Trade what you see NOT what you expect

You mean something to this effect EO????

HOLLA

I think I'm at this level, although I might me deluding myslef :-)

yeah we share some similar thoughts about down

i have one chart


i am looking at the daily and 4 hour chart... i think reaching 1.48 already is a big jump up in just 1 week... remember all the selling pressure that we had in last months... they are not gonna just disappear like that. but no one ever knows whats gonna happen until we see it happen, and when there are signals we can go in the trade

Good post Micho......

I see what your talking about and it is a possiblilty, I guess that's why I like this style because you can go both ways and not be set in one direction.

Looking at my weekly chart, I can see a test of 1.5000 again, especially with buyers pushing price all week, with a very bullish candle and closing above the wick from last week and above my TL. Which would be the 2nd test of the 23.6 retracement from 7/13/08, break or bust....what shall she do?

So anything is possible, I'm ready both ways.

HOLLA

Hi Ben,
I know the feeling - Some days I think Eureka I'm at 38 - Then next day the market screws me and I'm back to 7 LOL.

Correction the market never screws me - only I can do that!!!

Trading is easy - It's the 'me' bit I find difficult

Good Morning :; Hope everyone is having a nice weekend away from trading.
The list Turtle Posted is very interesting and mostly correct. As with anything in life there is a learning process. Strange though how many people who try and get into Forex ,think they can skip the learning and go right to the riches section.. LOL. I like others have stated can see myself in various locations on the list. I truly hope I am nearer the bottom than the top.

The great thing about reading things like that is it helps us to take a look inward and judge ourselves and where we might be having troubles. I have made all the classic errors trading and then some of my own probably. But I am now at the point where I have basically one bad thing I do that I need to take care of..

Using What EO and others here have provide us with as a methodology to trading is the first step in what should be a great life changing event.

Think about if you took a job trading for a bank or a investment firm etc.. They Hired you because you DIDN'T have any experience. No experience no bad habits to break. They then teach you what they want you to do. You see this BUY, You see that SELL. Price hits a ma, Take a bit off and cover the rest. So if you were getting paid nothing but a LOW salary to work for someone else. You would have no problem doing that and it might be the easiest job you ever had.

So now the hard part, You are working for yourself. Why is this so hard for us to do. It isn't. One day you will look back and not believe you every had any problems doing this at all. All the successfully traders I know think trading is boring because it doesn't require much thinking to do. After years of looking at charts they know what to do when they see their triggers. NO this doesn't mean every trade works out. WE CAN NOT FOR TELL THE FUTURE. But we can know without a doubt we will have more profitable trades verse nonprofitable. Just because the odds are there.

So what can we do to make this work..

1. Take the emotion away from it. I know people who trade, they get a bad trade or two then they trade less $$ because they don't want to or can't afford to lose more. Then they have a couple of winners and they up their risk and low and behold they take more loses. You need to trade consistently if you don't have the $$ to trade big, DON'T.. Trade small enough that it doesn't effect your thinking process. Take the trades because of what you
see on your charts. Not what is in your account. You can get accounts that allow trading a penny if need be. What if you were working in that bank and every time you hit the button a couple of million went into play. That is what they do, So why do we worry about a few dollars..

2. Don't focus on the pip or dollar amount when you get into a trade. Trade the charts information not your P/L (profit and loss ). If you need too setup your trading so you can place orders on one platform and watch the charts on another. I have 2 different platforms and either one the entry buttons can be placed to a separate window. This way I can watch charts on one and trade the other, never making a decision based off the balance on the trade itself. This will also help once you start making those incremental jumps in trade value as the market could careless about how much per pip you trade, But it can matter a lot to your thinking when you start trading bigger money.

3. Trade multiples of your $$ amount. With this style trading it is to our benefit to trade multiple orders. As you have seen, one of the main functions is to take some profit and cover the rest ( set your stop to a bit above break even). This way you will always make some $$ on most of your trades. If you normally trade $3.00 per pip place 3 $1.00 trades instead. Six at .50 cents. would even be better will give you more options as to scaling in and out. Trading off all the different time frames as we do..

We sometimes get into a longer term trades than just intra day. Like on Thursday I believe it was the price hit a turning point on the 4 hr. Some on the thread entered on the 15 min signal closed most, off that chart but left some on. They didn't close totally until Friday afternoon for over 300 pips. This will happen time and again as we are getting better entries than most people who only look at the higher time frames. So we are getting the best of both worlds. But if we close it all we lose that advantage.
Also it is a lot easier to add on to a trade that is already in profit than to open a new position.There is always pullbacks on any trend so once we are in the trade we can scale in and out as we watch the smaller time frames, or as EO does sometimes take the opposite trades on a different platform. Some will even allow both directions or hedging on the same one .

4. Once we get into profit at the very least move your stop to break even. The better idea would be to. Say we traded 3 orders on our $3,00 per pip trade. We just hit our 5 or 10 ema line and we take profit on two orders at 25 pips or $50.00 dollars then move our stop to +3 above break even. If we did get stopped out we will still make $28.00 because we locked in our profits. If continues in our favor we can then continue to move our stop up at every ma level till we get a reversal trigger. Maybe a 35/50 ma cross or a touch of the 62 ema 1 hr. But that is how we trade the charts not our balance. As we learn more in detail the ins and outs of our signals we learn when we should not close early but maybe look for more pips on certain trades, But in the beginning this will serve most of us pretty well.

5. Confirm your trigger off EO's postings or the flash cards we put together and can be downloaded from NYJet.. Take the trade then manage it in accordance of the rules.

6. Place your stops as well. They protect you from more than just a bad trade. Anything does and can happen that isn't any of your fault. Power outages platform failure computer failure etc..So place your stops They vary dependent on the trade. We can take a trade off the 15 min chart. But it could develop into a trade using the 1 or 4 hr. If we want to stay in it for those higher time frames the stops could grow. Hopefully we had taken some profit already though. These types of trades and stops will vary from person to person as your account size and Money Management comes into play. Plus you can always exit and re-enter if the $$ isn't there for the whole ride.

7.Don't feel just because others can take every trade. That you must.You could have taken the 15 min. took some profit and covered and be out and they are still in. Nothing wrong with that. Most of the times if they are still in and you are out there will be another trigger to re-enter and you will have a better fill. They will have a ways to go to get back to Break Even.

I hope someone gets a little from this . I mainly do it for myself but hope it helps others also Looking forward to another week. Trade Well Ken

I know I got something from this, that is why I like this thread because of the constant teaching and learning going on. :nerd:

AWESOME JOB ONCE AGAIN KEN LEE!!!

HOLLA

Good job!!!

Hope everyone is having a great weekend!

Turtle and Ken Lee both had some nice posts this weekend. If I was to place myself on the numbered list, I would say I'm in a loop between 31 - 36.

Something to read .....

http://uk.news.yahoo.com/21/20090405...d-6323e80.html

baz

Good read Baz!

Only trouble with that is he was the last person in the country to realise just how bad it is - And he's the b****y chancellor.

" 36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading account
continues to grow as we increase our contract size."

That's all you need to do. There is nothing more to it.

If your at this stage, than I applaud you!

Excellent post Ken.....this one I'm printing and saving!

I am sure everybody remembers that 4030 area long trade....here it is on the weekly i was taking a look at.

How good is that!!!!!111

Sorry...ment 4330 long around 10am on 4/1/09.

I just noticed the 4030 area was 3 weeks ago

Good thing i don't have to start work for 10 hrs. hehe