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Trading for a Living - Cliff Notes

  • #81
  • Jun 30, 2009 1:30pm Jun 30, 2009 1:30pm
Lesson 8: Pivots

Pivots are very effective in this market.

Even if you don’t want to use them as a principle system please put them on your charts.

Dail pivots are highly effective if you trade any of the majors.

Check out today’s chart of the e/u.

It should really be self explanatory.

A trade I really like is when price blows through the main pivot point, retraces back to the pivot and continues on it’s journey.

It did so today – to the PIP.

This happens a lot and the hit ratio is very high.
Attached Image (click to enlarge)
Click to Enlarge Name: pivots.gif Size: 19 KB
  • #82
  • Jun 30, 2009 1:55pm Jun 30, 2009 1:55pm
Lesson 9: Trade Like Cal Ripken Played

If basebaball isn’t your thing Cal Ripken was one of the most consistent players in history.

He holds the record for consecutive games played and was always ‘in the game.’

So… don’t look to hit home runs everyday.

150 PIP days are rare if you are a CONSISTENT day trader.

Play the game consistenly every day and you will come out ahead.

I hit singles and doubles every day. (31 PIPS today)

That’s a nice single.

Yesterday was a nice double. (54 PIPS)

I’m done for today.
  • #83
  • Jun 30, 2009 2:02pm Jun 30, 2009 2:02pm
but if it blow through and don't retrace back to pivot then it's a disaster lo... assuming the trend will keep on there is a chance it never retrace??
a stop/loss is needed for this strategy?

Quoting acumen
Lesson 8: Pivots

A trade I really like is when price blows through the main pivot point, retraces back to the pivot and continues on it’s journey.

It did so today – to the PIP.

This happens a lot and the hit ratio is very high.
  • #84
  • Jun 30, 2009 2:03pm Jun 30, 2009 2:03pm
Would you be kind enough to share the indicator you use for your pivots. I have never traded with pivots but I'm going to start. I do trade off the 15min chart with entries on the 5min, if that makes any sense.

Also, please keep up the great work. I signed off here for a bit because every thread I would go to, seemed to end in a fight and it was just not something I wanted to deal with. I'm glad I signed back in today for a quick minute to see your thread as trading for a living is my goal, just like many others.

Quoting acumen
Lesson 8: Pivots

Pivots are very effective in this market.

Even if you don’t want to use them as a principle system please put them on your charts.

Dail pivots are highly effective if you trade any of the majors.

Check out today’s chart of the e/u.

It should really be self explanatory.

A trade I really like is when price blows through the main pivot point, retraces back to the pivot and continues on it’s journey.

It did so today – to the PIP.

This happens a lot and the hit ratio is very high.
  • #85
  • Jun 30, 2009 2:04pm Jun 30, 2009 2:04pm
Quoting billye
but if it blow through and don't retrace back to pivot then it's a disaster lo... assuming the trend will keep on there is a chance it never retrace??
a stop/loss is needed for this strategy?
A stop loss is needed for every strategy.

Agree.

m
  • #86
  • Jun 30, 2009 2:05pm Jun 30, 2009 2:05pm
Trading for a living?

Sure it can be done, yes I'm sure people do it, I think I could. 95% fail utterly though, they say, although who knows how true that old saw is?

But is this really what you want to do with your life? And by you I especially mean you guys under 30 or so....

By trading you are "providing liquidity" in the marketplace. Big whoop.

A man should be able to walk the earth and point to the things he has down. I built that! See that clean river? It was polluted before I got to work on it. My Dad was a doctor in the poorest county in the poorest state in the US, and peple used to come up to me on the street, fall down on their knees and hug me, crying "Your father saved my son's life. God Bless You!"

What is a useful life? One spent "providing liquidity" in the marketplace? Please.

If you are a young dude: don't be a sucker. Think about what your life is going to mean on the day you die. Learn to do something useful and to be of use to others. If you want to trade forex, fine, just think about what kind of "living" it will be.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #87
  • Jun 30, 2009 2:07pm Jun 30, 2009 2:07pm
(31+54)/2 a day *20 day >=800pips a month or 8% at no leverage (position size=acc)

if you're doing this consistently
someone will ask why not increase leverage a little bit say position=2x acc size??

that'll get 16%/month with 800pips month w/o much risk added?

Quoting acumen
Lesson 9: Trade Like Cal Ripken Played

If basebaball isn’t your thing Cal Ripken was one of the most consistent players in history.

He holds the record for consecutive games played and was always ‘in the game.’

So… don’t look to hit home runs everyday.

150 PIP days are rare if you are a CONSISTENT day trader.

Play the game consistenly every day and you will come out ahead.

I hit singles and doubles every day. (31 PIPS today)

That’s a nice single.

Yesterday was a nice double. (54 PIPS)

I’m...
  • #88
  • Jun 30, 2009 2:08pm Jun 30, 2009 2:08pm
Quoting Siuol
Would you be kind enough to share the indicator you use for your pivots. I have never traded with pivots but I'm going to start. I do trade off the 15min chart with entries on the 5min, if that makes any sense.

Also, please keep up the great work. I signed off here for a bit because every thread I would go to, seemed to end in a fight and it was just not something I wanted to deal with. I'm glad I signed back in today for a quick minute to see your thread as trading for a living is my goal, just like many others.
The system you see is a retrace system and has nothing to do with the pivots.

