5 Questions That Got Deleted But Still Need Answers If You Ever Want To Trade Again

Question 1 : Who Am I? A long term trader, a swingger or i scrapped.

When someone ask, what type of trader are you? … what really does it mean? Some probably would answer smartly. Oh! I don’t care, i just trade for profits. I don’t care how short or how long i have to wait.

To me, it simply mean when do you take profits. How many pips you intend to win. After all you do need to answer this question every time you place your order.

I probably redefine these terms today.

I am a long term trader, i just check on charts every now and then. I use bigger time frame, monthly and weekly chart .
I am a swingger. I check on daily chart, H4 chart only.
I am a day trader. I check on H4 and H1 chart only.
I scrapped. I check 1M chart only.

No matter which time frame you trade, you can label yourself differently.

Weekly Chart

H4 Chart

And so on and forth.

Why do you want to limit to how you trade, Just before you open up a weekly chart, you can still scrapped and vice versa on a 1 minute chart. You are your own boss when come to trading. Let your imagination run. Make trading more fun. After all, trading is a boring job. And it’s very important to answer this question when you decide to open your next trade. They said, “95% of Retail Traders losing their hard earn money.” We can’t affect the market. We chase after the market.

So the next time when someone ask you, Who you are as a trader, you may answer back specifically, I am a swingger @H4 Timeframe.

Question 2: Sell or Buy?

P/s: Not sure a post can carried how many words…
<To be Continued>

This question very much related to Who am i as a trader.

Someone ask me for a tips on forex. Which pair to trade. Do i Sell? Do i Buy?

I will simply answer him/her. I don’t know. Not because i am selfish. Its because i don’t know who you are as a trader?

Let me explain further with my analyst on EU, the most current chart.

Weekly Chart

According to Dow Theory, market consist of 3 trend, Primary trend, secondary trend and minor trend. Refer picture below.

Back to the weekly chart.

  1. If i am a long term trader @Weekly Chart

  1. If i am a swingger @Weekly Chart

  1. If i am a scrapper @Weekly Chart

Since i am only allowed 5 attachment in a post, i will explain more for this topics on my next post…

<To Be Continued>

H4 Timeframe

As you can see from the example i attached above and from the previous post. Its very hard for me to give you tips on whether you should buy or sell.

There are 10 Laws of Market Dynamics

The first 3 Laws stated as,

Law #1:
The markets are fractal in nature. That is, they display similar states and patterns in all degrees of time. Whether you’re looking at one day’s action on a 1-minute time-frame, or 3 year’s action on a daily time-frame, the same principles and types of patterns are at play. In fact, if we were to show you a chart without showing you the x-axis and y-axis and their labels, you wouldn’t be able to tell if the chart is of a time-frame spanning years, or one spanning minutes.

Law #2:
In any given time-frame, the markets can either be trending or balancing. There’s one of two things the markets can do. They can facilitate trade at a given range of prices agreed to be value by the aggregate forces of buyers and sellers (balance), or they can move directionally in search of new value areas as one side overpowers the other for a sustained period of time (trend).

Law #3:
Price moves in a series of thrusts and corrections. Prices don’t move straight up or down. They first make a directional move, then hit a stopping point, which forms a swing high (in the case of up moves). After the stopping point, price moves counter to the directional move in a corrective action. The correction can be vertical, in which case it is often called a ‘pullback’, or horizontal (correction in time instead of price), in which case it is a balance or trading range on the time-frame that is smaller than the directional move.

Perhaps due to the complications of Market Dynamics, some would probably said," Forex is a scam". One way to be more assured with your profits is by becoming a more specific traders, eg I am a @H4 swingger, @5M Long term trader and such.

Question 3: Volume

<To be Continued>

is scrapper a new kind of tading i dont know of or are you reffering to scalping?

[B]I asked myself that very question, Turbo!!

Here is the Urban Dictionary’s definition - maybe this is a good fit?


A… what??? A trading chart?

Don’t be silly![/B]

definately a fit id say :smiley:

Oh it’s such a super s|e|x|y chart. But what is the current price? I can’t see the trees, there’s a forest in the way.

Better like this?


Look at this S/E/X/Y candle!

Bullish, for sure!!


You got too much time on your hands bro :22:

Thanks for your attention and comment on my post, PipMeHappy and bobbillbrowne.

