Compounding Trades: Trading only 12 times in 2013 | Forex Factory

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Compounding Trades: Trading only 12 times in 2013

  • #1
  • First Post: Edited 5:35am Dec 16, 2012 1:14am | Edited 5:35am
I am looking to try something new in 2013 I just opened a new account with a different broker than I normally use. But I am looking to only make )(on average) one trade a month in that account. That is, I will have to sit on my hands for most of the time and just wait it out till I can see a good opportunity to make 100 pips on each of my trades only 12 times in 2013. I will just compound it starting with 0.2 lots ($600 in margin.) I am starting with $1000 seed money just in case and will most likley use EUR/USD since it has the most liquidity. By my calculation that would be around $25K results and will require 7.2 lots in the last month, if I can get 12 in a row.

I will most likely be using PA for these trades.

Has anyone on these boards ever really been patient enough to be able to only trade once a month?
  • #2
  • Dec 16, 2012 3:51am Dec 16, 2012 3:51am
Hi

Never tried to limit my trades in such a way

The question is do you lock yourself out on manny good opportunitys or on alot of bad ones ?
How do dou know if a good opportunity arises ?
Do you have set rules for this ?
Does your rules imply that such a setup only arises on average once per month ?
Wich on the itherhand doesent neccesearly means that its a winner

So for me the only thing one can manage is risk , and that doesent mean i have to take fewer trades
Just the ones who fit my plan ,,,, if the market shows an opportunity then take it!
No mather if you allready took one this month,,,, could be that u may have 3 or more opportunitys in
One month and then 2 months with no setup , u cant tame the market by limiting your trades .u just can play the hands it deals u, or dont depending on your plan/rules


Good luck on your journey
  • #3
  • Dec 16, 2012 5:35am Dec 16, 2012 5:35am
Quoting Aeiou
Hi

Never tried to limit my trades in such a way

The question is do you lock yourself out on manny good opportunitys or on alot of bad ones ?
How do dou know if a good opportunity arises ?
Do you have set rules for this ?
Does your rules imply that such a setup only arises on average once per month ?
Wich on the itherhand doesent neccesearly means that its a winner

So for me the only thing one can manage is risk , and that doesent mean i have to take fewer trades
Just the ones who fit my plan ,,,, if the market shows an opportunity...
The setups happen as they happen. I factored in 12 as I thought looking back that there are about 1 great signal each month, though there are more than one per month as we have seen in Dec 2012.
I just wonder how long I can go before I get trigger happy.
  • #4
  • Dec 16, 2012 5:53am Dec 16, 2012 5:53am
i trade that way. 11 trades in '12. rest is entertainment and much smaller sizes- 10 to 100 x less. this is equity curve

http://www.forexfactory.com/showthre...10#post6297010
  • #5
  • Dec 16, 2012 6:29am Dec 16, 2012 6:29am
Quoting BillSuits
The setups happen as they happen. I factored in 12 as I thought looking back that there are about 1 great signal each month, though there are more than one per month as we have seen in Dec 2012.
I just wonder how long I can go before I get trigger happy.
Yo getting trigger happy has nothing to do with the markets
Thats psyhological thing , and if u think u can overcome that by limiting
Your trades you are on the wrong track , think about if u waited 28 days and
No real setup occures which justifies your plan , how would u feel ?
Would your fingers itch ? Would u take halfbaked setups ?
How about if time goes by lets say 3 months without a clear setup
Could u manage that psychological wise ? Ie patience ?

Again its not about the markets its about u and how u manage yiurself

Trigger happenies often only occures because of the fear of missing out
Wich leads to bad entrys ie. Halfbaked setups and most probably to revenge trading
Cause u did ut again ! U didnt follow your plan etc...

