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Forex Trading Philosophy

  • #321
  • Dec 14, 2015 3:56am Dec 14, 2015 3:56am
Quoting TooSlow
{quote} My preference is to use the same risk size. Position size is computed from risk and stop loss.
This type of tradeing is very stressful but same lot size and same risk makes u some comfortable and some space for trade (market noise).
Trade fearless not careless...
Syed Mohsin Ali Profit This Month: -392
  • #322
  • Dec 14, 2015 9:01am Dec 14, 2015 9:01am
Quoting mohsinali
{quote} This type of tradeing is very stressful but same lot size and same risk makes u some comfortable and some space for trade (market noise).
Lots size and risk are not the same things.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #323
  • Jan 10, 2016 4:21am Jan 10, 2016 4:21am
Quoting TooSlow
{quote} Lots size and risk are not the same things.
I mean that u should decide ehat lot size is suite and also risk size and then stick to it until u got double your equity.
Trade fearless not careless...
Syed Mohsin Ali Profit This Month: -392
  • #324
  • Feb 2, 2016 4:01pm Feb 2, 2016 4:01pm
Quoting mohsinali
{quote} I mean that u should decide ehat lot size is suite and also risk size and then stick to it until u got double your equity.
What about if you increase your equity by say 30%, should I not then compound by increasing my lot size/risk also by 30%? Thanks for your help.
  • #325
  • Feb 2, 2016 7:55pm Feb 2, 2016 7:55pm
Quoting TheGreatMilenko
{quote} What about if you increase your equity by say 30%, should I not then compound by increasing my lot size/risk also by 30%? Thanks for your help.

In my book... NO

I risk a set percentage of the account for each position. Regardless of account size or growth.
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #326
  • Feb 3, 2016 6:09am Feb 3, 2016 6:09am
Quoting Rufus
{quote} In my book... NO I risk a set percentage of the account for each position. Regardless of account size or growth.
That would mean yes. Not no.
  • #327
  • Feb 3, 2016 6:58am Feb 3, 2016 6:58am
Quoting TheGreatMilenko
{quote} What about if you increase your equity by say 30%, should I not then compound by increasing my lot size/risk also by 30%? Thanks for your help.
Yes but it is better to double your allocated account to increse i mean double the lot size.Suppose u allocate 200 dollers for 1 lot then stuck to one lot until u got 200 doller profit.In 30% risk of d.d is much more.
Trade fearless not careless...
Syed Mohsin Ali Profit This Month: -392
  • #328
  • Feb 3, 2016 7:02am Feb 3, 2016 7:02am
Slow and study wins the race...
Trade fearless not careless...
Syed Mohsin Ali Profit This Month: -392
  • #329
  • Feb 3, 2016 2:08pm Feb 3, 2016 2:08pm
Quoting mohsinali
{quote} Yes but it is better to double your allocated account to increse i mean double the lot size.Suppose u allocate 200 dollers for 1 lot then stuck to one lot until u got 200 doller profit.In 30% risk of d.d is much more.
Yeah. I know what you're talking about. You're talking fixed fraction and fixed ratio. Fixed ratio performs better during the first part of a growing equity curve, but fixed fraction soon overtakes. do the maths. Ryan Jones, .. blah ...blah...blah.....
  • #330
  • Oct 30, 2016 3:37am Oct 30, 2016 3:37am
Quoting arjfca
{quote} a) closing a portion of the trade at profit b) Moving your stop to brake even c) ride on a free trade Profit will be dictated by your closing price compared to your entry, not from your entry alone. The #1 goal may be to ride on a free trade ( paid by taking a profit or moving the stop to brake even. Price could go in any direction. All we need is to grab a portion of the move Martin
Can not agree with therm "free trade" ....
lets say we have price 50 pips over our buy price level, we move SL to BE and price goes back and closing trade down ....
where you have free trade? You just lost 50 pips !
  • #331
  • Nov 24, 2016 7:18am Nov 24, 2016 7:18am
Talking about trading Philosophy, Brett Steenbarger said, " Unwillingness to accept losses – This leads traders to alter their trade plans after trades have gone into the red, turning what were meant to be short-term trades into longer-term holds and transforming trades with small size into large trades by adding to losers.”
  • #332
  • Nov 28, 2016 2:50am Nov 28, 2016 2:50am
Talking about trading philosophy, a good way of avoiding fearful trading decisions is ensuring that we do not over-leverage our account, and risking only so much that when the account is wiped out, we can laugh at the outcome, and go on and seek our fortunes in another aspect of life.
  • #333
  • Nov 29, 2016 8:27am Nov 29, 2016 8:27am
Traders who are confident in their own trades, those who trust themselves to do what needs to be done without hesitation, are the ones who become successful. They no longer fear the erratic behavior of the market. They learn to focus on the information that helps them spot opportunities to make a profit, rather than focusing on the information that intensifies their fears.
  • #334
  • Nov 29, 2016 8:28am Nov 29, 2016 8:28am
Trading is.. knowing intimately your hedge and saying "no" everytime the market shows you a move that doesn't fit your entry rules.
Learn to say no is as important as saying yes.
Learn to don't take a trade is as important as taking a trade.

