even
consider taking a loss. I figured that if I have my average correct then
price moving near my average would be an indication to bail.


I don't worry about a Wick Doll spiking my first average...

the second average is another story :wink:

aliassmith
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Postby aliassmith » Mon Jul 05, 2010 1:21 pm

d4x wrote:Thank you for the chart and replies guys definitely some food for thought and something I will take in and chew over.......... I'm going to study Mo's chart for a while and figure it out before responding, then I may only appear dumb as I stay quite rather than commenting immediately and confirming it. :) Alias your idea makes a lot of sense and I'm definitely going to start looking at things that way, small gains and small losses are the norm (Rome wasn't built in a day, just keep the losses small), then large gains will happen once in a while when opportunities present themselves to build that rocket ship. The most important thing is to protect my own capital FIRST, then go about stealing from everyone else!


Well USA Bank Holiday :cry:

I keep going back to MightyOne's poker analogy with trading.

If you read Phantom his philosophy is similar.

Know when to fold them (the Gambler)
Plan your loss (MightyOne)
If a position doesn't prove itself remove it. (Phantom)
Cut your losses short (Others)

Know when to hold'em (the Gambler)
Build your rocketship (MightyOne)
Correctly press your winners (Phantom)
Let your winners run (Others)

Signing off with these trading songs:
http://www.youtube.com/watch?v=kn481KcjvMo
http://www.youtube.com/watch?v=lMMYxSS_ ... re=related
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aliassmith
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Postby aliassmith » Tue Jul 06, 2010 2:14 pm

Scan the timeframes then M30 zline. +11%
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