Strat's PASR Long Term, Stress Free Trading

It seems to me like you are suffering from trading psychology, specifically NO PATIENCE and ABSOLUTELY NO DISCIPLINE without even considering your technical analysis skills.

Until you recognise this, it does not matter how good you are in your technical anaysis skills as your trading psychology will ALWAYS let you down (read LOSE).

If I'm wrong on this let me know because until we find your problem and the cause, we can't work on the solution.

""Finally swallowing my own pride and acknowledging the fact that in order to make a change that makes a difference I need to do something different""

To acknowledge this and DO something about it is a step on The Path of Learning.

Now, the first thing you must do is forget everything you already know and start with A BLANK SHEET OF PAPER and AN OPEN MIND. Go to the beginning of The Path of Learning by starting again at the beginning of this thread only this time, READ and UNDERSTAND each and every post. Anything you don't understand, ASK! DO NOT TRADE or EVEN THINK ABOUT TRADING until you have caught up on the thread. Then let us know where you are by posting comments on set ups etc but again, DO NOT TRADE.

1. https://cdn-assets.forexfactory.net/...ar19097_10.gif Baba G
2. Joined Sep 2006 | Status: Hors non numero nisi servitas | 733 Posts

Hi team im back........hope you all had a nice holiday......only had 2 trades last month......nice though.....cadyen or swiss yen(cant remember) short at the begining of april and a little gbp/swiss short about 2 weeks ago....nice

didnt short any yen ......(i wish id got a pin long there)...but hey ho.

Other than that just waiting.

Been demoing a new platform to accommodate......NEW CLIENTS!!!!should be all done by next week fingers crossed.... ups my account 400%,which is 400% up already from Oct 08 because of new investment....so thats 800% growth in my managed funds since Oct last year.....shizzer

Other than mentioning it cause im sssssssssssooooooo exicted.......... I wanted to point out that this is why we train our minds.Im so glad i really waited and did it properly.So im walking on air here looking for loot 4 years in the making....sweet as a nut....g

1. https://cdn-assets.forexfactory.net/...ar19097_10.gif Baba G
2. Joined Sep 2006 | Status: Hors non numero nisi servitas | 733 Posts

Hey Tiaforex....you have made a valid observation......but such entries like the ones you mention have a higher win rate if you only take them in harmony with the boss or big boss bars or a strong trending market........so by adding this harmony as a system feature and reducing your risk%........it becomes nice.

A nice thing to do in back testing is once you have a result like you have go back and overlay the higher time frames on the daily action your looking at....

If you can read price action it makes for good reading...

where are you in the cycle?...demo,live ect......good to see you on here.....g

1. AstonDan
2. | Joined Mar 2009 | Status: Member | 679 Posts

Hi all,

I’ve been meaning to post this for a week or so but couldn’t quite figure out how I was going to word it (or even write it) for fear of jinxing myself!

It was something I touched on in a roundabout way last week with a reply , and the long and the short of it is (pun intended), since moving to higher timeframes, joining this thread, keeping a journal and generally treating this with the respect it deserves, I am profitable for the first time!

I hesitate to say consistently profitable as my journal only goes back six weeks and that’s a drop in the ocean, but I have not had a losing week since starting it.

Initially, I was taking a lot of ‘freestyle’ trades in addition to PASR trades, simply because I was trigger happy and felt I had to be trading. But since that first week (journal), I’ve been able to scale back, exercise patience and try to only pick the set ups which jump out at me.

If I have to look too hard for a trade, then I don’t take it. There have to be clear reasons in my mind as to why I’m taking it; S/R, PA, clear profit targets and BE zones.

Once in a position, I manage it quite aggressively on DAILY bars. I will always set a realistic TP1 area which might not offer good R/R, but allows me to release capital back into my account and move my stop to BE, protecting my balance.

Then if it continues in my chosen direction, great! I’ll manage my stop to lock in additional profit.

I know this has the disadvantage of not allowing the market to naturally retrace, but I am very very reluctant at this stage to ‘give up’ profit back to the market, even if it is a simple retrace before continuing – I’ve taken almost maximum potential from that move and if it is going to pause before continuing on its way, then PA should give me an opportunity to board the train again.

Another thing which has naturally developed and which I didn’t think possible for me when Baba G mentioned early on was that I don’t even think about number of pips anymore, but instead think in terms of % account growth, % account risk etc etc.

