This is the real deal. I remember my first (and only) 10% loss. I was bent out of shape the rest of the week. I’ve had my hand slapped so many times by the market I don’t have the heart to risk more than 2-3% anymore. I’m getting +2-5% per week and that is fine. My sweet spot is 2-3 trades per week. Thanks for this post.
Wondering if todays drop in cable is the set up for a pop up when the news comes out at 2 am, anyone else on this page.
Thanks
Hey mostwantedpip,
Don`t worry,you will recover soon,
but look what eremarket wrote a year ago on “What Every New & Or Aspiring…”. It was very helpful for me:
[B]Infinate Freedom and Self Imposed Limitations[/B]
"Infinate Freedom and Self Imposed Limitations - Why lasting market success is so difficult for most.
You should be better than this. You know how to trade. You should be better than this…
You have a method or system with an edge. It provides a profit over the long run.
You have seen some real growth and meaningful success in your trading. It IS something you know how to do.
You can do it well enough to make money on a regular basis.
You manage your trades well enough, and you risk very little of your account on a per trade basis.
So why are you not driving a ferrari? why are you not trading full time?
Because the market, quite possibly, provides us with a challenge that human beings are ill equipped to handle:
Near Infinate freedom
It is possibly the only place where we can think, decide, and act in any way we desire… and promises us near limitless wealth to do just that.
Almost everywhere else in life, there are authorities outside of ourselves that we are conditioned to respect and follow.
show up late for work - boss is angry
show up late for dinner - wife/family is angry
drive a car too fast - get a speeding ticket
drive a car too slow - get yelled at/cause an accident
eat too much - get sick
eat too little - get sick
mouth off at someone when angry - risk an argument, a fist fight, or worse
express every thought we have as we have them - become a social pariah, a lewd, crude individual that others stay far from
heck, even the uninhibited pleasure mecca of vegas has rules to each game, table limits to bet, and social pressure of others reactions around you, not to mention casino authorities and the law should you push anything further than they will tolerate.
In almost every component of our lives, from the day we are born, to the day we die, to the countless social interactions we have… there are hard, fast rules that govern each of these.
Fall out of line, and someone else will punish us. Either through scorn, anger, hurt feelings, time in court, time in jail, time in the hospital…etc.
In the market… none of these restrictions exist.
Lose a trade - no one knows…no one cares. no one tells you right or wrong, yes or no, good or bad. no one else is even aware that you exist. hold it for as long or as short a time as you want. bet as much as you have in your account, or as little. re-enter it a million times, or never enter at all. go long, go short… anytime, all the time, forever, or never.
Other than the single restriction of a margin call, the market provides infinate freedom. Which requires true, profound and sincere self discipline.
It requires a discipline unlike any other that humans have had to channel throughout our existence.
not too offend or sound elitist, but it is possibly the only place that gives us the power to decide our actions without restrictions as if we were some sort of gods.
And humans make for piss poor gods.
The only way around this is to have some sort of self imposed limits.
A maximum daily loss, either in terms of actual dollars, or percentage
A maximum weekly loss, either in terms of actual dollars, or percentage
a maximum amount of trades taken per day/week/month
a maximum amount of losing trades per day/week/month
I personally have some of these as my own safeguards. They keep my losers small, and quickly recoverable.
For infinate freedom that offers unimaginable wealth is a sirens call too strong for nearly all of us, if we choose not to self regulate our actions.
We, as a race, need rules and structure to exist in a state of positive growth, cooperative interaction, and success.
The market as an entity, is completly devoid of rules and structure.
Then we, as successful traders, need to create our own boundaries, need to be our own policemen, need to be our own jailor if we fall out of line.
For lasting market success…some sort of self imposed restrictions on losses, risk amounts, and or trades per day/week/etc are not just a good idea, the are THE ONLY idea that will matter in the end.
Because we are not gods. we are not perfect, we will have losing trades, mismanaged trades, unexpected market events that make little (if any sense) and we will respond emotionally when this happens.
So who will limit our actions when we start to step out of line?
[B]We will. Or we will never truely succeed. period.[/B]
The market is a giant syphon that takes money from the accounts of those who lack their own self imposed restrictions,
and deposits it in the accounts of those who create and heed their own self imposed restrictions.
