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Make Money Everyday - A Guide to Short-Term Trading

  • #1,201
  • Sep 29, 2012 8:10am Sep 29, 2012 8:10am
Quoting nhen
Looked at it on wikipedia, looks like my kind of book. I've got two to get through at the moment, when they're done I'll grab it.

It's a big thick juicy book. One of my absolute favorites.
  • #1,202
  • Sep 29, 2012 8:18am Sep 29, 2012 8:18am
I didn't know you could change that. I haven't tried this method yet. Can you tell me a ball park for winning percentage?...not money or pips... but wins per entries made. You probably said it already but I didn't see it.


Quoting nhen
That'll just be the settings on the horizontal grid. On my charting platform you can set them, perhaps not on yours?

Everyone here just draws their lines on manually though and leaves the grid off.
  • #1,203
  • Sep 29, 2012 9:57am Sep 29, 2012 9:57am
Quoting durant9999
I didn't know you could change that. I haven't tried this method yet. Can you tell me a ball park for winning percentage?...not money or pips... but wins per entries made. You probably said it already but I didn't see it.
I'll take this first. In regards to your charts - Can't help you. Call your broker and find out how it works or what they have to say. I draw my lines myself. However I do have the numbers show on the side.

Winning percentage. This is a slippery slope. My winning percentage is going to be different than nhen's or enochben or anyone else who is still reading this. The key really is your money management. I don't talk a lot about it hear, maybe I should start. But one thing I do talk about is protecting your inventory. No inventory, no trading.

So winning %, I'm usually running around 3 out of 4 as far as profitable trades. One suggestion is vocabulary. Win vs. Loss OR Profitable vs. Not. The thing to remember - you need the 'Not's' to get the Profitable. It's just how it works.

This mechanism, un-profitable trades, does two things.
1. Sifts out all the wannabe traders AND
2. Rewards those traders who understand that Taking losses is totally acceptable and necessary and can manage their business and themselves in such a way that the un-profitable trades don't put them out of the game.

Don't expect to win 100% of the time. Someone starts in with a 'can't lose' deal, RUN. However, you can make money in a consistent manner, and that my friend is why we and EVERY business are here.

Mongolian.

P.S. "Winning Percentage" I've found, like baseball batting average, is low to start. But once a trader has spent some serious face time with the market, working diligently, their % certainly gets better. Just like a baseball player, low BA to start, but the better he gets, the more pitches he sees, the better hitter he becomes. Also - the better hitter he becomes, the more he knows when there is a pitch he can hit and when there is one he can't or even when there is one he needs to foul off. I equate that in trading to knowing my ideal setups, knowing that I don't and shouldn't trade (Swing) at everything thrown my way and that there are times when trades look ideal but they don't quite work out, so foul it off, or get out of the trade.
  • #1,204
  • Oct 6, 2012 6:38pm Oct 6, 2012 6:38pm
Anyone here think you can be spoon fed and learn how to cook at the same time? What if you are constantly spoon fed and one day, your feeder is gone. How would you know what to do? You wouldn't. What would you do? The answer is simple....... starve. People kill me.

Mongolian
  • #1,205
  • Oct 7, 2012 12:36am Oct 7, 2012 12:36am
Quoting mongolian
I'll take this first. In regards to your charts - Can't help you. Call your broker and find out how it works or what they have to say. I draw my lines myself. However I do have the numbers show on the side.

Winning percentage. This is a slippery slope. My winning percentage is going to be different than nhen's or enochben or anyone else who is still reading this. The key really is your money management. I don't talk a lot about it hear, maybe I should start. But one thing I do talk about is protecting your inventory. No inventory,...
  • #1,206
  • Oct 14, 2012 3:19pm Oct 14, 2012 3:19pm
Very good article about Nick Saban and 'The Process". Definite parallels to trading. What is your process?

http://money.cnn.com/2012/09/07/news...une/index.html
  • #1,207
  • Oct 19, 2012 6:19pm Oct 19, 2012 6:19pm
Quoting mongolian
Very good article about Nick Saban and 'The Process". Definite parallels to trading. What is your process?

http://money.cnn.com/2012/09/07/news...une/index.html
Fantastic cheers mate.
Especially dig this:

'Saban points to a game in November 1998 as a key moment in his evolution. He was in his fourth year as the head coach at Michigan State, and his unranked Spartans were scheduled to face the undefeated No. 1 team, Ohio State, on the road.
During practice that week Saban told his team that they weren't going to worry about winning the game. They would treat every play in the game as if it had a history and a life of its own. And regardless of what happened in the play before, they were going to focus only on the next play. He found that his players were looser and more confident.
In a huge upset, Michigan State came from behind to win 28-24. Saban decided to stop talking about the importance of winning and double down on his process-oriented approach. "I'm not naive enough to think winning isn't important," says Saban. "But what that game made me realize is how much better it is for people not to worry about the opposition but to focus on executing and know if they do their job correctly they're going to be successful, rather than thinking the other guy's going to determine the outcome."'
  • #1,208
  • Oct 21, 2012 1:03am Oct 21, 2012 1:03am
Quoting nhen
Fantastic cheers mate.
Especially dig this:

