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We all need pivots to win..yes or not? 13 replies

The System (Irony included) 1,175 replies

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The System II (Yes with irony)

  • #13,141
  • Jan 13, 2010 5:37am Jan 13, 2010 5:37am
Quoting elizo
Good question. This is something probably FX will answer even more clear, but my point is: normally not. Less than 20 pips and banking will create a bad habit for you. Only if it stalls clearly I will try to bank at max, but we have to give enough room for price to explode and catch the runner. I am not saying that this is a clear cut rule. Just that regularly price will tease you a little bit before moving to the +30 area.

I am looking for a great post from FX where he explains all this perfectly. I'll post the link asap.
I was looking for the same post too to try to help ready. Are you talking about the post where he talks about relying on risk reward ratio and not on price action too much when we are in between entry point and +20?
You wont survive without preserving!!!
  • #13,142
  • Jan 13, 2010 5:41am Jan 13, 2010 5:41am
http://www.forexfactory.com/showpost...ostcount=11758

This is it. Pure Gold.
  • #13,143
  • Jan 13, 2010 5:45am Jan 13, 2010 5:45am
Quoting elizo
Good question. This is something probably FX will answer even more clear, but my point is: normally not. Less than 20 pips and banking will create a bad habit for you. Only if it stalls clearly I will try to bank at max, but we have to give enough room for price to explode and catch the runner. I am not saying that this is a clear cut rule. Just that regularly price will tease you a little bit before moving to the +30 area.

I am looking for a great post from FX where he explains all this perfectly. I'll post the link asap.
Many thanks Elizo. That makes sense given that the over-riding objective is to catch runners and, as you rightly pointed out, avoid getting a bad habit of banking sub 20 pips.
  • #13,144
  • Jan 13, 2010 5:52am Jan 13, 2010 5:52am
Quoting ready
Hi Elizo,
This is something I struggle with at double tops or bottoms. If the move is less than 20 pips, should I exit if price retracts from double bottom/top, take some profit then look to re-enter OR stick with the position and hold out for the runner? I've had several identical trades like this recently - I don't mind handing pips back for the eventual runner but want to check I'm not missing out on a finer point of trading.
this is a legitmate concern.. ready.. and a concern of many as it was a big concern of mine in the past and still if i am not sharp enough up on my game plan..

this is where a trader is at the cross road in our way of trading..

1) preserve/bank within 1st hurdel 20-25 pips and reenter..
or..
2) handing back pips and even some loss on top of it (5-10pips max) for the eventuall runner..

ok trading is about choices.. we are made of what we made of as a trader, based on our decision making in the heat of the battle..
thats where our great mentors powerful words come to mind when he say:
system (with Irony)..
the final edge is: YOU.

but i breakdown 1 and 2 for you..

lets talk about (1).. bank.. give some back.. bank.. give some back.. and so on.. you will become a short gainer with lots of ins and out's enteries.. less chances to catch big runners from the 1st signal (fcr).. taking more trades = to more risk of fakeouts..

now (2).. give some..give some..give some more.. BAMMMMM BANK BIG.. leaving money on the table within 1st hurdel (20-25pips).. you may not even get a runner for a while.. you got to have a thick skin for losses.. your in less trades tho.. less stress lower risk of fakeouts.. then you will eventually bank on bigtime runners.

now how can you get the best of both world?
thats the real question?

I wish there was a clear set instone answer, but i never could find one ... the best way i can explain it technically, is what i have preached and put together the PLAN structure..

but fundemntally.. having a daily step by step mentor could go in a long way till eventully fall into comfort..
however..
all i can tell you guys is this.. that nothing will ever take place of live real time trade practise.. forward testing with reall money by sticking to one game plan as a whole.. as u get more screen time under your belt.. then market feel and intution starts to build up for you along with higher degree of confidence.. then all the cross road concerns and second guessing will be wiped away as u find your little comfort zone.. this is where you have turned into a mature trader in your own little plan/territory.

for me choice two is the priority..but if market is just not giving out and its too messy, then i try to get what i can or give away as less as i can.. but, what i don't do for certain is, to ever i mean ever to deviate from choice two at every start of my trading day.

Market will go on a run sooner or later... it has too.. if it stay flat for ever that is when the financial world is ending.
Market has got one weakness and thats what i feel I have definantly exploded on in my plan.. its all build around catching that runner.


i hope it helps you all.
  • #13,145
  • Jan 13, 2010 5:58am Jan 13, 2010 5:58am
Quoting elizo
http://www.forexfactory.com/showpost...ostcount=11758

This is it. Pure Gold.
Brilliant - thanks.
  • #13,146
  • Jan 13, 2010 5:59am Jan 13, 2010 5:59am
Quoting fxachilies
this is a legitmate concern.. ready.. and a concern of many as it was a big concern of mine in the past and still if i am not sharp enough up on my game plan..

this is where a trader is at the cross road in our way of trading..

1) preserve/bank within 1st hurdel 20-25 pips and reenter..
or..
2) handing back pips and even some loss on top of it (5-10pips max) for the eventuall runner..

ok trading is about choices.. we are made of what we made of as a trader, based on our decision making in the heat of the battle..
thats where our great mentors...
As I said, he would explain much better than me. Another one for the System II Anthology. Guys, bookmark this and read back regularly.

