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14 Year Old Forex Trader's Lessons

  • #1,861
  • Oct 9, 2011 2:55pm Oct 9, 2011 2:55pm
I saw some talk of indicators a few pages back on this thread.
From my standpoint i see them as mental crutches for weak minded traders who need reinforcement to take a position.

Price action is the only thing you need. It's the only thing I've used since i started doing this professionally for the past year.

(That being said, if something is making you money dont stop doing what you're doing.)
  • #1,862
  • Oct 9, 2011 2:59pm Oct 9, 2011 2:59pm
Quoting the redlion
JOB NUMBER ONE IS PROTECT YOUR CAPITAL, if price goes against you 1000 pips in a black swan event, using low leverage, you can still salvage that position. Use your leverage to maximize your profits as the market continues to go your way.



the trick is to control your risk at all times
  • #1,863
  • Oct 9, 2011 3:35pm Oct 9, 2011 3:35pm
stopping by to say my compliment for a young trader
  • #1,864
  • Oct 9, 2011 5:04pm Oct 9, 2011 5:04pm
Quoting the redlion
you already know my take on it

with a $5,000 account i believe your position should be $5,000 units of currency at least on the initial scout. I believe over leveraging gives you little options.

if you enter a position of 40,000 units of currency with a 5,000 account that is 4.00 per pip movement, in case of being wrong you have little choice but to put a pre determined stop loss, and bite the bullet every time, when price goes against you.

you see it is extremely hard to be precise and accurate 100% of the time, because even when you think diminishing...
well red, i perform rescues with mostly 0.02-0.03 lots if i am trading a 0.01 lot. And 1:1 will only alllow me to trade THAT POSITION ITSELF WITHTHE SAME LOT SIZE. I find that at a large disadvantage. And the only thing above 1:1 my broker provides is 1:10. I think i am going with that. I will be very disciplined with the position sizes i use, regarding i can actually trade standard, which would just kill me then and there. I will only use 0.01 for standard, till i feel comfortable, and stable account growth, then 0.02, and so on. If a 0.01 trade is not going right, i usually do a rescue on another pair with 1 lot size higher. Or just close it, and when a larger opportunity comes its way, i will trade it a larger lot size between that range 0.01-0.03.

Red, you told me about rescues, and i was like wtf is a rescue. You gave me the basics, so i began implementing the same sort of idea.

My winning ratio exactly is only 67% on profit trades. everytime we talk on skype, u told me that the trick is to manipulate the risk right? i minimized the risk so on losing trades the largest loss was not as big as the average win. And this is why i never 'lose'. look at the quotes of course i lose. But im talking long run. Rescues. Thats why my account kept increasing. Its not a spike up on the graph, its a line up, a small retracement, then up, etc.

Now, i dont mean i wont be hit by a black swan, (god forbid), I just say that i am different red. Im not going to MAXIMIZE my risk. That already sounds risky. I minimize risk with potential high reward, with DISCIPLINE about lot sizes. Thats why you see me using trailing stops and stop losses at +1, or whatever. Since i'll use 1:10, Im not going to take an 'advantage' of the power possible with the leverage. its not an advantage, it is disadvantageous for now. Its for the sole element of rescuing a losing trade. Covering that loss. Covering the hole.

Red, trust me, i will be good with 1:10. I dont have 1:2 with my broker, or 1:3, which is my actual need. Trust me on this one. 1:1 is still too dangerous.

I believe im ready to hunt next month. I am not rushing it. I wasnt hunting last time. I WAS BEING HUNTED.
I realize the difference. Come on, dude...
Have I got something on my face, SOLDIER?
  • #1,865
  • Oct 9, 2011 5:11pm Oct 9, 2011 5:11pm
Buma

Thanks for your vouch and words. I am touched. Still lot to learn.

