The Answer: Get stopped out then trade goes in your direction | Forex Factory

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The Answer: Get stopped out then trade goes in your direction

  • #1
  • First Post: Jun 12, 2012 9:11pm Jun 12, 2012 9:11pm
Hi, I am going to go out on a splurge here because I am tired of seeing people fail at the true trading game. While I have lost some made some then lost more, I have now been recovering because the light bulb clicked after 2.5 years.

I am sure every single person here asks themselves and others out here, why do I always get stopped out then to see the trade go my direction the following hours.

or

As soon as I get in the trade it always goes against me.

Lastly stop blaming stop hunts. You probably do not truly understand what stop hunts really are unless you are a seasoned trader.

Simple Answer is you are overleveraged.

You might have a solid strategy however you see the trade go against you and your palms sweat, heart race, then you realized you blew a good chunk of your account on one trade only to see it go in your direction some short time later.

See most people do know the direction of the trade and the trend the problem is you are trading way over-leveraged. You don't give enough time and space for the trade to breathe and work out to your best interest.

My challenge to you:

1. Open $100 account
2. Trade only 1K lots, this is .10 cents a pip
3. Understand and be humble that 10 pips is only going to give you $1 but 4. Understand your account if you grabed that $1, you just increased your account by 1% in only 1 trade.
5. Understand that big money trade accordingly, if they have a $1K account they might risk 10K lots which is $1 a pip
6. Do not open another trade while you are in the current trade.
7. Allow the trade to breathe, .10 cents is not huge so risking 20 or 30 pips is not going to kill you.

Note*** I never use indicators. It is a bunch of crap and you dont need indicators to tell you what to do. Many will argue and hate this statement because they have never tried to take them off your chart. If you use indicators with a system and you know that system does work then by all means use it. Sometimes your system does not work because again you trade overleveraged.

Important, you need to give your trade room to breathe.......

I hope this clears up the cloud of confusion to why you get stopped out only to see the trade go in your direction some short time later.

Then you say... Damn I knew it... WTF!!!

Well hopefully you will say next time Damn I knew it... I am a good trader (a properly leveraged trader).

Godbless and hope this helps.
Know when to hold em, Know when to fold em!
  • #2
  • Jun 13, 2012 12:38pm Jun 13, 2012 12:38pm
That is why I blew my first three accounts. correct
  • #3
  • Jun 13, 2012 12:53pm Jun 13, 2012 12:53pm
There definitely is some merit to using low leverage.

High leverage will certainly cause difficulty in trading.

I'm glad to hear that you have found some things that are helping you overcome the many hurdles to profitable trading.

However.... there is also more to trading than money management alone.
  • #4
  • Jun 13, 2012 10:56pm Jun 13, 2012 10:56pm
Cool thread dude. Not only can you take a low leveraged trade and give it room, but take mulitple very low leveraged trades at intraday extremes throughout a day. Aka 'average in' and have a great average entry.
  • #5
  • Jun 13, 2012 11:11pm Jun 13, 2012 11:11pm
Quoting EmeraldEyes
Cool thread dude. Not only can you take a low leveraged trade and give it room, but take mulitple very low leveraged trades at intraday extremes throughout a day. Aka 'average in' and have a great average entry.

Thanks yes so tru, I always lock in at least a couple pips profit if I am going for a longer term trend trade before I add a new position.

Alot of people want 100's of pips well when I trade this way its easy to get the 100 + pips because you can focus on market direction and not focused on a trade giving you a bit of drawdown because you traded too big. You really get to see the market for what it is when you lower your risk.
Know when to hold em, Know when to fold em!
  • #6
  • Jun 13, 2012 11:13pm Jun 13, 2012 11:13pm
Quoting woody70
That is why I blew my first three accounts. correct

lol yep this is why most people blow their accounts. It doesnt take a genious to see if a market is bullish or bearish, it takes humbleness to trade accordingly to your account balance.
Know when to hold em, Know when to fold em!
  • #7
  • Jun 13, 2012 11:26pm Jun 13, 2012 11:26pm
Let's be a bit more specific on the OP's premise.

When you put a trade on that is "over-leveraged" or it represents the maximum amount you may have set to lose in one day, perhaps 3%, and it loses, it is discouraging to say the least. And when the trade reverses into the direction you thought it would go, the loss has paralyzed you from re-entering. You'll sit there and just get incredibly frustrated, angry and depressed while thinking "coulda, woulda, shoulda..."

