Aliassmith Psychology 101 and other stuff

free & uncensored discussion arena for TheRumpledOne

Moderator: moderators

d4x
rank: <50 posts
rank: <50 posts
Posts: 3
Joined: Fri Jul 02, 2010 8:01 pm
Reputation: 0
Gender: None specified

Postby d4x » Sat Jul 03, 2010 6:50 pm

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.

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

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5250
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 46
Gender: Male

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

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

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. :)
Trade Your Way as Long as It Makes Money!

mob
rank: <50 posts
rank: <50 posts
Posts: 35
Joined: Wed Apr 14, 2010 4:57 am
Reputation: 0
Gender: Male

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

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5250
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 46
Gender: Male

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

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

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

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.
Trade Your Way as Long as It Makes Money!

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5250
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 46
Gender: Male

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:

d4x
rank: <50 posts
rank: <50 posts
Posts: 3
Joined: Fri Jul 02, 2010 8:01 pm
Reputation: 0
Gender: None specified

Postby d4x » Sun Jul 04, 2010 11:38 pm

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!

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

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
Trade Your Way as Long as It Makes Money!

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

Postby aliassmith » Tue Jul 06, 2010 2:14 pm

Scan the timeframes then M30 zline. +11%
Attachments
aliasjuly6.gif
aliasjuly6.gif (16.92 KiB) Viewed 1115 times
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.


Return to “TheRumpledOne”