Thanks, Fx.
  • #13,147
  • Jan 13, 2010 6:03am Jan 13, 2010 6:03am
Quoting TipTop
i already taken my first profit @1.4550 now waiting second take profit @1.4575

TipTop
Why second TP @ 4575?

What if market explodes on the upside? This is a big mistake IMHO. At least, based on what we do here.

I would not set a fixed TP ever with this methodology. Let the market move and move with it. You grabbed by you know what part. Ride the wild horse, now it's yours.
  • #13,148
  • Jan 13, 2010 6:10am Jan 13, 2010 6:10am
Wow ! What a move!

Hope everyone is on board yet!

Moving stop to 1.4536
You wont survive without preserving!!!
  • #13,149
  • Jan 13, 2010 6:14am Jan 13, 2010 6:14am
Fxachilies!

A question!

Now price is braking a bracket on the 1h time frame too. Is this a point where we should try to expand and try to get a move like you described in december (600 + pips)? You said you would talk about it later
You wont survive without preserving!!!
  • #13,150
  • Jan 13, 2010 6:15am Jan 13, 2010 6:15am
Quoting fxachilies
this is a legitmate concern.. ready.. and a concern of many as it was a big concern of mine in the past and still if i am not sharp enough up on my game plan..

this is where a trader is at the cross road in our way of trading..

1) preserve/bank within 1st hurdel 20-25 pips and reenter..
or..
2) handing back pips and even some loss on top of it (5-10pips max) for the eventuall runner..

ok trading is about choices.. we are made of what we made of as a trader, based on our decision making in the heat of the battle..
thats where our great mentors...
That's a great help Fx, much appreciated as always.

A fair chunk of my query I guess stemmed from having done a number of trades recently that moved from c20 profit to BE or small loss without seeing a runner. As you say, it comes down to having a thick skin, getting more trading under my belt, and believing and (we all now what's coming next) STICKING TO THE PLAN. The current runner is excellent proof of this.
  • #13,151
  • Jan 13, 2010 6:16am Jan 13, 2010 6:16am
Once again, great post by fx.

I,m still riding this rocket aswell stop moved to 1.4536 (valid fcr? 2 bar pullback)

many thanks

Chris
  • #13,152
  • Jan 13, 2010 6:18am Jan 13, 2010 6:18am
don't cross your eyes on toomany timeframes.. everything is right infront of you in the 5m chart..
if you keep playing #1 sc3.. u will catch that 600+ if you like..

one step out of time Jazz..

stay tune.. we will talk about soon..
  • #13,153
  • Jan 13, 2010 6:25am Jan 13, 2010 6:25am
Hey fx,

nice trade going (i'm with you),

1 question. why the early entry 1.4985?
  • #13,154
  • Jan 13, 2010 6:26am Jan 13, 2010 6:26am
Quoting fxachilies
this is not to show off.. just simply to show you how confidence i am on my plan and what I preach with laying big money on the line..
just this one time..

..for the doubters who open their big mouths and tell me that i demo trade.. LOL..

http://cdn.forexfactory.com/images/attach/gif.gif
fx, thanks also for showing your returns on this trade it is very inspiring.

If you don't mind can i ask what % you risk per trade atm.

thanks

Chris
  • #13,155
  • Edited Jan 14, 2010 2:55am Jan 13, 2010 6:29am | Edited Jan 14, 2010 2:55am
hi, I see market moves nicely today. was unable to trade at London open, but took fcr at 1.4541, I'll post my chart of day trades when London closes. Continuing to read the whole thread, meanwhile I attach notes from first 50 pages Thanks for great explanation on double bottom/top profit taking fxachilies
Attached File(s)
File Type: doc Notes page 1-50.doc   1.8 MB | 969 downloads
  • #13,156
  • Jan 13, 2010 6:40am Jan 13, 2010 6:40am
Quoting FOURX
Hey fx,

nice trade going (i'm with you),

1 question. why the early entry 1.4985?

its called big balls... jk.. lol

thats when a fool jumps the gun.. I got lucky that it did not trun on me to quick and finally took off my way..

I highly do not recommend it.
  • #13,157
  • Jan 13, 2010 6:49am Jan 13, 2010 6:49am
ok,thanks fx
  • #13,158
  • Edited 11:47am Jan 13, 2010 9:31am | Edited 11:47am
I missed the ride up due to my inexperience when I chickened out on my long trade at 4492 after I saw the double top. But I waited patiently and was able to catch the reversal from 4559. With the screen time and following and observing the examples here in this thread I think I am starting to feel comfortable (not complacent though) with this style of trading. Who would have thought that trading "noise" profitably was possible ?

Thanks for all the help here.
  • #13,159
  • Jan 13, 2010 9:43am Jan 13, 2010 9:43am
Hi all

managed to catch this runner north for +50 and watched the bracket set up for next trade.

Bracket broke south but must confess the mind games stopped me entering because it looked so bullish.

Wondering if anybody banked both ways and followed the PLAN

Chris
  • #13,160
  • Jan 13, 2010 9:52am Jan 13, 2010 9:52am
totally missed first london swing, internet problems.
trades 3 and 4: lots to learn still
ty
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