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Jacko's Forex House of Pleasure and Pain

  • #6,921
  • Apr 7, 2009 7:33am Apr 7, 2009 7:33am
just to check my understanding is correct on using this method

1) choose a TF.
2) see if trend is up or down
3) open a trade in the direction
4) SL 40 -50
5) if hit, wait till it goes beyond by another 30pips at least
6) put order at the exact spot u got SL

correct?

Qns
1) What if the price never comes back down. IE trend reversal
2) What if the price activates order but hits SL again?

thanks !
  • #6,922
  • Apr 7, 2009 7:57am Apr 7, 2009 7:57am
[quote=trading801;2655795]just to check my understanding is correct on using this method

Quoting trading801
1) choose a TF.
Start with Weekly or Daily
Quoting trading801
2) see if trend is up or down

Quoting trading801
3) open a trade in the direction
- Read link below, How would you determine where to place order?
Quoting trading801
4) SL 40 -50
- Read link below
Quoting trading801
5) if hit, wait till it goes beyond by another 30pips at least
- Read link below
Quoting trading801
6) put order at the exact spot u got SL


Quoting trading801
1) What if the price never comes back down. IE trend reversal
Then the AH you might have had is a loss.
Quoting trading801
2) What if the price activates order but hits SL again?
It is a loss.
~~~~~~~~~
You are close.

I would recommend reading the file below (PDF). Barry did a great job on it.

http://www.forexfactory.com/attachment.php?attachmentid=185890&d=Dec%2024,%202008%209:32am

Then read it again. And if after reading it 2X you still have the questions feel free to post.
  • #6,923
  • Apr 7, 2009 8:13am Apr 7, 2009 8:13am
done...

what i do not understand is if the SL is hit, and the price hovers around and continues trend.. when do we go in again?
  • #6,924
  • Apr 7, 2009 9:28am Apr 7, 2009 9:28am
Quoting hans356
Though I personally do not have an account size of $250,000, I can understand what James is talking about....
With 95% of people failing in this biz, and yes, 95% of those on this thread and J16 too will fail too, do you really want to kick off with a big account? Go to see Jim's first post on his thread and notice his advice on funding.

Reread that whole first post and take it to heart - every word of it.

Frankly, you do not need an account big enough to live off of. Growing into it is the best thing anyone could do - and it will hold real value for anyone doing so.

Time is on your side, so use it to your advantage. As you get good at this, you can slowly and deliberately grow your risk per trade and move to lower time frames. Take your time and learn it with deliberateness.

I practice a few things that work or me:

1. I pay into my account monthly as a bill to myself. The funding never stops or slows. Get a part time job if your regular employment won't allow this.

2. Jim says "Never let a winner turn into a loser". I take that one step further - I never allow myself to break even - I always get something in the positive. Risking 1% to win a half a percent is fine by me. But I win those very consistently. (Full losers - I had only a few of those last year.). Losing while the account is small is the worst thing you could ever do. The negative impact on the bottom line over time is huge. The magic of compounding is the key to understand. DO NOT let a winner turn into a loser. A hundred dollar loss today is 10's of thousands not in your pocket over time. This one principle cannot be overstated. If you have not yet figured out how to pull this off, then work on the demo only until you get it.

3. I am picky. I take good setups. If it is not plain and obvious, I do not take it. There are simple rules. Follow them. There are lots of good opportunities out there.

4. I also trade the 4hr now. But it took me two years of daily and weekly and 6 months of demo first.

5. New ideas and new setups: never trade them until they are proven with months and months of demo. At least 6 months. Even longer. It may be an obvious thing after a few days of work - but the real wild card may not the new setup, it is the operator - YOU. Test, test, test and prove everything out. Even the stuff from the old pro's like Jim and Jacko.

Be very deliberate in this endeavor. It is a business where the rewards can be huge. It only comes to people willing to work towards them with diligence and and safety. It is hard and easy all at the same time.

Good luck everyone.