If you understand that it is necessary to give a trade time to develop, or to "breathe", then you need to drop the initial amount risked knowing that you can now take the initial hit, but then re-enter if and when the market turns.

I know from experience that it's greed that prevents us from doing this. We're afraid of missing the move with a "full" position. We think "what if I only put on 1/3 of a position and it takes off...I'll only make a fraction of what I should make..." If the move does develop as you thought, then there usually are small pullbacks that are excellent places to add-on to the trade...it happens all the time. So this excuse, or motivating factor, is invalid.

But let's say you only do get on 1/3 of a position and it hits a TP. So what? You've still made money...you just haven't made what you think you should have made. The "woulda, coulda, shoulda's" of trading will destroy you. That crap has to go.

It always comes back to the same thing...people want to impose their views onto the market. They bring expectations that have no bearing on the market at all. By letting go of the control issues, you can actually gain control of your trading.

As a side note, there sure are some very active assholes lately on these forums.
  • #8
  • Jun 15, 2012 9:05am Jun 15, 2012 9:05am
Quoting Dopey
It always comes back to the same thing...people want to impose their views onto the market. They bring expectations that have no bearing on the market at all. By letting go of the control issues, you can actually gain control of your trading.
Dopey,

What you have said in this post is right on. I hope traders really take it to heart. I particularly like the part of the quote above...the issues of having expectations and letting go. It is SO true...that is how a trader gains control and improves their trading. I REALLY hope they hear you...and do it.



FX4
Trade what you see, not what you think or feel. Let the market come to you.
  • #9
  • Jun 16, 2012 12:49am Jun 16, 2012 12:49am
Agreed. As soon as I understood I don't actually know what's going on and instead I'm now trading my "best guess" my account has grown in leaps and bounds.

Well maybe not leaps and bounds... but +20% is fantastic compared to the -85% on the first account

I lost nearly all my trades because: A) I refused to believe my TP wasn't "correct" B) I "knew" the price had to rebound off that support level. Rain man I am not
  • #10
  • Jun 16, 2012 4:57am Jun 16, 2012 4:57am
'Get stopped out and then trade goes in your direction' would say to me they went long at resistance and placed their stoploss at support, or short at support and had a stop at resistance.

  • #11
  • Jun 16, 2012 5:17am Jun 16, 2012 5:17am
I think this is the best single advise ive read on the forex factory ,
then trend is seen using a day chart quite easily loking at price from left edge of chart

Or looking at the daily open or close of yesterday and the curent price.

MY Mentor keeps talking about greed is the number one reason traders fail.

I think your thinking on leverage is the best advise ive heard ever in
the forex thread

Thank you








Quoting goods
Hi, I am going to go out on a splurge here because I am tired of seeing people fail at the true trading game. While I have lost some made some then lost more, I have now been recovering because the light bulb clicked after 2.5 years.

I am sure every single person here asks themselves and others out here, why do I always get stopped out then to see the trade go my direction the following hours.

or

As soon as I get in the trade it always goes against me.

Lastly stop blaming stop hunts. You probably do not truly understand what stop hunts...
  • #12
  • Jun 16, 2012 4:29pm Jun 16, 2012 4:29pm
Quoting GDR3k
'Get stopped out and then trade goes in your direction' would say to me they went long at resistance and placed their stoploss at support, or short at support and had a stop at resistance.


You are missing the entire point. You only read a part of what I wrote. Please digest it all before assuming. LOL I know where money is at and where it is not at.
Know when to hold em, Know when to fold em!
  • #13
  • Jun 16, 2012 4:32pm Jun 16, 2012 4:32pm
Quoting Fantastic
I think this is the best single advise ive read on the forex factory ,
then trend is seen using a day chart quite easily loking at price from left edge of chart

Or looking at the daily open or close of yesterday and the curent price.

MY Mentor keeps talking about greed is the number one reason traders fail.

I think your thinking on leverage is the best advise ive heard ever in
the forex thread

Thank you
Well I am very glad to help out. Sometimes this is the only thing people realize but they think there is something wrong with their entry when most of the time its not. If you want to see the market like big hedge funds, and the institutions, then you must trade small enough to the point you can calmly place the trade.
Know when to hold em, Know when to fold em!
  • #14
  • Jun 16, 2012 4:56pm Jun 16, 2012 4:56pm
Quoting Dopey
Let's be a bit more specific on the OP's premise.