Thanks for correcting my broken english. Scalping is what i mean… haha

No. You don’t disrespect me, but the late Charles H. Dow (1851–1902), journalist, first editor of the Wall Street Journal and co-founder of Dow Jones and Company. Dr. Andrew Pitchfork, Michael J.Parson founder of channel surfing, balance dynamic, reversal magic, Ziad Mastri and Awais Bokhari a very succesfull full time future traders and many other great programmers who have coded this beautiful piece of software.

“…out of reach of most non-consistent traders…Dr. Mircea Dologa.”

P/s: Just because someone can read a more complex setup than you, doesn’t mean that they are joking with their hard earn money… :slight_smile:

Since i am a guess here, it would be rude to comment further to the so call, “FX_Men Honorary Member” Honorary? Nothing sound any from how they speak…

Chill bro.

You throw out a chart like this and PA traders everywhere always knock it. Here is the thing. You dont need any of it. Price and time. Only two bits of info we get. All we need. So i eagily await your next post on volume.

And honorary means we participate. Nothing to do with skill bank balance or whom our boss at what bank is.

Hey forex88, welcome… Take no notice, as Bob says, I have too much time on my hands… so,.do.not take offence at my posts, poking fun at your charts…as for your ‘broken’ English, it is my second language, so what do I know anyway :wink:

The ‘honorary’ status, as Bob says, is.not.measured.by trading balance, and it is only a measure of.how.active one is… You have to realise that when you have been on these forums as long as I have, some.things get a bit repetitive: the trolls; the countless new forum members with ‘road to the millions’ threads; the hundreds of threads about ‘technical systems’; the attitude that some people give you when you try to point out that there is no.magic system to.make your trading work. .
It gets a bit repetitive.and a bit draining… So i humour people sometimes… take no notice… There are some ‘real’ traders on here, like Bob, but they and their threads are literally drowned by the countless new threads of people who sometimes do not even try the ‘search’ button or look beyond page 1 of the threads…It is an ego thing, they want attention but sometimes they are saying nothing new, or ground-breaking, or useful…

So that is where I am.coming from haha

Aye :wink: Trading can be a bit boring :slight_smile:

Volume to me simply means how well you manage your trading portfolio, how dicipline you are when come to managing your own fund, your capital protections which leads to trading psychology. Have you ever going through a losing stretch while risking too much of your account per trade, likely become far too emotional and start trading based on fear. Your psychology may not be able to recover and you’ll likely lose the rest of the money or be forced to quit?

All professional traders is a long term traders. They anticipate where the market would be in 6, 12 months or more. They don’t trade like how we trade. They don’t open their positions today and close it the next day, according to one of the most renowned hedge fund manager who used to work with Goldman Sack. They don’t open up the financial news portal today to start to trade the news. Only in an extreme volatile market conditions that exceed certain percentage of risk over their trading portfolio, they swap to short term trading.

And so back to us as a retail traders. How can we have a trading edge over them.

Lets now play a game of coin flipping. Take out a coin and flips it 10 times. The results is not consistence. It can be 3 times head and 7 times tails or vice versa or any of the combinations of 10. The results could easily be titled to one side based on short-term randomness. This show that in any probability distributions, lucks dominates in the short-term.

Now, flip it to 1 million times. Whether you’re flipping a coin ten times or 1 million times, you never know on any given flip which side it’ll land on. But the difference in the million flip scenario is that it is a large enough number of flips to allow the law of probability to play out. In that scenario, you are very likely to get to 500,000 of each side. Probability plays out in the long-term and luck gets largely cancelled out.

Most traders don’t understand how short-term lucks and long-term probability work. They attempt to be right on any given trade that they can take, not realizing that this is like trying to flip heads on a coin. That is they try to control short-term luck (which can’t be controlled) while they really should be focusing on the long-term probabilities of their trading. Just focus on the correct process, and if you’ve built a good strategy with solid money management, the odd will play out in your favor in the long run and you will make money

Back to our topics on volume. Just say i have $1,000 as my capital. How do you set your volume based on the $1,000 i have? or even $10,000 or more.

<To be Continued>

Excellent post, UK Forex…excellent…

I have $1,000 as my capital. How do you set your volume?

