ProchargedMopar's Trading Trilogy

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dojirock
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Postby dojirock » Tue Jan 31, 2012 6:01 pm

Ok, another wack at it......

so i can scalp? yes.. I start atrade risking 8 pips with a scalp and i take 8 in profit. period...now i look for a new opportunity to scalp again but only after adding the 8 pips profit to my initial 8 pip stop, giving me a 16 pip stop from my initial entry...but it could be a 30 pip stop if my entry for my secont trade is 14 pips higher than the 1st trade? Im using profit to expand my stop?
questions? as long as im keeping a long bias for say, i can scalp long and shorts adding profits to my stop and subtracting losses from my stop? So im never risking more than my initial capital of 8 pips, or 8 bucks? but have more wiggle room to keep trading. Eventually space will become so big, that i can move up to the 15 min time frame and continue on?
Question, does the end of the trade cycle happen when you close all positions and remain in affect on partial closes? Otherwords, if im trading 1 lot take 8 pips and close the whole lot, that doesnt mean the end of the trading cycle? or does it? If i only closed half the lot then i add 4 pips to my space?
i have no problem trading all day with profits and ending up the day with a zero percent gain? statistacally, it is the reverse, huge gains using profits?

hmm. still processing...am i getting closer...?

dojirock
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newscalper
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Postby newscalper » Tue Jan 31, 2012 6:52 pm

bredin wrote:newscalper, you seem to be assuming that a trader is actually foolish enough to allow his stop to get hit.

That what all the talk about IF/THEN lines is about.

G.


Not at all.

'Allow' has nothing to do with it. You cannot control the market.

You can have a run of several trades closing back over your If/Then. It has the same effect: your unrealised profit is getting less and less.

And price hitting your stop within 1 bar isn't necc. foolishness either, it's happened to me twice this month. Price has to CLOSE over LOS for it to be deemed time to close, Price can and does sometimes blast straight through within one bar and hit your stop. Not enough space you say, how much space you need I say 1ATR, 2ATR 3ATR??? Stop of 10ATR and LOS of 2ATR and keep only winning 1 to 2ATR is in the end still a losing proposition. It;s still about letting winner run at the end of the day and if you don't, you dead.

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prochargedmopar
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Postby prochargedmopar » Tue Jan 31, 2012 7:26 pm

newscalper, you partially understand.
Doji, that WILL NOT fix the losing scalper, M.O. does not understand the psychological difficulties of said trader.
Bredin and crew are using space in the way M.O. is using it but from smaller extremes.
Technical charting questions, managing space, ect. have nothing to do with how to fix your brain.
Fear and greed MUST be overcome or it all sounds like Charlie Browns' Mama, waaa-waaa-waa-wa.
Even if you do understand her analytically, Proper action in live markets and with real money is IMPOSSIBLE!!

When M.O. says" The only problem I have is how much profit to take".
Will you then be fearful?
Will you then have a need to be greedy?

Keep reading his posts.
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670

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newscalper
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Postby newscalper » Tue Jan 31, 2012 7:42 pm

Thanks Procharged - at least I'm somewhere on the right track I guess.

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dojirock
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Postby dojirock » Tue Jan 31, 2012 7:51 pm

Maybe im missing something? Pro, i dont lose scalping. havent for 6 months. my account is growing slowly. Im looking to go to long term trading, isnt this what space is about. Until MO decides to help us scalpers with his knowlege, im looking to change the way I trade. Scalping is time consuming, and stressful at times, I have a family, work 50 hrs a week, no insurance and a micro account. Im trying to excel and learn the longer term stuff that you guys are doing. Please dont get me wrong, I mention MO in a positive light because he has hinted about helping us scalpers in previous post, It seems the longer term traders have less stess, and CAN laugh out aloud. I want to become one of those. My losses in the last 6 months have been due to trying to learn a longer term trading method, is that crazy? Maybe emotional? I dont see things the same as I do on a 5 min chart. I wont continue to mess up your thread, it just seems you have had some ah ha moments in the past week or two and I was hoping to share some of that excitement.

dojirock
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MightyOne
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Postby MightyOne » Tue Jan 31, 2012 8:32 pm

Focus on:

SPACE

then

LOT SIZE

then

PIPS

If you prioritize is this order then the result will answer your questions.

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Postby MightyOne » Tue Jan 31, 2012 8:59 pm

"Bredin and crew are using space in the way M.O. is using it but from smaller extremes." -PRO

How small are we talking?

http://i39.tinypic.com/24lkkcp.png

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bredin
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Postby bredin » Wed Feb 01, 2012 1:00 am

D+...
y'know small charts ;)


newscalper,
Space is both sword and shield.
I think youre having trouble seeing both aspects.
The fist job of Space is to protect your *capital*
The second is to use 'other peoples money' (ie profit) to grow your capital.
Risk is only assessed on capital

This is a leveraged environment, like the property market. Lets take an example from property...
I use 10k to buy a house worth 100k. it appreciates to 120k. so I have (held) profit of 20k, right?
If the price of the house falls to 110k, have I taken a loss?

The foundation of space is the separation of account into two parts.
One part generates your available leverage, the other is the amount you are willing to risk. Almost all traders see no difference in the two functions, money at risk is also used for leverage... and money used for leverage is also at risk. They try to 'fix' this by trading below their accounts maximum leverage. After all, at 100:1 leverage your account is gone in 100 pips... so they create space for themselves by lowering their lotsize, and limit the amount of this expanded space they are willing to risk in one hit (ie stoploss).

This system is flawed, since after the initial deposit all capital is at risk, sliced into thin parts, and discarded piecemeal.

With space we take the held profit (ie other peoples money) and put that at risk, and our capital is used to leverage the position.
If our account value falls, just like in the property example, it does not matter since space has done its job in protecting our capital.

Now if you had the property mentioned above, would you wait for the yearly candle to close before you sold it if your I/T was at 115k?

G.
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prochargedmopar
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Postby prochargedmopar » Wed Feb 01, 2012 1:17 am

Good stuff, M.O. and Bredin:

NOW we are making progress, BUT not there yet.
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670

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prochargedmopar
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Postby prochargedmopar » Wed Feb 01, 2012 2:31 am

1/31/12 (pro)*

Focus on:

SPACE (Is in the heart and can ONLY be changed through experience/wisdom)

then

LOT SIZE (Key to making 5,10,or 50:1 reward:risk)

then

PIPS (Relative to space, and of little consequence)

If you prioritize is this order then the result will answer your questions.
MightyOne
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670

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