14 Year Old Forex Trader's Lessons

Yes, exactly!

was he trying to sell a product?

his system majigger he learnt?

He hadn't tried selling anything per say, but the moderators decided that the links he posted weren't appropriate, they sent the links to the Recycle Bin and made him a "commercial member".

Our moderators are good, fair people, so if they made this decision - he really deserved it.

ah..
okay.

you in for some trading or still in a break?

what also make them good people is the fact of them letting me stay a member despite of my age.
thanks moderators.

It is still a break!

Exactly!

prepared for a countermove on the eu.

Counter-trading=my style.

you got some balls kid lol

start thinking least possible risk.

in your chart you have an exhaustion of the impulse wave, at an are of previous perceived support, however take in to account that the market had priced in the twist but were hoping for a surprise from Heli, no surprise came.

to which the market reacted very decisively, although selling pressure has slowed down. take into account the low liquidity provided by the Asian markets.

dont listen to me though, listen to yourself, however,i will await topping of the corrective wave to short an initial position, trying to ride counter trend up, might be a little risky.

hi red, i just realized how sl's are very f-ing protective. especially in gold...

i was longing a scalp. it was going to reach $10 move, and i put SL at plus $1. and in a few seconds it hit the sl!

i will definitely use it. real useful if set properly.

hey buma wow.. 14 huh.. as long as you stick with it.. and dont let it dominate your world you will most likely be successful.

I started when I was 16 my family owned a brokerage firm up north.. I sat behind the computers watching the market all day... I got into it and started trading .. 9 years later I own my own private equity fund..

that being said there was times i was hung up and thought I was better than the market.. then it humbled me I lost money.. tried again failed.. tried again failed.. demo'd .. demo'd tried again failed.. absorbed as much information as I could from every angle.. books on top of books on top of books... I walk into most book stores look at the econ/finance shelf and think "really, nothing new yet?" ive read them all.. stacks of college finance books.. stacks of college accounting books.. stacks of economics books.. behavioral finance books.. the list goes on.. I gave up 4 times.. labeled myself as a failure threw in the towel.. only to come back 3 months later to give it "one last shot".. It was addictive.. it took over my life.. I lived to trade.. my personal success was tied to my trading success .. I felt like a failure when i lost.. a hero when i won.. and cried from my failure when I blew up...

but like I said a double major in finance/philosophy trading certs from nyif and 9 years of experience later....... only the cream of the crop the ones that can fight through the hard times make it.. good luck buddy remember your not good at playing the piano after a year.. or martial arts after 6 months.. or football after one season.. but keep going 5-9-12 years later youll be a force

@domino, I'll make sure i keep going. what i learned about books as well, is that words mean nothing. It's how your brain perceives the words. Does your brain also perceive it to be applied as something useful in the future? That's why most of us have a turning point in our lives, and one of them for me is when i blew that live account. The strange thing was that i cried before i lost. It was truly idiotic; Putting a sell order on support that held for a while. revenge trading. I honestly took 15 mins to put that market order: it was a complete fight between the emotional side of my brain and the left side of my brain. I also had some bad things going on that day and had a bet with the market, which obviously is stupid. I lost obviously. I crashed down and couldnt get off the bed for a complete day. No eating, no drinking. Every moment, i try to think that i must go on, i must persevere, but every time i say that im holding more tears, and everything tells me to give up. I don't know what happened, but i talked with lots of people: my cousin who is a stock trader, my 21 year old friend who is a pro-day trader in forex, GoldMan, Cloggie. They helped me persevere and put my brain in the right way of thinking.

I think i might not trade today or tommorow, despite big moves.

changing avatar for one last time.
i need something that represents me, and
here it is. big meaning behind the white rose for me.

bumapatria, I'm sure that you feel much better now.

You know what people say: "What doesn't kill you, makes you stronger".

Slept over a critical HOUR or of continued downtrend.

here are my EUR/USD sell and Dow jones short. late, but profit. the USDX made me exit, its at resistance. got enough of the twist for two days. as u can see the eu trade was too late..

good dow short. (pending orders are real useful.. forgot to put it on eur/usd)


next post will show my gold and oil shorts.

please refer to all 4 charts at the red price labels for entry and exit.

all good. just want to cash in something, after a siesta

what made me trade all this, was the correlation i noticed in the charts. oil and eu were pretty close. gold as swell. Dow was a no brainer.

good trades to everyone.

