Some of my thoughts + Trading System

[4newbie]

which emas do u use ? for close ?

[smallvillerep]

Originally Posted by elang

For everyone who is just starting out.

1. You will loose money
2. You will cry if you’re emotional
3. You may even reach the verge of suicide
4. You will have people try to put you down
5. Depression
6. You will want to give up
7. You will want to give up once more
8. You will want to give up again
9. You will never give up if you have a goal set, so set it and you will have reason to go on.
10. You will have good trading days
11. You will have bad trading days
12. You will realize that a minimum of 2:1 income to expense ratio may as well be just as important as trading itself
13. You will try many trading systems
14. You will most likely develop yours at the end
15. You will use 100 indicators at some point and most likely use just a few at the end
16. You will realize that keeping a trading diary and plan. Is the same as your mum telling you to get your sleep: its true, If u do it u will be healthy and if you don’t you’ll always fall sick
17. Don’t get greedy!
18. Trade Pips not Money
19. 10 Pips a day is good
20. 20 Pips a day is great
21. 30 Pips a day is awesome
22. Accept loosing at most 50% of the time and winning the other 50%
23. Get a life. Exercise, eat, sleep. The better your health the better your trade.
24. Keep it professional! Take breaks! Wear a suit and a tie if you have to even though you’re going to the next room, but have the right mind set, this is business and you are both the President and the Employee
25. Don’t withdraw all your money from your account, compound what you can and aim to exponentially increase your lots while keeping your Pippage the same.
26. Patience and understanding is key and it is the difference between a loosing trade and a winning trade.
27. Educate Yourself. Dumb people loose money and Smart People make it in this trade.
28. Remind yourself why you do what you do every once in a while.
29. When you loose a trade have an optimization protocol:
- Ask yourself why you incurred an expense
- Understand why you incurred an expense
- Tell yourself what you need to do to avoid a reoccurrence and remember what you said
30. Try not to trade news
31. In most cases if there is something you can’t explain with Technical Analysis. It’s normally news’ fault.
32. Have at least 2 internet connection setup, 1 for back up.
33. Don’t trade when you are tired, drunk, sleepy or emotional

You are just exactly right. I am going to remember and been obsessed with this forever!

[orpips]

Couple things I disagree with. Maybe they've already been discussed but this thread is 30 pages

18. Trade Pips not Money
19. 10 Pips a day is good
20. 20 Pips a day is great
21. 30 Pips a day is awesome

10, 20, or 30 pips a day might be good, great, awesome, or none of the above. If you risk 1% on a trade and the appropriate stop loss for that trade is 10 pips, then a 20 pip gain is great -- you just made 2%. If your stop was 30 pips, then a 30 pip win means you made 1%, and one loss would wipe that out.

Someone might say "I only trade once a week, but it works out because I make 300 pips on that trade" -- well, if their stop loss was 150 pips and they risked 1%, then they only made the same 2% as the guy above who made 20 pips -- and it took all week rather than an hour.

I think people get too caught up in terms of dollars AND pips. All that matters is the percentage gained vs percentage risked.

25. Don’t withdraw all your money from your account, compound what you can and aim to exponentially increase your lots while keeping your Pippage the same.

Personally I think you should only keep enough in your trading account to make sure you have a comfortable buffer against any margin calls -- which should never be an issue anyway, with proper MM. You should *have* the money compounding, I just don't think it should all be in a place as relatively unsafe as a forex broker. Have the money set aside -- i.e., don't spend it, and have it there to back up the size of the trades you're making -- just somewhere a little more secure.