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Attachments: a basic trading rule may be the cause of our trading losses
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a basic trading rule may be the cause of our trading losses

  • #81
  • Apr 30, 2016 6:31am Apr 30, 2016 6:31am
Quoting Stubborn
{quote} EURGBP does have limited ,movement daily until and unless there is some very high impact data or news. Here is the average movements as detailed below : (check attachments) 1 Week : 70.80 2 Week : 64.70 1 Month : 71.10 3 Months : 81.66 6 Months : 79.27 1 Year : 78,86 {image} {image} {image} {image} {image} {image}
Just to add : I don't want to get in to a debate with you regarding this.
This was just for your information.
Anyways , Good luck with your trading.
When the going gets tough , the tough get going
  • #82
  • Apr 30, 2016 7:06am Apr 30, 2016 7:06am
Quoting Stubborn
{quote} EURGBP does have limited ,movement daily until and unless there is some very high impact data or news. Here is the average movements as detailed below : (check attachments) 1 Week : 70.80 2 Week : 64.70 1 Month : 71.10 3 Months : 81.66 6 Months : 79.27 1 Year : 78,86 {image} {image} {image} {image} {image} {image}
I agree with you ,EUR/GBP has it's limitation ,which always lead to lower profits(no problem because i risk 7% ,so my profit would be 7X standard profits) ,but i chose it because of it's low volatility .

From your data ,you can see that the last 2 weeks were difficult to trade this pair with an average 2 weeks move 64 pips ,which is much less than the yearly average volatility 78pips ,or 3 months 81 pips .

Almost every month ,this pair had 1-3 (average2) , 90-100 pips ,those trendy big moves literally could each double the account,but this month had only 1 80 pips move at the start of the month,when i wasn't trading this account.

Your results from your TE are really impressive 629% this month ,high winning rate,high R:R ratio ,really great ,may i ask you how much you risk per trade?I hope you risk 5% or more , so by the end of the year if i fail to to make a decent average monthly profits ,or i if i blow the account due to greed ,your account would be a prove of the benefit of higher risk trading.
  • #83
  • Apr 30, 2016 7:19am Apr 30, 2016 7:19am
Quoting DonFF
I like the risky ones. The key is to be able to see what the pair is doing. Does anyone see GBPAUD setting up to go down for 1000 this coming week?
I don't trade GBP/AUD and i'm not a market predictor as i'm a market follower ,but my charts right now indicating the pair is going up .
  • #84
  • Apr 30, 2016 7:19am Apr 30, 2016 7:19am
Quoting fxnow
{quote} I agree with you ,EUR/GBP has it's limitation ,which always lead to lower profits(no problem because i risk 7% ,so my profit would be 7X standard profits) ,but i chose it because of it's low volatility . From your data ,you can see that the last 2 weeks were difficult to trade this pair with an average 2 weeks move 64 pips ,which is much less than the yearly average volatility 78pips ,or 3 months 81 pips . Almost every month ,this pair had 1-3 (average2) , 90-100 pips ,those trendy big moves literally could each double the account,but this...
Well the performance was just sheer luck . Am never confident of the results or with the strategy till now. Very early days to say anything.
Need to see if I can last , first 1 month , then 2 months , then 3 months ,etc. It can fail anytime. I am still learning and have recently started with babypips.com to be very honest and this honesty is needed in trading.
I am inspired from the thread " Rags to Riches in 10 or 20 Trades " and have made some modifications to suit myself.
Starting with $25 I was ready to lose $3 per trade which comes up to 12%-13% of investment per trade. It is just gambling with a little calculation.
Further risk is up to 80% of profits made in the last trade.
When the going gets tough , the tough get going
  • #85
  • Apr 30, 2016 7:26am Apr 30, 2016 7:26am
Quoting Stubborn
{quote} Well the performance was just sheer luck . Am never confident of the results or with the strategy till now. Very early days to say anything. Need to see if I can last , first 1 month , then 2 months , then 3 months ,etc. It can fail anytime. I am still learning and have recently started with babypips.com to be very honest and this honesty is needed in trading. I am inspired from the thread " Rags to Riches in 10 or 20 Trades " and have made some modifications to suit myself. Starting with $25 I was ready to lose $3 per trade which comes...
10-12% /trade ,great ,so now your account too can be a prove to high risk trading if you keep your risk above 5% for the whole year.
For evaluation at least 12 months of trading is needed ,so till the end of mars 2017 for my and your account .
Good Luck and best wishes.
  • #86
  • Apr 30, 2016 7:26am Apr 30, 2016 7:26am
Quoting Stubborn
{quote} Well the performance was just sheer luck . Am never confident of the results or with the strategy till now. Very early days to say anything. Need to see if I can last , first 1 month , then 2 months , then 3 months ,etc. It can fail anytime. I am still learning and have recently started with babypips.com to be very honest and this honesty is needed in trading. I am inspired from the thread " Rags to Riches in 10 or 20 Trades " and have made some modifications to suit myself. Starting with $25 I was ready to lose $3 per trade which comes...
if you looked at the first 5 trades of the account , you would see that 4 were losers and one was closed little above break even.
I was trading 0.01 of 1 standard lot (100,000 units) and continued irrespective of account balance.
Initially the account was running at a loss of $6 and balance decreased to $19. From there on it picked up.
When the going gets tough , the tough get going
  • #87
  • Apr 30, 2016 7:30am Apr 30, 2016 7:30am
Quoting fxnow
{quote} 10-12% /trade ,great ,so now your account too can be a prove to high risk trading if you keep your risk above 5% for the whole year. For evaluation at least 12 months of trading is needed ,so till the end of mars 2017 for my and your account . Good Luck and best wishes.
I am trading with a very petty amount in this account and hence could take the huge risk but on my main account I never risk more than 2% on any one trade.NEVER.
I maybe wrong anytime and that too in a series . This would result in consecutive losing trades. and account can be blown in just a few days. With low risk I get more opportunities to trade in the market and hence can live to be profitable.(suits me )
When the going gets tough , the tough get going
  • #88
  • Apr 30, 2016 8:14am Apr 30, 2016 8:14am
Sorry. Posted in wrong thread. Hence removed.
When the going gets tough , the tough get going
  • #89
  • Apr 30, 2016 8:20am Apr 30, 2016 8:20am
Quoting Stubborn
{quote} I am trading with a very petty amount in this account and hence could take the huge risk but on my main account I never risk more than 2% on any one trade.NEVER. I maybe wrong anytime and that too in a series . This would result in consecutive losing trades. and account can be blown in just a few days. With low risk I get more opportunities to trade in the market and hence can live to be profitable.(suits me )
[NEVER]

