Trade what you see NOT what you expect

difficut to know the market...

made a few notes on your chart .Ken

Here maybe this will help Ken

Here is a great 1:00 trade

Originally Posted by pippist http://forums.babypips.com/images/buttons/viewpost.gif
Hi Ken,
I am a new trader and was reading through ur pdf and thread. thanks a lot for helping out. I have a simple question when reading through your explanations. what do u mean by "taking trades away from the MA". I cant understand that phrase. please explain as i having difficulty in understanding what is it. I have attached a file. by trading away from MA do u mean that we trade the portion where i have marked in red. ie after seeing any reversal candle we short til it touches MA. thanks a lot for ur help.
One of the biggest losses that new traders make. Is when they try and turn price back. The see price going up and they think I will take a short when it turns but they really don't have a plan in place to do this and take lose after lose.

So for new traders the simple practice of trading away from the Major MA's . Will in most cases get into trades with the trend (the direction the price is moving ) The major ma's are the 35/50 on the 15 Min. the 50/62 ema on the 1 Hr. and the 50 on the 4 hr. So look for entries based off the signals to enter the trades.

The reversals happen at the extremes of the swings away from the MA's and we take profit and adjust the trades at the ma's moving towards the major ma's but price can turn at anyone of them. So for begiiners away is best and easyest.

hope that explians that if not let me know.. Happy New Year Ken http://forums.babypips.com/images/smilies/smile.gif

I would like to Wish Everyone a Happy New Year. Be safe out there..

Ken

http://businessmodelsinc.files.wordp...-hong-kong.jpg

Seldom do we get to trade PA around a very significant MA like the 200sma on the daily.

Take note that when price action broke the ma in both directions there was a retest of the 200sma for a great entry! The 15m showed the entry clearly both times.

Great Chart and Great Trade Yes this is key to getting those big moves the best traders here get. Keeping a eye on those higher time frame charts. Then using the lower for the best entries..

Again way to trade..

Happy New Years

Good Morning , Pipsters. Sorry for this post But I need to get something off my chest that has been bothering me for a few days. What ac cured didn't happen on this thread but on another which makes me even madder. A Forex Factory member who has be banned from this thread. Decided to slam EO on another thread. Saying he was perpetrating a scam of some sort. That all the information was given in hindsight.

I don't understand why people have to do those things. You have people like EO willing to take the time to show others how they are making it in this game. And they do very well by the way. But because they can't get it or are unwilling to try and learn. They then have to turn vindictive to others. This is why you see these good threads and mentors disappear they don't need that type of bull in their lives none of us do.

This person said EO never feeds signals. First off this is a education thread to learn to trade yourself, if you want a signal service there are many out there you buy so go buy one and get your 20 or 40 pips a day. Second when his FULL TIME job allows and he is here full time he gives trading entry areas almost constantly. This particular person said he went through the whole thread and couldn't find one instance off a entry area given before it was reached. Bull$#!*. When EO and Infinity were here everyday. It was constant, Always talked about where their trades were heading and what to look for. ( WE Miss That )

The last two times EO was here right around Christmas. he gave a signal late U.S. session to look for. I am not going to look it up but it was Look for a turn at 1.62x I think. Opening Eur or London price turned right on it.
The following day or the next he gave everyone a heads up on a 5:00 O'Clock entry on a down move that was good for well over 50 Pips. Those are just two that I remember clearly lately.

I hate it when this happens because we appreciate everything EO has done for us and understand he also runs a business full time. I hate to see people get banned for their point of view but this particular person is serving no good to any, posting lies and maybe needs to be banned from Forex Factory Totally.

EO just remember we all really appreciate what you have done and continue to do for us so unselfishly. I hope your having a Great Holiday and look forward to a great Year here with you and the rest of the group.

I fully support your post Ken. A big thank you to EO, Infinity and yourself . Happy new year

That brings me to my next post. Why are there only a very few that over a year looking and studying and trading this system have really gotten it and are making awesiome pippage. I am one of those that continue to be on the outside looking in . And I know the entries and the prinicipals that are required. So over this weekend I will first show where and why the greatest losses are caused ,( which I don't talk of losers often as you never want that in your mind to much) Then followed by what we can do to get to the level of the EO's and Pippins and Infinity. Maybe a game plan of sorts.

So we will maybe get on the right track for the New Year..

Have a nice weekend Ken

PS cold here 58 F.. Brrrr.

To be a successful trader one has to never stop learning and improving ones own self, however it is is so much easier to blame your lack of success on someone else than to man up and look in the mirror for the source of your problems. I have personally benefited greatly from some of the sage advice of those in this thread and I have incorporated some great new tools into my trading arsenal. For me one of the greatest things I learned here is how to trade ranges with great success, this was always my greatest weakness as a trader.

I wish continued success to all.

Where are the greatest losses from?
The first thing to become a great trader is to limit losses. That is more important than giant gains the giant gains should come as long as we don't have big losses. Our confidence will grow and we will begin to leave our good trades open longer because we know that we are in right. Then a slow shift to managing our trades will put us right up there with EO , Infinty and Pippinole.

