Thanks for your reply.
I can see that most of the time you're right, so this is a valid method for you ... but I think for a newbie can be the most direct way to ruin ... LOL.
- #15,421
- Dec 1, 2010 12:35am Dec 1, 2010 12:35am
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
- #15,423
- Dec 1, 2010 12:45am Dec 1, 2010 12:45am
- | Joined Jan 2010 | Status: Trader | 1,354 Posts
"Being picky only cost your time - not MONEY"...Hans
- #15,424
- Dec 1, 2010 12:58am Dec 1, 2010 12:58am
- | Joined Jan 2010 | Status: Trader | 1,354 Posts
The most direct way to ruin, newbie or otherwise, is to trade large vs size of account, focusing on how much money can be made rather than on being conservative and focusing on the trading method and market's moves.
If I can ask about your MM .... What % you risk on each trade?
How do you calculate if you are using a mental stop is often not respected?
Sorry for my bad English ... I hope my question does not sound offensive ... I'm trying to learn your way of trading.
Thanks in advance for your help...
Regards.
"Being picky only cost your time - not MONEY"...Hans
- #15,425
- Dec 1, 2010 1:08am Dec 1, 2010 1:08am
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
- #15,426
- Dec 1, 2010 3:55am Dec 1, 2010 3:55am
- Joined Feb 2009 | Status: Trader | 1,292 Posts
i've a doubt about your trading method...
Is not average down a dangerous practice when you trade?
Thanks.
That is a good question. Averaging "down" can be dangerous, just like trading forex can be dangerous. It is all a gamble. If you are wrong, you lose. If you are right, you profit. We all should realize that at any time price can suddenly move in the opposite direction, and keep going! But, if you still believe in your trade, and if you are right in doing so, then eventually the price will reverse again and come back, and move on as originally expected. And in that case, averaging down adds profits. Personally, I believe in letting a trade have...
There are many pro traders that believes "Losers Average Losers" and they don't believe in "Lost Average", what TAH is doing in the first look. I may add to my position, but I have solid SL with no larger than 3% risk.
The point is, when the ones who is losing average their position with high risk, they take very very small profit comparing to what they'd risked. For example imagine that one of those traders have 5000$ account balance. He was losing average and his equity shrinked to 600$ or even worse. Then market decided to give him another chance (and that's even worse !! Because now he believes that losing average works!) and go in his favor. But he's bruised, he had a lot of pain when he was in losing trade. He was hopeless, now he see himself in a winning trade after nearly losing his whole acount. The pain of being a loser for maybe several days, make him to close his position with maybe only 100$ ! you see ? he is risking 5000$ for 100$ !!
But TAH takes his time to make very good profits, mainly over 100 pips. It's completely different things. Though I don't recommend anyone to follow this method of MM (Not because it's wrong, becaues many traders, including myself, can't control his emotions like TAH), it's working for him. and that's all ...
Hope it helps
Regards,
Basber
Trading methods are designed to put the odds in our favor, not predicting.
- #15,427
- Dec 1, 2010 3:58am Dec 1, 2010 3:58am
- Joined Feb 2009 | Status: Trader | 1,292 Posts
I closed the trade on confluence of: FE 261.8 + mR1 + EMA 200.
Is it being a very good week for the sonic system? Or this trading method works so well.
After 3 years of trading failed ... Am I going from step 2, "Conscious Incompetence" to step 3 "The Eureka Moment"?
I do not want false hope in myself ... time will tell.
Now to keep learning.
Regards.
It took me 2.5 years ... LOL ! You may experience a break even period ... being more selective may help you if you experiece such a thing after you're shifting to next level
P.S. : Nice trade by the way
Regards,
Basber
Trading methods are designed to put the odds in our favor, not predicting.
- #15,428
- Dec 1, 2010 4:00am Dec 1, 2010 4:00am
- Joined Feb 2009 | Status: Trader | 1,292 Posts
Trading methods are designed to put the odds in our favor, not predicting.
- #15,429
- Dec 1, 2010 4:21am Dec 1, 2010 4:21am
- Joined Feb 2009 | Status: Trader | 1,292 Posts
Folks, I recommend you not only re-read Basber's post, but I heartily recommend you think on it, REFLECT on it for awhile.
And how do you "try to be a better trader"? You must be willing to ponder on your losing trades....why did you enter?.....was it the proper time to enter, or were you too impatient to trade?....what went wrong?....what should you have done at that point that you didn't? These type things and more, you must be willing to rethink. In the end, you will come out with certain "trading flaws" common to most of your losing trades....
