Another simple system - Time-Frame 15

Allow me to share a story which I posted on TMS M30 Charts thread. This is what may happen due to poor spending habits and trading burn-out. I would like to avoid this.


There once was a man (John) with a wife (Linda) and two kids living in California, USA. John and Linda both worked and made about $12000.00 a month and had a nice life. John got interested in trading. After many years of sweat and tears, he finally started to make money in trading. John saved and grew his trading account to a point that he started to replace his income. So John quit his job and became a full-time trader. After a while John took out his retirement money and added it to his trading account. Now his trading account stood at $400,000.00 and he was making a return of 5% per month so his monthly income grew to $20,000.00 per month. As a result, Linda quit her job as well.

As their income grew so did their spending habits. Bigger house, shiny new BMW, Big Boat, HD motorcycle and nicer everything and spent most of their income from trading. Now fast forward ten years. John continued to make 5% per month. After 10 years of trading, John is completely burnt out and hates to trade, yes it could happen. He needs a minimum of $20,000.00 to continue living his current lifestyle. If he had compounded part of his winnings for those 10 years and reduced his spending habits, he could have retired by now.

"Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it."

Albert Einstein

I am not part of your thread. I do not know your strategy. I was browsing FF, saw your post, and it didn't make sense to me. That is all.

Since there is no compounding interest in trading Forex, you compound by increasing lot size, increasing currency pairs, increasing number of trades by trading multiple time frames, or teach your technique to someone else and use a trade copier to gain profit from their trades.

I was only commenting about your business plan, not your trading plan. Good Luck

Thanks for the clarification. I later on got your BS reference and deleted it from my post and also the post that I mentioned you by name regarding attacking me, we are good. I guess there are things that get lost in translation when communicating via this format. I thank you for sharing your business planning ideas, it is worth its weight in Gold. As an Ex 8 year successful business owner, I do believe in planning and have written down my mission statement with milestones to be reached by certain dates.

I am not dropping M5 trading, just reduced its frequency to measure the effectiveness of the new methods and then execute the next phase of my trading plan. This part of the year until the end of year is a great time to re-evaluate trading models. It is like I own a store that is only selling one item. Now, I have added two more items to my inventory to reduce my reliance on being a one item store ( one trick pony) business model. If the 2 new items fail, I still have my one original item. No reason to burn the store down. Happy Pipping to you dkrock.

Thanks for your explanation. I am not the thread owner just a humble poster. My story about John and Linda was the story about a guy trading Futures and options. You are absolutely correct about compounding interest. I didn't dare to change that famous quote from compounding interest to compounding since it wasn't what Mr. Einstein had originally said.

FYI, I have split my funds into 3 and am trading them across 3 different brokers for Fund Safety .

The part below isn't directed at you dkrock.

I hope that I don't get somebody saying:" You are an idiot for doing that, my broker is the safest broker in the Word." " Post a Live Trade explorer." "Post live signals." " You have an agenda and want to sell things and cheat newbies." " People be aware, he is a scammer."

I have absolutely zero commercial interest and have no desire ever to join your Skype group, any trading group, nor trade your money, sell trading signals nor teach 101. Don't even bother to ask.

I think that I have shared more than enough about my current and future plans.

It is amazing how some important details in posts get ignored (lost) and I must admit that I have been guilty of that many times. We quickly skim a post and then react.

I never said that I was abandoning M5 trading for good. This from post #26,050 " Now, I have reduced the number of my trades on M5 to only one or at the most 2 per day."

" The M5 trading provides me with the opportunity to make some extra pips while I wait for my position building trades to mature.

I also mentioned this on the same post # 26,050 " I also trade TMS M30 charts and do position trading. Well, TMS M30 Charts trading is a very similar trading system with less indicators as the system presented here.

I used the term two new methods when in actuality the multiple position trading is the completely new to me method and the TMS M30 Charts trading system is a somewhat modified version of this method. Not new but more of an evolution.

Can this method be successfully traded across many different TFs? The answer is YES.

Can your return expectancy be the same trading different TFs? NO.

For example, lets say that I trade 10 standard lots EU M5 charts with a SL and TP of 10 pips and I move my SL to BE after +5 pips in profit (just for the sake of illustration). 7 Wins, 2 losses and 1 BE is the result of my trading, so I make $5,000.