I'm pretty much done with all this ...
  • #6,925
  • Apr 7, 2009 12:03pm Apr 7, 2009 12:03pm
Quoting trading801
done...

what i do not understand is if the SL is hit, and the price hovers around and continues trend.. when do we go in again?
If your trade gets taken out and does not move to give you an AH, the trade is a loss. Go to step 1 and look for an entry point like this is a new trade. Because it is.

Try this. It is in the PDF from this thread.

http://www.forexfactory.com/showpost.php?p=2068306&postcount=4154
  • #6,926
  • Apr 7, 2009 3:07pm Apr 7, 2009 3:07pm
What would you consider to be a "good set-up"? Many individuals, including myself, agree that it's best to wait on a very good set-up (be very picky). Would you consider a good set-up to be one of the following: (1) Wait on a 50% fib retracement against the prevailing trend (particuarly at the whole number), or (2) Wait on a divergence pattern between a technical indicator such as RSI or Stochastics and Price Action, or (3) Wait on the alignment of 3 or 4 technical indicators, or (4) wait on the price to move 600 pips without at lease one 50 reversal, then enter a reversal trade, or (5) some other method for determining a "good set-up".

thanks,

Walt
  • #6,927
  • Apr 7, 2009 3:26pm Apr 7, 2009 3:26pm
Quoting jones247
What would you consider to be a "good set-up"?...
The best answer I can you for this thread is..

Quoting jacko
1. buy/ sell ONLY in the direction of the major trend and
 2. buy/sell on dips.(Use support lines to guide you as to price...also "round" numbers ... I also use the 50% Fib ratio..)
3. bank your profits
  • #6,928
  • Apr 8, 2009 12:59am Apr 8, 2009 12:59am
hi all
  • #6,929
  • Apr 8, 2009 1:09am Apr 8, 2009 1:09am
so all in all,

1)look at daily determine the general trend
2)buy / sell at either, a support or round number or 50 fib
3)SL is 50

if SL hit, let it go pass 30 pips, place exact order at SL


btw, wat is a good TP?

so now i am short @ 1.3199 SL 50 < correct application right?
  • #6,930
  • Apr 8, 2009 3:09am Apr 8, 2009 3:09am
Quoting StoragePro
With 95% of people failing in this biz, and yes, 95% of those on this thread and J16 too will fail too, do you really want to kick off with a big account? Go to see Jim's first post on his thread and notice his advice on funding.

Reread that whole first post and take it to heart - every word of it.

Frankly, you do not need an account big enough to live off of. Growing into it is the best thing anyone could do - and it will hold real value for anyone doing so.

Time is on your side, so use it to your advantage. As you get good at this,...
Hi StoragePro,

I saw this statement and thought that I would like to correct it….(I am not upset about what you said, but it is wrong…so I would like to correct it).

On the evidence that I have , there would NOT BE ANY traders in my group that are failing….. every one of them has been learning…. and becoming more profitable (and less losses) at trading.
One of the key benefits of being mentored is that they can see and watch a trader trading profitably (and again, I can assure you that I am trading profitably as any member of the group can see by looking at my trade summaries).
When you see someone trading successfully and you know that he has been successful in the past, then you tend to listen and modify your own behavior to trade more like that person. That, in itself, quickly prevents the risk of the members becoming part of that 95% failure rate. (That failure rate is so high because new traders invariably listen to other traders without first establishing that the other trader is profitable !!!!)

Sure, some members will occasionally try out something different from me and if it works, they will continue to use it.
But if they are thinking of trying something, most will run it past me and we can give them some advice from our experience about that particular strategy and maybe save them some hard earned money.

But probably most importantly, they are not blindly following an untried signal seller who is giving multiple trading signals, based on theoretical mumbo jumbo overloaded with 20 indicators that may or may not work and with no real trading accountability.
I am a trader….I love trading ….and I am profitable…. If I can help a serious and committed trader to improve his trading, I get a huge satisfaction from that. I have a number of members who have either gone on to trade for large banks and brokerages and a much bigger number of members who have now become full time professional traders trading their own account. That fact alone makes the mentoring emotionally satisfying to me.

