Strat's PASR Long Term, Stress Free Trading

Don't worry about it, you don't need the video for understanding the threads. Just work your way through, read and understand the posts. Ask question if you feel the need.

Yes, I have the wrong number.

Thank you. [Chuckles] You gave me a big help telling me to read all the threads.
You think my head couldn't understand that. Isn't it?

However, I still managed to extract the subtitles and figure out what it says in the video.
I've had a lot of use for it.

Yes personally I think you can't understand that , by the way you reply.

BASIC PASR

EURUSD

Just for practicing purposes. Trade from S/R to first level of S/R. It doesn't matter the R:R . just taking these to get the confidence.

When you see these setups its like going to ATM.



Thanks STRAT.

M1

Well done. There were an unusual abundance of possibilities post London open today, of which I took none.

Previous is only to show the BASIC PASR example. peanut trade but its good set up. And I took many worker trades . and already closed half of them and these are the remaining bucket load of pips which I don't know what to do now.I also took GBPCAD which seams struggling to move so closed them for 10 pips loss which is peanuts. This is why Strat keep telling us to practice Daily's first.

The problem with Daily's is not the entries but its the exits which matters now..

I have not wider screen.

Well tell me is there possible to loose with STRAT PASR?



MH

No, obviously you need a screw driver.

plenty of ways to lose

Markets seem choppy atm after big moves and the shadows are a bit overstretched. It seems better to wait and get back on a "sore thumb" as close to the shadow as possible.

Interesting article that basically highlights everything that Strat has been teaching, but repeating the fundamentals over and over is necessary as we are human:

Almost all traders are aware of the widely publicized statistic that “95% of traders lose money.” When you drill deeper, research implies that this number is likely higher. The profession chews up and spits out aspiring traders at an astounding rate.
So why are so many intelligent people drawn to a profession with incredibly high odds of failure?


6 striking stats showing traders have it rough
There are the obvious reasons — the appeal of working for yourself, sitting in your underwear on your couch all day making millions. There’s the (false) promise of “easy money” and the draw of independent wealth.
The truth is, day trading is extremely difficult, emotionally taxing and far more likely to destroy your life than enrich it.
Let’s start with a few key statistics, from online educational resource Tradeciety:

1. 80% of all day traders quit within the first two years;
2. Among all day traders, nearly 40% day trade for only one month;
3. Within three years, only 13% continue to day trade. After five years, only 7% remain;
4. The average individual investor underperforms a market index by 1.5% per year;
5. Active traders underperform by 6.5% annually;
6. Traders with up to a 10 years negative track record continue to trade.

