DislikedWell this is my first post in this thread.(and at forex factory) I have gone through most of the thread (it has taken a while !) I have traded this way and like it's simplicity and have been successful with it.
It seems that this thread is dying somewhat, everybody seems to have gone off to a commercial thread, and a new website which I see is charging $100 a month (ouch!) I don't really need any help with the system, and I don't need any coaching. I am comfortable with it.
The system and this thread changed very much over the time it has been...Ignored
Thank you Feb for your precious teaching. Feb told everybody to keep it simple and I think some people want to become famous with it. LOL
KEEP IT SIMPLE. and remember the following from FEB
Thank you my old 44 years old cowboy for your time and take a good samuel Adams from me.
Following Feb instructions that I note over the thread.
In terms of the swing, they have to be formed already with 30-40 pips and the
pullback has to be on it's way before you start placing a stop order The "pattern"
as you said, has to be formed already.
1)wait for the market to have a 30-40 ticks swing at any direction
2) Wait for a retracement
3) set 2 horizontal lines - 1 at the beginning of the swing and 1 at the last swing
4) if the market resumes the swing, place a limit order 2-3 ticks above/ below
the last swing
5) your order gets filled. Now it's pretty much up to the market
wash - rinse and repeat
The only way you will be successful in this business is:
1) to learn how to read the market properly
2) to manage your risk accordingly
3)to understand that this is a long race. Not a sprint.
Stay focused on this rules, if we can call it that way.
The rest will come to it's own.
you just made a great observation
based on your charts, there's something I should tell you guys about the markets
swings/trends has pullbacks and corrections
in essence it's just about the same...some guru's argue that corrections are deeper
that pullbacks etc...It's irrelevant in my opinion
when the move /swing/trend etc. has been going for quite some time now....it's due
for a correction.
Corrections can lead to reversals.
My suggestion is to try to take the first swing of your session, either London, New
York, Sidney or Asian...doesn't matter..In my opinion when sessions overlap is where
you have the best chance.
Take note of this post......
As I mentioned many time, I am a scalper. I've been trading like this since I started, many years ago. But scalping requires not only a strong concentration level, but is harmfully stressful. In my situation, I can't have the luxury of been stressed out the whole trading time.
As for the system II, I mentioned few times this is a high-frequency trading routine. Trading is definitely an art of reading numbers in order to be first in line at the rigth side of the market.
But if the market decides to go the other way, I simply play along.
I will tell you what I use for my scalping. It's applicable on any framework/timeframe.
I use a hard stop, just in case of a connection failure or an unforeseen volatility. I never let my stop to get hit...NEVER.
Your job is to cut that loser short, no matter what. Don't worry about how many times you'll have to cut that loser, at the end you'll get a runner.
Let's assume you are bullish, you go long at your signal, and immediately the market goes against your position(A very common situation). What you should do?? How far is too far?? Does it feel like a cat in the headlights?
This is where you make trading an art. I cannot tell you specifically when to cut it short. None will. But I'll give you some pointers, from my experience ( since 1981)
I use as a reference, how was the market behavior at the past session/timeframe/last bar. Then I have some expectancy/time limit on my trade to work out...or I just simple hit the panic button.
Let's say you'll use the last candle as a reference point. Then , you see the market (assuming you're long) retracing back. If I see more than 50% of the move against me, rest assured I'll be ready to hit the panic button. The point is, you don't know how that candle/bar /time frame is going to end. This is where prediction is useless on the markets.
Trade expectancy is simply put, the trade MUST go your way within a resonable time table/rythm/distance...or I just quit.
Trade expectancy is the only thing that will keep your head above the water.
Trade expectancy is the only tool that will bring consistency to your trading.
Money management alone is not sufficient. Having a good entry, is not enough.
You need to go to the basics on what is that you're looking for in trading??
Bottom line is all about how many Benjamin's can you pull off the market. If you're not consistent, trading becomes futile and frustrating.
