Disliked{quote} Here is what I have learned so far. 1stly by having a $50 000 demo account, you eliminate your chances to trade with Fear, when you trade with fear, you dont think rationally and clearly, so by getting the fear out of the way, you can start to subconsciously form positive pathways in your brain that confirms every month by making a consistent profit that you can make a consistent profit each month indeed. So after 3 months to year trading on a demo account a certain strategy/way it becomes second nature, later you just see the perfect setup...Ignored
From Post 844
Quoting BenjaminIs
{quote} Hello KeepCalmFX and raveon and anyone else that can explain what you have learned. We have two answers now , mine and wayfarer. Some of the others are not online !!! We do nothing for the moment not until at least 2:15 PM after the FOMC Minutes are released in 8 minutes. Then I will return and suggest your first trade.
Here is what I have learned so far.
1stly by having a $50 000 demo account, you eliminate your chances to trade with Fear, when you trade with fear, you don’t think rationally and clearly, so by getting the fear out of the way, you can start to subconsciously form positive pathways in your brain that confirms every month by making a consistent profit that you can make a consistent profit each month indeed. So after 3 months to year trading on a demo account a certain strategy/way it becomes second nature, later you just see the perfect setup with the money flow, within the trading plan and you don’t think twice to enter. So I believe then you would be able to treat your live account as the Demo account you trained on. Just my opinion.
“You must have the desire, the interest and the DISCIPLINE to control your FEAR and your Greed otherwise you will lose” You must also control your EGO, if you have a few winners, then don’t think you know what the markets will do next, the next trade could be a loss, so you must have the disciple to stick to your trading plan, also don’t increase your position size now because you had a few good trades, the next loss may be just around the corner. The market is always write and the trend is your friend.
Through doing research you become aware of newsletters/blogs/sites/writers you can trust for their honest opinions, the facts, so the reality and not perception that people want you to believe or someone else’s perception because he is bias. Like Benjamin showed us a lot of times, with his experience he came across sites and bloggers/writers you can trust more than others, because it is the truth, not his/her own perception or the way he/she wants you to think. The money flow sets the trend.
Then you take the information and start with a trading plan.
After Benjamin’s research, he came to the conclusion that for the following 3 months the main trend would be as follow for the following instruments, it can change if new factors came into play (4 trade plans):
- US30 – Short (100 units)
- JPY- Short (100 units)
- Silver- long (100 OZ)
- Gold- Long (5000 OZ)
For the next 3 months the market will not go short/long every hour of the day, because the market ebb and flow.
So even though the main trend is short for the US30 for the next 3 months, the market will go long/retrace at times. (We must also keep up to date with news, because if there is a drastic change our trading plans might also change.)
So each day, we start trading, we must confirm if it is risk on – market going long or if it is risk off – market going short on the US30. (We don’t look at other charts to trade, except our trade plans.)
This you can see on a 1 hour, 4 hour chart.
If it is risk on, we stay out of the markets, if we have positions open that is fine, because we have a very good Risk Management in place.
As he also explained many times, “When the markets head down and we have Risk Off the money flows into US Dollars first and then the money is parked usually into US Bonds so the bonds go up and the yield goes down. Money also flows to USD/JPY”
We should preferably trade between 2 AM EST and 5 PM EST. Benjamin start at 2 AM EST because that is when Frankfurt opens one hour before Europe fully comes on line and the Money starts to Flow again since Japan has gone home. The real action is between 8:30 AM EST and 4:30 PM EST.
The duration of a trade can be as quickly as 15 minutes to one hour or in cases where we have a DRAWDOWN longer. He take +/- 25 trades a day if I can remember corectly.
We wait for big news like NFP to see what the markets does before entering a trade. Again patience is key. When we are in profit, +/- $250 we will move our stop loss to breakeven, there after move his SL every 25 pips in profit. If the market hits our positive SL then it is fine and we move to the next opportunity.
Our risk/reward is 1:3, we add our stop loss and take profit immediately after we place an order.
We can take the profit if we have a good profit, my personal opinion, $850 - $1000 is a good profit. Like Benjamin says : “"A Bird In Hand Is Worth Two In The Bush" and ”You Can Never Lose Money By Taking A Profit” So we are not greedy in letting our profits get eaten up as the market ebb and flow, we take our cut and wait patiently for a price signal to re- enter the market.
Sometimes, especially if you have not time to watch your chart every hour/4hours and can only view it daily, then by placing a 1:3 R/R ($1000 risk, $3000 reward), you can leave the markets to do its thing, because we now have an edge, because we know the direction of the main trend.
At no time can there be more than $10,000 US Dollars of the $50,000 US Dollars in the market. This formula is 20% of the trading capital.
There is no set rule that we need three positions on each Trade Plan. What we do is to make sure that the loss on any Trade Plan since we can be wrong is 6%.
So as Benjamin said, if we are trading US30 and we enter the first position and it does go up for a while against us of say - $ 500 then we enter our second position with same 1:3 R/R, usually if not always when it turns around the last position put on whether the second or third if need be is the most profitable one. This is where the charts are very helpful as we can see Support and Resistance and also here the SAR, FRACTAL and Awesome Indicator helps very much. More on these indicators on Post 705, 706, 708.
If you have your first position on and it moves into profit and it build momentum, this is when you can enter your 2nd position. And if you are in a drawdown of say $ 500 with your 1st position then you add the 2nd one and as the 2nd and 1st one is in profit you can add your final position with moving your SL to breakeven ect.
No one knows what the market will do, all we do is enter the market with our edge (Money flow) and Technical tools, and then we have the best probability of a successful trade and watch what happen. If you take a loss, then it is fine, not all of our trades will be winners, you will never have a system with 100% success rate.
I still have a lot to learn on the fundamental side/money flow and I also must still work on my fear of missing out, not to enter when I see a setup but wait for confirmation before I enter.