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TheRumpledOne
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Postby TheRumpledOne » Sat Jan 03, 2009 2:22 am

I would just use MT4 for charting and execute my trades with the MBT Navigator.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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TheRumpledOne
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Postby TheRumpledOne » Sat Jan 03, 2009 2:32 am

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



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Postby MightyOne » Sat Jan 03, 2009 4:00 am

prochargedmopar wrote:"knowing when to bail out when the trade doesn't go in your direction"

That's been tough for me. I'm 2 days into trading live. My practice was 9 live trades with .1 lot over a 4 day period.
2 days ago I went on a binge and traded 45 times for a total of +93 pips. 62.2% of trades in profit.
Today didn't go so well.
I switched to .2 lots ($2 pip) It's seems like I got behind the price and couldn't catch up. 15 trades from 7a-2p. 10 of 15 (66%) in profit but those five losses were a kicker. (16, 20,ect) I tried to trade just the 1H candle as TRO suggested. It made the day slow and I couldn't resist scalping a couple 1m charts for quick 2's and 4's. I was also trading 3 different currencies which he said somewhere to stick to one until your profitable.
Ended up being down -15pips on the day.
Time to regroup again. This may be simple but it ain't easy, YET.
Pro

BTW,
TRO I listed you as my IB for an MBtrading demo. I've never demoed an account but thought it might be in my best interest being some people seem to be having difficulties with their platform. I also see they are going to have MT4 available soon. Will it be any good to use with an ECN?


Whoh buddy, calm down a bit on the trading :wink:

45 trades for an average 2 pips per trade is just suicidal...suicidal!

Say to your self 'Alright, I am going to make 0.5-1 to 1 this hour and wait for the next.'

I owe my success as a long term trader to making 1 or 2 trades and then waiting for the next daily bar to open.

As a day trader you will rarely catch me making 3 trades in the same hour.

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TheRumpledOne
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Postby TheRumpledOne » Sat Jan 03, 2009 4:40 am

One or 2 trades per hour per pair.

Isn't that enough?
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby razorboy » Sat Jan 03, 2009 1:17 pm

As a relatively new trader - I am very familiar with over trading - it take some practice to start to trust your system/approach - I think you need to get burned a few times.

You also need to develop a level of patience that many neophyte traders may not associate with day trading. If you look at some of the public perceptions of day traders, you may get the sense that they are always trading in and out on of the market on every up and down.

I dealt with this by lengthening the periods I use for my indicators - the main result being that bad days are no longer devastatingly bad - pretty much break even, maybe a pip or two on the upside

Just my thoughts
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Red and Green Candles and Stop Losses

Postby razorboy » Sat Jan 03, 2009 1:35 pm

TRO

I have been using the red and green candle approach? Are you:

automatically getting out of a trade that you have just entered if the candle color goes against you (this could be trading with a 2 or 3 pip stop loss), or
are you giving it a little bit of room turn (20 pips for EUR/US), or

hedging the trade if you get conflicting signals?



TheRumpledOne wrote:
MightyOne wrote:
TheRumpledOne wrote:"These are the most common stop levels:

25-35-40-50-70-80 "

How do you KNOW that?


I don't know the exact stop level a trader is using, but I can see where price reacts after I make an assumption about where traders may have entered into the picture.

What stop loss do you use? 20-30 pips?

In my Forex mentorship by Rio Financial through Forex Wealth
the rule of thumb is 35 pips for EUR pairs and 45 pips for GBP pairs.

The traders entering on the 4H charts were using 100 pip initial stops
and 50 pip stops for trades placed every 4 hours based on HA candles.

When you consider the stop levels talked about on forums and trailing stops the above is a good rule of thumb.


OK, thanks.

Stops are natural to me since I am trading with the H1 candle color.

If I am long and the H1 candle turns red, then, (it should be obvious to the reader), I need to at least exit and possibly reverse.

