Congratulation!
Markets are not Random, they are designed!
- #4,561
- Oct 21, 2011 7:24pm Oct 21, 2011 7:24pm
- Joined Aug 2008 | Status: Money never sleeps | 5,878 Posts
- #4,562
- Oct 21, 2011 7:29pm Oct 21, 2011 7:29pm
- | Commercial User | Joined Feb 2010 | 14,361 Posts
Congratulation!
The magic of trading.
- #4,563
- Oct 21, 2011 7:42pm Oct 21, 2011 7:42pm
- Joined Aug 2008 | Status: Money never sleeps | 5,878 Posts
Compounding
Also is there a way to show weekly stat of trades on MT4? like the one you have shown with LINE CHART.
Markets are not Random, they are designed!
- #4,564
- Oct 21, 2011 7:51pm Oct 21, 2011 7:51pm
- Joined Aug 2008 | Status: Money never sleeps | 5,878 Posts
Markets are not Random, they are designed!
- #4,567
- Oct 21, 2011 8:23pm Oct 21, 2011 8:23pm
- Joined Aug 2008 | Status: Money never sleeps | 5,878 Posts
Markets are not Random, they are designed!
- #4,568
- Oct 21, 2011 8:28pm Oct 21, 2011 8:28pm
- | Commercial User | Joined Feb 2010 | 14,361 Posts
Added another chart there...Take a look.
- #4,569
- Oct 21, 2011 11:59pm Oct 21, 2011 11:59pm
- Joined Jan 2009 | Status: bye FF | 8,806 Posts
MY OPINION NOT FINANCIAL ADVISE
- #4,570
- Oct 22, 2011 2:36pm Oct 22, 2011 2:36pm
- Joined Apr 2008 | Status: Trader | 9,414 Posts
Good analysis Seb...
Thanks for your hard work and effort..
Also Thanks Nav for you charting as always good work mate..
I want close al the previous chapters here...on this thread..
Let bygones be bygones...
We welcome all traders with our heart to trade with harmony...
Apologies to Mcsirpip if we have had any misunderstanding..
Good Luck all now lets get back to business..
Regards BW
- #4,571
- Edited 8:48pm Oct 22, 2011 5:23pm | Edited 8:48pm
- Joined Nov 2009 | Status: Trader | 27,245 Posts
Thanx for the info Fcube. I will look to itinteresting views.
I don't have read excellent money management books since today and I have read many of these but no one of these could reflect my kind of trading in a realistical way. What a pity? May be I will write a MM/RM Book once time for advanced level traders.
Money Management
Formula: Capitalize-the-risk-ratio
A daily profit about +10'000.-$ needs a capitalize-to-risk-ratio around 1:10 without any kind of stop loss trading, instead of the risk-to-reward-ratio of 3:1 or 2:1 or so by trading the 2% stop loss rule. So I have to manage the "equity" or the "free margin" position around 100'000.-$ in plus (10 times more then the daily win). My personality and my trading concept (say all the corpus rationale of my fx-experience) allows to make a risk definition over the daily win positions. May be it sounds stupid in one form or another, for me it's an intelligent cognition, simple, efficient & profitable.
It's very hard to use any form of Position Size Calculator (like http://www.earnforex.com/position-size-calculator), that lets you to calculate the size of the position in units and lots to accurately manage your risks, albeit it works with all major currency pairs and crosses & even though it requires the minimum input values, but allows you to tune it finely to your specific needs. I have predominantly to realign at the 1:10 ratio, due to the fact that I overcharge the trades in scalping times, where I generate some parts of my daily win from short-term trades as well as you know during longer-term trades are running on. I don't make comments which of these open trades (usually 10% by comparing with all closes trades at the History file) are short dated, medium term or long range or currency-cross-pairs, hedging pairs or so. A global formula is that I use smaller lot sizes at long-term pairs and high lotsizes at short-termed currency pairs. It depends a lot of times which probability factor I could match a trade. E.g. if Daily, H4, H1 are signaled a trend I tend to go in with a higher lotsize. A Bullish (Bearish) Counterattack Pattern hasn't for me the same power of argument by contrast with a Bullish Piercing Pattern (Dark Cloud Cover) or a Bullish (Bearish) Engulfing Pattern & higher time frames have for me general more power then PA's at smaller timeframes. I like more to think in dynamical procedures everything flows, so item the currency market. Determining the position size is more affected with the likelihood or a probability factor. When I think the market didn't show a clear trend, it's ranging I like to hedge some trades or select some overspeed crossing pairs in the range of smaller lot sizes.