For example, I took two trades last week (plus one ticket on AUDUSD which wasn’t filled), which gave me 6% account growth - I couldn’t tell you the number of pips involved. When I remember trying to trade the 15M and thinking I had to make so many pips a day/week etc I don’t know whether to laugh or cry!

My account now stands, in 6 weeks, at 13% profit, with fewer trades yielding more profit.

I’m well aware these are early days for me and I’m not naive enough to think I’ve cracked it, but as quite a few people have joined the Path of Learning recently, I thought I should share the positive difference which this thread plus Strat’s, Gianni’s, advice, have made to my trading.

I don't even feel like I’m being 'patient' anymore; I’m not 'waiting' for trades, I’m just taking the right opportunities when they present themselves. No pressure, no stress. I understand for some who are used to trading lower timeframes, it can seem like PASR is never going to show its head on the daily, but it does, and when it does...happy days!

Anyway, enough from me and I apologise if this seems like a ramble, but just thought I’d share my experience so far and extend my thanks to Strat and his team for their patience and support
Dan

Hi Strat

Thanks for your suggestions and for wanting to find out more.

I think that I am grasping the basics of the theory, but I haven’t progressed to the point where that knowledge consistently informs my actions. As you perfectly described it – knowledge ain’t matter if the psychology gets in the way.

I really like what AstonDan is saying about his development. Thanks for posting your thoughts! It’s really valuable stuff! You touch on a few key points that I need to take on board – from theory to practice. I regularly have quite a few really good trades but what happens after I get out of them is that I want to continue and that’s where I lose the bulk of my money. It’s about becoming more picky and trading only great setups.

“I don't even feel like I’m being 'patient' anymore; I’m not 'waiting' for trades, I’m just taking the right opportunities when they present themselves. No pressure, no stress.”

I believe that’s HUGE, because it sounds like a fundamental psychological shift, rather than “forcing” yourself against your inner drive. Congratulations man!

Strat you wrote:
“It seems to me like you are suffering from trading psychology, specifically NO PATIENCE and ABSOLUTELY NO DISCIPLINE without even considering your technical analysis skills.”

Thanks for the feedback! You are spot on of course. When it comes to trading I lose my mental composure at certain points. It’s like you know you shouldn’t but.... the Queen is enticing like Odysseus' Sirens.

There seems to be a specific pattern for me: Initially I tend to be focused, chilled out just waiting for my setups, enter my trade at the right time, ride it with a trailing stop (which I should manage less tightly though), eventually I get stopped out with a nice profit but then I think “What’s next?” And THAT tends to be my downfall. I jump on the next best trade, lose, jump on another one, lose and WHAM my daily profit evaporates into a loss. Repeat ad lib.

And yes, I will continue to read through this thread. No question. I am getting tons out of it – I am very grateful for the wisdom and fun you guys are putting into this!

Sid

Dan,

Thanks ever so much for taking the time to post this as this is the "proof of the pudding" that what we are doing on here really does work PROVIDING you READ, UNDERSTAND, LISTEN and are able to take a bollocking when you stray off The Path!

Just for everyone's benefit on here, I want to share a few more things that Dan brought up.

Dan right now, is our "STAR" student and is the inspiration for you all to follow. Don't think it came easy for him because it didn't and he had to go through what you lot are probably going through now - transition from a trigger happy gun totin' trader dude to a dedicated, patient and disciplined trader.

Dan was one of our "first" readers and posters on this thread, after Nicola, and, like Nicola, came to us with a trigger happy M15 trading attitude having joined a group of M15 indicator strategy traders.

Most short term methods/strategies and their followers tell you to set goals of say 20 pips per day or 100 pips per week or even higher. If that isn't loading you with STRESS and undue PRESSURE then I don't know what is!

It is IMPOSSIBLE and DOWNRIGHT SUICIDE to set targets like this. Why? Because YOU can ONLY take what the MARKET GIVES YOU! What do you do if the market is quiet and not really worth trading? Well, because you have this target, you HAVE to trade it. Guess what happens then? You lose! Now you are not only 20 pips behind on your target but you are now IN THE HOLE for the amount you lost! So next day comes and you are an absolute nervous, stressed out, freaked out, pressured out maniac which is a recipe for disaster BEFORE you even look at a chart. Add to this that on shorter time frames you are under a TIME CONSTRAINT and have to make decisions faster which usually end up wrong. Then you have indicators which lag so much that most of the move is over by the time your trusty indicator gives you a signal and by the time you enter, you are already going the wrong way!

