Time Cell Trading

EURUSD, Monthly, 2011 January 21

GBPUSD, Monthly, 2011 January 21

Hi PhAnTi'

That's quite untrue!

see all History Files and the published links at p.1,#1, please.
http://www.myfxbook.com/members/Forexcube
http://www.myfxbook.com/members/Fore...000--day/77119
http://twitter.com/forexcube

Everybody could folllow all my trades. You don't see this very often at FF!

And "winnings" are really winnings without parenthesized expression.

The Equity is the real result for me!

All the open trades are MM and RM with Hedging Management. Consider that!

More gimlet-eyed, please!

I would like more sincere persons here!

FXcube

http://www.babypips.com/blogs/pipsyc...ystem.htmlDoes Your Personality Match Your System?
Posted 15:00 17 December 2010

Does Your Personality Match Your System?

In his book, "Mechanical Trading Systems: Pairing Trader Psychology with Technical Analysis," author Richard Weissman identifies three basic trader personality profiles: trend-following, mean-reversion, and day-trading types.

Trend-Following Systems
Weissman enumerates two traits necessary for successful trend-followers: patience and fortitude.
Trend-following mechanical systems hopefully get traders in strong directional moves, and signals typically form when the trend has already begun. A typical entry strategy may be to buy at recent highs or sell at recent lows, in anticipation that the price will make a new high or low later on. This may seem counter-intuitive to the majority of traders who like to pick "tops" and "bottoms," but that's what sets trend-followers apart from the rest.
The strength of this method is that if you catch a strong trend, you can come up with huge winning trades relative to your initial risk. But of course, no system is fool proof and there are tradeoffs to grabbing potentially big wins.
As the saying goes, "markets range 70-80% of the time." That means catching a strong trend can be rare, and sticking to a trend-following system requires that you endure several small losses when your entry signals have you jumping in when the market consolidates or pulls back.
To be a trend-following trader you must be comfortable with potentially having a low win ratio, but as long as your winning trades generate enough profits to outpace your losses, then that's all that matters.
So the questions you have to ask yourself are, "do I have the mental fortitude to handle more losses than wins AND do I have the patience to ride the winning trades to their full profit potential?" If you answered "yes" to these questions, or if you feel stressed having to come up with numerous trade decisions in a day, then trend-following mechanical systems may be the right entry/exit method for you.

Mean Reversion Systems
Aside from trend-following systems, there are systems that are based on the "mean reversion" theory. In terms of price action, the theory states that on average, markets are more often trading within a range than trend, and when the market goes beyond its average range of historical volatility, it tends to fall back to the middle of that range, or the "mean." These systems aim to look for probable reversal points (i.e. tops and bottoms) where price movement could change direction.
The major difference is that while trend following systems aim to "ride the trend" for large profits, mean reversion systems normally have an exit in mind based off key support or resistance levels. This means a lot more smaller winning trades.
A couple of indicators used in mean reversion systems are the ADX and Stochastic. The ADX helps identify whether the market is in a trend or rangebound, while the Stochastic indicates potential overbought and oversold conditions that tend to precede a reversal.
The key to utilizing a mean reversion system, especially during the long-term timeframes, is maintaining rock solid discipline. Using this method could put you in the market against a strong trend, which can be psychologically difficult if it doesn't turn your way. Also, there can be many distractions and obstacles that cause psychological stress for a trader, such as the media and other traders. You must train yourself to follow your system's rules no matter what and remember that the strength of a mean reversion system is the high probability that markets will stay in a range.

Day Trading Systems
Lastly, we have day trading systems. These can be trending or mean reversion systems, but on a shorter time frame--Weissman cites that these generate signals for trades that last 10 days or less. Market junkies who have a knack for these kinds of fast-paced systems usually look at the hourly time frame or lower to aim for smaller profits and place tight stop losses.
According to Weissman, mechanical systems benefit short-term traders the most as the frequency of making trade decisions arise. By using a mechanical system that already outlines what entry and exit levels to take with pre-determined risk-reward ratios, a day trader is somehow relieved from stress.
However, this is not to say that intraday systems are all sugar, spice, and everything nice. The biggest drawdown to using them is that they are labor-intensive. Traders have to be glued to their screens during trading hours either to be ready to act on valid signals or to monitor/adjust their trades.
Dealing with potentially volatile intraday market action, a trader must be able to quickly make sound decisions. Mental agility is critical for someone to master day trading systems and if you think that you have the capacity to find Zen amid the chaos, you may want to try out an intraday system.

