prochargedmopar wrote:prochargedmopar wrote:LOSER'S UNITED TRADING MANIFESTO
Ok folks, Here is how you become a winner.
1) You MUST trick your brain to start (Next step #2 is what will FIX you over time).
2) The key is to make your profitable trades EXPONENTIALLY bigger than your losing trades.
I know right off the bat that bredin will look at this and be saying "That's too much work!"
but I don't think he or M.O. understand the depth or your PAIN like I do. Regardless of where it has it's roots whether it was your parents, relatives, teachers, society..........
Look closely at #2.
Think about that s**t. I've spent 3 yrs doing just the opposite. And I've done it in the worst way. I've doubled, quadrupled and "sextupled" (what's 10x? LOL) my losses by moving stops and adding lot value.
Making losing bigger doesn't have to be so blatant either. It can be disguised in many ways by doing things such as using bigger stops than tp's, taking partial profits, not hitting your target for what ever reason(and these are endless). Even something as simple as risking the exact same % of your account on each trade. Doing the math using this advice makes your winners smaller than losers when comparing each on a $ to $ basis.
It's time to "flip a dick" (as my first wife would say when wanting you to do a U-turn) boys........and girls.
I've known and felt first hand the inadequacies of a losing trader and it ain't pretty.
WE MUST LEVEL THE PLAYING FIELD!!!
FIRST we will start with the most INEFFICIENT way to do it only Because I KNOW you can't/will NOT take the easier route. Later we will show a way that those a little more stable can use.
The 3rd and final installment has already been laid out before you on these boards but it's ONLY after you fix yourself through success begetting success that you will be able to see the light.
Now, lets be clear, this is NOT a method or system post.
What you use DOES NOT MATTER.
It can be something as simple as TRO's Rat trading Method.
God forbid, but you can even use a squiggly crossover, price retest as entry.
Or maybe you want to get fancy and use the fibo tool with an oscillator.
SYSTEM DOES NOT MATTER
This is all about making your winners BIGGER than your losers by way of using PROFITS to increase your odd's of success.
The words that have haunted me for almost 3 yrs. by M.O.
YOUR LOSSES WILL CAUSE YOU GREAT LAUGHTER.............
When and only when this is true will you be able to STOP trading on emotion.
Keep in mind the 1st and 2nd examples do NOT incorporate space increases as I know your NOT psychologically capable of doing so JUST YET.
Let me show you how to do it using the WORST CASE SCENARIO.
10 stop/5 pip take profit.
keep in mind using a stop this small is just nuts in the fx market even though TRO swears by it. (and I use too )
We'll start by risking 2% of account as stated to do by all the pundits. Keep in mind the more you risk at the start the less chances you have to be wrong before account is blown. MORE importantly though the bigger you start the risk % the LESS of an opportunity you have to exponentially increase your winners compared to your losers because of your limited margin availability.
WHAT EVER YOU ARE RISKING YOU ARE RISKING. M.O.
This statement is nothing more than saying if you sit down at a poker table with $20 to risk, and you find you have $44 sitting on the table in front of you in chips, you are still only risking $20 if it all vaporizes. But you now have some wiggle room to INCREASE your PROFIT POTENTIAL all the while risking ONLY what you sat down with to risk. ($20)
Remember, the goal of a scalper is to use MAX lot value in relation to margin available to grow their account as fast as possible, they can hear the first $million calling their name....hehehe
$400 account/2% risk per entry. repeat. PER ENTRY
10 stop/5 pip take profit.
Some fail to realize just how important a trade is that was not immediately wrong. M.O.
Grab 5 pips 3x and what do we have? What is your goal?
400x.02=$8 risk. 0.80 per pip.
Gain on 1st trade is 1% or $4 of equity side of ledger.
Yes, I hear you say that is lunacy BUT you do it ALL THE TIME!!!! Don't LIE.
$8+$4=$12 to risk. (risk side of ledger)
$12/10 pip stop gives a new lot value of $1.20
This is a 50% increase in lot value risking ONLY 2% of what you sat down with to trade.
2nd trade you grab 5 pips again. Gain $6
You are now up 2.5% on original account balance risking ONLY 2% of original account balance.
$8+$4+$6=$18 on risk side of ledger.
$18/10 = $1.80 per pip.
YOU ARE NOW VERY CLOSE TO MAXED OUT LOT SIZE USING THE $410 IN YOUR ACCOUNT WITH A 10 PIP STOP. Is this not the goal of a "scalper"?