The last point suggests that day traders even continue to trade when they receive a negative signal regarding their ability.
Astounding. Almost everyone loses, they lose fast, they underperform simple, mindless investments, and they continue trading even after being proven unprofitable. Why?
The truth is, most would-be traders are woefully underprepared for the challenge ahead and learn many hard lessons with their real money. They underestimate the psychological challenges of trading and fail to eliminate emotion from their trades.
They fail to trade with a defined system. When they have a defined system, they often take trades outside of their own, established rules. These are all obvious reasons.
What is “random reinforcement”?
Perhaps a less notable reason that traders fail is the principle of “random reinforcement.” This concept also explains why they often continue trading, even after failing repeatedly. As defined by Investopedia, “Random Reinforcement” is:
Using arbitrary events to qualify (or disqualify) a hypothesis or idea; attributing skill or lack of skill to an outcome that is unsystematic in nature; finding support for positive or negative behaviors from outcomes that are inconsistent in nature—like the financial markets.
The market has a tendency to reward bad habits, while concurrently punishing positive behaviors, especially with a small sample set. Let’s take a theoretical example to display this principal.
Bob wants to leave his job and become a crypto trader. He sets aside some starting capital, follows the markets and the “big names” on twitter. He sees them talking about an altcoin, opens the chart and sees that price is rising fast. He buys, goes to take a shower, returns and sells for a quick profit. He does this again before lunch and strings together a few successful trades. Bob starts to feel confident that he is a talented trader.
So what is the problem? Bob is trading without a system or a plan and is being fooled into believing that a successful outcome on a few random trades is indicative of likely success moving forward. The market has rewarded his bad behavior. We know how this story ends — Bob continues to make impulsive trades and eventually loses his capital.
There is a flip side to this coin. Let’s say that Bob learns his lesson and spends months developing a trading plan, complete with risk management, proper portfolio allocations and trading rules.
He identifies a trading opportunity that fits, takes the perfect entry and… stops out of his trade. He tries again. And again. He loses 7 times in a row. The market is punishing Bob for his good behavior. Bob starts to doubt his system and takes a high-risk trade that violates his system — and is successful. To his surprise, he tries this a second time and also makes money. Bob is now back to square one, trading without a system because the market has rewarded his bad behavior.
Through random reinforcement, the market has re-conditioned the way Bob approaches trading by distracting him away from his trading plan. He has allowed himself to be manipulated into an impulsive, high risk, revenge based trading approach.
Everyone was a genius in 2017
The concept of random reinforcement was never more evident than in the crypto bubble of 2017. During this parabolic bull market, it was easy to mistake luck for skill.
Amateur traders were making money hand over foot by simply throwing cash into random altcoins and selling after massive, immediate gains. Everyone was a “genius” in the 2017 crypto market. Then 2018 happened — the bubble popped, and these amateur traders were ill-prepared to deal with the drawdown. They failed to sell their assets and held blindly until they had lost everything.
Understanding that markets are dynamic and in constant flux is key to being profitable. A trader must learn to be able to determine when a certain string of losses or profits can be attributed to their skill and when it is random. This is done by trading with a defined plan over a long period of time.
Every trader should have a well developed and tested (through paper trading) plan, with written rules for entries, exits and stop losses, position sizing and risk. They should NEVER trade outside their plan.
Bitcoin trading: sticking to your plan
No more than 1% of a trader’s portfolio should be at risk on any single trade — this is the key to sustaining multiple, consecutive losses. They should test and tweak their plan over a long period of time — hundreds of trades. A good system gives a trader an edge over a long time frame because randomness becomes less of a factor with a larger sample.
A good trade should be defined as one where a trader planned their trade, traded their plan and managed their risk — those are all elements they can control. It is NOT defined by the outcome.
A bad trade, on the other hand, is where a trader fails to follow their rules and executes trades against their better judgment. This is always going to be a bad trade even if it happens to be profitable.
By developing a well-tested plan, traders can overcome the pitfalls of random reinforcement, eliminate emotion and impulse, and learn to be profitable. That’s how you become a part of the 5% that make it as traders.

Nice article. Thanks for sharing, darko.
I can 100 % identify myself as one of those crypto risk management unaware blindfolded wannabe trader.

ah, it been almost 4 months..
just visiting, enjoy TITZ, its a good read..

and hi for the active peps here, you guys awesome

-another coffee, please

Does anyone like the GBPUSD?

I would take it if I hadn't already shorted GBPJPY. I don't like being in two GBP pair at the same time.

Already shorting it. I've used BOSS last candle.

Good article:

There are millions of businesses in the market.
And most businesses can be categorized as a high turnover business or a low turnover business.
I’ll explain…
A high turnover business usually has a small profit margin and they earn from the fast turnover of their inventory.
The faster they “move” their inventory, the more profits they make.
An example of a high turnover business is Walmart.
On the other hand…
You’ve got businesses with a low turnover but high-profit margin.
They don’t sell regularly, but when they do, the profit margin is high.
An example of a low turnover business is Rolex.
Now you’re wondering:
“How does this relate to my trading?”
If you think about it, the concept is the same.
Are you a high-frequency trader looking to capture a small move, or are you a low-frequency trader who prefers to catch a big move?
This is important.
Because if you don’t know what’s your trading business model, you’ll waste countless hours finding the “best” system that doesn’t exist.
So my question to you is…
What’s your trading business model?
Do you know the cost of doing business? (It’s not what you think)
Every business has a cost.
If you’re running a restaurant, you’ve got to pay…

