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samuel23

Tip for Better Trading :

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Many traders can't (or don't) take the small losses. They often stick with a loser until it really hurts, then take the loss. This is an undisciplined approach...a trader needs to develop and stick with a system.

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Many traders can't (or don't) take the small losses. They often stick with a loser until it really hurts, then take the loss. This is an undisciplined approach...a trader needs to develop and stick with a system.

 

You'd be amazed by the amount of traders without a system and trading plan. Some even teach and preech on it to not have a stop at al.

When people go to a casino with a 100 bucks they usually loose it because they are ok with that because in the end "the house always wins, right?" They are the players without a plan. But there are players out there that bring home a good living from the BlackJack table, these are the players with a good plan and system and stick to it and modify it when there is a flaw.

The other day i saw a webinar on very well know website. The guy who led the webinar is actually a very well known FX trader but i couldn't believe what this guy was "Teaching". At first he started off saying that his system Buys high and Sells low (????). Then he say's that he is perfectly fine by having a 50 pip stop to take a 20 or 30 pip gain (????) , whatttt?? a negative R/R ratio???? Then this guy is selling his service or system online.

Actually his real initials are B.S. believe it or not , i'm not joking :haha: thats exactly what i thought of his system :D

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Hey Obsidian, this is really funny. I totally agree with the thumbnail. Wow we always do like this and am sure for expert traders also it should be the same. Anyway i wish all of you a happy trading. Thanks for your comments :))

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Hi mate, hope these tips help you:

 

Trade pairs, not currencies — Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.

 

Knowledge is Power — When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments.

 

The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.

 

Unambitious trading — Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.

 

Over-cautious trading — Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don't place reasonable stop losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.

 

Tiny margins — Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits. However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.

 

No strategy — The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.

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The other day i saw a webinar on very well know website. The guy who led the webinar is actually a very well known FX trader but i couldn't believe what this guy was "Teaching". At first he started off saying that his system Buys high and Sells low (????). Then he say's that he is perfectly fine by having a 50 pip stop to take a 20 or 30 pip gain (????) , whatttt?? a negative R/R ratio???? Then this guy is selling his service or system online.

Actually his real initials are B.S. believe it or not , i'm not joking :haha: thats exactly what i thought of his system :D

I know exactly who you are talking about, Boris Schlossberg. But you left out the part where he is willing to lose 50 to gain 20 .... on high probability trades only.

 

If you win at a high percent you can use a wider stop. Although I don't trade like he does there is merit to it.

 

You just have to understand it and it is clear you do not.

 

Another thing about his name, notice what is in the middle of his last. :)

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I

 

Another thing about his name, notice what is in the middle of his last. :)

 

:rofl: and berg means mountain

 

Anyway, I think as Samuel23 pointed out if you keep S/L too close you will bleed

your account to death with 1000 cuts - I know I did.

 

Also imo anything shorter than 1H time frame is counterproductive.

Scalping in FX is complicated due to the spread. In order to make any

meaningful profit you need to trade more than one lot. I know there are

plenty of scalper traders who claim to be successful but I think for short

term in and out trading futures are much better suited.

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:rofl: and berg means mountain

 

Anyway, I think as Samuel23 pointed out if you keep S/L too close you will bleed

your account to death with 1000 cuts - I know I did....

And I believe that too.

 

That is not what B S advocates though.

 

But I'm not here to defend or destroy another trader.

 

R/R ratios are meaningless in the end. And having a price target is not the way to go either. The market does not care where someone's target is or what r/r they are using. Price action only should determine where a trade should be exited and even then it is not perfect.

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Many trader makes losses because they are greedy as well as impatient, the thing is that u need to be very disiplined. The two things to avoid in stock market and particularly in intraday trade is panic and greedy. When one enters in a trade and goes in opposite direction, don’t be panic. Wait some time, keep strict stop loss. If stop loss triggers, don’t enter again. Wait some time and relax, watch the market trend and enter in some other stocks. Another thing to avoid is greediness.

 

I thinks after all its my personal opinion, In intraday trade book profit in every highs as because i uses the share analysis tool of dynamicslevel. Wait for a dip and enter again if trend sustains.

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. But you left out the part where he is willing to lose 50 to gain 20 .... on high probability trades only.

 

 

Ehhh, did you take a good look at what you just wrote there?