But until we can start making the right choices about trades we are spinning our wheels. We maybe making enough to live on but are we really at the level we want to be? I am not. I know the above is true because in my own trading when I use patience and wait for the right entries and do that time after time my trades become easier and I start to have bigger gains but make a big screw up and bam it is like I just started trading yesterday and then you have to build the confidence back up again.

The thing that keeps me going is the fact that I know what I do wrong on really bad trades and I do learn from them. It may take me once or twice but not much more than that anymore to learn to stop doing whatever it is. So I know with some time I will go through all the bad options and only be left with the right way.. LOL

If your not to that point where you realize it is your fault when you mess up big you may have a ways to go. The market itself is never right or wrong it is what it is. Now I am not saying you get stopped from time to time that is going to happen I am saying you do something that really hurts your account. Like 10 or even 20 % That is massive but it does happen. Even a scalper should be able to make up a single loss in 2 or 3 trades and that is big. A regular trader one win should wipe out 3 losses or more. If your a swing trader and you have to win 2or 3 trades to wipe out a loss something is wrong. I was reading another thread . Guy had a 100 pip stop and a 50 pip TP. Seems backwards.

So instead of making the bad trades we will not do that anymore. easy said right. But you see it here time after time and also in every thread almost. The mass majority of people are up and down. They do well then do real bad and this yoyo effect continues until they like me work through all the issues or give it up and go do something else. So we have a fresh year to make a new start and folow the rules we should all know by heart now. But do we and do we follow them. With the issues I have I would have to say probablly not.

Anyway this post was to be about losses to get them out of the way. I don't talk much about losses or post charts showing them as it could be the one thing to stick in your head and when you see it think Ahh a great setup and boom failure. But having been trading a while myself and talking to other traders there are some common failures that happen.

1. Entering to soon after a breakout then geting stopped on a retest. This can be a breakout of a major MA or a session high or low a S/R or even a Trendline. The solution wait for the retest then enter or wait for it to move far enough away to be a a clean break.

2. Trying to turn price when we have these great trending moves in one direction seems like so many people instead of trying to get in with the trend they will try time and time again to enter right on the very top or bottom when it turns. Without any signal to go on. Solution wait for the entry signal to even try to turn it. It should also be at a area you have marked as a possiblity if not there is a good chance that the price will continue on after a brief stall. Watch for your flag and pendant patterns they really work between the s/r levels.

3. Learn the times of day that we get the retracements. Normally late session time when some take profits afternoons US. late London. This is the one that latelly has gotten me. Been doing well taking trades away from the Major ma's at the 10 and 21 , But then we get some strong retracement or even reversals and I get caught up in it. Again just wait for our signals and with any MA trades keep tight stops. Any close the otherside of your entry MA is a sign you may want to get out and wait for the next area. To lose 10 pips or so is better than letting it ride 20 against you . You will have to make up whatever it is so the less the better just don't be scared to reenter. We have all seen price try to break through a area sometimes 3,4 even 5 times before finaly turning back. But I usually don't try to turn it on the third or higher as it could be just be whittling away at stops and when they are all gone it does that 20 pip jump. Which can slip your stop.

4. Looking at the above list it isn't that big and it really isn't why they are wrong the main issue is how are you handling any loss. Is it affecting your confidence are you praying for it to turn. Knowing better than that. I think the majority of us would do better to trade smaller risk amounts that way closing a bad trade is easier . Then as your confidence builds gradually add to that risk. I have found with my own trading I have higher gains when risking less. It is two fold One you jump out to soon because your nervous or two you don't want to close because you don't want that big of a loss. Which does only one thing make your loss bigger. It is better to take the minor loss then get right back in and make it up. Even if the trade was right in the first place and you were just a bit early.

5. Don't get stuck in that I will let it ride to the next MA or level it might turn there. Your still just stacking up negative pips get out and re enter at that next area but this time wait for the entry signal. That is the point the signals are showing the higher possiblity that the trade is right. Using our Candle signals along with Price Action and then throw in the Support and Resistance areas, the high and lows of the previous sessions. How can we be making hardly any losses.

That is enough of this for now I will next try and post what the best traders here are doing and looking at and how we should be right with them. That will be tomorrow..

So why are so few making so many pips and so many making so few?

I believe maybe somewhere along the line the primary goals of the system may have gotten twisted around..

The Main Goal is to pick the areas of greatest concern or where we see that price might reverse using our higher time frame charts. The daily and 4 Hr. Once they are plotted on our charts to watch Price Action in those areas and use our lower time frame charts to get the best entries possible allowing us to get the most out of each MAJOR move. Taking Profit also when price aproaches areas we have marked as possiblities where Price Action shows we again have a turn.

To achieve this goal we need to focus more on our higher time frame charts than we seem to be doing. We watch them for those areas and we enter off them along with price action and signals. But other than just possiblly covering our trades we aren't allowing the profits to build as we should. Every trade is not a scalp ! Repeat after me; Every trade is not a scalp ! If we ever have plans to be half as good as EO and the others we will have to have a shift in our priorities.

