LFX Trading Proverbs

You can smooth the indicator you are using by adding a moving average to it, say, 2 or 3 or?, and then change the color of the indicator to black, or None. It might be easier to use if it is not so choppy.

Proverb #12. Trade Managers pull triggers and dump losers.

Do you suffer from hesitating to pull the trigger on trades? Do you hope losing trades will turn to your favor and so you hang on longer than you should?

I read something today that made me think of a method that could help you overcome these issues.

What if instead of calling yourself a trader, you called yourself a Trade Manager? This would mean that you manage trades. Therefore, there must be an active trade or you do not have a job to do. Right? So, you must pull the trigger on a trade, or else you cannot manage it. Once the trade is open and you are managing it, then if it shows signs of not performing, then you manage it by closing it.

Trading is a business right? And you are your own boss, so you are the Manager, yes? Technically, you really are managing trades, so why not give yourself the title of Trade Manager? No, not trading manager...TRADE MANAGER You manage trades as only YOU can do

Remember, if there is no trade, then you have no job since your job is to manage trades. I hope this makes sense, and maybe the new title can motivate you to open and close trades with more clarity and purpose. Hey, you still reading? Get to managing

Fantastic. I saw a 3 part series called Million Dollar Traders - it's about a hedge fund manager, Lex Van Dam who tries to teach ordinary people to become successful traders. Long story short, into the show one woman hadn't opened any trades at all after being told by the hedge fund manager that everyone must get into the market and start trading. I think for her it was fear and uncertainty. But you're spot on - I've even been guilty of not pulling the trigger (literally 2 days ago) on a perfect 0 draw down trade that would have netted 70-100 pips. But if you get yourself into the correct mindset, fear and uncertainty shouldn't hinder your trading.

Not to detract from the thread, but if anyone is interested in the show I mentioned, search 'Million Dollar Traders (Full Series 1 of 3)' on youtube. It's a great watch.

Subscribed dkrock, great thread, loving the proverbs you post.

Thanks. I remember seeing that video a few years ago. Yeah, the woman had problems pulling the trigger, but everyone else had problems winning trades, lol. While it is entertaining, the overall theme is negative. As far as I could tell, none of them received any training and none of them were any good at trading. So, it was wasted money. My guess is that the "Lex" fellow isn't any good at trading either, so he was doing this "experiment" to hope to find a trading method, LOL. Just my opinion. Anyone can "claim" to be anything, you know? I once attended a seminar with some "Wall Street Guru" who was considered a guru because he had a 7% account growth...over a full year!!!! Apparently, a 25% growth trader is like a king. Hmm. I am not impressed. The guy that runs the Sure Fire Trading forum did the same thing as Lex basically, only he didn't risk any of his money upfront. He holds contests to see who can trade the best, as long as you disclose your method to him. Isn't that wonderful? Of course, if the Million Dollar Traders video showed any successful traders, then it wouldn't be out there to watch. Hmm, now I sound negative. Anyway, it does show why trading stocks is wayyyyy too time consuming and expensive Stick with Forex where we make 1000's% a year Ha, in a month

While I am at it, what is the point of trading other people's money anyway? I guess if you intend to lose, but want to take a chance on winning, you would use someone else's money to risk. Otherwise, when you are a winning trader, but trade someone else's money, you are just giving them your profit. You can just as easily just write them a check or transfer some money over to them. Same thing. So, apparently, the idea of a hedge manager is inherently for so-so or iffy traders who are not good enough to trade their own money. I don't know how they sleep at night? Must be why they jump out of buildings and do so many drugs?

Thank you for your post.

It's not a video for inspiration - it's more just an insight.

Also being an experiment, I don't think his intention was to find a trading method lol I sure as hell wouldn't put $1million up for that. In saying that, having a read of Lex's wiki page and his credentials I'm sure he can trade/invest? (in his own right), but that's not to say he didn't create this tv mini series for no personal gain (after the show he set up his own 'trading academy' and released some books)

But as mentioned trading and investing in equities is a slow process, needing large funds to gain any sort of substantial return. Currencies on the other hand are obviously much more rewarding however unforgiving when traded incorrectly.

I guess when it comes to trading securities and investing (long/medium term), you need equity, and lots of it. Hence at a fund they have huge sums to play with. Yes, it's not their own money, but if they (can) trade, the dollar figures going into their pockets would be higher then using their piggy bank savings to trade with.

I could not remember the password to my old blog, so I made a new one. I moved each of my proverbs to it. Not sure if I will import much of the older posts because some are proverbs now. Also I created a page to track my new 1M system I developed this summer. The demo is finished, so I am taking it live with a testing account. I do not have a live meta trader account, so cannot use ff's tool. I am skeptical of brokers, lol, so the less they know, the less they are likely to hack.

The new blog is at http://lydiaforextrading.blogspot.com/ and also per the link on my ff home page. No ads on my blog, but I do have a pretty cool charting gadget I just put the new site together yesterday so it is still growing. Please check it out and click on follow. I will still come to ff now and then, but since most traders here use support/resistance lines for entries/exits, fantasy profit targets/stop losses, and ridiculous money management rules because their method is not reliable nor consistent...we don't have much in common. If you are a reader of my thread and are interested in my techniques, then you should consider meeting me at my blog.

Hi.dkrock, is there any chance of posting the multi time frame coloured candle indicator you talk about,i cant seem to find it. Thanks either way. Cheers

Some real gems in this thread. Thank you DKrock...hope to see you back here again soon!

Very informative stuff. I am new into Vel-Acc thing. thanks DK you realy rock.

Not a very good student sorry to say. Appears that this should have been at least 3 trades not one. I am still in a higher TF mindset.

Question: apparently, you do not follow the rule that MACD and MAs have to be below zero to take a short, or above zero to take a long. You just wait for a crossover no matter where (<0>), and take a trade. Is this correct? Could you then show on your chart where the other two trades should have been? Thank you.

I must have missed that rule. As a matter of fact I dont recall many rules at all in this thread. I will re-read it.

My sub window is 3 ma's and cci.

Read the blog that helps thanks. Is there a link to 1m system mentioned?

MACD candles if anyone is interested.

A zero line cross alert would be helpful.

Bad exit, I know. 15 pips.

27 pips on GJ

Hi Jhlewis,

Great looking chart...

...also love this thread and some of the things that I have gleaned from it...

Here is my own chart that I have created based on the concepts taught here...

Looks good keep us updated on how it works out for you.

Many great words of wisdom. Thank you for sharing your thoughts with us!

19 pips here.