When you enter a trade, there are two things that could happen :
1) Make a profit
2) Make a loss
(Really !?!?! no way
)First, you should throw away this equation :
Winning = I did something right
Losing = I did something wrong
Because you may enter a trade on wrong basis, and you win ! this equation doesn't work at all in this business.
Now let's go back to those two situations ! :
1) You find yourself in a winning trade. That's good, but see if you done everything according to your trading rules. If you didn't, seek out what's wrong and consider yourself a lucky trader, not a successful trader. And if you did what you should've done, you can have more trust in your method now.
2) But when you lose ...
The reason of this is devided into two COMPLETELY different categories. :
A) You did something wrong (wrong entry, SL or TP , wrong analysis or etc.)
In this situation, you should work on your skills, like what TAH mentioned above.
B) But there's another situation. You did everything right and you lose ! THIS IS A SITUATION THAT YOU CAN'T IMPROVE, YOU SHOULD ACCEPT IT. this business is about probablities. You just can filter the previous losses, not this kind.
The last but not least is YOU SHOULD LEARN AT LEAST ONE THING FROM EVERY TRADE YOU MAKE. If you (I'm not poingting and TAH, It's a general post, just quated TAHs post to emphasize this) didn't, you're not in a good path. If you do, you'll improve your trading before you know.
Making this happen is only when you have you're own trading journal ...
Hope it helps
Regards,
Basber
Trading methods are designed to put the odds in our favor, not predicting.
- #15,430
- Dec 1, 2010 4:54am Dec 1, 2010 4:54am
- | Joined Jan 2010 | Status: Trader | 1,354 Posts
"Being picky only cost your time - not MONEY"...Hans
- #15,431
- Dec 1, 2010 4:57am Dec 1, 2010 4:57am
- | Joined Jan 2010 | Status: Trader | 1,354 Posts
"Being picky only cost your time - not MONEY"...Hans
- #15,433
- Dec 1, 2010 5:11am Dec 1, 2010 5:11am
- Joined Feb 2009 | Status: Trader | 1,292 Posts
Trading methods are designed to put the odds in our favor, not predicting.
- #15,435
- Dec 1, 2010 5:46am Dec 1, 2010 5:46am
- Joined Feb 2009 | Status: Trader | 1,292 Posts
Trading methods are designed to put the odds in our favor, not predicting.
- #15,437
- Dec 1, 2010 9:48am Dec 1, 2010 9:48am
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
- #15,438
- Dec 1, 2010 9:51am Dec 1, 2010 9:51am
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
- #15,439
- Edited 10:44am Dec 1, 2010 10:12am | Edited 10:44am
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
I agree with you ...
If I can ask about your MM .... What % you risk on each trade?
How do you calculate if you are using a mental stop is often not respected?
Sorry for my bad English ... I hope my question does not sound offensive ... I'm trying to learn your way of trading.
Thanks in advance for your help...
Regards.
Seriously, if you are following the "% Rule", stick to it. And Basber's posts are good reading on money management.
I start small enough so the "% Rule" is of no consequence. But I might add enough over time and travel so that it becomes so, because while PA is moving against me, if I still find reason to believe my trade is correct, I may selectively exceed the "% Rule". Remember, I prefer only to add at the extreme of swings that are negative to my trade, swings accompanied at their conclusion with high trading levels, because this tells me the PPMs are trying to "force liquidation" for their own acquisitions. And if they are acquiring at movement extremes, they must be acquiring the "opposite side" positions.....in the same direction as my trade. I also keep in mind the number of whole number levels PA has moved against the trade. The more there are, the more likely the reversal, because even a longer TF reversal, if in process, will have retracements. But, sometimes enough is enough and I have had to "load up" on a "final swing" and pull out with a reduced loss on a following retrace.
It is not a recommended way to trade, as I have repeatedly posted from time to time. And when I find another, better, that fits my personality, I'll benefit by change I am sure.
BTW, abuse of what I sometimes do can clear out your account in record time! I try not to abuse, and to extend only if I still see good reason to believe my trade is correct. PPMs are capable swings of multiples of hundreds of pips over days, even weeks, to obtain positions for a much grander move in the opposite direction (the trade direction). But if it is a true longer term trend reversal and without substantial pullbacks (rare), you can be wipped out!
I do not implement this "procedure" on every trade, and really I do not like to implement this "procedure" on ANY trade. And what I have noticed is that the best SonicR setups seldom, if every, "get out of hand" in such a manner as to raise thoughts of starting such a procedure. So, in the back of my mind is the thought that maybe the best SL management technique is the "be very picky about your setups" technique.
- #15,440
- Dec 1, 2010 10:55am Dec 1, 2010 10:55am
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
