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  • #3,201
  • Oct 13, 2010 2:42am Oct 13, 2010 2:42am
I believe Graeme will soon be back with another chapter of his book, and we thank him in advance.
While waiting, lets share what we have so far learned here.
As for myself, I already new the 4 important rules of trading that are:
Trade with the trend
Cut the losses short
never average down, and
Let your profits run.
My main struggle was with this last one, how to let the rare profits run. I fund the answer to it here and it is my biggest lesson so far in this thread: KEEPING THE STOP AT BE AND LEAVING IT THERE for all the duration of the trade. This reminded me of the great Jesse saying "it was my sitting tight that got me the great money trading...it is no trick at all being right in the markets". And Graeme illustrated it very well when he said 2you might trail your stop to 150 after a 250 pips rally. But a normal retrace can put you out of a trade that may headed for a 1000 pips rally".
I am aware the next struggle is to implement it, especially as I am not well funded. Nevertheless, this is my lesson numero uno.
How about you people ?

Muntu
Patience is magic
  • #3,202
  • Oct 13, 2010 3:12am Oct 13, 2010 3:12am
Hello,

I still check the thread few times a day hoping for a new post from the Superman avatar fellow ;-)

As it happens when it comes to trading I learned the majority of things I know from this thread (because I was very new to Fx when I found the thread).

Kindest Regards,

Cam
  • #3,203
  • Oct 13, 2010 4:53am Oct 13, 2010 4:53am
where is graeme? is he ok?
hope for the best for him
  • #3,204
  • Oct 13, 2010 1:33pm Oct 13, 2010 1:33pm
Hi All,

Before I even get started, I want to say that I have a feeling this is going to be a bit of a long post, so I offer my sincere apologies up front.

I discovered this thread about two weeks after Graeme started it and have been a dedicated follower ever since. I've participated in all the trials and tribulations along the way (double-zero entries, razor-sharp entries on M5, FBs, breakouts, etc.) and like most of you have had mixed results. However, my results have recently begun to take a turn for the better as I have finally discovered what works for me and what doesn't. I'm writing this post merely to share what I've learned and to (hopefully) give hope to those of you out there who have been trying to work the methods Graeme has provided, but who may yet be coming up short in the results dept. This is not to say I have everything figured out and will soon be joining the millionaires’ club, but I do feel that I’m making real progress in the right direction. I still have much more to learn about trading and about myself, but with time I hope to get there eventually.

I truly believe that what Graeme has shared with us all could be tailored into a successful trading strategy for any trader, regardless of preferred timeframe. In the 10 months or so since I discovered forex and trading I've tried more methods than I care to count, from 1 min charts to monthly, with all sorts of indicators to using no indicators at all, and employing various entry/exit strategies. Invariably, I would always return to the M5 & M15 charts because in my mind, that was where the action was and results would be much more immediate. In doing so, my results were all over the map with some success and much failure (hence, my user ID). Then I found this thread and, with much thanks to Graeme, my mind began to expand with ideas of infinite yield and just going with the flow of the market. Admittedly, even after trying Graeme's methods and giving them a try using long-term charts, results did not come immediately and I would return to the short-term charts with fixed R:R and, not surprisingly, fail just as I had before.

Now, I consider myself to be a fairly bright guy. I’m in my early 40’s (meaning I have some life experience, though I consider myself still fairly young), I’m college educated and a successful manager where I work, and I have always managed to do fairly well at most of the new things I have attempted. But with trading, I felt that I was stuck and going nowhere, or possibly even moving backwards. In all honesty, I was really starting to wonder if trading was something I simply could not do. How could this be? After all, trading is not rocket science. Certainly, people of lesser intelligence than I have found success at trading, so why my difficulties? Well, after some serious self-reflection and re-reading of Graeme’s earliest posts to the thread, I figured out my main problem: I was over thinking it and as a result had been making it more complicated than it needed to be.

Success really boils down to one thing: If it’s up, buy and if it’s down, sell. Graeme stated this and I have heard it stated by others both before and since, but until recently it had always gone in one ear and out the other. After all, if we knew which way price was going to go, we’d all be rich. Unfortunately, I dismissed the notion because I didn’t think I knew which way price was going to go (regardless of all my in-depth technical analysis which tended to be wrong more often than right, at least right up the point that it triggered my hard SL). However, while it is certainly true that we can never know for certain which way price is going to go, it is also true that we can have a pretty good idea. Graeme once wrote: “Weekly trend is not going to change just because you finally arrived at the scene with a demo account. Please get over it, you're not that big.” I remember reading that the first time and chuckling to myself because not only was it funny, but it was also true and yet it had never occurred to me before then. It is also, in my opinion, one of the most profound statements about trading I have ever come across and therein lies the secret, for if the monthly and weekly are both up, buy, and if they’re both down, sell.

