Trading Made Simple

When u look into correlation it all just comes down to Money Management. Sometimes it feels like a missed opportunity/profit when u look at a pair and u didnt buy/sell it when the signal was there. But before one starts to accept that there will be lots of missed opportunities out there, one will not succeed i think. There will always be a trade and there will always be missed signals.

How many pairs do u really wanna trade. If u keep it simple, then just trade EURUSD, it is the dominator, and it will keep your mind focused. If u then feel like some more, then move on to 1-4 of the other BIG pairs, but nothing more in my opinion.

It looks good on the Account when u trade many pairs, but when it turns around and make losses, which it eventually will from time to time, then the losses will be very big. Take EURUSD & USDCHF, they are above 90% in correlation. So if u buy EURUSD and sell USDCHF, it will be the same as going double in one of the pairs.

If u dont feel like one pair is giving u enough pips then just increase the lot size according to your risk..BUT only according to your risk defined by your Money Management.

If cash is king, Money Management must be its twin brother.

Your very last sentence here is the essence of trading...its not just about entering a trade..its equally important to stay out of them.....enter if it meets your criteria 100%...NOTHING LESS.....and if you are having dinner or busy with the kids or whatever DONT TRADE....there are trading opportunities every day every few hours depending on the chart you use....stick to your plan. Practice entering ONLY the 100% setups and only do it when you have time to sit down, think clearly and assess fully....if you are 5 minutes too late....DONT TAKE IT....if you are 5 seconds too late....dont take it....there will be others...let them come to you.

Pretty good advice, problem with this method as pointed out previously, entry is very subjective, it is not a mechanical system, therefore you never really know which are the 100% setups until after the dust settles, see this chart, 3 crosses.

The good thing is, Mark Douglas says: You don't need to what what is going to happen next to make money!

Personally, I like to enter on stops, either buy or sell, so price is moving the way I want the trade to go. Therefore, saying don't enter if you are late, really depends on your style.

If the trade is moving your way, you can find an entry, your RISK can be controlled by the POSITION SIZE - you will notice in the demo example below, the trade is 0.88 Lots, this is adjusted to maintain 2% risk of the account balance according to the distance to the STOP LOSS

Welcome bullseye

We are glad to have you join us and hope you stay with us for a very long time and have many successful TMS trades.

The chart you have posted: (personal opinions)
1. I wouldnt enter that trade because as chust said the candles are consolidating.
2. If you look at the daily and 4H chart you will notice a very bullish trend.
Look at the TDI on the daily chart notice the gap between the red line and the green line it wide apart which tells me there COULD be more bulls coming out to play. Then you look at the 4H chart the TDI is touching the 68 zone, there could be a bounce allowing TDI to go into the 68 zone.
I noticed one thing is that when in an uptrend the TDI kinda goes deep into the 68 zone on the 4H and 1H charts.
When in a down trend the TDI goes deep into the 32 zone on the 1H and 4H charts. This wont happen all the time but if you back test you will know what im talking about.
So if daily and 4H looks bullish I would only look to go long on the 1H chart (safe and conservative way), you could go short but the pips you gain will be less so TP must be small or you would end up losing that trade if TP is big. And you do the opposite if the daily and 4H chart trend is bearish.
Go with the trend, the trend is your friend.

hi all,
first post here
pardon my ignorance here but what trading software is everyone using to use this system?

there are different kinds of trading software. there's mt4 and a lot more. I use live signals as a consideration in decisions in trading.

Hi, welcome, but you are about 12,000+ posts late to the party . The charting software typically is MT4 (Metatrader) that comes with your broker account, but I suppose you can use any brokers charting package. I am sure you will have a lot of questions and they have all been asked and answered in the first pages of this thread. Be sure to go back and read from the beginning to get up to speed....Best of luck....

The indicators, templates etc posted are MT4 based.

Load any MT4 platform and from there you load your indicators as was explained at the beginning of the thread, which i bet you didnt read yet and already want to post.

Yes, I have about 11,000 to go...

Thanks X-Man! Very helpful explanations

I am very happy to be here in this thread

just earned about 70pips in ~8min.

ps its on demo acc. very soon i ll go on live acc

Last nights results using this system on demo account, i woke up very happy! Thanks to everyone on this thread.

