And here’s the move in EURAUD that I was too impatient to wait for… 
And USDCAD continues to sky-rocket. Hindsight is wonderful but this is frustrating. I’m consistently picking the right move but I’m getting the trade (and timing) completely wrong.
Definitely going to shut down before I do something I regret.
I would agree with you, but he is using extremely tight stops so that would limit any big losses. Also 10 lots is not huge assuming his account balance is over 6 figures. Each trade would be risking less than 1% -2% of his overall equity.
Correct, Ro, my stops are tight. I would say I’m a scalper by definition because I’m looking for those elastic band moves. As I’ve said previously, there are other trades (i.e. ascending triangle breakouts) that I look for too but I just don’t have the same kind of confidence and conviction with those as I do the washout longs.
I actually learned the washout long strategy from Madaz Money (a.k.a. @madaznfootballr on Twitter). It’s a very unusual style and extremely hard to replicate but, for whatever strange reason, I fell in love with it because his winrate was so high (around 85-90%+). As I’ve said before, rightly or wrongly, I have to win often so this strategy works great for me.
It seems 99% of the FOREX traders I read about are swing or position traders but at this point in time, I do not have the mental strength or psychological fortitude to be in a trade for hours or days. Maybe one day I will get there but right now, it’s base hits.
Regarding account balance, I am keeping my balance extremely low compared with my size. There are two reasons for this:
I have access to 6-figures if I need it but I don’t want it sitting there in the account when I could very easily have a meltdown and blow the lot. I can trade decent size with $10-20k so why have another $80k sitting there tempting the beast inside me. The way I look at it is, let’s say I do have a blowup, I’m only exposing myself to a low 4- or 5-figure amount rather than a 6-figure amount. It’s kind of like an account stop-loss. Rather than having a $100k stop loss, I am trying to keep it around $8k or $10k. Make sense?
I want to get into a habit of withdrawing, rather than letting my account grow and grow. I’m about to hit $10k profit for the week so my plan is to withdraw every time my account hits $20k balance.
I know I’m going to get a lot of seasoned traders telling me I’m completely bonkers but I have to do what works for me.
Thanks as always for the feedback guys.
FX has predetermined zones (levels) that can be understood just looking on the naked chart. Needs a lot of observation. The best indicator that can be profitable is MOVING AVRAGES . Indicators should not be the trigger for trades. But people don’t know how to use it. Just pay attention how GBPUSD will make new HH. (1.22330) and EU will hit it’s HH next days.
Just my idea. Boundless mindset as somebody said. Good luck.
GU long term target is 1.43400 and then reverses back to 1.38000
Here are 4 examples of setups that I love as well. These are longer term bottoming patterns which are finding support or putting in some higher lows. I’m sure some traders will be looking to build a swing position here or tell me these are just bearish flags(!) but I’m looking to capitalise on a quick fast move to the upside over the space of 1 to 2 1H candles. If it then chooses to make another move down, I’ve already taken my trade and I’ll catch the next bottom!
Here are the reasons I love EURUSD for example (in no particular order):
When there’s all this confluence for me, I get very interested and start looking for an entry.
Sometimes I have 100% sure trades. I’m learning yet.
In the long run, no indicator is profitable or combination of indicators. Just moving averages and not crossing averages 
Good luck with your journey
Hi @Ihlas
no indicator is profitable
Thanks for your interest in the thread. I agree that no single indicator is profitable. That’s why I rely on price action first and foremost but I then try and get some validation that my bias is correct by ensuring 3 or 4 other indicators are all telling me the same thing (i.e. confluence).
This is definitely not a perfect science. There is no holy grail but I try to make sure there are a few stars aligning, so to speak.
It’s all about doing whatever I can to improve the probability of an event occuring.
I’m developing my own method of trading and when I wanted to combine it with indicators, I get very confused. Removed all the indicators.
Testing now Moving Averages. The keyword is MOVING. Good to take quick nice trades. But my main method is only clean chart without moving average etc. It’s about predermined levels.
So I took trades in those 4 pairs I mentioned earlier and made some nice base hits. At the time of posting this, they are all continuing to retrace towards the 20sma.
