Never Lose Again

[MightyOne]

In other words - I went long in whatever land and got lucky........

You got skillzzzzz!

[cfabian]

Finally back in track after vacations... again took me a while to read what have missing.

Mighty... on this example I guess you meant that the goal is to "go long" when m5 candle is green aiming to touch/cross the zero line, and profit from the reversal of the breackout. I'm I coorect?

Chers all

I'll work on the colors and chart size...

Do you see how I try and get "wicked" into a trade?

The last thing I want is a candle to close against me!

Mighty,
I'm extremely interested in understanding your concept. Sometimes I feel your explanations are not quite understandable, thus will appreciate if you can explain (or signal in your charts) where did you exactly enter and its direction and where did you exit?????

Thanks a lot,

Cheers

Believe it or not it is all TRO's methods mixed with years of trading experience

Consider the last picture:

1. A 5m zero line forms the top red line.

2. Prev. H1 closes and a 5m green candle forms the high wick of the next hour.

3. Price closes below the ZL (will further candles close below the ZL? Will there be a burst of momentum short soon?)

4. Red candle closes turning the H1 RED

5. A ZL guards the high from a rise and the low before the candle in "4." creates a lower ZL further guarding against a rise.

Your goal is to short at or above those red lines unless you are running out of time (based on intuition) and must just short.

I am a discretionary trader which makes it difficult to give you details.
I may do some thing one way today and do it differently tomorrow.
Or 5m ago I could do things one way and then react to some thing I see happening now and do things differently.

For the most part my trading revolves around stats, buzzard, dynamic fibs, and thirds. The other stuff like zero lines, stops, wicks, OHLC is used to find a better price for entry.

[pierre23]

I love your posts MightyOne, keep them coming, I learned a lot from you, as days went by, I think I am getting better and better at seeing your Zero Lines, they are everywhere at different timeframes.

So far I am still learning since this is my first forex trading experience, I have been able to double my account, and of course it's just a demo, not real money, I am sure it will be a different story when I trade with real money, I am sure I don't have so much guts...

So far, things I have learned:
- Get out as soon as you feel you are going the wrong direction, the less pips you loss the better.
- It's a matter of finding a good method of entry with the lowest risk and highest reward.

I don't know, it's sounds simple, but I think that's all there's to it?

I have been trying to trade with longer timeframe, less stress...

Attached is my last trade I just made with demo account, I got 80 pips.
I wish I would be able to do the same thing with my real account in the future!

Thanks again MightyOne and Avery, for making everything looks easy (trading without indicators).

Peter.

Your trade was so well done that it looks like it came from my own hands.

Just keep letting the chart talk to you and teach you how to trade.
Don't become attached to any one method of doing some thing.
Be flexible and always look for new information.


Never think about how much money is in your account;
it is just a number that lets you know when to increase your lot size and nothing more.

Hi MightyOne,

The trade that was done last night was definitely came from your ZL perspective, you opened my eyes, really,

When I look at charts, I would flip back and forth between timeframes, to see where the ZLs, as I would expect some support/resistance.
And I was always wondering if there are some crowd lurking in timeframes that I don't see? May be there are crowd that use 8-minute chart or 20-minute chart? (or whatever number that people don't normally use?).

I still need to learn how to properly manage trailing stops and lot size, any insight on these ones? (sometimes, you feel like you don't want to give back some inital profit where profitable trade turns into a loss).

Much appreciated,
Peter

The exotic time frames are used to create a chart where conditions look more favorable than the other time frames.

(EDITED TO AVOID CONFUSION)

My advise on trailing stops is NEVER USE THEM!
Try using the Minimum Move Trader's Trick...

My method for SL is to treat every pair the same based on the 5m range.

The EURUSD 5m 288 is sitting at 15.5.
The minimum stop I would use is a 1.5x or 23.2 pip stop
and the maximum stop I would use is a 2.5x or 38.7 pip stop.

A 1.5x stop is used for scalping a single candle and you have around a 75% chance of being able to mitigate your loss.

A 2.5x stop insures that over 90% of the time you will not get
wicked out of a trade and you will have room to exit at a smaller
loss and some times no loss at all.