Deficit Management
by trading without any stop loss
I have to hedge (or double, triple, quadruple) the deficit or make with other currency pairs a counterbalance in money management. It's more a daily routine to compensate or equate the losses if there are no need of any stop-loss in the forex landscape. What you need is to develop your trading skills that you are able to do this if trades are running aginst you, but it's not a critical factor concerning the determinant of the daily wins. If the wins have a daily medium weight about 5'000.- you need only 20 trading days to counterbalance a 100'000.-$ deficit. The fewest currency traders think about it! Why? ...because they make more losses then wins, ...contrary it's really easy for an advanced level trader!
FXcube
...and if you read something above maybe you could here this music
Inserted Video
- #4,572
- Oct 23, 2011 4:16am Oct 23, 2011 4:16am
- Joined Jan 2009 | Status: bye FF | 8,806 Posts
MY OPINION NOT FINANCIAL ADVISE
- #4,574
- Oct 23, 2011 9:29am Oct 23, 2011 9:29am
- Joined Jan 2009 | Status: bye FF | 8,806 Posts
MY OPINION NOT FINANCIAL ADVISE
- #4,575
- Oct 23, 2011 9:30am Oct 23, 2011 9:30am
- Joined Mar 2010 | Status: Trader | 42,434 Posts
2013-07-31 Today's Phrase of the Day: Hold off from any recycle bin experts
- #4,576
- Oct 23, 2011 9:45am Oct 23, 2011 9:45am
- Joined Mar 2010 | Status: Trader | 42,434 Posts
2013-07-31 Today's Phrase of the Day: Hold off from any recycle bin experts
- #4,577
- Edited 3:50pm Oct 23, 2011 10:38am | Edited 3:50pm
- | Commercial User | Joined Feb 2010 | 14,361 Posts
HOW TO MAKE PROFITS IN THESE UNSTABLE MARKET TIMES
In trading it is very important to have a PLAN how to trade, when to trade,calculating risk size and maintain a rigid discipline. Many traders have been switching from system to system, trying to find HOLY GRAIL. Well, if you are one of those, I must disappoint you..read no further. HOLYGRAIL SYSTEM DOESN’T EXIST.
If you belong to other group of traders which know that THEY THEMSELVES are a source of HOLY GRAIL pls read further.
We are undergoing hard market times where there is a lot of uncertainty and its getting more and more difficult for traders to be in CONSTANT profit. By constant I don’t mean series of winning streaks when 1 bad trade afterward which might ruin the account.
Constant profit is achieved by having a PLAN and that is written in the STONE.
1)PLAN needs to include information yet it needs to be simple.
Importance of having a plan is very important. Forex business is like any sort of business and each business is preceded by having a BUSINESS PLAN. Its not so hard to make it. Open an excel spreadsheet and write down the figures. Currency, daily PROFIT target, risk per trade, LOT SIZE or POUNDAGE per 1 pip and calculate the amount of profit per pip you need to achieve your daily target. RISK must never exceed 3 % of OVERALL account size including all positions opened. Remember thou that SLIPPAGE may occur if you carry open positions during the weekend. SLIPPAGE happens when a stop-order is carried out at a worse rate than what it was ordered at. This situation frequently happens in a rapidly varying market and is usually prominent on Sundays. I always include WHEN to trade and I never trade on BID rate decision days, important news such as STRESS bank tests, and mostly I SCALP when there is a NARROW MARKET. Narrow market or THIN MARKET is a market with a small number of participants and is characterized by low volume. That includes BANK HOLIDAYS and I mostly try to make 3 -4 scalp entries aiming for 5-10 pips per trade. I never HOLD intraday position on those days. Also what I like to include in my plan is system overall performance, profits gained, pips gained etc….
2)DISCIPLINE and PSYCHOLOGY
There are many books which have been written on these subjects. I wont make this a sort of lesson as that can be pretty simplified.
Stick to your rules which are written in your plan. Get up EARLY as you work on your day job, maintain the Money Management discipline, never ever REVENGE trade. Revenge trading is a psychological thing. When a trader is depressed by having a streak of bad results during the daytrade he/she may try to revenge by opening double/triple/quadruple lot size./poundage in order to recuperate for the losses. This is a dangerous thing and you should try to avoid it. This is aimed for FOREX trading as FX trading is spot trading in contrary to FUTURES trading where a trader IS NOT in a position to follow his strategy as they may be restricted from taking new positions should the price of a currency go above or below pre-determined amount. That’s where we FX traders apply stop loss orders in order to protect us from possible losses.
If you reach your daily profit target ( mine is 1-2% percent per day)you should STOP trading for that day. Not every move can be captured, don’t be greedy else the market will punish you. FX market is not centralized, no volumes in FX. Banks,specialized financial institutions and central banks,are offering cash flow to companies, big market players and investors.
Try to follow the big fish as small fish go after the shark and feed on it.
3)TRADING SYSTEM
Each trader needs to follow his own charts and believe in what he/she has been doing. I personally use QUAD system for trading which is essentially a TRADING PROGRAM. Not a computer program but a CORE trader’s ENCYCLOPEDIA consisting of PLAN, STRATEGY, COMPOUNDING, and 4 different TRADING SYSTEMS.
I personally use each different system for TREND FOLLOWING, COUNTERTREND/RANGE, SCALP, DIVERGENCE.
If you have been following me and my posts from earlier days on FF ( 2 years ago) you already know I mostly used Divergence and trend for my trading but conditions have changed and it became harder to trade. We had a major trend 2 y ago and basically you could have made the money ( or lose it) by shorting the EU. Fortunately ( I deliberately) say fortunately, that is not REAL conditions so market has turned to be more volatile and dangerous. That’s when you have to combine different strategies in order to be in profit.
If you are an advanced forex trader that may well apply to you also as you will surely increase your chance for success. If you are a novice trader there are many good chances you can make by following proven trend and range following systems. System needs to be simple with few quintessential indicators for decision making but then again, DON’T follow it blindly. As previously said you need to have at least better understanding of FUNDAMENTAL and TECHNICAL key elements such as momentum, volatility and you should not make trades when you KNOW WHEN not to make any trade. If i fade the market I will do it with a minimum risk.
4)Money management. There have been many threads, forums and books for this particular subject. The basic of MM is risk management and compounding.
Ill do it simple. For example if I have 10 k account and my daily target is 1 % I will use 0,5 lot size (1:100)leverage ( that is 5 dollrs per pip) and I will need to make only 20 pips in order to get to the daily profit target. I always include stop loss in risk management so if I need to risk 30 pips to gain 30+ I will use lesser lot size. IT DEPENDS of system you are using. In my intraday trend following trades stops are usually between 30-50 pips but I aim at 30-100 pips and I would use 3 $ per pip ( on 10k account) but I may close it if I reach daily target or if I enter a scalp trade meanwhile. The advantage of using multiple strategies is that u can LEAVE your intraday trade open and you can scalp meanwhile exploiting up/downticks in lower TF charts. Also I may close my intraday trend trade ( h1 chart) if I spot a good counter trend trade on m15 or a cross divergence in an opposite direction. Its also advisable to use scaling in ( as close to stop loss as it can be w/o risking more then 1-3% total) or scaling out ( closing a part of position to ensure the profit).
