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Forex Trading & Secrets!?!

  • #41
  • Jun 24, 2011 11:47am Jun 24, 2011 11:47am
@Dvalera, there is a biochemical reason why cannabis may help you in your trading, look into it and perhaps you wont need to be high to trade in the future.
Searching for a cure...:nerd:
  • #42
  • Edited 3:01pm Jun 24, 2011 2:12pm | Edited 3:01pm
Quoting funlovinj
@Dvalera, there is a biochemical reason why cannabis may help you in your trading, look into it and perhaps you wont need to be high to trade in the future.
honestly thats a great idea , thank you
  • #43
  • Jun 24, 2011 6:12pm Jun 24, 2011 6:12pm
Wisdom...

Quoting 2+2=4ex
A major misconception that beginning traders have is that losing 2% on day one and winning 2% on day 2 brings them back to even. Wrong. You are still negative. This along with spread are two big hurdles to overcome.
  • #44
  • Jun 24, 2011 7:44pm Jun 24, 2011 7:44pm
Quoting Dvalera
i noticed that when i am stoned and i look at forex i find patterns pretty easy , i found one that has made me fixed income for the last 3 months but its not a forsure thing and its not a martingale . more fixed on taking trade on certain time and day of the month with fixed sl and tp ..
no lie i was stoned out of my mind but it works .. if any one is interested in contacting me and trading ideas for ideas and serious lmk . ps im only 20 and in college .
NOT INTERESTED IN PROVING MYSELF TO ANYONE JUST LOOKING TO TRADE IDEAS.
Funny you bring this up. Shortly after I turned a friend of mine on to trading, he cracked open an MT4 after getting stoned. He called me up and told me that he was certain that there was a "divine" order to the charts. Keeping in mind that this is probably one of the most scholastically inclined people I have ever known, I was intrigued to say the least. When I asked him to explain further, he couldn't exactly put it into words. I have yet to have him produce a workable strategy around his "findings"... but it definitely got me thinking.

I'm almost certain that it must be tied into fractals and fib ratios... everything else is.

Anyways, the conversation ended with him heading off to the convenience store to purchase some much needed munchies.
  • #45
  • Jun 24, 2011 9:31pm Jun 24, 2011 9:31pm
Quoting Dvalera
i noticed that when i am stoned and i look at forex i find patterns pretty easy , i found one that has made me fixed income for the last 3 months but its not a forsure thing and its not a martingale . more fixed on taking trade on certain time and day of the month with fixed sl and tp ..
no lie i was stoned out of my mind but it works .. if any one is interested in contacting me and trading ideas for ideas and serious lmk . ps im only 20 and in college .
NOT INTERESTED IN PROVING MYSELF TO ANYONE JUST LOOKING TO TRADE IDEAS.
Hmmmm.....interesting. I am fully convinced that in order to trade well you have to think outside the box. It is interesting how drugs help you do this. There are all sorts of ancient cultures that relied on drugs to think outside the box or to see things differently. In a freakish kinda way my most astounding discoveries about the market came after crippling losses. Over time, I felt like it was the FX gods toying with me by giving me just enough to justify moving forward AGAIN. It may have something to do with brain chemistry. For me, a major loss seems to crank up my brain, for others it may be drugs.
  • #46
  • Jun 24, 2011 9:49pm Jun 24, 2011 9:49pm
Never ever under-estimate the power of compounding.

I am in a venture of multiplying my account 5,000 times in 5 years. Have all the logic how it will happen. The most optimistic return is 100,000 times. Challange me, and I will give you all the details................. and I am not drunk but a CPA.
The Thief of Wall Street
  • #47
  • Jun 24, 2011 10:19pm Jun 24, 2011 10:19pm
Quoting Troikaone1
Hmmmm.....interesting. I am fully convinced that in order to trade well you have to think outside the box. It is interesting how drugs help you do this. There are all sorts of ancient cultures that relied on drugs to think outside the box or to see things differently. In a freakish kinda way my most astounding discoveries about the market came after crippling losses. Over time, I felt like it was the FX gods toying with me by giving me just enough to justify moving forward AGAIN. It may have something to do with brain chemistry. For me, a major...
I dont know about you guys..but in my younger days, even in college i was a stoner and a gamer. I used to get blazed out of my mind and play video games non stop! I always seemed to be better at the games when i was stoned! lol So i guess if your friend is a gamer that might be the reason...he sees a chart and sees it as a map some where and all he has to do is follow the legend to the blinking dots or whatever is on the map to get to where he needs to go to complete his mission lol.... If that makes sense. Being stoned and looking to make some extra income from home is how i got started in investing...
  • #48
  • Jun 24, 2011 10:23pm Jun 24, 2011 10:23pm
Quoting Chicky
Never ever under-estimate the power of compounding.

