Trading in the real world.

Hi everyone,

before I start I’d like to introduce myself. My name is Marco Mayer, I’m the editor of Forex At The Market and responsible for Forex-Trading education and trading methods at Tradingeducators.

I’ve been trading for 10 years now (stocks, futures, options, forex) and started to specialise in Forex-Trading 5 years ago. These days I’m trading forex almost exclusively.

Most of what I learned about trading, I learned from Joe Ross who has been my mentor for many years now. Thanks to his help, I quickly got away from the many wrong paths you can take in trading and got to what is real, makes sense and works (for me) in the markets. (Thanks Joe!)

I regularly give webinars over at FxStreet.com, have a look here for more information and recordings of past webinars.

I also have a blog running at forex-at-the-market.blogspot.com


My trading

I’ve attached a PDF to this thread, an article I’ve written a few months ago and that pretty much sums up my thoughts about trading.

I’m a puristic price action trader and so my charts always look very simple. I don’t use any indicators, trendlines etc when looking for possible trades, just plain bar-/candlestick-charts. Every trade I do has a sound trading idea behind it that is based in what I like to call “market reality”. In other words I tend to look for a logical reason why a trade should work in the market, not just a pattern I might notice but not really understand. So my trading is very simple. I think about when and why other traders could buy/sell after I bought/sold...since that’s the only way to profit trading isn’t it?

I learned about risk- and money management the hard way in the first couple of years of my career. I guess many of you know what that means...so nowadays I usually risk 0.5% to 2% on a single trade idea. In other words, no I don’t double my account each month, but I also don’t go broke and have to stop trading after a bad month...my money management allows me to comfortably trade through drawdowns, sleep well and stay in the game.


Forex At The Market

So what’s Forex At The Market about? Actually it’s a public trading diary, showing the trades I do before they happen, right when I do place my orders in the market. Once a trade is open I show exactly how I manage the trade. Most of the trades in Forex ATM are swing-trades lasting 1-5 days. Usually I do 1-3 of those trades per week.

To find out more about Forex ATM goto http://www.fx-atm.com where you can find more information and an up-to-date performance report.


About this thread

What I want to do in this thread is to keep you up-to-date about what’s going on at “Forex At The Market”, show you some trades I did, tell you about blog-updates and upcoming webinars.

If you have any questions, feel free to email me at [email protected]

I’m also willing to answer questions about trading, myself or FX-ATM to some extend in this thread. But I won’t participate in what I perceive as needless discussions. The reason for this is that I simply don’t enjoy doing so.

Happy Trading,

Marco

I know that there are a lot of frauds out there offering trade suggestions, expensive trading courses, trading rooms/groups etc. but actually don't trade themselves (and we all know why they don't...). So I'd like to state right away before I start that I've executed all those trades that I sent out in FX-ATM and will show here in my own accounts (if not stated otherwise, there was one trade a few days ago that I missed because my stop-limit order did not get filled due to slippage). If anyone has doubts about that, send me an email and we'll find a way how I can proof this to you.

Anyway, let's start

Allright...I'd like to start showing you the trades I did in the last few months. I guess this way you'll get a pretty good idea about the way I trade.

I'll start at the end of July. I'll show you all FX-ATM trades, not just the good ones but also the losing trades. As you know those are part of the business, too - that's why the thread is called "Trading in the real world", welcome!


The first trade was a trade in AUD/USD.

The trade suggestion was sent out on July 19th 2010 when I placed my orders:


Consider buying AUD/USD at 0.8721 stop-market. Suggested stop at 0.8661; suggested first target at 0.8781 (move stop-loss to breakeven when filled); suggested second target at 0.8901

http://img28.imageshack.us/img28/5017/audusd.jpg

Here's how I managed this trade:

 

1. 07/20 Long at 0.8721; suggested stop at 0.8661
2. 07/20 First target hit at 0.8781; suggested stop at 0.8710
3. 07/22 AUD/USD is trading close to our second profit target but has some trouble moving above 0.8900; suggested second target at 0.8895
4. 07/22 Second target hit at 0.8895; suggested stop at 0.8735
5. 07/23 Suggested stop now at 0.8895
6. 07/27 Suggested stop now at 0.8995
7. 07/28 Stopped out at 0.8995

Happy Trading,

Marco

Shortly after I got stopped out of AUD/USD I spotted another opportunity in an AUD-related market: EUR/AUD on July 29th.

