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Amazing Black Magic Trading Method

  • #241
  • Aug 9, 2012 10:01pm Aug 9, 2012 10:01pm
Quoting -Melo-
lol. I hope you will have more green next week then. If we study the EUro chart a little bit, we can see that the optimism from last week is fading. But trading that could lead to huge losses. At any moment, Germany could come and say something.

Few months ago, I started looking for alternative so that in these kind of day, I can find opportunity to trade. Gold, silver and Oil can be alternative because they follow the same fundamental as the Euro. Have you ever found alternative from currency or stocks ??
Let's see how these longs end.

Everything is connected, except Individual Stocks. It really doesn't matter what one trades. I like gold and euro. Gold is easier to trade and also a good investment.
The Thief of Wall Street
  • #242
  • Aug 9, 2012 10:18pm Aug 9, 2012 10:18pm
Quoting Chicky
Let's see how these longs end.

Everything is connected, except Individual Stocks. It really doesn't matter what one trades. I like gold and euro. Gold is easier to trade and also a good investment.

http://www.forexfactory.com/showthre...79#post3136279
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The Thief of Wall Street
  • #243
  • Aug 9, 2012 10:23pm Aug 9, 2012 10:23pm
Quoting Chicky
http://www.forexfactory.com/showthre...79#post3136279
did you buy gold back then ??
Alternatives are more important than the plan itself
  • #244
  • Aug 9, 2012 10:25pm Aug 9, 2012 10:25pm
Quoting -Melo-
did you buy gold back then ??
No.


But advised someone to buy gold when it was 1,300 last year. The couple three months ago sold their NJ Water Front condo for about a million, bulk of it financed by money gained from gold, selling at 1,800.
The Thief of Wall Street
  • #245
  • Aug 9, 2012 10:32pm Aug 9, 2012 10:32pm
Quoting Chicky
No.


But advised someone to buy gold when it was 1,300 last year. The couple three months ago sold their NJ Water Front condo for about a million, bulk of it financed by money gained from gold, selling at 1,800.
You are a bit like me, you dont follow your own advice
Alternatives are more important than the plan itself
  • #246
  • Aug 9, 2012 10:41pm Aug 9, 2012 10:41pm
Quoting -Melo-
You are a bit like me, you dont follow your own advice
Its not that, I wanted to, but couldn't. I was out of job at that time.
The Thief of Wall Street
  • #247
  • Aug 12, 2012 10:52pm Aug 12, 2012 10:52pm
Quoting Chicky
No.


But advised someone to buy gold when it was 1,300 last year. The couple three months ago sold their NJ Water Front condo for about a million, bulk of it financed by money gained from gold, selling at 1,800.
I know gold move higher when the risk of a central bank to print more money is seen. But what are the other reason gold could go higher. Before 2008, what made gold move up, do you know ??
Alternatives are more important than the plan itself
  • #248
  • Aug 13, 2012 2:03pm Aug 13, 2012 2:03pm
Quoting -Melo-
I know gold move higher when the risk of a central bank to print more money is seen. But what are the other reason gold could go higher. Before 2008, what made gold move up, do you know ??
Gold is bought and held for various reasons, e.g.

1. As money
2. As Commercial Commodity
3. As investment
4. As hedge against currencies / stocks
5. As collateral / deposit against loans and commercial papers
6. As Jewelry or security in certain parts of the world where governments offer no retirement benefits, etc.

There is always a reason to buy and hold gold.
The Thief of Wall Street
  • #249
  • Aug 13, 2012 2:13pm Aug 13, 2012 2:13pm
Quoting Chicky
Gold is bought and held for various reasons, e.g.

