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Rags to Riches in 10 or 20 Trades - Simplicity at its finest

  • #821
  • Edited 2:08am Oct 22, 2013 1:53am | Edited 2:08am
Quoting geomink
{quote} Please, what do you mean about it? Thx

In simple terms waiting for right circumstance.
What Crocodiles Can Teach You About Trading
Please read above article and think deeply about it.Croc can teach you to become a great trader.
I have read many trading books and none come close to this article's wisdom.
Hunting successfully and surviving millions of years then croc sure is doing something right.This is no joke.Best trader examples are in nature.

Your challenge is to overcome your greed/fear demons and practice alert patience like a croc stalking a prey.

Make a check list before entering a trade
Mine are
1.Check News/fundemetals
2.Support/Resistance
3.Where is price in relation to 200MA on daily,weekly (Banks often use 200MA as barometer of trend direction)
4.Where is price in relation to daily ,weekly Channals
5.Trade only top/bottom 20% of channel.
6.No trades to be taken if price is not in the zone
7.Trade without fear

Price channel example.This is my style which is position trading however idea is the same waiting for right confluences and those criterias varies from trader to trader..Develop a working plan that suits you.
Attached Image (click to enlarge)
Click to Enlarge Name: usdchf.weekly.png Size: 36 KB
In trading, you have to be defensive and aggressive at the same time
  • #822
  • Oct 22, 2013 2:09am Oct 22, 2013 2:09am
Quoting FerruFx
{quote} Quantity : trade all your signals regardless if they have high probability of success vs Quality : trade only high probability trades. The MM discussed here is only for Quality trades ... unless you don't care about success!
Don't give up
  • #823
  • Oct 22, 2013 2:12am Oct 22, 2013 2:12am
Quoting Davit
What Crocodiles Can Teach You About Trading Please read above article and think deeply about it
I already knew it

Don't give up
  • #824
  • Oct 22, 2013 2:14am Oct 22, 2013 2:14am
biggest challenge to trader is how to overcome daily spikes which are designed to take you out.
Market makers actively target Stops and knowing this is crucial as where you place your stops and how wide.Figure this according to your trading rules and you will be miles ahead
In trading, you have to be defensive and aggressive at the same time
  • #825
  • Oct 22, 2013 3:14am Oct 22, 2013 3:14am
I think one problem is due to this market is become at low volatility

many difficult make r:r 1/2 with such as ridiculous daily atr

just my cents
Don't give up
  • #826
  • Oct 22, 2013 3:31am Oct 22, 2013 3:31am
Quoting geomink
I think one problem is due to this market is become at low volatility many difficult make r:r 1/2 with such as ridiculous daily atr just my cents
when volatility is low you have to take 1:1 R:R...
consistency wins
  • #827
  • Oct 22, 2013 3:50am Oct 22, 2013 3:50am
Quoting iTrader
{quote} when volatility is low you have to take 1:1 R:R...
but does this mm even work with 1:1?
Don't give up
  • #828
  • Oct 22, 2013 4:21am Oct 22, 2013 4:21am
Quoting Davit
biggest challenge to trader is how to overcome daily spikes which are designed to take you out. Market makers actively target Stops and knowing this is crucial as where you place your stops and how wide.Figure this according to your trading rules and you will be miles ahead
I agree. Often, stops are just above the highs or lows, which is obvious as when price goes that bit further than the previous high/low, it will bounce back pretty hard.
  • #829
  • Oct 22, 2013 4:28am Oct 22, 2013 4:28am
This sytem reminds me a bit of the old TAOist story about a king a peasant, who saved the Kings daughter and his reward. The wiley peasant needed seed corn, so he asked for his reward to be paid in grains of corn. 1 on a chess board. 1 on square 1, 2on square 2, 4 on square 3, 8 on square 4, etc etc.

On the first square you put one grain of corn, $, Ģ, sheckle, phut, cowry shell, slave, goat etc. You then have to double it by whatever means and place that on the second square. Repeat for the third square and so on up to the 64 square. When you get there you will have 3 mill plus of whatever units you deal/play with.

But the nice thing about it is that you can start small and very quickly, with a run of luck and sticking to the system, build a real amount of wealth
'Life' only really begins just over the edge of our comfort zones
  • #830
  • Oct 22, 2013 4:29am Oct 22, 2013 4:29am
Quoting kuroro001
{quote} Have read the thread ? or just pop in ? Take it as a challenge...going from 50$ to 50k in a couple of trades....AND another classic account where you trade without high leverage. It doesn't sound too complicated to understand to me, is it ?
yes I have read the thread, you have not read the question though.

Explain how it is better to trade in a manner where your current results say you will lose all your money is better than trading in a way where the risk model says it is impossible to lose your money...

"take it as a challenge"... those people need to stick to video games... the challenge in trading is profit, nothing more, nothing less
tradewith60
  • #831
  • Oct 22, 2013 5:39am Oct 22, 2013 5:39am
Quoting Davit
{quote} This is no joke.Best trader examples are in nature. {image}


We allready bear, bull, and now we have green CroCodiLe. awesome.
deep RoT is essential for everlasting happyness
  • #832
  • Oct 22, 2013 7:13am Oct 22, 2013 7:13am
Quoting Davit
biggest challenge to trader is how to overcome daily spikes which are designed to take you out. Market makers actively target Stops and knowing this is crucial as where you place your stops and how wide.Figure this according to your trading rules and you will be miles ahead
I suggest moving to a true ECN broker that only makes money on commission and not spread. That is the only way that it is fair for the trader. That way they want you to do well and trade more.
  • #833
  • Oct 22, 2013 7:55am Oct 22, 2013 7:55am
Quoting Chubbly
{quote} I suggest moving to a true ECN broker that only makes money on commission and not spread. That is the only way that it is fair for the trader. That way they want you to do well and trade more.

