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My 5% Trading Understanding with the Market

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  • First Post: Sep 14, 2012 10:35am | Edited at 11:09am
My 5% Trading Understanding with the Market

Introduction


Hello there, i am a Forex Trader whom have been trading about 2-3 Years Now, and actively for the past 2 years, and spent more than 1 year researching and developing systems and strategies to use in each market hours and trading conditions. What i went through is probably what most retailers went through as well, let's be honest no one started out making making without having accounts blown, but there's more than meet the eye.

There is a reason, why i picked the username as 5Percent on ForexFactory, it's because i want to be a winner and not the majority of 95% or more or less that are suffering and losing as a trader/retailer in this Forex Market.

Therefore, i am creating this thread to educate/share/inform the rookies/beginners and people whom want to learn and understand Forex the way i experienced, which is what many traders would also have gone through or be going through. However, i am going to guide you if your mind is fresh and willing to learn, let us put ego aside and respect each other, i am a human and i do commit mistakes before and even now, but mistakes and losses are part of this game, if you want to survive and slaughter the others, then one have to learn the skills and knowledge to thrive and survive in any market conditions, i thankfully i have learn all these mistakes and experiences only through profit losses and still break even while i was still experimenting most of the times, ask me if i had lose many accounts, yes in fact i did before, and thankfully i learned about risk and money management so that i could breakeven as i had withdraw my risk exposure of my deposits leaving my profits for risks/experimenting. Let us not ask about being profitable or track records as well, every trader have their own unique PPEE, personality, psychology, experience, and emotions.

The main 4 factors are what make a trader complete, and he or she have his own mastery and learning, and acceptance of risk/losses/winning and expectation in the Market itself. Before i would even reveal the few strategies i am applying, i would like to start from the beginner stage instead by sharing what can be done better.

stay tune.

before i update the content. when i am free.
Why bother posting a technical analysis if a trader's tp is only few pips
Just came across this thread and not sure what's being advertised here? A trading strategy/system and is it for free or does it come with a premium?
Hopefully, we should see an update of sorts soon..
There are are 100s of threads here educating rookies and beginners... what makes yours special?

Love the boost of ego injected by creating a positive username

Im not sure ego has a place in successful trading using rules and planning
http://www.forexfactory.com/showthread.php?t=284617
This guy knows what he is doing. I have seen multiple blog entries and steady live results from him. He sure knows what he is talking about. Subscribed.
Quoting Robertk
This guy knows what he is doing. I have seen multiple blog entries and steady live results from him. He sure knows what he is talking about. Subscribed.
It would be great if the poster could clarify on a few points and this thread seems like it is a spin off..anyway, will check on this later.
Quoting qwerty00
http://www.forexfactory.com/showthread.php?t=284617
Quoting 5percent
Hello there, i am a Forex Trader whom have been trading about 2-3 Years Now, and actively for the past 2 years, and spent more than 1 year researching and developing systems and strategies to use in each market hours and trading conditions. What i went through is probably what most retailers went through as well, let's be honest no one started out making making without having accounts blown, but there's more than meet the eye.

There is a reason, why i picked the username as 5Percent on ForexFactory, it's because i want to be a winner and...
Hello 5percent,
I've been reading all your posts and you gave good advice. About the TradeExplorer, why do you trade with no stop loss? I would like to trade like you but I worry about stop loss alot. I just got a copy of your book and reading it.
Attached File
File Type: pdf Understanding Stop Loss in Forex Trading with the Doctor.pdf   197 KB | 206 downloads
Quoting Reese
Hello 5percent,
I've been reading all your posts and you gave good advice. About the TradeExplorer, why do you trade with no stop loss? I would like to trade like you but I worry about stop loss alot. I just got a copy of your book and reading it.
oh hi , that's a demo account not a live account, i don't encourage no stop loss unless the leverage is very very small.

There are funds account that manage Forex in money management methods rather than a retailer's account, its very dependable on the dollar size to be honest.