So, enough of this tripe - if there are any of you lot still setting yourselves some type of goal - FORGET IT! DON'T DO IT! DO NOT PUT THIS ADDITIONAL STRESS AND PRESSURE ON YOURSELVES!

YOU CAN ONLY GET WHAT THE MARKET GIVES YOU

whether that is on a daily basis, weekly basis or monthly basis - IT DOES NOT MATTER!

ONLY TRADE WHEN THE MARKET HAS SOMETHING TO GIVE YOU

FORGET ABOUT SETTING TARGETS - what it is at the end of the month is WHAT IT IS!

STOP THINKING IN PIPS - FORGET ABOUT PIPS - think only in terms of % relative to your account.

Damn, I got on my soapbox and didn't realise it! Now where was I? Oh yes, Dan.

Dan didn't suddenly flick a switch and move from a trigger happy M15 trader to where he is now. He went through some rough times and had to endure some "Strat" massaging - some of which he didn't like! (I still remember that PM, Dan!). The point is, Dan WANTED to change, he saw the writing on the wall (Clapton is God), and was DETERMINED to do whatever it took to change. He got on The Path, strayed off The Path and got a bollocking! He kept going through this and PERSEVERED until we knocked some sense into him!

Now don't anyone think credit goes to us - as the saying goes "You can lead a horse to water but you can't make him drink!" We gave Dan the guidance and the materials etc., like everyone else on here, BUT it was UP TO HIM to use and apply them.

As Dan says, he has a long way to go but he is the furthest on The Path of Learning. As he progresses, he will come up against more and more psychology tests and as we know, these are the hardest to overcome. Greed, fear, patience and discipline are all waiting at the side of The Path to grab him by his short and curlys, so we wish him well and assure him we are here to help as we are for all of you.

So, recapping, Dan has moved from over-trading to ONLY trading a SET UP which he SEES, UNDERSTANDS and MAKES SENSE to HIM.

He has the PATIENCE to wait for the market to present trades to him.

He has the DISCIPLINE to PLAN his trades AND TRADE HIS PLAN WITHOUT any interference.

He has replaced pips with %

He has a journal/log of all his trades

He has removed stress and pressure from his trading

He has learned that LESS IS MORE (fewer trades with larger % ROI)

He no longer trades for the thrill, the adrenalin rush or the game - he is now ONLY trading for money.

Sid, (is that your real name? I didn't know there were any Sids left these days), if you REALLY want to improve as a trader you have to get over the "thrill" aspect of trading. As long as you are getting your "thrills" and "adrenalin rushes" from trading you will end up a LOSER. Until you can lose and get out of your "playing trading like a game" mentality, there is NOTHING we can do for you. THIS IS YOUR PROBLEM.

You have to be honest and seriously ask yourself this:

AM I WANTING TO TRADE OR MAKE MONEY?

ARE YOU LIVING TO TRADE OR TRADING TO LIVE?

Don't take the easy way out and state the obvious because your sub conscious, the little man in your head, the gremlins, the devils, the man in the mirror, will continue to dominate and control you until you accept the truth.

If trading provides you with your thrills then get the hell off here and buy yourself a Playstation or Wii or a pinball machine as it will be much, much cheaper!

You are not alone in this and you are not the first person I have said this to and you won't be the last.

Trading psychology accounts for 90% of our success as traders and tells us MORE about OURSELVES than any number of hours with a psycho therapist.

Trading requires, nay, DEMANDS, that you be HONEST with yourself and KNOW THYSELF if you are to be profitable and successful.

I can comment much more on this post but until you find out THE REAL REASON and WHY you are trading, I don't want to go any further.