I am in a venture of multiplying my account 5,000 times in 5 years. Have all the logic how it will happen. The most optimistic return is 100,000 times. Challange me, and I will give you all the details................. and I am not drunk but a CPA.
Oh i beleive ya! Im right there with you just not that many times lol. i just wish more people could understand that to really compound your gains and get the profits or wealth they wish....they need to NOT withdraw but let the account grow.
  • #49
  • Jun 24, 2011 10:27pm Jun 24, 2011 10:27pm
Quoting Dredding82
I dont know about you guys..but in my younger days, even in college i was a stoner and a gamer. I used to get blazed out of my mind and play video games non stop! I always seemed to be better at the games when i was stoned! lol So i guess if your friend is a gamer that might be the reason...he sees a chart and sees it as a map some where and all he has to do is follow the legend to the blinking dots or whatever is on the map to get to where he needs to go to complete his mission lol.... If that makes sense.
I can relate very close to you. 25yo and play CoD every day on Mountain Dew and Cali green. lol

Every breakthrough I've had about trading successfully has come from the mindset associated with its use.
  • #50
  • Jun 24, 2011 10:27pm Jun 24, 2011 10:27pm
Quoting Dredding82
Oh i beleive ya! Im right there with you just not that many times lol. i just wish more people could understand that to really compound your gains and get the profits or wealth they wish....they need to NOT withdraw but let the account grow.
George Soros started with a plan of 5% per month. He never achieved this goal, but still he became George Soros in the next 20 years.
The Thief of Wall Street
  • #51
  • Jun 24, 2011 10:33pm Jun 24, 2011 10:33pm
+1 Chicky. The power of consistent compounding is unreal.
  • #52
  • Jun 24, 2011 10:49pm Jun 24, 2011 10:49pm
Quoting EmeraldEyes
+1 Chicky. The power of consistent compounding is unreal.
I agree. No one can consistently win but compounding has multiplier effect. The only good thing about this business (rest of the things sucks) is the ease of execution and power of compounding.

Think of several hundred thousands outstanding in Lawyer's fee alone at the rate of $300 an hour, just for day to day services mostly for property rental issues. Labor, health and IRS are additional headaches.
The Thief of Wall Street
  • #53
  • Jun 25, 2011 12:09am Jun 25, 2011 12:09am
On the topic of compounding.. One of my realizations (wouldnt call it a secret) has been to do away with any "TP" level. NO ONE knows if a trade is going to have 1:1 RRR or 1:100. Participation is all that's needed to accumulate expotential profits and ride with the trend as long as it lasts since too - no one can know when a top or bottom will be made.

Limit risk, never limit reward.
  • #54
  • Jun 25, 2011 12:19am Jun 25, 2011 12:19am
Quoting EmeraldEyes
I can relate very close to you. 25yo and play CoD every day on Mountain Dew and Cali green. lol
haha if only the patterns in fx were as easy as those in cod.. Cod is actually a pretty interesting metaphor.. it's equally as psychological in nature as trading, do you agree?

Quoting EmeraldEyes
Every breakthrough I've had about trading successfully has come from the mindset associated with its use.
that's awesome, I was looking the other day if anyone had any experiences trading on acid, but all I got in the search results was some kind of "acid indicators" lol..
  • #55
  • Jun 25, 2011 12:27am Jun 25, 2011 12:27am
Quoting Chicky
Never ever under-estimate the power of compounding.

I am in a venture of multiplying my account 5,000 times in 5 years. Have all the logic how it will happen. The most optimistic return is 100,000 times. Challange me, and I will give you all the details................. and I am not drunk but a CPA.
haha, 5,000 times?

you do know that doubling a 500 $ account 50 times already leads to 281 quadrillion $, right?
  • #56
  • Jun 25, 2011 12:49am Jun 25, 2011 12:49am
Quoting EmeraldEyes
On the topic of compounding.. One of my realizations (wouldnt call it a secret) has been to do away with any "TP" level. NO ONE knows if a trade is going to have 1:1 RRR or 1:100. Participation is all that's needed to accumulate expotential profits and ride with the trend as long as it lasts since too - no one can know when a top or bottom will be made.

Limit risk, never limit reward.
From one perspective you are right but not from my perspective.

It is true that when market moves, it ultimately takes one direction. A fair stopless is protection against market moving too far away in opposite direction beyond one's reach. Not placing a tp helps maximising gain. However, bigger moves have bigger (and sometimes abrupt) retraces, requiring power to sustain bigger drawdowns. Sometimes these drawdowns are so huge that if market does not move in the desired direction soon, one loses the account. If one tries to limit these drawdowns by restricting position size, the reward is invariably compromised. That means lower ROI over a certain period of time.