Some funds account they don't trade the way like intra-day or retailer accounts as they don't take unnecessary losses on noise. 100-300 pips buffering are nothing as each trade can be less than 1%, if we talk about 1 lot in a 200 k account, or even 1 M account. However, as individual's accounts, i definitely don't encourage putting no stop losses. As i am currently overseas, this demo account i can't really follow up clearly, i am just doing some random tests on the market to feel the condition, and mainly i wanted to use only buy sell stops on breakout only. It will be more clearer in Jan when i am back, some strategy will be applied on the Demo account. I am surprised u found a PDF that i shared and uploaded it.

I have many other articles/pdf, but not yet for sharing as i am preparing a site for that, probably done early next year, so people can see some stuff there, and systems and trade management ideas.
Why bother posting a technical analysis if a trader's tp is only few pips
Quoting 5percent
It will be more clearer in Jan when i am back, some strategy will be applied on the Demo account. I am surprised u found a PDF that i shared and uploaded it.
I have many other articles/pdf, but not yet for sharing as i am preparing a site for that, probably done early next year, so people can see some stuff there, and systems and trade management ideas.
I will ask Twee to remove that PDF from post. How can I subscribe to your new site? Will you still be posting here after your site is up?
it's ok , those pdf that i uploaded on ff are free for sharing. no need for remove. I definitely hope, those pdf i share are useful and helpful for others in some way.

I am not sure if i will post as often, as next year, i am working on some projects and will be even busier, but i will ofc post some stuff on ff when i visit. i will pm u the site's link when its ready. thanks for being interested.
Why bother posting a technical analysis if a trader's tp is only few pips
Thanks for the update and will review the website - hope it comes up soon.
Hello,

I have been reading your posts and threads from couple of weeks and I reckon you really have a sound knowledge in Forex as it’s always interesting to read your pragmatic thoughts/suggestions. And I hope you would be able to help me as well.

As a newbie in Forex I have started acquiring FX knowledge from various websites and blogs. Though it’s very useful and by now I have reasonable knowledge around the FX basics. However I didn't come across any straight forward (to the point) guide to hit the ground zero. No doubt, there are ample discussions online explaining the FX basics or to list down the Pros and Cons, but it’s really challenging (at least for me) to start the demo or live trading yet. Would it be possible for you to list down the steps that an individual need to take from 'Acquiring the FX Knowledge' to the actual 'D day'? This would include the platform setup and other nitty-gritties.

I personally feel, it’s very important to have a look and feel of the tool while working on building the academics of FX as this will help me in relating; how the knowledge will lead to work on the platform in the real world. Please feel free to correct me if you think this approach is not viable in FX world

I will look forward for your response.

Many Thanks
thanks for those who actually went to visit the posts that i posted on the forum thread. Unknowingly, i realized there are some group of traders following my posts, that's a surprise for me.

The website i am working on is already up on the appearance, but i have yet to fill in the posts and sections, which requires time, and i am only able to do it when i am free.

I will start filling the basics and necessary posts on the site to help the newbies and beginners to sort their way about how to go around learning the better ways, probably with youtube videos as well, for audio commentary and some basic stuff.

before i touch on the more complex part. frankly speaking, for those whom are still trying to find source for their holygrail/system, my best advice is that, don't look for one until you know who u are, and what u want. meaning to say, don't even trade live/demo account until one knows what he is searching for in the fx arena. the sole reasons why traders are not performing or consistent is that they don't know what they want in the first place, and become fickle minded, and keep hopping around without following the rules they set for themselves. any kind of systems are available out there with some ratio of success and rm and mm. but the failures often comes from traders themselves due to their indecisive or weak decisions made.

in the year 2013, i wish every trader good health and happy trading, know what u want and seek for, then combat the market with a plan consistently.
Why bother posting a technical analysis if a trader's tp is only few pips
Good, wish you a great 2013 as well. On the website, let us know when it is live and from what I can make out, you have the design down pat but not the content, right?
Ok, let us know when it is up, we'll check it out and thanks..
Quoting Reese
Can you explain in another way what do you mean by using buy sell stops only? It's hard to understand the above text since it's general and both ways, I can't visualize whether you are taking a long or taking a short and what to do in each case. I understand what is a breakout (you are long?), but then what is "reversal from that stop"? Where is the stop loss? Can you show a picture? Where is the entry in relation to the breakout and the support/resistance? Are you talking about a pullback after a breakout? Or a full reversal from support/resistance?...
The way I read it, he enters long positions with a buy stop order and short positions with a sell stop order.
Quoting Gumrai
The way I read it, he enters long positions with a buy stop order and short positions with a sell stop order.
hi, i didn't saw the post resee posted. Well let me informed about this.

