I am NOT a professional trader.
Reasons for me creating this thread is to give me some form of direction.
And personal commitment.
My biggest wish is for consistency.
1. Personal Traits & Goals
a) Why Are You Trading?
I started trading because I am passionate about statistics and emotional behaviour.
At first, I was under the illusion that trading is all about making lots and lots of money.
I was so wrong!!
Trading is a very psychological game and require a lot of skill.
I am currently trading to get a better understanding of myself and to become a more independent type of trader.
Knowing myself and constantly overcoming the challenges that trading provide.
A dream without a goal is just a wish.
b) Your Outlook In Life
I currently staying in South Africa, Johannesburg.
I am a family man. Married with a beautiful wife, two children. A daughter and a son.
I am currently fulltime employed
The income is good, but it is a rat race.
My dream is to provide my family with a more relaxed lifestyle.
c) Your Personal Strengths And Weaknesses - How Does This Translate To Trading?
My biggest weakness is time. I just can't trade at certain times of the day.
I used to take trades at work from my smart phone - guaranteed losers.
These days I plan my weekly swing trades over a weekend and only execute them on mondays.
If no setup on monday, I do not swing trade for rest of the week.
I love to take risk, but very calculated. My personal strength is to accept the outcome of each trade.
I do not risk money that I can NOT afford to LOOSE!!
Another weakness I have is emotional-capital. Not sure what my threshold is.
Currently testing my emotional-capital with a high risk money management account. Pure scalping.
d) What Kind Of Trader Are You?
I used to be a trend trader. Not anymore.
I am currently a reversal trader or a counter trend trader.
I am a weekly swing trader and also a scalp trader.
I have different trading accounts for different trading styles.
On my weekly swing trades, I only risk 1% of my total account size.
My general scalp trades, I only risk 3% of my total account size.
Most recently I am testing a high risk scalp strategy. I risk 25% of my total account size.
e) What Is Your Edge Over Most Other Traders?
I am fast at cutting losses.
Have a very good understanding about probabilities and expected value.
Good emotional self control.
Outstanding self-reflection.
I can hold trades for a long time.
f) Quarterly, Monthly, Weekly and Daily Non-Monetary Trading Goals
Daily: I will follow my checklist and my trading plan.
Weekly: I will have entered all trades into Edgewonk and made my analysis before the next week starts.
Monthly: I will have managed to keep my Tiltmeter green for the whole month.
Quarterly: I will have a profitable (non-losing) quarter and avoid major trading mistakes.
2. General Trading Rules - The Framework
a) The most essential rule - Use Your Checklist
#1 The setup meets all my entry criteria
#2 The trade is in my trading plan
#3 No news announcements ahead
#4 The trade is in the direction of the trend
#5 The risk/reward is acceptable (Only applicable to swing trades)
#6 I feel good emotionally and physically
#7 I accept to lose
b) General Money Management
On my weekly swing trades, I only risk 1% of my account balance per trade.
If I am scalping, I only risk 3% per trade.
If I am scalping aggressively with hedging strategy, I would risk 25%
I use different accounts for different trading styles.
I do not need a income from trading to support my lifestyle.
My goal is not to make money, It is to be a success!!!!
c) Total Risk And Exposure
Weekly swing trades, If more than one setup, I will not risk more than 4% on all trades of my account balance.
d) Emergency Stops - When To Step Back
If I am experiencing a lot of stress at work or in my private life, I stop trading.
If I feel sick, like having the flue, I stop trading.
e) Pre-Trading Routine For The Trading Week / Day
I will look at the economic calendar.
I will also be watching YouTube, Tradeciety.com and Forex.Today
f) When To Enter Trades Into Your Trading Journal
Once I am done trading, just before I would go to bed.
g) When To Do Your Analysis, Performance Review & Trade Plan Revision
After 50 trades - A complete and thorough trades analysis.
During the weekend - Review all trades of the past week.
At the end of each trading day - A short review of all you're trades of the day.
After every trade - Perform a quick sanity check to avoid revenge and over trading.
h) What To Do After A Winning Trade / Losing Trade
Did you follow all your rules and adhered to the checklist?
If it was a losing trade, were all the entry criteria given or did you break the rules?
Could you have extracted more from a winning trade?
Don’t focus on the outcome too much, but adopt a process-oriented mindset.
Often, stepping away after a losing trade and entering the trade into your trading journal
can already make a huge difference and calm you.
j) Improvement Loop: Learning and Education
How much time per week do you assign to improving and working on your skills?
Learning by doing doesn't work in trading and the best traders understand that it is
the work they do away from their charts that make the difference in their trading.
Reviewing the trades in your trading journal, studying trading books and pro-actively
learning is very important on your path to becoming a better trader.
k) Punishments
If I break one of my rules, I will not drink any red wine over the weekend.
l) How To Keep Emotions Out Of Business – Know Your Numbers & Probabilities
Write down the hallmark numbers of your strategies.
Always know where you are at the moment.
Are you currently in the middle of a winning streak?
Then, don't become overconfident.
Did you just lose 5 trades in a row?
