Hey MG,
When are you gonna write a new article? I just love reading them.:57:
I suppose when I think of a relevant topic and then have the time to sit down and compose it. Could be tomorrow, could be never.
I think I want to show more trading examples for the time being.
Just as a loyal reader giving feedback, you might want to do a ātrade recap of the weekā that you walk through in detail, or maybe do a ā2 pairs to lookout for next week.ā Just trying to voice a couple of ideas. i enjoyed this thread quite a bit this past week. Like yourself, I think that what you want to do is convey your thought process. I donāt want fish given to me, I want to understand how you fish, and how I can adapt my fishing style to take the best parts of what you do and combine it with what I do.
I donāt like recaps because the deal has already been done. Anyone can be an expert when the move has already been made.
I will stick to following one trade at a time for now. Iām cautious about making this too much work for me.
I reopened my Meetpips account last night, so I will use that to journal the trades moving forward and copy that here.
Continue to witness a [B]Professional Traderās Mindset[/B].
An aside ā
[I][Hey MG, sorry to stray from topic for a bit of schadenfreude and comedic relief ā but sounds like you could teach a thing or two to someone (he who shall not be named) considered a God among men in these here forums. See some of his latest stats? What a āselflessā pro! Oh wait, no, itās all a big joke on everyone ā he IS the puppet-master. LOL.
Yep, I think Iāll blindly listen to THAT guy instead of you ā¦ 
][/I]
While I do appreciate the work youāve put in on this tread MG and some of the points have been of some interest ,event over the last day or so have pointed out (to me any way) there is a potential here with this methodology for enormous losses(i suppose you did say at the onset it was high risk),I had high hopes for this at the beginning but it doesnāt seem to be going anywhere.But I wish everyone the best in the good ship MG and all who sail in her,but as they say in āDragons denā Iām out.
My A/C short retraced to -2% but has eased back some in the last hour. With limited funds the question I ask myself is āCan I sustain 2-3% drawdowns while waiting for the trend to resume.ā Not sure I can but I will ride this trade over the weekend and see how Monday shapes up. MG99 - glad you are back in action gunning for profits.
I have been trying to follow this methodology but until now without much success. I think I must did something wrong, for example EUR/USD, I short at 1.3360 because it drops lower than yesterday low, but however price rebound back up slightly. My question is how will you trade the EUR/USD if you are going to trade it?? And how do I know that this drop is just a correction or a trend reversal?? Thanks lot
My highest drawdown has been 18%, and even then that was account balance and not my equity which actually increased during that time frame.
This methodology is not without variance. You will lose and you will win.
But under no circumstances will you bust an account utilizing the risk management I employ.
If your risk is appropriate for each trade, then you should be able to sustain some drawdown.
This isnāt about waiting for losers to become winners. If itās a bad trade, cut it loose.
Trading price action successfully takes time. Itās an art that has to be honed, but it can be. You canāt come into this thinking youāll turn profits immediately.
The risk management and the way I handle the portfolio is one thing. Thatās the easy part. Entering and exiting tradesā¦ Now thatās what really makes this work.
Thanks MG. This methodology makes much more sense to me. Iām brand new, about 3 weeks on demo, was down about $283. After following your methods and trading multiple currencies, Iām up to being down $171 overnight. I donāt expect my rally to last, but youāve turned around my losses and this is finally starting to make sense.
For those that are sustaining early losses, that should be anticipated. As trends develop, your losses will be cut first.
Yes, this week has been interesting. There is some shake up overall in the market. Today eight of my trades have been stopped out in both profit and loss, and yet I still ended up today at over 7% gain for the day.
Why?
Because the winners ran longer than the losers.
My equity took a hit, yet my account balance had not. And if Iām too lose pips, Iād rather lose pips I never had to begin with.
Stay on demo until you are comfortable, then start with a small amount of money. This is long term trading so results take awhile to show.
Great to hear that advice, thatās exactly my plan. Thinking/acting longer term rather than the madness of looking at one minute charts to scalp for 10-20 pips is much more my style. I snagged 100 pips on GBP/USD long overnight, then cashed out and reversed for a short now as it seems it reached the peak of its trend and will continue on its longer term downtrend.
Probably shouldnāt have bought it yesterday as Iām looking more towards multiple day trades and the overall trend is short. I guess that was just one of the last stepping stones toward long term thinking - making the transition from 1 minute/1 hour charts to the dailies, where I belong.
MG did you (or anyone) go long on USD/CAD in the last couple of days, or were you already in it long. Kicking myself fo not going with mu gut and buying last night.
No. But today is looking good so far. I will likely get on if price breaks the high of today next week.
You are upset because you tried to time the market. You would have been equally relieved had it kept going down. Your gut gambles. It doesnāt know whatās going to happen. Ever. It takes guesses and it sometimes gets it right. We tend to remember the missed opportunities as opposed to the times we dodged the bullet.
This looks to be the completion of a retracement and the bulls are having their say. Iām going to try to hitch a ride on the way up.
The hard part is knowing whether the loser just needs itās wiggle room (so then you [B]do[/B] wait for a loser to become a winner) or if itās a bad trade. To determine when to cut a loser, do you adhere to the 2% risk, or wait for a sign that eventually invalidates the entry regardless of the % loss?
I have a loser in EURAUD but not convinced yet that itās a loser (even tho its about -150 pips) vs a retracement and I picked a bad time to enter and it will resume up again. 2% would be -200.
I have 4 trades going: 2 are nicely +ve, 1 is just barely -ve, and the above. (Screen shots of my entries and rationale are in my journal.)
My average loser is a little under 100 pips. My worst loss has been a little over 200 pips. All the big losers were dropped within a week. While my biggest winners stretched out past 20+ days even reaching out to 47 days.
If it were my trade, I would have the stop loss ten pips below the low of yesterday. Yesterday presented an a bearish outside bar. It was also a noticeable lower high from the bounce off resistance a few days back.
While my overall bias is long, thatās enough to have me put in a stop loss to cut the loser short or lock in profits.
I would not be looking at shorting this pair either at the moment. I would still be on the hunt for long entries for the time being.
I would not however intentionally hang on until my bias changed. I get what you mean with the struggle of holding on because itās smart and hoping that itās going to come back your way.
Iād rather take my loss and get back in if it goes up, then to stay in a loser.
Overtime youāll be able to discern the difference better.