Trading Made Profitable (TMP)

Do not let your fire go out, spark by irreplaceable spark, in the hopeless swamps of the approximate, the not-quite, the not-yet, the not-at-all.…The world you desired can be won. It exists, it is real, it is possible, it is yours.

"Ayn Rand"

----------------------------------------------------------------------------------------------------------------------------------------------------------------------

Trading Plan Content

1. Your personal skill assessment- Are you ready to trade real money? Why are you ready? Can you follow your plays without hesitation? Have you defined the criteria in writing of when you will start trading with real money?

2. Mental preparation- How do you feel? Are you rested? Have you had any mental or emotional traumas recently? Under what mental and emotional conditions will you NOT trade?

3. Determine Risk Level- How much of a percentage of your account equity are you going to risk on each trade? What is the most you can lose per month before you MUST stop trading? At what point, what is the criteria, do you increase the percentage you risk?

4. Goal Setting- What are your weekly profit goals? How do you determine your price targets before you enter the trade? Setup a monitoring method to track your profit target success. What are your goals short term and long term? How do you track the progress of those goals?

5. Trade Analysis- What is you pre trade analysis process? Do you have a methodical process in place for completing this? What is your post trade analysis methodology? Do you have a way to monitor your psychology during a trade? Have you developed a trading play book?

6. Homework- Have you developed a way of methodically doing your homework and research. How do you plan to document it? Have you outlined a continuing education plan? Do you have a trading library? Have you scheduled time to do your homework and research?

7. Busniess Plan- How much is it going to cost you to get into trading? What are your monthly expenditures? How much are you going to allocate to education? When would you reasonably expect to break even? What will you do with your profits? Do you have rewards in place for yourself when you meet certain stages of your plan?

8. Office Setup- How is your office setup? Do you have all the contact numbers to your brokers and internet service providers handy? Do you have a backup charting service (you can use a free one)? Do you have anti-virus software on your tradestation and do you run it every day? What do you do if your tradestation crashes in the middle of a trade? How do you plan to recover from a tradestation crash?


You should take these eight areas and add as many details to your trading plan as possible. The more complete your trading plan is, the clearer the path will be that you need to follow. You should revisit you trading plan about every three months to see how you are following it. Take a lot of time to complete your trading plan thoroughly it will benefit you more than you know.


---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Trading is probability game. We need statistical edge to make profit in long run. To get statistical edge we create trading system. In simple term system helps us to win more trade and lose less trade (make more profit and lose less money). Creating and adopting other expert trader system it not always work for us if it is so lots of trader become successful with in short period of time. So many way of trading exist in the trading world like there are traders they don't even watch chart to trade, there are trader who use naked chart, there are trader who use Moving average, there are trader use market profile and so on.

One example is like this - Mr X is new trader he learn lots of thing about forex trading from different website. Now he know that he need to develop a trading system that work for him. He collect lots of system for different source in the web but he know that not all system is good and not all good system will work for him. He start trading with a system in demo account system contain one indicator call Pivot Point. after few day trading he say that the system is not that profitable its seems.
After few day he found a video where some one explain Camarilla Pivot Point work so well in 30 minute time frame. previously Mr.X traded 4 hour time frame now he become very interested in trading different set of pivot with different time frame, Mr.X learning curve start again. after few week trade he found the system work in certain condition of the market not always work he lose over all because he have to miss lots of good entry in 30 minute time frame. Now Mr.X come to know a expert trader Mr.Y he said to Mr.X Pivot is not good for trading at all. Mr.X stop trading with Pivot point. This cycle continue(System adopting and System dropping), I am not saying that system adopting and system dropping is always bad.

People say follow what's work for you. I can guarantee you if you don't do hard work in your system it will not work for you unless it automatic trading system proven profitable in the past and still work developed by other people hard work. Why do others give you their proven profitable automatic system that is big question.

We need to analysis our trading system whether it work in our trading time frame or not. But what will be our trading time frame and observe time frame? Good question I will answer it Future thread. In This Thread our Trading time frame is 4 hour (H4). It doesn't matter you use GMT time broker or GMT+2 or GMT+3 Broker. Our Observed time frame is Daily chart and 1 Hour chart.