 

1) He is willing to lose 50 to gain 20. Thats not a very High Probability set up now is it?

 

2) On High Probability trades only. What???? does he also trade LOW probability trades??

 

You are right , i real real do not understand this guys way of trading ,...thank god for that!!

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Ehhh, did you take a good look at what you just wrote there?

 

1) He is willing to lose 50 to gain 20. Thats not a very High Probability set up now is it?

 

2) On High Probability trades only. What???? does he also trade LOW probability trades??

 

You are right , i real real do not understand this guys way of trading ,...thank god for that!!

He is willing to risk 50 to make 20 on high probablility trades - only.

 

Do you understand the written word.

 

If you know anything about horse racing where there is a favorite at 2 to 1 and a bunch of long shots at 50 to 1. Which horse would you be more comfortable wagering a greater sum on?

 

Of course the long shots pay off bigger but only on the rare times they actually win.

 

If you have strat A at high probability and strat B with low probability which would you go big on?

 

Simple math: risk 50 / make 20, winning 8 out 10 times equals 160 - 100 = net 60

 

This is for a scalper type scenario. Something most traders lose at. As I said I don't trade this way but for those who have a short attention span and have a need to have a high win rate it can work if done right.

 

BTW myself I don't use R/R ratios at all. Price doesn't care.

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He is willing to risk 50 to make 20 on high probablility trades - only.

 

Do you understand the written word.

 

If you know anything about horse racing where there is a favorite at 2 to 1 and a bunch of long shots at 50 to 1. Which horse would you be more comfortable wagering a greater sum on?

 

Of course the long shots pay off bigger but only on the rare times they actually win.

 

If you have strat A at high probability and strat B with low probability which would you go big on?

 

Simple math: risk 50 / make 20, winning 8 out 10 times equals 160 - 100 = net 60

 

This is for a scalper type scenario. Something most traders lose at. As I said I don't trade this way but for those who have a short attention span and have a need to have a high win rate it can work if done right.

 

BTW myself I don't use R/R ratios at all. Price doesn't care.

 

 

Hi Suntrader,

 

Thanks for the math class. I just realize i am not as good at math as you are.

Could you explain me and maybe all the other traders out here what happens if you risk 50 to make 20 and win 7 out of 10 times? even if you would take trades ONLY on High Probability entry.

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Hi Suntrader,

 

Thanks for the math class. I just realize i am not as good at math as you are.

Could you explain me and maybe all the other traders out here what happens if you risk 50 to make 20 and win 7 out of 10 times? even if you would take trades ONLY on High Probability entry.

When I went to school 70 was a passing grade. A high grade didn't start till 80 up into the 90's. 100 naturally was excellent.

 

High probability is not 70.

 

So guess why he uses 50 and 20. He doesn't add them together. :doh:

 

He has a win expextancy of 80% or higher.

 

Is it true? I don't know and I don't care.

 

All I have been doing is explaining, obviously not to your satisfaction, why he trades the way he does.

 

It makes perfect sense to me, even if it is not my style.

 

But you on the other hand won't accept it because it doesn't make sense to you how someone can win, in the end, by risking more.

 

You'll get it, someday.

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When I went to school 70 was a passing grade. A high grade didn't start till 80 up into the 90's. 100 naturally was excellent.

 

High probability is not 70.

 

So guess why he uses 50 and 20. He doesn't add them together. :doh:

 

He has a win expextancy of 80% or higher.

 

Is it true? I don't know and I don't care.

 

All I have been doing is explaining, obviously not to your satisfaction, why he trades the way he does.

 

It makes perfect sense to me, even if it is not my style.

 

But you on the other hand won't accept it because it doesn't make sense to you how someone can win, in the end, by risking more.

 

You'll get it, someday.

 

If he is risking 50 ticks to make 20 ticks at an 80% win rate in ES then he will make about $58 at 12.5 a tick and about 4.5 in commissions per contract. If he is risking 5 to make 2, he can't win with an 80% winrate at 12.5 a tick and commissions per contract. I do not mean to complicate things, but the devil is in the details.

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When I went to school 70 was a passing grade. A high grade didn't start till 80 up into the 90's. 100 naturally was excellent.

 

High probability is not 70.

 

So guess why he uses 50 and 20. He doesn't add them together. :doh:

 

He has a win expextancy of 80% or higher.