I’m just going to continue skulking in the long grass for any nice set-ups for the remainder of the day.
My next big challenge is to learn to hold them longer. I fear I am still trading my P&L which implies I’m over-sizing but I am trying not to be too self-critical. I have low self-esteem as it is so one step at a time! Base hits first, home runs can come later.
On that note, I’m really tempted to scale back the size to 1 or 2 lots for the rest of the day. I’m acutely aware of my weaknesses and as Jared T told me in not so many words, “Don’t let the magician in you takeover.” What he means is, I have a propensity to think I can magically turn $1k into $5k into $100k which is obviously ridiculous thinking. I need to treat every new position as if it is my last trade ever.
Pay attention GU has rised to my first target as mentioned above. Now the second target in my thread.
Just market structure
Good luck.
Was it easy getting sessions with Jared Tendler? And did they help as expected?
3 main things that stood out: 1. You are trading super short time frames before if your zoom out is 1hour, so the patterns are less reliable. 2. Mean reversion is not a good strategy for beginners, it teaches you to always trade against the trend and you simply dont have the skillset to continuously extract money via that method. Learn to trade with the trend because even if your entry isnt too good, because you are trading in the direction of prevailing market action, market often bails you out even on a poor entry. 3. You are absolutely correct on now looking for Longs Shorts and everything in between all the time. Pick one strategy and become good using it. Kudos for being brave enough to make this post, most people wont subject themselves to this - hope you are going to make the lost 200K and a few million on top soon
Thks for sharing… you are not alone in this journey.
“… trading is 1% Theory and 99% Experience… so, the most important trading lessons cannot be read, only experienced…” good luck… any help is just at an email ‘distance’.
Iteresting.
I have been studying forex on a demo for a year and your strategy is the only one that I can see that works.
In the end this is a % game so if you can make10% on capital employed your doing very well if you can make20%your doing fantastic any more is fantasy land.
That’s where I think most people go wrong.
I’m only doing this cause they won’t let me back horses in Portugal.
Hello,
Wow that’s some experience you had there. how can I relate to it let see… I have a few similarities with you, I have traded equities market, learned a little in Options but don’t understand much in it and lastly I trade Forex. I have been on my journey as a trader for 2 and a half years now and so far I am doing okay in my opinion in equity market as I have spent more time learning that first.
My advice to you is I believe you should practice and learn for a while on a demo account and validate your trading strategy and prove it first before using real money, although you are eager to be successful in trading and move form your job but trust me the market can be very lethal and will chop a person up in pieces very quickly when you don’t have much knowledge. Next is I believe you should consider reduces your lot size, although i have no idea your account size but I think using 50 or even 20 lots is way to much. You got to remember about Risk management techniques to protect your account from blowing up. Based on what you have said there is other things I would mention to you but I don’t wanna dull you out.
I haven’t done so poorly in trading before but i know how it feels to lose a lot in trading, it took me awhile to get the hang of trading. Keep pushing and best of luck to you, I hope you accomplish your dream.
Sounds like crickets. One can only assume he blew up, again, and if so, no surprise. If its taken 4 years to just about learn how to scalp but blowing $200k in the process, it’s not very indicative of progress. Scalping for scraps using big size is no way sustainable for the average retailer. Not sure a thread on baby pips constitutes the best platform for a journal either. However, wish him all the best whatever but time wasted on this thread including writing this.
Why? Because he’s clearly knows how and where he went wrong, as opposed to a majority of traders? Because he’s identified that his psychology is where he needs most work, again as opposed to a majority of losing traders? Because he’s getting personal sessions from a really well known psychiatrist like Jared Tendler, like you did maybe? Because it’s highly suspect for anyone to have real life commitments that prevent them from updating a forum thread?
Hopefully you don’t assume as much when you trade.
Woah, easy there tiger. I think how open about his journey is great and brave too and I do hope he’s doing well (as I said). However, I’ve yet to see someone complete a challenge they publicly set themselves, whatever the market. Sure life gets in the way but hope he returns to complete it or at least update, not sure about you but I can’t trade time for more time, wish I could