I'm not really the best guy to answer on demo and demo account size because demo does NOT work for me. I can be the world's best trader and outperform anybody with a 95%+ success rate on demo BUT the moment I trade with REAL money and put my emotions in the equation, I drop down to ultra conservative trading. My fear of losing cancels out my risk averse approach.
For me and my trading psyche, demo serves no purpose because it doesn't bring my emotions into play. As an example, I have been running REAL money on my experimental momentum, cycles and momentum cycles stuff because that is the only way I can accurately measure their performance. In addition to knowing whether it is going to be profitable, I need to know how it affects me, how it plays with my emotions etc.
Since trading psychology is such an important factor, I don't understand why it (trading psychology) should be ignored by trading "false" money on demo. But that's me.
I do accept that it is useful for other people and right now Baba G is demoing crude with Nicola. So for Baba G, demo works.
As far as demo account size is concerned, my common sense tells me that you should demo with the exact same size of account as you will fund with real money.
I don't see the point or benefit of trading a $100,000 demo account if your real, funded account will only be $1,000.

You have missed a huge chunk out of this. To trade for a living, you have to treat it as a business, right? Now if you were setting up a business, what do you need most of? Capital. It is exactly the same with trading for a living. You set yourself up with a MINIMUM of 6 months living expenses or equivalent previous salary (1 year is much better). This is so that you can live in the event you don't trade or make a profit. This is independent of your trading account.

You do not pay living expenses out of your trading account! Instead, you sweep a certain % into your chequing account for that purpose.

This frees you up from having ANY targets whatsoever. Your income from trading will reflect and parallel the market. When the market is trending we make really good money, when it's doing nothing, we make nothing. Overall, in the course of a year, we will have made lots of money but it will have come in cyclic bursts so that one month might be peanuts while the next month may be equivalent to 6 months previous salary etc.

We have no targets, nor do we need targets - we just take what the market gives us WHEN it gives us - as simple as that.

Having a MINIMUM 6 months "living account fund" to live off is what most wannabe traders forget or ignore - they only think about funding a trading account. Doing without this is a recipe for fast failure.

Does this explain why we have no targets?

""What about next year though? If I haven't made enough this year for next year then the pressure is on""

Stuart, you have to go back to the "real life" business model. If you were running a business and it didn't make enough what would you do? You have to change it, and keep changing it until it meets your requirements.

You have two main options until you get it right:

1) Improve the ROI on your trading

2) Reduce your costs and expenses to suit your income

You must not pressure or stress yourself with a goal or target of x% ROI in trading as YOU have NO CONTROL over what the markets will do.

Let's say for the first 11 months of the year the markets were directionless (never happened but.....) and you had a profit target of 15% ROI but to date you are only 3% ROI, in other words, you are 12% behind your target.

This means you have 4 weeks left to make up that 12% of which 1 week is a holiday PLUS the month of December is always low volume and liquidity and not all that good for trading. How do you think you will feel going into that last month? You will be an emotional wreck and because of the pressure and stress you have burdened yourself with, will be "looking" for trades and making trades that are not there (very high risk) and will, more than likely, lose everything you have gained and probably more.

It is obvious to me that you are a salaried person enjoying the same income month after month. When you work for yourself, that "security" of a regular income goes out of the window. You now live off YOUR input and hard work. This brings freedom but also uncertainty. You have to accept that trading for a living will never provide a "regular" income, some months will be nothing, while others will bring more than you ever dreamed of. You will be living by the sword and dying by the sword and enduring feast or famine.

Now, there are things you can do to improve your ROI. You can have more than one method or system so that you can benefit from most market conditions. You can also have separate trading accounts - a regular account and an "aggressive trades" account. There are many things you can do BUT you can only do this when you have a MINIMUM of 3 years PROVEN, consistent equity growth, in other words, when you are experienced and successful.

For example, Baba G has two methods he trades, Swami S has two methods. I have several methods I trade.

As you develop as a trader, you will also develop other methods BUT first and foremost, YOU MUST LEARN THE BASICS as is being taught on here. Then, you must demonstrate consistent equity growth over a minimum of 3 years before EVER doing anything else. This is your foundation for your trading building block. Without the foundation (successful basic trading practices), your trading building will SINK and take you with it.

Use your "f12" key to move your charts one bar at a time to "relive" trades. This simulates trading the daily chart but from history.
This is also what you SHOULD be doing when you are practicing your PASR on historical charts.
Some wise man said "Practice makes perfect".

Quoting strat
12 pages per day - does this mean you are READING & UNDERSTANDING?


