Ken's Continuing Successes with EO's system

Don't Forget NFP at 8:30

Yeah I am just the oppsite I get stellar entries all the time but close to soon. I agree with your strategy of closing partial and letting the ballance run. But the funny thing is it really doesn't seem to bother me when I get stopped . Just when I see that tiny bit of profit.. Crazy and it has been a battle fought to long.

I believe the 95% failure is caused more by this than any other thing. I see it all the time. even someone who takes 6 or 7 regular stops in a row but can hold a winner should be profitable.

Look at yesterday only 2 really clear entries on the gbp. But one for 280 and the other over 100. That happens time and again. Plus I had a entry in the head of the shampoo and on the 21 ema . This why I don't post trades. Just technical analysis. If I ever cure meself I will.

But right now as the Priest said " Do as I say Not as I do"

Hope your seeing how to get some entries better. Don't over think it is the best advice I could give anyone. When it looks clear it more than likely is. If your in doubt beware. You have been at this a while as well and I am sure have trading ideas that work. There are many ways to trade . None better than another. Just ones you can see clearer then the others.

Thanks for the encouragement. Ken

A lot of the trades I close to soon are because of a scalping mentality. The bottom entry was because I thought they might push price below the 00 to collect stops this is a very common thing also why there is a trade idea called Fading Zeros . Probably why we say 20 and 80 are big numbers. Everything in trading is related as I have said over and over we are all looking at the same charts how can we be so divided about what is a good or bad entry.

So it is how we plan our trade , If I go in thinking it is just a scalp I am planting the seed of a small trade. Need to quit doing that and just think this is a good spot for a entry.

A good read that gives some insight to some of these normal moves we see. I would post it here you can find it on the internet . But it looks to be protected so I don't want to infrnge. Plus if you can afford it a book is good we spend to much time with a glow in our face as it is.

It isn't always your broker .. More than likely it is these commercial guys that can see the stack of stops and then do the math of how much of their long it will cost to push price down . so they can then buy cheaper with the bulk of it . Plus they know the other commercial guys will want that lower price as well. How I see it anyway. But been wrong before at least once..

Forex
Patterns and
Probabilities

Trading Strategies for Trending and
Range-Bound Markets

ED PONSI

I'm asking me if it's a good idea to trade only 50 ema bounces with many pairs.

This would certainly be a good day to do so on gu at least.

Read the Chorus thread, that is one of the base principles of "The Dance" strat that it's based on.

My personal belief is that trading appropriate candle patterns on the 50 - as you would do at S&R - is a more safe and less stressful way to trade off the 50 ema.

Just trading the anticipated reaction can be tough and counter intuatitive. The candle colour that you want to see is the opposite to the one you are about to trade on!

I do believe, though, that trading multiple pairs and only trading good candles on the 50 ema alone, you would have enough entries to have a basic and reliable Forex trading strategy. Some folk expect trading to have to be deeply complex when it's often the guys keeping it very simple who are seeing the greatest gains.

it was consolidating between sessions. above the 50 ema, that is the mid line on 15 min. we were still above s/r -ppa and we got a rejection candle.

Lot more than just a bounce off the 50..

I haven't said this in a long time maybe never here. But if your very new to trading ,trading away from the major ma's is they way to trade. at least then you should be with the trend most of the time.

It also has many entries . just place your stop either otherside of next ma or all of them if they are bunched together in consolidation.

We should work together. You do the entries and close the 1st half of the pos and then hand over the 2d half to me and I just let it roll.

lol

I have a better suggestion: Ken takes the entries you manage the trades and I get the money.

Sounds like a fair deal!

Here's a nice example for what Ken and I have been discussing. Entered GU at the 1st fat arrow at about 1.43. Closed one half a little later at 30 pips or so profit and let the 2d half do its thing. Unfortunately however I panicked at the 2d fat arrow with regard to the flag and the trendline etc. Closed the 2d half with another 30 pips or so profit. But what for? If I would have kept it going the trade would have made 30 pips for sure from the 1st half. Closing the 2d half eliminated its potential in exchange for another 30 pips. You all know where is cable is now. So, just don't close the 2d half at all. Let it run and if it's not stopped out and merely raise sl.

Comments welcome.

Thta was a huge move I heve low tolerance for risk, so I would probably adjust this trade in this fashion. Plus the taking profits and adding position size back into trade would allow for a lot more profits without much more risk. as your stop is always moved at each adjustment.