Same scenario on a higher TF, EU M30 charts. I trade 2 standard lots (reduced trading size due to higher SL) with a SL and TP of 50 pips and I move my SL to BE after +25 pips in profit. Same result, 7 Wins, 2 losses and 1 BE, so I make the same $5000.

Well, it doesn't work quite like that in the real trading world, due to increased or decreased volatility and many other factors and events. The number of BE trades will increase. As you move to even higher TFs this phenomena becomes more pronounced.

You can let your winners run, don't move your SL to BE and do many other things but that isn't the core system model that I trade here. I hope this clears things up. I am out.

pipsninja..that is the spirit.i want to see your posting ..learn and 5m set up too b/c we want to learn different system ..method ..some may like some may not ..but you do what you like.what is giving you pips.....comfort..suits you... .this way or that way our destinations is same...gain/achieve success.

On a very somber note. My condolences to the families, loved ones and people of France. May those who perished rest in peace.

Not a problem. There is nothing wrong with innovation. You are smart to maintain an income stream while you explore alternatives. Good Luck.

Thank you for the compliment. I studied your LFX Trading Proverbs thread, it is a must read.

You are welcome and thanks. Do your thing

Hello all, I hope everyone is having a good weekend and resting up for trading the upcoming week. I would like to say that we all here for one thing to improve our trading skills, and most of us are here to help each other on that journey to financial freedom. This thread are not here to flex your ego with one another. I don't see the point of this fight that is happening on FF as I have been reading in this past days and it don't look good at all, this seem like a miscommunication and I believe we all have good intentions. Hearing about all this wars and terrors in the world is bad enough, we here in virtual world fighting in a thread that suppose to help and improve traders everywhere and future traders to come. It's sadden me to see this happening please respect this thread and other traders of their opinions, we all have a time limit in life don't spend it bickering and hating. I came to FF because of LE1 giving loving and sharing ways that I so respect and am working to do that within every aspect of my life.

Lets start this week like how LE1 intended, we need more love and giving in this world, we are all brothers and sisters living together on this planet. Don't forget to give back to the less unfortunate people, we are all one.

God bless you all,
Meihk

Very true Meihk. Lets move on.

I have received a few pms regrading the way I trade M5. The statements below are based upon my own experiences and teachings shared on this thread by some great traders. I take no credit.

Update: I added a few more points to this post.

.) If you are new to trading, you shouldn't trade M5.

.) Trading M5 is a very difficult way of making a living for most.

.) If you haven't achieved any type of progress in trading higher TFs and other trading systems, jumping to M5 trading won't make you money.

.) If you need to make money right away form M5 trading, you will likely fail.

.) Study the material that I am going to provide.

.) You have got to put in the time studying. I used to study up to 12-14 hours per day, 6-7 days a week. I still study.

.) Study posted trade charts and try to find the patterns that seem to work often. Patterns do repeat, print them out and memorize them.

.) There are no short-cuts.

.) Don't rush, take your time, the market will be here tomorrow.

.) Write a business plan.

.) Demo first and then trade small (0.01 lot) live trades when you are ready.

.) Stop live trading for the day after suffering X (3 for me) number of losses in a row.

.) Stop Live trading for the day after achieving X number of wins or pips.

.) Review all your losing and winning trades at the end of each day and after you have gathered some data, disregard setups that give you the most losses over and over again. Find the winning patterns.

.) Sometimes the best trading decision is to just sit on your hands.

.) When in doubt regarding taking a trade setup, it is best to stand down.

.) You have got to use a SL ALWAYS.

.) Determining TP on M5 TF is more an Art than Science.

.) Price moves very quickly on M5 TF and you have got to be ready to make constant decisions while in a trade.

.) You have got to have the ability at times to cut a trade before it reaches SL and TP due to changing market conditions or lack of movement. You have got to be swift and flexible.

.) After trade entry if price doesn't move in your favor within the next few candles, it is time to get out.

.) Trading with the trend is safest.

.) Counter trend trades work more than they fail if you take them at appropriate levels.

.) It is best if you are able to watch live price action for many hours per day, especially the first few hours of London Open and New York Open.