Now how we test the system? in other words -How could we understand system work for us or not?

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

There are 3 level system Testing we will use to train our-self.
1. Back test- See how system work in Historical market data or past data. which types of entry give use more accurate entry. Trading rules development with observation. Take screen short and write in screen short why your think this is good entry and your entry and exit rules.

2.Forward testing- after few week or may be months start trading demo with your developed rules see how you perform in real time trading where your don't know what will happen next. You just know your rules worked previously so well.

3. Expectancy Test- Expectancy test is your test how much understand the system and how much you'r expect form certain condition of the market, don't over or under expect from market. Trade with confident that your rules worked in the past and your already performed well with the system.

Ok enough knowledge distribution lets share a system that I am working on.

( Before start trading with this system take at list 100 screen short and write down your rules. share your rules so that others can learn and make comment your mistake )

Some Important topics and Ideas

1.Urban Myth: Entries Aren’t that Important here
2. an effective trader must account for three main areas of concern. here
3.What Kinds of Drawdown Should You Expect? here
4. Discipline here
5. Some things I have learned here
6.Money Management Technique Here
7.ADAPTING TO CHANGE here
8. Success in trading here
9. Indicators - Good Or Bad? here
10. few reasons of Failure. here
11. Developing a System here

New system Started here
General guideline Here

Thanks for posting this to the group

Please explain Templates

333
444
555
666

333 templates is without zigzag and pivot point indicator . It is more clear to understand.
444 with zigzag & Fractals

for critical look
555 added weekly pivot
666 added monthly pivot

I decided to trade only one pair with the system. I choose GBPJPY.

One hour trade for small profit

It will help

Thank you.

This week most accurate entry and exit trade. training chart

You can use this template for Trend analysis. Draw trend line. trade with the trend direction. Trade only one pair is very important.

The 4 Step Process for FOREX Trading Mastery

1. Identifying Market Condition
 Is the market in an UPTREND, DOWNTREND, or SIDEWAYS Trading Range?

2. Identifying a Trade Set-Up
 Is the market trading at logical SUPPORT in an UPTREND or at logical RESISTANCE in a DOWNTREND?

3. Determining Trade Entry
 Look for a Powerful Price Pattern at SUPPORT (in an UPTREND) or at RESISTANCE (in a DOWNTREND) offering a high probability low-risk entry?

4. Trade Management
 Place Initial Stop Loss outside of the normal “ebb and flow” of the market… just below SUPPORT in an UPTREND or just above RESISTANCE in a DOWNTREND and pay yourself as the market makes money available to you and take profits at high probability logical attainable levels.

Asking question increase your concentration level and learning become fast. I am not saying that I can give your all the question answer. I am saying that when your ask question your are seeking answer for certain market condition I may give good answer or your may find good answer from others.

I request every one visit this thread -- ASK QUESTION ?

gbpjpy downside bias remain intact

For Developing The basic Read this book

Please show a chart with the Daily & Weekly Trend

The Template has ADR but I don't see a weekly

Thanks

Do you have a PDF on the Daily & Weekly Trend TPL?

Ok I will create a PDF for additional TPL DAILY & WEEKLY TREND.

you can trade Daily and weekly chart with original template .

Maule share this money management at TMS thread I think it will be helpful to all that is way I share it here.

original post is here http://www.forexfactory.com/showthre...19#post9424719

The 5 Steps to becoming a trader

Step One: Unconscious Incompetence.

This is the first step you take when starting to look into trading. You know that its a good way of making money because you've heard so many things about it and heard of so many millionaires. Unfortunately, just like when you first desire to drive a car you think it will be easy - after all, how hard can it be? Price either moves up or down - what's the big secret to that then lets get cracking! Unfortunately, just as when you first take your place in front of a steering wheel you find very quickly that you haven't got the first clue about what you're trying to do. You take lots of trades and lots of risks. When you enter a trade it turns against you so you reverse and it turns again and again, and again. You may have initial success, and thats even worse - cos it tells your brain that this really is simple and you start to risk more money. You try to turn around your losses by doubling up every time you trade. Sometimes you'll get away with it but more often than not you will come away scathed and bruised You are totally oblivious to your incompetence at trading. This step can last for a week or two of trading but the market is usually swift and you move on the next stage.