It’s as simple as that. The ultimate freedom requires the ultimate responsibility. Without it, we are not free, but simply prisoners of our own emotions.
Jay"
GLGT
I didn’t trade this. Looking at missed opportunities yesterday for my notes.
New York Open Kill Zone (Wave 5 set up)
Wave 5 classic false break out stopped to the pip on reflection as a hammer with stochastic divergence.
56 pips at W4 partial close target which was also the end of the NY session.
At 3400 is the key. These patterns work when they help create a confluence. Find the 3400 at some higher TF fib or gartley pattern and this a very safe place to look for a short.
I had a large drawdown recently. 10-15% idk how big your account is but mine is $300 I was down about $50 at one point. I’ve since made that back. One thing I did that helped me was to take a zoomed out view. Trade the daily and weekly not the 4H or 1H. In my opinion scalping and day trading is foolish even if you have ADHD. The cost of trading like that is to high and I think the probabilities are to low on lower time frames. I think everyone should start with a position trader mindset and mold yourself to that then as you get more experience go down time frames. The major players aren’t looking at 1H charts. They think in weeks and months. The emotional roller coaster you experience on lower timeframes inhibits you also.
I think trading and investing is a game best played by people with a long term mindset. At least to me they seem to be the winners. I know a lot of people will disagree and maybe even Michael, and say you have to find your own inner trader. I don’t believe in stuff like that. I believe if you want something you work hard to accomplish it. Sure some people are born with abilities more suited to the task. But I believe anyone can accomplish anything if they truly want to by putting in the required hours and work.
I also don’t halve my risk. I risk $3 on every trade. For me the problem wasn’t the money (probably because it isn’t very much) its the fact that I lost lol I hated it I hate thinking I can’t do something or that I might fail.
I’m sure you’ll bounce back. The only way you can fail is by giving up. Just some of what I’ve picked up in my 6 months. At least you know you aren’t alone and you didn’t blow your account :-D.
Well said Lazydogs. And remember “Never Give up”.
check this out. these false break outs could express another harmonic, such as this AB=CD
Brilliant!!
My risk is managed to 2% a day, and I keep an hammer next to my keyboard incase I find myself falling down that particular rabbit hole… Again 
Peace and pips
GLGT
This WW turned at the Sweet Spot forming a right shoulder, ITH.
Interesting point today is that point 2 can also be viewed as a point 1, making point 5 point 4 for the 1-4 projection off the bounce of current 1-4.
If that is the case then I can plot reflection from 4-5 for exit and entry…
This one kind of confused me.
I am thinking that stochastics is showing type 2 on wave 5 possibly making this a wave 4 starting the count at 2 as 1.
When W5 completes, a false break out below 2-4 trendline might indicate that I have initial count wrong.
Either way, in profit.
Watching this harmonic today for exit, thanks for pointing this out…
watching this pair too. i would be tempted to draw wolfe 1-3 this way, and was wondering how you thought about 3 to 5. i could have done 3 to 5 as upper channel to 1-4, event though it overshoots somewhat
Ava Meta Trader
heyy guyz…
i cant seem to find ICTs myfxbook link…
could someone please post it for me???
thanks
Michael,
Why are you starting again with the 1M challenge? What happened to the last one that you started in September 2011?
This count started out goofy today, so it looks like I caught wave 4 lol.
I reset the count to match the classic wave 5 manipulation. Wave 4 was a smooth 70.5 Sweet Spot reversal.
Definitely seeing the signs that this could be a wave 5. The AB=CD inside the WW at reflection and stochastic looking like it wants to show divergence at the hourly close. We shall see.
Awesome week so far, 2 monster trades using WW, this seems to easy.
@IbePippin, thanks again for pointing out the AB=CD pattern. Nice target and reversal set up pattern to use with the WW setups.
I am not trading the reversal, closing shop for today. Studying Fiber and Cable during LOKZ on 15M to see what is lurking behind the curtains.
i took that one 
thanks for your WW charts btw. especially the visualisation of W5 false break + reflection + stoch divergence helped me
just slap your numbers in this calculator: position-size-calculator
the last number at the bottom is your lot size, input it in the volume box on your MT4
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