Building an equity millipede

Hello! Graeme,
In last 3 charts,you have really explained clearly and precisely what you do.
I read those charts 5 times and absorbed the information in my mind.
As per your clearcut advice on entry at OPEN,I have banked 70 pips on GBP/JPY this morning.I am dermined to do so everyday now.
Thanks for your valuable advice.
Looking forward to get some more from you.
Dilip

Hello Mr. Graeme,

Thank you very much for taking your time to share such precious information about your view on the markets.

You have my vouch for it.

I like the concept of trading the obvious.

Good luck and strong health for you.

Red.

The last three charts really helped with my understanding of where you might enter your positions and how you might enter counter trend trades.

Thanks for all of your effort with this thread.

Thank you so much, Graeme!

You feel like a distant master to me (you know, master in Chinese kong-fu sense). I truly appreciate your teaching your wisdom here. and your style is actually what I've been looking for.

Last three charts are most helpful of all your charts. It showed what exactly "participation" means, and how "diversification" rebalance capital.

You overall fundamental idea is pretty much clearly expressed, in my humble opinion. It is the illustrative charts like the last 3 showing that your trading way, very valuable. More of these kind of scenarios will be highly welcomed. I am not interested in why enter why exit(i'll exercise that myself on your suggestion), but try to emulate more your reasoning and logic in those scenarios.

however, i do wonder about one thing. when you keep placing both long and short trades over a duration say, 2 weeks, for what positions you put hard-stoploss and for what you do not? i'd like to learn your reasoning/habbit on stoploss when you trade both sides. I read your way but sometimes it is 20~40 pips sometimes it is not set. how do you exactly apply rules to exit? (again, i'm not interested in entry.) to be more specific, not winning exit, i'm wondering about losing exits? how do you determine it is a losing position? it is still a mystery to me that you don't use hard-stoploss but always exit at 20~40 pips negative. my own experiences is that i often tend to suffer from "split personality" and drawdown often make me lose the market direction.

Sincere Bow; Sincere Appreciation.

Thanks Graeme,

Those charts you posted explained most of my remaining questions about your overall approach.

When the market is ranging for an extended period of time in the daily timeframe, do you still open new positions during that stretch or do you wait for the pair to break out of the range before adding new positions?

Hi Someone

Thank you for your continued interest.

Yes, I would prefer to manually enter the market as per my own personal entry method somewhere near the open of the daily candle. Im not in a rush to build my positions but I do religiously try adding everyday.

I could be wrong but I feel that you already hit the first emotional hurdle and you are stalled.

Feel free to ask me anything.

It sounds like alot of trouble but once you get into routine, time flies. Makign money from the markets is the hardest anyone could ever do.

Sincerely,

Graeme

Good morning, Dilip

Thank you for for the warm remark. It makes my efforts worthwhile.

Dilip, there are far more emotional hurdles than one would expect. Are you ready? I applaud you for your intentions

Sincerely,

Graeme

Good morning Rednose,

Thank you very much for the warm feedback and the voucher.

I will also visit one of your threads with great interest

Sincerely,

Graeme

Good morning, ozziedave

Thank you for your support from the very begining of the thread.

Sincerely,

Graeme

Good morning, Charvo

Thank you for great question.

If you practice one of your entry method for 6months on all timeframe, you will learn so much more than entering the market. It is the only way to learn how to trade. I requested all readers a few posts earlier to a simple exercise for the next 6months which wont be simple to most when they start.

I urge all readers, there is no easy road to aladdin's cave. It takes alot of hard work and it starts from perfecting your entries and developing a subconscious connection with the market.

After 6months of practice you will notice that everything you learned for yourself is already listed in the james16 thread. You will smile then.

Please take my word for it.

Sincerely,

Graeme

Good morning, sixx58

Thank you for your question.

Nobody knows when the start of next 10 year main trend is or when its ranging or when its correcting. Yes, I enter everyday when a good low risk opportunity that I know very well that I can control its risk appears for me. Its like shaving for me.

Unfortunately the only thing we can do for us is to participate into the market to the best of our ability.

Trust me the rewards are more than its worth.

Sincerely,

Graeme

Apologies to all but chart 2 has been corrupted on the image sharing server.

I will add more charts tonight.

Keep practicing. It will get easier.

Sincerely,

Graeme

This is an excellent thread, Graeme! It always amazes me how the most valuable information is usually free of charge :-) Nice work!!!

--
Fifty


p.s. Even in the chart I've attached to this message there is much more than the three "training trades" suggested by pipEasy

Hi Graeme,
I am ready and prepared for the "emotional hurdle" as you said.

Dilip

Good morning, Fifty

Thank you very much for your correspondence and the chart.

Im very happy to see that you have started.

You will be very pleased with the result.

Sincerely,

Graeme

Good morning, Dlppat

Thank you for your correspondence.

Im glad to hear it and I know you will be a bigger person when it happens sooner or later.

Sincerely,

Graeme

hi graeme great info as always

i have opened a demo to do your exercise starting from today

regards damien

Good morning, all fellow traders.

It is very cold winter morning here. As I get older, one of the things that doesnt go well along with me is the coldness. Stay warm and under loving care from your loved ones.

If I may, I would like to tell another story.

I name the story, The Art of Perfection.

During my time, I had witnessed, met, heard about well known individuals who practices the art of perfection.

