Making Money Trading

Originally Posted by 1Pipped

TD great rules, I would put No.10 of yours as No.1 of mine.

On No.11 do you mean if you are in a winning trade, but not fully in with your maximum risk you should get the rest on as soon as you can ?

Originally Posted by trader_dante

All traders should have not only a trading plan but a set of rules and/or observations that are a constant frame of reference.

I have mine above my desk at work.

These rules and observations are controversial at my firm, for reasons that will become immediately obvious, but they enable me to make money and keep it.

1. IGNORE THE NEWS

2. OBEY THE LEVELS

3. NEVER LISTEN TO OTHERS OPINIONS

4. LOSERS TAKE PROFIT

5. MOST MARKET PARTICIPANTS LOSE MONEY

6. MOST MARKET PARTICIPANTS DAY TRADE THE LOW TIMEFRAMES

7. UNDERSTAND FEAR

8. STRONG HANDS NEED LIQUIDITY

9. NEVER OFFER THE LIQUIDITY

10. IF YOU ARE IN A TRADE, DO NOT WATCH IT

11. IF YOU ARE RIGHT AND YOU ARE NOT TRADING YOUR LIMIT, YOU ARE WRONG.

Originally Posted by skelly22

hey there,

any thoughts on this pin?

i was going to put stop loss under the bar before the pin if the lastest bar doesnot break it, or else under the pin.

i dont see too much else happening out there....but i'm prob still blind to setups!!

TP at 103.42 where it meets the down trend line

Originally Posted by superspurs

i asked about that setup earlier in eu/chf because of these examples.the longer term view of the ym is to show where i got the pivot from

Originally Posted by trader_dante

All traders should have not only a trading plan but a set of rules and/or observations that are a constant frame of reference.

I have mine above my desk at work.

These rules and observations are controversial at my firm, for reasons that will become immediately obvious, but they enable me to make money and keep it.

1. IGNORE THE NEWS

2. OBEY THE LEVELS

3. NEVER LISTEN TO OTHERS OPINIONS

4. LOSERS TAKE PROFIT

5. MOST MARKET PARTICIPANTS LOSE MONEY

6. MOST MARKET PARTICIPANTS DAY TRADE THE LOW TIMEFRAMES

7. UNDERSTAND FEAR

8. STRONG HANDS NEED LIQUIDITY

9. NEVER OFFER THE LIQUIDITY

10. IF YOU ARE IN A TRADE, DO NOT WATCH IT

11. IF YOU ARE RIGHT AND YOU ARE NOT TRADING YOUR LIMIT, YOU ARE WRONG.

Originally Posted by trader_dante

Hands up who got shaken out by the "RETRACEMENT BUS" on Eur/Gbp. Frustrating since we are now making new highs. (see chart 1)

This happens time and time again - infact some of you that are taking this strategy and making it your own may want to experiment with closing half the position at the first problem area and then buying it back when price retraces to its original entry which I would say it does, the majority of the time.

I had an argument with a colleague that sits opposite me yesterday regarding this: he is of the firm opininon that if you have +80 ticks on the table as we did on this trade, you cannot let it go to breakeven or worse, a loss. I've heard that sentiment echoed many times on this board and by other traders. Well, if you are playing for short term gains then that may be true but when I argue I don't do it based on unfounded opinion, I do it based on my OBSERVATION and EXPERIENCE in the market. I'm not a know it all - I just continue to learn from the market and try and work out ways to beat it. And the way to profit from the longer term moves is by realising that when they get underway there will be a jostling for position - as one great trader once said, the biggest back and fill is at the beginning of a new trend and I think this is often true even when an old one resumes course.

Have a look at these moves and see just how a good profit comes back to breakeven or a small loss before the real move gets underway. Notice how the entry is a mere two or three candles before and how market participants are shown a good profit and lulled into a false sense of security. They tighten their stop or protect their profit. Then they lose their position. The market moves without them and it often moves BIG.

What's the saying? Fool me once, shame on you. Fool me twice...