From my side, mentoring has made me become much more disciplined in documenting the lead up to a trade by causing me to outline all the reasoning behind taking the trade. They can also see how I handle the wins and any losses. It also gives me a diary of sorts to help me improve my own trading.


.
Jacko
  • #6,931
  • Apr 8, 2009 4:12am Apr 8, 2009 4:12am
TWO ISSUES IF YOU MAY RESPOND
1. HEDGING ALTERNATIVE.Your alternative to hedging is brilliant, but you didn't mention what would happen if the market continued rallying against you and u've already put the second order at the SL of the first. And, should the second order also have a SL?. And can it happen that the market keeps on blowing out the hedge orders, AGAINST YOUR FISRT TRADE?
2. RECOMMEND A TIME FRAME
I run my own business and pretty much spends the whole day on my desk. This means I can watch the market from 7.00am to 7.00pm, and my time zone corresponds with london open and close.I've been reading many threads and forums, including yours and most traders seem to favour daily charts. Am currently demotrading with 1 hr charts.Should i switch to daily? and how many pairs would you recommend i watch, if i have all day?
  • #6,932
  • Apr 8, 2009 4:56am Apr 8, 2009 4:56am

Welcome rufusbucks/trading801,


your questions have been answered in detail in this thread already. I personally think you should at least make the effort to read thru this thread carefully before asking any questions.

Marco
  • #6,933
  • Apr 8, 2009 5:02am Apr 8, 2009 5:02am
a BIG thumbsup for Jacko on my part....everything he said was on target...



























and it's all....true.


Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #6,934
  • Apr 8, 2009 5:13am Apr 8, 2009 5:13am
Jacko,

You make a good point. When I entered the forex arena I had a mentor for one on one training for five days & this person used 3 EMA's & FIBS & was very successful @ how he traded. After my five days I understood what he was doing & traded as such for about 2 yrs having decent success, but started to stray from the lessons learned. Now during this two yrs I had phone contact with the mentor & he was still using his tried & true method all the while, but I became bored I guess & started to try different approaches. I too would run my ideas by this person & he would either encourage or reject the ideas. This person was a med-long term trend trader & didn't really care for short term trading. I on the other hand had decided I wanted the faster in & out trading in the short term. The end results was I failed at the short term trading & should have stayed with what I was taught & I knew worked. When I think back to those days, the Turtle Traders & Richard Dennis comes to mind. Many strayed from what he taught & some went on to become really profitable traders & others washed out.

The bottom line......when you have a mentor that is teaching you a system, method or whatever & you see that the system or method is working stick to it & get a good as you can @ trading it. Can people still wash out, YES if they fail to follow what they have learned it is possible, but less likely.

No matter how good the mentor & his system or method might be, human nature will cause a certain amout of traders to fail. That is in NO WAY a reflection on the mentor or his method-system.

Jacko.....your Method-System is sound & if followed will produce profits, but there will always be someone who cannot or will not follow the rules NO MATTER how sound & profitable they are, but the fact remains you have done your job as a mentor by shaing what you know works.

From one who does trade your way.....it works & thanks for sharing.

_______________________________
AceTrader
  • #6,935
  • Apr 8, 2009 5:29am Apr 8, 2009 5:29am
Quoting Marco

Welcome rufusbucks/trading801,


your questions have been answered in detail in this thread already. I personally think you should at least make the effort to read thru this thread carefully before asking any questions.

Marco
im sorry i did .. but its too long with many folks adding bits bits in the end, i am confused
  • #6,936
  • Apr 8, 2009 7:05am Apr 8, 2009 7:05am
the first page would be a good start...you may be surprised...
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #6,937