Most certainly. A few of the most important things I've learnt so far:

a) Patience. Wait for the price action in the right place. Don't try to make a trade where there isn't one. The best trades don't come along often, but when they do, they're worth waiting for. Confluence is best, s/r with fibs, MAs, etc.

b) Calculate the potential loss first, not profit. If you need a 100 pip stop loss to potentially gain <= 100 pips, not good. Don't trade it or trade smaller lots. Obviously depends on how risk averse you are.

c) Use the weekly to understand market direction. Use daily to look for entries in that direction. Again, waiting for price action around areas of s/r, preferably with confluence. If you look for entry on a lower time frame, always place stop loss based on daily.

Another great thing I've learnt is about market makers, and how they drive price to take out stops so the market can move. A shooting star tale above recent swing highs for example, will likely take out some stops and result in a good move south.

Probably a lot more to come, but I'm taking my time.

1. https://cdn-assets.forexfactory.net/...ar19097_10.gif Baba G
2. Joined Sep 2006 | Status: Hors non numero nisi servitas | 733 Posts

Its not that 2 trades are enough....man id love 1 a day.....but its not like that right now.

Thats all she has given.....but its enough im up.Even if i did a big fat 0% up but no losses im good....

OK, Stuart, you asked for examples of failed trades. How about an example of a trade that worked where Strat failed?

With regard to my cycles, momentum and momentum cycles work, I am now at the point where back testing shows them to be really sound and profitable. I now need to prove to myself that it works in real time with real money so I waited for the first opportunity to put my REAL money on the line (demo doesn't work for me)

This opportunity came at the doji (my data) on USDCAD on April 21. I entered my order at the close of the candle to go short based on my momentum cycles. The next day produced a doji IB so I CLOSED the trade out on the close of the candle. Had I held the trade, I would have made A LOT OF PIPS, and the damn thing is still going!

So, why did I close a fantastic trade?

You have to remember this was purely experimental. There was no PA on the daily or weekly to support it. I asked Baba G about trading it, he didn't like it either. Being experimental, I didn't have a PLAN.

Since I was basing this on my Momentum Cycles, I was expecting the next bar to be a hard close down, and it wasn't. I then started thinking this doji IB could be a "pause" before taking off higher again. I started thinking this was going to be a "big" losing trade. I started thinking my Momentum Cycles are useless etc. The bottom line is my emotions (trading psychology) controlled my beliefs and actions. I let FEAR control me.

Had I just stepped back and put my "technical analysis" hat back on, I would have seen:

My cycles were still saying DOWN
My momentum was still DOWN
My Momentum Cycles were not only STILL DOWN, but accelerating DOWN.

So, you can see that, as experienced as I am, when I step into the unknown, I am no better than you guys along The Path of Learning!

My lessons learned from this are that I must follow my next Momentum Cycle through to the end and disregard all other PASR. I must devise a PLAN to get my emotions out of the way during this experimental testing.

The bottom line is that it shows just how POWERFUL having a PLAN is (even for experimental work).

After telling Baba G what happened a couple of days ago he said "Worse than losing eh?"
My reply: "There's nothing worse than losing you dumb shit!"
His reply: "LOL"
I think HE was testing ME (How dare he?)
Attached Image (click to enlarge)
https://www.forexfactory.com/attachm...1&d=1365570391

Re-visiting the Hammer & Shooting Star Price Reversal Bars;

Bond Hammer & Shooting Star:
Remember Bond? When he got down to the nitty gritty, it wasn't the REAL thing!
So it is with a Bond Hammer and Shooting Star. It may "look like" one but it's NOT.
There are many reasons for this and remember I'm talking a perfect world, which as rookie traders, you need to learn.

Hammer:
The hammer MUST be at the END of a DOWNTREND. It MUST have a long tail that has gone searching below looking for more sellers BUT found a level at which buyers were now prepared to buy at. The Japanese called it a HAMMER because it hammered prices down (nailed it!)

Considerations:
A hammer that will not produce a SWING LOW is more than likely a Bond hammer.
Be very careful of hammers in STRONG TRENDS. Think, the STRONGER the trend, the BIGGER and LONGER the hammer. Hammers fool many people in strong trends.

Look at the Bond hammer on EURUSD on Oct 6, 2008. I remember many people on the threads getting excited over this as it appeared on just everybody's data. Lot's of people took a TICKET TO RIDE (Beatles 1965) on this and burned in hell!
It was a Bond hammer because it "looked" pale and insignificant compared to the bars preceeding it, it had not found support. It just was not "man enough" to STOP a strong trend that had been roaring since mid July.