SO my advice is to use different approaches and have STRONG money management.
Respect TRADING HOURS ( I have made the post under Forex Highlights-Trading hours) 13-14 gmt is consolidation period and profit taking, avoid that as much as possible.
[/b]
I have included a spreadsheet for 10k compounding account. The same rules are applied to bigger accounts and those are the basic rules of compounding.
If u earn extra money by closing the trade within higher pips to profit ratio use that as a daily stop OR extra margin/risk money.
In trading it is very important to have a PLAN how to trade, when to trade,calculating risk size and maintain a rigid discipline. Many traders have been switching from system to system, trying to find HOLY GRAIL. Well, if you are one of those, I must disappoint you..read no further. HOLYGRAIL SYSTEM DOESN’T EXIST.
If you belong to other group of traders which know that THEY THEMSELVES are a source of HOLY GRAIL pls read further.
We are undergoing hard market times where there is a lot of uncertainty and its getting more and more difficult for traders to be in CONSTANT profit. By constant I don’t mean series of winning streaks when 1 bad trade afterward which might ruin the account.
Constant profit is achieved by having a PLAN and that is written in the STONE.
1)PLAN needs to include information yet it needs to be simple.
Importance of having a plan is very important. Forex business is like any sort of business and each business is preceded by having a BUSINESS PLAN. Its not so hard to make it. Open an excel spreadsheet and write down the figures. Currency, daily PROFIT target, risk per trade, LOT SIZE or POUNDAGE per 1 pip and calculate the amount of profit per pip you need to achieve your daily target. RISK must never exceed 3 % of OVERALL account size including all positions opened. Remember thou that SLIPPAGE may occur if you carry open positions during the weekend. SLIPPAGE happens when a stop-order is carried out at a worse rate than what it was ordered at. This situation frequently happens in a rapidly varying market and is usually prominent on Sundays. I always include WHEN to trade and I never trade on BID rate decision days, important news such as STRESS bank tests, and mostly I SCALP when there is a NARROW MARKET. Narrow market or THIN MARKET is a market with a small number of participants and is characterized by low volume. That includes BANK HOLIDAYS and I mostly try to make 3 -4 scalp entries aiming for 5-10 pips per trade. I never HOLD intraday position on those days. Also what I like to include in my plan is system overall performance, profits gained, pips gained etc….
2)DISCIPLINE and PSYCHOLOGY
There are many books which have been written on these subjects. I wont make this a sort of lesson as that can be pretty simplified.
Stick to your rules which are written in your plan. Get up EARLY as you work on your day job, maintain the Money Management discipline, never ever REVENGE trade. Revenge trading is a psychological thing. When a trader is depressed by having a streak of bad results during the daytrade he/she may try to revenge by opening double/triple/quadruple lot size./poundage in order to recuperate for the losses. This is a dangerous thing and you should try to avoid it. This is aimed for FOREX trading as FX trading is spot trading in contrary to FUTURES trading where a trader IS NOT in a position to follow his strategy as they may be restricted from taking new positions should the price of a currency go above or below pre-determined amount. That’s where we FX traders apply stop loss orders in order to protect us from possible losses.
If you reach your daily profit target ( mine is 1-2% percent per day)you should STOP trading for that day. Not every move can be captured, don’t be greedy else the market will punish you. FX market is not centralized, no volumes in FX. Banks,specialized financial institutions and central banks,are offering cash flow to companies, big market players and investors.
Try to follow the big fish as small fish go after the shark and feed on it.
3)TRADING SYSTEM
Each trader needs to follow his own charts and believe in what he/she has been doing. I personally use QUAD system for trading which is essentially a TRADING PROGRAM. Not a computer program but a CORE trader’s ENCYCLOPEDIA consisting of PLAN, STRATEGY, COMPOUNDING, and 4 different TRADING SYSTEMS.