Step Two - Conscious Incompetence

Step two is where you realize that there is more work involved in trading and that you might actually have to work a few things out. You consciously realize that you are an incompetent trader - you don't have the skills or the insight to turn a regular profit. You now set about buying systems and e-books galore, read websites based everywhere from USA to the Ukraine and begin your search for the holy grail. During this time you will be a system nomad - you will flick from method to method day by day and week by week never sticking with one long enough to actually see if it does work. Every time you come upon a new indicator you'll be ecstatic that this is the one that will make all the difference. You will test out automated systems on Metatrader, you'll play with moving averages, Fibonacci lines, support & resistance, Pivots, Fractals, Divergence, DMI, ADX, and a hundred other things all in the vein hope that your 'magic system' starts today. You'll be a top and bottom picker, trying to find the exact point of reversal with your indicators and you'll find yourself chasing losing trades and even adding to them because you are so sure you are right. You'll go into the live chat room and see other traders making pips and you want to know why it's not you - you'll ask a million questions, some of which are so dumb that looking back you feel a bit silly. You'll then reach the point where you think all the ones who are calling pips after pips are liars - they cant be making that amount because you've studied and you don't make that, you know as much as they do and they must be lying. But they're in there day after day and their account just grows whilst yours falls. You will be like a teenager - the traders that make money will freely give you advice but you're stubborn and think that you know best - you take no notice and overtrade your account even though everyone says you are mad to - but you know better. You'll consider following the calls that others make but even then it wont work so you try paying for signals from someone else - they don't work for you either. You might even approach a 'guru' like Rob Booker or someone on a chat board who promises to make you into a trader (usually for a fee of course). Whether the guru is good or not you wont win because there is no replacement for screen time and you still think you know best. This step can last ages and ages - in fact in reality talking with other traders as well as personal experience confirms that it can easily last well over a year and more nearer 3 years. This is also the step when you are most likely to give up through sheer frustration. Around 60% of new traders die out in the first 3 months - they give up and this is good - think about it - if trading was easy we would all be millionaires. another 20% keep going for a year and then in desperation take risks guaranteed to blow their account which of course it does. What may suprise you is that of the remaining 20% all of them will last around 3 years - and they will think they are safe in the water - but even at 3 years only a further 5-10% will continue and go on to actually make money consistently. By the way - they are real figures, not just some Ive picked out of my head - so when you get to 3 years in the game dont think its plain sailing from there. Ive had many people argue with me about these timescales - funny enough none of them have been trading for more that 3 years - if you think you know better then ask on a board for someone who's been trading 5 years and ask them how long it takes to become fully 100% proficient. Sure i guess there will be exceptions to the rle - but i havent met any yet. Eventually you do begin to come out of this phase. You've probably committed more time and money than you ever thought you would, lost 2 or 3 loaded accounts and all but given up maybe 3 or 4 times but now its in your blood One day In a split second moment you will enter stage 3.