So what's your trading personality?
You have to remember that regardless of what kind of system you're using, the market will always find a way to put you in between a rock and a hard place. There will be times that you will have more losers than winners, trades go quickly against you, or you'll have to let go of some of your unrealized profits.
But knowing what you are comfortable with and finding the system or method that matches your personality will help you better adapt to the always-changing market environment.
So if you think that you aren't so good in calling shots under pressure, perhaps you may want to stay away from short-term systems. On the other hand, if you think you have the discipline to stick to your plan even when price action goes against you, you may want to try out a long-term mean reversion system.
So does your personality match the trading system that you are using? If not, how about checking out our Forex forums or MeetPips.com to find something new? Good luck!

http://www.babypips.com/blogs/pipsyc...ot_enough.html

Being Positive is Not Enough

While a positive mental attitude is important, it is not enough. Those of us who are in forex currency trading also need to be able to do the following:

 

1. Use a trading method that has an edge BUT only when all the pieces come together to create a solid setup with a high probability of success.
2. Stay focused on attaining their goals and constantly thinking about winning.

Unless you have an approach that works over a period of time and stay focused and disciplined in sticking with it, all the positive mental attitude exercises will not help you.
To begin, you must go back to the most elementary question, 'What type of a forex trader do I want to become?'

 

1. A scalper, intraday, or a swing trader?
2. Based on the above, what time frames will I trade?
3. Will I use traditional lagging indicators or a forward looking approach?
4. Do I look at other markets to gain clues for future FX price movements?
5. Is my initial trading plan robust and does it hold up over a large sample size of trades?
6. Does my trading approach only look at the market one dimensionally?
7. Do I know how to properly assess risk and manage position size accordingly?
8. Can I sit in front of my screen and fight the temptation to trade every zig and zag or "signal" from the forums?

If you are unsure about any of the answers from above, a positive mental attitude will not benefit you much.
Becoming a proficient trader is a journey that never ends, you simply move on to different stages of understanding and effectiveness.

http://www.babypips.com/blogs/pipsyc...ders_make.html

5 Common Mental Mistakes New Traders Make

Before you open a real live account it is important that you familiarize yourself with the most common mental mistakes new traders make. You'll probably still make them anyway, but at least you'll actually be aware you're making them which hopefully will make easier for you to correct them.
1. Overconfidence

Trading for a living can be a dream come true, but it can also be a nightmare. If believe trading is easy, you're done before you even started. Trading is not easy. Trading is hard. Real hard. It's hard to consistently remain mentally focused and stay disciplined. Know that going in and you increase your chances of success big time.
2. Lack of Emotional Control

Your mind always assumes the worse. It does that to protect you from harm. Because there is a potential that you'll lose money and all the mental anguish that brings, the mind tells you not to do a trade.
You have to learn how to override this self-protecting mechanism if you want to be a trader. Talk to your mind. Tell it you are fine with doing the trade. Remind it that have a stop placed and you will not be harmed if it doesn't work out. Convince your mind that in order to make money trading you need to take risks and the risks that you are taking have been carefully planned and measured.
3. Fooling yourself

Once you are in a trade do not try and justify its merit. The market does that for you. The final outcome of your trade should be a stop loss triggered, breakeven, or profit taken Once the trade is completed, don't dwell on it. Every trade is different and what worked this time may fail next time. Review it briefly and go on to next trade. Focus on the overall trading and don't spend too much time on each individual trade. This will make you an excellent trader. Accept the outcome of your trades. But don't accept not sticking to your game plan.
4. Jumping the gun

Traders are constantly jumping into the right position at the wrong time because they're afraid they are going to miss it, especially at market turning points. Don't be afraid to miss the first 25% of the move; and get out after 75%. Catching 50% of a confirmed move will produce awesome results. You will also not have to deal with getting stopped out and then watch the price reverse and go in your direction.
5. Not Thinking in Probabilities

Accept your trade losses as being normal. Don't beat yourself up over them or try to unnecessarily tinker with preset stop loss and take profit. Don't expect to be right 100% of the time.

http://www.babypips.com/blogs/pipsyc...potential.html

Positive Thinking Powers your Potential

Being successful, whether it's as a Forex trader, a business owner, or even as a parent, takes a lot of personal development. Day after day you have to deal with many uncertainties, some known and many others unknown. You are continually tested by your surroundings (the currency market, your employees or coworkers, your children), and how you react before, during and after these challenges all play part in your success.
As currency traders we all have those days (or weeks) when things just don't go our way. Our losses are overshadowing our wins, and we can't seem to consistently win. We start to wonder if we can ever make any "real" money and if becoming a full-time trader will ever be realized.


"Why did I ever get into currency trading? It's nothing but a stress builder and a gigantic head ache. Who am I kidding? I think my hair is falling out!"
If you've been feeling this way and are asking yourself some of the same questions, it's time to sit down and work on your positive thinking. Any successful trader will tell you that he has made the mental decision to be as positive as possible in thinking, acting and doing, and that having a positive mind is critical in overcoming the setbacks brought on while trading.
So what can you do to become a better positive thinker?



Start off the morning by looking at yourself in the mirror and saying "I'm good enough, I'm smart enough, and gosh darn it, people LIKE me!" And say it just like Stuart Smiley from Saturday Night Live... with enthusiasm! No really, promoting yourself to YOU is a great first step in the right direction. It helps you get in the right mind set, and helps you to start your day thinking positive thoughts. If looking in a mirror scares you, I'm sorry...try just saying it out loud to yourself.