Hope eveyone has a Happy and Safe 4th of July..

http://bestanimations.com/holidays/f...ks-10-june.gifhttp://bestanimations.com/holidays/f...ks-09-june.gifhttp://bestanimations.com/holidays/f...ks-08-june.gifhttp://bestanimations.com/holidays/f...ks-04-june.gif

GOOD THREAD

Just some thoughts kicking around the ole attic today. I am always trying to figure out the difference between the wildly successfull and us that know what to do but don't seem to get the plot. I know that some of it is how we approach trading.

We all know and have heard enough to not trade with scared money. If you can't afford to lose don't trade. And along with that would be plan the trade , then trade the plan. If we are doing that, we have accepted that we could lose x amount of money if our stop gets hit.

Then within our plans we should have a profit Target (TP) in mind. But do we really, are we trully making a trading plan are we exceuting that plan according to our own set of rules. That we have decided to use.

If we were then there is only two outcomes to our trades. We get stopped or we hit our TP's. Now we can have some flexablity for sure but that should also be in our plan. If the last swing on a reversal breaks, My TP is the S/R off the 1 hr. or 4 HR chart. If I get a reversal trigger before then it is just a counter trend trade.

Like driving down the road just because we have thee right of way doesn't mean we should get in a wreck. If we can avoid losses we do it.

But the majority of our trades if we haven't really got our trading to where we want it ,should be with the trend. And our TP's should be pretty well a given. So when are we going to start doing what is right ?

I was looking around and read a great Post By Mike W. (MW's trading journal I think). He was reading a Tony Robbins book. And the conclusion of the paragraph was that most of us have great goals . But in reality we just look for instant satisfaction.

We will get in a trade and we will be happy to take a small gain verses any amount of loss. But this is not what we are really striving for. We want long term consistent successes and be able to trade full time with the least amount of stress. The hard part is how do we make that shift.

Yes some of us may be able to even make some consistent profits week after week just taking quick scalping trades. When time allows and if you can read the charts well it can be a lot of fun. Especially if the bulk of your livellyhood is being meet but some long term trades . That would make your scalping gains icing on the cake and relieve any stress.

That is one reason I believe that we see those that are just doing great with thier trading seeminglly have the ability to get every trade off the signals we all know. We tend to doubt them as we aren't to that level.

But think to your own trading the times when you were in the zone mentally and you took every trade spot on it seemed and you did this time and again. What if you were in that trading zone all the time. If we can elimnate the worries of trading. Even if we say we don't have emotional attachement to our trading . I think our results speak differentlly.

I have been mainly a scalper , but just because I like that style of interaction with the markets it really doesn't fit into my ultimate goal which for me is freedoom from a rigid employement schedule. Yes it could make me more money. But I have never really had a love affair with paper.

I want to be able to travel internationally and make my living off trading. Longer term positions would allow that easier. If your in a positive trade and just making adjustments form time to time. The need to sit at your desk 24/5 is gone.

A scalpers mentality is great for entries if your any good at it you can get the best entries. But if we can't realise that we are in possiblly a long term trade and just lock in some gains and let it run. We are missing the boat.

This is why I have latelly been looking for trades based off time frames. We have shown and see all the time that entries at specific times of the day tend to last till the next specific time. They can be either continuation or reversal trades the reversals may also only be retracements on higher time frames.

But they still tend to move one way till the next important time. These are session beginings and ends normally. But for me this is a start in the right direction.

We have also said time and again that we should enter as a scalper and trade as a swing or position trader. We need to look at our higher time frame charts after we have entered a trade. We see time and again when the 1 hr closes and gives a signal that supports our entry off a scalp or 15 min signal that we had a entry to a big move.

I understand a lot of us are thinking I want to learn to get 180 pips out of that 100 pip move by scalping all the entries. That could be done but are you doing that ? I'm not. If we get in the trade we look up the charts and we see we have the good entry then using the lower ma's on the 1 hr at the least we can hold some decent trades.

If we break a swing on the hrly then look at the 4 hr and do the same. I posted that book by Ed Ponsi the other day I have not finished reading it myself . But I have seen a system he teaches using the daily that is very similiar to these ideas(page 90). but being they are daily, entries maybe few and far between with a few losses before a great success.

I want to tell a tale about a trader, which I believe to be true. This man had a job that made him travel from home so he had spare time on his hands when he was on the road. So being finacially in decent shape . He would spend his time playing online poker.

He got good enough that he was playing and winning in those small tournamanets they have . If your not famialiar with that. They will involve say 12 players and each player will put in say $1,500 dollars and I believe only the top 3 players take a prize. So basiclly it is a win or lose sittuation. You have put your money up and you use your skills to beat the the other players . Sound familiar ?

