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Trading Made Simple

  • #2,501
  • May 13, 2011 11:41am May 13, 2011 11:41am
amazing system you guys have created. I'm only 20 so my future is looking bright. I'm starting a clothing line this summer designed and promoted by myself entirely. 9 Thousand twitter followers already, so once that is off the ground I plan on investing money into forex.

Priorities come first though

I was thinking about a 4k account trading small lots like .13 just to get a good feel for the system on live and slowly upping the lots weekly or bi-weekly
  • #2,502
  • May 13, 2011 11:47am May 13, 2011 11:47am
Quoting GeraldFX
Let's do some case study:

As seen on the chart, i took this trade because:

Trading plan 1: Is TDI pointing good angle 4 or 5? - YES @ 4.5 (Don't ask me how to see, just do a simple judgement. There is no right or wrong. Once you practice, you will know it.)
Trading plan 2: Is it in the direction of Stoch? - YES (Below 50 - a bearish bonus!)
Trading plan 3: Where is my stop loss? Is it within my risk? - YES @ nearest high with only 23 pips.
Trading plan 4: Where is my exit? - When Stoch cross or TDI Green goes flat.
Trading plan 5: Any...
I would exit NOW!:

1. Stoch OS
2. TDI < 32
3. Check the 18 April lows (support)
4. Friday
5. Daily Pivot S2 was hit
6. You've got enough pips :-)
Bah...
  • #2,503
  • May 13, 2011 11:49am May 13, 2011 11:49am
Quoting KumoDragon
Compounding is great, but above is a pipedream and does not work with forex. Figured it out mathmatically myself in terms of an actual account and margin requirments.

To compound in forex pick you risk per trade, like say 3%, compound with every win and de compound with every loss. If you have a good win/loss ratio and a method that lets let winners run and cut losses short you'll do ok.
yes doubling a penny is a pipe dream but compounding 1% a day is not. 1% a day is very doable
  • #2,504
  • May 13, 2011 11:51am May 13, 2011 11:51am
Quoting Dyekid217
amazing system you guys have created. I'm only 20 so my future is looking bright. I'm starting a clothing line this summer designed and promoted by myself entirely. 9 Thousand twitter followers already, so once that is off the ground I plan on investing money into forex.

Priorities come first though

I was thinking about a 4k account trading small lots like .13 just to get a good feel for the system on live and slowly upping the lots weekly or bi-weekly
You are better off calculating your risk by dividing your risk by your stop loss.

For instance I have a stock 100 pip stop for trades. My max risk of 3% gets divided among that. Win compoud up, lose compound down (If you don't compound down you are compounding losses).

So, when you are starting out and testing or whatever maybe do a max 1% risk per trade. 3-5 % is considered on the high side, past that gets you into, "noob trader who loses account because he doesn't understand money managment and basic math," territory.

Upping lots by monetary levels you pass doesn't provide a the best equity curve with wins.
  • #2,505
  • May 13, 2011 11:53am May 13, 2011 11:53am
Quoting Dyekid217
amazing system you guys have created. I'm only 20 so my future is looking bright. I'm starting a clothing line this summer designed and promoted by myself entirely. 9 Thousand twitter followers already, so once that is off the ground I plan on investing money into forex.

Priorities come first though

I was thinking about a 4k account trading small lots like .13 just to get a good feel for the system on live and slowly upping the lots weekly or bi-weekly
Hi trading is a journey. Demo trade it first. Do not give free money to the market, YET. I know many people has different perception, but don't make the same mistake i made when greed comes in, it will kill you.

To be able to trade well is to understand the market, understand your indicator and the hardest part is to understand yourself.

Good luck.
  • #2,506
  • May 13, 2011 12:00pm May 13, 2011 12:00pm
Quoting SnapCracklePip
yes doubling a penny is a pipe dream but compounding 1% a day is not. 1% a day is very doable
Yep, agree, did that 1. 5 times since wednes day.
  • #2,507
  • May 13, 2011 12:01pm May 13, 2011 12:01pm
Quoting plamendp
I would exit NOW!:

1. Stoch OS
2. TDI < 32
3. Check the 18 April lows (support)
4. Friday
5. Daily Pivot S2 was hit
6. You've got enough pips :-)
Good, now look at the 8 pairs suggested by BigE to trade on. Do you see the same thing? Look at it, remember it. You will always see the same thing & laughing before you go to the bank.

Out of 8 pairs, only 1 pair i didn't trade well which is USDJPY.

1. Do we expect losses from this? - YES, it isn't a holy grail.
2. How can we be successful with our trades? - YES with good Money management.
3. What is a good money management? - ??? What do you think it is? Try ask yourself.

p/s: if you keep a log book, u will find often making the same mistake over and over again. if we avoid it, we make lots of good trades.
  • #2,508
  • Edited 12:30pm May 13, 2011 12:02pm | Edited 12:30pm
Quoting KumoDragon
You are better off calculating your risk by dividing your risk by your stop loss....
yup your spot on......2 years ago i started a money management strat wher i traded .01 pip.....until i made 1000 pips or 10 dollars then i moved up to .02 a pip again 1000 pips.........then .04 etc etc....when i got to .08 i lost 250 pips so i then went back to trading .04 pip until i reached 1000.....im now trading 50.00 a pip and life is good....

