Question:
Can we minimize loss by using two broker accounts where we trade 4 lots maximum x2 = 8 total lots on 2 accounts?
Argument:
I've heard that 5 lot is the threashold where banks will hunt for stops. Is this true? So that means: If you trade 8 lots (instead of 4 lots), then there will be more often, stronger manipulation of the price.
What is your opinion?
Dolllar Index DXY Day chart using 4 BB without middle sma
This can make trendy view relax but non-trend show noise.
Diligence Traders will automate try and error to find the answer.
Whereas Lazy traders never get it.
Generally, BB is one of the most common indicator which make traders lose a lot of money on reverse trading.
But really when you revise it as trend catcher, it will make diligence traders happy.
This is your assignment if you mind it.
If you try to avoid loosing trades, it's like trying to avoid car or any other unexpected, unwilling accidents in our life. It can't possible totally. From time to time it will happen, you just have to accept it as it is in your mind in advance. Once you touch the steer of the car, you create or increase the possibility to get in accident no matter how well you drive. As Bill Williams said some other drive can crash to you despite of your driving experience. So when it happens you should find it like "negative feedback" of your system, not your "emotional, natural disability". Just "correct" it and keep going until you will get less one.
It's ridiculous to get upset for what your such resentful attitude will not gonna affect the situation whatsoever.
Think like an investor, Act as a speculator. Ferid H.
{quote} Ok. {quote} Ok. Isn't this the contradictory? If you have a system, isn't it contradictory to close the trade earlier than your system's rules? How do you define 'did not follow thru original plan and then bail'?
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No let me explain.
Say you plan to risk only 2% per trade or have one trade open at a time or sth similar. So if you open a trade risking 3% you should immediately cut it because u didn't follow your plan.
Secondly, you were meant to open a long position; but opened a short aka human error. You should also cut these trades immediately instead of holding an hoping it turn to profit.
You cannot avoid losing trades in trading, that is a fact. You can only minimized it but avoid is just plain stupidity. Now There are a lot of traders that try to achieve this goal by using a wide SL or no SL with 10 to 20 pips TP target, many traders are deceived in this approach because market may reward you at the early going of your trading only to end up with a wiped account later. A strategy that is anchored on bad risk reward ratio will never survive in this market, so if you what real success in this market try to develop a strategy that has better RR ratio(at least 1:1). Good strategy, good RR ratio and disciplined trading are the keys to be profitable in trading.
"How can we avoid losing trades? - DISCUSSION thread" That's something we can't avoid. We have losing trades because thisīs a probability "game". When people understand that and accept that ... itīs when they are in the right direction.
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actually heis right, all the best we can do minimize the lose with trailing stop if you are using a great system.
Dolllar Index DXY Day chart using 4 BB without middle sma This can make trendy view relax but non-trend show noise. Diligence Traders will automate try and error to find the answer. Whereas Lazy traders never get it. Generally, BB is one of the most common indicator which make traders lose a lot of money on reverse trading. But really when you revise it as trend catcher, it will make diligence traders happy. This is your assignment if you mind it. {image}
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@cowbearcar:
In the screenshot you can clearly see breakout (close of candle above outerband). This is a good signal for trend continuation. The problem is, how to deal with fake breakouts that close also above the outerband (and maybe continue 5 up to 20 pips before going down and reverse breakout from the other side)? How do you deal with this?
A foreign currency exchange trader can earn good money if he can ensure successful trade executions via right trading decisions. In order to avoid losses, a forex trader should try to acquire sufficient trading skills and knowledge with the help of demo trading accounts. And it is wise to develop proper trading attitude before start trading with live accounts to avoid losses. Apart from the knowledge accumulation, a trader should try to manage his funds and time in a proper way.
I think losses are unavoidable and our pain is in trying to avoid losses rather than accepting them. Next thing is that the markets are random most of the times, try drawing random lines on that chart and see how it seems to act like support and resistance (overbought/ oversold indicators). There are times when the markets behave in a non random manner, the sad thing is that those times are not predictable. Because of this fact your game is to stay in the game long enough to be able to exploit those times, that's the secret to trading.
