Yaniu Newbie
Join Date
Jul 2011
Posts
12
Originally Posted by NikitafxSorry it has become this long but after page 40 or 50 it was sort of rehashing the same thing.
Who’s the OTHER FELLOW?
ahahah this one you really have to ask the other fellow!
Yaniu Newbie
Join Date
Jul 2011
Posts
12
Originally Posted by NikitafxSorry it has become this long but after page 40 or 50 it was sort of rehashing the same thing.
Who’s the OTHER FELLOW?
ahahah this one you really have to ask the other fellow!
I humbly thought it might have been me hahaha!!
Oh nothing new Yaniu. I try to post one trade a week just to keep the thread going.
Other than that I answer question as best as I can and throw in a chart or two explaining things.
I just saw something in regards to SL today. I am going to try it out for a few days and see how we go with it. If it works than we might get more trades with 10 pips or so SL.
Save for that, the thread is the same.
It ought to. Still not able to draw trendlines like you.
I miss seeing as many as you do!
Oh okay! Nice to see this thread live an well.
Y’know Niki I’ve been revisiting the glory days an trading with BASIC as entry giving a real tight SL but great gains.
Lumi’s book brought back old memories eheh.
Looking forward to see your take on minimizing SL Niki!
Hehe check the Lumi Alley post on the BPC I posted up, gave a 150+ pips profit if anybody caught it, it’s amazing how those lines keep giving us so much isn’t it? =P
sometimes the concept is too easy that it becomes difficult to comprehend it.
Anyway I am going to sleep for a little while. Might get another good short tomorrow.
True! But the key to successfully trading it is zooming into lower timeframes an checkin for HH or LH, that’s all there is to it! Let’s expand on it later on in this thread yeh? Nite
Sorry to be so ignorant, what’s Lumi Alley and BPC?
Are you referring to the trade on EUR/USD earlier today at 12pm GMT? I pretty ticked at myself for missing that one by being a lazy bum and not getting out of bed…
Lumi Alley is a FB group that my mentor has to share his method of trading. A few here in Babypips are there. He would add you if you have been active in his thread here.
BPC is like the EU trade we saw earlier. ITs called a Breakout, Pullback and Continuation.
Its basically a repetitive pattern that we see very often.
Real powerful stuff though!
Ha I feel pretty dumb right now for asking what BPC is. BPC is the main component of price action and I didn’t even know what it was called.
Yes I totally agree Yaniu, and I believe it should be the basis for any trading plan.
This thread and Nikitafx advice change my way of looking to the Market,I can see how the price is moving, now I am trying to get hold of my patience and trying to sort out my money management skill,when to enter and when to TP,then may be I can become successful consistent trader.
If I may add a nugget of advice, i’d say the first thing you should do is master a specific method or system that you’re agreeable with.
Agreeable in the sense means firstly if you’re comfortable with the SL, the risk you put on a trade is what determines the next step when increasing lots, or if the SL hits, how you’ll go about to recoup the loss or adjust loss size according to the new balance.
Recouping the loss can be in 2 ways, 1 being REVENGE or EMOTIONAL trading which we should avoid at all costs, and thus pushing the patience element into place when we WAIT for the right time again to enter a trade.
Risk is part of the game here and losses are minimized though experienced over time.
The system or method should have minimum loss and maximum gain.
Remember the saying ‘Cut your losses and let the profits run’?
Well that applies immensely.
In terms of taking profit, when you work out a suitable money management plan, it shouldn’t go about bringing thousands of dollars a trade right away but to bring a profit per trade.
If you trade with a million dollars, 20 pips might come to 50,000 or 100,000 dollars depending on how you adjust your lots according to a million dollar balance, yet when you have a 100 dollar balance 20 pips might be 5 or 10 dollars.
It seems small but relative to the size of the account, the percentage gain result is the same.
The key is consistency and taking profits however small it may be.
The bigger it is, power to you, but still a small profit is still PROFIT.
Y’know how it’s better to be out of a trade wishing you’re in that trade rather than being in a trade and wishing you were out of it?
That same logic applies when manifesting the correct mindset.
When taking TP at the start, try for an achievable target for every single trade, that’ll keep you accountable and in check with the money management you figured for yourself, although reading price gives way for bigger gains if you hold for longer than you normally would, that’s a different story.
Price moves in levels and figures so long term TP’s depend on traders own threshold of resistance but I myself find having a certain set TP point helps a lot.
I know when starting forex everybody has illusions of grandeur of making millions instantly and that triggers our GREED.
But over time when you focus on picking correct setups and work on becoming a better trader bringing in consistent profits rather than being on the road for that million or 2 from the beginning, it’ll change for you in a really positive way!
People have become forex millionaires trading for 10 pips each at a time so, it is achievable over time =)
The money will start following you when you stop following money.
Cheers!
Spot on =) !!
That’s an awesome post Yaniu. Emotional trading is what kills most accounts and the only way to be emotionless in a trade is to be able to watch it hit you stop loss without caring because 1. It wasn’t enough of your account to matter and 2. you know that you can make it back in the next 1 or 2 trades (with a good R:R) because you have the stats on how well your trading plan performs (which can only be proven with time and a good journal).
Fortunately I learned this early on before even coming close to blowing my first (and only) account and now I spend more time writing in my journal and reviewing trades than I do trading.
Great advice thanks for the advice, I am comfortable with 20-35 pips SL according to the Market price movement TP according to 1:1.5. If you can please explain more about how to recover loss, or losing trade,it will be very helpful for me and other new trader.
That’s great! Back in the day people always tell newbies to trade on demo accounts for a year or 2 before starting live, but nowadays I feel ppl should be advising newbies to start keeping trading journals with demos cuz let’s face it, it’s your money an your decision to enter or not, no body to fire you or point a finger but yourself so we always tend to go astray even if we lose or win, losing will trigger revenge trading and winning too much invokes too much confidence and a feeling of having MASTERED THE MARKETS.
Great work on recording entries consistently! Trading journals are essential to your journey!
Ok,
Say you have 1,000 dollars in your account and you use 0.005% (half of 1%) of whatever’s in your balance at a time per pip.
So if you got 1,000 in your account, a pip should be 5 dollars, your SL on that trade is 15 pips and you lose 75 dollars or 7.5 percent of your balance.
So now your balance is 925 dollars and the next trade you round it off to 920 and a pip would be 4.6 dollars.
If you had a 20 pip winner, your profit would be 92 dollars making your account balance 1,017. Which is 17 dollars more than your initial starting balance even after a loss. (Emphasizing how great just 20 pips is in this case too)
Lot size is the key here, you can have 100 dollars an make it 1,000 real quick by increasing lot size as you go along.
And also, if you have a higher lot size than your balance allows then it might go sour too.
People usually get really frustrated when they risk more than they should on a trade, adjusting lot size according to how much the balance is like what we did above keeps it in check.
If you enter a trade an have a 20 pip SL and 60 pip TP, which is a 1:3 risk reward trade, you’d find if price hit SL then you would lose 10% of your account but if price hits your TP then you gain 30% of your initial balance.
I know it sounds big when I say 10% of your account, but compared to the risk reward ratio, it’s worth it, plus we analyze the markets and do our research an enter only the best quality setups to ensure our trades have high probability to go in our favor right?
I find always keeping the value of a pip less than 1% of your balance no matter how higher you go manage risk and reward proportionately.
Hope that helps.
thanks for your reply.:10:
hehe, Yaniu, i shall not use other fellow, pls forgive my mistake. I shall write really thanks Nikitafx and the FX master who contribute to this inspiring threat. Thx! :45: