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The Trader's Academy - by Traders for Traders
{quote} Yes you do. In the beginning use smaller lot sizes until you figure the right strategy out that suits you. When you do that long enough, you will hit the right entries with much less stop loss then before. You'll see. Smaller lot sizes don't hurt you as much as bigger ones do, so start with that. D.
- #829
- Edited 3:24am Feb 18, 2016 3:07am | Edited 3:24am
- Joined May 2012 | Status: ... | 1,925 Posts
{quote} What works is trading a higher timeframe (H1, H4 or D1). With those kinda timeframes you have the time to look at your currencies that you trade only once in a while and miss not so much as if you would trade in a 1 min, 5 min or 15 min timeframe. That also gives you time to study more about becoming a better trader, better strategies and different Setups that you can trade. D.
The trade's been and gone but that's not what's important. What's important is "being there" with the market in real time as things happen/setup. I believe that learning to trade by watching higher timeframes not only prevents this but is actually detrimental to a person's trading development because the decent setups are so few and far between and take so long to mature. Repetition really is the mother of invention. And the level of repetition a person needs before really starting to understand how these markets move can only come about by being there with the market, day in, day out, on intra day timeframes. I don't mean to sound harsh but it's a fact of life people with limited time to invest don't wish to hear - but it's still a fact of life nevertheless.
EDIT:
At this point on the H1 we can see that the market is trying to make a retrace. Price closed above the last swing high, came back and tested the origin of the move and is now pushing for higher. The retest of that move took 18 or so candles, i.e. 18 hours waiting. In my experience, after 18 hours I've usually forgotten what it was I was waiting for.
- #830
- Feb 18, 2016 3:28am Feb 18, 2016 3:28am
- Joined Oct 2012 | Status: Trade Small, Win Big | 4,988 Posts
If you are good at something, never do it for free--Joker
- #836
- Feb 18, 2016 4:56am Feb 18, 2016 4:56am
- Joined May 2012 | Status: ... | 1,925 Posts
{quote} The whole thing is a learning process. If you tell a child not to touch the hot plate, eventually it will touch the plate and burn it self. That is human natur. Some traders just have to touch the hot plate. When you start with trading it all is so magically and all you see are opportunities to make lots of money. But reality always looks different. (the hot plate) You just can't safe everybody. D.
Obviously a trader on leverage needs to manage his risk in the same way he'd look after his own baby. But the mindset thing, as you've alluded, is all important, critical in fact, and all about working through the negativity towards the kind of positive mindset where one wants one's money in the market and not out of it. (slight change of subject but that's forums I guess
)
There are a lot of informations and clues all around, a lot of bullshit and some gems.
The work of each student is to grasp what is good getting rid of all the bullshit, then experiment, test, trying to put each piece of the puzzle at its right place.
To do this is essential to do the opposite of what the crowds of traders are doing, in other words it is essential to think out of the box.
It is a lot of work each one must do to grow, unless you are lucky enough to find a very good mentor.
The first path is stop chasing money and success and begin to attract it to yourself, doing your work the best as you can, day in and day out.
I'd like to quote a very inspirational tale posted a long time ago by someone who has contributed a lot to my learning process:
Socrates' Wisdom: Secret to Success
A young man asked Socrates the secret of success. Socrates told the young man to meet him near the river the next morning.
They met the next morning.
Socrates asked the young man to walk with him towards the river.
When the water got up to their neck, Socrates took the young man by surprise and ducked him into the water.
The man struggled to get out but Socrates was strong and kept him there until he started turning blue.
The young man struggled hard and finally managed to get out and the first thing he did was gasp and took a deep breath.
Socrates asked. "What did you want the most when you were under water?" The man replied, "Air".
Socrates said, "That's the secret to success. When you want success as badly as you wanted air, you will get it."
"There is no other secret."
The work of each student is to grasp what is good getting rid of all the bullshit, then experiment, test, trying to put each piece of the puzzle at its right place.
To do this is essential to do the opposite of what the crowds of traders are doing, in other words it is essential to think out of the box.
It is a lot of work each one must do to grow, unless you are lucky enough to find a very good mentor.
The first path is stop chasing money and success and begin to attract it to yourself, doing your work the best as you can, day in and day out.
I'd like to quote a very inspirational tale posted a long time ago by someone who has contributed a lot to my learning process:
Socrates' Wisdom: Secret to Success
A young man asked Socrates the secret of success. Socrates told the young man to meet him near the river the next morning.
They met the next morning.
Socrates asked the young man to walk with him towards the river.
When the water got up to their neck, Socrates took the young man by surprise and ducked him into the water.
The man struggled to get out but Socrates was strong and kept him there until he started turning blue.
The young man struggled hard and finally managed to get out and the first thing he did was gasp and took a deep breath.
Socrates asked. "What did you want the most when you were under water?" The man replied, "Air".
Socrates said, "That's the secret to success. When you want success as badly as you wanted air, you will get it."
"There is no other secret."
- #840
- Feb 18, 2016 6:24am Feb 18, 2016 6:24am
- Joined Nov 2008 | Status: Trader | 3,270 Posts
{quote} I placed Buy and Sell Stops around my fast MA - +/- 10 pts as suggested by Medici - the stops, not the butterfly! and that solved the problem
I thought I'd share, for everybody's benefit, the way I do this.
Below is a 30 sec chart with SMA100 (red).
Then there's a HiLo channel. It's made up of WMA20 of the highs and lows.
As a setup forms, such as in this case, I place a stop order one point, or so, above the channel. See yellow segment.
Stop a point or two to the other side, which gives a stop distance of 7-8 points.
This way I don't need to read PA bar by bar, but just wait for setups to form, and then place the order.
As an aside, the channel is also useful for trailing the stop, if you like.