Your mate.
mla
"The Heart is the hub of all dances; go there and chill out"
  • #1,866
  • Oct 9, 2011 5:13pm Oct 9, 2011 5:13pm
Quoting bumapatria
well red, i perform rescues with mostly 0.02-0.03 lots if i am trading a 0.01 lot. And 1:1 will only alllow me to trade THAT POSITION ITSELF WITHTHE SAME LOT SIZE. I find that at a large disadvantage. And the only thing above 1:1 my broker provides is 1:10. I think i am going with that. I will be very disciplined with the position sizes i use, regarding i can actually trade standard, which would just kill me then and there. I will only use 0.01 for standard, till i feel comfortable, and stable account growth, then 0.02, and so on. If a 0.01 trade...
you miss understood me and i miss understood you. Turns out we both have the same idea i did not say to limit your Leverage on your broker per say, i mean 1:50 is good.

what i meant is limit your risk exposure and leverage size when trading that you start off with 1:1 1000 with 0.01 lots controling 1000 units of currency.

miss understanding, i mean how else can you rescue if you limit your amunition, but always know where your threshold is and do not let your pride hold a bad position or continue to snowball into a blown account, rescues are to be done, with care withing your risk parameters.
AVT INVENIAM VIAM AVT FACIAM
  • #1,867
  • Oct 9, 2011 5:15pm Oct 9, 2011 5:15pm
Quoting mla
Buma

Thanks for your vouch and words. I am touched. Still lot to learn.

Your mate.
mla
As to the other great traders on this thread, it is long overdue. Way too long. I didnt notice wisdom at first, seeing you scalp like every other dude at the eur/usd thread, but gradually i see that there is a huge difference in style, perspective, maturity, and passion for it that is just not found in others.

You deserved it man.
Have I got something on my face, SOLDIER?
  • #1,868
  • Oct 9, 2011 5:17pm Oct 9, 2011 5:17pm
Hi everyone hope your fine, hey Buma how did your trades do over the weekend i sort of half remember you said about doing a trade. i agree with red about not leveraging i only ever do 1 -1 i will up my stakes do extra lots compound etc
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #1,869
  • Oct 9, 2011 5:19pm Oct 9, 2011 5:19pm
Quoting the redlion
you miss understood me and i miss understood you. Turns out we both have the same idea i did not say to limit your Leverage on your broker per say, i mean 1:50 is good.

what i meant is limit your risk exposure and leverage size when trading that you start off with 1:1 1000 with 0.01 lots controling 1000 units of currency.

miss understanding, i mean how else can you rescue if you limit your amunition, but always know where your threshold is and do not let your pride hold a bad position or continue to snowball into a blown account, rescues are...
2 smart guys can understand each other, and 2 smart guys can misunderstand each other cause they are way too smart.
Of course red, will do. I'll hunt with the smallest micro lot available $0.10 per pip on eur/usd for example. Gold and silver usually give me the obvious trades that give me the potential rescues.
Of course stability is first as u mention. Im walking on a plank in which i can walk the other side with glory, or fall in a long drop who knows i'll live the fall.

lol, great minds think alike they say? we just did, just in different words.
Have I got something on my face, SOLDIER?
  • #1,870
  • Oct 9, 2011 5:24pm Oct 9, 2011 5:24pm
Quoting billytt
Hi everyone hope your fine, hey Buma how did your trades do over the weekend i sort of half remember you said about doing a trade. i agree with red about not leveraging i only ever do 1 -1 i will up my stakes do extra lots compound etc
its all fine. Im going to close it though.


it gapped up 30 pips against me, and im still fine with 100.
will close if it hits 50 pips profit for me aka im not in the right place atm.

asian session, i wont be trading much, people would be buying mostly, for easy gains on their hands, and playing tricks here and there since its easy to do so on low volatility.

Im happy about the hunt. very actually. precision is hit
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Have I got something on my face, SOLDIER?
  • #1,871
  • Oct 9, 2011 5:43pm Oct 9, 2011 5:43pm
due to the fluctuations i have observed from this session, i feel a long would be more 'safe' than a short. Spotter caught target, but sniper shot a little late.

lets see whats up there for me.

