Professional Traders: How many pips!?

[rhodytrader]

yes you are completely right and i agree. telling a new trader to get out when hes scared makes him go out immediately after seeing brake even.

Just a quick note. Should be “break” even, not “brake”.

…the sentence alone is a poor advice to a new trader. therefore i added in the next sentence that he must not take profits before he has a 1:1 ratio minimum. after that he can do what he wants and let them run and take profits when he feels scared for his profits.

I know where you’re trying to go with this, but I’m going to disagree again - at least in one context. If someone is a trend trader (which I’ll admit seems like a minority given what I’ve seen of retail forex positioning data), then you absolutely cannot take profits when you feel scared. You make your money on the small minority of trades that end up big winners. If you cut those short the system falls apart.

but the people who succed are either:

1. the people who have a lot of spare capital to finance even big losses
2. the people who manage to make as few mistakes as possible and therefore have the necesarry time to learn

I would add #3 the people who made their inevitable mistakes as inexpensive as possible (meaning making low risk trades).

and a taken profit is a huge boost to a new traders motivation while a taken loss is a huge downer for a new trader.

Don’t disagree, but would suggest that just as much as taking a loss can create an overly negative reaction, so too can booking a profit create an overly positive reaction. “I won, so I must be good at this!”

in the end the trader must learn to stay in his position as long as possible. if you managed to have 10 trades you took at smsll profits or closed at brake even you are psychologically more able to have the 11th trade run long and go deep into profits than when you had 10 loosing trades and you are scared for your account and close the profitable trade too soon.

Not sure I agree with this. Yes, financially it is easier. I think, though, that all the “success” of taking the early profit can train the trader into thinking that’s the right thing to do. As a result, it becomes harder, not easier, to let trades run.

to enter a position takes a second but to manage the position well so it can become a big winner is what sucessfull traders do 99% of their time.

Absolutely.

[FOREXunlimited]

So would you guys n gals say that our trading systems and methodology goes out of the window this week and that we had better have the week off and sit on the sidelines. Or should we do our normal thing (at least at the beginning of the week) and see how things develop ?

Look, if you’re not already positioned for “Brexit” volatility, then you’ve missed the trade.
If you have any doubt in your mind on the reason as to why you’ve put on a position to trade the event-risk, then you shouldn’t have a position on.

Chances are, it’s going to be a non-event and the world will continue spinning. Either way, if you think there’s a trade out there you can “get into” @ this point in time, then you are way behind the curve and just exposing yourself for no reason.

Do you want to know one of the keys to long term success? Identify an edge (a trend) and trade when your gut tells you to trade it, before everyone else can identify it. Exploit it until it doesn’t work anymore, then move on. It’s all about gaining an edge, exploiting it, then bailing when everyone else catches on.

Jake

[PipMeHappy]

Look, if you’re not already positioned for “Brexit” volatility, then you’ve missed the trade.
If you have any doubt in your mind on the reason as to why you’ve put on a position to trade the event-risk, then you shouldn’t have a position on.

Chances are, it’s going to be a non-event and the world will continue spinning. Either way, if you think there’s a trade out there you can “get into” @ this point in time, then you are way behind the curve and just exposing yourself for no reason.

Do you want to know one of the keys to long term success? Identify an edge (a trend) and trade when your gut tells you to trade it, before everyone else can identify it. Exploit it until it doesn’t work anymore, then move on. It’s all about gaining an edge, exploiting it, then bailing when everyone else catches on.

Jake

Bravoooooo! I should print this and attach it to my studio wall haha Excellent post!!

[Michaelfxstudy]

I think I read somewhere that the job of a full time trader is in fact part-time trading and full-time strategy research and testing. That is pretty much where I am starting out at.

[PipMeHappy]

I think I read somewhere that the job of a full time trader is in fact part-time trading and full-time strategy research and testing. That is pretty much where I am starting out at.

Good point