Guys Im about to go out but I couldnt leave before sharing this (also had to move my stops to profit so I let let these 5 trades run)

Ive been taking some bad trades lately and getting some heat for them. I think Ive been set on track by you guys.
Piprac pm'd me with great advice, telling basically to get back to basics and reread this thread. At least the more important parts. Also he pointed me to the pdf file, which I already had downloaded but didnt open cos I was busy with the thread.
Guys that pdf is awesome. It really sifts out alot of the noise.
Anyways it was last night at about 2am that I decided to clear my head and do what you guys have been telling me to.
I cleared all my charts from clutter, put up my template for TMS/H4 charts. Closed a few of the pairs, like the exotics with high spread, and stuck to the rules.
I scanned through 12 charts and found many "almost" setups, I'm sure you all know what I mean by "almost" setups, and ill post some examples later.
Thing is, I didn't jump the gun.
Also, I didn't take the trades that had been a perfect setup a few hours ago from fear of missing out, which I have been doing.
I marked the charts with v lines where I wanted to get my attention for 3am candle, left the pc, went to get some sleep, and set my alarm for next candle, which is 3am my time.
Of course I didnt fall asleep as it was alread 2:30, but nevertheless, I didnt come back to peek till 2:55.
When I came back I saw 5 very clear and obvious setups laid out in front of me. E/U,G/U,U/Cad,E/J, and Cad/J.
I was a good boy and did mm to come up with sl's (one mistake) and they all fit me as I managed to clear the previous swing h/l's. Zoomed out (but in same H4 tf) to look for obvious s/r and set tp's accordingly.
I then went to bed with alarm set for 7am, next candle open.
At 7 I came back only to see most of my trades in had gone the wrong way. Actually all. Not one had been in the green.
I was frustrated and starting looking for reasons. Ofc I had only had a couple hours sleep and was seeing blurry so didnt spend much time at it. But what I did notice, was that now I looked at the H1 tf and ALL my setups on the H4, were exactly opposite on the H1 (duh).
I know that can make perfect sense and I just mention it to drive the point home (youll see)
Of course first thing I did was printscreen all of my trades on the h4 and h1 tfs to show you guys and I was like wtf?!?! But I left the trades, as I had calculated my risk and accepted it beforehand, and went back to bed to try and get a couple more much needed hours.
I came back to the pc at 11:30 my time. Overslept and missed the 11am candle open.
This is what I saw pretty much:
4 trades in profit! 1 Trade stopped out, the E/U. I took a look at E/U short and it totally went my way after hitting my [email protected]. If you had set the stop 5 pips higher, which I should have because thats where last swing hi was, it would be open and +~55 pips. I missed it by like 4 pips.
That also made clear to me another point:
Dont set Sl's by what you are willing to risk. You must determine you stops, and only then set you position size accordingly. I know this may sound obvious to some of you, but its important and I didnt realize how important at first.
Anyways ill post charts later, as Im late.
But I'm ecstatic and think I finally get the point.
I just had to let you know.


Oh I re-entered that EU short as setup was there. already +15 pips at time of typing...

Hello,
i read the therad well...but there is no info abut this scholastic undicator (8,3,3)....what does that red markings on the wave indicate?
thankyou

Part 1 - the Entry

Part 2 - trade management

Going to post my last few trades for scrutiny
Eur/Usd [email protected] SL@13601 TP@13601
Still open

GBP/USD Short @1.5693 [email protected] [email protected]
Still open -2 pips
* Watching it closely. TDI has tweaked up a bit.. may exit with small loss or b/e.

I violated the entry rules that i set for myself on this trade. So I'm going to accept my losses and stop focusing on this trade. My focus and attention is more important on my winners.

Here are my post trade thoughts:
1. The entry on the 4H chart was technically correct per the rules - so "A" for the effort in recognizing that.
2. The slope of the 5 SMA and the Red line were near flat. This is a violation of my personal entry rule. So "D" for not having the patience to wait for a confirmation.
3. The next 5 candles were spinning tops, which mean that there is no consensus that the bullish trend would continue. I continued in the trade "hoping" that the bullish trend would continue. So "F" for not seeing the market for what it is.
4. I realized that this trade was bothering me as i kept going back to the charts over and over again, multiple times, to see if I made any money. I started to look at multiple TF's and hoping for a confirmation of my original decision. This is distracting and putting doubts in my head for future trades. So i closed this trade out and am gracefully accepting a financial loss for a trade that did not work out. can't have a single trade affect my calmness during trading hours. So another "A" for me for getting out of this trade and cutting my losses.

So overall i give myself a C - for entering this trade.

(and no i will not reverse my position and go short. I might if i see a good trade set up in the future.)