Step 3 - The Eureka Moment

Towards the end of stage two you begin to realize that it's not the system that is making the difference. You realize that its actually possible to make money with a
simple moving average and nothing else IF you can get your head and money
management right You start to read books on the psychology of trading and identify
with the characters portrayed in those books and finally comes the eureka moment.
This eureka moment causes a new connection to be made in your brain. You
suddenly realise that neither you, nor anyone else can accurately predict what the
market will do in the next ten seconds, never mind the next 20 mins.
Because of this revelation you stop taking any notice of what anyone thinks - what
this news item will do, and what that event will do to the markets. You become an
individual with your own method of trading
You start to work just one system that you mould to your own way of trading, you're
starting to get happy and you define your risk threshold.
You start to take every trade that your 'edge' shows has a good probability of
winning with. When the trade turns bad you don't get angry or even because you
know in your head that as you couldn't possibly predict it it isn't your fault - as soon
as you realise that the trade is bad you close it . The next trade or the one after it or
the one after that will have higher odds of success because you know your system
works.
You stop looking at trading results from a trade-to-trade perspective and start to
look at weekly figures knowing that one bad trade does not a poor system make.
You have realised in an instant that the trading game is about one thing -
consistency of your 'edge' and your discipline to take all the trades no matter what
as you know the probabilities stack in your favour.
You learn about proper money management and leverage - risk of account etc etc -
and this time it actually soaks in and you think back to those who advised the same
thing a year ago with a smile. You weren't ready then, but you are now. The eureka
moment came the moment that you truly accepted that you cannot predict the
market.

Step 4 - Conscious Competence

You are making trades whenever your system tells you to. You take losses just as easily as you take wins You now let your winners run to their conclusion fully accepting the risk and knowing that your system makes more money than it looses and when you're on a loser you close it swiftly with little pain to your account You are now at a point where you break even most of the time - day in day out, you will have weeks where you make 100 pips and weeks where you lose 100 pips - generally you are breaking even and not losing money. You are now conscious of the fact that you are making calls that are generally good and you are getting respect from other traders as you chat the day away. You still have to work at it and think about your trades but as this continues you begin to make more money than you lose consistently. You'll start the day on a 20 pip win, take a 35 pip loss and have no feelings that you've given those pips back because you know that it will come back again. You will now begin to make consistent pips week in and week out 25 pips one week, 50 the next and so on. This lasts about 6 months

Step Five - Unconscious Competence

Now were cooking - just like driving a car, every day you get in your seat and trade - you do everything now on an unconscious level. You are running on autopilot. You start to pick the really big trades and getting 200 pips in a day doesnt make you any more excited that getting 1 pips. You see the newbies in the forum shouting 'go dollar go' as if they are urging on a horse to win in the grand national and you see yourself - but many years ago now. This is trading utopia - you have mastered your emotions and you are now a trader with a rapidly growing account. You're a star in the trading chat room and people listen to what you say. You recognise yourself in their questions from about two years ago. You pass on your advice but you know most of it is futile because they're teenagers - some of them will get to where you are - some will do it fast and others will be slower - literally dozens and dozens will never get past stage two, but a few will. Trading is no longer exciting - in fact it's probably boring you to bits - like everything in life when you get good at it or do it for your job - it gets boring - you're doing your job and that's that. Finally you grow out of the chat rooms and find a few choice people who you converse with about the markets without being influenced at all. All the time you are honing your methods to extract the maximum profit from the market without increasing risk. Your method of trading doesnt change - it just gets better - you now have what women call 'intuition' You can now say with your head held high "I'm a currency trader" but to be honest you dont even bother telling anyone - it's a job like any other. I hope youve enjoyed reading this journey into a traders mind and that hopefully youve identified with some points in here. Remember that only 5% will actually make it - but the reason for that isnt ability, its staying power and the ability to change your perceptions and paradigms as new information comes available. The losers are those who wanted to 'get rich quick' but approached the market and within 6 months put on a pair of blinkers so they couldnt see the obvious - a kind of "this is the way i see it and thats that" scenario - refusing to assimilate new information that changes that perception. Im happy to tell you that the reason i started trading was because of the 'get rich quick' mindset. Just that now i see it as 'get rich slow' If youre thinking about giving up i have one piece of advice for you .... Ask yourself the question "how many years would you go to college if you knew for a fact that there was a million dollars a year job at the end of it? Take care and good trading to you all.

hi,what are the exact the rules for enty a buy or sell ?
Thanks

@Hasib. A fantastic synopsis of the five stages. I for one can relate to the outlined stages.

You are Senior trader, I appreciate your participation.
Just Back test the system in one currency pair. Time frame is H4 or Daily chart and Tell us what are the possible rules you found. Then I will discuss.