the key to the mint

Just made a 123 long on the EUR/USD. In at 1.4388, out at 1.4411.

good job fx listen guys the trading room works fine pay no attention to the opposite page saying navigate to webpage it works fine and i can still post charts all pairs are short record for the month is 9 wins 3 losses

hey harold well done this month again mate

andrew

Hey harold, sorry i've been missing you, pretty busy....just sold my oil interests to Donald....

been wondering where you have been now it makes sense unloading all those contracts to donald hope to see you later in the room all 3 pairs are short for the next session

Harold - what was your final September result, please (winners:losers + total net pips) ?

september reults were 9 wins 3 losses for a net of 18%

not too shabby



Edit : for non-English speakers, that means "pretty darn good..."

Hey Harold, made a nice 123 this morning. E/U short in at 1.4010 at 9:12am and out at 1.3992 at 9:15am.

well only a few in room here is a quick 4 minute trade for 24 pips it seems that the room is getting thin for some reason i quess you guys got the understanding of the method so i am thinking of stopping the posts on this thread as well as not coming to the room i am not one of those that need a trading journal if theres noone to help well i will just sail off into the sunset take it easy all

Hey, H4X,

I'll come in one more time before you sail off into the Great Blue Yonder... but I think you are mostly in the room around 0400 / 0500 GMT, so I'll have to get up a little earlier than usual .... tomorrow, Friday morning ?

I Would Like To Discuss Something Of Great Importance To All Traders New And Old. What Is Trading? Weather You Use Indicators(which Lag The Price Always) Or Price Action( Which Is The Price Always Therefore Is The Leading Indicator) Here Is The 1 Constant Which Is There Is A Setup To Be Waited For. But Entering A Trade Is Easy And For Some Exiting A Trade Is Easy Too. The Only Thing We Do Know Before We EnTer A Trade Is This What Are We Going To Risk If We Lose!!! Now That We Know That What Is The Goal? Is It To Make A Lot Of Pips Or A Lot Of Money? Lets Use The Casino As An Example. When We Say Play Blackjack And You Give The Dealer $100 He Will Give You Chips Which Represent Money So The Vehicle Is Chips, The Same Is True Trading Forex The Pips Are The Vehicle. The Goal Is To Make Money Which Doesnt Always Involve Making A Lot Of Pips Lets Say You Put A Trade On And The Risk Is $100 And You Lose And You Desided To Risk $50 On The Next 2 Trades And You Win Both Of Them Well You Just Broke Even But Yet You Had A Winning Percentage Of 66% Something Is Wrong Then. So With That Said It Is Of The Utmost Importance That There Is Some Kind Of Money Management In Place. What Is Money Management? Well In Its Simplist Form Its Simply Managing Your Money In The Event Of Losses Not Wins. But With That Said Isnt It About Winning And Making Money? Last Month I Had 9 Winning Trades And 3 Losing Trades The Total Pip Amount Was 110 Net Pips But That Could Have Easily Been 60 Total Net Pips Yet My Earning Would Have Still Been The Same Which Was An 18% Increase In My Acct. Just As There Are 100's Of Entry And Exit Strategies There Are 100's Of Money Management Strategies. The Real Key To The Mint Is This In Order For You To Succeed In Day Trading You Must Have A Winning Method That Produces 60% Or Better ( Anything Above 51% Really Will Generate Money) Remember I Said Day Trading Not Long Term Trading. The Money Management I Use Is Simple And Easy To Apply I Risk 3% Per Trade I Never Put On More Than 2 Trades A Day. Let Say You Have $1000 3% Of That Is $30 Which In Comparison To 1000 Is Nothing Even If You Have 100000 And Risk 3000 A Trade Its Nothing Compared To 100000. So If You Keep The Percentage The Same Always You Are Now Managing Your Money When Losses Come. I Dont Buy Into The Cut Losses Short And Let Profits Run Because I Dont Know What Short Is Compared To What And I Dont Know How Long Prices Are Going To Run. I Have Fixed Stops And Fixed Targets Which Are Equal. For Instance 20 Pip Target With 20 Pip Stop (spreads Are Included)so Risk And Reward Are Same. Stops Are In Logical Place Last Swing And Targets Are The Measured Move. So Know If I Put On 15 Trades A Month And Win 9 And Lose 6 Thats 60% Winning Thats A Net Of 3 Wins Or 9% Total For The Month Lets Say It Was 8 Wins And 7 Losses For A 1 Win Total That Would Be 3% Are You Making 3% A Month??? So The Question You Have To Ask Yourself Is This Is Your Method Winning 51% Of The Time Or Better? If Not You Will Be Donating To The "make The Broker's Rich Fund!! There Are 1000's Of Methods In This Forum And Others Some Are Hybrids Of Others But Again What Is The Winning Percentage Over Time?? Last Comments To The New And Ones Still Searching For The Pot Of Gold At The End Of The Rainbow (the Disease Is Called Holy Grailitis) Their Is No Pot Of Gold There!!! There Is A Key Though To The Mint If The Above Advise Is Correctly Implemented Hope This Helps Someone.

i am in treadingroom we look for shorts only

Great post, Harold. Having discovered your thread in August (I think), I decided to add KTM-based trades during September, with a couple of mods to suit my own trading style. What attracted me to your method was its simplicity and low number of trades - I am striving to spend less time in front of the screen. However, what happened was that with each passing week I blended KTM more and more into my other methods, such that by the end of the month it was not even a "jtrade modified KTM" and I had completely failed in my quest to trade less. I had already reduced to 4 pairs, EURUSD / EURJPY / GBPUSD / GBPJPY and intended to limit myself to a max of 3 trades a day, so 60 trades max.... I made 107 trades and returned 8.5R. R (risk) was 1% per trade, so I made 8.5% but I don't want to make this number of trades ! Btw, the 8.5% includes one blow-up day, where I broke a lot of rules and lost 3% - that I can still do this after many years trading is challenging, to say the least...

Incidentally, my MM for September was to take off half the trade at 1R and let the balance run with an ATR-based trailing stop; whilst this resulted in the second part of many trades stopping out at b/e, there were a handful of much bigger winners (taking off the full position at 1R would have made 6.05% for the month, ie. about 28% less). So some people might construe that the MM I used was better than yours.... but I'm not so sure, because from a psychological point of view, holding those trades "costs" a lot and if you have a big enough account to make enough MONEY, rather than pips, the less trades and less time in trades the better. For me, this is a new way of approaching trading and I really appreciate Harold's clear description of both his method, inc MM, and its underlying rationale.

So from Monday, I will seperately track "strict KTM' trades and see if I can apply myself more successfully in this way. A marathon / work in progress as always...

Harold, an absolutely great post on money management. It's about the % not about the pips.

thanks fx you shall know the truth and the truth shall make you free

Harold, a nice 123 tonight, short G/U in @ 1.7631 at 11:03 pm est, out @ 1.7614 at 11:11 pm est.

It Was A 123 Only Thing Chet Is There Was No Uptrend First Remember Sell High Buy Low As You Can See Last Low Was 10 Pips Below Where You Entered Here Is A Trade To Show What I Mean

Harold, my trade was on the GBP/USD, the chart you posted was on the EUR/USD, so I am a little confused about your post.

I Was Just Showing A Trade From Last Night To Show That Price Has To Trend Up First Before Looking For 123 To Go In Direction Of Daily Your Gbpusd Was A Downtrend And Entry Was About 10 Pips From Last Previous Low