Next, observe your negative thoughts and understand that only you can change them. Once you start ridding yourself of those thoughts, you are thinking positively, while also creating a positive attitude. The market has its ups and downs. Your trading will have the same. Loses are inevitable. They happen to everyone.


Think and visualize yourself as already being a successful trader. Imagine that your trading experience allows you to easily notice changes in the market and react to them by making profitable trades. Imagine only positive results. Imagine the wealth you've created and the lifestyle it affords you. This type of thinking will help reinforce the ideas that first led you to the currency market and motivate you to stick with it.


Another easy method to assist you in becoming a positive thinker is to surround yourself with a positive environment. This can be your work space or the people around you. The world is filled with doubters and people who want to "help" you by destroying your dreams or shooting you out of the sky. Make it easier on YOU by surrounding yourself with other positive thinkers who reassure and support your Forex trading. And liven up your trading space so it's inviting and makes you want to be there. Maybe it's time to replace this crusty keyboard?


Also help yourself by being a positive talker to others and about youself. Speaking positively fills your head with positive thoughts and ideas. Negative self-talk only helps to hinder your potential as a trader and keeps you from growing.



Do your best to welcome the currency market's obstacles and view them as your opportunities for profits and success. Dealing with these obstacles will only help you to create a better trading experience. Small changes in the way you think about yourself, think about others and think about trading will go a long way in your overall success as a trader.

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Top Meditation Business

Hi Traderlarry

If I earn 2000.- $ then I have to capitalize my account ten times as much and not the other way round of RRR from 2:1 or 3:1 which you could read everywhere at broker sponsored Forex Literature & articles. For my trading style with my personality and my RR and MM it's useful to manage a reward-to-risk-ratio (which aren't set in stone) from 1:10 and not from 2:1 or 3:1 Why? Because I make much money more in this way, ...the only reason, heavy-duty!


...and PhAnTi's arguments (see #1436, please) has losen ones objectivity completely.

He said "he doesnt play with SL"
Here I can only reply I don't play with SL I don't trade with SL, if so then only spare.

So I can only argue against once more: I don't play, I trade.


Second blackball: "His DD is impressive".
Drawdowns are per definition: "A drawdown is the reduction of one's capital after a series of losing trades". (http://www.babypips.com/school/drawd...-drawdown.html).

More precisely: There are two types of drawdown that are considered to be the important properties of expert advisors (for instance, in MetaTrader platform) — absolute drawdown and maximal drawdown.

Absolute drawdown is the difference between the initial deposit and the minimal point below the deposit level during all test period. It tells you how big your loss can become compared to the initial deposit during the trading. If this value was 0 during the test, then your deposit wasn’t at risk at all.

Maximal drawdown is the maximal difference between the local maximum extremum in your equity chart and the next local minimum extremum in your equity chart. It tells you how low your strategy can go after getting some profit. It can also be called a depth of a losing streak.

Excursus - in view of EA's aspects.
Generally it’s a good idea not to trade with EAs with the maximal drawdown higher than the profit. But I don’t recommend trading even with strategies or expert advisors that have maximal drawdown at levels higher than 25% of the net profit. Mind your own risk-to-reward ratio and don’t trade with EAs that don’t comply with it.

En passant
Unfortunately, the current version of MetaTrader 4 (Build 225), the strategy tester incorrectly calculates the drawdowns, so if you are testing your EAs, it’s better to calculate both the absolute drawdown and the maximum drawdown manually.


In my way of advanced trading style I prefere the equity and a drawdown is for me more the difference between the balance of my account, and net balance of my account. The net balance takes into account open trades that are currency in profit, or currently in loss. If you account net balance is lower than your account balance, this is called drawdown.

Drawdowns are part of trading. The key to being a successful trader is coming up with trading plan that enables you to withstand these periods of large losses. And part of your trading plan is having risk management rules in place.

PhAnTi' describes my drawdowns as "impressive". I don't think so. I like to trade the currency pairs logical (less emotional). I like to think in theory of probability (likelihood) and in mathematical aspects during my trading sessions with regard at my risk- and money management and my TCT-concept. At my advanced level trading I don't think so that my "drawdowns" are impressive, due to the fact that I have another risk reward ratio concept of 1:10. (Extreme Example, see #1462, please). At my real accounts there aren't any problems precisely because you can remargin anytime which you can't at demo accounts. In the final analysis does that mean that the profit at the real accounts are still higher and that the most part of Forex Traders Accounts seems to be extremely undercapitalized.

Hope it clarifies things much more!

Kindest regards
FXcube

#1436

Hi PhAnTi'

See #1458, please.

Once more.

You've have written:
he only posts his ''winnings'' : p

That isn't true!

Everybody can follow all my trades at:
http://www.myfxbook.com/members/Fore...000--day/77119
http://www.myfxbook.com/members/Forexcube
http://twitter.com/forexcube


Kindest regards
FXcube

EURUSD, Daily, 2011 January 24

Daily is showing a CCI(14) divergence.