One option is to seek a good r/r i.e 1/10, 1/50 or 1/100, etc.. But this market is so volatile that it takes several attempts to catch such high r/r trade. And by the time we catch this trade, we have already lost the advantage. For example if we are looking for $100 loss or $1,000 profit, it may take 6 or 7 attempts to catch such move. By the time we catch this move we are already down by $600 or $700 for a trade that yields $1,000.

This past week, I went for a 500 to 700 pip move on EUR/USD. It went in my direction by 200 pips, moved stoploss to BE and waited for my 500 pip profit. What happened next ....... In single move it came down 200 pips to eat my sl that was 200 pips below. No loss on this particular trade, as it hit my sl at BE, but what about all the short-term opportunities lost by focusing on this particular trade and blocking my margin?

I don't see any advantage in playing longer term / swing trades. I want to convince myself that bigger moves are more profitable, but someone please convince me. Have also started a thread for this short-term/Long-term trading inviting discussion on this topic. So far not convinced that swing trading is more profitable in "Forex" market. Yes, equities and commodities are something different.
The Thief of Wall Street
  • #57
  • Jun 25, 2011 1:07am Jun 25, 2011 1:07am
Quoting Custos
haha, 5,000 times?

you do know that doubling a 500 $ account 50 times already leads to 281 quadrillion $, right?
No, I am not doubling my account. My calculation is based on 5,000 times over a five year period @ 15.25% per month.

$1 @ 15.25% per month = $5,000 in 60 months.

Month # Opening $ Profit % Closing $
1 1.00 15.25% 1.15
2 1.15 15.25% 1.33
3 1.33 15.25% 1.53
4 1.53 15.25% 1.76
5 1.76 15.25% 2.03
6 2.03 15.25% 2.34
7 2.34 15.25% 2.70
8 2.70 15.25% 3.11
9 3.11 15.25% 3.58
10 3.58 15.25% 4.13
11 4.13 15.25% 4.76
12 4.76 15.25% 5.49
13 5.49 15.25% 6.33
14 6.33 15.25% 7.30
15 7.30 15.25% 8.41
16 8.41 15.25% 9.69
17 9.69 15.25% 11.17
18 11.17 15.25% 12.87
19 12.87 15.25% 14.83
20 14.83 15.25% 17.09
21 17.09 15.25% 19.70
22 19.70 15.25% 22.70
23 22.70 15.25% 26.16
24 26.16 15.25% 30.15
25 30.15 15.25% 34.75
26 34.75 15.25% 40.05
27 40.05 15.25% 46.16
28 46.16 15.25% 53.20
29 53.20 15.25% 61.31
30 61.31 15.25% 70.66
31 70.66 15.25% 81.44
32 81.44 15.25% 93.86
33 93.86 15.25% 108.17
34 108.17 15.25% 124.67
35 124.67 15.25% 143.68
36 143.68 15.25% 165.59
37 165.59 15.25% 190.84
38 190.84 15.25% 219.94
39 219.94 15.25% 253.48
40 253.48 15.25% 292.14
41 292.14 15.25% 336.69
42 336.69 15.25% 388.04
43 388.04 15.25% 447.22
44 447.22 15.25% 515.42
45 515.42 15.25% 594.02
46 594.02 15.25% 684.61
47 684.61 15.25% 789.01
48 789.01 15.25% 909.33
49 909.33 15.25% 1,048.00
50 1,048.00 15.25% 1,207.82
51 1,207.82 15.25% 1,392.01
52 1,392.01 15.25% 1,604.29
53 1,604.29 15.25% 1,848.94
54 1,848.94 15.25% 2,130.90
55 2,130.90 15.25% 2,455.86
56 2,455.86 15.25% 2,830.38
57 2,830.38 15.25% 3,262.01
58 3,262.01 15.25% 3,759.47
59 3,759.47 15.25% 4,332.79
60 4,332.79 15.25% 4,993.54
The Thief of Wall Street
  • #58
  • Jun 25, 2011 1:25am Jun 25, 2011 1:25am
Hey Chicky,

Quoting Chicky
It is true that when market moves, it ultimately takes one direction. A fair stopless is protection against market moving too far away in opposite direction beyond one's reach
. Agreed. A well placed stop should be hit when your analysis/system/approach was wrong, or protect one from adverse movements produced by unforseeable circumstances.

