Jacko's Forex House of Pleasure and Pain | Page 365 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Chicky's House of Pleasure and Pain 11 replies

Carry Backet w/ Jacko's AH 10 replies

Hello Guys is a pleasure to be here. I'm new to MT4 1 reply

Jacko's P&P Trend Trading Method 73 replies

Attachments: Jacko's Forex House of Pleasure and Pain
Exit Attachments

Jacko's Forex House of Pleasure and Pain

  • #7,281
  • Edited 3:10pm Apr 28, 2009 2:27pm | Edited 3:10pm
I think it's always good to look at the case for both sides. The correction was rather obvious on the 8 hour chart this morning....at least sufficient to move one's stop or to be prepared for a trailing stop to be hit. There are concievably a lot of EURUSD bulls, based on last weeks reversal pattern and positive action in the commodity currencies, although the consnsus here is consolidatively bearish. I am trying to see the charts from the bullish view too. All said, orders are in to re-sell at the 62 fibo from 1.33 and add on confirmation from the price action.
  • #7,282
  • Apr 28, 2009 3:39pm Apr 28, 2009 3:39pm
Quoting BullsAndBear
I got to ask you guys where you saw this bounce up. The daily trend is down, the overall trend is down. It looked to me like we just stopped midway and headed back up. that was unusall. Broke back thru the 4h trend line, horizontal support @ 3080 which also happened to be the daily pivot. It looked to me like we should have hit supprt3 or possibly 2800,,,bottom of the chanell.
Hey, bulls.

I do understand what you're asking . . . at least, I think I understand what you're asking, which is far different than actually knowing.

Suffice it to say, on my personal analysis, I was watching it closely not knowing which direction it would go because of a couple of things indicated in the chart below:

1. The support trend line (some call this a bottom trend line) was hit nearly to the very pip (i.e., according to how the line is drawn). This was a sign that things could head north.

If the market would have dropped below this level . . . say to 1.2940-ish, then I would have jumped in as a SELLER. But it didn't; so I assumed the market was getting tired and needed a break for a bit thus heading north.

2. There are resistance levels all throughout 1.31 but there seemed to be a heavy one at 1.3. The daily high indicated with an arrow was 1.2993, which, incidentally, was near the rounder of 1.3. We all know how powerful rounders can be from Jacko's teachings, especially a rounder full of zeros, like 1.30000000000000.

The two upper black trend lines are drawn differently to show where some have drawn them. I personally would use the upper solid black line whereas I have seen some drawn them as indicated by the lower dotted black line.
Attached Image (click to enlarge)
Click to Enlarge Name: eur, 00038.gif Size: 17 KB
  • #7,283
  • Apr 28, 2009 3:46pm Apr 28, 2009 3:46pm
And . . . I'm sure there were some fundamentals involved as well.
  • #7,284
  • Apr 28, 2009 4:01pm Apr 28, 2009 4:01pm
yes I got in countertrend...risky...but the .50 fib line on H4 seems like a viable candidate...thus...I figured the RR was worth it (1:2)....so far it's sitting..thus check for the future to get in further away than I did this time....we'll see how it plays out.
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #7,285
  • Apr 28, 2009 5:08pm Apr 28, 2009 5:08pm
Nice look off the bottom Hans....congratulations......a prepared mind is victorious....I am back short from the 62.
  • #7,286
  • Apr 28, 2009 6:12pm Apr 28, 2009 6:12pm
Quoting bez3000
Hi Jacko I have a quick question I hope you or one of you group can answer. I know we should only trade with the trend, but I have noticed some of you group are trading long and short, am I missing something?
Still loving this thread!
Hi Bez,

I trade only in the direction of the trend for my own trades but some of the more "adventurous" traders also trade off the comments of where I think the market is going to.
They are doing extremely well.
Also they are not using a 100 pip TSL. They are using just my comments of where I think the market is going to each time.



.
Jacko
  • #7,287
  • Apr 28, 2009 8:29pm Apr 28, 2009 8:29pm
Here we are again....will re-load if things stall here.
  • #7,288
  • Apr 29, 2009 12:30am Apr 29, 2009 12:30am
Looks like we have FOMC tomorrow. This completely depends on what is said, but this could send the euro to even higher price levels (maybe 1.34). If the U.S. arrives on their silver horse with reigns blazin' to discuss additional quantitative easing (as they so poetically put it), then I imagine long position-ers will enjoy their morning breakfast.
  • #7,289
  • Apr 29, 2009 1:17am Apr 29, 2009 1:17am
I know I am thus far....









morning Wayne....
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #7,290
  • Apr 29, 2009 1:22am Apr 29, 2009 1:22am
Hi Jacko,
You seem a very honest and successful man. I am hoping you can help me. I want to be a trader but my family says that it is gambling. My wife says that I should try harder to get a better job and that I am wanting to be lazy and not work. My dad is cool about it and says that if it is what I want to do then it is OK with him. What should I say to them to tell them that trading is not a waste of time. I have a good job that earns good salary but I hate the work and all the games everyone is playing at work. I think that my position at the firm may be downsized and I will be looking for another job again soon. This has happened before to me and I got depressed. I have saved some money if I want to use it. What do you think I should say to my family?
  • #7,291
  • Apr 29, 2009 4:08am Apr 29, 2009 4:08am
Quoting teddybearhug
What do you think I should say to my family?
Sorry for "overriding" Jackos answer before he came to speak. But it is a very good question in my eyes, teddybear. I am also very fresh in the market, my situaiton is also similar to yours, but my familiy merely stands behind me (My wife says "it's your money, do what you need to do"). Even though we all know it's not just my money. I am also some kind of bored about my day-in day-out job.