If you started with $400 and are risking 4% or $16 a trade then
you would divide 16 by 38.7 and trade 4 micro lots. ($0.41 per pip)
If you were using a 23.2 pip stop then divide 16 by 23.2 and trade
6 micro lots ($0.68 per pip)
Continue to risk the same $16 per trade even if you lose 1 or 2 trades.
when you can add more micro lots then add them, but never reduce your trade size.

All this is made simple by using TRO DRAGON MONEY MGMT and saving your template when ever you lot size has increased.

MightyOne; so you base your stops on 2.5 x the average range of the 5min (288)?

You say doing this also gives "room to exit with a smaller loss and some times no loss at all". How is it a small/no loss if you let it run to the SL? Do you mean you get out of the trade if a candle closes on you in a negative direction? And having the 2.5x gives it room to move, in case it goes back in your direction on the same candle?

Can I ask what the "Minimum Move Trader's Trick" is too? Is this what you use for your tp?

thanks mate.

[MightyOne]

I love your posts MightyOne, keep them coming, I learned a lot from you, as days went by, I think I am getting better and better at seeing your Zero Lines, they are everywhere at different timeframes.

So far I am still learning since this is my first forex trading experience, I have been able to double my account, and of course it's just a demo, not real money, I am sure it will be a different story when I trade with real money, I am sure I don't have so much guts...

So far, things I have learned:
- Get out as soon as you feel you are going the wrong direction, the less pips you loss the better.
- It's a matter of finding a good method of entry with the lowest risk and highest reward.

I don't know, it's sounds simple, but I think that's all there's to it?

I have been trying to trade with longer timeframe, less stress...

Attached is my last trade I just made with demo account, I got 80 pips.
I wish I would be able to do the same thing with my real account in the future!

Thanks again MightyOne and Avery, for making everything looks easy (trading without indicators).

Peter.

Your trade was so well done that it looks like it came from my own hands.

Just keep letting the chart talk to you and teach you how to trade.
Don't become attached to any one method of doing some thing.
Be flexible and always look for new information.


Never think about how much money is in your account;
it is just a number that lets you know when to increase your lot size and nothing more.

Hi MightyOne,

The trade that was done last night was definitely came from your ZL perspective, you opened my eyes, really,

When I look at charts, I would flip back and forth between timeframes, to see where the ZLs, as I would expect some support/resistance.
And I was always wondering if there are some crowd lurking in timeframes that I don't see? May be there are crowd that use 8-minute chart or 20-minute chart? (or whatever number that people don't normally use?).

I still need to learn how to properly manage trailing stops and lot size, any insight on these ones? (sometimes, you feel like you don't want to give back some inital profit where profitable trade turns into a loss).

Much appreciated,
Peter

The exotic time frames are used to create a chart where conditions look more favorable than the other time frames.

(EDITED TO AVOID CONFUSION)

My advise on trailing stops is NEVER USE THEM!
Try using the Minimum Move Trader's Trick...

My method for SL is to treat every pair the same based on the 5m range.

The EURUSD 5m 288 is sitting at 15.5.
The minimum stop I would use is a 1.5x or 23.2 pip stop
and the maximum stop I would use is a 2.5x or 38.7 pip stop.

A 1.5x stop is used for scalping a single candle and you have around a 75% chance of being able to mitigate your loss.

A 2.5x stop insures that over 90% of the time you will not get
wicked out of a trade and you will have room to exit at a smaller
loss and some times no loss at all.

If you started with $400 and are risking 4% or $16 a trade then
you would divide 16 by 38.7 and trade 4 micro lots. ($0.41 per pip)
If you were using a 23.2 pip stop then divide 16 by 23.2 and trade
6 micro lots ($0.68 per pip)
Continue to risk the same $16 per trade even if you lose 1 or 2 trades.
when you can add more micro lots then add them, but never reduce your trade size.

All this is made simple by using TRO DRAGON MONEY MGMT and saving your template when ever you lot size has increased.

MightyOne; so you base your stops on 2.5 x the average range of the 5min (288)?