Use a 20 and 30 EMA.
Make the 30 red.
Make the 20 green.
Use Stoch(9,3,3)

m
  • #89
  • Edited 2:13pm Jun 30, 2009 2:10pm | Edited 2:13pm
Thank you for sharing. Sounds exactly like the system that I'm already trading, all the way down to the color of the EMA's. The only difference is I use a different stoch setting.

Quoting acumen
The system you see is a retrace system and has nothing to do with the pivots.

Use a 20 and 30 EMA.
Make the 30 red.
Make the 20 green.
Use Stoch(9,3,3)

m
  • #90
  • Jun 30, 2009 2:11pm Jun 30, 2009 2:11pm
Quoting billye
(31+54)/2*20>=800pips or 8% at no leverage (position size=acc)

if you're doing this consistently
someone will ask why not increase leverage a little bit say position=2x acc size??

that'll get 16%/month with 800pips month w/o much risk added?
Leverage is the enemy.

I could also be down 16% month.

m
  • #91
  • Jun 30, 2009 2:15pm Jun 30, 2009 2:15pm
Quoting The Fool
Trading for a living?

Sure it can be done, yes I'm sure people do it, I think I could....
But this is what I want to do.

It's like a large chess game where I get to win almost every week.

m
  • #92
  • Jun 30, 2009 2:17pm Jun 30, 2009 2:17pm
So what you are here for, filling threads with bla bla?

Search for Ronald Raygun, he's 18 years old (or young) and just became an institutional trader.

Why trading FX as a biz? Search for Jacko, in his first post of his famous thread is a good explanation.


Mike, with lesson 10 I'll update the PDF.

Quoting The Fool
Trading for a living?
If you want to trade forex, fine, just think about what kind of "living" it will be.
  • #93
  • Jun 30, 2009 2:18pm Jun 30, 2009 2:18pm
Quoting acumen
Leverage is the enemy.

I could also be down 16% month.

m
simple powerful answers! thanks acumen.

I was under impression that everyone scalp with a leverage... seems this is not the ideal way to do it. em...
  • #94
  • Jun 30, 2009 2:25pm Jun 30, 2009 2:25pm
Quoting The Fool
Trading for a living?

Sure it can be done, yes I'm sure people do it, I think I could. 95% fail utterly though, they say, although who knows how true that old saw is?

But is this really what you want to do with your life? And by you I especially mean you guys under 30 or so....
Is trading what I want to do? Of course not-- I'd much rather spend the majority of my waking life doing something I don't want to do (generic white or blue collar job) for someone I don't want to do it for, only for a pittance few years of respite when I'm barely agile enough to get out of bed, like 99% of the first world. Yes, I'd much rather take that route. And nobody thanks doctors anymore

Anyways, nice thread acumen.
  • #95
  • Jun 30, 2009 2:26pm Jun 30, 2009 2:26pm
is it possible to make a living off of an account of 30k while still trying to increase the account
  • #96
  • Jun 30, 2009 2:27pm Jun 30, 2009 2:27pm
Great thread Acumen,


To the one that asked for a Pivot indicator, I use one that will allow you to chose when to start the trading day.

To set the time, edit the indicator, from when you initialize or from the chart and set the shift. I think the default I use is -2, which allows me to use 00GMT as my day start, even though my MT4 broker is +2.

Of course, Acumen can probably tell you what the best time of day to have the calculations be based off of.
Attached File(s)
File Type: ex4 Pivot_Shifted.ex4   8 KB | 450 downloads
File Type: mq4 Pivot_Shifted.mq4   11 KB | 525 downloads
Makin my way, the only way I know how...
  • #97
  • Jun 30, 2009 2:28pm Jun 30, 2009 2:28pm
Quoting g5ricky
is it possible to make a living off of an account of 30k while still trying to increase the account
If you live at home and have a nice allowance.

Seriously... no.

m
  • #98
  • Jun 30, 2009 2:28pm Jun 30, 2009 2:28pm
Quoting acumen
But this is what I want to do.

It's like a large chess game where I get to win almost every week.

m
By all means, do what you want to do. But my point remains: what good is it in the larger world?

And Cobra, I invite you to use your ignore button on me, you already know pretty much everything and I'm not likely to say anything you would find interesting.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #99
  • Jun 30, 2009 2:32pm Jun 30, 2009 2:32pm
Thank you for this thread! A lot of useful information without the usual blabla.

Very enjoyable.

A word about leverage. Most people on FF have very small accounts, thus they think that the only way that they can make real money is through excessive leverage. In theory that is true, but of course most of those people will end up being a part of the legendary 95%.
All i know is that if i had overleveraged in the beginning of my career I wouldn't even be here today.
Some people get lucky (or some might just be fantastic traders, which
I am not) and survive high leverage and make a killing.
You can of course also go and buy some lottery tix.
  • #100
  • Jun 30, 2009 2:34pm Jun 30, 2009 2:34pm
Haha, if you give up that fast in trading you'll lose a lot like last week.

But don't worry will not bite again.

Quoting The Fool
And Cobra, I invite you to use your ignore button on me, you already know pretty much everything and I'm not likely to say anything you would find interesting.
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