1. As money
2. As Commercial Commodity
3. As investment
4. As hedge against currencies / stocks
5. As collateral / deposit against loans and commercial papers
[color=black][font=Verdana]6. As Jewelry or security in certain parts of the world where governments offer no retirement benefits,...
thank you for the explanation . what about you, why you wanted to bu gold back then ??
Alternatives are more important than the plan itself
  • #250
  • Aug 13, 2012 2:19pm Aug 13, 2012 2:19pm
Quoting -Melo-
thank you for the explanation . what about you, why you wanted to bu gold back then ??
380, 430, 480, 705, 750, 886, 1034, 1,100, and 1,300 were (and still are) the major levels for gold prices. The other levels are 1,600 and 3,000.

It broke 1,300 level at that time and the next level to me was 1,600.

I have some holding from 430 and 705. Easy to store, carry and value. I couldn't buy at 1,300.
The Thief of Wall Street
  • #251
  • Aug 15, 2012 9:50pm Aug 15, 2012 9:50pm
1. Direction: Fundamentals
2. Entry: At major round numbers after they become supports/resistances
3. Sl: No less than 250 pips
4. TP: Depends when fundamentals start changing, can be anything, including closing a position at loss.
5. Risk per position: Between 15% to 25%
6. Reward: Depends
The Thief of Wall Street
  • #252
  • Edited Aug 16, 2012 1:20am Aug 15, 2012 10:25pm | Edited Aug 16, 2012 1:20am
Quoting Chicky
1. Direction: Fundamentals
2. Entry: At major round numbers after they become supports/resistances
3. Sl: No less than 250 pips
4. TP: Depends when fundamentals start changing, can be anything, including closing a position at loss.
5. Risk per position: Between 15% to 25%
6. Reward: Depends
If you want to trade with stop loss of 250 pip and with fundies, maybe you should take a look at more than one chart.

here are few suggestion :

1) USD/JPY : this pair is my main pair with the recent japan GDP figure. You can easily guess that Im long on this one

2) USD/Cad : if the price of oil go up, and this if the global economy is improving, this pair will move down. If not, it will move up.

3) GBP/AUD : I find that pair very intersting. This pair will not be influenced by the EUropeen problem or the global economy
Alternatives are more important than the plan itself
  • #253
  • Aug 16, 2012 12:51pm Aug 16, 2012 12:51pm
Quoting Chicky
1. Direction: Fundamentals
2. Entry: At major round numbers after they become supports/resistances
3. Sl: No less than 250 pips
4. TP: Depends when fundamentals start changing, can be anything, including closing a position at loss.
5. Risk per position: Between 15% to 25%
6. Reward: Depends
7. Timeframe: Daily and 4H
8. Starting Capital: As little as possible
9. Expectation: Slow growth of account over a number of YEARS (5 to 10)
The Thief of Wall Street
  • #254
  • Aug 16, 2012 1:23pm Aug 16, 2012 1:23pm
chicky do you know why we have a rally today. IS this a technical ananlysis based rally or its because of a fundamental that I missed ?
Alternatives are more important than the plan itself
  • #255
  • Edited 4:58pm Aug 16, 2012 2:44pm | Edited 4:58pm
Quoting -Melo-
chicky do you know why we have a rally today. IS this a technical ananlysis based rally or its because of a fundamental that I missed ?
I don't know about today, but for last several weeks looking at 1.2250 as a major support. I don't think pa will break this level with mixed news. It will require a solid reason to go beyond and stay below this level.

I have lost about 35% of my this demo account in order to catch a bullish move from this level. But once, I am on board may double the account before trend reverses.
The Thief of Wall Street
  • #256
  • Edited 5:44pm Aug 16, 2012 5:19pm | Edited 5:44pm
Quoting Chicky
7. Timeframe: Daily and 4H
8. Starting Capital: As little as possible
9. Expectation: Slow growth of account over a number of YEARS (5 to 10)
Here is the deal:

Look at the overwhelming fundamentals and speculate the direction i.e North or South. Do not try to speculate number of pips it may go in the chosen direction because length of a trend is always dependent on changing market factors. Therefore one cannot say for sure at one point of time how big or small would be the next move.

Ride the trend as long as overwhelming fundamentals support the direction. Once fundamentals start changing, close the position and repeat the process. Don't worry about missing first few or losing last few pips.

