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brain storming - everyone please join us :)

  • #41
  • Nov 28, 2015 9:26pm Nov 28, 2015 9:26pm
1. Reduce the size of the lot
2. Stop-loss at right place
3. Don't recede from trading plan
4. MM
5. Don't trade during NFP
6. Don't trade with a strong market volatility
7. Analytics

I'm agreed with u all,and don't forget to
8. WD consistent too

what does it mean profit a lot if we do not enjoy,,
sorry if my English mess!!
  • #42
  • Nov 29, 2015 2:03pm Nov 29, 2015 2:03pm
Quoting alphaomega
{quote} Who talks about mind frames here? $100? This is just example....... Seriously, read carefully, and you might learn something! (You may save yourself from a lot of trouble in the future!) This is THE BEST WAY to limit risk. You should NEVER put your whole trading capital inside a broker/trading account! Yeah, maybe if you manage just a few thousand it's not a problem.... But when you manage over 100k ,500K, 1M? What if the broker goes bust tomorrow? These money are not insured! AND you don't earn anything on them, they will just sit...
seriously, chill out, it's all good

i consider mind frames when you go in with throw away money into a high leveraged account where you need a high win rate on a day to day basis because the leverage is gonna eat you up on a losing streak.

and sitting on blue chip stocks is not speculation in your book?

anyway, if that's your style, it's cool
Invincibility lies in the defence, the possibility of victory in the attack
  • #43
  • Nov 29, 2015 2:19pm Nov 29, 2015 2:19pm
Quoting DaGrizlyBull
{quote} Ignore this, it's passed on BS .
And you are qualified to shoot down a brainstorming session how?
The people I work with actually only have about three good ideas a year and make sure they play those to the hilt.
Those three ideas make up about 80% of their annual returns.
But that's ok, keep perpetuating the myth that scalping a million times a month is worth the effort, B Book brokers really appreciate you for that!
  • #44
  • Nov 30, 2015 4:53am Nov 30, 2015 4:53am
Quoting Hyperion
{quote} And you are qualified to shoot down a brainstorming session how? The people I work with actually only have about three good ideas a year and make sure they play those to the hilt. Those three ideas make up about 80% of their annual returns. But that's ok, keep perpetuating the myth that scalping a million times a month is worth the effort, B Book brokers really appreciate you for that!
We are not Warren Buffets who look to make small gains on huge capital. Setting yourself a max amount of trades is dumb, you trade what your method tells you to , day in, day out.
I don't need easy. I just need possible.
  • #45
  • Nov 30, 2015 5:18am Nov 30, 2015 5:18am
Quoting Kilian19
{quote} Same lot size: why? If one trade is more promising than another why shouldn't I put on more risk? Or the other way around if I am not entirely sure that this trade will work out (but it still has a positive expectancy) shouldn't I risk a smaller amount than usual? R.R at least 1:1: RR and win rate are 2 variables that should not be looked at separately. How does a RR of 1 reduce risk?
Thanks dear kilianHere is some ans of rep.No one even known what is happen in next minute if so we all rich...Second R:R at least means i am okey with it or som time 1:1.5 Third same lot size is the edge.... mean it...
Trade fearless not careless...
Syed Mohsin Ali Profit This Month: -391
  • #46
  • Nov 30, 2015 8:11am Nov 30, 2015 8:11am
I'll dive in feet first ....so let me kill a few holy cows.
1. Don't set daily targets.. Once you do this and you are not on target come day end - many will be inclined to take a trade that is risky simply to make target - don't do it - its bad practice.. costs money.
2. Small account holders tend to set SL too short to save money... many of my pupils have told me that their trades were taken out only to return to their stipulated profit target. Don't reduce the SL no of pips, reduce the lot size so that you can put the SL at the right place and stay within the money management rules you apply to your strategy.
3. Don't set a stop loss at a definite number of pips... set it at a R or S level - or use the Fib where many traders will be placed - gives a better chance of reaping the reward.
4. Don't trade because that is what you like... take a trade if there is a trade. Before you enter think twice - don't go by gut feel - go by facts you can see.

Remember price action is the best indicator.

I don't agree with the writer who says that scalping is the only way to make money.. Position traders who know the game can make big money.
  • #47
  • Nov 30, 2015 2:35pm Nov 30, 2015 2:35pm
Quoting OldHand
. I don't agree with the writer who says that scalping is the only way to make money.. Position traders who know the game can make big money.
Exactly my point. Hands up anyone who has made high six figures in a year by scalping. No one I've ever known! But it doesn't really matter. This journey includes many lessons that you can't learn by reading about them.