'Saban points to a game in November 1998 as a key moment in his evolution. He was in his fourth year as the head coach at Michigan State, and his unranked Spartans were scheduled to face the undefeated No. 1 team, Ohio State, on the road.
During practice that week Saban told his team that they weren't going to worry about winning the game. They would treat every play in the game as if it had a history and a life of its own. And regardless of what happened in the play before, they were going to focus...
Bingo. For me, taking the $$ out of the equation and making it simply about the pips, or the ticks, or whatever - it really changed things for me. Not worrying about 'winning' and just worrying about executing. I don't measure whether I've won or not. I measure how well I executed according to my plan. I know my plan and I know what kind of trades I'm looking for within it. Now I can go back and say - my plan should have generated 'X' results today - I generated 'Y' results.... what was the difference and why. I dont' worry or even think about the money. It's me against my potential if you will. The more I get that mastered, the more the profits come.

Mongolian
  • #1,209
  • Oct 21, 2012 2:20am Oct 21, 2012 2:20am
Quoting mongolian
Bingo. For me, taking the $$ out of the equation and making it simply about the pips, or the ticks, or whatever - it really changed things for me. Not worrying about 'winning' and just worrying about executing. I don't measure whether I've won or not. I measure how well I executed according to my plan. I know my plan and I know what kind of trades I'm looking for within it. Now I can go back and say - my plan should have generated 'X' results today - I generated 'Y' results.... what was the difference and why. I dont' worry or even think about the...
You are a legend sir

I am tip of the iceberg with this; now consistent and pretty much able to generate my daily + even if I happen to make a few mistakes one night. But if I am honest, there is still an element of fear in my trading, and that shows me that there is work to be done yet.
Each week as I follow my rules and become more comfortable and confident in my plan that fear diminishes. Then as the new week begins I am able to trust and let go more.
Slowly getting there!
  • #1,210
  • Oct 21, 2012 4:54pm Oct 21, 2012 4:54pm
OK kids, money management. As we roll into November in the next 9 days, I'm throwing this out here. Math does not lie. Reason traders fail?? Over-trading, over-leveraged, over-exposed. I've said it from the beginning - Protect your inventory. No inventory = No business.

Now, if you haven't worked up the math, do it. You should know exactly where you are. Do it today. GUYS - size does matter and interestingly enough - it's the inverse of what we probably initially think. I know that it's easy to make a spreadsheet and do the math - and say - $hit!! I can be at 1,000,000 bucks in 6 months or whatever, as long as I get just 20 little pips a day. How hard can that be. Look over the forums here at the dead threads of 'traders' (and I use that term loosely) who thought they had it all figured out.

It's not what you make. It's what you don't lose. Will you lose? Absolutely. It's how you as a trader behave when those instances arrive, that dictate how long of a trading career you will have.

For Example - Say I have $200. I want to risk 2% per trade. Now I can get my lot size a number of ways, but I found the easiest to is go from my Stop Loss and work backwards. Depending on the leverage you use, these numbers may vary. Assuming you are leveraged up - 50:1. Say I use a 10 pip Stop Loss. Doing the math, I know that I am willing to risk 4 bucks. So $4, I divide my stop loss into that, by my pip value, and I get my lot size. So I can trade 4 ten cent lots.

I also can know now that it will take me over NINETY trades in a ROW, using my 10 pip stop loss and my 2% formula to get down to where I can't trade at all. 90 Trades - losing 2%, in a row, gets you down to $49. Are you busted yet? Nope, But you are damn close.

I know some of you will sit there and say - I want to make $$ fast, this 2 % is Bull$hit. Well, good luck. On the flip side, 2% position sizing, Making Money Everyday, getting a 20-30 pips a day, @ the end of the year - well It's a dramatic number. But I would venture to say - most won't attain it. You see - if you can't manage the little numbers, you'll never have the opportunity to manage the big ones.

Mongolian
  • #1,211
  • Nov 21, 2012 7:50pm Nov 21, 2012 7:50pm
Hi Mongolian

First I'd like to say a big thank you for you for putting your time and effort to share your trading system and also to other members that contribute to this thread. I really like your trading system since it involves no indicator. I have already read half of this thread, so I'm sorry if this question has been answered before. My question is do you stop trading for one day if you have let's say 4 consecutive losses (i.e do you have maximum losses for one trading day) or do you keep trading until you get at least 1 win? (Other members' input is also welcomed).
Thank you.
  • #1,212
  • Nov 27, 2012 8:26am Nov 27, 2012 8:26am
Quoting Ryukenden
Hi Mongolian

First I'd like to say a big thank you for you for putting your time and effort to share your trading system and also to other members that contribute to this thread. I really like your trading system since it involves no indicator. I have already read half of this thread, so I'm sorry if this question has been answered before. My question is do you stop trading for one day if you have let's say 4 consecutive losses (i.e do you have maximum losses for one trading day) or do you keep trading until you get at least 1 win? (Other members'...
Sorry my friend. I just saw this post. I try to respond quickly if possible. When I started out, my ego couldn't handle losing more than a couple at a time, so I would have to quit, because I would get bent out of shape. It sucked because I sucked. But now, no - i don't have a consecutive loss rule. My goal is to Make Money Everyday. Now, saying that - I do have a % number that I set that should I hit that - I've got to shut it down. For the most part though, PA behaves how I expect it to, so while there will be trades in any given day that don't go my way, The one's that do far outweigh those that don't. They key is not letting the losses turn into big losses. My account can take a number of small, manageable losses as long as I keep plugging away, offsetting those with profitable trades. Hope that helps.