1. The salaries of your worker
2. The rental of the unit
3. Electricity bills
4. Groceries

And it’s the same for trading.
Now, you might not have to pay for the rental of your office (if you work from home), salaries, etc.
But, there’s still a cost — and it’s the cost of losing.
I don’t care how good you are at trading, whether you have a $1m dollar account or a $10 account, you’ll face losses regularly.
And that my friend, is your cost of doing business.
But wait, that’s not all.
There’s another cost you must take into consideration.
What is it?
Your opportunity cost.
Here’s what I mean…
Let’s say you left a $60k /year job to trade full-time.
And as a full-time trader, you make $40k/year.
So how much did you make as a trader?
Did you say $40k?
Nope.
You’ve lost $20k (60 – 40) because you could have been working elsewhere making $60k per year.
That’s an opportunity cost of $20k to you.
Don’t forget that.
How to protect yourself in “bad times”
Here’s a fact:
The market moves in cycles.
If you look back, there’s always a major recession once in a while.
And as a business owner, it’s a huge mistake to assume the economy will always do well.
For example:
If you’re a Gym owner, you might have seen your membership increase every year (for the last 5 years).
After all, times are good and people can afford to sign up a gym membership.
But what happens when there’s a recession?
Have you considered it?
How will it affect you?
I’ll tell you this…
Your memberships will decline because people stop renewing it — or even cancel it altogether.
So if you want to protect yourself, you must have enough cash flow to see through the difficult times.
Now, why am I sharing this with you?
Because it’s the same with trading!
The market is always changing.
It goes from an uptrend to downtrend, low volatility to high volatility, etc.
This means your strategy might work for a few months and then it stops working.
That’s why you must have enough cash flow to survive through the difficult times.
If you can do it, you’ve got a good chance of making it all back (and more) when the market conditions are in your favor.
If you want a ballpark figure, I recommend setting aside 12 months of living expenses (outside of your trading capital).
The ONE thing you must do to survive in this business
Let me share with you a real story.
When I was a proprietary trader, most of us trade the Nikkei Futures.
The reason is that Nikkei is traded on 3 different exchanges: SGX, OSE, and CME — which offers arbitraging opportunities.
Here’s an example…
Let’s say Nikkei is traded at 100 at SGX, 101 at OSE, and 100 at CME.
This means you can buy Nikkei at 100 from SGX or CME, and then quickly sell it at 101 at OSE — for a risk-free profit of $1.
Now, this was “easy money” back in the 2008 period.
However, with the rise of algorithms (which are faster than humans), these inefficiencies faded.
At this point, many traders left the proprietary trading business because their edge is eroded.
However…
There is a small group of traders who are still trading to this day.
How?
They adapt.
Yes, that’s right.
You must adapt to the markets if you want to survive in this business.
Your trading strategy might work for a few years and then suddenly, it stops working altogether.
And then what are you going to do?
Do you call it quits and blame the market?
Or, develop new trading strategies and adapt to the new market condition?
How to diversify your risk
When you first start a business, you’ll have one core product to fulfill the needs of your customers.
For example:
Amazon started with books.
Apple started with Mac.
Google started with search.
Now…
Amazon sells almost anything online.
Apple offers multiple products & services like iPhone, iPad, iTunes, etc.
Google has emails, business applications, and are developing self-driving cars.
Now the question is…
Why did these companies increase their product offering?
Simple.
They want to diversify their risk.
They don’t want to rely on just one product because what if…

1. There’s a new law that bans everyone from reading books
2. There’s a new technology to look for information faster than a search engine
3. A Mac exploded killing everyone in a 10km radius