Anyway still having free time on his hands this man came across Forex and started studying what that was about. Mainly focused on Price Action and demoed a while and lets say ,This part I am not positive on.

But lets say he won a poker game with a pot of $15,000 so he opens his first live account with basiclly free money. Now risking only something that he had won. Can you see how mentaly this could be a great plus to learning to hold trades.

Anyway he came across EO's thread which kinda of tied up some lose ends for him in his trading and with all the different elements and entries it provided . The rest is history he had very few losses and has become one of the best traders I have ever seen all within a year and a half.

But the only difference from us and him is mainly his attitude to his money. I can be in a trade and might have entered to early so I have a bit of draw down nothing big maybe 10 15 pips but it stalls there for a while rubbing me the wrong way, and this happens a lot at major areas as the sellers and buyers try and get a hold.

But when it finally goes my way I am just worn out watching it, that I close with barelly any gains. This is not smart on my part I fought the battle I was right, and I won . But I lost the war by giving up. Which is the worst thing to do.

A lot of what I am talking about is common among a lot of us. I have watched a lot of people struggle with trading most just disappearing or giving up. I have seen a lot that took years to finally get consistent and start making decent gains.

I believe in almost all case weither we see it or even believe that our attachement to our trading funds is key to our success or failures. I want everyone to succeed. There is enough for us all. Just because we are making profits doesn't mean someone else is losing . I think that is a misunderstanding. You may want to buy at a level doesn't meant the guy selling it to you isn't closing a huge trade. Plus it is currency exchange at times people just need to have a different currency to complete a deal. It isn't always about winning or beating someone else.

Though many find it easier to see it that way. The biggest battle as in everything in our lifes is the one that take place inside ourselves. Once we conquer that we will see gains in everything we find important. I saw another post by jlmac on Mike W's Motitvation Thread. Little You tube by Tony Robbins. Might give you something to think about.

Hope your all having a great weekend and wish you all the best in the world.. Ken

Thanks for your lucid analysis, Ken. - I don't think you need a hi tolerance for risk to keep the 2d half of a pos open as you already made pips from closing the 1st half and have moved sl to entry. The problem is more that we're usually afraid (fear/greed - our 2 biggest enemies next to impatience) to give back the, say, 100 pips that the 2d half won and therefore either close or move sl to close to current price and get stopped out. Well, with 80 pips or so in the example, which is not bad. But after the 2d half has been closed out there's no chance to ever catch that 1000 pip move. Remember that pos of EO in GU from up at 1.70 that was talked about at the beginning of the year over at his thread?

On a more abstract level: entries and exits are the critical points. So I try to avoid them. Look for the most hi-quality entries, cash in on the 1st half and then let her run.

Of course you are absolutely right about adding on more pos. Open another 2, close 1st half for 30 or so pips, let her run. In addtion, no problem to open a short while 2d half of a long is still open.

Thanx for the editing too. Proves again to me you a better eye than I.

Keep up the terrific work. Feel lots of gratitude for it. Learning tons from you!

Here's another example. 1st chart shows opening based on that puny little hammer on the 15m. It's the vertical line on the daily chart. No reason to close that 2d half. Wanna see that babe at 146! And there was numerous chances to add on since then. Here we go again - greeeeeed!

yes I understand what your saying but also Like EOs' trade there were times he was down to one position on that trade from a 12 position entry. So the more we start with the more we can adjust. yes countertrend trading ina sepereate account or hedging in the rest of the world is another aproach .

But still it all boils down to comfort level. If we have proven to ourselves time and again that we can lett these trades run on thier own ( After covering) and have had those great gains doing it . It will only become easier. It is those first few we need to get past adn for me anyway it is the leap of faith I have yet to take.

But I will get there as will you and everyone that is willing to keep trying.

Yes as far as me editing your chart is just my way. i was reading soem books and forums and it has come to my attention that at almost every chart all I can see is those lines . They are the levels everyone seeks . But the more I share with others it helps me Also. I am just self centered . IT is said "we teach the best that which we want to learn the most"

Glad you find some value in the postings and feel free to add your insights as well.
Ken

Horizion + Horiziontal I think could be mistaken..

Yeah mini hammers .. About 6 pm eastern right before asia at times the only entry we get are these very small hammers or pins. Then it just takes off maybe within a hr.. Just depends on volume I guess. Yep might be a great trade there.