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What are your most profitable rules in your trading plan?

  • #21
  • May 31, 2015 1:34am May 31, 2015 1:34am
Quoting stan255
{quote} I still think the entry is much more important than the exit because if your entry is bad no matter how good your exit is your probability of profit is low. It's like using a bad trading plan with excellent mm, you will still lose money. Just slower. What's your thought process or experience that makes you think that exits and more important than entries? {quote} What do you use to identify and determine a trend in an economic trend?
I would agree. Exits are about keeping loss low and capturing gain before it evaporates. Entries define whether there is going to be enough to capture so that gains outstrip losses. However, bad exit strategy can totally destroy any positive expectancy built-in within entry strategy.
  • #22
  • May 31, 2015 2:22am May 31, 2015 2:22am
having enough statistical data to Know your trading plan Is profitable in the first place.
  • #23
  • May 31, 2015 2:36am May 31, 2015 2:36am
If you cannot control your emotions, you cannot control your money- Warren Buffet. It's is very true in my case. Yes i realised in my trading behaviour and I lost my account many times. Entering and existing the trade in right opportunity without emotions is important for profitable trade.
  • #24
  • May 31, 2015 5:06am May 31, 2015 5:06am
Quoting stan255
What do you use to identify and determine a trend in an economic trend?
I use longer term charts of economic indicators from tradingeconomics.com. The difference between economic (fundamental) indicators and technical indicators, is that trends feed each other and respond to each other. GDP growth creates jobs, lowering unemployment, more people working means people spend more, which pushes GDP even higher, creating even more jobs pushing GDP higher again, etc etc.

That is just one example of two indicators responding to each other, but there are dozens of such causal relationships. That is why fundamental indicators form long, clean, steady trends which last for a very long time making the next move very predictable, unlike technical trends which whipsaw all over the place.

If a country's GDP growth is high, unemployment is falling, inflation increasing, retail sales, business confidence, consumer confidence etc are all positive, those indicators will keep pushing each other higher - making it a good bet that in the future, that country's currency will be more valuable than it is now. Like I said that is the biggest edge I have found, and those causal links don't exist in any form of technical analysis that I am aware of.
si hoc legere scis nimium eruditionis habes
  • #25
  • May 31, 2015 9:25am May 31, 2015 9:25am
Stan255

I think of risk not profit.

I can control risk in the present but i have no control over the profits because they are in the future.

Concentrate on your Risk. Calculate your entry point and stop based on your risk tolerance.

Speedy
  • #26
  • May 31, 2015 8:10pm May 31, 2015 8:10pm
For me the most profitable rules are :

1. Always take care of risk. Profit will follow.
2. Cut position as soon as analysis is proved wrong by the market.
3. Being aggressive when I get the direction right.
4. Always be nimble so that you can adapt to changing market conditions.
  • #27
  • May 31, 2015 8:14pm May 31, 2015 8:14pm
Only trade with the trend.

Define and manage your risk.

Be aggressive with winners.

Don't worry about indicators, just watch levels of S/R.
  • #28
  • May 31, 2015 8:29pm May 31, 2015 8:29pm
Quoting grin
{quote} I would agree. Exits are about keeping loss low and capturing gain before it evaporates. Entries define whether there is going to be enough to capture so that gains outstrip losses. However, bad exit strategy can totally destroy any positive expectancy built-in within entry strategy.
Definitely, I tried 1 of my strategies and it was losing money. I looked back and found that a majority of my positions I could have either:-
1. Close out for a small profit
2. Move stops to breakeven on a certain number of pips.

If I were to do either of those 2, those trades would be breakeven or profitable.

Quoting nafis
For me the most profitable rules are : 3. Being aggressive when I get the direction right.
How do you average up your positions and what do you determine if your direction is right and not a retracement or trend reversal?



Quoting numbnuts
{quote} I use longer term charts of economic indicators from tradingeconomics.com.
On average, how long do you hold your trades for?
  • #29
  • May 31, 2015 8:39pm May 31, 2015 8:39pm
There are a few ways I do this.

1. Firstly if there is a massive change in fundamentals, say there is a rate cut when the market is not expecting or NFP numbers are a big risk or some other kind of fundamental events. In other words I try to gauge the potential of the move then add my position. One trick I use is I always put a stop loss on the last trade at BE before I initiate a new trade when stacking. And also I try to space them out at key levels.