So you don't agree with the idea of a minimum 5% risk/trade for accounts less than 100k$.

It's ok 2 %, if it is suiting you,keep the good work .
  • #90
  • Apr 30, 2016 8:26am Apr 30, 2016 8:26am
Quoting fxnow
{quote} [NEVER] So you don't agree with the idea of a minimum 5% risk/trade for accounts less than 100k$. It's ok 2 %, if it is suiting you,keep the good work .
It all depends on the value of your investment and net worth.
If you are trading money that will not affect you after the account getting blown then you can risk anything . 1% to 50% per trade.
If you are confident of your strategy and win rate then higher risk is not an issue.
If you trading money that you will repent losing then you should risk 1% or even less per trade that too after extensive demo trading.
This is my opinion. Others may differ. Everyone has a right to their thinking and ideas. Free Country you know.
When the going gets tough , the tough get going
  • #91
  • Apr 30, 2016 8:41am Apr 30, 2016 8:41am
The correct way to trade is based on how you feel after placing the trade.
As you hinted it depends on your risk amount.
If you are so nervous about the management of your trade, that is your automatic guiding system (your best asset in all areas of life including trading) talking to you.

It's your choice whether or not you will listen to it, learn from it, and keep developing as a great trader.

Happy trading
  • #92
  • Apr 30, 2016 9:42am Apr 30, 2016 9:42am
Quoting fxnow
The month of April ( only 17 trading days) ended with no profit ,actually it was 30 cents profits . So the monthly average profit of 70% wasn't achieved although the 7% risk /rule applied This month was difficult to trade as most of the currency daily moves were about 30-40 pips only ,and there wasn't even a single 90-100 pips move ,which usually lead to doubling of the account and help in achieving good profits. Obviously there's something fundamental leading to the market indecisiveness. Hopefully next months would be better. http://www.myfxbook.com/members/sam1...llenge/1581023...
Statistics must be used carefully.

If you use a good chart you will see within the 1day time frame most pairs move 30-100 movements everyday a good chart is trading view charts.

Most times traders get distracted with indicators without learning to understand the price movement/price action.
  • #93
  • May 1, 2016 6:28am May 1, 2016 6:28am
Quoting DonFF
{quote} Statistics must be used carefully. If you use a good chart you will see within the 1day time frame most pairs move 30-100 movements everyday a good chart is trading view charts. Most times traders get distracted with indicators without learning to understand the price movement/price action.
I think indicators ,and price action ,money management are all equally important to achieve success.
  • #94
  • May 1, 2016 7:57am May 1, 2016 7:57am
Quoting fxnow
{quote} I think indicators ,and price action ,money management are all equally important to achieve success.
Yeah, the money management is the most important I think.
  • #95
  • May 18, 2016 12:52pm May 18, 2016 12:52pm
To fxnow,