You say doing this also gives "room to exit with a smaller loss and some times no loss at all". How is it a small/no loss if you let it run to the SL? Do you mean you get out of the trade if a candle closes on you in a negative direction? And having the 2.5x gives it room to move, in case it goes back in your direction on the same candle?

Can I ask what the "Minimum Move Trader's Trick" is too? Is this what you use for your tp?

thanks mate.

It is a small loss because I DO NOT let price move to my SL orders.

Do I need a SL of that size?

No, it is a MAXIMUM SL calculation that is best used for targeting gains of 0.5 to 1.

If the Avrg. is 14.85 pips and price has to move at least 8 pip to reach your price then chances are you are not going to stopped when using a 14.8 pip stop.

Don't play follow the leader

Do whatever you feel comfortable doing.

[razorboy]

another "illogical" question about sl and tp's

as a new trader, it seems that having a larger stop loss than tp, seems well, stupid (keep in mind who this is coming from). - I have seen the reaction to some other "internet experts" to this idea

What is the logic/concept behind approaching a trade like this - betting on a high probability set up?

thanks

[MightyOne]

another "illogical" question about sl and tp's

as a new trader, it seems that having a larger stop loss than tp, seems well, stupid (keep in mind who this is coming from). - I have seen the reaction to some other "internet experts" to this idea

What is the logic/concept behind approaching a trade like this - betting on a high probability set up?

thanks

All my trades are high probability or why would I place the trade?

The idea is to increase my position size continually thus dwarfing my
previous losses.
If my loss in the past was 4% and I increase my account by 20% then the past loss is worth 3.2% and if I increase my account by another 20%
then the past loss is worth 2.4%.

So If I am targeting 0.5 to 1 and my account increases 50% then all past losses are 1/2 or 0.5 to 1/2 or 1 to 1.

I have a pyramiding method by which I start by risking 4% until I increase my account by 16% and then risk 8% until one loss.

It is called Forex 2x:

4% 4% 4% 4% (Forex)
8% (2x)

Think of loss as the Earth and your account as a rocket ship.
The further away the rocket ship moves from the Earth the smaller the Earth becomes (visually of course).

As a novice do no attempt Forex 2x...

The main idea is an increasing lot size that makes the past gains and losses irrelevant and places emphasis on the current trade.

[MightyOne]

Cfabian,

I use short term ZL's to enter into a trade trading AWAY from the ZL toward a ZL of a higher time frame.
In that picture you see 2 lines that I do not really draw on my own charts.
I try to enter at the price indicated by the lines or better or just short.

The ZL's are just points of reference...

[razorboy]

Much thanks.......

all of my trade set ups look good too.................at the time
quote="MightyOne"]

another "illogical" question about sl and tp's

as a new trader, it seems that having a larger stop loss than tp, seems well, stupid (keep in mind who this is coming from). - I have seen the reaction to some other "internet experts" to this idea

What is the logic/concept behind approaching a trade like this - betting on a high probability set up?

thanks

All my trades are high probability or why would I place the trade?

The idea is to increase my position size continually thus dwarfing my
previous losses.
If my loss in the past was 4% and I increase my account by 20% then the past loss is worth 3.2% and if I increase my account by another 20%
then the past loss is worth 2.4%.

So If I am targeting 0.5 to 1 and my account increases 50% then all past losses are 1/2 or 0.5 to 1/2 or 1 to 1.

I have a pyramiding method by which I start by risking 4% until I increase my account by 16% and then risk 8% until one loss.

It is called Forex 2x:

4% 4% 4% 4% (Forex)
8% (2x)

Think of loss as the Earth and your account as a rocket ship.
The further away the rocket ship moves from the Earth the smaller the Earth becomes (visually of course).

As a novice do no attempt Forex 2x...

The main idea is an increasing lot size that makes the past gains and losses irrelevant and places emphasis on the current trade.[/quote]

[MightyOne]

More 1/3 dot training:

[razorboy]

I was just thinking that as I went long at 1.3710

Came off of a 3 hour low so I went in a little early (went past an 11% retracement line) - I would say that your entry was was safer, but I am now watching price retrace

But by the time you read this, it will have probably come around again

6 of one - half dozen of another

More 1/3 dot training: