The Trader's Academy - by Traders for Traders | Page 53 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Are you a trend trader or a counter-trend trader? 29 replies

Baby pips style academy for other financial markets? 6 replies

from retail trader to full-time trader 17 replies

Discipline Trader and Voice Trader EA/IND 16 replies

IkonFX Viking Trader or Pfgbest Viking Trader? 2 replies

Attachments: The Trader's Academy - by Traders for Traders
Exit Attachments

The Trader's Academy - by Traders for Traders

  • #1,041
  • Jan 15, 2017 11:55am Jan 15, 2017 11:55am
Quoting cat
Incredibly important that as a trader you keep physically fit, I would never be able to stress this strongly enough. Long hours sitting will turn your muscles to jelly if you do not, every day, do at least one hour of at least mildly strenuous physical exercise. Also, if you suffer from back ache, which I know many traders do if they do not make a concerted effort it prevent it, then try this exercise. I hold it for four minutes every morning as part of my morning exercise routine, and I promise you it will help cure back pain by strengthening the...
Holy moly! I just tried this and within 30 seconds started shaking like a fiend off his meds!
Remember, Red. Hope is a good thing, maybe the best of things...
  • #1,042
  • Jan 15, 2017 12:11pm Jan 15, 2017 12:11pm
Quoting ForexFury
{quote} Holy moly! I just tried this and within 30 seconds started shaking like a fiend off his meds!
hahaha!...yes, after 30secs the knees start shaking; after 1 min the buttocks join in; after 2 mins your whole body starts shaking; after 3 you lose control of your bottom lip; after 4 you are dribbling like a baby; after 5 everything goes!
  • #1,043
  • Jan 15, 2017 4:04pm Jan 15, 2017 4:04pm
Quoting CrocodileRex
{quote} Just tried a 7 minute workout app this morning. Ended up running the threadmill for 15 minutes and did some planking. Felt good mang.
Awesome pics. Great size. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress pics or vid clips. Show us what you got man. Wanna see how freakin' huge, solid, thick and tight you can get. Thanks for the motivation
Boxing clever since 76.
  • #1,044
  • Jan 18, 2017 10:58am Jan 18, 2017 10:58am
I'm sure some of you have read the brilliant book ' Trading in the Zone' by the late Mark Douglas. At the end of that book, there is an exercise, a simple exercise, a challenge if you like, for teaching traders how to trade based on probabilities, without fear of losing any one single trade. It is, in my opinion, the most powerful way I have ever come across for getting past the big ' fear of pulling the trigger ' all traders suffer from.

In trading, it is a fact that once you begin fearing the result of any trade you put on, things are very likely going to start going badly for you. What we have to do is look beyond the next trade to the next 10 or 20 trades. Only when we learn not to attach any emotion to the outcome of any single trade are we in the right psychological place to put that trade on in the first place. What Mark Douglas asks us to do is this:

Take a sum of money enough for 20 consecutive losing trades, money you can easily afford to lose and put it into your trading account. If you lose the lot ( hopefully you won't) it does not matter, because the worst case scenario is that you lose money you have put aside to lose, but even if you do, the experience of putting on those trades will be invaluable to your future progression as a trader, and it will highlight the areas where you need to improve.

The objective of this exercise is to overcome the fear of pulling the trigger that inhibits so many traders, by focusing upon the result at the end of 20 trades, whilst ignoring that of each individual trade, for it is in the realm of probabilities, assuming you do have an edge in the first place, that trading success lies, that often narrow advantage in your favour, over a certain number of trades, that sees you in profit at the end of each week, month, and year, and the number of winning and losing trades are irrelevant as long as you end up ahead.

Concentrate on the next 20 trades, disregard the importance of each one, and I guarantee that as long as you have a tried and tested winning strategy you yourself have developed, the results will amaze you, but you have got to disregard the importance of any single trade for this exercise to work. Trading money that you can easily afford to lose should facilitate this.
  • #1,045
  • Jan 18, 2017 12:58pm Jan 18, 2017 12:58pm
A few years ago, I read something at the start of a trader's thread, whose name I cannot remember unfortunately, which was such a profound truth that I copied it and kept it in my documents. I'd like to share it here, I'm sure whoever the poster was will not mind.

" First truth.