Have you tried trading with a small leverage account 1:20? I have wiped out 90% of my balances in several accounts with at least 1:100 leverage mainly because I did not use stop losses regularly. My most successful account has 1:20 leverage that I started 18 months ago. It is my first account with this leverage and I am up 26%. I've had huge drawdowns because I did not use stop losses. I closed some losing trades in order to maintain my margin level and waited for the other losing trades to recover. I kept one big eurusd trade opened for 8 months which caused my equity to drop considerably and this trade dipped down to sub 1.06 level and came back. I had to be patient. In all, I realized I made some stupid decisions and should have closed the trades with the starting capital intact. Otherwise, I' d have been up way more than 26%. I am an average but serious trader and I am still learning. Like Phil said, enter the trade when you are sure it has the high probability of winning. If you can do that, you would have more winning streaks than losing ones. You might want to try scalping and see how that works. You might learn something about market behavior.
  • #96
  • May 28, 2016 11:35am May 28, 2016 11:35am
Unfortunately i blew the account ,and obviously i have no control on the emotional part of my trading,and i 'll never have, .I'm a hopeless case
Reason of the failure:
EUR/GBP ,on first week of April ,was literally not moving at all ,so daily range was 40 pips,lead to consecutive losses ,but it was under control ,total losses by end of the week about 30-40%,than when checking the EUR/USD AND GBP/USD ,they were having a great moves during that week ,so i broke my 1 currency rule ,added the E/U and G/U to my daily trading ,lost control of my lot sizes ,risking much more than 7% ,and account blown.

I'll try to automate my trading with an EA, as this seems the only way i might have a chance to make it on Forex and eliminating the emotional part letting an EA doing the work .

Wouldn't it be great if the MT4 platform has an option that you choose your lot sizes at the opening of the account ,and you can't change it under any circumstances ,i think it would help traders with poor money management ,i think brokers should think about it .

So Thank you for every trader shared an Idea or a contribution on this thread ,and sorry if i failed to prove my Idea and my alleged cure for traders with emotional problem .

Good luck for all of you in your trading .
  • #97
  • May 28, 2016 11:47am May 28, 2016 11:47am
Quoting Roblee
To fxnow, Have you tried trading with a small leverage account 1:20? I have wiped out 90% of my balances in several accounts with at least 1:100 leverage mainly because I did not use stop losses regularly. My most successful account has 1:20 leverage that I started 18 months ago. It is my first account with this leverage and I am up 26%. I've had huge drawdowns because I did not use stop losses. I closed some losing trades in order to maintain my margin level and waited for the other losing trades to recover. I kept one big eurusd trade opened for...
I never traded with less than 1:200 leverage ,and now i need a short break trading real , i'll continue trading my demo account and maybe some contests ,but who knows, maybe i'll try this 1:20 leverage account in the future as soon as possible,but i don't think my greed would be satisfied with 1:20.
I tried scalping ,the problem of it ,is even if you could make it with scalping ,it's too much stress ,which wouldn't be good for our health ,that's my opinion.
Thank you for your advice .
  • #98
  • Edited 12:55pm May 28, 2016 12:44pm | Edited 12:55pm
Quoting fxnow
Unfortunately i blew the account ,and obviously i have no control on the emotional part of my trading,and i 'll never have, .I'm a hopeless case Reason of the failure: EUR/GBP ,on first week of April ,was literally not moving at all ,so daily range was 40 pips,lead to consecutive losses ,but it was under control ,total losses by end of the week about 30-40%,than when checking the EUR/USD AND GBP/USD ,they were having a great moves during that week ,so i broke my 1 currency rule ,added the E/U and G/U to my daily trading ,lost control of my lot sizes...
Read this book. It will help you with managing your losses.

http://www.amazon.com/Necessary-Endi.../dp/0061777129

I would posit that emotions are not the biggest problem you have. The biggest problem may instead be a flawed understanding of market structure and price movements. This flawed understanding leads to unrealistic beliefs and expectations about where price may go to. You have no idea of the realistic probabilities that price may behave like you expect so your brain short-cuts it and replaces the unknown as a 50/50 proposition. With such beliefs and expectations, greed easily kicks in because why not, 50-50 feels like good odds!

Unfortunately, usually, it's not 50-50 or price will most likely hit your margin call before it can hit your target.

That's the real issue. If you knew for sure that it was hopeless to place the trade and expect it to win, then you would not do it. It's nothing to do with emotions; simply a lack of actual trading knowledge, an edge, and realistic expectations about how the market behaves.
Build good relationships with others.
  • #99
  • May 28, 2016 2:14pm May 28, 2016 2:14pm
Shellsnail,

There is some merit to your position.

However, it should not be overlooked that we are driven by emotions and this is usually the weakest part of our trading.

Learning to manage emotion is a necessary aspect of being a successful trader.

Everyone is at a different stage of being a controlled trader, until or unless there is mastery in this area, even if we are able to make 1 million we can lose it easily.

Both rules as well as emotional mastery are important ingredients
  • #100
  • May 28, 2016 11:16pm May 28, 2016 11:16pm
How bad of a trader are you?
Will you lose 20 times in a row?
A $100 account would be wiped out in 20 losing trades in a row at 5% risk.
Can you win 11 out of 20 and make 5%?
Do that 10 times in a row and you double your account.

The usdcad pair costs $20 per 0.01 lot.
Trading 0.05 lots for a 10 pip gain nets ~$5.00
This is not out of the question.

To accomplish this takes patience.
Lots of patience.
Have to wait for the setup.
Have to be focused.
Have to enter without hesitation.
Have to manage the trade.

You can do it. 😉
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