Cable Update (GBPUSD)

4 misses should never wipe out your account. Your money management needs to improve (or you should wait until you have larger balance to trade). I recommend moving up to the bigger timeframes and trading smaller lot sizes. May take more time, but also safer.

I like the analogy, ugly cousin, hehe. Hedging is for very experienced traders only whom know how to plan exits according to multiple timeframes. Most traders are not good enough to be hedging and therefore should not even be thinking about hedging. Keep it simple... open one trade at a time. Know where to exit whether profit or loss and then reenter at another good setup. Simple.

Today in review....

The lows of London were not only the low of day, but also seem to be pretty close to the true daily open.

1. London Low
2. Daily open.

Seems to be fairly well supported here.

No insult taken at all, and you are right in everything you say. I know where I went wrong today, and I know where to start afresh, and stage 1 is going back to your thread and reading it again.

My big mistake for every losing trade I've had is mistakenly thinking that it may turn around at any second and hanging on too long (or not taking the couple of pips I could take as it retraces and it just getting worse). This has partly been because I've got out before now and then seen it turn around not long after.

Entry/exit is the big part here, I seem to get in too late and not jump out early enough. If I get 20 pips but think it will go further, I'll stick SL on BE+10 with a trailing stop like I did this morning and move the SL up manually on occasions if it gets to particular levels.

Other mistake is not following what I think is going on, and picking up on what others are doing here and blindly following it. Often it's right, sometimes it's wrong, but as usual I'll be too late and we're back to the above!

I've got a new set of rules that I intend to stick to, and I WILL have a new way of doing things soon enough.

Now, a few questions if I may to yourself and any other guys out there:
1. Assuming a spread of 3 pips, why bother with a big SL, why not have a smaller SL and jump back in if it gets stopped out (mainly this is for the initial trade, but equally valid for longer term I suppose if you are closely watching the charts)?
2. Multiple smaller lots? E.g. rather than a buy at 1000 for 5p/p, spread the buys up/down depending on where you think things are going to go so the accumulated total would be 5p/p MAX, but maybe not all get triggered
3. Small (micro) lots that you just leave to run into profit? e.g. buy at 1000 at .1 but it drops to 750 but leave it as it's not a big loss and wait for it to come back. Obviously within reason and only if you know that it will get back that way one day!

And yes, I'll post less cr@p too while there is work to be done here!

to you and your system, I'll be trying to not mix it up with too much other stuff that's going on on here.

There are 4 stages to Forex Trading... You are on stage 2!

The first stage on your trading journey

Naturally, when you first hear about trading forex, it’s pretty exciting...

I mean, it can be a real eye opener to realise you could make some extra money outside of your day job.

And having read reports of successful traders and how they seem to make money for nothing, you rush off to open a spread betting account...

You’re ready.

You read the articles on some financial news web site and you have a hunch that the EURO will go higher.

So, you place your first trade.

You don’t stop to consider that you’ve had no training in forex, that you’ve got no real system to follow...

You were just so excited that you couldn’t wait.

But then something even more dangerous happens.

Your first few trades make you money.

You’re now walking on air.

You go to the office smiling and nobody knows what’s the matter with you.

In your mind you’ve made it. You’ve discovered the secret. You’ll never have money worries again.

In fact, you’re so excited about this that you’re even thinking about when you can hand your notice in to your boss.

You spend your lunch hour plotting out your future living on some island in paradise.

OK, maybe that’s going a bit to far...

But what I’m describing to you is what I call the ‘euphoria stage’ in your forex journey.

Don’t worry, everyone goes though this stage.

It’s a bit like being in love for the very first time...

You’re in a dream world, everything looks just fantastic.

You just can’t stop thinking about it.

You keep telling all your friends and they think you’ve finally lost it.

And while this stage feels fantastic, it could actually become very dangerous.

You see you could make some very rash decisions.

In a blossoming relationship, you might commit too much too soon...

But in trading you could easily find yourself committing too much money too soon.

Blinded by your early success you start raising your stakes and multiplying your risk.

Do so and you could be in for a very nasty shock.

Thankfully, trading has a way of dealing with us...

How to overcome the second stage of your trading journey

I call the second stage ‘crash, slash and burn’.

After your thrilling start, you decide to up your stakes...

Why wouldn’t you? If this forex thing is like printing money, why not print more and print faster?

But this is where you could quickly come unstuck.

With no training, no trading system and trading purely based on your gut feelings, it’s likely to end in tears.

You see, having had some success you get the temptation to up your stakes.

But what happens if you now hit a loser?

This time the stakes are higher so you lose a bigger percentage of your account.

So, you try again.

Your face is getting red and you feel like you’re going to cry, but you still place the trade.

And sure enough, within minutes the price spikes and it chops out your stop loss.

Or worse, you don’t have a stop loss and you let it run, hoping the market will turn around.

But it doesn’t. It continues to move against you until you’ve lost half your account.

You finally cut it and want to smash your computer.

Some people get a grip on themselves at this point and say that’s it and move to the third stage.

But others start to suffer from ‘Nick Leeson Syndrome’.

They hide their losses and plot how they could win it all back. They think nobody will ever know.

But let’s think about it for a moment...

If you’ve lost half your account, to win it back again means you now have to double your trading account.

Just to get you back to where you started.