 

Is it true? I don't know and I don't care.

 

All I have been doing is explaining, obviously not to your satisfaction, why he trades the way he does.

 

It makes perfect sense to me, even if it is not my style.

 

But you on the other hand won't accept it because it doesn't make sense to you how someone can win, in the end, by risking more.

 

You'll get it, someday.

 

Its all OK mate, no worries.

The title of this thread is "Tip for better trading". I just did not see much merrit in B.S.'s system. Risking 50 points to gain 20 points is in my eyes not a very good example of a "tip for better trading" , i don't care if your win EXPECTANCY is 100%.

:missy:

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I actually went back to watch the Boris Schlossberg last webinar. I still couldn't watch the whole 44 minute webinar but i wanted to see if there is anything i missed from that webinar as some traders see a good way of trading in this method.

Now, for the sake of this thread which started out as the "tip for better trading" thread i would like to point out to newer traders that:

-Its not very wise to start out trading as a scalper (especially not in the spot fx).

-Its not very wise to have a negative R/R ratio (i.e. bigger stop loss than target point)

-Its not very wise to take trades without knowing your R/R ratio at all. (If you have a reason or criterea for your entry , the opposite of that criterea might be your exit,....or at least a reason to move your stop/ trail your stop).

And its certainly not wise (and this is a big one) to buy higher when price is already high or sell lower when price is already low. This was another thing that Boris Schlossberg was preaching about.

 

Off course, looking at Boris Schlossberg's last webinar it very apparent that he is a momentum trader. He say's that he is succesful with it , maybe he is but i think its very dangerous to trade that way, especially for newer traders.

 

Not trying to be the expert here, just thinking the logic through.

 

Good trading to all.

 

:2c:

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That great guys, many thanks for your comments and ideas. I have read all of them and i can say that all of you have different style of trading Forex. However, i have share these tips as it is helpful to me and i usually use this style to trade on daily basis. I wanted to see whether we have some similarities in trading forex and also i wanted to share it as maybe it can help some of you. Some of you did not agree with it and i can understand as you might trade differently. I just wish that we can share other thing as many here have the potential in Forex.

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That great guys, many thanks for your comments and ideas. I have read all of them and i can say that all of you have different style of trading Forex. However, i have share these tips as it is helpful to me and i usually use this style to trade on daily basis. I wanted to see whether we have some similarities in trading forex and also i wanted to share it as maybe it can help some of you. Some of you did not agree with it and i can understand as you might trade differently. I just wish that we can share other thing as many here have the potential in Forex.

 

Hi Samuel.

One thing that was very helpful to me was to throw away my trading books all together (or at least put them in a box). If you are trading with indicators then read Constance Brown book/ or books) . I once downloaded a zip folder with 250 trading books, all with their own vision on what the market should be or how the market should act and react and i got totally dazzled and confused.

Another thing,.....take of all indicators and oscillators and MA's fom your chart, sit back , look at it,............what do you really see? candles or bars wich represents peoples percieved value of the market. Talking about values, If you see that price is high up on your chart then the price (for me ) is high, nobody wants to pay a high price for anything so start thinking of selling. I'm not saying you should sell right away but you should not think about buying. all in the right context off course which is always a higher timeframe trend.

Another way i can put this: If i take a short entry, there's no way price has a chance of moving higher. When i take a Long entry , there's no way price has a chance of moving lower. Sounds all simple but i would never make that decision based on an indicator or a line i drew or because an MA is telling me that price moves lower in comparison of the last 10, 20 30 bars. Buy low , Sell high, most traders have heard it before and are sold the idea that it's not possible to pick tops or bottoms but its the only way for me.

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If you see that price is high up on your chart then the price (for me ) is high, nobody wants to pay a high price for anything so start thinking of selling. I'm not saying you should sell right away but you should not think about buying. all in the right context off course which is always a higher timeframe trend.

Another way i can put this: If i take a short entry, there's no way price has a chance of moving higher. When i take a Long entry , there's no way price has a chance of moving lower.

 

"Low" or "high" relative to what? In your case, you're defining low and high in relation to where the market has been. But that doesn't matter--it only matters where the market is going. It's pretty simple (but not necessarily easy): don't fade a trend day because the price is "high" or vice versa. Buy high, sell higher, if that's where it's heading.

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