Hey grav, thanks for sharing once again. Deeply appreciated by us all indefintely.
I manage to catch the short on UJ and with your multi lot strat, im up around 200 now.
[B]WOW! You got more pips out of it than I did.[/B]
I have couple qns though, first you mentioned that news usually occurs which will spike the pairs depending how heavy the news is. So just to re-iterate what you said earlier, the news is usually unlikely to cause a major change in the long term trend.
It USUALLY do 2 things only,
- either push the price further into the long term trend favour
- retrace a little and eventually go back into the long trend favour
3rd case would be, a new trend is born. Am i right?
[B]Yes. you are right. Of course, in the rare case where a new long term trend is born out of the reversal, if you have already exited with most of your profit as the spike goes against you, then your profits are not at risk. This is such a reare event that I usually do not even enter the counter trend move unless it runs a very long time. Iām really just waiting on the sidelines for the counter trend to play out so I can get a better entry. Rarely, it is the b irth of a new trend and I miss the first part of the new trend, but thatās fine. Better that than being whipsawed to death, and besides, for any really good trend, there will always be plenty more left for me. So be a little late to enter and a little early to exit, trying to get the sweet middle of trends. [/B]
And also, having usuing multi lots, am i right to say that for example i put on 1% on the inital lot, my subsequent lots will be small than my 1% say maybe 0.5%? So if it does retrace to my stops, the most i get out at BE.
[B]I like to trade these in campaign style, taking fat profits off the top and putting more lots on bottom. That way in case of a big reversal, I have locked in my profits. Always strive to take at least 1/2 profit off any trade. More is better. This is a question more of where to exit a trade, which is another discussion entirely. Iāll go over my thoughts on exits in another post.[/B]
So i can expect that to happen quite a number of times, and there will come a time when i get one really big win to cover up all my BEs and small losses?
[B]Yes, most traders tryu to trade for small wins and BEās and minimize the small losses until the big win puts them ahead. There will be a very large number of small wins and losses ad BEās for the very few big wins and you canāt force a big win. You have to have infinate patience and wait for it to come to you. It may be days, or even a week or two, but have faith that if you wait it will come, it always does. [/B]
Lastly, do you apply the same concept to weekly performance. For example i use 1% mm, if im up 2% for the week i will never let it become a loss?
[B]Yes, you need to have a reasonable limit on what you will allow for a weekly reversal. You would never want a good weekly win turn into a weekly loss. Stop trading and just study the rest of the week before letting that happen, or trade a separate demo until you get your mojo back.[/B]
The most i will either BE for the week or have a small gain. So im only playing with casinoās money the moment im positive for the week? This way, i have little losing weeks.
Thanks once again!