[Ingot54]

Thanks for staying with me through that simplistic story.

In the posts ahead, I will be outlining a strategy that is known as Position Trading by most traders, because trades run over more than the usual few days of swing trades, and certainly resemble nothing like scalping, News Trading or day trading or the like. My brand of “Position Trading” may be a little different from the common concept of it … but there it is.

Further, I will show you why it is preferable in my view to trade WITHOUT STOPS.

I knew that would raise eyebrows. What I mean is … trading without CLOSE stops. I still prefer to have my stops set around 250 pips away. And the reason for that will become clearer as we go.

The concept I would like you to consider right now, is trading without using all of the leverage available. There is NO reason at all to use leverage of 50:1 or 100:1 or even 400:1 and higher. It is very foolish, particularly if you have not been trading successfully for an extended period of time.

Many traders who are doing OK are a particularly secretive primate really! Highly sucessful traders think entirely differently from we forum animals! (I don’t call them PRO traders – I do not actually know any PRO traders.)

Another concept I would like you to consider, is entering your trade with just a very small position – perhaps one tenth of your usual position size.

I know some of you are already thinking: “How can we make money by placing such small trades?”

How indeed!

Watch this space.

So far we have introduced the following concepts:

1) WIDENED stops
2) LONG time-frames
3) LOW leverage
4) SMALL position sizes

If you are following this thread so far, I would like you to do some homework.

Would you please look at some of your less-successful trades and apply some of the concepts I have introduced so far.

I have no objection whatsoever to anyone posting any experiences they have had which might have had a softer landing, or a brighter outcome, with the application of just ONE of the four concepts above.

Homework exercise Number Two:

Start thinking of ways to make serious money by using the above principles ... and another factor or two!

I don't mind in the least if you pre-empt my spiel in any way and have a go at making this work. This is where I am hoping you might surprise ME!

It’s bed-time here in Australia – the sun has set 6 hours ago in this land down-under (The Antipodes to our Pommy brothers and sisters!) and I have some charts ready to post for you tomorrow.

It might be wise for some of you to cut your losses as soon as you are able to and take a breather from trading. I hope I am not building you up for a let-down with this method – I don’t think so.

But I do know that the principles we will discuss here will be at the very least beneficial to your future trading endeavours, and if we achieve that, then the effort will have been fruitful for us all.

With best wishes

Ingot