I have been an active trader for the best part of 4 years now and only recently have a been having some good success. Until recently (before December 2008) I had made my way steadily towards the abyss of failure (i was failing but hadnt reached failure) through a complete lack of discipline in all areas (plan, method, MM and risk etc)
I had a change, a big mental shift, and it is what I will get into during my little ramble. I hope to get some feedback from others in the same situation or even those who are struggling and find this thread useful.
2009 was like a final straw. I had been circling FF threads like a hawk trying to find the answers to a question I hadnt thought about. I was looking for something that would give me the best bang for my buck (free), a system that would be flawless, unparalled in profit vs loss and something that would allow me to relax. I searched end to end but alas couldnt find anything. I did however come across a thread that was interesting that really opened my world up. While the thread was interesting it was more or less 2 individuals whose words shocked me into reality.
From there I did some research, read more on one of the particular individuals who out of the 2 has changed my mental approach greater and whose work I have implemented into my trading since becoming aware of it. I will admit that at this time I do not follow it 100% as mentally/emotionally I am not completely ready for the full experiece, however thus far it has significantly improved my trading in all aspects.
The individual is Joel Rensink and his workings on Infinite Yield have shaped my past 6 months of trading, given me the biggest 'light bulb' moments and have created much deeper trades than I would previously challenged. However im not here to right a biography on the above, but more or less add to something that happened (a number of times) that I dont see much in the areas that I thought would (sounds confusing, I elaborate)
I have recently been trading 2 systems, both have proven to be very useful however while they do offer a good robust history, they are typically long term trades requiring a greater TF outlook in order to secure maturity, which suits my current lifestyle to a T. I was however last week looking at a very low timeframe thread (a couple actually) and while I liked what I saw (im not suited to long hours in front of a screen) in terms of method, there was a limitation placed on profit, as is the case with most scalping. This lead me to wonder.
Most (if not all) of my trades are taking with the outlook to try to maximise the Reward factor, and this stems from the workings of Infinite Yield. It is about holding trades for as long as they stay in the field and trying to get the maximum out of them. The downside is that you will at times take some losses when there was ample gains. Now I know what most of you are thinking but bear with me. While the gains can become losses (unless you adopt a half off at 1:1, a move to BE after X pips(both of which I do use)) when the market rallies for a long period of time your original position can stay intact for a long time. Sorry if this seems like dribble, i will try to get to the point soon.
So while reading some of these 1 minute, 5 minute and 15 min threads I was surprised to see very few, if any traders take trades for a great period of time. Most risked x pips and took profit a x pips (some a x-2) which to me seemed very limiting.Now this is where I am looking for discussion because I dont trade very often less than 1 hour (and even that seems taboo sometimes) so my experience in this department is limited. So my wondering and thought process was, If you took a trade on a TF of say 1M, where the risk was very small, in most cases 10 pips including spread, and where able to hold, your reward could be potentially huge.
SOOO instead of wondering too much longer I took my PA outlook and began plotting some lines on a TF that suited me, came up with a small plan, dropped TF to 15 mins and waited. I didnt have to wait too long. There were new Lower Lows and Lower Highs forming and I simply waited for a PA candle to form after a pullback to a previous LH (which I got as a shooting star or 10 pips risk total) and set a trade for the break or that candles low. I got it almost immediatly and my 2% was on the table. Well something must have favoured me, I was with the greater trend down according to daily charts but I still was surprised by the swiftness of the move. It broke down almost 30 pips (3x R/R) in the 15 mins which prompted me to act on my SL. I would normally take 1/2 on higher TFs, however this particular time I was happy to just move to BE.
The trade continued, and after moving to BE I left for about an hour knowing that the worst case outcome (providing something funky didnt happen) was a BE result. What I got was just over 100 pips. I exitted the trade (because I was overwhelmed more than anything) at close to 10x Risk Reward profit or over 20% account growth. The trade continued south a further few points and that is what I want to get at primarily.
At that moment I had a small mental shift. Account growth/decay is the end product of successful and unsuccessful trades. I have looked at Risk/Reward as an important fundamental to having a growing account. So for me the question was more is it possible to do on a regular basis? Can you take your small risk trades on small TFs and mature them past a point of limitation? I read 1 of the posts (from a 1 minute thread and ill post the author if I find it again) that said 1 minute charts are like trading the live market, the action is happening there and then. So in this event if you got in with a small risk and could hold, your small risk could be the trade that changes your account forever.
Im not a get rich quick guy, in fact the opposite since having the mental shift. My thought process came about after the experience. If it was possible, and this is once again where I am unsure due to my lack of small TFs, to take 2 or 3 trades a day, average risk 10 pips, and hold them then are there traders doing it currently it. From a R/R POV there would be a compelling argument that the smaller the TF the better the opportunity for a huge reward against a small risk.
Feel free to post your thoughts. If I can add anything to the madness I will. Please understand this is not my usual way of trading and seldom do I take more than 3-4 trades a week. I know there are a number of people who have stated they trade small TFs, so if the method has a definable edge, is it possible to take a much longer outlook to profit taking.
