Below is an interesting YouTube video on how new traders look at the movement of price…
Gives us a bit of an insight into Trading Psychology while trading micro 0.01 lot positions on a relatively small $1000 account…
Many of the good Trading Platforms these days have a playback feature where by you can open a chart in a particular timeframe at a particular time and date and trade the chart in real time…
As long as you don’t cheat by previewing were price actually went… It’s a great way to paper trade a Demo or more importantly a live price feed from your Broker with real Price Action.
Awesome example of trading Price Action and improving your Trading Psychology … When you can see incoming candles in real time you can easily sh** yourself and close instead of adding…
Still this video shows how important it is to manage your risk…! Enjoy…
@EmeraldEyes Yep, agree… Still not convinced he is the real deal… Looks like a cross between Kayne and an Australian Bushranger…
Much more importantly most of his strategies and trading concepts are pretty solid… He’s more aimed at experienced traders but some of his concepts can be applied by anyone trading in these markets…
Everything he states in his videos is correct… it’s not popular and makes forums like this useless… but it’s all true.
That’s exactly how large traders trade.
I still suck at hedging… I have it available but no good. I pretty much trade like he does now with his Forex dot com account, just space out my trades a little more.
@samewise First things first… Some of the more experienced (not expert) traders don’t come here to deliberately belittle new traders… But when you have been here for a while… You get sick of seeing the same questions over and over and over and over and over again…
When a simple search would bring up dozens of posts and possibly even threads to the answers you are seeking…
Ok… To answer your question… While I might not take everything in Nick Shaw’s video’s as gospel… A lot of information can be gained from just watching demonstrations like this…
The most important feature of the video in the OP is you are witnessing trade/position management at work… That is the difference between experienced traders and beginners… A beginner will panic and either throw down a stop or completely freak out when in drawdown and close a losing position…
Experienced operators will manage a losing position by either hedging or utilise a form of zone recovery strategy (Not Martingale!) as a risk mitigation tool… Which is what you are seeing in Nick’s demonstration…
Lot size is critical for two main reasons… With a $1000 account trading lot size is extremely important from a margin/risk requirement… The chance of blowing an account on a wrong call is greatly reduced (nay impossible) by trading micro positions (0.01 Lot) while learning to trade…
Also less stress is required to trade smaller lot sizes… It’s paramount to get one’s trading psychology under control as early as possible…
The other major takeaway from that video is there is no stops ever used… A newbie traders best way to whittle away their account is use stops each and every time… It’s what the 95% of failing traders rely on… There are many other methods of mitigating risk in these markets…
Note: Now I have put a fair bit of my time into a post like this… And it’ll be lucky to get a like let alone have the conversation continue… Another reason I no longer provide strategies and ideas…
Can’t argue with that. Search is your friend. Lots of gold hiding in the past, just waiting for some eyeballs.
Yea from the video, the small positions sizes I could definitely get behind. I actually traded exactly like that when I first started trading live, and then switched to no SLs for like 6 months and then hit a string of losers that made me like question trading all together.
I can totally understand noobs not willing to add to losers. Feels completely wrong.
I’ll definitely check out that zone recovery strat. Thanks!
Edit: Other notable information from the OP video is the timeframe and zoom of the chart Nick is using in the demonstration… Initially he flashes up the GBPUSD on the 1 hour TF… Then they move to the USDCAD 15min Chart for the demonstration… It maybe just to get the vid going… But you need to lock onto information like this when researching trading strategies…
Now the USDCAD chart is zoomed right out… So you are getting a bigger picture of what is happening in that pair… You can see levels an trends and you can get a better understanding of what is really happening with price on this pair…
The video condenses ~2 months of trading into a 20 minute video… So you have to unpack all this information and digest it when you actually trade strategies similar to this… I think he says it in this video…
Trading is really boring sometimes…
@samewise Once I got my head around how all this worked I looked on it as a sort of high risk / high reward investing program…
You open a $1000 account and learn to trade using micro lots… Say 0.01 or 0.02 Lots and try to trade this up to say $1100 all the time perfecting a strategy (or strategies) … You have just made 10% gain on your $1000 investment… Even if it takes many months… No Bank will give those type of returns…
You have also hopefully gained a skillset that will enable you to have some control of your own financial portfolio… And once you have a solid edge and long term profitability in these markets… You can scale up the account and the lot sizes proportionally without ever really increasing the overall risk…
$5k account trade up to 0.05 - 0.1 Lots… $10k account trade up to 0.01 - 0.2 Lots… Etc… Etc…
Backtested this stuff a couple years ago… some lasted months waiting. Almost want to imply a rule to trade in favor of a Carry trade so swaps don’t eat away profits. example: Aud/Jpy shorts in June… held for over a month and instead of Breakeven, lost a little.
I was able to find his Compounding Course he charges for on torrent. Good stuff. I think I’ll pay him back by joining his private group for the piracy I’ve committed as it’s helped me immensely.
Daemon Goldsmith (not his real name) aka Darkstar hired me as Asian FX New Analyst in 2011 for his website, OrderFlowTrading.com (don’t know if its still around). I can’t thank him enough either. He was paying $25,000/month for Bloomberg Terminal we shared and it was incredible. The FX world is so much bigger than I imagined. Think we can see Retail orders… just look at the Institutional Order Flow… or Sovereign Wealth Fund flows.
Both men have given more than they have received and I am forever in debt to them.
Yes… SWAP… Very good point I overlooked… That’s a few paragraphs in itself to explain how to find SWAP Values and try and trade with the fees rather than against them…
A lot of my trading ideology appears to be very similar to ICT Concepts techniques… Although I have never watched any video’s or read any of his books etc…
He had already been hung, drawn and quartered when I got here in 2016-2017…
Yea, I think I have fomo not trading, so I trade when I shouldn’t and it’s probably just like being emotional. And I think I need to come back down trading smaller positions. Get the mojo back.
It sure is. I think if you’re behind the screen all day watching charts, that starts to wear me down for sure.
It’s discussion’s like these that should make new traders in these markets start to look outside of the box… Do I take everything in this video as gospel…???
NO… But it does give you a glimpse of other concepts in these markets…
There’s a random 50/50 buy/sell outcome-chance…Yet most retail traders lose…
You have to study price action in these markets and understand how it works against you…