First, i will divided my capital into 33 trades i can take. Which means i will only Risk 3% out of my capital, and i will only take 5 trades at one time. Which mean i will never risk more than 15% of my trading portfolio.

In that one trade, i again will divided it into 50 pips. For this example, the position size, volume of my trade would be $1,000 divided 33 equals $30.3, then divided it again to 50 pips equal to 0.6 volume.I would look for any trade that i can place my stop lost within 50 pips from the HH (Higher High) or HL (Higher Low) Just say that my risk/rewards is 1/3 (i’ll share more how i find my risk/rewards later). Now just say that my winning over losing is only 30% to 70%.

Out of 10 trades,

3 x 3 Rewards = 9
7 x 1 Risk = 7,

Minus the spread, I probably ended up draw even if my winning rates is only 30%. After every 33 trades,
i again divided my capital plus (gain/minus) with 33 trades. I analyst the 33 trades i took, ask myself why i gain or losing trade. I keep working on my chart analysis and avoiding trading half and hour from and after the major news release. I have survived 100 trades by now. I have sharpen my skill and now my winning rates is 50%. In this scenario, you would have already gain a trading edge, and now consistently profits from forex every month.

Many new trader having a wrong mindset when they start trading. Oh! I want to make $10,000, $50,000 in one month. [I][B]The right mindset would be, can my capital survived the learning process until i can develop a positive expectancy strategy which i’ll then consistently making money every month from forex.[/B][/I]

Best Regards,
Victor Lew

[B][U]The 4 Major Psychological Traps and How to Avoid Them[/U][/B]

There are 4 major psychological biases that all human beings have a natural tendency to display. When these biases interact with the world of trading, disastrous outcomes often occur. Being aware of the biases is a major step towards avoiding the traps that they create for you in your trading.

• [B]Outcome Bias[/B]: [I]Using hindsight to judge our decisions based on the outcome, rather than the strength of the decision given the information we had.[/I]

o If we make a decision to take a trade and it turns out to be a loss, we tend to think that it was a bad decision. If it turns out to be a profit, we tend to think it was a good decision. The reality is that the outcome of the decision is irrelevant, and thinking that it’s relevant is the outcome bias in action. The only relevant thing is the information you had before the outcome became known, and you can’t let later information bias your judgment regarding the strength of your decision.

o Thinking in this manner, a mistake becomes defined not as a loss, but as any instance in which you don’t follow the rules of correct trading process that you’ve learned. If you break the rules and it results in a good outcome, that’s nothing to be proud of because you’re picking up bad habits that will degrade your edge in the long run. If you see all the makings of a good trade and take it, it’s something to be proud of even if it ends up being a loss. And this applies to decisions regarding profit exits too.

• [B]Loss Aversion Bias[/B]: [I]The tendency to strongly prefer avoiding losses to acquiring gains.[/I]

o This bias tells us that we will feel much worse when we lose than we will feel good when we win. The intensity of the bad feeling associated with losing is much larger than the good feeling associated with winning. As such, when you fall into the trap this bias sets up, you’ll start trading not to lose versus trading to win. But you’re not in this to just protect your capital. Otherwise you could have just kept your money in the bank. You’re in this to make money, and therefore you cannot let this bias keep you trading scared.

o A related effect that comes forth from this bias is “The break-even effect”. Because people hate losing so much, they’ll do anything to get back to break even when they’re trading. Whether in a particular trade, or in a day, or a week etc., they’ll take larger risks and worse risks just to get back to break even so they don’t experience losing. Experiments have proven this to be true, which is why you need to be aware of the greater propensity to take risks when you’re down money and not let yourself fall into that.

• [B]Sunk Cost Bias[/B]: [I]Making decisions based on already incurred costs or losses instead of future incremental benefi[/I]t.

o To understand sunk cost bias it helps to look at an example. If you bought a $500 ink jet printer that you plan to use extensively for the next 3 years, and if the ink costs $100 per month, then you should be willing to throw out this new printer and buy another $500 one that is now on the market with $20 per month costs in ink. This is the rational decision because you will save $80 a month and your savings in 3 years will be $2,880, which greatly outweigh the $500 new cost. But most people will incorrectly factor in that old $500 cost to their decision and feel like they can’t throw that away. In reality, even if the old printer cost you $3,000 you should STILL throw it away (assuming it can’t be sold) because that cost is in the past and is irrelevant now. The only relevant thing is how much you’ll be saving from this point forward with the new printer versus the old one. The $3000 you spent is already spent whether you throw away or use the printer. It’s a sunk cost and is irrelevant for any decision you make now.

