Let me add the following thoughts (thanks Dr. Woody):
[I]We can get caught up in old events that play out over and over again[/I]
[U]Results come from how and what we think. If you are getting results that are not what you want, then you must change your thinking to break the pattern.[/U]
[B]The definition of insanity: repeating the same actions and expect a different result.[/B]
[B][U]
Change your thinking to change your results, because if you always do what you’ve always done, you’ll always get what you’ve always gotten.[/U][/B]
I should have added that hitting the 200 fib means hitting it without having a big enough retracement to stop you out. Of course price can move very far in the direction of bias.
So, that said (my previous post), I find it a good time to post my story (the short version). Perhaps it’s of help to others.
Started some trading in 2001 and lost a bundle. I didn’t know what the heck I was doing. Traded everything that moved. Won some, lost some more until the money was gone. Not been trading until it started itching again in 2008.
Joined BP in Jan 2009 and haven’t been here much until I noticed ICT’s stuff.
Searched for information but had no idea what to look for and where to find it.
Stumbled around for a year, found good info on another site but didn’t quite understand it.
I did know that supply/demand is what drives prices (even though they’re manipulated).
Stumbled across Mr. Seiden’s stuff and spent considerable money and time in 2009 learning that.
Found out that it was not working for me. Capital preservation and a rudimentary tradeplan kept me on the safe side so no harm done (phew).
Wanted to learn more re. supply/demand so I found cumulative delta.
Did a training on that in 2010/2011, to find out that (to me) it is in fact as good as any indicator (for forex futures at least).
Did a training on trading volume charts with futures. Started trading 6E futures (Euro); average W/L of 2.8 and 45-ish% winners. That was last May. Not bad but not according to my plan so I continued my quest.
Dug into my own psychological aspects, did two Van Tharp seminars fall 2011.
Also started learning from Dr. Joe Dispenza and started meditating by the way (from Jan 2011).
Had been looking at ICT early 2011 before the volume charts stuff but let it go after that seemed to be working for me.
Started reading Al Brooks’ stuff last Nov. Halfway through the book I suddenly realised that one of the reasons I went off the volume trading was because it was too hectic for my liking so I thought what the heck are you doing reading ultra-scalping material.
At the same time, MF Global went under. That was when I decided I wasn’t a good idea to put my money in the hands of the futures vulptures. Imagine losing your hard-earned money because your broker used that segregated money to trade for himself. Not a smart thing to do I think.
Decided to go back to Forex. At least there are brokers/banks in a certain country where the money is insured against this kind of BS.
Remembered ICT and looked into it again, only to find out the material is exactly what I want: trading daily swings and further up in time.
I’m like a pittbul. There is NO WAY to stop me getting to where I want to be and (thus) will be. Every failed attempt brings me closer to my ultimate goals. I rejoice them. I am going to succeed no matter what. While I do that, it is my pleasure to help others and I will continue to do so in the future. It may not be much but I’m sure it will help somebody I don’t know and may never know in person. That is only a small return for the countless number of people who mostly unknowingly have helped me to where I am so far.
I have probably spent towards 30k USD in education so far. Now here’s the kicker: study ICT’s stuff and you will find that there is no need whatsoever to do that. Everything is out there for no or only little money (couple hundred bucks). Don’t think that paying for material is required and don’t think that free material must thence be inferior. You’re in a good place here, that is why I stressed to go through all of the material in an earlier post today. You can shortcut your learning curve by doing so. The irony of it is, that some of you will say yeah sure, whatever, which is fine with me. Just remember it when the time is there. That time has arrived when you’re close to giving up on your own beliefs. That is Desperation Time and it will finally help you to realise there are no shortcuts to success.
Based on my insights, the only addition to ICT’s material that has been presented so far that I would suggest at this point in time (notice the disclaimer…) is to study material on the psychological side and then study yourself to find out what self-destructive behaviours you have and how to tackle them.
They say 80% of the forex market is speculation. So even though the market is ruled by supply and demand in the long term, it is mostly mob rule in the short-term. The fact that mobs can be out-witted is why small traders can be profitable. Sheep get fleeced and hogs get slaughtered. Ultimately the only real strategy for a small trader is to follow the big money for the move and enter on a trap. If you don’t enter on a trap then you’re doing what the dumb money does, and since they lose we’d lose too. That’s why ICT’s OTE is so brilliant. Not only are stop raids a good trap but they are very common since market makers are always trying to engineer them.
I haven’t been using all of ICT’s tools. I really don’t think I have the expertise to use them all. But I have been trading a much simpler version that has been working very well. Just enter on a stop raid, in the direction of bias, at major support/resistance, using very low risk, with targets determined by fib levels adjusted for s/r. It’s so simple but I never really put it together before this thread. This thread has been wonderful. Really a great help and a unique resource. To my knowledge there is nothing like it on the internet. So thank you ICT. I am profitable for the first time because of this thread.
Wow, never thought I’d be giving advice to myself! I should print that and put it on my wall.
I think it could be months before I make new equity highs Again, and it makes me want to just take the shortcut so badly… But im sick of falling into the same old losing habits…
Your plan is what gives you a winning edge in the “market”.
You have to follow your plan in order to win more than you lose.
Any trade according to your plan is a good trade, win or lose. It adds to your consistency in winning over time (an X number of trades)
Any trade where you violated the rules of your plan is a flawed trade, win or lose. It obscures your edge, like a cloud of mist obscures your vision.
We need to aim for 100% efficiency: only trades according to the plan. Consistent trades.
It’s not about the money, it’s about perfecting the process that inevitably produces a positive outcome
Get rid of any inevitably self-sabotaging beliefs and habits that obscure the process.
Stick to that and you’ll hit new equity highs before you know it. Onwards and upwards !
One more thing in general and I’ll shut up since it is not my intention to hijack this thread whatsoever. I am merely a guest :44:
Please forgive me if my ramblings appear to be condescending - that’s not my intention either. I have great respect for AK’s and others’ persistence and willingness to be asking for feedback so as to make things happen by taking matters in their own hands. That is one characteristic which is required to become successful and in that perspective I’m happy to share insights that I have gained so far in the hope that they are helpful and worthwhile to consider.
let’s put this in perspective. Let’s say you are trading an account of $1500 and you risk 1% each trade. That would equal 5 micro lots. So each trade you enter, you are risking $15. Say you catch the market on a 150 pips swing 5 times per month, and your trade goes something like this:
2 lots closed at 30 pips= $6
1 lot closed at 60 = $6
1 lot at 90= $9
1 lot at 100= $10
5 positive trades similar to this will net you 10% per month. 3 trades will earn you 6%, all at very minimal risk. This calculates out to be a 2:1 RR ratio. ICT is so right when he says it doesn’t take much.
I think if you cut down your risk and you have a bad trade, it will be much easier to say to yourself, it’s only 1%, not a big deal and move on. I hate losing 2% and it irritates the hell out of me for a while, but I don’t mind 1%. This is why I rarely trade with 2%, and will not trade with that much risk until I am a better trader.
your not hijacking the thread. I think you have said a lot a good things today that will help a lot of traders who hang out here.
Sounds like yu have been around the block a time or two, so I’m sure you have already gone through a lot of the trials and tribulations that can occur with trading. Passing along your experience will only help everyone
Well according to my brand spanking new trading plan, I will be risking 0.5% until I’ve recovered to 97.5% of my equity high. And I will quit trading after 2 losses. So thats a max loss of 1% per day. looks like February will be pretty relaxed