Quote
Not placing a tp helps maximising gain. However, bigger moves have bigger (and sometimes abrupt) retraces, requiring power to sustain bigger drawdowns. Sometimes these drawdowns are so huge that if market does not move in the desired direction soon, one loses the account. If one tries to limit these drawdowns by restricting position size, the reward is invariably compromised. That means lower ROI over a certain period of time.
I agree with you here that not placing a TP helps to maximise gains. However, capitalizing on longer term movements does not have to involve reducing one's position size, increasing one's stop size, or having to suffer through large drawdowns. If one were to come to the conclusion that the current position they have initiated had potential to survive for the long-term, all they have to do is find a means of taking their risk off the table; move to BE, partial profits and leaving a portion of the position to run, etc.

Quote
One option is to seek a good r/r i.e 1/10, 1/50 or 1/100, etc.. But this market is so volatile that it takes several attempts to catch such high r/r trade. And by the time we catch this trade, we have already lost the advantage. For example if we are looking for $100 loss or $1,000 profit, it may take 6 or 7 attempts to catch such move. By the time we catch this move we are already down by $600 or $700 for a trade that yields $1,000.
With a marginal system, I'm pretty sure you'd be able to get risk off the table in 50% of the cases, and these losses would not affect your bottom line. Add in a system with an edge to increase the percentage of riskless trades you can produce, and in some instances it is possible to attain those outsized 1:10 ratios while suffering very little in attempts required.

Quote
This past week, I went for a 500 to 700 pip move on EUR/USD. It went in my direction by 200 pips, moved stoploss to BE and waited for my 500 pip profit. What happened next ....... In single move it came down 200 pips to eat my sl that was 200 pips below. No loss on this particular trade, as it hit my sl at BE, but what about all the short-term opportunities lost by focusing on this particular trade and blocking my margin?
The problem is that the move from short term trading to swing and position trading is not for everyone, nor is it something that can be attempted flat off the back. It requires a great deal of patience and resilience to be able to accept the fact that you are sacrificing near-term profit for the benefit of greater profits in the long run. It would seem that at least you have not transitioned into such a perspective, if the 200 pips lost, risk-free does not justify the opportunity of shorter term trades taken with a fixed take profit. Not every trade is meant to be a stab at longer term growth, and with experience, those opportunities become easier to spot, and can healthily augment one's bottom line. I too had a position initiated in EUR/USD anticipating some longer term gains and a 175 pip swing took it out, but I didn't even think twice about lost opportunities, because when you experience your first 1000 pip position, a 175 pip swing becomes a much easier BE to take.

Quote
I don't see any advantage in playing longer term / swing trades. I want to convince myself that bigger moves are more profitable, but someone please convince me. Have also started a thread for this short-term/Long-term trading inviting discussion on this topic. So far not convinced that swing trading is more profitable in "Forex" market. Yes, equities and commodities are something different.
Devote some time to weighing the pros and cons of both approaches. If it truly does not resonate with you, it makes very little sense to attempt to be, what psychologically you are not. I don't really see commodities and equities as any different from a swing trading point of view compared to Forex. Whatever it is you decide to do, ensure it works for you.

Regards,
xXTrizzleXx
  • #59
  • Jun 25, 2011 1:29am Jun 25, 2011 1:29am
Quoting Chicky
No, I am not doubling my account. My calculation is based on 5,000 times over a five year period @ 15.25% per month.

$1 @ 15.25% per month = $5,000 in 60 months.

Month # Opening $ Profit % Closing $
1 1.00 15.25% 1.15
2[size=2][font=Arial]...
okay, then it's more realistic.
  • #60
  • Jun 25, 2011 1:40am Jun 25, 2011 1:40am
Quoting xXTrizzleXx
Hey Chicky,

. Agreed. A well placed stop should be hit when your analysis/system/approach was wrong, or protect one from adverse movements produced by unforseeable circumstances.

I agree with you here that not placing a TP helps to maximise gains. However, capitalizing on longer term movements does not have to involve reducing one's position size, increasing one's stop size, or having to suffer through large drawdowns. If one were to come to the conclusion that the current position they have initiated had potential to survive for the...
Thanks Trizzle,

Your points are really appreciated.

Last week was not as bad as I mentioned earlier, though it hit my sl at BE for one trade. My account showed 80% net profit this week following Jesse Livermore's method of increasing lot sizes when it breaks in your desired direction and then wait for the line of least resistance to define itself once again. (Never wanted to mention this because new traders may get wrong ideas). However, it was pure luck. When account showed 101% profit at one point took profit and reduced position size many times. Lost 21% to net 80%. If had sit tight, would have given all profits back to market.

On the other hand, would have easily netted about 15% to 20% following my short term method.

Not considering this pure luck, if I compare both these methods, find short term more reliable than longer term. Still working to find a solution.

Thanks again for your input.
The Thief of Wall Street
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