Eric has already posted this on another thread, so I guess it is OK to it post here. I think it will help a great deal with cutting down the bad trades on this or any system.
Hi guys,
i would like to share a thing with you all because i think that will help you all to archive more profit with your current system.I work at a bank right now as trader and the first thing i learned at my day 1 is: Its IMPOSSIBLE to blow a account with a bad trading system, but its easy to blow up a entire account with a good trading system.
Ill explain here : When you get a trigger with any system you are using right now, you expect the price to move in one direction, North or South. The first thing you need to determine is, how many pips this trigger can possibly make, for exemple ill say 50 pips in North direction. ok now we have the first information to analise what we will do. The second thing is to find a corfirmation to be sure our trigger was a good one and not a wispaw. For that you need to think how many pips you will let in the market for your safety trigger. in this exemple ill say 15 pip.
Now we have all our information needed to take a trade,ill place a pending order 15 pip upper than the current price(Pending order), if my trigger is hit , good , if not well , was a wispaw.Dont wait 2 hour before removing your pending order if it didnt get reach.MOnitor permanently your position , you dont know if you will archive your 35 pip (50 - 15).Always trade with 2 lot. half way close 50% of your position and put BreakEven + 1 for your last 50%, its your runner, maybe you was wrong and the price will retrace and hit your BE+1 ,no big deal, im at leat + 1 pips up on this one but maybe the trend will continue like hell and ill make 200 pips, nobody know and even bank.
Using that, if you get a crappy day with a bunch of wispaw, you will maybe loose some pips but 80% will be avoided.The only and the most important thing is you need to understand your current trading system to know how it react with the market. if usualy each trigger can make 30 pip, use about 1/4 for your safety so in this exemple 7-8 pips, but its up to you , each trading system use different parameter so find yours.
Market order is used to trade News, USA are good, Sell eur/usd , USA are bad, Buy eur/usd. Pending order are for safe trade when you dont know exactly where the market go.
The last thing is "Why the market move in this direction and not in this way", Often you will see the market going crazy and its not cuz people are trading to make money.If a bank need 400million Euro cuz a custumer request that, the bank will buy 400million euro and sell X USD, that will move the market for no reason. Alot of people use Visa, and you can Buy about anything in different currency using you Visa card , Visa need to convert some big amount of money too , and trow the order to bank who will buy/sell.Its why you can get alot of wispaw as a Technical trader. So you need a safety,and your safety trigger is by not buying the current market price.
I hope that information can help some of you
Best Regards,
EricFX
P.S Sorry for my bad english
This safety trigger is golden ... maybe I have heard it before and it has not clicked, but since reading this I have had great trades and missed the bad ones.... such a simple change!!!
Cheers
Jarret
Hi guys,
i would like to share a thing with you all because i think that will help you all to archive more profit with your current system.I work at a bank right now as trader and the first thing i learned at my day 1 is: Its IMPOSSIBLE to blow a account with a bad trading system, but its easy to blow up a entire account with a good trading system.
Ill explain here : When you get a trigger with any system you are using right now, you expect the price to move in one direction, North or South. The first thing you need to determine is, how many pips this trigger can possibly make, for exemple ill say 50 pips in North direction. ok now we have the first information to analise what we will do. The second thing is to find a corfirmation to be sure our trigger was a good one and not a wispaw. For that you need to think how many pips you will let in the market for your safety trigger. in this exemple ill say 15 pip.
Now we have all our information needed to take a trade,ill place a pending order 15 pip upper than the current price(Pending order), if my trigger is hit , good , if not well , was a wispaw.Dont wait 2 hour before removing your pending order if it didnt get reach.MOnitor permanently your position , you dont know if you will archive your 35 pip (50 - 15).Always trade with 2 lot. half way close 50% of your position and put BreakEven + 1 for your last 50%, its your runner, maybe you was wrong and the price will retrace and hit your BE+1 ,no big deal, im at leat + 1 pips up on this one but maybe the trend will continue like hell and ill make 200 pips, nobody know and even bank.
Using that, if you get a crappy day with a bunch of wispaw, you will maybe loose some pips but 80% will be avoided.The only and the most important thing is you need to understand your current trading system to know how it react with the market. if usualy each trigger can make 30 pip, use about 1/4 for your safety so in this exemple 7-8 pips, but its up to you , each trading system use different parameter so find yours.
Market order is used to trade News, USA are good, Sell eur/usd , USA are bad, Buy eur/usd. Pending order are for safe trade when you dont know exactly where the market go.
The last thing is "Why the market move in this direction and not in this way", Often you will see the market going crazy and its not cuz people are trading to make money.If a bank need 400million Euro cuz a custumer request that, the bank will buy 400million euro and sell X USD, that will move the market for no reason. Alot of people use Visa, and you can Buy about anything in different currency using you Visa card , Visa need to convert some big amount of money too , and trow the order to bank who will buy/sell.Its why you can get alot of wispaw as a Technical trader. So you need a safety,and your safety trigger is by not buying the current market price.
I hope that information can help some of you
Best Regards,
EricFX
P.S Sorry for my bad english
This safety trigger is golden ... maybe I have heard it before and it has not clicked, but since reading this I have had great trades and missed the bad ones.... such a simple change!!!
Cheers
Jarret
, are you going to put a pending order as Eric stated once the 4h bar closes and you get the definate signal from the 14,3,3 stock? that way you may avoid a potential whipsaw