Trading Made Profitable (TMP)

Beware of little expenses; a small leak will sink a great ship.
- Benjamin Franklin
The amount of money you have has got nothing to do with what you earn. People earning a million dollars a year can have no money. People earning $35,000 a year can be quite well off. It's not what you earn, it's what you spend.
- Paul Clitheroe
There are plenty of ways to get ahead. The first is so basic I'm almost embarrassed to say it: spend less than you earn.
- Paul Clitheroe
Don't count your check-ins before they cash.
- Vanna Bonta
Money is hard to earn and easy to lose. Guard yours with care.
- Brian Tracy
Financial sense is knowing that certain men will promise to do certain things, and fail.
- Edgar Watson Howe
The art of living easily as to money is to pitch your scale of living one degree below your means.
- Sir Henry Taylor
The art is not in making money, but in keeping it.
- Proverb
Never spend your money before you have it.
- Thomas Jefferson

Rule No. 1: Never lose money.
Rule No. 2: Never forget rule No. 1.
- Warren Buffett

If money management isn't something you enjoy, consider my perspective. I look at managing my money as if it were a part-time job. The time you spend monitoring your finances will pay off. You can make real money by cutting expenses and earning more interest on savings and investments. I'd challenge you to find a part-time job where you could potentially earn as much money for just an hour or two of your time.
- Laura D. Adams

Before you can really start setting financial goals, you need to determine where you stand financially.
- David Bach
Money... is like a beautiful thoroughbred horse - very powerful & always in action, but unless this horse is trained when very young, it will be an out-of-control & dangerous animal when it grows to maturity.
- Dave Ramsey
It's not your salary that makes you rich, it's your spending habits.
- Charles A. Jaffe
Money, like emotions, is something you must control to keep your life on the right track.
- Natasha Munson
1. “Money is made by sitting, not trading.” – Jesse Livermore
2. “Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.” – Larry Hite

3. “Letting losses run is the most serious mistake made by most investors.” – William O’Neil
4. “[Michael Marcus – another top trader] taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgement, being wrong, making your next best judgement, being wrong, making your third best judgement, and then doubling your money.” – Bruce Kovner
5. “That cotton trade was almost the deal breaker for me. It was at that point that I said, ‘Mr. Stupid, why risk everything on one trade? Why not make your life a pursuit of happiness rather than pain?’” – Paul Tudor Jones
6. “The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance.” – Ed Seykota
7. “When I get hurt in the market, I get the hell out. It doesn’t matter at all where the market is trading. I just get out, because I believe that once you’re hurt in the market, your decisions are going to be far less objective than they are when you’re doing well… If you stick around when the market is severely against you, sooner or later they are going to carry you out.” – Randy McKay
8. “Frankly, I don’t see markets; I see risks, rewards, and money.” – Larry Hite
9. “When I became a winner, I said, ‘I figured it out, but if I’m wrong, I’m getting the hell out, because I want to save my money and go on to the next trade.’” – Marty Schwartz
10. “I always define my risk, and I don’t have to worry about it.” – Tony Saliba
11. “The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliché, but the single most important reason that people lose money in the financial markets is that they don’t cut their losses short.” – Victor Sperandeo
12. “I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell.” – Tom Basso
13. “If I have positions going against me, I get right out; if they are going for me, I keep them… Risk control is the most important thing in trading. If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in.” – Paul Tudor Jones
14. “I learned early that there is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again. I’ve never forgotten that.” – Jesse Livermore
15. “Learn to take losses. The most important thing in making money is not letting your losses get out of hand.” – Marty Schwartz
16. “The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages.” – Jesse Livermore
17. The goal of a successful trader is to make the best trades. Money is secondary.” – Alexander Elder
18. “I have learned through the years that after a good run of profits in the markets, it`s very important to take a few days off as a reward. The natural tendency is to keep pushing until the streak ends. But experience has taught me that a rest in the middle of the streak can often extend it.”– Marty Schwartz
19. “I’ll keep reducing my trading size as long as I’m losing… My money management techniques are extremely conservative. I never risk anything approaching the total amount of money in my account, let alone my total funds.” – Randy McKay
20. “In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” -Peter Lynch
21. “What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.” -William O’Neil
22. “It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett
23. “In investing, what is comfortable is rarely profitable.” – Robert Arnott
24. “I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have” – Paul Tudor Jones.
25. “If you personalize losses, you can’t trade.” – Bruce Kovner
26. “Don’t focus on making money; focus on protecting what you have.” – Paul Tudor Jones
27. “Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected. “– George Soros

Testing a simple system last few day

One of my friends very small trading account I have traded last few days. In Fomc news time I have make few mistake and after that I have gain. Here is screen short -

last Years I have face large dd in my personal account. I am now focusing on MM more carefully than before.

This is now new TMP Trading system. WE will only trade this system
No other indicator
Trading time frame is H1 only

I have add news indicator, ART indicator and Automatic SL TP EA.

Few h4 chart trade example with the trend

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.

Good to see you growing and learning, Added on skype greetings Robin

This is how we will observe our TMP chart

There is a fundamental characteristic of unsuccessful forex traders: they trade forex because its exciting, cool, or for its sex appeal. The mystery behind the charts, the notion that profits (although elusive) do really exist, and that money can be made quickly (but not predictably) all add up to create a romantic fantasy that is too appealing to avoid. When they start to lose money, they leave their positions open, close their eyes, and hope that the trap is miraculously opened so they can be free again. This group the Possums is the largest block of forex traders.

There is also a fundamental characteristic of successful forex traders. They trade forex because it makes them rich. They trade because they know how to do it. They do not trade for fun. Many of them are unimpressed by their own success.

We can build position when market is highly trending. I will need little experience and patient to build position

I was EMA and Price action trader so I know How ema and candle work. We can trade this system many way. I am still studying our New TMP Method. I will take some time to right all the rules for the system.

AT Present I can give you Ida about what toos we use in this system.
1. EMA for Trend direction
2. MACD for signal confirmation
3. Candle signal - who is in current control of the market.
4. Daily and weekly atr for Target and range understanding.
5. Trend lines for with the trend break out.
6. Fibonacci for Market structure understanding.

I have to summarize all of this. I have to test what works in current market.