Consider selling EUR/AUD at 1.4455 stop-market. Suggested stop at 1.4530; suggested first target at 1.4380 (move stop-loss to breakeven when filled); suggested second target at 1.4230. Basis is a possible strong breakout below 1.4455

http://img214.imageshack.us/img214/3096/euraud.jpg

Here's how I managed this trade:

 

1. 07/30 Short at 1.4455; suggested stop at 1.4530
2. 07/30 First target hit at 1.4530; suggested stop at 1.4455
3. 07/30 Stopped out at 1.4455

As you can see the first profit target got hit a couple of hours after I got in. As usual I took 1/3 of my position off at the first profit target. After that I moved the stop-loss to breakeven, and the market reversed and stopped me out with the remaining position. So not a great trade but still a winner

Happy Trading,

Marco

How about a real screenshot of from your trading platform with the actual (platform generated) trade history showing, not hand drawn lines?

Thanks.

Hi Slack,

I always use Genesis Trade Navigator for charting (for 5 years now), that's also how I do the charts for FX-ATM. I use my broker's platform only to place orders, that's what it's good for. I don't know much about their charting stuff but probably they won't show trades back from July in the charts anymore. Would look quite messy otherwise if you're doing lots of trades. And I guess the charts won't be easy to understand for everyone, in Genesis I can nicely draw in where I entered with text-comment so everyone can see it clearly.

What's wrong with the charts I showed? Anything unclear?

Happy Trading,

Marco

Damn numbers...

 

1. 07/30 Short at 1.4455; suggested stop at 1.4530
2. 07/30 First target hit at 1.4380; suggested stop at 1.4455
3. 07/30 Stopped out at 1.4455

That's the right one

A few days later I took a trade in AUD/JPY.

I sent out the folowing trade suggestion on August 1st:

Consider buying AUD/JPY at 78.60 stop-market. Suggested stop at 77.90; suggested first target at 79.30 (move stop-loss to breakeven when filled); suggested second target at 80.70. Basis is a possible strong breakout above 78.60


http://img100.imageshack.us/img100/4766/audjpy.jpg

Here's how I managed this trade:

 

1. 08/02 Long at 78.60; suggested stop at 78.45
2. 08/02 First target hit at 79.30; suggested stop at 78.50
3. 08/03 Stopped out at 78.50

Another trade that took off right away after I got in, hit the first target (I was lucky on that one, my limit-order was placed pretty much at the high of that day, I took off 1/3 of my position) but then reversed and stopped me out close to breakeven at 78.50 with the remaining position.

Happy Trading,

Marco

Yes, it's not clear you actually took the trades.



Exactly. And, an important part of some of those frauds is never showing live trades taken.

Hi Slack,

I prefer to do such things from person to person via e-mail/skype/phone. I don't feel very comfortable to show my private account-statements in a public forum to anonymous posters asking for it. I think that's something most traders can easily understand. So if you still have doubts after this send me an email ([email protected])

But anyway, I did the work and looked up the trade-statements. I think it goes without saying that I did blacken out some numbers.

As you might notice on some trades I got slippage on the entry/exits. Also on EUR/AUD I got out manually close to the first profit target because my limit order didn't get filled (but some subscribers orders did).

AUD/USD:
http://img153.imageshack.us/img153/2060/audusdstat.jpg

EUR/AUD:
http://img522.imageshack.us/img522/410/euraudstat.jpg

AUD/JPY:
http://img375.imageshack.us/img375/467/audjpystat.jpg

Happy Trading,

Marco

Another trade I spotted on August 1st, EUR/CHF:

I sent out the folowing trade suggestion on August 1st:

Consider buying EUR/CHF at 1.3640 stop-market. Suggested stop at 1.3570; suggested first target at 1.3710 (move stop-loss to breakeven when filled); suggested second target at 1.3850. Basis is a possible strong breakout above 1.3640


http://img6.imageshack.us/img6/4835/eurchf.jpg

Here's how I managed this trade:

 

1. 08/02 Long at 1.3640; suggested stop at 1.3579
2. 08/02 Suggested stop at 1.3634
3. 08/03 First target hit at 1.3710; suggested stop at 1.3660
4. 08/04 Second target hit at 1.3850; suggested stop at 1.3725
5. 08/06 Suggested stop at 1.3749
6. 08/06 Stopped out at 1.3749

One of those trades that started off a bit slowly after I got in. On the first day prices came close to the first profit target, I took some money there but then reversed. On the next day though EUR/CHF took off...