If I am short and the H1 candle turns green, then, (it should be obvious to the reader), I need to at least exit and possibly reverse.

Then number of pips SL depends on how far from the open I entered.

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Postby MightyOne » Sat Jan 03, 2009 2:56 pm

PeterD wrote:
MightyOne wrote:
PeterD wrote:Hi MightyOne,

Good question regarding the starting Capital, I am planning to start with $5K in a couple a of months (hopefully)...

...$400 doesn't look like enough to me, considering that I could be losing 15x in a row at the beginning (less likely but still possible though)...


...This is just my beginning of Forex trading, I have never traded forex before...


Peter.


If you think that you can lose 15x in a row then that is all the more reason to start with $400.
I don't know what your goals are but for the majority of traders it would be some thing like getting to the $1,000 - $2,000 per pip range and making your parents yearly income in 1 day.

MBTrading has lot sizes down to 1,000 currency or 10 cents per pip so it is doubtful that you will blow up unless you didn't know what you were doing in the first place.

If you think that $400 is too little to retire on then that is simply not the case. Even a 1% gain per day will get in you to a $1,000,000 in ~3 years.

You have to ask your self weather you want to SAVE UP $5,000 again if you blow it up.

How would you feel if you lost 50% of your account and were sitting with $2,500?

The point is that when you consider that there are micro lots available and that within 1-3 years of consistent returns you are likely to reach your cap of $1,000 - $2,000 per pip then it becomes quite clear that there is no reason for any trader to start with more than $1,000.


Wow, great insight MightyOne, honestly, my financial life has been very tight right now, I am expecting if my company would give me some kind of bonus in a couple of months, without that money, then I won't have extra money to be invested, that's why I hope there would be some kind of money I am willing to lose for forex trading.

I don't even have $400 that I could afford to lose right now, so whatever figure that comes up in a couple of months is the amount I am going to put into trading.
I totally agree with you, not that I have specific goals, like you said 1% a day would probably make me really happy.

I have a question for you, I am currently experimenting to trade into bigger timeframe right now (15M), I just entered a trade for EURUSD at 1.3845, like I said I am watching 15M timeframe to prevent me from overtrading, I entered the trade from 1M chart, and of course the 1M and 5M chart have waves as different traders have different timeframes, so I saw swings of myprofit ups and downs, from +15 pips to -5 pips, I will try to hold on tight, I noticed the previous low was 1.3825.
The direction of the trade is still on my favor but now I started thinking, would this be the right way as I could probably gain more profit from the lower timeframe swings?
I am currently up +3pips with MAE of around +15pips.
By doing this I was hoping I would not miss a big move if there is any.
Please give me some insights...

Thanks,
Peter


Before TRO I was strictly a long term trader. I would make around 700 pips per week and a gain of around 9.33%.

The hardest thing for me to come to grips with is that...

Taking 15 pips and resizing your trade is vastly more profitable than holding for 100, 1000, or even 10,000 pips.

PS: I NEVER SIZE DOWN MY TRADE! SIZING DOWN COMPOUNDS LOSSES & DELAYS GROWTH.

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Postby MightyOne » Sat Jan 03, 2009 3:03 pm

TheRumpledOne wrote:One or 2 trades per hour per pair.

Isn't that enough?


If 2 trades are good then 200 is better right? :wink:

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Postby MightyOne » Sat Jan 03, 2009 3:37 pm

[align=center]
If you always know where you are going then you will always make it to where you are trying to get.[/align]

Image

[align=center] In the above picture if price moved to the "whatever" area of the prev. candle then you could look for shorts.
Or if this candle closed price would be in the "whatever" area and you could look for shorts.
Do you see how easy this is?[/align]

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Postby MightyOne » Sat Jan 03, 2009 4:19 pm


[align=center] You can use whatever time frame you want to show you the way.
You are not trading on a higher time frame you are trading with it.
[/align]


Image

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