Mongolian
  • #1,213
  • Jan 16, 2013 11:14pm Jan 16, 2013 11:14pm
Here is a chart of today's Price Action for the EUR/JPY. PA was absolutely flying today. It was great. I've marked trades - feel free to pick it apart, maybe we can a dialogue going.

Mongolian
Attached Image (click to enlarge)
Click to Enlarge Name: EJ Today1.JPG Size: 307 KB
  • #1,214
  • Jan 17, 2013 1:08am Jan 17, 2013 1:08am
Hi Mongolian,

Thank you for starting this thread and sharing your method, I plotted the 12.5pip lines on the two pairs I trade EU and EJ since i first read your thread around mid last year. What i love about this method is once the trend is identified the set ups and triggers are so simple and non discretionary.

I recently just had a 3 month break from trading but everytime i would think of the market and all the years i have spent trying to develop that perfect entry, I would picture your method and smile becasue its just so simple and based on backtesting is a profitable approach, highly profitable if adding intraday price action experience.

I will be implementing your method with some of my existing signals that only correspond with the backbone of this method.

I have a couple questions on the chart you have posted, i have drawn blue arrows with A,B and C

1. At point A, the uptrend is still intack and therefore should you have not had a long limit order at 117.375? Would have been a profitable trade. Similar setup to the 2nd red arrow from the beginning of chart. Price has pulled back two levels.

2. Point B is a great short but again i would read the chart as it is still long and therefore no short trades BUT another long at 117.375 which would have been stopped for a loss. So the question is what made you decide to switch from long to short at point B? (technically I see it as a trendline break and retest but base on this method we should still be long?

3. Point C is valid as trend change is confirmed.

Agree with the rest of the chart

I hope to be posting some of my results on this thread and to do as the thread title - Make Money Everyday
Attached Image (click to enlarge)
Click to Enlarge Name: chart ej.jpg Size: 170 KB
  • #1,215
  • Jan 17, 2013 8:41pm Jan 17, 2013 8:41pm
Quoting Sakk
Hi Mongolian,

Thank you for starting this thread and sharing your method, I plotted the 12.5pip lines on the two pairs I trade EU and EJ since i first read your thread around mid last year. What i love about this method is once the trend is identified the set ups and triggers are so simple and non discretionary.

I recently just had a 3 month break from trading but everytime i would think of the market and all the years i have spent trying to develop that perfect entry, I would picture your method and smile becasue its just so simple...
I don't disagree with you. Yes A could be (or should be) a long there. What changed my mind? Price stopped me out, proceeded down to next level. I could have gone long on that and a lot of times I do. This time, just felt that since I'd been stopped, plus PA dropped a level, figured it would come back up and I'd get in on the short there. It worked out.
  • #1,216
  • Jan 17, 2013 10:26pm Jan 17, 2013 10:26pm
its been a while, but what time frame is that last chart???
  • #1,217
  • Jan 18, 2013 1:47am Jan 18, 2013 1:47am
Quoting enochben
its been a while, but what time frame is that last chart???
50 Tick Bars. Good to see you my friend. I don't usually use a chart that high, but needed to just so I could fit the price action in on one screen!
  • #1,218
  • Feb 18, 2013 4:52pm Feb 18, 2013 4:52pm
And I just had to post - this is hands down the best thread title on FF. Bar none!!! It is now part of my daily mantra.

Be like water: Make Money Everyday!
  • #1,219
  • Feb 28, 2013 10:17am Feb 28, 2013 10:17am
Quoting enochben
And I just had to post - this is hands down the best thread title on FF. Bar none!!! It is now part of my daily mantra.

Be like water: Make Money Everyday!
Just saw this. Indeed!!
  • #1,220
  • Mar 12, 2013 7:18am Mar 12, 2013 7:18am
Mongolian,

Hope you visit your thread now and then.
I have several questions.
In trading the EURJPY do you always use the 6 pip sl?
When setting pending orders ... let's say for buy orders..
Price breaks through a level 124.75 let's say it goes to 124.82 then starts to retreat back
Do you always wait for it to go back past 124.75 and then place a buy stop pending at 124.75?
Or do you at times just trail the price from each one level below with a set pending buy limit order?
Just want to be sure what you are doing and still having success.


Thanks.
Bruce
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