The ideas that I trade by:

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paweldobkowski
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Postby paweldobkowski » Thu Mar 14, 2013 12:44 am

Stupid lateral thinking problem:

Romeo is asleep on the bed, Julia is on the floor covered in water and broken glass.

What happened?

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aliassmith
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Postby aliassmith » Thu Mar 14, 2013 2:41 am

paweldobkowski wrote:Stupid lateral thinking problem:

Romeo is asleep on the bed, Julia is on the floor covered in water and broken glass.

What happened?


Romeo and Julia are cats and Julia tried to jump up on the night stand but messed up causing the flower vase to fall on her a shatter. :)
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Neo88
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Postby Neo88 » Thu Mar 14, 2013 9:28 am

Nevermind
Last edited by Neo88 on Thu Mar 21, 2013 7:40 pm, edited 1 time in total.
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paweldobkowski
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Postby paweldobkowski » Thu Mar 14, 2013 10:15 am

aliassmith wrote:
paweldobkowski wrote:Stupid lateral thinking problem:

Romeo is asleep on the bed, Julia is on the floor covered in water and broken glass.

What happened?


Romeo and Julia are cats and Julia tried to jump up on the night stand but messed up causing the flower vase to fall on her a shatter. :)


oh that is close to my version! ; )

im impressed how fast You came up with it. Of course Your version also works only thing is that i dont know if the other cat will be lying on the floor in water and glass.

Karma
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Postby Karma » Mon Mar 18, 2013 6:36 pm

First nice trade in a little while, stayed up late hoping this gap would close

Image


Exited with a nice 40 some odd points

I believe I'll be getting back in here somewhere with something to the effect of striking down upon who ever approaches my position with great vengeance and fractions of lots XD

Onwards and upwards

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MightyOne
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Postby MightyOne » Thu Mar 21, 2013 5:45 pm

What so many people forget, when they become lost while searching for entries, is that trading is nothing more than POSITION (00) & LOT SIZE; the rest is Voodoo.

Whenever you feel lost & tossed around by the market, it is probably due to poor 00 placement.

00 = an entry on a long(er) term chart:
D3, W1, D9, anything around a week is the sweet spot for 'long(er)' term trading.
D15, M1, D45, anything around a month is a long term chart.

We use small charts to control risk and maximize gains while remembering that we MUST have long(er) term position before we can hold for long term gains.
If you get lost in short term trading then you will not be placing 00 in good locations and you will certainly not be maximizing your potential.

There are people that get the brilliant idea to reinvest profit in their stop loss thus increasing their position size for the next trade.

AGAIN, trading is POSITION & LOT SIZE!:

POSITION & Lot Size = trading
No Position & just Size = gambling

What is position? Position is an ENTRY (your STOP) on a LONG(ER) term chart that is AT/~ AN EXTREME.

Why at an extreme? Because price spends most of its time between two long(er) term points.

If your stop is at one point or the other then you have STAYING POWER.

What do you do with staying power? You spend your time MAXIMIZING PROFIT POTENTIAL by increasing your lot size.
Increasing your size, while in a position, drops 00 down closer to the current price (maybe above a lower high?).

Think of an 'entry' as the placement & movement of your stop and you will understand not only what triggers a trade but also how you should size your trade.

As a final thought, what is a 'short(er) term' chart:

I'd say that it is any long(er) term period divided into 1440 bars (7 to 30 minutes).
I'd also say that 'short term' is around 150 seconds.

However you define what is long or short & no matter your style of Voodoo, remember that trading is position & lot size.

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Postby PebbleTrader » Fri Mar 22, 2013 2:37 pm

Notice the NON-LINEAR relationship between price and max lot's!

The example is a position from the 80.00 level with max lot's for that level at 100 lot's. This is a shorting example.

Each data point is 10 pips lower.

As price drops more and more from our position, we can max out our position by less and less lot's exponentially.

Notice just a 100 pip move from the position from 80 to 79 has halved our max potential(100lots -> 50!!!)

It does PAY to try to get as close as possible to your position! Which has to be balanced by not missing the move!

Image
Last edited by PebbleTrader on Fri Mar 22, 2013 2:50 pm, edited 5 times in total.
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Postby PebbleTrader » Fri Mar 22, 2013 2:40 pm

I always knew it was non-linear but never graphed it out or thought about it like that, I'll have to see how we can use this to our advantage, other than the obvious!
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Postby PebbleTrader » Fri Mar 22, 2013 3:16 pm

I created 4 slopes, each represented by a different color line for this 1000 pip position.

Then we look at how each "zone" compares to our max potential in lot's.
They are approximately 50%, 25%, 15% and 10%. Since our max size is
100 lots, we can remove the % sign and that would be how many lot's at each
price level. (50% = 50 lots)

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Postby PebbleTrader » Fri Mar 22, 2013 3:45 pm

There may be a time when you want to maximize how much space you can get! (5-10-15-20-25% of our position)

Image
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