AUDUSD, Daily, 2011 July 29
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Trendlines with Heiken Ashi and Stochs System
- #41
- Edited 7:03pm Jul 28, 2011 6:52pm | Edited 7:03pm
- Joined Nov 2009 | Status: Trader | 27,245 Posts
- #42
- Edited 7:08pm Jul 28, 2011 6:56pm | Edited 7:08pm
- Joined Nov 2009 | Status: Trader | 27,245 Posts
- #44
- Jul 28, 2011 10:46pm Jul 28, 2011 10:46pm
- | Commercial User | Joined May 2011 | 3,012 Posts
Thanks Hugh, now I learned a trick and that is to make a template of my charts and save them for later.
Are you working full time?
Me, I am a full time pensioner who can't sleep due to ± 40 years of shift work.
Plenty pips to all
John from Durban
- #52
- Jul 30, 2011 1:56pm Jul 30, 2011 1:56pm
- | Commercial User | Joined May 2011 | 3,012 Posts
Some things to think about on the weekend...
If you are reading this and you are a new trader or not making money yet here are a few ideas to ponder. I've probably said some of this before and most of it can definitely be found already on other threads, particularly some famous and long standing ones. I'm not going to apologise for repeating this and I am in no way claiming these ideas as my own but I figure the more times you read the truth you don't want to hear from different sources maybe the quicker you will believe it and put it into practice?
1) Trading on demo
I used to be dead against trading on demo because it doesn't allow for the psychological effect of putting your own hard earned money at risk. The fact is however that if you can't make money on demo then you can't make money live. I understand the argument that unless the monetary sums are meaningful you can't take it seriously, etc but think long and hard about it, if you are a new trader your first goal is to make money and lots of it. The trouble is that if you are a new trader then you have next to no chance of making money anyway. Unless you have intensive mentoring by someone that really knows what they are doing (and still people fail at trading even with that advantage) then you are unlikely to be able to trade correctly and make money consistently so why throw your money down the drain by trading live from the start? Honestly, seriously, please... Try your hand at trading on a demo account first. Your goal in the first year of trying to trade should be just to get the mechanics right, learn when, why and how to take a trade and when, why and how to exit. Once you have been doing this correctly for a period of time and you feel you can do it live then give it a try, just keep your account size and trade size small. I understand that some more experienced traders might read this and say it's rubbish and they made money from day one and demo is a waste of time but for the majority of traders the only way to learn is to lose money live and then go back to demo until they get it right. Wouldn't it be better if new traders knew to start with demo from the start and only go live once they are breakeven or better traders?
2) Leverage
I know I've mentioned this before on my previous thread (link on post 1) but it's worth mentioning again. If you do what I did and set your max leverage to 500 to 1 "just in case" then you are asking for trouble. Take the time to work out just how much leverage you need in order to be able to have 2 or 3 trades open with 1 or 2% of your account and set your leverage accordingly.
3) Systems
The more I trade the more I realise that it's not about the entry it's about the management. By far the most visited area of this forum is the trading systems section and yet more often than not the focus of the systems on offer is the entry. Trade management and position sizing is usually an afterthought at best (not knocking anyone, I've got this thread there too after all). Let's be absolutely frank, you CAN just look at a chart and say, "I think the price is going to go down", sell it, put a stop loss on and make money. The key is the old phrase, "cut your losses short and let your winners run". If you open a trade and it hits your stop for -20 pips then you have lost 1% of your account or whatever. If it goes your way then when do you close it? That's by far the more important question than when should you enter. Seriously, you can just draw a few trendlines, determine the trend, jump in when price looks like moving away from the trendline and hold the trade until it starts moving against you. So why be so worried about where you enter? Just trade with the trend and enjoy the ride. Risk/reward of 2, 3 or 4 to 1 is easily possible with breakout strategies (or most others) and at 3 to 1 you only have to be right a quarter of the time to break even. Quit worrying about the entry and learn to hold a trade longer.