I personally use each different system for TREND FOLLOWING, COUNTERTREND/RANGE, SCALP, DIVERGENCE.
If you have been following me and my posts from earlier days on FF ( 2 years ago) you already know I mostly used Divergence and trend for my trading but conditions have changed and it became harder to trade. We had a major trend 2 y ago and basically you could have made the money ( or lose it) by shorting the EU. Fortunately ( I deliberately) say fortunately, that is not REAL conditions so market has turned to be more volatile and dangerous. That’s when you have to combine different strategies in order to be in profit.
If you are an advanced forex trader that may well apply to you also as you will surely increase your chance for success. If you are a novice trader there are many good chances you can make by following proven trend and range following systems. System needs to be simple with few quintessential indicators for decision making but then again, DON’T follow it blindly. As previously said you need to have at least better understanding of FUNDAMENTAL and TECHNICAL key elements such as momentum, volatility and you should not make trades when you KNOW WHEN not to make any trade. If i fade the market I will do it with a minimum risk.
4)Money management. There have been many threads, forums and books for this particular subject. The basic of MM is risk management and compounding.
Ill do it simple. For example if I have 10 k account and my daily target is 1 % I will use 0,5 lot size (1:100)leverage ( that is 5 dollrs per pip) and I will need to make only 20 pips in order to get to the daily profit target. I always include stop loss in risk management so if I need to risk 30 pips to gain 30+ I will use lesser lot size. IT DEPENDS of system you are using. In my intraday trend following trades stops are usually between 30-50 pips but I aim at 30-100 pips and I would use 3 $ per pip ( on 10k account) but I may close it if I reach daily target or if I enter a scalp trade meanwhile. The advantage of using multiple strategies is that u can LEAVE your intraday trade open and you can scalp meanwhile exploiting up/downticks in lower TF charts. Also I may close my intraday trend trade ( h1 chart) if I spot a good counter trend trade on m15 or a cross divergence in an opposite direction. Its also advisable to use scaling in ( as close to stop loss as it can be w/o risking more then 1-3% total) or scaling out ( closing a part of position to ensure the profit).
SO my advice is to use different approaches and have STRONG money management.
Respect TRADING HOURS ( I have made the post under Forex Highlights-Trading hours) 13-14 gmt is consolidation period and profit taking, avoid that as much as possible.
[/b]
I have included a spreadsheet for 10k compounding account. The same rules are applied to bigger accounts and those are the basic rules of compounding.
If u earn extra money by closing the trade within higher pips to profit ratio use that as a daily stop OR extra margin/risk money.
- #4,579
- Oct 23, 2011 2:56pm Oct 23, 2011 2:56pm
- Joined Aug 2010 | Status: Tööröh | 14,292 Posts
[color="Red"][b]HOW TO MAKE PROFITS IN THESE UNSTABLE MARKET TIMES
In trading it is very important to have a PLAN how to trade, when to trade,calculating risk size and maintain a rigid discipline. Many traders have been switching from system to system, trying to find HOLY GRAIL. Well, if you are one of those, I must disappoint you..read no further. HOLYGRAIL SYSTEM DOESN’T EXIST.
If you belong to other group of traders which know that THEY THEMSELVES are a source of HOLY GRAIL pls read further.
We are undergoing hard market times where...
regards and happy trading,
Jonas
Hero calls followed by margin calls...
- #4,580
- Edited 3:52pm Oct 23, 2011 3:40pm | Edited 3:52pm
- Joined Mar 2010 | Status: Trader | 42,434 Posts
thanks for this post T,but please dont use red font colour anymore ...my eyes are fucked up
regards and happy trading,
Jonas
But nice article ... no doubt ...
Jetzt aber ist eine verdammt gute Sendung auf ARD (erstes Programm) mit Lankwitz Günthi und Hanseat und Ex-Kanzler Helmut Schmitt und Peer Steinbrück ...
Das ist Spitze!
2013-07-31 Today's Phrase of the Day: Hold off from any recycle bin experts