Trade#57 and #58 running.
The Thief of Wall Street
Your and My Lessons Learned Losing and Gaining in Trading 5 replies
Lessons Learned during System Development 29 replies
Rookie Lessons Learned 5 replies
What i learned today 14 replies
Things I've learned (as a n00b) 6 replies
DislikedEntered Trade #58 few hours ago. Long for 100 pips.
Trade#57 and #58 running.Ignored
DislikedTrade# 57. Running
Trade# 58 concluded. 1%
Trade# 59 entered. Long for 160 pips
Trade#59 is last of the 2 trade set-ups. No matter what is the outcome of these two trades, will switch back to "One trade at a time" policy.Ignored
DislikedPost 1 of 4: The first and foremost lesson learned is to Have an Edge.
The edge means a “Method” or a “Result of Analysis” that puts traders in advantageous position in such a way that odds are in their favor if their analysis is right or their method is sound.
[color=black]An edge can be a conclusion regarding market’s future direction after analyzing fundamentals or it can be a technical method that is likely to yield profit over a certain number of trades. The profit is net result...Ignored
Disliked100% right, have an edge.
An Edge does not in anyway mean an exclusive abstruse methodology or esoteric privileged information for an elite class of Speculators that once discovered will open the paths to the mythical riches of the Foreign Exchange Market.
In my Research I have found that we constitute 10% approximately of total market share and the 95% of failure rate is actually not entirely truth.
Retail Forex is found to be dominated by Uninformed Market participants, and Over leveraged practices that lead to the demise of 52% of Oanda 2011...Ignored
DislikedThanks for your contribution Red.
You discussed several interesting points, all of them very valid and pertinent. I would just like to add that:
1. Many do not relate thier risk per trade with their method's win/loss ratio of trades, a basic Money Management mistake. With 60:40 win ratio of my system, I take not more than 1% risk per trade knowing that there can be 40 consecutive losses. Like you mentioned there is a limit to how much one can afford to lose (Finite Number of Tries). That puts my trades within the definition of calculated...Ignored
Dislikedthanks for this discussion Chicky
you gave me an idea
so then VAR+Monthly ATR, you can find a way to calculate realistic ROI target
which in turn you can derive ideal account size taking this values into account in order for you to trade for a living within reasonable risk parametersIgnored
DislikedDefinitely. If one strictly follows the trading method and Money Management rules. ROI should be based on realistic risk/reward target per trade PLUS achievable number of trades per year.Ignored
Dislikedchicky in your opinion, the use of TP is it just to rough out the human intentiosn of wanting more and fearing of losing profit into an already planned ROI plan aka a set Level = TP order.
is that why you use TP? to stay as precise to ur plan?Ignored
DislikedThere may be many differing opinions on this. However, I am not concerned with others. I use definite TPs and SLs in most of my trades for few basic reasons.
1. Currencies tend to keep price balance. If I don't take profit, it may come back to my entry or close to it, washing away all my profit or atleast significant part of it.
2. Many of my trades are based on bounce expectations and estimate of their sizes. Therefore my profit is mostly because of temporary price fluctuations at high interest points for both bulls and bears. I have no choice...Ignored
Dislikedmakes sense, to correlate % risk to performance record, that would give a better picture of your overall VAR, according to average draw down.Ignored
Dislikednot sure i understand what you mean chicky
vietnam?
never been there.
by the quote you mean VAR Value At Risk?
or my signature?
AVT INVENIAM VIAM AVT FACIAM
either i will find a way or make one----Hannibal when told there was no way he could cross the alps with his massive army and elephants
i was born well after the Vietnam war,Ignored
DislikedLOL. I read it as Vietnam.
One more LOL. Not everyone goes there or anywhere else to wage a war. I went there for some other reason........decades after the war.Ignored
DislikedLOL. I read it as Vietnam.
One more LOL. Not everyone goes there or anywhere else to wage a war. I went there for some other reason........decades after the war.
OK. now I noticed some familiar characters in your avatar line. What about Greece? Athens? I miss those Omonia-Acropolis walk and all those Brizolas and Ouzo 12 (Duo Deca)Ignored
Dislikedoh yes..........beautiful Greece
it's classical Greek
an Archimedes quote
" give me a place to stand, and i shall move the world"Ignored