The major trade should be the main focus and the scalps icing on the cake. This would be so much easier than trying to grab a few here and there. One reason the best do so well is that even when they are taking scalps they are normally in a very positive trade allready and either just adding to or trading against their main position. Sounds like a great thing to me. Plus I am sad to say their scalps are bigger than mine most times too. The main reasoning for that is they have no fear and we wouldn't either. They are trading from a positive point almost all the time. Very rarelly are they waiting for something to go green. They don't ,if it doesn't they get out and try again Taking trades when your positive is easy you have that feeling of trading with house money. Plus that trades equity is on the plus side. If we can pull this off for a couple of weeks our whole mindset should shift and these ablities will come easier quicklly. I know how I would feel if I had a couple of weeks with gains even at one thousand it would change a lot of things.

We have all gained some patience to wait for trading entries and some have captured some great profits. But the consistency seems to allude us. We need to start using our skills to exceed our previous best and aim for much more. We will go through how I think I know it is being done by the best and how we can, using their skills as a guide teach ourselves to achieve similiar gains.

Probablly the first and foremost thing we will have to do is break our normal trading position size into a workable number of entries to allow us to manage our trades. If we are using to few of entries we have that all or nothing attitude. We need to be able to let some of our trade run while covering to relieve stress. This has been talked about a lot but it is critical to moving forward and if done correctlly can make the biggest difference in our trading the fastest.

Even the few that are achieving those awesome gains cover differentlly. I know one that doesn't take much profit at all while another takes a good portion off at the first areas. One is just covering the cost of the trade and the other is locking in some good profits. Both are doing very well but per pip everything being the same the first leaving more $$ to run has greater gains per pip. But the other having less risk gains more pips. That isn't the only factor but it sounds good and simple. LOL The second maybe having set in his mind a total amount to risk across all his trades may feel more able to take more counter trend and scalping trades than the first already being spread out a bit. Doubtfull but would maybe cross our minds in the begining.

So having the trades setup so we can cover in the way that makes us feel the least anxiety is key. This of course will be a personal choice. But if we do this correctlly we could very soon find ourselves trading at levels only imagined. This alone could be all that some have been missing. But we will go through a complete trade cycle to remind us of what we should be doing.

The SECONDARY GOAL of the system is the short term trades or secondary entries. I post chart with lots of marked trades. I fear some are miss reading what is posted those should not be viewed as a bunch of single trades but primary and secondary entries. You are looking for the best entry point at the extreme point . But if you miss that for any reason then the best secondry entry should be looked for and used. They are also showing points that a great entry can be covered and added too. So when looking at a chart with many entries always have in mind that the entry which makes the most gains is the one you are striving to learn to take.
But we don't always have times of great trades and there are lots of chances to add to our equity by taking short term trades. I don't know for sure the precentage but could figure that 25 to 30 percent of one of the best traders pipage is gained from short term trading. That is a great skill to have but as I said should be the second focus. I do tend to lean a bit more to those trades as it seems easier for begginers to understand a short trade.

But it isn't the ultimate goal. That goal is to be well versed in all the trading methods presented here and have no problem taking them all. That is the only way the few are making 2000 to 4500 pips a week. People don't believe those number are possible I hear crap about it all the time . The reason is that almost anyone making that kind of return isn't bothering to help anyone else.

I will start the trade in a litle while.. Ken

Here something to look at and think about for a minute. This worksheet was made up by EO His self.. Are you using it if so why is trading so hard. Look it over read it . see how the information on it can help you then figure out a way to use it. print copies save to your desktop. Transfer to a whiteboard. Whatever. This is the type information we should be using.

The above document is also on that post as a doc file. You can fill in the blanks on it and save everyday as that date. So no excuses not to use it.

thank's for the worksheet i somehow missed it[

quote=KENNETH lEE;3336355]Here something to look at and think about for a minute. This worksheet was made up by EO His self.. Are you using it if so why is trading so hard. Look it over read it . see how the information on it can help you then figure out a way to use it. print copies save to your desktop. Transfer to a whiteboard. Whatever. This is the type information we should be using.[/quote]

Hope everyone enjoyed the holiday's and didnt eat and drink too much, oh sure!

Anything can happen, keep it simple.

Higher timeframes rule!! 15m pa off the higher tf's s/r are higher probability trades.

Keep an open mind.

Those are my basic rules for 2010.

That monthly candle on E/U looks like more shorts to come. I would enjoy a nice retrace, then a nice seat short to hold with a couple tumblers of patience lol.

Just a chart of E/G, I know this pair isnt talked about in here but we do trade them against the dollar and the euro is still punch drunk from december. Look at the monthly, weekly, daily its about to touch the daily 200sma will keep an eye on this pair.

The entry , Using our Higher time frames charts pick areas to watch when price nears them. then start looking at the lower time charts for the best entry. The best entry would be the one you can get in using the smallest stop. but make sure it is a good signal try and confirm it with all the time frames the best is if they all agree to the trade.