I need an answer from the user Trendswithbenefits

Beginner Questions
1

Dear Trendswithbenefits,

I have found your post reply in a forum after I worked out that a good way to make consistent profit could be to open buy and sell position at the same time.

Obviously this has been done already in the past as I have discovered :-). I am a 37 year old girl/woman and as Im at home on a maternity leave now and have always had interest in finance (I do have a Master degree in Economics), I have decided that I want to learn trading a bit.

I am absolutely new to this and I dont have much clue about some of the things you have mentioned in your post reply. Im also do not want trading to become my main source of income, I have another source of income and I just want to play with trading a bit.

Anyway, I have opened a small account (500 eur) with one broker and I see it as a learning account as I just want to get my hands onto it and see how it all works and what I want to trade.

I have already concluded that it might be the best for me to trade a currency as I like the fluctuations and when I am in minus, I simply do not care (as I open very small positions anyway) and wait until the graph curve turns to my favour.

I enjoy watching the graphs moving and I would say that I see it mainly as a hobby rather than an income - or maybe hopefully in the future I could start making couple of hundreds of euros per months which I could put into my children´s account.

The reason I am writing is to ask you about this strategy of opening buy and sell position at the same time. I thought this might be a good strategy but in another way I also think that the buy and sell positions could cancel each other out.

I have not tried this approach yet but I am about to as I like the idea not having to worry about the graphs going in a direction that is not in my favour.

But I wanted to ask you, how to prevent this system from the positions not cancelling each other out?

If you have time and feel like replying to me, please consider that I am very new to this, I know what TP (take profit) means and SL (stop loss - but stop loss I dont want to be using). I also kind of know what pip means. I would really like to try this dredging strategy and I am a total novice. I still pretty much understand what you wrote - opening buy and sell - small positions at the same time. I will also set up a TP for both positions. As the graph will be moving, it will hit TP on either buy or sell and that way one position will automatically close. From what you said I understand that I should then close the second position as well - but this is where I dont understand how come that I end up with couple of euros profit? I thought this way the positions might cancel each other out. I would imagine that I could make money due to time lapse - if I simply let one position open a bit longer. But you were suggesting in your post to close the positions at the same time.

Could you please explain it to me in some relatively simple words? Any other user is of course also most welcome to reply if he or she could explain this strategy and why the positions dont cancel each other out and I still make couple of bucks.

Thank you very much!

Michaela

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I also wanted to mention that Im seeking to earn like 5-10 euros per day. That might be plenty for me considering my account is that small (500 euros). So if I could earn it with the “dredging strategy”, I would be very happy!

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Hi @Michaela1981, I’m not sure where to start… I don’t take requests… The fact you have only a little knowledge and no practical trading is a little disconcerting. Having a Masters in Economics won’t help in the mathematical vacuum that is the OTC / Forex Markets…

First things first… withdraw your Euro’s and put them back in your account… Any system I post in here to anyone, I want to be trialed on a Demo account… So you know exactly what and why it’s happening… Contact your Broker and open a Demo and leave the LIVE for a later date… you’ll have plenty of time to try and lose money…

I want you to read up more on what GRID, HEDGING, “DREDGING” is all about… It’s no real different to normal position trading (don’t tell anyone on this site) minus the worry of getting direction wrong. It’s not a licence to print money that most newbies (and many in BP) appear to believe, the pair has to be right, Price Action has to be right, Lot Size has to be right… your matching strategy has to be right…

Risk is a little less, Margin required is a little more and the software I will eventually direct you to will use a specialised algo to protect against Drawdown and take a lot of the stress out of your trading and it will all be FREE…

So, if I try to sell you something, be sure to get back to this thread and shout it to the marauding hordes.

Have a read of the above and PM me when you have a COMPLETE understanding of how these strategies give an edge in the market over the basic pick a direction and hope for the best… Cheers

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oh thank you ever so much for your answer! I copied and pasted it into my documents and will have a read through it starting this evening!

Once I get a bit of grasp of this, I will PM you - it is just that I tried to find a link to send you a private message but could not find it when I opened link onto your nickname :-/.

Even the first forum post was meant to be for you, so I wanted to PM you that and as I could not find a way how to do it, I had to create a thread in the forum.

Michaela

5

actually I just read that as a newbie I am not able to send private message for some amount of time. That will hopefully change soon, if not, I can always post a reply here. Off to do some learning :-).

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If I may be so bold as to butt in here:

Don’t take it private and off air (but obviously your choice of course i.e. this merely a request).

I for one would still like to try make sense of this myself. It has been explained to me more than once but it’s not sunk in. Makes me feel like a twit. And I certainly cannot knock the methodology because I’ve seen the live equity curves that are possible.

But carry on as you see fit of course.

