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Mystic's Plan Towards Trading for a Living

  • #21
  • Feb 27, 2015 8:02pm Feb 27, 2015 8:02pm
Well the weekend is here, and I am going to have a nearly forex free break.
Looking back over the week, I took some trades I'm not too proud of, and really traded pretty poorly... But still up $297 for the week (target was $360.)
Works out to 8% for the week.


Attached Image


Looking back at the last few months, I really am happy, overall, with progress. The area to concentrate effort on now is the mental aspects. The true holy grail of trading.
Holy Grail part 1. - Cut loses short.
  • #22
  • Edited 3:56pm Mar 3, 2015 3:53pm | Edited 3:56pm
How I trade.

Last night I took a couple of screen shots to sort of show how I trade.

Attached Image (click to enlarge)
Click to Enlarge Name: Capture2.PNG Size: 69 KB


This is my main MT4 account that I use for looking at the longer term time frames. These are the only indicators I have.
The candles are IT Candles, and the two squiggly lines are ALF in different time frames. These are all from Lou G's thread - ALF revisited. I have spent so many hours looking at charts with these indicators on them that I know how they work.
Down the bottom is a CCI - Real Woodies CCI. Its a guide to momentum. (If you see a reading of 300 or more, take the apposite trade - it never fails!)
The other indicator is FXI pivots. I find the pivots a very useful guide to price range.
The info panel on the top RH side is Signal Bars V7. This gives a quick guide to the daily range amongst other things.

In this chart, Price went through R1 and up through R2. When that happens, it usually returns to R1, so that gave me my price direction for the next hour or so.

Attached Image (click to enlarge)
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This is my main trading platform - No indicators at all.

I look for price to make a momentum move, slow down and prepare to reverse. I then take that reverse trade. Rinse and repeat.
In this shot I had placed a limit sell at 78109 to catch a move back up to that area. When price seemed to stall heading back up, I took a market sell at 78077 to catch the move back down. I then placed a limit buy at 78058 to close the trade as it moves down. In this case I closed this trade at market for a lesser price as it seemed to be stalling.

I am mainly just using observation of price, and experience of what might happen, gained over many years of staring at charts. Nothing I can really form into a "system" or that dreaded "EA" that some think is the holy grail of trading.
Holy Grail part 1. - Cut loses short.
  • #23
  • Mar 3, 2015 3:57pm Mar 3, 2015 3:57pm
good luck bro/sis
we don't predict, we only ride
  • #24
  • Mar 6, 2015 4:44pm Mar 6, 2015 4:44pm
Ripper week!

My best week. A real breakthrough. Up $703. The balance below is after I withdrew $500.00

Attached Image


Monday started at work with gossip that with business being so quiet, head office is looking to close the branch I work at. Just added pressure to make this effort at trading work quickly. Decided to bite the bullet and double my lot size. Well the sky did not fall down, and within two days all fear of the added size had gone. The results were a massive increase in returns. Most pleasing.
Holy Grail part 1. - Cut loses short.
  • #25
  • Mar 6, 2015 4:53pm Mar 6, 2015 4:53pm
Quoting mystic
Ripper week! My best week. A real breakthrough. Up $703. The balance below is after I withdrew $500.00 {image} Monday started at work with gossip that with business being so quiet, head office is looking to close the branch I work at. Just added pressure to make this effort at trading work quickly. Decided to bite the bullet and double my lot size. Well the sky did not fall down, and within two days all fear of the added size had gone. The results were a massive increase in returns. Most pleasing.
congratulations.

as advise please think again about doubling lot size, even our account doubling its not linear to doubling our lot size in my opinion.
we don't predict, we only ride
  • #26
  • Mar 6, 2015 5:05pm Mar 6, 2015 5:05pm
Pivots.