But what about entries? Secret #2: Entries don’t matter. Graeme covered this as well when he discussed “sloppy entries” and double-zero entries. With experience, Graeme has managed to perfect his entry methods, but he stated very early on that entries are not all too important in the grand scheme of things. Of course, we all became consumed with FBs and razor-sharp entries with tight SL off of the M5 chart and this is where I personally got off track. This is not because nice, tight entries are not possible, we all know they are, but more due to the fact that I just don’t have the time, patience, or desire to be constantly scanning my charts and waiting for primo entries to materialize. Of course, I didn’t let this stop me from trying and my results were less than impressive as I managed to miss the volatile breakouts when they eventually occurred. I became frustrated and again began to question my abilities as a trader.

The Epiphany

This brings me to where I am today and what I’ve discovered about myself. I thought I was best suited to be a scalper/day-trader, but it turns out I’m not. I simply do not (at least, not presently) have the needed control over my fear and greed to pull this off competently. I also don’t have the time to invest waiting for razor-sharp entries to transpire or for monitoring trades. I can trade while at work, but I do need to actually focus on work-related activities while at work and can’t be looking at my charts all day. So, taken together, this means I’m better suited as a swing or position trader and I can’t let the lack of razor-sharp entries slow me down or get in my way. Once I accepted this and implemented it into my trading, while focusing on the weekly and monthly trend, I began to see a marked improvement in my results.

So, what, exactly, is my trading strategy? Let me share:

1. Whenever I can find time, I’ll scan my charts looking for alignment of monthly, weekly, and daily candles. When I see such alignment, I’ll open a position (single mini-lot on a $10K account or a single micro-lot on a $1K account). No hard SL, no TP; just open and let it run for at least a day or two.

2. After a day or two, if price moves in my favor by 100 pips or so and monthly and weekly candles are still lined up in the direction of my trade, I’ll add another position. I repeat this process as opportunities arise. I close losers when I believe the weekly trend may be breaking down, otherwise I’ll let them run in the red.

3. When I do close my losers, I also close some of my smaller winners to offset the losers, while letting the larger winners run. I do try to bank about 500 pips net profit per week (2000 per month), but this is not a hard and fast rule. Banking 2000 pips net profit per month will yield approx 20% account growth per month. This is my objective, but I’m not slave to it. I take what I can get and don’t sweat it if I don’t. I’ll increase lot size per trade as account balance grows.

4. I generally have about 10-15 open positions at any given time on a variety of pairs. This helps to provide a synthetic hedge to protect my account against a sudden, strong market movement in one direction since I have no hard SL in place. My used margin (50:1 leverage) never exceeds 40% of my account balance at any given time so a margin call is several thousand collective pips of adverse movement away, which I don’t see happening.

Benefits of above trading strategy:

1. Does not require constant management. I can look at my charts once per day, maybe for an hour at the most, adding and closing positions, then forget about it the rest of the time.

2. Zero stress. I’m trading single lots. If price moves against me a couple hundred pips on a few positions, no biggie. News releases? I don't worry about them. Due to the synthetic hedge and the fact that I’m always trading with the monthly trend, the market is likely moving in my favor on several other positions, offseting much of the negative movement. When I was day trading, I would have 10, 20, even 50 lots on the line on a single trade and my heart would be racing the whole time the trade was open and I would succomb to fear and greed, closing my winners short and letting my losers get stopped out for a large loss. That kind of trading requires nerves of steel to do it effectivly, which is something I have discovered I don’t possess.

3. No fixed R:R. I’m in it for infinite gains.

Well, that’s about it. I wanted to post this because I know some of you may feel lost in the wilderness, as I was, and I wanted to share how I managed to find my way out. If it helps just one reader, then it will be worth it. I do still have a long way to go with respect to perfecting my trading and if I ever reach the point where I can quit my day job and be a full-time trader, then I will spend some time working on better entries to reduce drawdown and improve profits, but until then I’m pretty sure what I’m doing will get the job done.

I want to send a special “thank you” to Graeme for offering us his knowledge, time, and effort in order to help us all become better traders. Graeme, I wish you the best, hope you are well, and look forward to seeing your next post when/if it appears.