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not a problem, I could continue with the discussion with Trendswithbenefits here. It might be the only option for me anyway, as I am still unable to use that Private messaging. Trendswithbenefits sent me a PM so I was able to reply to it but I am unable to send PM to someone from the scratch.

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I cant even work out how to upload a photo into my profile. Maybe this is also not allowed for the new members. But it could also be me just being not attentive enough.

10

I hate to be the one to tell you BUT that’s not possible. Not unless he is able to type on two different keyboards to two different people at the exact same time.

But let me say THIS:

EVEN IF this were the case: for SURE he’d not be the only one.

Play nice.

12

Have I done anything wrong? This is my first day on this website and I am trying to get myself familiar with this website. Trendswithbenefits was just kind enough to reply onto my forum thread. None of us has done anything wrong.

15

@Michaela1981:

Don’t worry about it. There are a few controversial characters around here and you’ve just come across two of them is all. For what it’s worth though: it would appear that the more controversial the trader the better the trader they are. So excuse my learned friend above.

16

I started reading about the grid trading and it said that it is quite similar to pyramide trading. There is an example comparing the “normal” trading with the pyramide trading - unfortunately as a newbie I cannot post a link. And in that comparison, the trader performing the normal trade opened 1 lot in one go and lost 1500 USD. The pyramide trader opened the same trade and also 1 lot but divided in 4 smaller trades. This way he lost only 500 USD. In that article it is written that the pyramide trader lost less money also because he only commited half of his trading size. I wanted to ask - how come he commited only half his trading size? I thought he also oepened 1 LOT and then after working out that the trend is going the opposite direction he wanted to, he closed all his positions, so how come it is said in the article that he commited only half of his maximum holding size? Thanks a lot!

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17

So are you telling me that @laramay is fake??? LOL!!! Damn.

Thanks a lot. If it’s a fake account: may the fleas of a thousand camels infest the … of the person responsible for creating it.

Alright. Enough fun for one day. I’ll butt out now and try find something useful to do.

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Trendswithbenefits - I will send you a PM once I am able to. I am still unable to do it. I am only able to reply to a PM that was sent to me. You sent me a PM and I replied to it already, so you should have it! I believe that if you reply to my PM, I will then be able to reply to your PM again. This is the only way for me now how can I be sending PM messages :-/

19

Permission To Speak?

I ascertain that I am the registered owner of this username and while I am a registered muppet medium channeling any number of dead puppets including but not limited to: finger, hand, fist & thumb mouths and all varities of Sock puppets including: dress, mid calf, knee and tube, I am typing as the entity known as Frandlost or KC - not VP or nononsenseforex - with that out of the way I commence…

Isn’t Senator Joseph McCarthey dead and buried?!!

The “Red Scare” once again rears it’s ugly head trying to blacklist helpful posters!

@MrDE I have considered the same question as posted by @Michaela1981 and have found @Trendswithbenefits answer anything but selfserving. I am sure a lot of new traders think of this and @Trendswithbenefits offered some sage advice regarding praticing on a demo first. There was no inkling of self-promotion or malintent at all.

I often think about the possibilities of a .01 hedging straddle/strangle strategy where you let them run and take profit and add opposite trades at top & bottom.

Perhaps I am naive,

perhaps I’m thinking “out of the box”,

perhaps I’m onto to something,

Perhaps I’m secretly selling something for free,

OR perHAPS

I am… @TRENDSWITHBENEFITS!!!

He’s one of the top posters here!!

As the old Vermont saying goes “If the cat has kittens in the oven it don’t make them cookies.”

Ooooo… have to run the timer’s going off!

KC

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20

Dale,

I see you coming!!!

KC

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21

Jeepers. In all my years here I don’t remember a thread going off topic this quickly!!! It’s a new record for sure.

AND you’ve all now managed to scare off the OP too. Sure hope it wasn’t @laramay in disguise!!! LOL!!! (I’m like a dog with a bone I know).

And believe it or not: I really WOULD like to understand this. @Trendswithbenefits spent time explaining it to me a while back and I didn’t get it much to his frustration (although in my defense it was real late / early morning at the time). So MAYBE we could get back on topic??? You know. Just a suggestion is all.

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You crack me up!!! LOL!!! Again!!!

23

I feel lost. I just asked a simple question and Trendswithbenefits was kind enough to answer and then my thread got hijacked. So much so that even my last question regarding the pyramide trading was not answered. I feel confused and disappointed. I almost start regretting getting into this trading business… :-/

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24

Have you considered that maybe he’s in a different time zone and that’s why he’s not answered your post re: pyramid trading???

And no offense to you but if a thread going off topic makes you regret getting into this business then I got news for you: could be it’s the biggest favor anybody has done for you in a long time.

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