Never Lose Again

[mgs1f]

Just promise Me you Guys will get Vacinated so you will not get Swine Flu in Cabo. You guys have been the greatest help to Me in Forex and Commodity trading so I need you around for a long time.

YL: Yearly Low
YH: Yearly High
(B): Before
(A): After

Before/After WHAT??

The %Wins Needed in the Risk/Reward is the percentage you need to BREAK EVEN. It has nothing to do with LOSS RATE.

MightyOne: I sure hope you come to Cabo so we can sit down and get some of this stuff figured out.

[TheRumpledOne]

Thanks MO,

Now, what do the 126%, 60%, etc.. represent on your chart?

[MightyOne]

Thanks MO,

Now, what do the 126%, 60%, etc.. represent on your chart?

Nothing, they are just possible gains from daily highs/lows.

After you consider the possibilities it is up to you weather you are going to trade for 2-5, 20, or 40%+

[TheRumpledOne]

Plan the Trade, Trade the Plan
Stockscores.com Perspectives for the week ending April 25, 2009


Trading decisions are often made in the blink of an eye, the result of a sometimes emotional thought process. Maybe you want to find a stock that will go up to pay for the loss you just suffered on a previous trade or you enter a trade because you are tired of watching it go up without you. These impulse decisions often lead to losses and show why it is important to have a well thought out plan when making a trade.

Planning your trades means you will likely trade less, leaving many marginal opportunities for those that have the best profit potential. When you make a plan you establish a series of criteria for entering and holding a position. You write down those criteria and check to see how your stock is trading relative to your plan. If it is behaving the way you expect then you have understood the stock correctly. If not, it may be better to get out of the position.

The best trades are those that you have the most confidence in. Confidence comes from being proven right, from having the market live up to your expectations. You are probably not too sure of whether you are right or not if you find yourself monitoring your positions every possible moment.

A key to having a good trading plan is to have a good method. You need a good method for entering a stock and managing risk. You need a good method for exiting a stock. You need a good method for managing your emotions through the process. Once you have a method that works and is one you can believe in, you can write the plan. Plan the trade and then trade the plan.

A plan should at least answer the following:


What is my strategy for entry?

What is my risk tolerance?

What do I expect to happen after I enter the trade?

What has to happen for me to consider my decision to enter the trade wrong?

What are my criteria for exiting the trade at a profit?

What are the emotional obstacles that I will face and how will I overcome them?

How will I judge my success?

How will I learn from my mistakes?

Is all this worth the effort? The little bit of time that it takes to make and follow a trading plan should improve your performance in the market. Is it worth it to make a plan when building a house? Is it worth it to make a plan when starting a business? Most of us answer yes to these questions but fail to plan our trades. Why?

The answer lies in emotion. Too many traders treat the stock market like a casino. They make trades with the hope that they will make money just like a gambler puts down money on the hope their number will come up. Hope should not be part of your plan. If you are a trader who believes your success in the market is a matter of luck then you should probably close your brokerage account and head to Las Vegas. At least there they give you free drinks when you gamble.

Think when you trade. Impulsive decisions are not likely to succeed. Well thought out trades may not always succeed either but at least you will have a means to judge when you are wrong. When a trade ceases to go according to plan, it is time to get out.

[ak]

Ok, I got it, I mean I really got it.

After reading the babypibs I did not have a clue. But on page 88 of this thread I finally see it.

"Horizontal Lines"---price has got to go up or down, just look at the candles and what they are doing "right now".

I am putting this to action this week.

Tro is right, "keep reading" until you get it. By the way Tro, Thanks for your patience. Your socratic (socratize asked questions), style of teaching, mixed with nlp (map is not the territory) has forced us to think and take action!

I still don't know where to download the indicators, although I did find "motherload for esignal and tradestation" on the homepage. I now use mt4.

That's ok because I can trade with horizontal lines.

ak

[razorboy]

starting to feel like I may need to build a shrine to MO

My thinking for this entire trade is that the move from 27.30 will eventually get zeroed out - so that is my target for this grand adventure

First chart - 30 minute - big MOMO bar comes into a 13 period low - red line represents a 50% retrace - set up for a MZ trade - there was also potential for this set up on the 15 minute chart but again in never panned out (second chart)





However, as price moves down, I am expecting a short move up past my entry point that will eventually fall and turn into a wick - may happen a few times

trade in progress - 30 min chart


Getting out - 15 minute chart - look at the wicks and bodies



Had to kill the trade at 27.69 - had to take the dog out.........

First unit was on at 28.017, second when price fell thru 27.75 - total aggregate pipage on the trade - 37.4

As a follow up. glad I bailed, would have been in it for a while if i was still aiming at the 27.30 level

[TheRumpledOne]

Is that MINUS 37.4 or + 37.4 on the trade?

[pierre23]

I think; +37.4

Short at 28.01 closed at 27.69

Extra +5.4 from the second position

[Humble]

MO "There is only 1 highest high and 1 lowest low so the question is:
Is this highest high or lowest low the one that is going to pay me off big time?
Lets find out..."

Well the main move of the year is down.

[razorboy]

plus baby plus the "-" was meant to be a hyphen, not a minus

Is that MINUS 37.4 or + 37.4 on the trade?