I also want to thank everyone else who has participated in this thread since its inception, as I truly believe we can all learn from each other.

Kevin
  • #3,205
  • Oct 13, 2010 1:52pm Oct 13, 2010 1:52pm
Quoting Starvin4Pips
Hi All,

Before I even get started, I want to say that I have a feeling this is going to be a bit of a long post, so I offer my sincere apologies up front.


I also want to thank everyone else who has participated in this thread since its inception, as I truly believe we can all learn from each other.

Kevin
...

Hi Kevin,

Wow, wonderful post, Thanks for sharing your experience with us. I am sure your post will motivate many readers of this thread (me included).

-maaj-
-happyTrading, maaj-
  • #3,206
  • Oct 13, 2010 2:24pm Oct 13, 2010 2:24pm
Thanks Starvin4pips for all the effort you put in writing this post. Much appreciated.

I also want to thank Graeme for such a generous, selfless and invaluable contribution to this trading community.

We need more people like him in this world!

Thank you.
  • #3,207
  • Oct 13, 2010 3:53pm Oct 13, 2010 3:53pm
Starvin4Pips - To establish this mindset and methodology in less than a year is truly amazing - Congratulations - You have Arrived!
  • #3,208
  • Oct 13, 2010 4:39pm Oct 13, 2010 4:39pm
Quoting Starvin4Pips
Hi All,

Before I even get started, I want to say that I have a feeling this is going to be a bit of a long post, so I offer my sincere apologies up front.


I'm really agree with you
As you, i can't take razor sharp entries, i just try to take entries after retracement : red lines on the daily chart...
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  • #3,209
  • Oct 13, 2010 9:19pm Oct 13, 2010 9:19pm
Hi Kevin:

After long time, I read an excellent post in FF. Thank you very much for your post as it will resonate to many people here. Please keep updating.

-FX_California
Quoting Starvin4Pips
Hi All,

Before I even get started, I want to say that I have a feeling this is going to be a bit of a long post, so I offer my sincere apologies up front.

[color=black][font=Arial]I discovered this thread about two weeks after Graeme started it and have been a dedicated follower ever since. I've participated in all the trials and tribulations along the way (double-zero entries, razor-sharp entries on M5, FBs, breakouts, etc.) and like most of you have had mixed results....
  • #3,210
  • Oct 13, 2010 10:20pm Oct 13, 2010 10:20pm
Quoting Starvin4Pips
Hi All,

Before I even get started, I want to say that I have a feeling this is going to be a bit of a long post, so I offer my sincere apologies up front.

[color=black][font=Arial]I discovered this thread about two weeks after Graeme started it and have been a dedicated follower ever since. I've participated in all the trials and tribulations along the way (double-zero entries, razor-sharp entries on M5, FBs, breakouts, etc.) and like most of you have had mixed...
Great post no apologizes need I'm gonna read it again, I appreciate everyone posting I am learning alot. what I love most about Graeme style of trading is it's soooo stress free. Stress free Trading, I beginning to realize that I only need to look at my charts at Asia's open and check once in a while..I haven't quite found my thing yet but working on it.
  • #3,211
  • Oct 13, 2010 11:07pm Oct 13, 2010 11:07pm
Starvin4Pips,

thank you for a wonderful and encouraging post. I too have limited time to trade and seeing you succeed gives me hope that it is doable.

Thank you again, and thanks to Graeme.

Krk
  • #3,212
  • Oct 13, 2010 11:27pm Oct 13, 2010 11:27pm
Kevin,

First of all I would like to thank Graeme for creating this thread, and second for sharing to us what you have learned and discovered from Graeme's teaching. I will start throwing all my indicators/EAs and focuse practising what you have imparted. May the Good Lord Bless you and your family as well as Graeme.

Sincerely,

Edd
  • #3,213
  • Oct 14, 2010 3:28am Oct 14, 2010 3:28am
Quoting Warburg
Starvin4Pips - To establish this mindset and methodology in less than a year is truly amazing - Congratulations - You have Arrived!
+1
  • #3,214
  • Oct 14, 2010 3:29am Oct 14, 2010 3:29am
Dear fellow traders

Graeme requested that I post a brief message into the thread on his behalf. He had an ongoing health issue for some time and only recently he had an operation which he is still recovering from. We all wish him a speedy recovery. Many of his business aides and associates are also praying for his well being.