First of all . this is my rule to forex trading :
Quote
Quote
It's either we have a trade that has a high probability that it's going to be a winner, we will let the profit run. Or we killed a trade faster to cut our losers short. Don't ever attempt to counter-trend a trade after a breakout is identified. Buy because the price wants to go up, sell because the price wants to go down. Learn to buy higher, and sell lower only with certain conditions. The Doctor
No matter how great a system is, how accurate or reliable a signal is, the live market can cause any changes during market volatility in market sessions especially during the US sessions compared to the Europe sessions. The price or signal a trader takes on their own system and provide an entry, but the problem is the signal will eventually become invalid if the market changes/turn, by saying that an example.

A trader have a buy at 1.3225, market leaped on Wednesday straight into 1.3300, the market firstly retraced back to 1.3253, the area of previous H n S as resistance turns support, the uptrend looks intact, the trader looked to long again @ 1.3255. His first buy is trailed up to 1.3249. Although, he planted a 1.3255 buy entry again, a pyramid trading to increase his winning positions, he is protecting himself in the event the market starts to change, he placed sell stops at 1.3249 after his first trailing buy positions.

For instance, i may have a pending buy at 1.3210 with maybe 20 pips stop. if i want to trade the uptrend, but to protect myself, i also placed a sell stops @ 1.3195 with the stop at 1.3212 area as well, so in a way you are hedging, hedging does not mean you buy and sell at the same place that's nonsense and you can't make money. Proper hedging is to minimize the risk and increase the probability of winning, and always cutting the losers short and riding on winnners.

for instance, if 1.3210 is not picked up, it got flushed due to any reason, that positions is stopped out, and sell stop is activated to catch the trend, buy and sell stops are always the trend catcher, not limits, limits sre fighting trend and always believed in support/resistance to stands. However, break support = break out, break resistance = break out just like how 1.3125 was attacked 3-4 weeks ago, and it break to 1.3300, no matter how hard a trader can sell after 1.3125, price is just getting the upwards bound.
Why bother posting a technical analysis if a trader's tp is only few pips
Reese,
this is my understanding of what 5% wrote
But I maybe wrong.
When says that he trailed his stop, I believe that he means that he moved his stoploss, not using a trailing stop as such.

Quote
A trader have a buy at 1.3225, market leaped on Wednesday straight into 1.3300, the market firstly retraced back to 1.3253, the area of previous H n S as resistance turns support, the uptrend looks intact, the trader looked to long again @ 1.3255. His first buy is trailed up to 1.3249. Although, he planted a 1.3255 buy entry again, a pyramid trading to increase his winning positions, he is protecting himself in the event the market starts to change, he placed sell stops at 1.3249 after his first trailing buy positions.
Buy at 1.3225
Price rises to 1.3300
Price then retraces to 1.3253 which is the previous high (area of resistance) as the downmove was stopped at this level, it is now presumed to be resistance turned to support
When price moves up from this area Open an additional long position at 1.3255 with a tight stoploss at 1.3249
Move stoploss on first position to 1.3249 to protect profit.

Probably price at the area 1.3253 has congested (in a small range) so he cannot be totally sure that price will continue up from here. If it breaks below this level, because of the sharp move up, there is probably very few likely support levels down to the original entry, so he then places a sell stop order to open a short position.
Quoting Reese
Without picture, I'm really having a hard time visualizing what you wrote. If the trader bought at 1.3255, what do you mean by his first buy is trailed up to 1.3249? Do you mean he is using 6pips trailing stop? Why should he do that? And if he buy again at 1.3255, why is that called pyramid trading to increase his winning positions? He is just re-entering after that trail stopped at 1.3249 right? Why should he trail so closely using 6pips? What is the reason for this example? What is pyramid trading? For this particular 6pips trailing pyramid...
First of all, i do not know if you are trading eur/usd recently or even yesterday. My example is that, if i have a buy stop positions from 1.3225 when live market closed was at 1.3195 area for one of my broker and opened around there. There was resistance at 1.3215 area formerly before it went down again if i remembered correctly from xe.com when market was closed. So what i want to do is to place buy stop above resistance to catch possible up move.