Usdjpy if 110 hold market could move higher toward 113 level

Here are the five most common cognitive biases of sports gamblers that lead to mistakes:
1. The availability heuristic
Also known as recency bias, the availability heuristic is a bias that causes humans to place too much weight on an event they can readily imagine. Whether it's a blowout on "Monday Night Football" or a no-hitter in a pitcher's last outing, it's hard for us not to be swayed by the memory of recent dominance.
One recent example of this bias involved the Pittsburgh Steelers. The Steelers had a tremendous run with three huge home wins against Houston, Indianapolis and Baltimore. Quarterback Ben Roethlisberger was nearly perfect, throwing 14 touchdown passes and zero interceptions in that span. Anyone who watched those games could see visions of Big Ben and his historic run, and as Pittsburgh prepared for a road game against the hapless 1-8 New York Jets, it was hard to imagine the Steelers losing.
The line reflected that sentiment, as the Steelers were bet up to 4.5-point favorites and the majority of the action was on Pittsburgh.
We all know what happened. The Jets dominated the Steelers, winning easily 20-13, and Roethlisberger had one of his worst starts at a professional.
While this one result proves nothing, it does illustrate the bias we all have when we can readily imagine one and only one outcome.
2. The gambler's fallacy
This is an appropriately named bias describing the tendency to look for patterns in past events that don't have any predictive value. The simplest example of this bias is in the game of roulette. We've all seen the magical sign above the roulette wheel that shows the results of the last 20 spins. If the last 10 have all landed on a red number, the natural inclination is to believe that black is "due."
But in this case the history means nothing, because each spin of that roulette wheel is random and independent. There is nothing learned from the past spins, though many gamblers have stared at that past pattern of spins and believed that black was an advantage play on that 11th spin.
Similarly, gamblers will look at past outcomes in sports and look for patterns that they hope will predict the future. Say a good baseball team, like the Oakland Athletics, has lost five games in a row; the thinking is that it certainly won't lose six in a row. Yet for the most part, each game the A's play is an independent trial; the fact that they have lost five in a row isn't an indication that they are due to win a game.
Sports bettors will also face this issue, believing after winning a few bets in a row that they are a hot streak. They may end up betting more games than usual because they want to take advantage of that hot streak. But their hot streak is likely a product of variance, not any sort of higher power controlling their luck or elevating their skill. Their win percentage for their next bet will be in line with what their historical win percentage is, not some recent streak of good fortune.
One of my favorite examples of this flawed thinking comes when pundits look back on the season-to-date betting trends. They will look at how underdogs have fared versus the spread and make statements like "this is the year of the underdog" or "this is the year of the over" with the idea that these past trends have predictive power for the future. The reality is that these trends have little-to-no predictive power. There is no relation between these past events and future events. In fact, since betting markets are dynamic, future lines will reflect and adjust for any biases in the data.
3. Confirmation bias
We all have a tendency to remember or seek data that supports a hypothesis we have already and forget or disregard details that contradict our hypothesis. This is called confirmation bias, and it has led many a gambler astray. A great example of this from my past comes from the blackjack tables.
To this day, many people ask me: "What did you do about the other people at your table?" I usually answer, "What do you mean?"
They respond by asking about other players at the table who don't know how to properly play blackjack and often do the "wrong" thing. "How do you keep them from ruining the cards?" they ask.
"
We all have a tendency to remember or seek data that supports a hypothesis we have already and forget or disregard details that contradict our hypothesis. This is called confirmation bias, and it has led many a gambler astray.
"
They are referring to a relatively common belief that others at your table can negatively affect the cards you get at the blackjack table. The common explanation is, "I see it all the time. I have 15, and the dealer has a five up. The guy next to me has 15 also. I stand (not taking another card), but he decides to take a card and gets a 10 to bust. Then the dealer flips a 10 and gets a six to make 21 and beats me. If that guy didn't take a card, we all would have won. He ruined the table for all of us."
But the problem with this explanation is that the player could have easily hit (taken a card) and received a six. And then the dealer could have hit and received a 10. In this case, the same player would have saved everyone at the table. But because we want to believe that this person at our table isn't as good at blackjack as we are, we remember only the times the other player did something that hurt us. This is confirmation bias.
In sports gambling, we see this when gamblers have an opinion on a game and start quoting only facts that support that opinion. Touts are often guilty of this when they use meaningless trends to support a pick they are making. Often they are ignoring just as many trends that would point to the other side of their bet.
If you Google "Super Bowl 2014 betting trends," you will see equal numbers of trends pointing to Denver as you will pointing toward Seattle. Yet different articles will indicate trends pointing clearly to one winner. OddsShark of SB Nation wrote a column titled "Super Bowl 2014: Betting trends favor NFC, underdog in Broncos vs Seahawks," while NBC Sports ran an article quoting the same source titled "Trends, computers favor Broncos on Super Sunday."
Data should help you come to a conclusion, not the opposite.
4. Outcome bias
This is a powerful bias for gamblers to overcome because sports are an outcome-dominated industry. For the most part, you either win or lose -- and that's all that matters. But what contributes to that outcome can be largely luck or variance.
For example, in blackjack there is a set of rules called basic strategy that governs each action you take at the table. Based on what cards you have and what the dealer is showing, there is a right action a player should take.
If the dealer has an eight showing and you have 16, basic strategy would tell you to hit. If I was standing behind you at a blackjack table and you had that exact situation, I would tell you to hit. If you got a five to make 21 and won, I'm a genius. If you get a six to make 22 and lost, I'm a moron they should have never made a movie about.
But in both cases the decision and process were correct, which is why it's important not to focus on outcomes but instead what goes into that outcome.
Take the Week 6 MNF game between the St. Louis Rams and the San Francisco 49ers. The Niners won that game 31-17, and if you looked at only the score you would have thought they completely dominated. But it was really two plays that caused the game to be a blowout. The first was an inexplicable gaffe by the Rams defense that allowed the Niners to score an 80-yard TD right before halftime, and the second was a meaningless interception return for a touchdown with one minute left in the game.
While both of these plays certainly were indicative of St. Louis' weaknesses, they overshadowed the outcome of the game and skewed the final result. Perhaps that's why the Rams were a 10-point underdog to the 49ers three weeks later -- a game the Rams won outright 13-10.
5. Hindsight bias
Hindsight bias is probably the most fun bias of all of these, and it is exactly what the name suggests. It's the consummate Monday morning quarterback, looking back after the fact and identifying all the things that should have been so clear to you now that you know the outcome. However, the only reason those things are so clear is that you know the outcome.
You hear it all the time on sports gambling shows when the hosts will talk about the previous week and will play revisionist historian. Take the New England Patriots' Week 9 43-21 blowout over the Denver Broncos. Before the game, the narrative was that Denver was the best team in the league by far. After the game, the narrative was any time you can get points with the Patriots at home you should take it.
So how do you overcome these biases? The simple answer is that you can't truly ever overcome them. As humans, we're always going to be subject to biases. The best way to combat them is to try to remove subjectivity from the decision-making process and understand how these biases can color your decisions. Don't ignore data if it doesn't align with your existing opinion. Avoid overreacting to small sample sizes, look at analytics and stats before making your decision, not vice versa, and create models or frameworks that are devoid of subjectivity.

Scaling in – Not Averaging Down
Although fading the trend may not be the rule most retail traders wish to follow, it is the dealers’ second trick that can be of tremendous help to retail speculators. In his very informative book, The Market Makers Edge, Josh Lukeman writes, “Successful market makers have controlled the ego-based need to be absolutely correct. Because markets are constantly in motion, it is almost impossible to be exactly right on (in your entries).” Such a probative approach to the markets is at the heart of most successful professional trading. Dealers know full well that their first foray into the trade is often wrong. They rarely commit the full position amount on the first try. One of the key differences between professionals and amateurs is that professionals scale into trades while amateurs average down. This statement may seem like clever wordplay, but it’s not. Let’s assume that both the professional and the amateur decide to risk two percent of their capital account on a particular trade. The professional knows full well that he will not be able to hit the exact entry point on his first attempt. Therefore, he may allocate only 0.3% of his capital to the first entry, 0.6% on the second and 1.2% to the third – and stop himself out at -2.7% away from original entry price (-2% risk). On the other hand, the amateur will plow in with a full two-percent position, and then when the trade goes against him, he may decide to “double down again” and then average in yet a third time. At this point, the amateur has committed six percent of his capital to the trade, and if the trade continues to move against him, he will throw in his towel with a massive - 12% loss (sum of -6%,-4% and -2% losses). Five disasters like that and the amateur loses 60 percent of his account. In a zero-sum game, he has just moved much closer to zero.

Trading made Profitable system Idea.
This video will give you basic idea of TMP Moving average,Fibonacci and trend line. Practice all the idea.

hASIB VAI ,so many system strategies?? How many trading system /strategy you follow? i think so many system create so many confusion..imho

Hello Classy how are you. I know your from Bangladesh.
I have just explain the EMA and Fibonacci and trend line related idea. You can use this idea in your trading system too. It is just basic.
I will bring discipline and rules soon. first let me give some basic so that people can practice and increase analytical thinking.

Go ahead bro.yea i am from Bangladesh.