A foreign currency exchange trader can earn good money if he can ensure successful trade executions via right trading decisions. In order to avoid losses, a forex trader should try to acquire sufficient trading skills and knowledge with the help of demo trading accounts. And it is wise to develop proper trading attitude before start trading with live accounts to avoid losses. Apart from the knowledge accumulation, a trader should try to manage his funds and time in a proper way.
Ignored
Thank you for your reply. I really appreciate it a lot!
I agree, that the right trading decisions make you successful. Question: what, in your opinion, are good decisions? For example,
- Decisions based on indicators (like Moving Averages)? Forex teachers argument that MAs work, while scientists might say otherwise: Random Walk Theory; there is no proof (It is nowhere to be found.) that Moving Averages make profit consistently (looking at sharpe, P/L). Moving Averages are not statistically significant. Also, unlike the name Moving Average it is not a real significant average. And then a third party: news announcers, use Moving Averages to show us the main trend. Many traders (retail and SM) will therefore use MAs and because many people uses it, the direction bias of MAs may work. So, which of the three do you think is right?
- To what extent is the market random? Which cycles and patterns are working and why? To what extent can we predict the market (direction, volatility and ADR)?
- Half of the traders 'believe' that banks (tier 1 and 2) move the forex market, while others believe that most traders use S/R levels from Moving Averages and therefore the S/R exists (and works), Law of self-fulfilling prophecy. And others believe in Virtu (HFT) that for 90% controls the forex market. Who do you believe is correct?
"In 2009 the top five banks commanded a 61.5 percent share of the market, and the top 10 close to 80 percent."
2015
1. Citi 12.9 pct Citi 16.1 pct
2. JP Morgan 8.8 pct Deutsche 14.5 pct
3. UBS 8.8 pct Barclays 8.1 pct
4. Deutsche 7.9 pct JP Morgan 7.7 pct
5. BAML 6.4 pct UBS 7.3 pct
6. Barclays 5.7 pct BAML 6.2 pct
7. Goldman Sachs 4.7 pct HSBC 5.4 pct
8. HSBC 4.6 pct BNP Paribas 3.7
9. XTX Markets 3.9 pct Goldman Sachs 3.4 pct
10. Morgan Stanley 3.2 pct RBS 3.4 pct
In this thread we will discuss how traders lose but could have avoided it. To complete this I will categorize the arguments. The goal of this thread is to show the bigger picture of how to trade and not trade! _______________________________ List of how traders lose trades: (constantly updated) _______________________________ Psychology: - being stressed, unfocused or distracted - being too hastily or closing winning trades too early while keeping/increasing losing trades Money Management: - accepting [10] straight losses which could cause 50+%...
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Basically a trader has to be smart enough to do the self analysis of what's holding them back or forever be stuck in a loop (people with large ego's tend to struggle the most with this part) , resolve the issue and move to the next step , rinse repeat to improve results.
So the question "how to avoid losing trades" ?. My 2 cents is..
1. Knowledge. Gather information and learn a general method that interests you and then make it your own like an artist with their
own unique style as no 2 people are the same.
2. Rules. Your a gambler if you trade outside of processes and systems.
3. Simplicity. Trading will be more profitable and enjoyable when things are easy and simple.
4. Results and Results are a direct manifestation of the quality of your information and processes.
improvement.
Never said I was Batman,all I'm saying is you'll never see us together.
If you try to avoid loosing trades, it's like trying to avoid car or any other unexpected, unwilling accidents in our life. It can't possible totally. From time to time it will happen, you just have to accept it as it is in your mind in advance. Once you touch the steer of the car, you create or increase the possibility to get in accident no matter how well you drive. As Bill Williams said some other drive can crash to you despite of your driving experience. So when it happens you should find it like "negative feedback" of your system, not your...
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I agree with you. Avoiding loss is not possible. Trading is all about managing your risk. That's why the terms money management and risk management is very important. We can manage our loss. And to manage loss, knowledge about risk management is very important.