The size of your individual trade profit is a major factor in reducing risk. When you put on a trade and your expectation is for at least 100pts if not 250pt, then it doesn't even feel like you're taking any risk when you take a trade that's worth taking.................
  • #48
  • Edited 12:41pm Dec 5, 2018 12:28pm | Edited 12:41pm
Quoting Hyperion
{quote} Exactly my point. Hands up anyone who has made high six figures in a year by scalping. No one I've ever known! But it doesn't really matter. This journey includes many lessons that you can't learn by reading about them. The size of your individual trade profit is a major factor in reducing risk. When you put on a trade and your expectation is for at least 100pts if not 250pt, then it doesn't even feel like you're taking any risk when you take a trade that's worth taking.................
Here it is that 7 figure scalper im following in certaing platform with cent account (now for 3 months) he trades aprocimatly for 7 pips per trade etc etc he is a sclaper and is in top, if we can't do something (including me) dosen't mean that dont exist!
I em amazaed by his dicipline really!
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  • #49
  • Dec 5, 2018 12:38pm Dec 5, 2018 12:38pm
Quoting alphaomega
How to reduce the risk in trading? The easiest way to reduce the risk is to trade very small size! Or to stop trading altogether.(this way you will never lose a single cent) But if you want to make money (big money) with low risk, there is only one way! Follow these steps: 1. You need good accuracy in order to manage the risk well, and you need high trading frequency in order to accumulate and compound your capital efficiently and at a faster rate. All this means - Forget about long term trading, forget about swing trading, forget about the...
Simiral plan by friend of mine who have suceed to do the same for several times 1000 to 10 K with some extra rules but same logic... i belive in these mindset but in front is ech and every one from us...
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  • #50
  • May 21, 2019 10:52am May 21, 2019 10:52am
Quoting alphaomega
How to reduce the risk in trading? The easiest way to reduce the risk is to trade very small size! Or to stop trading altogether.(this way you will never lose a single cent) But if you want to make money (big money) with low risk, there is only one way! Follow these steps: 1. You need good accuracy in order to manage the risk well, and you need high trading frequency in order to accumulate and compound your capital efficiently and at a faster rate. All this means - Forget about long term trading, forget about swing trading, forget about the...
I have done it and so I can say it is doable.
I have no Excel skills.
Can you please revise it incorporating your risk management model at your own convenience.
Thank you.
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Practice makes a person perfect
  • #51
  • Last Post: Sep 1, 2019 9:02pm Sep 1, 2019 9:02pm
Some of the point may sound over ambitious here but that's what I have learned so far from trading in last 9 years:

 

  1. Don't set targets (like $200 per day) or don't set expectations (related to earning) or profit loss ratio (like 1:2, 1:3 etc). Remember you don't drive market, market drives you. Even big investors and companies go bankrupt in share market. Learn to trade without expectations, everyday is different. Every opportunity is different. Some day you can lose $200 while other day you can make $10,000 in a day.
  2. Don't do long investment based on market recommendation/word to mouth. I will explain that in a example below*
  3. Remember options and future is a contract so there is no buy limit. That's where daily profit for big investment companies come from. Don't fool yourself by assuming that their prices are not manipulated by big investment companies.
  4. Don't completely rely on indicators. Chart is a result of share market so share market creates chart.. chart does not make share market.
  5. Don't trade on more than 4-5 stocks/options/future. Choose your favorite stocks and deal with them everyday. Trust me, one day you won't need any indicator to predict the moment. Your eyes will understand them in one look.
  6. If you are losing your money in share market constantly then either start educating yourself or completely remove yourself from trading. It may not be a game for you. Don't hustle and lose more money, there is something which you are missing which needs to be required for trading.
  7. Trading is different from investment. Don't mix them. Investment requires study and trading requires experience.


Story* : Lets assume that a investment company (IC) bought 1,000,000 shares from options/futures (they can literally buy those many contracts but they are contracts and not limited by volumes and are very less in price compared to share). Now when they bought the contracts the price of contract was $5 per share and share price was $150.
Fast forward to the day on expiry, now at this time share price is $148 and contract price is $7 per share. which is a loss of of $3 per share. Now IC will buy 100,000 shares of the same stock at $148 (if their marketing fails - I'll explain how they do it in a different example).. so now the contract price is raised from $7 to $12. They can now safely sell their contracts at $2 or more and earn a lot of money ($2,000,000).. but wait now share price is reduced to $144 .. so here they are in loss of $4 per share ($400,000). At this point they are in profit of $2,000,000 - $400,000 = $1,600,00. Now, their investment skills comes in the picture (+ more marketing). They have done studies before on the fundamental and these $400, 000 is their investment money. So, they can now rely on their investment to give 1-5% return based on their pre-determined strategy which eventually give them profit of $3,000,000 from this transaction.

So, does this sound simple? No, because there are other big players in the market as well and they both don't want to lose money. But they do these kinds of things to generate huge profit, I've many other real life situation strategy example like this.

What is our learning from this story? Retail investor can't drive market, train yourself to follow the trend and be ready for the change in the trend unexpectedly.

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