In your case - as it is very similar to mine you need to talk with your family about what Forex is. You need also to tell yourself what Forex is and make some things clear to yourself.

* Forex IS gambling if you're new to it. Even I heard of successful guys who blew themselves away by ignoring their own rules. I even read about people who accidently entered 700 lots instead of 70 while trading and their broker stalled their close order for some minutes which resulted in a total wipe out.

* Money management is the key to get rich but risk management is the key to preserve the wealth for your family.

* You (normally) need to pay your family's bills. So your everyday job is still very important. You cannot go to a market like this and say hey here I am. Now I can quit my job and earn my bill payings here. Also see the points above for this.

So be careful, take your lessons and slowly get into the market by learning and doing. This is what you need to declare to your wife. You need to calm down (I know it's hard) and make your way to success more like you would se making an own business.

And then maybe in some months or even years you WILL be able to get your daily bills payed by forex.
  • #7,292
  • Apr 29, 2009 4:16am Apr 29, 2009 4:16am
Quoting gajraaj
You are almost right. You use AH when the market goes against you and hits your SL. So not only that you didn't take any profit but lost about 100 pips.

Hope this helps.
My understanding is when your stoploss gets hit (regardless of the size of the loss) the A-H comes into play.


Regards
Steve
  • #7,293
  • Apr 29, 2009 5:16am Apr 29, 2009 5:16am
Quoting teddybearhug
Hi Jacko,
You seem a very honest and successful man. I am hoping you can help me. I want to be a trader but my family says that it is gambling. My wife says that I should try harder to get a better job and that I am wanting to be lazy and not work. My dad is cool about it and says that if it is what I want to do then it is OK with him. What should I say to them to tell them that trading is not a waste of time. I have a good job that earns good salary but I hate the work and all the games everyone is playing at work. I think that my position at the...
Hi Teddybearhug,

There are three issues that you need to consider regarding trading versus a career as a trader …And you have to remember that I am a trader so I am biased.

Firstly employment security
The salary has never been a truly reliable safety net. From your post it sounds as though you have been through the awful reality of being made redundant and unemployed. As you get older, this awful reality will become even more pervasive.
Speaking to friends and acquaintances of mine it now appears that , unless you have an exceptional skill or talent, your career in most businesses as an employee now finishes at 40. Now considering that most of your generation will easily live till your 90’s and beyond, you will be 50 years short of income.
I personally think that the "gamble" that employers will look after you after your 40's is the biggest (and worst !!!) gamble that people that people can take.

Secondly, your 401k / retirement funds / superannuation (depending on the country where you live)
These funds have been decimated in the last 12 months. Due to the fall in world equity funds, most people who were looking forward to a reasonably beneficial retirement have been rudely awoken to find that their retirement funds are now insufficient to keep them in the manner they were expecting. Worst still , they have no time nor the skills to rebuild their lost assets.
And in case you think that the current crisis is a unique and exceptional situation, then you only need to look back to the late 1970’s when the previous generation of retirees had their assets destroyed by the stagflation of the late 1970s.
The generation before that was the 1940’s and WWII effectively destroyed their retirement funds.

Thirdly, social security
As the very demanding and politically powerful baby boomer generation gets older, more government resources will be allocated to keeping them alive for longer. Unfortunately for the younger generation, this will take away from other social security benefits, so if you lose your job for any length of time, you go backwards (financially) very quickly…and in some cases, they will never recover. Again, the "gamble" that social security will look after you in your later years is looking more and more like a terrible gamble.

Now as I have said above, I am biased…..
But as a trader, once you have mastered the basic skills of trading, NO-ONE can take away your talents, your experience and your skills.

As I hammer into all my group members, they are learning a skill that they can use whenever they want, where-ever they want and as often as they want …FOR THE REST OF THEIR LIVES.

No-one can take it away from you. It is yours and YOU determine how you wish to use that skill.

To me, that is a much better gamble

.
Jacko
  • #7,294
  • Apr 29, 2009 5:32am Apr 29, 2009 5:32am
Quoting dawsonsg
My understanding is when your stoploss gets hit (regardless of the size of the loss) the A-H comes into play.
Steve

You are right. I just qouted 100 PIPs as an example since thats what we are playing using Jacko's method.

G
  • #7,295
  • Apr 29, 2009 5:32am Apr 29, 2009 5:32am
Quoting jacko
Hi Teddybearhug,

There are three issues that you need to consider regarding trading versus a career as a trader …And you have to remember that I am a trader so I am biased.