The first person is a dear old friend of mine. He is unknown in person to many but I find his life story definitely worth sharing. His name is Joel (not Joel Rensink, aka TheRealThing). Joel was a proud and successful owner of a very well known pizzeria in Sydney Australia. He has sold his interest in his business and the secret behind his dough making to a company who is currently expanding very rapidly as a chain. His pizzas are quiet simply amazing. I have to admit some of his secrets has worn off from the transition from his hands to this new company but even still they are great pizzas. Joel loved making pizzas. Even though he was the owner, he would never come out of the kitchen. He personally designed and decorated each pizza sold. Every pizza that came out of his woodfire was more than just food but his life work. His pizzeria was not even on the main streets but tucked away from common sight but it was always fully booked. People appreciated his pizzas and he returned his appreciation by always taking one extra step in detail.

Most people believe making a pizza is simply googling a receipe (or joining a forum) and just following the steps from 1 to 10. Ofcourse the result will still be a pizza but whether it will taste good or bad is distant second. Joel had a passion for pizza since he was young. His parents are both avid pizza makers as well. Joel just knew he was going to be making pizzas for the rest of his life. He took his interest many steps further than most people would. Joel hated using the tomato sauce base from a commercial bottle. He searched his answers far and wide and spent 3 years just on the tomato sauce base. One evening he told me over a nice hot slice that he has used everything from grinding mandarin peels, fermented cheese extracts, peanut oil, and sunflower seeds. He didnt continue telling me his secret and I had no intention to learn it but it was amazing to hear that he really did search far and wide. And I wasnt surprised as I can simply taste the richness of quality. Then he continued telling me that he spent a further 3 years again in perfecting the dough base. He considered thin base was too thin and pan base was too thick and he definitely didnt want to use commercial base. Due to him I believe we now have middle crust but thats just what I think. He learned everything from germification of yeast, perfect cooling temperature to proof the base, and the perfect measurement. His pizza base is so chewy and delicious I always finish eating the crust handle. Im not surprised at his long term success.

About 20 years ago I had the distinct pleasure of personally viewing Vincent Van Gogh's 'Portrait of Dr Gachet' at a New York viewing. A very well known piece by Van Gogh and one of his last works before death. Even though I appreciate this calibre of art unfortunately I do not know the finer details in what makes an art so valuable. But, my initial viewing took my breath away. It was simply amazing and I can feel and see the immaculate details Van Gogh contributed to this piece. Some say he was insane when he drew it but I say he was insane from the heights of his enlightment. The depth of every minute detail were amazing and every stroke of his brush appreciated. I stared at it for a very long time and strangely I can feel Van Gogh's presence reaching out into my mind. The piece was sold for $80 million back then. Its whereabouts is currently unknown.

9.58 seconds is the current world record for fastest 100m mens sprint, carved by Usain Bolt. I can only imagine the sheer determination and focus required to be the fastest person in the world. Beating over 6 billion other lives. To be of that calibre, everything you eat, drink, sleep needs to be watched. Continuous track exercise, gym workouts and other repetition of rigorous exercise regime. I wouldnt be surprised if most give up or breakdown emotionally. I truly wonder where the bounds of human capabilities are. Can you imagine to run 10 metres in the time of pronouncing the word 'one?' Most people cant dream of it but they know its now possible.

They all practice the art of perfection. Creating financial wealth from their endeavours is distant second. Once you reach this type of pinnacle success money follows you. My pizzeria friend is now a multi-millionaire, van gogh unfortunately didnt see much wealth from his work while alive but now they are priceless in value. Fastest person in the world pocketed over $15 million last year on all the endorsements. However they wont look back and rub their hands in glee because of the millions. They look back and smile because they have beaten everyone and became the top of the industry.

We are all here because we all want to be professional traders. What seperates winners from losers is the determination they exert onto their learnings. Winners do everything to learn and purposefully choose the harder road. They want to be top of their game and they focus on perfecting every move they do in the market. Subconsciously they can bend the will of the market into their focal interpretation. Just like Michael Jackson doing his 1000th perfect moonwalk we should be able to perform our 1000th perfect entry to the same awe-inspiring effect. Then you dont worry about the profit cause you will know that your actions are top of its calibre and money will follow you.

All guys think they are tough in one way or the other. Your exterior could be much bigger than your peers hence the wrong impression. But one day for the first time in years you try skipping rope. You will be surprised that you cant do 20. That's strange, Im still a big tough boy. So you try pushups for the first time in years. You cant do more than 20. Then you realize that the perception about yourself was incorrect. You are not as tough as you think you are.

We need to practice art of perfection as traders. And it starts right now in the right perception. Get ready to stream tears and anguish and sheer frustration. The rewards are worth it. If you can perform 1000th perfect entry just as effective as Michael Jackson performing his 1000th perfect moonwalk, you are of same calibre and I wouldnt be surprised that you are making as much as he does.

Sincerely,

Graeme

Good morning, Damien

That is fantastic.

Thank you for following my recommendation.

Sincerely,

Graeme

Hi Graeme,
I am going to print this thread, bind it and have it by my side whenever I trade.
Not only has your wisdom and advice been a great read, it has also changed my perception of the markets. My only issue is capital. I cannot afford 300 pip 'sloppy entries' at present as it would wipe my capital out. But I feel I can transfer some of your methods into my daily trading until my capital is such that I can take a longer term view. I have also changed my view on T.P. I am constantly looking at my trades to see if they line up with weekly/daily trends if they do I may leave them and hope that they become my first millepede's!
I reopened my demo account this morning and will carry out the aforementioned exercise and let you know the results.

Thank you sincerely,
Ben