4) Position sizing
Once you've gone live and you're feeling the emotional aspect of trading you will know what this is about. It's true that you do have to trade with a risk level that makes you feel as though your trading is worthwhile but unless you are completely comfortable with losing the amount you have risked then you will be more prone to closing trades early or moving to breakeven too soon. I can lose 1 or 2% of my account and not feel too bad because I know it is only a matter of time until the trade that makes me 5 or 6% of my account comes along. If you are trading with too big a position size and are not comfortable with losing that pound or dollar (or whatever) amount then you will be too emotionally tight to trade properly.
5) Learning to take a loss
Related to the above. When I first started trading I couldn't take losses. It's one of the biggest newbie mistakes, either not using a stop loss because it's only a losing trade once you've closed it
or possibly worse, moving the stop loss when the price got near (again). After I had experienced a loss (finally) I used to go into a frenzy of emotions and not be able to trade properly for the rest of the day. I lost a lot of money on revenge trades. These days a loss is a loss, it's just a part of trading and I never worry too much because I never lose too much of my balance on one trade (see above).
6) Patience/Little and Often
Patience used to be a big problem of mine. I just couldn't wait to be in a trade because you have to be in a trade to make money, right? Wrong! Or right actually but more importantly you have to be in the right trade. Waiting for the right trade can take time but one thing is for sure, taking trades out of impatience will cost you money in the long term. The other aspect of patience is taking small wins often. I've lost count of the amount of times I've deposited 100 or 200 pounds and raced it up to 1000 pounds in a day (I was an awesome trader as long as it went my way) and then lost it all just as quickly. It is simply not sustainable to trade in this way with high leverage and holding on to bad trades until they come good. What I have learnt is that little and often is the best way. I'd rather risk 1% and make a steady stream of 2 or 3% gains than risk 50% (or often the whole balance) in the hope that it goes my way in the infamous s**t or bust method.
That has to be enough for now surely? I've enjoyed putting these ideas across and I hope you've enjoyed reading it? If you have any question then please ask.
If you are reading this and you are a new trader or not making money yet here are a few ideas to ponder. I've probably said some of this before and most of it can definitely be found already on other threads, particularly some famous and long standing ones. I'm not going to apologise for repeating this and I am in no way claiming these ideas as my own but I figure the more times you read the truth you don't want to hear from different sources maybe the quicker you will believe it and put it into practice?
1) Trading on demo
I used to be dead against trading on demo because it doesn't allow for the psychological effect of putting your own hard earned money at risk. The fact is however that if you can't make money on demo then you can't make money live. I understand the argument that unless the monetary sums are meaningful you can't take it seriously, etc but think long and hard about it, if you are a new trader your first goal is to make money and lots of it. The trouble is that if you are a new trader then you have next to no chance of making money anyway. Unless you have intensive mentoring by someone that really knows what they are doing (and still people fail at trading even with that advantage) then you are unlikely to be able to trade correctly and make money consistently so why throw your money down the drain by trading live from the start? Honestly, seriously, please... Try your hand at trading on a demo account first. Your goal in the first year of trying to trade should be just to get the mechanics right, learn when, why and how to take a trade and when, why and how to exit. Once you have been doing this correctly for a period of time and you feel you can do it live then give it a try, just keep your account size and trade size small. I understand that some more experienced traders might read this and say it's rubbish and they made money from day one and demo is a waste of time but for the majority of traders the only way to learn is to lose money live and then go back to demo until they get it right. Wouldn't it be better if new traders knew to start with demo from the start and only go live once they are breakeven or better traders?
2) Leverage
I know I've mentioned this before on my previous thread (link on post 1) but it's worth mentioning again. If you do what I did and set your max leverage to 500 to 1 "just in case" then you are asking for trouble. Take the time to work out just how much leverage you need in order to be able to have 2 or 3 trades open with 1 or 2% of your account and set your leverage accordingly.