Firstly employment security
[color=black][font=Verdana]The salary has never been a truly reliable safety net. From your post it sounds as though you have been through the awful reality of being made redundant and unemployed. As you get older, this awful reality will become even more...
Its all in the mind.
  • #7,296
  • Apr 29, 2009 5:44am Apr 29, 2009 5:44am
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting teddybearhug
Hi Jacko,
You seem a very honest and successful man. I am hoping you can help me. I want to be a trader but my family says that it is gambling. My wife says that I should try harder to get a better job and that I am wanting to be lazy and not work. My dad is cool about it and says that if it is what I want to do then it is OK with him. What should I say to them to tell them that trading is not a waste of time. I have a good job that earns good salary but I hate the work and all the games everyone is playing at work. I think that my position at the...
It is possible to do all three - find a better job, keep the wife happy and learn to trade (save your money until you have acheived a period of profits say 6 months and your have your system set - use a demo account to start)

Learning to trade takes time and effort, you should look at this process as a form of night school, were you attend on 2 or 3 nights a week, during the day you work and on the other evenings and weekends you spend time with the family or study when they do not require your attention.

After the initial period of demo, trade small, but still part time, then when you have a good amount of historical data (proof to yourslef and the family) - let the family know you are going full time in 6 months but will be working weekday evenings until then to build a susbstantial account and increase there bank account (financial security) - it's a way of proving to them that you can do it.

thats my plan and thanks to people like Jacko, J16 and Strat - I'm on my way

regards

MPP

P.S. Also - what Jacko said -
  • #7,297
  • Apr 29, 2009 6:07am Apr 29, 2009 6:07am
Quoting 5abi
I will just add a couple more lines to a perfect post- unlike your 9-5 day job, there may be certain periods (weeks, days) when there may be market conditions prevail that are not conducive to your style, method, system (whatever you name it). So you may not get paid regular sums, at regular intervals.

Also as MPP said, ensure that you have good practice to start with, 6 months or more better (varies with the person) and IMHO, most fail at this venture because of low capital. If you are going in with a sub 25K acc, then only trade mini lots or micro lots. Dont expect that alone to sustain you. Go full time trading only when meet substantial account size. I say use 2-4% return a month to crunch numbers and see

Last, not the least, gambling does not always allow you to create your own edge, but as a trader you can and MUST define your edge and play with that. so there is a big difference in two.
Its all in the mind.
  • #7,298
  • Apr 29, 2009 6:58am Apr 29, 2009 6:58am
Quoting dawsonsg
My understanding is when your stoploss gets hit (regardless of the size of the loss) the A-H comes into play.


Regards
Steve
not entirley correct - if your sl gets hit you have the option of setting an AH trade at the level you were stopped out AFTER price has moved beyond your another SL 50/100 pips (depending on volatility) and providing you were trading with the trend.

If the AH itself gets stopped out that it's - wash, rinse and start anew with a brand new trade.
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #7,299
  • Apr 29, 2009 7:11am Apr 29, 2009 7:11am
Quoting teddybearhug
Hi Jacko,
You seem a very honest and successful man. I am hoping you can help me. I want to be a trader but my family says that it is gambling. My wife says that I should try harder to get a better job and that I am wanting to be lazy and not work. My dad is cool about it and says that if it is what I want to do then it is OK with him. What should I say to them to tell them that trading is not a waste of time. I have a good job that earns good salary but I hate the work and all the games everyone is playing at work. I think that my position at the...
teddybearhug

All I can say is that you are not alone. There are many (including me) on this forum and otherwise, who are in the same boat as you.

Here are my thoughts

- There are n number of methods / systems/ tools etc to trade forex. However, the key requirement is to find a mentor who is established, successful and honest.

- Start with one method, one mentor and one pair to keep things simple.

- I prefer to start with a micro account rather than a demo account just to get the real feel, involvement and seriousness. I started with a $500 micro account. At 100 pip stop, I cout trade upto 2 microlots without risking more than 4% of the capital. However, my purpose for the micro account was not to make money but to learn the system. In just first 3 trades, I increased by capital by 10%. So now I have that money to play without risking my capital. Or like jacko says "play the casino money"

- In the next step, I target to open a standard lot account with maybe 20K or so. As many other members of the group said, capital is king here. You need it but you may not use it, as you will learn later. All you need is to play safe on the first few trades, gather some "casino money" and then increase your risk appetite. However, all this without breaking the rules of your system.

I am rather new to this field and this is my opinion based on my understanding. Till now this is working well for me. If the senior members of the group want to correct, please feel free.

my $0.02

G
  • #7,300
  • Apr 29, 2009 7:17am Apr 29, 2009 7:17am
Quoting gajraaj
teddybearhug


- In the next step, I target to open a standard lot account with maybe 20K or so. As many other members of the group said, capital is king here. You need it but you may not use it, as you will learn later. All you need is to play safe on the first few trades, gather some "casino money" and then increase your risk appetite. However, all this without breaking the rules of your system.

G

mini account - not standard - and you should really be risking 2% at most of your balance at any given time - 1% being even better.

Patience is one of the key issues in trading - otherwise it's crash and burn - been there done that...
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
2 traders viewing now