I dont think that limiting trades is the way to go if the problem is beeing not patient wich
Leads to the fear of missing out and therfore triggeehappines
  • #6
  • Dec 16, 2012 5:37pm Dec 16, 2012 5:37pm
Trading once a month is doable, but in my experience, you'll lose touch with the market and stop seeing yourself as a "trader" if you sit out for too long.
  • #7
  • Dec 16, 2012 7:39pm Dec 16, 2012 7:39pm
Quoting macroman
i trade that way. 11 trades in '12. rest is entertainment and much smaller sizes- 10 to 100 x less. this is equity curve

http://www.forexfactory.com/showthre...10#post6297010
Great to hear! Congrats on your success.
  • #8
  • Mar 4, 2013 10:12am Mar 4, 2013 10:12am
Quoting KingKaivar
Trading once a month is doable, but in my experience, you'll lose touch with the market and stop seeing yourself as a "trader" if you sit out for too long.
i agree with you, sir. but who says that you must see yourself as a trader? isn't the target to make money?
as far the OP is concerned, i remember 2 texts that support his view:
a) linda rashke says somewhere that the less you stay in the market, the better you are. markets are dangerous, for g-d's sake )
b) jim rogers confessed in his interview from Market Wizards that ideally he would wait until the money lays on the floor or smth like that.
  • #9
  • Mar 4, 2013 10:20am Mar 4, 2013 10:20am
Quoting Aeiou
Yo getting trigger happy has nothing to do with the markets
Thats psyhological thing , and if u think u can overcome that by limiting
Your trades you are on the wrong track , think about if u waited 28 days and
No real setup occures which justifies your plan , how would u feel ?
Would your fingers itch ? Would u take halfbaked setups ?
How about if time goes by lets say 3 months without a clear setup
Could u manage that psychological wise ? Ie patience ?

Again its not about the markets its about u and how u manage yiurself

Trigger happenies...
very deep what aeiou says. the only thing that should be clarified is that missing a trade (setup), even for months, is neutral.
  • #10
  • Mar 9, 2013 6:30am Mar 9, 2013 6:30am
Quoting BillSuits
I am looking to try something new in 2013 I just opened a new account with a different broker than I normally use. But I am looking to only make )(on average) one trade a month in that account. That is, I will have to sit on my hands for most of the time and just wait it out till I can see a good opportunity to make 100 pips on each of my trades only 12 times in 2013. I will just compound it starting with 0.2 lots ($600 in margin.) I am starting with $1000 seed money just in case and will most likley use EUR/USD since it has the most liquidity....
I had just tried quite similar approach. trade full margin by double the mini account for each trade. Set TP=30 and SL=30.
Winning straight 5 trades so far. EURUSD at M5. Do it within 3 days last week. Stop for awhile and withdraw the money. start again this week but got stop after win 2 times. lucky had withdraw the gain earlier. it is doable. Sure will start again. my target is to not get 12 straight win. Step 1, with 5 wins, widraw. step 2 with 7 wins, widraw, step 3 with 10 wins...and so on.
  • #11
  • Mar 11, 2013 5:20am Mar 11, 2013 5:20am
Quoting BillSuits
I am looking to try something new in 2013 I just opened a new account with a different broker than I normally use. But I am looking to only make )(on average) one trade a month in that account. That is, I will have to sit on my hands for most of the time and just wait it out till I can see a good opportunity to make 100 pips on each of my trades only 12 times in 2013. I will just compound it starting with 0.2 lots ($600 in margin.) I am starting with $1000 seed money just in case and will most likley use EUR/USD since it has the most liquidity....

Trading frequency is entirely up to you. If you have the patience to just trade once a month then good for you. But beware of falling in an idealistic mentality.

Even though you want to trade once a month, it does not mean it will happen that way. What if the trade you took is taking much longer to reach your profit target? Will you open another trade regardless or would you wait it out? Or would you close the existing trade? You must have all your trading rules in your plan. Especially since you have so much time in between your trades, you will be tempted by the market to take actions that you should not do (based on your plan).

Also, you are assuming no losing trades (win every month). I do not know what is your trading strategy but I do know that all strategies have winning probability, that means they cannot win all the time. So you must account for losing trades. When you lose, what happens? What would you do? You must have the answers in your trading plan.
FXPRIMUS trader
  • #12
  • Last Post: Jan 15, 2021 1:33pm Jan 15, 2021 1:33pm
Stop Loss must be used to maintain risk. However, if you have good money management, you can use even if you do not use a stop loss. But it is possible to maintain discipline by using a stop loss. So using stop loss can save you from many unexpected losses.
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