If 1.3225 was triggered of buying hi within a small range out of small range resistance broken = upside probability increased. So we don't know what the market will do, and what may happen. If a buy stop 1.3225 is triggered with a good stop loss and risk reward, we let it shoot up or stop out.

Formerly, before the upmove back to 1.3300 yesterday, 1.325* was a resistance level on the H And S as u can see on this picture, so by moving my trailing stops to 1.325* below abit, would be what i will do to protect my 1.3225 as a risk free position and some pips gained if i failed to take profit at any level higher. As some people may want to aim higher thinking 1.3300 can be broken. So to keep a trader opened to both bull and bear actions. he can placed a sell stop below the former resistance turns support @ 1.325* area somewhere like 1.3246-49. if the price action level cannot stays above a resistance turns support, then the upmove is limited in probability, as retracement tends to occur if there is no r turn s.

So even if a trader thinks that 1.3210 will be a good level of buy, should price drop and he bets on the upside, he can still do the same by placing a buy limit @ 1.3210 and sell stop at 1.3195 area, why 1.3195? because that was the opening/closing, which will acts as a pivot, if the support there is broken it will swing down and by pass more likely or not to create a new low, why 1.3210? because that area should act as a bid zone unless fundamental changes/trend changes it will be broken just like what happened yesterday.

if a trader is stubborn with only buy, if he don't place stop loss he will be caught, if he place stop loss, and get stop out why don't he sell? and keep his loser small on both trade buy or sell? as if he placed a sell stop he should bet on a break out to happen in his favor.

Now that we are in the same situation, if price is meant to go down, it should not over lapsed previous 1.3157 area, as that should turn s turn r. Formerly, price might not even travel back to 1.3157 but somewhere around 1.3142 area as u can see on the horizontal line.

I was pessimistic about bull why?

if price action on daily is a low to hi then hi to lo, its a very very strong rejection and bearish sign, which will result in alot of upper shadow and a bearish candle body. And my signal of EMA already turned on daily chart for price to go to downside, the real signal comes in at 1.3157 when support was broken. When support is broken, there is high probability it can leak to a break out,unless 1.3157 is conquer, then a retracement will be in place, if not downside probability increased. So even if a trader choose to buy at 1.3125 with tight stops, as that was formerly a resistance level before 1.3300, he can still bet on the downside with sell stop at 1.3110 area etc, to catch the move to 1.3080 and lower.

Because as the trend turns bearish outside of a range, its not advisable to sell hi buy lo, but to sell lo on retracement, and buy only after a former support is conquered again.

The red box is price level of interest of selling, for limits, and blue is limits of buying in a range, should the range be broken it should be buy hi and sell lo and cut the wrong positions.

So even if a buy @ 1.3157 was activated, the stop loss can be just 10 pips, the retracement did send it to 1.3195 yesterday and failure to go higher the bearish signal is in place. Now let us ask ourselves if we place a sell stop at 1.3149 after a pull back retrace, can we catch a down move? with a stop at 1.3157-60? would it be a good probability trade?
Attached Image (click to enlarge)
Click to Enlarge Name: test.png Size: 39 KB
Why bother posting a technical analysis if a trader's tp is only few pips
Quoting Gumrai
Reese,
this is my understanding of what 5% wrote
But I maybe wrong.
When says that he trailed his stop, I believe that he means that he moved his stoploss, not using a trailing stop as such.



Buy at 1.3225
Price rises to 1.3300
Price then retraces to 1.3253 which is the previous high (area of resistance) as the downmove was stopped at this level, it is now presumed to be resistance turned to support
When price moves up from this area Open an additional long position at 1.3255 with a tight stoploss at 1.3249
Move stoploss on first position...
well explained . that's what i mean, trailing stops can be done by the mt4 or ea itself by trailing pips, but the better way of trailing is to move the stop loss positions into breakeven + pips at price level of interest, especially at r turn s and s turn r etc.

So even if i have a sell at 1.3195, what i want to do now if i choose to target 1.300* area, i should move my stop loss to 1.3160 area, in case 1.3157 is overlapped. i can buy from there again.
Why bother posting a technical analysis if a trader's tp is only few pips
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