When you put a trade on that is "over-leveraged" or it represents the maximum amount you may have set to lose in one day, perhaps 3%, and it loses, it is discouraging to say the least. And when the trade reverses into the direction you thought it would go, the loss has paralyzed you from re-entering. You'll sit there and just get incredibly frustrated, angry and depressed while thinking "coulda, woulda, shoulda..."

If you understand that it is necessary to give a trade time to develop, or...
I am talking about trading swing trades, not scalping the market. There is 50% of the time I will have no draw down at all and sometimes I might have 20 or 30 pips drawdown. You will never have perfect and exact entries 100% of the time.

Quoting Dopey
I know from experience that it's greed that prevents us from doing this. We're afraid of missing the move with a "full" position. We think "what if I only put on 1/3 of a position and it takes off...I'll only make a fraction of what I should make..." If the move does develop as you thought, then there usually are small pullbacks that are excellent places to add-on to the trade...it happens all the time. So this excuse, or motivating factor, is invalid.

But let's say you only do get on 1/3 of a position and it hits a TP. So what? You've still...
I dont recommend scaling in and out for amateur traders until they have been consistent for a while. This is something beyond the beginning traders and shis is more of a strategy that you should do when you are experienced. I have gotten 1K+ pips scaling into trades. It took me 1.5 years to be able to do that. This is not the topic though so I discourage unsuccessfull people from scaling in and out of trades until they have finally gotten down their first entries and exits consistently. Then possibly mess with scaling but not till you are consistent. [/quote]

Quoting Dopey
It always comes back to the same thing...people want to impose their views onto the market. They bring expectations that have no bearing on the market at all. By letting go of the control issues, you can actually gain control of your trading.
I agree people try to predict they should never never assume/predict. I always enter a trade with belief and faith within yourself. If you dont succeed at first pick yourself up and try again. It is all about controlling your trading. [/quote]

Quoting Dopey
As a side note, there sure are some very active assholes lately on these forums.
I could not agree more. This thread was to help new people not for people that trade for a living.


Cheers mate
Know when to hold em, Know when to fold em!
  • #15
  • May 6, 2013 10:40am May 6, 2013 10:40am
This method realy changed my trading style
  • #16
  • May 6, 2013 12:43pm May 6, 2013 12:43pm
True........ That's why I don't loose. Check my History.
http://www.forexfactory.com/iahmedz
  • #17
  • Aug 2, 2013 11:03am Aug 2, 2013 11:03am
Quoting goods
lol yep this is why most people blow their accounts. It doesnt take a genious to see if a market is bullish or bearish, it takes humbleness to trade accordingly to your account balance.
I'm pretty sure this is the point 'goods' is trying to make. I love this statement and think it is so true. This is the #1 thing that I'm still trying to work on!
Please check out my blog at https://from-zero-to-hero . net
  • #18
  • Nov 20, 2017 10:38pm Nov 20, 2017 10:38pm
Quoting goods
Hi, I am going to go out on a splurge here because I am tired of seeing people fail at the true trading game. While I have lost some made some then lost more, I have now been recovering because the light bulb clicked after 2.5 years. I am sure every single person here asks themselves and others out here, why do I always get stopped out then to see the trade go my direction the following hours. or As soon as I get in the trade it always goes against me. Lastly stop blaming stop hunts. You probably do not truly understand what stop hunts really are...
Volatility is normal especially for currency pairs like the pound yen or Euro Kiwi / Aussie.

But I learn not to give too much and switch to immediately gratification of profits or loss. And immediately open a limit order if the bias stays intact.

Let the market comes to you but get out if it doesn't align with your expectations.

Pause and weakness are sign of bias being wrong. Although sometimes is more of a higher time frame traders
You're going to pay a price for every bloody thing you do and don't do
  • #19
  • Jan 2, 2018 3:50am Jan 2, 2018 3:50am
Quoting iahmedz
True........ That's why I don't loose. Check my History. http://www.forexfactory.com/iahmedz
I see, it’s your profile link but I thought it’s a link of your trading account! By the way, what do you mean by; I don’t lose? Means; you are making 100% profit here? Or you are making regular income (with small loses)?
  • #20
  • Jan 4, 2018 3:03am Jan 4, 2018 3:03am
the
system that you have is at fault. the question is - does it work or doesn't work. if the system hitted sl and it's a winning system the trade is a losing trade. if you see more potential in the market than the initial sl then amplify the sl.
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