I am no expert on pivots, but I have had them on my charts for a few years following advice from Forexcube, a regular contributor here. One of his inspiring threads for a scalper is the TASAYC System.

http://www.forexfactory.com/showthread.php?t=325369

What I have noticed is that pivots seem to form a good predictor of future price move limits. Once price is heading toward a pivot, it will usually keep going until it touches, or breaks through, that pivot. A perfect example was on Thursday AUDUSD.

Attached Image (click to enlarge)
Click to Enlarge Name: pivot.jpg Size: 196 KB


The blue box is the time I was trading. After I closed, when New York opened, price moved up and through R1, (near yellow marks) then reversed and went straight down to touch the main pivot (blue line). With the spike up through R!, it was an almost certain that price would head back down. This would have been an easy trade to make dollars on. Definitely makes me look forward to having more time to trade.

It is well worth putting pivots on your charts. Just watch them yourself, and see.
Holy Grail part 1. - Cut loses short.
  • #27
  • Mar 6, 2015 5:16pm Mar 6, 2015 5:16pm
Quoting cakrajaya
{quote}. as advise please think again about doubling lot size, even our account doubling its not linear to doubling our lot size in my opinion.
Doubling my lot size from 0.5 to 1.0 lots was in my plan. I plan to use lot size (based on margin requirement) equal to 25% for my account size, so for account of $4000, that means $1000 margin used which equates to 1.0 lots AUDUSD.

Further to that, I allow for two trades at a time if needed, so that equates to 50% of my account used as margin. I know it's not how we are recommended to trade, but it is what I use. It does put pressure to trade well, and definitely NOT hold loosing trades.

The other aspect is that this an income producing business, not an investment. Like any business, I need to use my capital to best advantage, and having most of it sitting, unused, in my brokers account does not make good business sense.

I realise that my ideas are not conventional, but I like to try something different. I don't want to remain forever in the 95%. :-)
Holy Grail part 1. - Cut loses short.
  • #28
  • Mar 6, 2015 5:28pm Mar 6, 2015 5:28pm
Quoting mystic
{quote} Doubling my lot size from 0.5 to 1.0 lots was in my plan. I plan to use lot size (based on margin requirement) equal to 25% for my account size, so for account of $4000, that means $1000 margin used which equates to 1.0 lots AUDUSD. Further to that, I allow for two trades at a time if needed, so that equates to 50% of my account used as margin. I know it's not how we are recommended to trade, but it is what I use. It does put pressure to trade well, and definitely NOT hold loosing trades. The other aspect is that this an income producing...
yez bro, its only advise from my opinion. me too have long journey on this forex world, and now I'm more afraid of losing money from the desire to make money.
and I think that is our guardian to protect and survive in this business.
whatever it is your account, the decision is yours.
consider me as a timid friend, who remind danger
we don't predict, we only ride
  • #29
  • Mar 6, 2015 7:29pm Mar 6, 2015 7:29pm
Quoting cakrajaya
{quote consider me as a timid friend, who remind danger
Thanks. I really do understand the concern. It's just that I really need to turn this into a business - sooner rather than later. I do worry very much about protecting the account - more so than ever before. It's just determination to not fail this time. I have in the past had my own businesses, and am familiar with struggling with lack of capital, just like in forex, but unlike a normal retail business, forex offers so many benefits compared to the risk, that it just stands out a the best possible business for me at the moment.

I do consider my present style of trading a stepping stone. It is a way of getting an income quickly. Once I have that working consistently, then I can add a different style, more conventional, to form an investment source. But right now, I need a way of earning an income to replace the job, and that is my task now.
Holy Grail part 1. - Cut loses short.
  • #30
  • Mar 7, 2015 9:07pm Mar 7, 2015 9:07pm
FIFO

I've had a PM about being lucky being an Aussie to not have FIFO. Well I'm not lucky. I do have FIFO on my LMAX account. To get the account, and platform, I have to go through a US broker, and am stuck with the FIFO rules. I do have 100:1 though.