A sobering thought.

But some people do double up hoping to win it all back on one last trade.

And yes, you guessed it, that trade loses too and now they’re out of the game, with nothing left in their account.

Of course, many actually quit at this stage and never trade again.

That’s why I call this stage ‘crash, slash and burn’.

Because it’s very destructive and everything is destroyed, including your account and your confidence.

But the good thing about this stage is that for many it actually clears the way for them to move to the next stage on their journey.

Sure, they the lesson is painful but going through it can make you even more determined than ever to succeed.

And if you’re able to, then the next stage is where your forex journey really gathers speed.

But now you know about this dangerous second stage you’ll be able to stop yourself do ‘crash, slash and burn’.

If you want to know what the next two stages are... you are going to have to wait, but now you know what stage YOU are on unless it is already too late!

P.S. This is not my writing and I got this from someone else. I will post the last two stages in a few weeks time. Read, re-read and let it sink in during the next few weeks!

1. I have seen these hundred(s) of pip stop losses, sometimes they work, sometimes they fail. In early February I had posted that there would be serious blood shed in market, and a lot that had gotten quite comfortable trading the same channel for 8 months learned exactly what I was talking about. Taking trades with no stop losses, thinking the market would eventually turn only to have it run passed by in some cases 1000 pips, averaging down the whole way. Guys will spin and sputter long term trade logic, but in end run, the long term was to get in on the run and capture the profit instead of trying to catch a falling knife. When you see crap like that posted, have a look at the chart, check the H4, check the daily and ask yourself, is this a hopeful trader, just a gamble or somebody that understands long term trade analysis. When you see these guys who draw hieroglyph charts and magical lines, asses the quality of their post. Most importantly, use the IGNORE button to weed out the lunatics.

2. Multiple lots is a logic that has been long applied by and from stock traders who enter into the forex market, and not a terrible strategy by any stretch. Exiting partial positions for profit and holding the rest past resistance and pivotal points makes perfect sense, but you have to start to understand price action first before adding more lots makes any sense at all. (learn to walk before looking to run)

3. Nahvin is a trader, you might have seen his posts here or on other threads. Of the last I seen from him is a post of holding longs on EUR/USD from last Tuesday or Wednesday. He was admittedly underwater by 300 from his original trade, how deep are they now? What kind of logic is this? Why if you are willing to learn to trade would you throw money into market hoping like this. There is interest from your broker charged for every roll over day, so, how long will this hold last, how much will it eventually cost before ever turns a profit? Buy lotto tickets, it is the "rip it off quickly", band aid approach to this logic. There is a certain mindset that will follow watching a loser sitting in your account for days if not weeks on end, it goes along with a hedging strategy. Sure it can work out in the long run, but really, how many other things suffer before?

Study the 1m charts and templates that I have provided. They trade the exact same on all time frames. IF you want to throw dimes into the markets this will let you do just that and watch a small pile of money grow, after that, it will also give you another measuring stick for the daily movement.

Compare the templates on the 1m through to the h4. If you decide to go into a longer time frame, you will be able to best adjust your initial lot as well as the size of the stop loss that you will require. This will also allow you to decide which time frame and pair that will best suit you as a trader.

Keep asking, the most important questions quite often are the ones that never get asked.

i'm selling now..tp around 50pips

I downloaded the demo version and installed. Played for couple of hours. IT is a very nice EA indeed. You are allowed to customize many parameters in it. I like its trainer the most. It is the best tool I think for practicing and testing your trading strategy before start coding a EA.

In November 2007 I had posted about the bubble bursting scenario and sold cable @ 2.5100

nothing new

people do post they said this or that after the events

like, i will post now that cable will go to 3500 one day !!!

remember this , i am calling for 3500 !! and when it happens, i will say look i posted this in may 2010 !!!

geez lion , post something much more extreme than tht , looks way better if it should occur lol

5, 15 and 30 min lined up for a long and it was well taken

1
1
1

http://img8.imageshack.us/img8/1043/cable.gif

i am calling for 4923

look i posted this in Tokyo session itself !!!

hello guys,

i found this video on youtube

http://www.youtube.com/v/eyrVEJlqDI8&hl=en_US&fs=1

well taken ? we traded above the daily open since rollover , a long taken on the test of the open would have given you about a 35 pip better entry and a profit taking area would be the 200 ema on the 5 minute chart to borrow a page from magix s trading method

instead of embed code, just post the link address

edit your post

lol, tear em up lion

i have already collected 165 pips on GY and 42 on cable

i am a scalper

ah thats all , you been taking a break or what

It's not that I don't agree with you nor believe this target is not only possible but most probable, but seriously mango, this adds nothing to the thread, but will have a tendency to offer its own blood bath. This and the obscene 1.7 targets that are posted here are worthless.

Long term or short term should still always look the same in forecasts, on an if we hold or if we lose support, here is where we go.

This chatter and noise distracts from what is happening in the next hour which for some, might just be their last hour in trade.

Though not been posting much I have been watching the thread. Seeing the same things over and over again get a little disheartening.

The point I was trying to make that those that are trying to catch bottoms can not only lose their own accounts but will inevitably drag others down with them. When playing the trend can be done off as little as a 1m chart, why do so many try to beat the markets?

just copy the address of the youtube video

it will come like this