Then stay away from revenge-trading or trying to make it up faster.
Always ask yourself: Did you cause the losses or did you follow all your rules?
Something might have happened that messed with your strategy and/or your performance.
Don’t just blame the markets and look for a new strategy – losing streaks often provide great learning opportunities.
m) The Rule To Change All Rules
When are you allowed to change the rules of your trading? - If it works, I will never change.
When can you change your risk management? - As soon as I am not comfortable with it anymore.
3. Strategy Specific Rules
Weekly swing trade strategy:
I use Wayne McDonell methods.
A very simple and stress free strategy
Use Weekly Pivots
Only enter trades on Monday - Start of a new week.
Pre-requisites for this strategy is getting you're bias right.
Are you a BULL or a BEAR!!!! Explain why!!
If you are a BEAR and the market opens near or at WM3
You're target for the week will be WM1
If you are a BULL and the market opens near or at WM2
You're target for the week will be WR1
Examples from this week:
For some more clarity watch this:
Scalp trade strategy:
I have tried numerous scalp strategies over the years.
The one that most definitely stick with me and my personality is THV.
I am using THV V3.
Many thanks to Cobraforex and his team.
For more info about the rules about this strategy : http://www.forexfactory.com/showthread.php?t=127271
Many thanks to Stratman on his YouTube Videos:
Extreme High Risk Scalp trade strategy:
For this strategy I have included a trade explorer.
Starting with 200 USD
I was influenced by this idea for a very long time now.
I read an article from Moritz about "Ideas For Growing A Small Trading Account: Paradoxical Intervention"
I also stumbled upon http://www.forexfactory.com/showthre...27#post8529527
Made me think...
For this strategy I will be using Steve Hopwood's Multi purpose trade manager.
A EA with hedge functionality build into it.
I see this as a personal challenge, if all fails this account will go bust in no time.
Risk 25% per trade using no stop loss.
If trade goes against me, at 10 pips the EA will enter a hedge trade.
This hedge trade will be @ 120% value of original trade.
If trade goes against this hedge trade, at 10 pips the EA will enter a hedge trade.
This hedge trade will be @ 130% value of previous hedge.
If my original trade is not hedged an it goes for me.
The EA will enter a stop at break even +1 pip, only if it goes +5 pips in the profit.
Will activate a jump stop of 5 pips.
I will attempt to do 3 trades like this per day.
Using THV V3.
My target per trade is 12% profit.
This will most definitely test my emotional capital.
Best Regards
Wim
Reasons for me creating this thread is to give me some form of direction.
And personal commitment.
My biggest wish is for consistency.
1. Personal Traits & Goals
a) Why Are You Trading?
I started trading because I am passionate about statistics and emotional behaviour.
At first, I was under the illusion that trading is all about making lots and lots of money.
I was so wrong!!
Trading is a very psychological game and require a lot of skill.
I am currently trading to get a better understanding of myself and to become a more independent type of trader.
Knowing myself and constantly overcoming the challenges that trading provide.
A dream without a goal is just a wish.
b) Your Outlook In Life
I currently staying in South Africa, Johannesburg.
I am a family man. Married with a beautiful wife, two children. A daughter and a son.
I am currently fulltime employed
The income is good, but it is a rat race.
My dream is to provide my family with a more relaxed lifestyle.
c) Your Personal Strengths And Weaknesses - How Does This Translate To Trading?
My biggest weakness is time. I just can't trade at certain times of the day.
I used to take trades at work from my smart phone - guaranteed losers.
These days I plan my weekly swing trades over a weekend and only execute them on mondays.
If no setup on monday, I do not swing trade for rest of the week.
I love to take risk, but very calculated. My personal strength is to accept the outcome of each trade.
I do not risk money that I can NOT afford to LOOSE!!
Another weakness I have is emotional-capital. Not sure what my threshold is.
Currently testing my emotional-capital with a high risk money management account. Pure scalping.
d) What Kind Of Trader Are You?
I used to be a trend trader. Not anymore.
I am currently a reversal trader or a counter trend trader.
I am a weekly swing trader and also a scalp trader.
I have different trading accounts for different trading styles.
On my weekly swing trades, I only risk 1% of my total account size.
My general scalp trades, I only risk 3% of my total account size.
Most recently I am testing a high risk scalp strategy. I risk 25% of my total account size.
e) What Is Your Edge Over Most Other Traders?
I am fast at cutting losses.
Have a very good understanding about probabilities and expected value.
Good emotional self control.
Outstanding self-reflection.
I can hold trades for a long time.
f) Quarterly, Monthly, Weekly and Daily Non-Monetary Trading Goals
Daily: I will follow my checklist and my trading plan.
Weekly: I will have entered all trades into Edgewonk and made my analysis before the next week starts.
Monthly: I will have managed to keep my Tiltmeter green for the whole month.
Quarterly: I will have a profitable (non-losing) quarter and avoid major trading mistakes.
