Am I getting it wrong ???

This is a discussion on Am I getting it wrong ??? within the First Steps forums, part of the Reception category; Its possible to be profitable with a poor system, as long as it gives you a slight statistical edge (e.g. ...

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Old Jul 24, 2010, 9:22am   #11
Joined Feb 2002
Re: Am I getting it wrong ???

Its possible to be profitable with a poor system, as long as it gives you a slight statistical edge (e.g. 51 winners out of every 100) but your money management must be very strong. Good money management will ensure you don't get wiped out if your 49 losers all come in a sequence before your 51 winners.

Don't use a system until you have backtested it over 100 trades. If you would not be profitable (in pips, not just % of winners against losers), don't even put on one trade with that system. Refine it, backtest again, refine it again, backetest it again. Then practice with tiny amounts of real capital. Make sure you know what the market will (probably) do and what you (definitely) will do about it.

Think about the hours of practice a concert pianist puts in for the sake of a 2 hour performance. he doesn't start to prasctice live on stage.
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Old Jul 24, 2010, 11:02am   #12
 
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Re: Am I getting it wrong ???

plan to spend at least the next 5 years learning the market.. guaranteed you going to go though more losses than you can throw a stick at. but what ever you do,dont throw real money at it until you have at least a 6 months to a years consistent profits and a growing demo account. the first thing you need to do is learn patience and be able to take losses properly. work through techniques giving them at least 25 trades each while you assess their pro's and cons. good luck
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Old Jul 24, 2010, 1:49pm   #13
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Re: Am I getting it wrong ???

Quote:
Originally Posted by Protegex View Post
FADE the cross over ???? Means ??? Anyone???
It means trade in the opposite direction.
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Old Jul 24, 2010, 4:04pm   #14
 
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Re: Am I getting it wrong ???

Protegex started this thread Wow this forum is fabulous... Thanks to all those that have replied... Will try out those methods and come back... Thank you...
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Old Jul 24, 2010, 6:24pm   #15
Joined Sep 2008
Re: Am I getting it wrong ???

Your system is not good, but you aren't telling us the whole story.
What money management method do you use, how/where do you exit? Your exit is as much or more important than the entry. Even the best system will fail you if you don't exit properly. You have much to learn so take the time to do it.

Peter
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Old Jul 24, 2010, 8:08pm   #16
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Re: Am I getting it wrong ???

Quote:
Originally Posted by Protegex View Post
Hi john

What I meant is that when the shorter MA crosses the longer MA, I buy and when the shorter MA falls below, I sell.... This method is killing me quickly ....

Hope you have a better advice for me... Thanks everyone...
1/ stop trading for now. you're not getting anything but bad experience.
2/ read forkers post
3/ dont worry about it being a 'bad' idea using ma cross as most here seem most concerned with. sure you will get killed in some balanced markets. there is no golden bullet for entry if using tech analysis/indicators. the secret is to learn trade management. learn to identify trades that will wont go your way and get rid of the asap, (you wont always get it right, but dont seek perfection as it dont exist, but try & b as good as you can). learn what the winners behave like after entry in the way it moves. i bet the winners have good momentum/extension immediately. you wont learn this overnight. so paper/demo trade til you do.learn to get a feel for when the moves over.
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Old Jul 25, 2010, 2:02am   #17
 
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Re: Am I getting it wrong ???

Protegex started this thread
Quote:
Originally Posted by charliechan View Post
1/ stop trading for now. you're not getting anything but bad experience.
2/ read forkers post
3/ dont worry about it being a 'bad' idea using ma cross as most here seem most concerned with. sure you will get killed in some balanced markets. there is no golden bullet for entry if using tech analysis/indicators. the secret is to learn trade management. learn to identify trades that will wont go your way and get rid of the asap, (you wont always get it right, but dont seek perfection as it dont exist, but try & b as good as you can). learn what the winners behave like after entry in the way it moves. i bet the winners have good momentum/extension immediately. you wont learn this overnight. so paper/demo trade til you do.learn to get a feel for when the moves over.
Hi there, thanks for replying. I am curious on what to look out in order to feel when the market move over. Do you have any examples or care to elaborate more on this ?
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Old Jul 25, 2010, 4:56am   #18
Joined Jul 2010
Re: Am I getting it wrong ???

heres a simple setup by me


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Old Jul 25, 2010, 5:45am   #19
 
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Re: Am I getting it wrong ???

Tomorton talked about backtesting and practice. Forker, in this post, gave yhou some excellent advice. Don't play for real until you know your system has proven itself beyond any shadow of a doubt.


Quote:
Originally Posted by forker View Post
plan to spend at least the next 5 years learning the market.. guaranteed you going to go though more losses than you can throw a stick at. but what ever you do,dont throw real money at it until you have at least a 6 months to a years consistent profits and a growing demo account. the first thing you need to do is learn patience and be able to take losses properly. work through techniques giving them at least 25 trades each while you assess their pro's and cons. good luck
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