Now look at the hammer on GBPUSD on Oct 24, 2008. See the difference?
This "looked like" it could STOP the same roaring trend and it did - for a while. It found support AND the level where buyers were prepared to buy again. As I have said many times, after a strong trend and BIG hammer, I expect an IB and, Oct 27, 2008 duly obliged with a Bond hammer. This bar was telling us "I've had another go at selling for you, pal, but, those buyers are giving me a hard time so I'm going to take a bit of a rest".

Now for those that like FIGHTING strong trends and COUNTER TREND TRADING, this IB gave you an opportunity to enter on a discounted price at the high of the IB. You would have to stay on your toes to manage it properly to come away with 600 pips or so.

For an example of PERFECTION in a hammer look at AUDJPY on March 5, 2007. Isn't she beautiful and downright drop dead gorgeous? If only she would meet me every week!

See also CADJPY on Jan 21, 2009 for another beauty.

I purposely haven't put up the charts for these because I want YOU to go to YOUR charts and study this.

Now, while you are dreaming of how much you could have made if you had been in on that trend, LOOK at the 20. SEE how POWERFUL it is. SEE how it HELPS you determine the trend. SEE how it tells you which side YOU should be on. SEE how it provides DYNAMIC RESISTANCE. SEE how it has turned around and is now providing DYNAMIC SUPPORT. Never, ever, under estimate the VALUE and POWER of the 20 (right, Dan?)

Talking about trends, my favourite method of trading, if you are DETERMINED, PATIENT and can PERSEVERE and can demonstrate at least 3 years of consistent equity growth, then you will be qualified to work with me on this money making machine.

Shooting Star:
The shooting star is the opposite price reversal bar to the hammer
The shooting star MUST be at the END of an UPTREND. It MUST have a long wick that has gone searching above looking for more buyers BUT found a level at which sellers were now prepared to sell at. The Japanese called it a SHOOTING STAR because it was SHOOTING for higher prices and got SHOT!

Considerations:
A shooting star that will not produce a SWING HIGH is more than likely a Bond shooting star.
Be very careful of shooting stars in STRONG TRENDS. Think, the STRONGER the trend, the BIGGER and LONGER the shooting star. Shooting stars fool many people in strong trends.

See AUDUSD on July 15, 2008 for an example of a shooting star at the end of a "stair stepping" uptrend - it is not perfect, but good enough. Note how it produces a MAJOR SWING HIGH.

See EURUSD on July 19, 2002 for a shooting star at the end of a strong uptrend.

Conversely, a Bond shooting star in a rally in an already confirmed STRONG DOWNTREND almost always works but always trade with caution - see AUDUSD on September 22, 2008 for an example.

Now, what you are going to notice with shooting stars is that they will almost never look as powerful and strong at the end of a trend as hammers do.

Why? You must never forget we are ALWAYS dealing with ENERGY and The Laws of Physics/Nature. Just like a ball at the top of a hill, it will roll faster down hill, WITH LESS ENERGY, than it will rolling uphill. In fact, it won't roll up hill WITHOUT ENERGY. It takes a lot of energy (BUYING PRESSURE) to roll a ball uphill (uptrend). At the TOP of the hill, The Laws of Gravity are no longer fighting us; they are now on our side and the ball (prices) fall with less energy (SELLING PRESSURE). If you don't know already, prices FALL FASTER than they rise.

It is because of this that we can accept a less than perfect or maybe a Bond shooting star at the end of an uptrend providing it meets all our other conditions. However, you must always trade price reversal bars with caution.

One other point:

Price does not always need a hammer or shooting star type bar to reverse it's trend. There are many other bars and formations which form swings and major swings.

I could write a book on this but that's all for now.

PATIENCE & DISCIPLINE RULE

I see people on every thread wanting to know the latest technique, the best entry method, best exit etc., etc., because they are not making money or worse, LOSING money. The technical skills only account for 10% of whether you will make money or not. I have seen and known many technically brilliant traders who couldn't trade their way out of a paper bag - they fall apart as soon as they are in a trade with THEIR money on the line.

It was happenning to me all the time until I realised and accepted that I needed help with my trading psychology specifically to control my GREED and FEAR emotions.