Alex
  • #335
  • Dec 4, 2016 4:06pm Dec 4, 2016 4:06pm
Risk management cannot be overemphasized. Practical money management is integral to your success a forex trader - you won’t last long in the market without it. Every trade you take inherently has some element of risk. Managing these risks in a sensible way will certainly help to keep you in the game longer.
  • #336
  • Dec 5, 2016 1:51am Dec 5, 2016 1:51am
never play macho man with the market
never over trading.

Inserted Video
  • #337
  • Dec 5, 2016 3:44am Dec 5, 2016 3:44am

UNCERTAINTY


When it comes to money this word gets its highest and strongest power, because of all the psychological issues that money awakes in each human being.
I think trading is so difficult to learn because when we put money and uncertainty all together something in the mind immediately reacts and unables people from thinking how they should think: so they all end up "trading not to lose instead of trading to win" - quoting a great CP's sentence here -.

I understand the words "trading not to lose" as the vain attempt to make certain what is uncertain.
There is a big lag between noob traders approach to trading and market environment: most of them keep on thinking in terms of right or wrong, meanwhile market is just a world of possibilities: there is no right no wrong.
So what? which is the point of trying to be right when there is no right nor wrong?
This is the hardest psychological issue that must be overcome and requires a radical shift of mindset.
This apparentely little difference in perspective is strongly conditioning and affecting the hole thinking process of a trader, from reading price action to adding some indicators for a better understanding and to building a correct risk management strategy and to decision making process: in other words it affects the hole trading process and therefore final results.

Those results will be exactly the ones that the noob trader is struggling to avoid: losses.
This is one of the strongest and most unknown natural laws: as you believe in your heart, so it will be done: this is the law of life and of living.

I understand the words "trade to win" as the solution to the above big issue:
trying to make certain what is uncertain, that is to say trying to predict, trying to confirm, trying to be right, is fool!
There is no way to make it, but there is the way to be safe even in an uncertain environment: do not avoid uncertainty, manage it.
Therefore it is not a fancy trading system that will make you a pips reaper but the risk management strategy you use, supposed you have one.
Finally, i want to make it clear right now: i'm not speaking of money management but risk management: the difference is huge, although they both must play all together: money and risk management are two different things but they cannot exist without one another.
How to make it? stop thinking in terms of right/wrong and begin to think in terms of possibilities, it's that simple.
  • #338
  • Dec 6, 2016 1:37pm Dec 6, 2016 1:37pm
Trading is like relationship – getting in is easy, but the hard part is getting out.” Peter Borish
  • #339
  • Dec 7, 2016 7:21am Dec 7, 2016 7:21am
Every winner needs to master three essential components of trading; a sound individual psychology, a logical trading system, and good money management. These essentials are like three legs of a stool – remove one and the stool will fall, together with the person who sits on it. Losers try to build a stool with only one leg, or two at the most. They usually focus exclusively on trading systems. Your trades must be based on clearly defined rules. You have to analyze your feelings as you trade, to make sure that your decisions are intellectually sound. You have to structure your money management so that no string of losses can kick you out of the game.
  • #340
  • Dec 7, 2016 7:22am Dec 7, 2016 7:22am
Jeff Yass said "The basic concept that applies to both poker and trading is that the primary object is not winning the most hands, but rather maximizing your gains.”
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