At first I really cursed FIFO. I was so used to hedging and trading within existing trades. Lost heaps because of FIFO until I adjusted my trading to the rules. Now I average down a lot. I know averaging down is not considered highly by the vocal crowd on FF, but it is a good way to work around the restrictions. (I also know it is a way to greatly increase losses if not used very carefully). I'll take some screen shots of averaging down during the week.
Holy Grail part 1. - Cut loses short.
  • #31
  • Mar 7, 2015 10:57pm Mar 7, 2015 10:57pm
Sabotage of success.

One of my barriers to trading success has been my self-sabotage of any success. I noticed it quite early. I would have a good run of trading. Build up a profit, then lose it quickly with a couple of stupid mistakes. I knew it was a program in my mind preventing me winning, and so I sought ways to work through the issues.

I did a lot of self analysis over the years, and slowly uncovered some of the issues involved. My Protestant upbringing, while not overly religious, had instilled the beliefs that the only way to wealth was through physical work a trade or profession. The path to heaven was through dedication to work, and wealth came through work and saving. A rich man could not enter the gates of heaven. These ideas had seeped into every pore of my being, and had controlled my life to then. The thought of sitting at a computer. Pushing a couple of buttons, and wealth coming forth, was against all that I had been taught. It just could not be, and my mind made sure it would never be. Breaking through this has been very hard, and I'm not sure I am fully past it yet either.

One thing that has helped get through this hurdle is the looking at the many, many hours of work it has taken me to get to this point, and the amount of cash it has cost. It is an investment in learning a trade, and now I am at a point where I can use that trade to generate my income. All well and good, but Ive noticed a further issue.....

Now I can easily see myself earning an income from trading. I cant yet see myself becoming rich.

The sabotage is still present. Just shifted in degree. I still don't consider myself worthy of being rich. The mental work never stops, but it must be done.
Holy Grail part 1. - Cut loses short.
  • #32
  • Mar 7, 2015 11:09pm Mar 7, 2015 11:09pm
Quoting mystic
Sabotage of success. One of my barriers to trading success has been my self-sabotage of any success. I noticed it quite early. I would have a good run of trading. Build up a profit, then lose it quickly with a couple of stupid mistakes. I knew it was a program in my mind preventing me winning, and so I sought ways to work through the issues. I did a lot of self analysis over the years, and slowly uncovered some of the issues involved. My Protestant upbringing, while not overly religious, had instilled the beliefs that the only way to wealth was...
maybe this simple statement can removing the barriers of your mind as a result of the lack of proper understanding of the clergy. "trading is a matter of knowledge and skill about value exchange".
value combining with dimension of time will changed, and trader is someone who have the knowledge and skill to sense (analytical etc) and take advantage of that. so basically does not require a physical reality(thing) to be traded.
we don't predict, we only ride
  • #33
  • Mar 8, 2015 11:03am Mar 8, 2015 11:03am
M.
  • #34
  • Mar 13, 2015 8:02pm Mar 13, 2015 8:02pm
Down week.

My worse week for a long time. Ended up $913 down for the week. All from lack of discipline.

Attached Image

I have a moderately successful strategy, providing I stick to it exactly. This week I did not, and paid the price.

The question was what was the reason for my self sabotage?

After much soul searching, the reason seems to be a lack of passion for any future life path I had envisioned, apart from a passion for trading. I was just moving from one OK situation to another sort-of-OK situation. No passion at all, so no need to trade well. No need for success. No need to strive to achieve.

Now the important task. To find a future life direction that has interest, desire and passion, and to use that as a focus to power my trading
Holy Grail part 1. - Cut loses short.
  • #35
  • Mar 13, 2015 9:18pm Mar 13, 2015 9:18pm
Quoting mystic
To find a future life direction that has interest, desire and passion, and to use that as a focus to power my trading
I think MO's comment (your signature) was in relation to getting set on a trade before price moves. In so much as it's not about how far price moved, but how many contracts you had built up in it before it moved.