I know these are exaggerations, but you get my point.
That’s why businesses tend to develop new products and services — to diversify their risk.
Now, what about trading?
Well, it’s the same!
As a trader, you’ll want to diversify your risk into different markets and strategies.
Take me for an example…
I started with Price Action Trading.
Then, I learned about Trend Following and how to ride trends across different markets.
And recently, I’ve developed systematic strategies to trade Stocks and ETFs.
Why is that?
Because I want to diversify my risk — so I can profit from the markets even if something fails.
Does it make sense?
Good.
Moving on…
How to start trading as a business — 5 powerful tips to dramatically increase your chance of success
Now if you want to start your trading business, then here are 5 powerful tips to increase your odds of success.
1. You must trade with an edge, here’s how…
Here’s the thing:
I don’t care if you have the best trading psychology or the tightest risk management.
Because if you don’t have an edge, you’ll never make money — period.
You’re probably wondering:
“So how do I find an edge?”
Well, the easiest way is to find something that already works and adapt it.
For example:

1. Trend Following
2. Momentum Trading
3. Value Investing (I know this isn’t trading, but it works)

Next, read books on these topics to understand the ins and outs of it (like why it works, how it works, and when it underperforms).
Now with the concepts you’ve learned, develop your own trading strategy so you can find an edge in the markets.
Next…
2. Grow your capital — the lifeblood of your trading business
Here’s the deal:
You need money to make money in this business, here’s why…
Let’s say, you have a trading strategy that makes 20% a year.
With a $1000 account, that’s $200/year.
With a $10,000 account, that’s $2000/year.
With a $1,000,000 account, that’s $200,000/year.
See my point?
You might have a strategy with an edge, but with low capital, it’ll lead you to take unnecessary risks — that erodes your edge.
Here’s an example…
You have a $1000 account and you make 20% a year.
The $200 is probably not enough to meet your needs.
So you have thoughts like…
“All this work for just $200?”
And the next thing you know, you take on too much risk and lose everything.
So, what’s the solution?
Grow your capital.
And if you don’t enough capital, get a job and save up — there’s no short-cut to it.
You might wonder:
“What about borrowing money to trade?”
Sure, you can borrow money to trade.
But the psychological pressure that comes with “money you can’t afford to lose” isn’t something I recommend.
3. Set aside 12 months of living expenses
Now…
I know you want to make consistent profits every month.
However, there are times when you just won’t make money.
Perhaps the market conditions aren’t favorable to you.
Perhaps you’re in a drawdown.
Perhaps you’re not psychologically ready to trade.
Whatever the case is, you want to have at least 12 months of living expenses covered.
So, even if you’re at your worst trading performance, you can live through it and not worry whether you have enough to put food on the table.
Imagine:
How much more liberated you’ll feel when you know you’re covered for the next 12 months.
Next…
4. Diversify your risk, here’s how…
You can trade multiple trading strategies so you can profit in different market conditions.
For example, Trend Following in trending markets and Mean Reversion in range markets.
Also, you can diversify your risk outside of your trading business.
For example…

1. Have a fixed income job
2. Work part-time (giving tuition, freelance, etc.)
3. Have a side business (mentoring traders, referral schemes, etc.)

The possibilities are endless.
5. Always be a student of the market
Now in other industries, you might get away with learning a specific skill and using it for the next 30 years.
But, it doesn’t happen in trading.
The strategies you’ve learned 5 years ago might not work anymore, and if that’s your bread and butter, you’re toast (pun intended).
So, the only way to stay in this business is to be a student of the markets.
How?
By learning from other traders, reading books, watching the markets, and testing new hypotheses.
If you can do this, you’ll never worry what the market throws at you because you’re always adapting — a hallmark of a lifelong trader.
Conclusion
Trading is like any other business.
You must make a profit, manage your cash flow, diversify your risk, and adapt to market conditions.
I hope the strategies and techniques you’ve learned get you closer to trading success.
And finally, here’s my question to you…
How do you manage your trading business?

oh, the zones..
its like watching gps when you drive in the road