And the account-statement - let me know when I can stop posting them, they always look the same

http://img835.imageshack.us/img835/8088/eurchfstat.jpg

Happy Trading,

Marco

Thank you, Marco.

I'll be giving a free webinar, "THE LAW OF CHARTS IN ACTION: LIVE MARKET ANALYSIS AND Q&A" this Thursday at 15:00 GMT. For more information and free signup, see this page.

Here's the session summary:

In this session Marco Mayer, editor of Forex At The Market (http://www.fx-atm.com), will look at some live markets with you to show you how to use the Law Of Charts in action. During the session there will be plenty of time for questions regarding specific markets, trades, the Law Of Charts or trading in general.

Happy Trading,

Marco

You're welcome.

I can completely understand that you asked for some proof. I've seen too many "traders" on the internet myself who are really great at analysing charts after the fact but actually don't trade at all.

And for sure, you won't learn trading from someone who doesn't trade

Happy Trading,

Marco

Thanks for understanding.

Just registered for your webinar; can never learn too much.

A couple of days later I spotted a trade in EUR/AUD. As I stated at the beginning, I'd like to show you all trades, not just the nice ones. Why? Because losses are part of this business and this thread is about real-world trading, not dreaming around on historical charts how nice everything would be if we'd just have bought here and sold there


I sent out the folowing trade suggestion on August 9th:

Consider selling EUR/AUD at 1.4400 stop-market. Suggested stop at 1.4475; suggested first target at 1.4325 (move stop-loss to breakeven when filled); suggested second target at 1.4175. Basis is a possible strong breakout below 1.4400


http://img404.imageshack.us/img404/1356/euraud2.jpg

Here's how I managed this trade:

 

1. 08/10 Short at 1.4400; suggested stop at 1.4475
2. 08/10 Stopped out at 1.4475

This one definitely was ugly...I got stopped in the trade and it turned around right away and stopped me out...

But as I said, this just happens. And it happens to everyone. I know that there are a lot of scams out there telling you otherwise...it's all crap.

Believe me: If you can't deal with losses, sooner or later you'll have to deal with a loss you can no longer deal with...


Not sure if anyone wants to see proof that I took a losing trade, but here it is:

http://img257.imageshack.us/img257/4249/euraud2stat.jpg

Happy Trading,

Marco

Well yes, August 10th was not my best day. There was another FX-ATM trade that was stopped out on that day.

A trade in EUR/JPY...

I sent out the folowing trade suggestion on August 8th:

Consider buying EUR/JPY at 113.75 stop-market. Suggested stop at 113.00; suggested first target at 114.50 (move stop-loss to breakeven when filled); suggested second target at 116.00. Basis is a possible strong breakout above 113.75

http://img266.imageshack.us/img266/606/eurjpyk.jpg

Here's how I managed this trade:

1. 08/09 Long at 113.75; suggested stop at 113.00
2. 08/09 Suggested stop at 113.25
3. 08/10 Stopped out at 113.25

As you can see I could move the stop up shortly after the entry, reducing the risk of the trade down to 2/3 of the initial risk before I got stopped out.

Actually that's quite an important aspect of my trading. I tend to reduce the risk of each trade as soon as it makes sense. Most of the time, this is the right decision since my "good" trades usually move in the "right" direction quickly after I got in.

Unfortunately I also traded that one in my own account...if I only could figure out a way to know before the fact if my suggestions will be profitable or not...

That's one of points where I see a lot of new, but even more "experienced" traders (actually they're usually more experienced in playing around with charts than in trading but anyway...) go wrong. They decide to take a trade and it's a loss. Now that's not the way it's supposed to be right? A losing trade, cmon this is supposed to me a money-machine!

And right after the trade they start to try to figure out why it didn't work out.
I always have a funny time when I get to know what arguments they come up with (or other traders they asked why the trade failed). They'll talk about some indicator showing "divergence", or a "resistance" area they traded right into but didn't see or a trendline or some goofy chart pattern or because some news was coming out earlier that day or because the moon was at the wrong place...well I could go on for hours about this!