3) Systems
The more I trade the more I realise that it's not about the entry it's about the management. By far the most visited area of this forum is the trading systems section and yet more often than not the focus of the systems on offer is the entry. Trade management and position sizing is usually an afterthought at best (not knocking anyone, I've got this thread there too after all). Let's be absolutely frank, you CAN just look at a chart and say, "I think the price is going to go down", sell it, put a stop loss on and make money. The key is the old phrase, "cut your losses short and let your winners run". If you open a trade and it hits your stop for -20 pips then you have lost 1% of your account or whatever. If it goes your way then when do you close it? That's by far the more important question than when should you enter. Seriously, you can just draw a few trendlines, determine the trend, jump in when price looks like moving away from the trendline and hold the trade until it starts moving against you. So why be so worried about where you enter? Just trade with the trend and enjoy the ride. Risk/reward of 2, 3 or 4 to 1 is easily possible with breakout strategies (or most others) and at 3 to 1 you only have to be right a quarter of the time to break even. Quit worrying about the entry and learn to hold a trade longer.
4) Position sizing
Once you've gone live and you're feeling the emotional aspect of trading you will know what this is about. It's true that you do have to trade with a risk level that makes you feel as though your trading is worthwhile but unless you are completely comfortable with losing the amount you have risked then you will be more prone to closing trades early or moving to breakeven too soon. I can lose 1 or 2% of my account and not feel too bad because I know it is only a matter of time until the trade that makes me 5 or 6% of my account comes along. If you are trading with too big a position size and are not comfortable with losing that pound or dollar (or whatever) amount then you will be too emotionally tight to trade properly.
5) Learning to take a loss
Related to the above. When I first started trading I couldn't take losses. It's one of the biggest newbie mistakes, either not using a stop loss because it's only a losing trade once you've closed it
or possibly worse, moving the stop loss when the price got near (again). After I had experienced a loss (finally) I used to go into a frenzy of emotions and not be able to trade properly for the rest of the day. I lost a lot of money on revenge trades. These days a loss is a loss, it's just a part of trading and I never worry too much because I never lose too much of my balance on one trade (see above).6) Patience/Little and Often
Patience used to be a big problem of mine. I just couldn't wait to be in a trade because you have to be in a trade to make money, right? Wrong! Or right actually but more importantly you have to be in the right trade. Waiting for the right trade can take time but one thing is for sure, taking trades out of impatience will cost you money in the long term. The other aspect of patience is taking small wins often. I've lost count of the amount of times I've deposited 100 or 200 pounds and raced it up to 1000 pounds in a day (I was an awesome trader as long as it went my way) and then lost it all just as quickly. It is simply not sustainable to trade in this way with high leverage and holding on to bad trades until they come good. What I have learnt is that little and often is the best way. I'd rather risk 1% and make a steady stream of 2 or 3% gains than risk 50% (or often the whole balance) in the hope that it goes my way in the infamous s**t or bust method.
That has to be enough for now surely? I've enjoyed putting these ideas across and I hope you've enjoyed reading it? If you have any question then please ask.
- #60
- Jul 30, 2011 5:10pm Jul 30, 2011 5:10pm
- Joined Nov 2009 | Status: Trader | 27,245 Posts
This system is one of the simplest way of trading with at the end of the month/year a good profit.
To all traders I want to say is accept losses from time to time and start trading by weekly or Daily systems,
unexperienced traders or beginners will loose a lot of money when they trade on short timeframes and to switch from system to system..
This system works well for me the last years with profits from 20-65% a year.
Compare that with youre credit on youre bank... and you are a more succesfull then managers.
Dutchsignals
My sentiments exactly!
20-65/100% a year could be easily earn with this strategy when using it in a correct way (e.g. money management, leverage factor, e.g. #17, #52, #58 , p.1 is also clear) like Hugh has described above.
FXcube
.