I now know how to control these but as I posted in my experimental USDCAD trade, if I don't go into a trade FULLY PREPARED (which I didn't) I get hung out to dry by the guy inside my head. Fortunately now, I recognise the signs and just pull the plug immediately which was totally opposite what I used to do.

Before, I used to "freeze" and not do anything except watch my trade go further and further in the red until the pain got so bad that I finally got out. Then what usually happened was that price turned around and went on to make profits in my original direction! (Direction right, Timing wrong)

Oh, those technically brilliant traders that couldn't trade their way out of a paper bag? - they are the ones writing all the books, selling systems and tutoring courses.

So again, those that do, do, and those that can't teach! Be careful Strat, you're teaching on here! Yes, but I do and I do very, very nicely thank you.

1. https://cdn-assets.forexfactory.net/...ar19097_10.gif Baba G
2. Joined Sep 2006 | Status: Hors non numero nisi servitas | 733 Posts

Quoting strat
""Baba, you are one wild and crazy guy""

That's a laugh! It's all a front! He is as meek and mild as a lamb in real life plus his trading is ULTRA CONSERVATIVE - don't mention RISK or LOSING to him because he breaks out in a hot sweat and has convulsions.

A bit like Didier Drogba I suppose - the strength of a bull but the pain threshold of a lamb when he is tackled!

i dont do risk or losing......il be at break even before then.......i love break even......if price goes she goes......and that HAS to have at least the boss with the worker to go on and on.And if its so tight i cant get an Even on it im not playing.

This is a consolidation market...act accordingly.....or Die.

If i do have any strength its being able to wait for PERFECT price action....Im wild and crazy about that....and not losing and covering my risk exposure as soon as poss.Im not here to take a chance........in fact of late my butt has been exposed for a max of about 1 hr.........BBBBBBaaaaaaaa

Just finished reading the last article from the old site. Now a new beginning. The old site was full of gems. I cannot thank you enough for giving me so much guidance and never ask for anything in return.

1. https://cdn-assets.forexfactory.net/...ar19097_10.gif Baba G
2. Joined Sep 2006 | Status: Hors non numero nisi servitas | 733 Posts

If you wait for a confluence of price action on all time frames....as i do....there may be a situation when all the pairs are showing some sort of Daily action.

At this point you can select the best.

I have a max exposure of 9%(3 full line tickets) unlocked off in the market and as we are in a consolidation market i move very quickly to partial breakeven or profit depending on my target levels.Why? cause of the unharmony on the boss and big boss......thats why its consolidating.....no harmony in the heavens.

When we are trending....we have boss and big boss harmony so a daily price bar will perform better and correlations become more obvious....Q.E.D

Whats this got to do with correlation?...nothing as you should only trade YOUR CHART and then only the best, most perfect price bars.

Correlation will happen as you move forward and these correlations will uncouple too.

Like right now price is at "that point"....short USD......long Commodity curr........long carryish.....And they have all engageed to some degree there weekly price actions....It looks like recovery........swissy down,cable and fiber up.......CORRELATIONS galore.........

so what?......theres been no daily Price bars on my feed.I would rather have a hot brick placed sideways where the sun dont shine than actually fill a ticket in on some sort of cross correlation vibe.....

Im trying to imagine the justifcation in my head for doing so.......i think it would be like this:


"the almost BEOB on swissy..with an IB on cable means im longing fiber from that almost BUOB......plus the cad has only had bear bars but no price action but has broken that big support level.....the aussie is long and so is gold and oil........the carry is rebuilding but its only that USDYEN that banging its head off the 100 level.......so yes long EUROUSD...HUZZER!!


Oh for whom the bell tolls!!!

1. https://cdn-assets.forexfactory.net/...ar19097_10.gif Baba G
2. Joined Sep 2006 | Status: Hors non numero nisi servitas | 733 Posts

Quoting AstonDan
I'm frightened to ask
LOL.....well sometimes we are helped by what is not to see what is.....

Even if that pin closes right...we can let it go and use the info later...ie:

if it engages and rocks at this level that means something...if it fails it means something if it sidways we get more price bars.......

Just cause we aint had many bars to play dont mean we have to take all of them.......if you have a doubt.....and i do cause of the weekly situation just wait for more bars......