As far as money goes, it's not about the money, but the good you can do with it. For me it would be about improving my/families life style and supporting people or organisations who give much of their time helping others. On the other hand going into a BMW showroom and sitting in your potential new car gives you something you can see, touch and feel. When you go to bed at night you can still see it, sense it, see yourself in it. lol
Good Trading
  • #36
  • Mar 14, 2015 7:37pm Mar 14, 2015 7:37pm
Quoting aud
{quote}going into a BMW showroom and sitting in your potential new car gives you something you can see, touch and feel. When you go to bed at night you can still see it, sense it, see yourself in it.
Thats a good idea!

Something I do that I find helps direct my mind is: Every morning I write a journal In it I write my 3 month goal, 3 year goal, 5 year goal, and 10 year goal. An affirmation about myself, something to be grateful for, and my to do list. By rewriting it every morning it sets my day in the direction I wish to go. I've even gone as far as to record myself saying affirmations and put it on shuffle repeat as I drive or find myself getting distracted. Two goo books I would recommend is "Think and Grow Rich" and "The Power of Habit"

I look forward to seeing your progress and trading as a full time job. It is something I am also working towards!
Best of luck!
Alex
  • #37
  • Mar 14, 2015 9:52pm Mar 14, 2015 9:52pm
it's not sabotaging, it's something flawed in your numbers if you allow a ~20% downswing to happen.
your risk of ruin is too high if you trade this way. also you cannot quantify what discipline or sabotaging mean.
my advice is to start smaller next week and work your way through some real numbers.
quantify your real edge (discipline or the lack of it are subjective variables and nothing more)!
  • #38
  • Mar 14, 2015 11:38pm Mar 14, 2015 11:38pm
my humble advise is learn, brother. forever learn, learn again from the basic about trading. what is price, what is price bars, what is time, timeframes, why timeframes, what is for,..., trend, channel, etc. and practice it smoothly calmly do not rush. because in my opinion this forex trading is not only just have "a system" and execute an order base on "a system". but this is totally hard profession, and need the best treatment.

I am forever student, never stop on learning. i am sure will achieve and become master trader.

best for you
we don't predict, we only ride
  • #39
  • Mar 15, 2015 3:44am Mar 15, 2015 3:44am
Quoting heph
it's not sabotaging, it's something flawed in your numbers if you allow a ~20% downswing to happen. !
The problem was I just left two trades open overnight. No stop other than margin call. This was something I had said I would never do again.
The setup was one I had seen many, many times, and in 95% of times, the trend would have reveresed in the first hour of the US open, and I would have been out with a nice profit. This was the 5% - No trend reversal. When I woke up and saw it, I just closed the trades. As I should have done before I went to sleep.

There were many reasons (excuses), including being dead tired, for my actions, but the key is lack of discipline. I just needed to close those trades well before, and not just walk away, hoping they would come good. This is a scalping acount, not a long term trading acount.

The sabotage is something too personal to discuss much here. I think I know most of it, and I see how it has worked in my life recently. I thought I had overcome it enough, but not so......
Holy Grail part 1. - Cut loses short.
  • #40
  • Edited 11:49am Mar 15, 2015 11:18am | Edited 11:49am
Quoting mystic
{quote} The problem was I just left two trades open overnight. No stop other than margin call. This was something I had said I would never do again. The setup was one I had seen many, many times, and in 95% of times, the trend would have reveresed in the first hour of the US open, and I would have been out with a nice profit. This was the 5% - No trend reversal. When I woke up and saw it, I just closed the trades. As I should have done before I went to sleep. There were many reasons (excuses), including being dead tired, for my actions, but the...
i know what you say because i did it too in the past.
what i tried to say was that you should factor the lack of discipline or sabotaging in your trading.
like: because i happen to be tired, because i sporadically lack the discipline, etc. this is my new system, these are my numbers.
and do better from there.
sabotaging for me was another instance where i didn't take responsibility for my results.
hope you're a better man than me :-)
have a good and prosperous week!
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