The trader must learn to take losses.
If you as a trader are unwilling to take a loss you will eventually take the mother of all losses. If the trader is unwilling to take a loss he or she will be forever closing trades with tiny gains that will never overcome their losses.
This was my hardest lesson. I consider myself a pretty smart person but this one was EXTREMELY hard for me. The natural tendency for me was to move the stop to break even as soon as the trade was into a decent profit. Of course the market will often roll over take out your break even stop and then race off to the target. You spent lots of time designing your method, you spent lots of time testing your method, set your stop and target and close the computer if you have to but you MUST be willing to take a loss.
I cannot stress the importance of this enough. Once I had a method with a positive expectancy this was the key for me to becoming profitable. "
  • #1,046
  • Jan 18, 2017 1:47pm Jan 18, 2017 1:47pm
Quoting cat
I'm sure some of you have read the brilliant book ' Trading in the Zone' by the late Mark Douglas. At the end of that book, there is an exercise, a simple exercise, a challenge if you like, for teaching traders how to trade based on probabilities, without fear of losing any one single trade. It is, in my opinion, the most powerful way I have ever come across for getting past the big ' fear of pulling the trigger ' all traders suffer from. In trading, it is a fact that once you begin fearing the result of any trade you put on, things are very likely...
I ask traders reading my HOLO thread to take the 10 TRADE CHALLENGE.
One pair.
Ten trades.
0.01 lot about a dime a pip.
10 pip stop loss.
Max loss should be no more than $10.00 USD.
That is how you learn to trade and to discover if the method feels right.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #1,047
  • Jan 19, 2017 5:59am Jan 19, 2017 5:59am
Quoting cat
A few years ago, I read something at the start of a trader's thread, whose name I cannot remember unfortunately, which was such a profound truth that I copied it and kept it in my documents. I'd like to share it here, I'm sure whoever the poster was will not mind. " First truth. The trader must learn to take losses. If you as a trader are unwilling to take a loss you will eventually take the mother of all losses. If the trader is unwilling to take a loss he or she will be forever closing trades with tiny gains that will never overcome their losses....
Hi cat. Very god post by unknown trader , with one of my favourite sayings by Ed Seykota:
“If you can’t take a small loss, sooner or later you will take the mother of all losses.”

Moving SL to BE too soon is yet another version of fear of losing.
Hope is dangerous in this game.
  • #1,048
  • Jan 19, 2017 8:44am Jan 19, 2017 8:44am
Quoting StrayDog
{quote} Hi cat. Very god post by unknown trader , with one of my favourite sayings by Ed Seykota: If you cant take a small loss, sooner or later you will take the mother of all losses. Moving SL to BE too soon is yet another version of fear of losing.
Bad case of 20/20 hindsight.
Memory plays tricks.
Do you remember how many times you are glad you moved your stop loss to breakeven + 1?
Probably not.
Do you remember how many times you are sad or mad you moved your stop loss to breakeven + 1?
Probably almost every one.
Plan your trade.
Trade your plan.
You cannot control the outcome.
You can control the size of your loss with a few exceptions.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #1,049
  • Jan 19, 2017 9:06am Jan 19, 2017 9:06am
Yes, moving your SL up to BE is a sign of fear of losing, however, it is prudent to do it when your trade is well in profit, and imprudent not to. So, I usually move mine up to BE when I have 20 pips in the bag, ( I trade off of a 12-20 SL depending upon what I'm trading, and the current market conditions, and I enter off of a 10 or 20 sec tf ) There is absolutely no sense at being 20 pips in the clear, only to let it come all the way back to stop you out for a loss. This is because good trades will look after themselves and will seldom come back. The ones that do are unlikely, though it happens, to stop you out at BE and immediately move off in the original direction without you. More likely they will stop you out at BE, and carry on going to result in a loss had you not moved your SL up. If it then turns again, have another go, which you are far more likely to do following a BE stop out than after taking a full loss.

Really all I'm saying, and I'm sure most would agree with me, be flexible and be ready to respond to any situation as it presents itself. Too rigid a system, such as ' always do this ', or ' never do that ' , is nonsense in an environment which obeys no rules, knows no boundaries, and will do whatever it likes, when it likes. To be too rigid in your approach to trading is like saying you know what is in the minds of every other trader out there.

Be like a branch and bend with the wind, because if you don't, you'll soon snap.
  • #1,050
  • Jan 19, 2017 9:29am Jan 19, 2017 9:29am
One more thing from me before I have to go out, and I'm sure I've said this somewhere on this thread, and it's this :

Have a yes/no entry and exit system. This means that there should never be any doubt in your mind whether to pull the trigger or not, because doubt precedes hesitation' hesitation precedes non-action, and non-action precedes death for a trader. Know what you are looking at and what you are looking for. Recognize it in advance, and be ready to strike as soon as you see the signal to do so.

If this sounds ridiculous, believe me it's not. If any trader puts on a trade without having had a clear signal to do so, without knowing exactly, to the finest detail, why they have put on that trade, then they are merely gambling. Trading is not gambling, no matter what anyone here on ff tells you. Gambling is a coin toss, it can go one way or the other, over which you have absolutely no control. Trading is not like that, or shouldn't be. You have to have the probability of your trade being a winning one firmly in your favour, and the only way to know that it is firmly in your favour is to spend many thousands of hours working it out. Why do so many traders lose? In my opinion it is because they are putting on trades based more on hope than on anything else.