Thanks for reading my dribble lol
Happy trading
Razor
I had a change, a big mental shift, and it is what I will get into during my little ramble. I hope to get some feedback from others in the same situation or even those who are struggling and find this thread useful.
2009 was like a final straw. I had been circling FF threads like a hawk trying to find the answers to a question I hadnt thought about. I was looking for something that would give me the best bang for my buck (free), a system that would be flawless, unparalled in profit vs loss and something that would allow me to relax. I searched end to end but alas couldnt find anything. I did however come across a thread that was interesting that really opened my world up. While the thread was interesting it was more or less 2 individuals whose words shocked me into reality.
From there I did some research, read more on one of the particular individuals who out of the 2 has changed my mental approach greater and whose work I have implemented into my trading since becoming aware of it. I will admit that at this time I do not follow it 100% as mentally/emotionally I am not completely ready for the full experiece, however thus far it has significantly improved my trading in all aspects.
The individual is Joel Rensink and his workings on Infinite Yield have shaped my past 6 months of trading, given me the biggest 'light bulb' moments and have created much deeper trades than I would previously challenged. However im not here to right a biography on the above, but more or less add to something that happened (a number of times) that I dont see much in the areas that I thought would (sounds confusing, I elaborate)
I have recently been trading 2 systems, both have proven to be very useful however while they do offer a good robust history, they are typically long term trades requiring a greater TF outlook in order to secure maturity, which suits my current lifestyle to a T. I was however last week looking at a very low timeframe thread (a couple actually) and while I liked what I saw (im not suited to long hours in front of a screen) in terms of method, there was a limitation placed on profit, as is the case with most scalping. This lead me to wonder.
Most (if not all) of my trades are taking with the outlook to try to maximise the Reward factor, and this stems from the workings of Infinite Yield. It is about holding trades for as long as they stay in the field and trying to get the maximum out of them. The downside is that you will at times take some losses when there was ample gains. Now I know what most of you are thinking but bear with me. While the gains can become losses (unless you adopt a half off at 1:1, a move to BE after X pips(both of which I do use)) when the market rallies for a long period of time your original position can stay intact for a long time. Sorry if this seems like dribble, i will try to get to the point soon.
So while reading some of these 1 minute, 5 minute and 15 min threads I was surprised to see very few, if any traders take trades for a great period of time. Most risked x pips and took profit a x pips (some a x-2) which to me seemed very limiting.Now this is where I am looking for discussion because I dont trade very often less than 1 hour (and even that seems taboo sometimes) so my experience in this department is limited. So my wondering and thought process was, If you took a trade on a TF of say 1M, where the risk was very small, in most cases 10 pips including spread, and where able to hold, your reward could be potentially huge.
SOOO instead of wondering too much longer I took my PA outlook and began plotting some lines on a TF that suited me, came up with a small plan, dropped TF to 15 mins and waited. I didnt have to wait too long. There were new Lower Lows and Lower Highs forming and I simply waited for a PA candle to form after a pullback to a previous LH (which I got as a shooting star or 10 pips risk total) and set a trade for the break or that candles low. I got it almost immediatly and my 2% was on the table. Well something must have favoured me, I was with the greater trend down according to daily charts but I still was surprised by the swiftness of the move. It broke down almost 30 pips (3x R/R) in the 15 mins which prompted me to act on my SL. I would normally take 1/2 on higher TFs, however this particular time I was happy to just move to BE.
The trade continued, and after moving to BE I left for about an hour knowing that the worst case outcome (providing something funky didnt happen) was a BE result. What I got was just over 100 pips. I exitted the trade (because I was overwhelmed more than anything) at close to 10x Risk Reward profit or over 20% account growth. The trade continued south a further few points and that is what I want to get at primarily.
At that moment I had a small mental shift. Account growth/decay is the end product of successful and unsuccessful trades. I have looked at Risk/Reward as an important fundamental to having a growing account. So for me the question was more is it possible to do on a regular basis? Can you take your small risk trades on small TFs and mature them past a point of limitation? I read 1 of the posts (from a 1 minute thread and ill post the author if I find it again) that said 1 minute charts are like trading the live market, the action is happening there and then. So in this event if you got in with a small risk and could hold, your small risk could be the trade that changes your account forever.
Im not a get rich quick guy, in fact the opposite since having the mental shift. My thought process came about after the experience. If it was possible, and this is once again where I am unsure due to my lack of small TFs, to take 2 or 3 trades a day, average risk 10 pips, and hold them then are there traders doing it currently it. From a R/R POV there would be a compelling argument that the smaller the TF the better the opportunity for a huge reward against a small risk.
Feel free to post your thoughts. If I can add anything to the madness I will. Please understand this is not my usual way of trading and seldom do I take more than 3-4 trades a week. I know there are a number of people who have stated they trade small TFs, so if the method has a definable edge, is it possible to take a much longer outlook to profit taking.
Thanks for reading my dribble lol
Happy trading
Razor