.) Trading is unlike having a 9-5 job, you got to work on the market's schedule and not the other way around.

.) Learn when dead (low volatility) market times are and don't trade during those times.

.) Don't place a trade 30 minutes before and 15 minutes after big News.

.) You have got to accept the fact that even A+++ setups will fail at times.

.) Just take a loss and move on to the next setup.

.) I am a firm believer of the 10,000 hour rule concept in trading.

.) You have got to make extreme sacrifices to make it in trading.

.) The sad truth about trading is that out of 100 traders only a small percentage will be able to make money from trading. More psychology related than anything else.

.) There is the possibility that you may spend all this time, energy, blood, sweat, tears and resources and leave the trading arena empty-handed.

To be continued....

Study material:

1.) Read the book Trading in the Zone by Mark Douglas (RIP)

2.) Download and study the Emotion Free Trading pdf, post #22,207 on page 1111.

2.) Study at least the first 100 pages of this thread, pay extra attention to all of Loveevery1 (LE1) posts. Reading the whole thread and downloading all Price action and candlestick patterns pdfs shared here takes a lot longer but is very rewarding.

3.) Download and study the compiled pdf of X-Man's posts, post #20,971 on page 1049, additional pdfs on that post is also a good read.

4.) I posted my first M5 trade on post #22,440 page 1272, study all the way to post#26,409 on page 1303. (Typed in M10 instead of M5 on post #25,623 which I later corrected on post # 25,787)

Please don't skip any of the above steps, if you do your possibility of success is greatly reduced. It is all in this great thread for FREE, most trading concepts are in plain sight here and some take a little more digging to grasp. Some may wonder why should I study old posts and M15 charts to learn to trade the M5? That is what I did, it teaches you price action.

I am not going to post my template because after doing all of the above you can construct your own.

Happy Pipping,

THE END

Pipsninja, you are well on you way, this is one of the best threads ever.

Don't pay attention to what this Mr Ego Warrior says, I have never read any interesting from him really, his post is just a waste of time and space.

That's the reason why so many good people leave FF, it gets boring seeing this kind of comments, just because they impress every newbie, they think they have the rights to go to every thread and disrespect others. They think they know everything, but the reality is that there is more in trading than just the TDI.

Whether you make 10 pips/day or 100 pips/day, doesn't matter....... What matters is how consistent you are in taking those pips everyday

Please read post 6580 from Arjun

I won't follow this conversation any more, I have more interesting things to do in life, and working on improving my trading on my own without distractions from FF

But one advise is : Don't forget why you are trading forex. Are you trading to be the best, or are you trading to make money?

Here is an example of what you can do with only 10 pips per day in 3 days trading. Good luck

rcubic ..please give due respect to big emm and all great contributor.pipsninja already ..cool down himself and i like it so please i request all FFF dont fight ..no more ..please .
I WANT to SHARE SOMETHING TOLD/WROTE BY MASTER ARJUN ABOUT THIS THREAD AND STF /5M ..please try to understand and atleast give due respect to original creator of this thread.now you decide what you want to do....i see DAvit quit lk TMS 30 and i dont want pipsnija or any FFF leave this way .my request better you start new thread or post here ..no matter we want to learn..help each other ..respect each other .now see MASTER ARJUN AND X-MAN ALSO WANTED TO OPEN ANOTHER THREAD FOR 5M ANOTHER tms ..B/C IT HAS GREAT POTENTIAL AS SET UP ......BUT ARJUNS WANTED TO THIS THREAD AS LIKE 1ST PAGE/POST....

today's wold is so fast..complected..selfish..techno dependent ..most of the people are disturbed..indiscipline..arrogant..egoistic........ We SHOULD READ OLD POST which is my hobby ..i read all old post by my virtual mentor again and agian when i have spare time... and old post too..and see that time ..their sentiment..emotions..respect..selfless .. +attitude..eager to contribute..help....

now see what Master Arjun said.....GOD bless him and his family...

Pipsninja,

We are good. No worries. I know that name did not come from you. I got PMs forwarded to me too.
I know there are many haters out there who cannot match up to my trading skills so they resort to giving names.

Best wishes,

EMMANUEL

LETS MOVE ON , go ahead.