so yes you must compound down for losses but it helps if you jump down at a faster rate than up.... count the pips not the money......i think we both saying the same thing just not the same way

each time i loose 250 pips at the new level i still keep 1/2 of my gains at the prev level.....then i move back to the prev level and start over.......
somewhere around level 15-18 this gets very sticky...... Ive found a platue at around 5 standard lots....i cant seem to get to 10 lots and ive not had to backtrack to 2.5.........however i do not trade just 5......if im unsure of a trade ill put 1 single standard on.....idk this just how i do....just sharing

as stated before i use an EA to money manage for me....it places a stop of 50 pips per trade.......it is really just a safeguard.....sometimes ill close the trade manually at -10 or -13 or whatever.....its key in that i have placed trades in the past and become distracted by one thing or another, fallen asleep, got drunk etc etc.......and forgot to properly moniter the trade.....

so 50 pips is 1/5th of my 250 pip threshold.......gahh i dunno how to articulate this but it all snowballs...i take maybe 3-4 trades a week now...i used to average 100-300 a day in my begining.....its just all very easy now. I dont sit and watch the charts 24/7 i dunno what to say....its not rocket science........to me its easy peezy
  • #2,509
  • May 13, 2011 12:05pm May 13, 2011 12:05pm
Quoting KumoDragon
You are better off calculating your risk by dividing your risk by your stop loss....
Compounding is good but for new people, pls do not do this until you know what you are doing. It may do you more harm than good if you are not conscious of what you are doing eg: when losing and throwing more lots to back losses because you were not aware Mr Greed was at the door.
  • #2,510
  • May 13, 2011 12:32pm May 13, 2011 12:32pm
Quoting GeraldFX
Let's do some case study...............
.
Excellent post. Thanks.
  • #2,511
  • May 13, 2011 12:40pm May 13, 2011 12:40pm
Quoting GeraldFX
Hi trading is a journey. Demo trade it first. Do not give free money to the market, YET. I know many people has different perception, but don't make the same mistake i made when greed comes in, it will kill you.

To be able to trade well is to understand the market, understand your indicator and the hardest part is to understand yourself.

Good luck.
Thanks for the advice. I don't plan on going live for probly another 3-4 months. In this time period I hope to get to 70-80% wins consistently. As stated in this thread it shouldn't be too hard to manage!
  • #2,512
  • Edited 1:05pm May 13, 2011 12:41pm | Edited 1:05pm
One tip that I have found helpful from the synergy videos on reading the HA candles is look for "air" between the setup candle and the EMA. Its not a must have but if you see it, its a nice bonus. Just look back on your charts for TDI crosses that had this feature and as we say on the TMS thread fill your wheelbarrow!

Couple of examples here on the chart (marked with the thumbs up)

Post 973 pg 65 for the video.

By the way don't feel this is adding anything extra to the system, this is all part of just reading the HA candles correctly which is definitely an important part of the TMS system.
Attached Image (click to enlarge)
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  • #2,513
  • May 13, 2011 12:54pm May 13, 2011 12:54pm
Entries and exits...

We Enter a trade when green crosses red on the TDI at the beginning of that candle... If it's candle 3 or more don't enter... find another trade set up. The only exception is if green bounces off red and continues... it's ok to re-enter on the bounce...

Exit your trade when the green TDI line goes flat, starts to hook over or makes a check mark reversal.

If you add other things it will influence your decisions... usually to your detrament. Don't try to complicate it thinking it can't be this easy.

Important to study TDI entries on old charts, any time frame... Give yourself a chance and trade it like it's layed out...
Trade responsiblypatience is the key/Swing trader
  • #2,514
  • May 13, 2011 12:58pm May 13, 2011 12:58pm
I made 26.5 pips after losing 13.1 pips.So I made 13.4 pips net earlier.

13.4/15.0[risk] =0.89

0.89*0.09=0.08%

So by adding 13.4 pips my account grew by 0.08%.
Next week will be greater.
With God all things are possible.
  • #2,515
  • May 13, 2011 1:03pm May 13, 2011 1:03pm
Here is the 15 min chart below.
Attached Image (click to enlarge)
Click to Enlarge Name: 1.gif Size: 29 KB
With God all things are possible.
  • #2,516
  • May 13, 2011 1:06pm May 13, 2011 1:06pm
Quoting Dehyah
Here is the 15 min chart below.
nice trade!!! you go girl!
  • #2,517
  • May 13, 2011 1:08pm May 13, 2011 1:08pm
Quoting Dyekid217
Thanks for the advice. I don't plan on going live for probly another 3-4 months. In this time period I hope to get to 70-80% wins consistently. As stated in this thread it shouldn't be too hard to manage!
You can have a high percentage of wins, but the EXIT point is the key. For example, you can scalp the market 5-8 pips at a time but if you do or you don't close out that 20-30+ pip loser (hoping it turns around), then it does not matter how high of a percentage your winnings are.
  • #2,518
  • May 13, 2011 1:10pm May 13, 2011 1:10pm
Quoting GeraldFX
Compounding is good but for new people, pls do not do this until you know what you are doing. It may do you more harm than good if you are not conscious of what you are doing eg: when losing and throwing more lots to back losses because you were not aware Mr Greed was at the door.
huh?

when you win 10x move bar up when you loose 2x move bar down......not rocket science
  • #2,519
  • May 13, 2011 1:12pm May 13, 2011 1:12pm
Quoting SnapCracklePip
nice trade!!! you go girl!
Sorry,I am not a girl.
With God all things are possible.
  • #2,520
  • May 13, 2011 1:37pm May 13, 2011 1:37pm
Quoting Dehyah
Sorry,I am not a girl.
dammnit! i was so hopful you were lol
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