Harsh words I know, which many will not like, but all I am doing is relaying my own experience and knowledge of being a trader, as I have done throughout this thread.
  • #1,051
  • Jan 19, 2017 9:36am Jan 19, 2017 9:36am
Quoting cat
To be too rigid in your approach to trading is like saying you know what is in the minds of every other trader out there. Be like a branch and bend with the wind, because if you don't, you'll soon snap.
Attached Image
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #1,052
  • Jan 19, 2017 9:39am Jan 19, 2017 9:39am
Quoting cat
One more thing from me before I have to go out, and I'm sure I've said this somewhere on this thread, and it's this : Have a yes/no entry and exit system. This means that there should never be any doubt in your mind whether to pull the trigger or not, because doubt precedes hesitation' hesitation precedes non-action, and non-action precedes death for a trader. Know what you are looking at and what you are looking for. Recognize it in advance, and be ready to strike as soon as you see the signal to do so. If this...
Hard to "bend like a branch" when you have rigid rules.

Probabilities do not exist in trading.
Statistics do.

Green pips to all.
Cheers!
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #1,053
  • Jan 19, 2017 9:56am Jan 19, 2017 9:56am
Quoting TooSlow
{quote} Hard to "bend like a branch" when you have rigid rules. Probabilities do not exist in trading. Statistics do. Green pips to all. Cheers!
I think you are misunderstanding what I mean by yes/no TooSlow. Flexible yet methodical in your overall approach, but decisive when you have to be. Read my Sniper analogy above or find the thread. In trading, especially when trading the smaller tfs, you have to know exactly where and when to take the shot, and in that final act of putting on each trade, there is no bending, there is only ' I do or I don't '. Then, when you are in the trade, you can allow yourself to be dictated to by what the price is doing. Therefore, there is a time for bending with the movements of the market, and a time for standing rigid, and that time is when you are putting on a trade, and, to a somewhat lesser extent, when you are exiting one.

Green pips and cheers to you too!
  • #1,054
  • Jan 19, 2017 10:12am Jan 19, 2017 10:12am
Attached Image (click to enlarge)
Click to Enlarge Name: add_text.jpg Size: 81 KB
  • #1,055
  • Jan 20, 2017 8:23am Jan 20, 2017 8:23am
Absolutely nothing to do with trading, but hey, it's my thread and it's inauguration Friday afternoon, so here's one of my favourite bands ' Poets of the Fall ', playing live a couple of year's ago in Moscow. Brilliant band!!

Happy weekend to all.

Inserted Video
  • #1,056
  • Jan 24, 2017 5:16am Jan 24, 2017 5:16am
If you are finding yourself spending long periods of inactivity waiting for trade opportunities to develop, searching through the pairs looking for some action, this is, in my opinion, a big mistake and a terrible waste of time. Go to a time frame small enough to give you multiple trading opportunities in any one day, especially if you are relatively new to forex and still piecing it all together, because the best way to do this is trial and error and the more trades you take the better, especially if you are on demo. Learn to trade the small time frames and the skills you acquire can then be transferred to the bigger time frames should you so wish, though the same cannot be applied to the other way round. Learn to trade the 1 minute or even smaller, and you'll be able to trade anything, and, perhaps most importantly at all, it will speed up the learning process. Absolutely no sense in sitting twiddling your thumbs waiting for something to happen, because on the smaller time frames, something is always happening.
  • #1,057
  • Jan 24, 2017 9:44am Jan 24, 2017 9:44am
Attached Image (click to enlarge)
Click to Enlarge Name: grim reaper.jpg Size: 112 KB
  • #1,058
  • Jan 24, 2017 9:55am Jan 24, 2017 9:55am
Quoting cat
If you are finding yourself spending long periods of inactivity waiting for trade opportunities to develop, searching through the pairs looking for some action, this is, in my opinion, a big mistake and a terrible waste of time. Go to a time frame small enough to give you multiple trading opportunities in any one day, especially if you are relatively new to forex and still piecing it all together, because the best way to do this is trial and error and the more trades you take the better, especially if you are on demo. Learn[/highlight]...
Price is what is traded.
Not time.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #1,059
  • Jan 24, 2017 10:02am Jan 24, 2017 10:02am
Quoting cat
If you are finding yourself spending long periods of inactivity waiting for trade opportunities to develop, searching through the pairs looking for some action, this is, in my opinion, a big mistake and a terrible waste of time. Go to a time frame small enough to give you multiple trading opportunities in any one day, especially if you are relatively new to forex and still piecing it all together, because the best way to do this is trial and error and the more trades you take the better, especially if you are on demo. Learn to trade the small time...
This is very useful advice.
Thank you, Cat
Let Market Tell You
  • #1,060
  • Jan 24, 2017 10:05am Jan 24, 2017 10:05am
Quoting TooSlow
{quote} Price is what is traded. Not time.
How wrong you are..we all trade our time for what we hope the market will give us in return.
0 traders viewing now