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dkrock Oct 10, 2019 7:36am | Post# 421

{quote} Hi DKROCK, please can you talk more on this, especially the use it part. Thank you
About 7 years ago, I had a strong system that traded low time frames. It worked so well, that I only lost about 1 out of every 20 trades. However, that one losing trade often was larger than it should have been because I was so addicted to winning that I would hold onto it thinking it would turn. Before that system, I used to just flip trades, lol, so if it started to lose, I closed and went the other way. No worries. It took a little time to lose 1 of 20 trades, and I only let it happen about three times. Then I began to figure out why I was holding losers and hoping they would turn. It was an old problem from when I first started trading Forex, that I had fixed, but then removed from that strategy to streamline it. So I stopped trading to fix it. Now, a loss is either a head fake that actually fooled me, or a low range that didn't cover the spread. Either way, I see it, and know how to react, and so I don't hold onto losers hoping they will turn anymore. Well, almost, lol. Now that I think about it, if I somehow get caught in a consolidation area, I might hold on if I think I will be correct when the consolidation ends. Normally I can see those too, but sometimes it takes a little while for a trade to develop. Each trade is different, and unique, but I have developed measurements to identify most patterns. As a business, my goal is to make money, not lose money, lol, so now that I have a better idea when I am wrong, I stop the loss a lot faster. Sometimes I reverse the position, if I can tell I was more or less gambling on the wrong side, or other times I close and sit out because it looks like I entered a flat zone. Anyway, my advice is to limit how much you lose because that makes it easier to recover your money. Think of it as if someone is cheating you at poker and trying to take your money. Will you keep playing and let them, or walk away? If you want to intentionally lose, you probably should not trade for money.

Speaking of poker, if you ever play online poker, you might run into players who get all excited when they are winning hands and might even trash talk, lol. If you look under the surface, that means winning or losing is determining their personality. They are stuck in the moment and not in the longer term "numbers" game. If you trade like that, where your ego is controlling your mood, then you could have a tendency to be stubborn when you are wrong and that can be costly. You have to just follow the bouncing ball, making yourself a manually controlled EA, and not let your emotional judgement influence you. Close the losers and don't "hope". Because so many people lose trades, it seems logical they will be betting against you a lot, lol. If enough of them do it, it will cause you to lose, so just close the trade and get out of the way. Let them do their thing, and reenter when the chaos is over. Try to use logic, not emotions. It is not a casino where once you place your money on the table you lose it all if you are wrong. Once you see you are wrong on a trade, take your money out of it. In order to do that, you have to develop something that shows you when you are going to lose. That is an exit plan. Anyone can enter, lol, but the 5-25% of winning traders know when to exit. Once you think you have a good entry plan, the exit plan is your next priority. After that, testing becomes your priority to be sure you are profitable in the "numbers" game. The "numbers" game is simply whether or not you make money over an "X" number of trades. While each trade is different, you can still create an average rate. This is vital for your confidence first, and your account second.

I hope I didn't ramble too much. It all seems logical, however, it is not easy. Good Luck.

tzamo Nov 13, 2019 10:41am | Post# 422

Proverb #14. This one is a quote, but so important for setting goals. If you think you can or think you cannot, you are correct. "No more effort is required to aim high in life, to demand abundance and prosperity, than is required to accept misery and poverty." Napoleon Hill
Dear Dkrock,

I hope you have been well, I absolutely love that quote. I came to understand this year that it is just as easy to do something as it is not do do something, very similar to Napoleon Hill's quote. I know it sounds strange, but has worked for me to be more productive Thanks for sharing it as it adds further meaning for me. I am taking the same approach in my science.

All the best,

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