o Sunk cost bias shows up in trading when you’ve lost money on a trade and the thought comes into your mind that you can’t exit now because you’ve already lost this much and so it makes sense to risk a bit more to get it back. But the reality is that the loss is irrelevant. The question is would you be taking this trade right now if you hadn’t been in from before? And if not, you should be exiting. Another way it shows up is in thinking about lost time. You may be in a trade for hours and think that you can’t exit now because you’ve already invested so much time and energy in the trade. But again, the past is a “sunk cost” and is irrelevant for making a decision on the trade. Finally, this bias can also show up when you’re in a drawdown (whether intraday or longer) and you start making decisions based on your losses. You may think “what’s another few hundred dollars?” and take risks that you shouldn’t. The reality is that what you’ve lost is irrelevant to the decision to enter any trade going forward.

o To spot sunk cost bias and avoid its trap, simply ask yourself if you would make a different decision if you hadn’t lost anything on the trade, day, week etc. If the answer is yes, you know you’re falling into sunk cost bias and you should make the decision you would make assuming no previous losses.

• [B]Recency Bias[/B]: [I]Giving more weight to recent results or events than they deserve.[/I]

o You can see one aspect of this bias in action when you base your market outlook based on the latest price action, while greatly decreasing the value placed on all that came before it and the general context. A strong down bar makes you feel “sure” that the market is going to go down. A strong up bar makes you think it’s going to fly up. The most recent price action keeps taking precedence even though it is just one small piece of the puzzle.

o The other aspect of this bias comes when looking at our results. We ascribe more weight to the last few trades than to the big picture equity curve of our trading. We fail to realize that if the last 3 trades are losing ones that this doesn’t mean anything about our trading and there’s nothing more significant or special about these trades just because they just happened. They don’t deserve extra weight, attention, or worry in our mind.

o The way to deal with this bias and avoid its traps is to just be aware of it. Be aware of it when you’re reading the market and be aware of it when you’re looking at your results, and just watch this tendency arise without judging it. Doing that will allow you not to fall for it, and not to project forward just based on the latest events or results.

-courtesy of [B]Ziad Mastri[/B] and [B]Awais Bokhari[/B]

[B]Question 4: Stop Lost[/B]

<To Be Continued>

When someone ask me, where is my stop lost for this pair? To me, it simply means what is my risk/rewards for this pair?

As i have explained in my last post, I will only look for trade that is within 50 pips from my HH or HL.

Back to my set up.

I am a Swingger @Weekly Chart. This is how i set up my risk /reward.

First i would look into the secondary trend, since i am a swingger @Weekly Chart. Its uptrend now. But the last weekly candle is going down currently retracting. Based on Michael J Parson, and as you can see from the picture above, all the weekly candle is within the brown channel, and so i would assume the price would very likely to move within this channel. Current price is in the middle of the HH and HL. The current price to go down and going up is almost 50% over 50%. Then i would assume that my Risk/Reward would be 1/1.

I will skip myself as a Swingger @Weekly chart for now. To have a trading edge, I tend to look for The Risk/Reward that can offer me at least 1/2 or more.

I then do another analyst depend on who i want to be, Longterm @30 minutes chart, Scalper @1H Chart or until i find some set up that give me trading edge.

And so i will share with you all on my last post here in babypips on…

Question 5: Which pair to trade?

<To Be Continued>

If someone ask me which pair to trade, i would say EURUSD because i only trade that pair. To me, every pair is tradeable, the question is which pair give you more trading edge over the other.

This post is specially dedicated to Markaria400 because you are keen to band with me. Sorry, i have lost my interest to band with this community.

And to MoneyNVRSleeps, i wish you success in your forex trading career.

TurboNero, hope you can see the trees in the forest by now and thanks for correcting my broken english, scrapper haha…

Best Regards,
Victor Lew.

P/s: I started learning forex, here babypips… Thanks to everyone on your past valuable posts (including your post PipMeHappy and bobbillbrown) on different topics regarding forex. Many Pips to all. Bye-bye.