I now will study

leave the trade alone with pre-thought-up and knowledge of the value at risk, possible reward, and its a smallest lot so i am safe. I can go rescue later... i already gained my share of last week from that silver short, gold short, and oil.

if i couldve put a limit...gr....

red told me m5 was not noise. will see now. Bounce off supply and gann line aka REJECTION. for now... and its asian session wtf do i expect if i win or lose.
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Have I got something on my face, SOLDIER?
  • #1,872
  • Oct 9, 2011 5:54pm Oct 9, 2011 5:54pm
just to mention it but you keep mentioning RESCUEING quite often thats not the way to trade you'll know what i mean when you do it for real. Your head will be freaked out once your bank starts dwindling and you might start doing stupid things and i hope this will never happen. Someone mentioned the blackswan, it does happen a lot and i honestly think the guys upstairs do it intentionally to kill the little traders
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #1,873
  • Oct 9, 2011 5:55pm Oct 9, 2011 5:55pm
Dow jones perfect short opp?
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Have I got something on my face, SOLDIER?
  • #1,874
  • Oct 9, 2011 5:56pm Oct 9, 2011 5:56pm
This is my preparation work for the day.

I also draw trend lines on weekly, daily, 4 hours and 1 hour in different colours.

I have a few set up that I am looking for: one for bounces, one for break out (5m) and one when the movement already started, I switch to 1m and do the opposite of the obvious.

I do not take those set up unconditionally, but only if I feel traders are trapped and I take the opposite direction.

I also take position when not set up occurs but traders are trapped.

To be able to see and feel I need to focus on every candle.

Best time to focus for me is just before europe opening.

I think I have received to many vouch lately and I am not sure if I deserve them.

So I dedicate this post to the ones that vouch me with gratitude.

Cheers
mla
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"The Heart is the hub of all dances; go there and chill out"
  • #1,875
  • Oct 9, 2011 6:05pm Oct 9, 2011 6:05pm
take care guys its midnight here and i'm going to have an early one i got almost 50 pips on g/u and silver lol and thats enough for me at the moment. happy trading happy days
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #1,876
  • Oct 9, 2011 6:07pm Oct 9, 2011 6:07pm
Quoting mla
This is my preparation work for the day.

I also draw trend lines on weekly, daily, 4 hours and 1 hour in different colours.

I have a few set up that I am looking for: one for bounces, one for break out (5m) and one when the movement already started, I switch to 1m and do the opposite of the obvious.

I do not take those set up unconditionally, but only if I feel traders are trapped and I take the opposite direction.

I also take position when not set up occurs but traders are trapped.

To be able to see and feel I need to focus on every candle.

Best...
You deserve my vouch. No doubt. that box holds i say we trade the accumulation "carefuly" so that whenever it breaks out on either side we got a position from the right side... ah fuck me.. here's a picture i think i messed up saying that. One needs to watch out for other stuff as well, price's feeling. Does price 'feel' like it wants to go higher or lower? are there other stuff such as divergence? What does this level of price say about price? do people look to buy or sell at this area?
Attached Image
Have I got something on my face, SOLDIER?
  • #1,877
  • Oct 9, 2011 6:09pm Oct 9, 2011 6:09pm
im going to eat b-fast first dudes.

so be right back,
enjoy the day, mla its morning for us,

and nighters, good night,
sleep tight, dont let ur broker come up and bite
coz im sure they realy want to.. given u gave them ur ADDRESS..

why else u think brokers need ur address?

we're on a long winning streak lol.
Have I got something on my face, SOLDIER?
  • #1,878
  • Oct 9, 2011 6:18pm Oct 9, 2011 6:18pm
if only i had a limit order over weekend..
how overly risky is that...

well here's the update on the gold long.
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  • #1,879
  • Oct 9, 2011 6:33pm Oct 9, 2011 6:33pm
Closed long... good 200 pips on the morning on gold. Tiny earning, but good start.




i better do good, im dedicating this week lol.
Have I got something on my face, SOLDIER?
  • #1,880
  • Oct 9, 2011 6:56pm Oct 9, 2011 6:56pm
Long on the euro against the dollar. Potential, potential setup...

for a scalp lol.

anyways its low-risk to me and potential reward.
explanation on chart as usual.
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Have I got something on my face, SOLDIER?
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