The truth? The trade just didn't work. In case of my EUR/JPY trade, no big players were willing to buy EUR/JPY at a higher price than I did. Or maybe they just went to lunch when the breakout happened? I'll never know and I don't have to but trying to filter out that one trade to not get into that situation again is a dead end. You'll end up taking no more trades at all because there's ALWAYS a reason you can come up with to NOT take a trade...

What to do instead? Keep your trading as simple as possible, have your rules what makes a trade a good trade but if they show up don't hesitate and take the trade. And if it's a loss? Be a trader, move on and take the next one that shows up. Can't do that? Better start looking for a new job or start working on that "skill"! But face your real trading-problem and don't hide from it by looking for yet another "filter" to avoid ALL losing trades.

Anyway, here's the account statement.

http://img842.imageshack.us/img842/9413/eurjpystat.jpg

Happy Trading,

Marco

Next trade...this time AUD/JPY

I sent out the folowing trade suggestion on August 15th:

Consider selling AUD/JPY at 76.65 stop-market. Suggested stop at 77.25; suggested first target at 76.05 (move stop-loss to breakeven when filled); suggested second target at 74.85. Basis is a possible strong breakout below 76.65.


http://img820.imageshack.us/img820/5721/audjpy2.jpg

Here's how I managed this trade:

 

1. 08/16 Short at 76.65; suggested stop at 77.25
2. 08/16 First target hit at 76.05; suggested stop at 76.65
3. 08/16 Stopped out at 76.65

I didn't make a ton of money with that one, since AUD/JPY reversed and stopped me out at breakeven after the first profit target was hit. But the trade was so easy down to the first target that there's nothing to complain about. Quick and easy money. I think this happened while I was asleep during the asian session...and that's nothing unusual for me. I don't have to monitor the markets 24/7, instead I usually have a look at what's going on 3-5 times a day and that's it. This way I usually spend 1-2 hours each day in front of the charts and get what I want out of trading: Time and Money.

Issn't that why you initially got interested in this? And now you're sitting there 14 hours a day looking at those stupid charts? Think about it...


And the account statement:

http://img827.imageshack.us/img827/6447/audjpy2stat.jpg


Happy Trading,

Marco

I just got an email that the recording of yesterdays webinar is online now, you can find it here.

Happy Trading,

Marco

This trade happened around the same time as the last AUD/JPY trade I showed...

I sent out the folowing trade suggestion on August 15th:

Consider selling USD/CHF at 1.0464 stop-market. Suggested stop at 1.0539; suggested first target at 1.0389 (move stop-loss to breakeven when filled); suggested second target at 1.0239. Basis is a possible strong breakout below 1.0450

http://img201.imageshack.us/img201/4327/usdchf.jpg

Here's how I managed this trade:

1. 08/16 Short at 1.0464; suggested stop at 1.0539
2. 08/16 First target hit at 1.0389; suggested stop at 1.0464
3. 08/19 Stopped out at 1.0464

Again a trade that hit the first profit target very quickly and without any stress but then turned around and stopped me about at breakeven with the remaining position. That's not bad...but yes it did hurt a little to see that right after I got stopped out the damn thing dropped like crazy...

How can you avoid to get stopped out just before the big move happens? Again many would answer stuff like place your stop a few ticks higher because of "bla bla bla" but reality is : You can't. It's part of trading. Wherever you place your stop this can and will happen sometimes. Of course there are good and bad ways to place your stops but ultimately there's no way to avoid this from happening and changing your stop-loss rules when it does usually just makes things worse...

And my account statement of the trade:

http://img232.imageshack.us/img232/9998/usdchfstat.jpg


Happy Trading,

Marco

Try to post immediately trade after taking it..and not to edit post after that... That doesn't hurt and will be real trade

I have seen how reports has been faked also..

Posting trades immediately I have found that this is 99 % safest way to show are You good or no.. If You want to do that, ofcourse.

If not - no problem.. I am just saying that because You are posting Your trades, so, to post trade some minute after entering trade isn't hard

If You want to tell me - this is not trading signal service, i am not here to proof to someone something, etc.. etc.. etc.. - no problem, i have heard those sayings a lot... - I and others will understand

Happy trading.


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