2. General Trading Rules - The Framework
a) The most essential rule - Use Your Checklist
#1 The setup meets all my entry criteria
#2 The trade is in my trading plan
#3 No news announcements ahead
#4 The trade is in the direction of the trend
#5 The risk/reward is acceptable (Only applicable to swing trades)
#6 I feel good emotionally and physically
#7 I accept to lose
b) General Money Management
On my weekly swing trades, I only risk 1% of my account balance per trade.
If I am scalping, I only risk 3% per trade.
If I am scalping aggressively with hedging strategy, I would risk 25%
I use different accounts for different trading styles.
I do not need a income from trading to support my lifestyle.
My goal is not to make money, It is to be a success!!!!
c) Total Risk And Exposure
Weekly swing trades, If more than one setup, I will not risk more than 4% on all trades of my account balance.
d) Emergency Stops - When To Step Back
If I am experiencing a lot of stress at work or in my private life, I stop trading.
If I feel sick, like having the flue, I stop trading.
e) Pre-Trading Routine For The Trading Week / Day
I will look at the economic calendar.
I will also be watching YouTube, Tradeciety.com and Forex.Today
f) When To Enter Trades Into Your Trading Journal
Once I am done trading, just before I would go to bed.
g) When To Do Your Analysis, Performance Review & Trade Plan Revision
After 50 trades - A complete and thorough trades analysis.
During the weekend - Review all trades of the past week.
At the end of each trading day - A short review of all you're trades of the day.
After every trade - Perform a quick sanity check to avoid revenge and over trading.
h) What To Do After A Winning Trade / Losing Trade
Did you follow all your rules and adhered to the checklist?
If it was a losing trade, were all the entry criteria given or did you break the rules?
Could you have extracted more from a winning trade?
Don’t focus on the outcome too much, but adopt a process-oriented mindset.
Often, stepping away after a losing trade and entering the trade into your trading journal
can already make a huge difference and calm you.
j) Improvement Loop: Learning and Education
How much time per week do you assign to improving and working on your skills?
Learning by doing doesn't work in trading and the best traders understand that it is
the work they do away from their charts that make the difference in their trading.
Reviewing the trades in your trading journal, studying trading books and pro-actively
learning is very important on your path to becoming a better trader.
k) Punishments
If I break one of my rules, I will not drink any red wine over the weekend.
l) How To Keep Emotions Out Of Business – Know Your Numbers & Probabilities
Write down the hallmark numbers of your strategies.
Always know where you are at the moment.
Are you currently in the middle of a winning streak?
Then, don't become overconfident.
Did you just lose 5 trades in a row?
Then stay away from revenge-trading or trying to make it up faster.
Always ask yourself: Did you cause the losses or did you follow all your rules?
Something might have happened that messed with your strategy and/or your performance.
Don’t just blame the markets and look for a new strategy – losing streaks often provide great learning opportunities.
m) The Rule To Change All Rules
When are you allowed to change the rules of your trading? - If it works, I will never change.
When can you change your risk management? - As soon as I am not comfortable with it anymore.
3. Strategy Specific Rules
Weekly swing trade strategy:
I use Wayne McDonell methods.
A very simple and stress free strategy
Use Weekly Pivots
Only enter trades on Monday - Start of a new week.
Pre-requisites for this strategy is getting you're bias right.
Are you a BULL or a BEAR!!!! Explain why!!
If you are a BEAR and the market opens near or at WM3
You're target for the week will be WM1
If you are a BULL and the market opens near or at WM2
You're target for the week will be WR1
Examples from this week:
For some more clarity watch this:
Inserted Video
Scalp trade strategy:
I have tried numerous scalp strategies over the years.
The one that most definitely stick with me and my personality is THV.
I am using THV V3.
Many thanks to Cobraforex and his team.
For more info about the rules about this strategy : http://www.forexfactory.com/showthread.php?t=127271
Many thanks to Stratman on his YouTube Videos:
Inserted Video
Inserted Video
Extreme High Risk Scalp trade strategy:
For this strategy I have included a trade explorer.
Starting with 200 USD
I was influenced by this idea for a very long time now.
I read an article from Moritz about "Ideas For Growing A Small Trading Account: Paradoxical Intervention"
I also stumbled upon http://www.forexfactory.com/showthre...27#post8529527
Made me think...
For this strategy I will be using Steve Hopwood's Multi purpose trade manager.
A EA with hedge functionality build into it.
I see this as a personal challenge, if all fails this account will go bust in no time.
Risk 25% per trade using no stop loss.
If trade goes against me, at 10 pips the EA will enter a hedge trade.
This hedge trade will be @ 120% value of original trade.
If trade goes against this hedge trade, at 10 pips the EA will enter a hedge trade.
This hedge trade will be @ 130% value of previous hedge.
If my original trade is not hedged an it goes for me.
The EA will enter a stop at break even +1 pip, only if it goes +5 pips in the profit.
Will activate a jump stop of 5 pips.
I will attempt to do 3 trades like this per day.
Using THV V3.
My target per trade is 12% profit.
This will most definitely test my emotional capital.
Best Regards
Wim
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If it can happen and it is bad for you, then it will happen...