Total account growth: 34.87% account growth for total since the 14th of this month: 8 days. from $300-406.62

good thing i didnt trade it! I left it alone, it was still a bear market!

hey kiddo

i usually do not use stop losses, because i interactively manage my positions however i will not discourage your from doing so.

i will give you some advice on how to set PROBABLE, automatic limit orders (be it stop or take profit)

you see, you cant just take from the market as you wish, you have to know the probabilities, to find an area of realistic target, and to place your Stops, away from volatility you will need to find what is the capacity of the market for x amount of time you are planning to stay in.

example.
i use hourly measurements, trade of the 5 minute chart, but always in line with the daily movement.

to calculate your VAR (value at risk) and have realistic profit target area you need to now the average true range, and the current true range.

example, if you're trading the hourly movement from the five minute candle. first you need a reference point. which is the hourly open. then you need the average true range for last 24hrs, the euro has been moving at a range of 52 pips.

you never know which way it will go so here you know that your VAR is (52)(($)(pip movement))= how much you are risking. as your stops most likely should be placed away from whipsaw.

ans your tp is reasonable to say that it will reach its target at 52 pips tp since for the last 24h that is the average movement of the euro.

ATR is a powerful tool that gives you an idea of what is the probable amount of pips you can obtain from the market, and how much you is probable for the euro to move daily.

(always use your brain kiddo, dont go around following indicators blindly you need them to calculate probabilities for you, not to tell you when to trade) you see i gave you that advise yesterday because, fundamentally and technically my brain said that is a reasonable strategy for the current market condition, positioning yourself at least possible risk)

got it?

well said redlion

you dont need any fancy pants indicators, and that ichimoku cloud that gives me a headache lol

hey, this is a rule of thumb advise, and i want you to really memorize this.

IF YOU CANNOT CALCULATE YOUR INDICATOR BY HAND, AND DO NOT REALLY UNDERSTAND IT, YOU GOT NO BUSINESS USING IT.

there is no volume in forex because is decentralized OTC market, mainly traded interbank, so if you are going to use volume indies find out what type of volume, your broker, tick count, or futures?

a simple candle chart, with a SMA is a very powerful tool, if you are adding things to it, you need to know EXACTLY how these new players can contribute to the team.

example: my chart trade chart is a five minute chart, with 12 sma (calculating the mean, or fair market value for an hourly period, an SMA is calculated (12 periods)(five minute canlde)= (12)(5)=60 = one hour)

on my daily chart for bigger picture analysis, and terrain recognition ( fancy pants wording for trend lol) i got a Bollinger Band with a calculation of 22,2
because i want to know the monthly actual future volatility, (do not use the Bollinger Band like other people i do not predict price im no psychic, and i do not know where my shoes are most the time let a lone where the market will be) however Bollinger Bands calculate standard diviations and change in volatility reads for me, over a period of 22 (5.5) trading days in a week (4) weeks is= one month. plus the monthly average gives me great strategy ideas doing ranging markets, signals momentum change, and trend during bear and bull market, and gives me fair market value of the month. (the most important thing about a moving average is not the squiggly line but the AVERAGE PRICE itself, think about that. remember the quotes?

S/R and BB are the same however on calculating price deviations. S/R if you are using it dont think in terms of support and resistance (they dont exist, nothing supports price, nor stops it, for every time price "respects" these levels i can show you price breaking these levels. But is s/r not establishing a range? lowest and highest, plot your S/R not to historical levels but to give you an idea of actual current volatility, is price high or low according to the mean?. gives you less risky entrances

also candle sticks are very useful.
they can give you an idea of range, velocity, momentum, and conviction.

i'm afraid i might be giving you too much info too soon.

let me know if you need me to stop bombarding you with my views

wow redlion your not half frightening with that talk lol, you are correct though. i have all that in my head sort of keep it simple. i trade 2 ways one is a simple inside bar method and another way is just going off time without any indicators this is my best way as it sorts of sticks 2 fingers up at what the (pro) or wannabee traders say lol. So take heed people what redlion says has big credibility, happy trading happy days

@Redlion.

I think you guys have some misunderstanding of what im trying to achieve here. I am not here in the search of the perfect indicator. i am looking for what is suitable for my needs. I am usually having trouble entering into a trend. sniping on a pullback is what i try to find. everyone can spot a trend, but entering one with the lowest possible risk and VAR, is tougher when you got nothing to work with.

I am trying things out red, let me do this.

I hear you out man, hear me out on this one.

ill check out on calculations, just have some trust on newer perspectives. I believe im not an old-style kind of trader, im a hybrid. New and old. a mix. I believe its best that way.

i dont know if you get me, but many misunderstand this part of my journey.

I ll show you, if i was indi fancy, ill would have been using my old system that killed me before. on then next post. man, it was a real mess...

Thanks red, and i suck at moving averages. not filtered well with my needs