2. The second way I do this is I watch breakouts. If one of the breakouts turns into a false breakout I am waiting on the sideline to pounce on this opportunity. Again I closely monitor my risk so when something is wrong I am the first one out

3. If price is bouncing off a key S/R zone and the distance to next S/R is quite large. Again they provide some nice stacking opportunity but as soon as I see I am wrong I RUN.

Hope this helps.
  • #30
  • Jun 1, 2015 1:48am Jun 1, 2015 1:48am
My rules are for the overall trading plan;

Be PATIENT- wait for your setup/s happened to me a few times where I would trade make a profit then sit there bored waiting then I would just start speculating and try to formulate a new opportunity for an entry and this new entry I didn't know much about e.g chance of success/Likely profit target/ stop loss level etc... I just wanted to be in a trade.

All WORK NO FUN- Balance in trading and thus in you're life is needed this I think personally is extremely important, the last time I traded was last year and I did it full time I tired committing myself to about 5hrs a day (anything to do with trading) which then blew out to about 10-12 hour days - including weekends I was very motivated to work hard or consumed by it and found it hard to switch off, and the only exit I saw after taking a few losses was too risk my whole trading account to recoup the losses i.e I was not PATIENT..... So basically a balance in life, so what I am trying to do at the moment is eat/sleep well, exercise (was ment to join gym few weeks ago but this week for sure) my belief is that if you have a good balance then you will be running at your peak levels, be able to handle emotions better, and make/create better trading opportunities/decisions.

I have started trading full time again, started last week haven't placed any trades yet just going through trading plan and catching up on all I missed since my last time and trying to implement these two new rules into my trading this time round
  • #31
  • Jun 1, 2015 2:15am Jun 1, 2015 2:15am
the most important sign for me is the volume of transactions in middle run period of any stock
price is after that !
  • #32
  • Jun 6, 2015 11:01am Jun 6, 2015 11:01am
Quoting nafis
There are a few ways I do this. 1. Firstly if there is a massive change in fundamentals, say there is a rate cut when the market is not expecting or NFP numbers are a big risk or some other kind of fundamental events. In other words I try to gauge the potential of the move then add my position. One trick I use is I always put a stop loss on the last trade at BE before I initiate a new trade when stacking. And also I try to space them out at key levels. 2. The second way I do this is I watch breakouts. If one of the breakouts turns into a false breakout...

Wonderful
Buying the currency being demanded Selling that being supplied
  • #33
  • Jun 6, 2015 11:31am Jun 6, 2015 11:31am
I would say

1. Find a solid trend, fundamentally ( which central bank is threatening to maintain, cut or raise rates) , Technically ( higher highs and higher lows)
2. Always Look out for technical retracement in that trend to limit risk
3. choose a trigger usually price action at support /resistance to enter in direction of the trend.
4. Limit your risk and look for a reward such that even if your wrong seven times out of ten you still make a profit.

Always pay attention to fundamentals, ECB QE ( caused CHF shock), FEDS raising rate ???, Abenomics , anybody who tells you fundamentals are not important is telling you to stand in front of a bus cause there is a slight chance you would survive the hit if wearing a helmet.
Buying the currency being demanded Selling that being supplied
  • #34
  • Jun 6, 2015 11:44am Jun 6, 2015 11:44am
patience and discipline.
The Market pays you to be disciplined
  • #35
  • Jun 6, 2015 1:06pm Jun 6, 2015 1:06pm
moving average
  • #36
  • Jun 6, 2015 4:24pm Jun 6, 2015 4:24pm
One thing which has really helped me last week which I have only just started to incorporate into my trading (... yeh I know), is to look at the higher time frames and to make sure i'm not buying at resistance or selling at support, something which I no doubt did far too many times in the past when being fixated on a single timeframe.
  • #37
  • Last Post: Jun 6, 2015 4:51pm Jun 6, 2015 4:51pm
MOST profitable rule(s) would be to focus on risk and minimizing what your risk is! Ex : trading with the lowest possible spread, having 1 millisecond ping is best but 50-80 will generally do also. And not getting slippage, make sure you have execution time less than half a second. After this profit can follow.
All posts are my personal opinion
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