In my life as a trader, I can count how many times I cut a trade short, only to see the market going back my way. It''s cool. But I saved my ass way more times. I made some statistics about it from my journal.
Actually, as I have my risk in check with my money management, in this specific situation mentioned above, I just go back and re-establish my position, even if I have to go market.
If you get stopped or just simply bail off a position, as I said many times before, look at the other side, maybe there's a change of sentiment.
The science of trading is simple: You're either on the profitable side of the market or you're not. In order to get on the right side, you use technical analysis (and have your ear on the ground, of course). Then you pull the trigger based on your signal.....that's it...and it's easy.
But how do you transform that into $$$ consistently?
Cutting that loser short. It's more an art than anything else.
The System I and II or any other "system" I put on a thread, is just a framework for you to trade. But if you don't manage the trade, it becomes useless.
I'll be checking this thread more often, as I know for sure questions will arise as a result of this post.
Don’t matter how you put it, your main goal as a trader is to build equity over time. Doesn’t matter how you trade, that’s the end of the road. Wining or losing should be just like another day/another dollar. That’s it. Trading is not “exciting” or “glamorous” is just a way you make a living.
Some of you are still struggling with losing. That’s understandable, no problem. In trading, you need to practice, with real money , over and over until you just wake up every morning and do it like a drunken zombie. If you trade NY on EST.
Take it slow. Don’t quit. Just practice long enough until you develop a “sense” of the market. Learning this craft takes time, patience, energy and is time consuming. But your effort will be compensated. The real losers are the one’s who quit.
You don’t “avoid” losing…You deal with it in a very natural way. Emotionless? No baby, you’ll fell the pain from time to time. That’s why you need to keep pushing the buy/sell button constantly, every day…every week…every month..
The concept of trading feels somehow awkward when you’re starting. Let me give you some “samples” (I enjoy screwing up the Shakespeare language sometimes).
You crank up the car in the morning, Pull off the driveway. But in the middle of the freeway, you hear this BAM!...o shit, you get a flat…So here’s the thing…you probably feel like the whole world is crumbling down….have you ever experience that?
You sit down on your brand new lazy boy recliner…oh yeah what a comfort level you have brother!!! What is the next thing you look…ah yeah baby the remote…this magical wand with omni power is so efficient you just crowned the new artificial king of the house. Ah! it feels like the remote is an extension of your arm, ain’t right? Then. you push your beloved clicker and…NOTHING HAPPENS!!
So you do all kind of crazy stuff from throwing you “king” on the floor or, you send some “blessings” to the mother of whomever invented this damm thing. After all it’s been like 5 years since you replace the batteries……oh boy so you thing they last forever?..again the whole world crumbles on you.
That’s the mentality we bring up to trading. We believe we must win all the trades to look for consistency. Nobody likes to be labeled a loser…right?
You lose. Sometimes once, and the “tendency” is for you to “improve” the “system”…oh well I have news for you, that’s an easy way to deplete your account probably sooner than you think.
It’s very important for you as a trader to gain experience thru practice. Will be nice if with all certainty I could tell you “buy when x cross y” unfortunately won’t work here.
The system I and II are threads based on irony.. After all there’s no system….the market won’t care about any “system”
This is just a blueprint for you guys to follow. You’re taking a chance on the ebbs and flows of the market – fractals etc. They won’t work all the time, but they delivers a high chance of catching the wave just in time.
Screw how many pips you make here and there…that’s bullshit. Use REAL figures…dollars and cents. You’re not getting paid on pips. Use money management based on risk and reward and throw REAL MONEY on the table.
What do you know? You can trade on cents if you want.
Going back to the beginning of this post, any way you trade, any time frame, any method, the road ends on equity. Don’t dwell on the day-by-day battle. Look this on long perspective. I get paid every month, when I am trading. That’s a good mark.
Good karma to all of you.
I just believe in... Peace and good Karma!