I follow another thread over at FF. The guy that sort of runs the thread said something very wise: even if we can’t live just on our trading we can supplement our income.
That’s a good way of setting goals:
Even if we never get past number two, that’s still great!
I feel a potential cold coming on so I may actually go to bed early tonight.
Another way of saying that I’m not sure I’ll look over the charts tonight. But addictions are hard to break… We’ll see.
then you’d start to dream again, to have fun and not trade for living 
Gona need a plan for that too 
You’re right, so
what … how did you know 
actually I was thinking invest in buissness and/or once you have a few mil you can live off of the intrest if you have it in the bank!
I guess that’ll have to be the backup plan if (however unlikely) the monkey plan should fail.
I think what would probably be better… would be to just continue to trade for a living if you ever made that much. Reason being… if you had business you would have to attack a whole new type of management rather than the MM, trade management, and risk management you would already be used to in trading.
If you had enough… and were consistant enough… even with 1:1 RR and a consistant W:L ratio assuming 1% per trade… with a couple mil (lets say 6) with about 2 trades in the positive a month (so 2 plus 2x the amount of losing trades). You would be making enough take 60k out a month… and this is after setting aside 40% in a seperate account for tax (though it might be prudent to reinvest that till its due) and leaving 10% in to keep your growth for your account at around 2.4% per year [or 0.2001% per month] (which is STILL higher than you will prolly get from most interest bearing accounts from a bank). Not to mention that 50k a month spending cash is slowly growing still from that 2.4% APY. (NOTE: precents removed would be strictly from gains not as a % from total account)
Now… since we assumed you were consistant enough to accumulate that 6 mil… then… it would probably be safe to assume you could increase almost all those return numbers at the least slightly.
Though, realisticly… if you expanded your account that big in the first place… you could probably expand it even more and then eventually stop and go with the same withdrawing plan (no longer with the goal of expanding the investment but essencially living off it) and be pullin out several hundred thousand or more per month (all with still only 1-2 winning trades + 2x losers). I mean seriously… it wouldn’t be much further considering you are probably talking about expanding to a “couple mil” from a few tens of thousands. A couple tens of mils… isn’t really that much more of a stretch in terms of exponential expansion (relative to your previous growth).
No need to go to another method of expansion to keep the money workin for you… just… reduce your time spent on it proportional to the expansion rate you want to keep.
NOTICE: This is all theoretical… I am not sure how well trades work out with large amounts such as that as I quite honestly haven’t even started working on trading live yet with a small account… getting close though ^^. But the math seems sound to me. Someone please yell at me if it isn’t =D.
I just saw your post. Went to bed early last night.
The EURCAD order was deleted yes.
As for EURAUD I suppose you got your answer through todays charts huh. I guess somewhere around noon London time would have been a good time and chart location to enter short. Hope you got that trade!
If I feel up to it I’ll look over the charts later tonight, I saw that it was a good thing we closed out the EURJPY trades when we did. I did the same on IBFX when I came into office this morning. Nice when timing sometimes works for us instead of against
If we ever get accounts of that size I’m sure the problem will be finding ways of spending enough money!
You seem to have done some thinking here and I can’t see any flaw in your reasoning.
Now we just need to build those accounts
Yes, the pair butted up against the 1.64 level several times but finally decided to start dropping again, resuming the overall trend. Several bars with upper wick on the 4H followed later by a big bearish bar with an upper wick.
I normally don’t trade during the day either though and didn’t catch that.
Yes, it’s a potential setup forming. Time will tell.
Right now it’s a mess with different countries switching from summer time at different dates.
Today at least FxPro is GMT +2. (I use them for charting since they offer a very wide range of not just forex pairs but also silver, gold, some indexes like Dow Jones and SP500, plus a bunch of futures.)
I’m continuing to play it very safe, focusing on the trading and not the money. I’ll just risk something ridiculous like 0.25% on each trade.
I’m placing pending orders to go long on XAGUSD (silver) and short on USDCAD.
Both trades are with the trend and both are reversing at swing points.
I don’t have silver on IBFX so I’ll only place the USDCAD on there.
Pending order levels:
16.86 silver
1.0585 USDCAD
Let’s see what happens.
Yeah I know. Most of it is stuff you can just scroll by. After a while it becomes clear which posters are worth following.
I’m going to start with page 1 and work forward patiently.
In other news (as they say) I’m removing my pending orders and calling it a weekend.
Happy Halloween!!!
I just did the math and it turns out that I grew my account by 3.6% during October.
I’m very pleased with that.
I’ve begun working my way through the James16 Chart Thread at the other forum. I have to say that it’s unlike anything I’ve seen before.
I’m copying charts and posts into temp files with the intention to edit or write it together to a complete J16 bible for me.
That’s going to take ages as the thread is bigger than huge and keeps growing by up to a hundred posts per day. Still, it’s perhaps one of the smartest things I’ve ever gone about to do.
I will most likely not post my “bible” when it’s finished some time next year as I don’t want to infringe on the rights of those who created that which I’m copy/pasting.
I can only encourage others to have a look for themselves. That thread has been the light at the end of the tunnel not just for me, but for many.
Interesting…
What’s your T/P…?
Have you traded Silver before…?
Did you base your analysis solely on TA or are other factors included like COT positioning for instance…?
The pending order was never hit, so there wasn’t any trade.
No, I’ve never traded silver before and the trade was based solely on TA. I was planning to take full or partial profit around 17.20 with SL moved to BE in case of partial TP.
I haven’t had easy access earlier to good charts of silver and gold and so I haven’t felt comfortable trading them. Finding the FXpro demo has fixed that for me.
I thought I saw a pretty nice bounce off of the 16.0 level and was hoping to enter the uptrend. Price had other ideas so the pending was scratched.
Cas, I forgot to ask: was there anything in particular you were thinking of?
Your entry caught my eye so to speak.
Going long @16.86 entry below 55 SMA with 17.21 as major resistance looming in a silver market where the fall [swing] from 18.17 short term top wasn’t completed…is interesting.
Nevertheless I can follow your thinking process in regards to your TA.
Silver is a bit like Oil. Huge swings and very few bounces. When you look @weekly or monthly Silver charts you’ll notice this pattern.
The present Silver swing could go as low as 12.44 depending wether minor 16.12 support holds.
I threw some fibs up from different weekly swings and there’s good confluence around a few zones; 16, 14.4 and 12.1-ish, and the big swing h/l 50 fib is around 13.3. These may all be zones where price will turn again but you’re right that a turn already at 16 may be unlikely.
I see what you mean. I guess I was looking more at the daily chart and the PA. That’s a good thing about placing your orders slightly beyond highs or lows - when you’re wrong there’s a good chance you won’t be stopped into the trade.
I haven’t done my weekend chart analysis yet, but trading a counter trend breakout from the 16 support might find it’s way on to my possibles list.
Thank you very much Cas!
Highly unlikely. 12.40/20isch would be a favourable area. Also you would have much better R/R.
When you trade Commodities…and Silver is part of that Complex…you need to analyse where you want to enter in relation to those major swings in order to protect youself.
If you don’t do that you’ll find that you are caught on the wrong side very quickly and don’t even understand the reason for it let alone seeing what is happening and act accordingly.
Commodity trading can be very dangerous for your account if you don’t grasp it’s present cycle and dynamics.
It’s not like the up and down drill we see with the USD. It might look that way but closer inspection paints a different picture.
I guess I was looking more at the daily chart and the PA.
That’s to narrow of a view. You need to get the whole picture meaning [B]long term[/B] TF’s.
The other thing…if you seriously considering trading Commodities get familiar with CCI…Commodity Channel Index.