I have visited Graeme last week and all seems well. His thoughts are with the community of this forum and he wishes everyone success they seek.

For what it's worth, I too learnt greatly from Graeme who pushed me forward to be a trader. There are meaning behind his explanations that requires a moment of silence and concentration to appreciate the true message.

Sincerely,

-marionb
  • #3,215
  • Oct 14, 2010 3:40am Oct 14, 2010 3:40am
1. Whenever I can find time, I’ll scan my charts looking for alignment of monthly, weekly, and daily candles. When I see such alignment, I’ll open a position (single mini-lot on a $10K account or a single micro-lot on a $1K account). No hard SL, no TP; just open and let it run for at least a day or two.

Hi Kevin - Interesting post, can I just clarify your enter method, let say for a long.

Monthly candle is currently blue (bull)
Weekly candle is currently blue (bull)
Daily candle is currently blue (bull)

Therefore you are happy to go long, is this about right. Also what time of day to you trade, a daily candle can go from Red to Blue through the day?

Thanks

WFX
  • #3,216
  • Oct 14, 2010 3:42am Oct 14, 2010 3:42am
Quoting Starvin4Pips
Hi All,

Before I even get started, I want to say that I have a feeling this is going to be a bit of a long post, so I offer my sincere apologies up front.[color=black][font=Arial]

[color=black][font=Arial]I want to send a special “thank you” to Graeme for offering us his knowledge, time, and effort in order to help us all become better traders. Graeme, I wish you the best, hope you are well, and look forward to seeing your...
Hello Starvin4pips [I don't think you are starving for pips anymore though ]

Thank you so much for sharing your experience. I recently discovered Graeme and his method and it has been an incredible eye-opener. I too have had my share of trading cul-de-sacs for almost 3 years now and have had more losses than gains. Sometimes I wonder why I bother with trading when it is not working for me. But as we all know, once you've been seduced by the world of trading, there is no turning back.

I can relate to pretty much everything you've shared, the racing heart, the stress, being lost in the wilderness, all of it. Graeme has got it figured out very well though. I am still in the midst of reading everything in this thread but I am eager to get started.

I think tempering expectations is very crucial. I am the kind of person who considers effort = results. While that is applicable to the larger scale of things, I apply that to each and every trade. When my hard SL is triggered, I get more frustrated than I'd like to admit.

Graeme has taught me the importance of looking at the big picture. I realize that I have a few bad behavioral habits I need to correct in order to truly achieve the success I want.

Your post has given my encouragement to truly understand what Graeme has taught and to examine my trading habits. Once again, thank you for sharing.

My gratitude to Graeme goes without saying. I hope Graeme is doing well and returns to share more of his invaluable knowledge.

Cheers,
Dave
  • #3,217
  • Oct 14, 2010 4:57am Oct 14, 2010 4:57am
Hi Marion,

Thanks a lot for the message!
I hope Graeme will be well soon!
In the meantime I study his lessons and develope my own trading style around the base he has given.
Persistence will get it. Consistency will keep it.
  • #3,218
  • Oct 14, 2010 5:02am Oct 14, 2010 5:02am
Hi Marion,

Thanks for the info about Sir Graeme's current state of health.
I am wishing for his speedy recovery.

Good to see you dropped by here.

Have a nice day.
  • #3,219
  • Oct 14, 2010 6:01am Oct 14, 2010 6:01am
Quoting marionb
Dear fellow traders

Graeme requested that I post a brief message into the thread on his behalf. He had an ongoing health issue for some time and only recently he had an operation which he is still recovering from. We all wish him a speedy recovery. Many of his business aides and associates are also praying for his well being.

I have visited Graeme last week and all seems well. His thoughts are with the community of this forum and he wishes everyone success they seek.

For what it's worth, I too learnt greatly from Graeme who pushed me forward...
-------

Marion,

Thank you for letting us know Graeme's health condition. We'll be praying for his early recovery.

Sincerely,

Edd
  • #3,220
  • Oct 14, 2010 6:02am Oct 14, 2010 6:02am
Quoting marionb
Dear fellow traders

Graeme requested that I post a brief message into the thread on his behalf. He had an ongoing health issue for some time and only recently he had an operation which he is still recovering from. We all wish him a speedy recovery. Many of his business aides and associates are also praying for his well being.
Marion,

Thank you very much for the message, we were hoping to hear some news. It's so much like Graeme to care for his fellow man/traders so soon after his operation and I am deeply humbled by his gesture.

Kindest Regards,

Cam
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