The greatest advantage of going with overwhelming fundamentals is that you become a longer-term trader and right almost everytime. It doesn't mean you won't suffer losses. If fundamentals change quickly, you may lose. But again, you will be in the right direction most of the time.

Since there will be very few trades available in a year if you trade longer-term, you have to set an ambitious profit target. You cannot set an abmbitious profit target if your risk doesn't correspond with the reward. Therefore you may have to risk anything from 15% to 25%. But never accumulate your positions in one go. Divide your position in 3 or 4 trades and do not enter second trade unless market keeps going in your direction. At the same time, you have to get in early and get out early so that you benefit fully from the trend and keep your losses under control.

Stay away from small moves. If you are trading based on overwhelming fundamentals your trade will automatically be for big moves. Keep closing down your positions and enter in same or opposite direction as overwhelming fundamentals change.

If you trade based on overwhelming fundamentals, it will save you from frequent stop outs due to spread widening, week-end gaps, abnormal daily volatility, etc.

If you keep on compounding your profits, will soon be able to convert small sums of money into a big sum.

It will also help you gain some knowledge about world economy, how market moves, financial products, etc. making you a more knowledgeable and skillful trader / individual.

These are some basics:
1. Direction: Fundamentals
2. Entry: At major round numbers after they become supports/resistances
3. Sl: No less than 250 pips
4. TP: Depends when fundamentals start changing, can be anything, including closing a position at loss.
5. Risk per position: Between 15% to 25%
6. Reward: Depends
7. Timeframe: Daily and 4H
8. Starting Capital: As little as possible
9. Expectation: Slow growth of account over a number of YEARS (5 to 10)

I don't think this is very much different from what Jesse Livermore did.
The Thief of Wall Street
  • #257
  • Aug 17, 2012 12:00am Aug 17, 2012 12:00am
Quoting Chicky
I don't know about today, but for last several weeks looking at 1.2250 as a major support. I don't think pa will break this level with mixed news. It will require a solid reason to go beyond and stay below this level.

I have lost about 35% of my this demo account in order to catch a bullish move from this level. But once, I am on board may double the account before trend reverses.
Well I have difficulties understanding the euro these day. I couldnt go long or short for meduim or long term so I just scalp. Why are you bullish, is this base on a technical analysis ??
Alternatives are more important than the plan itself
  • #258
  • Aug 17, 2012 12:36am Aug 17, 2012 12:36am
Quoting -Melo-
Well I have difficulties understanding the euro these day. I couldnt go long or short for meduim or long term so I just scalp. Why are you bullish, is this base on a technical analysis ??
I never felt a need to understand short-term moves. Just play few pips bounces at critical levels.

I am long because of fundamentals. Primarily, on EU's comments to save euro at whatever cost. 1.2250 support is a technical indicator. The good thing about longer term trading is that if you are wrong on fundamentals, by the time you realize it, fundamentals change in your favor - and you go from there
The Thief of Wall Street
  • #259
  • Aug 17, 2012 12:45am Aug 17, 2012 12:45am
is 250 pips = a specific percentage?

JL mentioned using 10% - although its not quite clear if he meant on the trade or on the NAV.
  • #260
  • Aug 17, 2012 12:52am Aug 17, 2012 12:52am
Quoting almo
is 250 pips = a specific percentage?

JL mentioned using 10% - although its not quite clear if he meant on the trade or on the NAV.
Never read 10%, but it seems good. It should be NAV.

250 pips is an arbitrary figure. Normally a big move is about 700 to 1,000 pips, sometimes even 2,000. Therefore 250 seems reasonable sl for the first trade. But as we enter all 3 or 4 trades to complete a position, can narrow down sl to 50 or 100 pips below our support/resistance level.

ps. Risk should never be more than 25% of all positions combined. We start from 10%-15% and by the time we complete building position, it may come to around 25%. This way we get few lives before reaching a margin call. However, chances are that following overwhelming fundamentals we will be right most of the time.
The Thief of Wall Street
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