Davit's not talking about brokers, but market makers. The big guys who are laying down the big orders. They need liquidity and they find it at (among other places) those obvious s/l areas.
  • #834
  • Oct 22, 2013 8:18am Oct 22, 2013 8:18am
so basically keep chucking money at it, small amounts until you hit a lucky streak of wins... good plan...

of course if you cannot maintain any sort of consistent results, AND you believe the market has no structure or pattern to it at all, then I guess it can seem like some hope.
tradewith60
  • #835
  • Oct 22, 2013 4:17pm Oct 22, 2013 4:17pm
Quoting 60minuteman
so basically keep chucking money at it, small amounts until you hit a lucky streak of wins... good plan... of course if you cannot maintain any sort of consistent results, AND you believe the market has no structure or pattern to it at all, then I guess it can seem like some hope.
the thread is clear to me

less clear is how to closed 66% position in gain AND with a R/R 1:2

please, anyone could show me ?

thank you
Don't give up
  • #836
  • Oct 22, 2013 4:46pm Oct 22, 2013 4:46pm
Quoting Davit
biggest challenge to trader is how to overcome daily spikes which are designed to take you out. Market makers actively target Stops and knowing this is crucial as where you place your stops and how wide.Figure this according to your trading rules and you will be miles ahead
Absolutely!
Consider this;

50 pips TP
25 Stop


EURUSD:1 pip spread.
1 pip to enter, 1 pip to exit, thatīs 2 pips.
So you Need:
TP 52
SL 27
Thatīs 4 pips for a sequence of trades, win and loose,...your Performance average.
2 pips less when you win, 2 pips more when you loose
4 Pips is almost 10 percent of 50
Thatīs not counting slippage, spikes,higher spread times....etc...

Move to another pair,with higher spread, and the costs grow exponentially...
Ever wondered why it is so hard to beat the Broker?..easy to get stopped, very hard to reach your Profit.
Same like the rental costs of an expensive Boutique....
Thatīs also why a system that goes for daylys tends to be easier, cause the percetage cost of the spread getīs reduced exponentially...
But, you pay for less opportunity...life is limited...average life span of 70 years, thatīs 25.550 days (only), minus what you already lived...
The time axis of the EURUSD, is actually the time of my life...EURUSD will most likely outlive me...
Happy days to all..
  • #837
  • Oct 22, 2013 6:30pm Oct 22, 2013 6:30pm
Quoting cuchuflito
{quote} Absolutely! Consider this; 50 pips TP 25 Stop EURUSD:1 pip spread. 1 pip to enter, 1 pip to exit, thatīs 2 pips. So you Need: TP 52 SL 27 Thatīs 4 pips for a sequence of trades, win and loose,...your Performance average. 2 pips less when you win, 2 pips more when you loose 4 Pips is almost 10 percent of 50 Thatīs not counting slippage, spikes,higher spread times....etc... Move to another pair,with higher spread, and the costs grow exponentially... Ever wondered why it is so hard to beat the Broker?..easy to get stopped, very hard to reach...

very interesting points here. I still love the idea of this thread but I think every one should take note of this as it will be very hard to achieve with smaller terms trades if you will automatically be down nearly 10% from the get go. Should try with smaller lots and bigger pip goals. maybe trade daily charts for 200-300 pips risking 75-150 pips?
He who knows when he can fight and when he cannot, will be victorious.
  • #838
  • Oct 23, 2013 1:20am Oct 23, 2013 1:20am
Not to derail this thread but adding to it.
One way to overcome SL hunts is to trade with smaller lots but without stops.This is my method. My SL is based on $ amount set aside for the trade.Once that gets hit then I close.This way I have control of my exposure instead of being taken out constantly which end up costing more.
Take your 1 lot and divide in 4
Add only to winning position progressively.Jesse Livermore preferred method.

Quote from a book I am reading now


Beat the Forex Dealer
Attached Image (click to enlarge)
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In trading, you have to be defensive and aggressive at the same time
  • #839
  • Oct 23, 2013 1:37am Oct 23, 2013 1:37am
Quoting Davit
One way to overcome SL hunts is to trade with smaller lots but without stops.This is my method. My SL is based on $ amount set aside for the trade.Once that gets hit then I close.This way I have control of my exposure instead of being taken out constantly which end up costing more.
That makes perfect sense for those who control the emotional part of trading. Most traders still hope a reversal while price is going against them ... so the manual exit option is killing their trading.

For them in this case, a larger emergency SL would be an option additionally to the manual exit.
MT4/MT5 EAs/Indicators/Alerts coder
  • #840
  • Oct 23, 2013 1:57am Oct 23, 2013 1:57am
Quoting FerruFx
{quote} That makes perfect sense for those who control the emotional part of trading. Most traders still hope a reversal while price is going against them ... so the manual exit option is killing their trading. For them in this case, a larger emergency SL would be an option additionally to the manual exit.

agree 100%
I am in the process of learning to take a loss without qualms
Its hard but I firmly believe this is the key to become profitable in trading.Learning to take a loss.Profits take care of themselves!exposure is the pink elephant in the room that demands attention.
Regards
In trading, you have to be defensive and aggressive at the same time
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