  • Apr 8, 2009 7:06am Apr 8, 2009 7:06am
Quoting rufusbucks
TWO ISSUES IF YOU MAY RESPOND
1. HEDGING ALTERNATIVE.Your alternative to hedging is brilliant, but you didn't mention what would happen if the market continued rallying against you and u've already put the second order at the SL of the first. And, should the second order also have a SL?. And can it happen that the market keeps on blowing out the hedge orders, AGAINST YOUR FISRT TRADE?
Hi rufusbuck,

I am not really sure what you are asking/describing here...
If the market continued rallying against you, then the A-H would not be triggered. An example:
1. You buy at 1.3200.
2. The the market goes to 1.3100 and stops you out
3. You wait until it hits 1.3050 then place an A-H buy order at 1.3100
4. The market continues to fall to 1.2900
5. Sooner or later the market will turn and come back and pick up your order when you are back in an uptrend.
So you are back in the trade at where you were stopped out but did not have to suffer the big drawdown ( to 1.2900 if you had tried to hold the position). And you you are back in the trade in the direction of the trend

So, if we go back to your question, if the market keeps going up, it would not trigger an A-H trade.


The other alternative that I think you are describing is best asked as "Do you put an A-H trade on a failed A-H trade?" And the answer is No.


.
Jacko
  • #6,938
  • Apr 8, 2009 7:22am Apr 8, 2009 7:22am
Jacko,

I want to thank you for all your time sharing. I know that takes up a lot of time.

Your blogsite has dates for 2008, so I expect you do not keep it current. But do you still do the mentoring thing? I am not in the market for it right now, but I was curious.

I have been following your posts now for a couple of years. Thanks for the education! One day I would like to start trading like you describe, on an alternate account.

Thanks much,

BearPaw
  • #6,939
  • Apr 8, 2009 7:27am Apr 8, 2009 7:27am
Quoting rufusbucks
TWO ISSUES IF YOU MAY RESPOND

2. RECOMMEND A TIME FRAME
I run my own business and pretty much spends the whole day on my desk. This means I can watch the market from 7.00am to 7.00pm, and my time zone corresponds with london open and close.I've been reading many threads and forums, including yours and most traders seem to favour daily charts. Am currently demotrading with 1 hr charts.Should i switch to daily? and how many pairs would you recommend i watch, if i have all day?
The question regarding time frames is a personal choice.... If you feel most comfortable with 1H charts, then that is your time frame..
What that means is that all your technical analysis should be based around the 1H charts.
If someone else is trading Daily and someone else is trading using 5 minute charts has no relevance to you. Their analyses are not relevant to you. You are trading the 1H charts !

In regard to howw many pairs to watch, I recommend only one. The reason is simple....over the longer term most USD based pairs all follow the same direction....pull up a monthly chart over 300 periods (that is 30 years) and overlay the EUR/USD, the GBP/USD and the AUD/USD and you will see that they basically follow each other....so why have the hassle of trading three pairs that are basically going to copy each other with minor digressions.

Also most professional traders get a "feel" for a pair that is usually related to where they live. Most UK traders prefer the GBP/USD pair. Most Australian traders prefer the AUD/USD. Most European and US traders trade the big one: EUR/USD.

Most novice traders want to trade multiple pairs because they want to treat trading as a computer game... trade this, trade that, etc....That is not the way to profits... multiple pairs is the way to overtrading...and overtrading is the biggest killer of traders in this industry.


.
Jacko
  • #6,940
  • Apr 8, 2009 7:50am Apr 8, 2009 7:50am
Quoting jacko
Hi rufusbuck,

I am not really sure what you are asking/describing here...
If the market continued rallying against you, then the A-H would not be triggered....
jacko,

1)what if the price goes away from the AH pending order.. say to 12800 .. when do we start to trade in this direction?

2) say the SL is hit and while waiting for the 50 pips to place AH, the price resume your direction... since i cant place my AH order, when do i get in again?

btw, what TP shoould we use? trailing stop of 50?
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