But you say, NO WAY am I going to use $1.80 a pip with that account.
On your THIRD trade you will have the opportunity to make $9 risking ONLY $8 to do it.
You are now trading slightly above 1:1 profit potential with a 10 stop and 5 tp.
Think about this, on your first trade you were willing to take 0.5:1 reward to risk.
Are you lying to yourself again???? You do it ALL the time!!
You were willing to RISK much more compared to your profit potential, though be it limited by only your own psychology, to make a paltry 0.5:1. And now your telling me you UNWILLING to take a trade making more than your risk?
Pull the friggin' handle already will you..........Your very close to having the market by the balls instead of getting it in the Arse.
Ok, that's $9 gained.
In this 3 trade sequence your up $4+$6+$9= $19 OR 4.75% on a $400 account!!!! Max risk was $8 or 2%
Are you feeling LUCKY? Do you want to take a 4th trade TODAY???
8+4+6+9=$27 to risk or $2.70 per PIP..but, but, we cant do $2.70 per pip on a $419 account with 50:1 margin....Hmmmmmmmmmmmmmmmmmm
Does this mean we have got to use $1.90 per pip with margin to the MAX and NOT risk a single Penney of our own hard earned cash......
Does this mean if we make it to take a 4th trade that we will be trading RISK FREE???
I know it doesn't make sense:
I tell you to risk little and then I have you risk all of your profit.
I tell you how to trade against people holding onto profit and then turn around and suggest that you hold onto yours.
This is a completely different set of psychological edges we are dealing with.
You are offering your profits while others are "protecting" them.
You are investing in your future while they are living for today.
$9.5 +9+6+4=$28.5 OR 7.13% account increase.
What if that being you were trading risk free you grew some balls and held for 10 pips, OR the market just "spiked" in your favor????
$19+9+6+4=$38 is 9.5% increase for the day 4 trades taking ONLY 1/2 your stop as profits.....well, at least until you had balls to play.
But, but, I can hear you now, what if we lost any of the first 3 trades in this sequence?
YOU LOST 2% of your account.
And what if we lost the 4th?
YOU LOST NOTHING!!!!!!!!!!!!!!
Do you NOT see the power from both a psychological and monetary standpoint of segregating in your mind what is yours and what is not????
This is the most extreme case for the most psychologically damaged and impaired traders.
Try this with a 15 stop/10 tp.
Maybe your more healthy than I and can actually hit your stop size as a target?
It's simply Insanity if you run the #'s with a 1.5:1 profit/loss ratio.
YOU WILL NEVER BE ABLE TO INCREASE SPACE TO ALLOW FOR LESS STRESSFUL TRADING ENTRIES AND A HIGHER WIN % UNTIL YOU REALISE IT IS POSSIBLE THAT YOUR WINNERS CAN BE BIGGER THAN YOUR LOSERS.
You must "fix" yourself first though.
$100 gained risking nothing is worth more than $100 gained risking every thing!
Some times less is more... M.O.
EVERYONE right now go back and look at your results from the last week or month of trading.
Simply run the #'s. Using the exact same stop/tp that you are using in the live markets.
Post your results here:
Where would your account be in contrast?
Imagine LIFE if your ONLY problem was how much profit to take?(paraphrased from M.O.)
In the next post I'll show how to do this in a much more SANE manner.
10 stop/5 tp is truly luniacal (new word) but hey, we've gotta work with what we got?
"Cant get chicken salad out of chicken s**t" as my dad likes to say!!!!!!
Knowing what I know now about new traders. Having a system that depends on them
winning 3 or more trades in a row is troublesome. In addition having them risk 2% on
initial trades is suicidal. 1% is better and may still be to high for "loser" traders.
Until someone is showing they can be profitable risking less than 1% I wouldn't increase
Start by having a profitable month at low risk then prove you can do it again. If successful
raise your risk up some such as 0.3% up to 0.5% and prove you can be successful in a 3 month
period. If all is well move up to .75% and stay there for awhile and assess you ability at this new
How would that work in the "PROWorld"?
0.3% to make 0.15%
0.45% to make 0.22%
0.675% to make 0.3375%
1.012% to make 0.506%
So about 1.21% profit
At this rate, being a scalper as Pro suggested you can make a few HUNDRED% in a year with low risk.
Personally I wouldn't risk 10 pips to make 5 pips on a continuous basis, its best used to grab some
space at best.