Thanks for posting this! I couldn't have said it any better!

Nice job twinchell! This should be required reading for all new traders. The fact is that position sizing can have a much greater impact on the returns of an account than the system used. Yet for every 500 threads on systems we get only one thread ...

It is possible to create a system that has discrete entry and exit rules that don't include profit target / stop loss orders, and that isn't a SAR system, so I wouldn't say only. However, I agree that the SAR system is the most obvious example of a ...

It is clear that you get it. Nice to see a well thought-out explanation from testing and actual experience rather than the commonly repeated aphorisms of the guru of the month taken on blind faith.

Details, details. Just think happy thoughts and none of this mundane TP/SL, profit factor or system mumbo jumbo will matter. Go to your happy place now and profits will be sure to follow. After all your system has nothing to do with your success as ...

Yes by all means losses are a direct result of a bad attitude. So think happy thoughts, and soon you'll be pippin like a pro regardless of what method you use. Piece of cake.

Craig, money management has a very specific definition and means something other than what you're describing. Here is the definition from Wikipedia: Boiled down to its essentials, money management deals with what percentage of the account to risk on ...

I'm going to clarify Craig's post a bit to reflect my own experience: Once you have a profitable system, the most important aspect of trading is risk management. If your system has a negative expectancy, no amount of risk management tinkering will ...

No it isn't on the same time each month. If you want to know when the dates are, type "FOMC dates 2006" into Google and look at the first link. Or if you're lazy just go here: http://www.federalreserve.gov/FOMC/ Also check out the calendar right ...

Pound futures represent 62,500 pounds rather than the 125,000 euro represented by EURO FX, so each 1 pip fluctuation on cable futures is +/- $6.25, so your leverage figures are off by a multiple of 2. $6 (or less) round turn commissions are ...

And yet when I handed my guitar that I'd been plunking around on for weeks to a master musician and listed as he played beautiful melodies, riffs and chords, I started to believe that I too could create such music. And in the hours and days that ...

Yes I think that's the whole point of the EA concept - that it is mechanical - meaning that little gizmo buys and sells without any funny mentals attached. Discretion is a valid concept for experienced profitable traders. The reality is that new ...

The lowest IBFX EUR/USD offer that traded was right at 9:00 AM Eastern time during the TIC news announcement. The offer reached 1.2513, so you are not entitled to a fill. By comparison Oanda's lowest offer reached 1.25167 at that same time. The ...

My reaction was zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

Let's get something straight about this statement and what is being implied. You may not have fixed spread broker problems but you do have variable spread broker problems. Those using fixed spread brokers will not experience some of the problems you ...

Performance bond on EC (EURO FX futures) is $2,835 initial, $2,100 maintenance. By my calculations at the current price level that comes to 55x leverage for initial, 74x leverage for maintenance. This is overnight leverage. Most firms will let you ...

Nice call MM!

I think you're asking the wrong questions. There are a million and one ways to do something wrong. If you tried to write a compreshensive list of ways to fail you would always find new innovative ways to fail being pioneered by brash young traders. ...

Oanda is artificially keeping spreads wide for about 2 hours longer on Sunday evening than is warranted by available liquidity offered by the major worldwide banks. The currency futures markets open at 6PM Eastern time and major world banks start ...

I wanted to make a couple of comments in the aftermath of today's NFP report. I think a lot of traders feel the same way DePastino feels. Even though I approached things correctly and had a good result from the report, I'm evaluating my methods and ...