Kiss

[lote_tree]

Hi Markus,
You're right - of course - but this is one of those often quoted stat's that's a tough one to implement in practice. How would you feel after a straight run of 7 consecutive losers out of the last 10 trades or 70 out of the last 100? Your confidence in your methodology and your ability to trade it would have to be supa, mega, ultra hard rock solid. And that's quite solid! My guess is that most traders who take directional trades want an outcome that is at least equal to a 50:50 coin toss. Much less than that can easily start to mess up your head.
Tim.

There have been some good points made so far.

I'd just like to add that obviously, when we enter a trade we naturally hope that our trade works out so we can exit with a profit. And may be this is the main problem when it comes to our inability to take 7 losses out of 10 trades.

Why not take a counter intuitive approach by assuming that every position you put on is incorrect until the market proves your position correct? I picked this up from an exceptional trader.

If the market isn’t proving your position correct get out immediately and wait on the sidelines until she’s ready to move. Ironically, you're actually fulfilling a basic human need for being right by being wrong when you adopt this attitude.

Obviously this approach to the markets presupposes that you have some sort of edge.

I think framing ones trading in this way makes it much easier to take those small losses. Plus you’re focused on listening to the market rather than your emotions when you’re in the trade.

Peace…..

 

[nine]

Good suggestion lote_tree.

I came up with a similar personal solution for myself.

I read that Samurai take the mental position before battle that they are going to die which frees them up to fight the battle without fear. So before the trade, I accept that this trade will die (=lose) which frees me up to just flow with the trade.

I have never however taken the position that the battle must be a winner from its start. I place my stop and allow a certain ebb and flow of the troops before I start asking if I should exit before my target is reached. I think that the right choice depends on your trading style (and should be part of your testing).

 

[rathcoole_exile]

Enter HERE

I'm sure that could be improved with a few extra filters thrown on top :cheesy:

 

[JTrader]

Enter HERE

Looks like a winner . But the bit i like most is the KISS simplicity :clap:. R U willing to divulge your settings?
Maybe we could join forces and get a custom indicator programmed, that marks the entries automatically, making it EVEN SIMPLER :idea:. I know a very reliable programmer in the Ukraine. Me & you DB, how about it :idea::?:

 

[new_trader]

Hi Markus,
You're right - of course - but this is one of those often quoted stat's that's a tough one to implement in practice. How would you feel after a straight run of 7 consecutive losers out of the last 10 trades or 70 out of the last 100? Your confidence in your methodology and your ability to trade it would have to be supa, mega, ultra hard rock solid. And that's quite solid! My guess is that most traders who take directional trades want an outcome that is at least equal to a 50:50 coin toss. Much less than that can easily start to mess up your head.
Tim.

A straight run of 7 consecutive losers :-0

Intolerable!

I'm doing something incredibly wrong if that happens and I haven't experienced that in a long time. 3 consecutive losers is bad enough.

 

[darktone]

A straight run of 7 consecutive losers :-0

Intolerable!

I'm doing something incredibly wrong if that happens and I haven't experienced that in a long time. 3 consecutive losers is bad enough.

Intolerable! why?

Depends on style of entry no!?

 

[new_trader]

Intolerable! why?

Depends on style of entry no!?

Intolerable for me.

 

[JTrader]

(Constructive feedback from my objective observations)
NT - I see a lot of your posts still have the tone of a sulky little schoolboy, seeking one up man ship on his classmates.
Or perhaps i am wrong.
Personally, I'd rather be accused of being a miserable ****.
Just trying to be helpful buddy, as its really not all that endearing to me

 

[darktone]

Intolerable for me.

Ego issue perhaps!? consecutive losses / costs means nothing to me, more concernd with the sum that goes in the other coloum! ..

 

[new_trader]

(Constructive feedback from my objective observations)
NT - I see a lot of your posts still have the tone of a sulky little schoolboy, seeking one up man ship on his classmates.
Or perhaps i am wrong.
Personally, I'd rather be accused of being a miserable ****.
Just trying to be helpful buddy!

Actually, it would appear that way to anyone who would rather fit in with a crowd than dare to think for themselves. What I see in this forum is a lot of little cliquey mobs. Anyway, lets not derail this thread, next time send a PM. You can trust me

 

[wasp]

Actually, it would appear that way to anyone who would rather fit in with a crowd than dare to think for themselves. What I see in this forum is a lot of little cliquey mobs. Anyway, lets not derail this thread, next time send a PM. You can trust me

Getting back on to the topic of the thread....

Is there anything more needed than trends and supply and demand? Do you really think the markets are more complicated than that?

 

[new_trader]

Ego issue perhaps!? consecutive losses means nothing to me, more concernd with the sum that goes in the other coloum! ..

No, not ego. If consecutive lossess mean nothing to you, that's fine. Can you be concerned with consecutive lossess and the sum in the other column or are those concerns mutually exclusive?

I stop trading if I hit 3 consecutive losses and reassess what I am doing. Chances are that ego IS taking over if I continue trading..."I'M RIGHT AND I WILL KEEP TRADING UNTIL THE MARKET FINALLY REALISES IT!"

 

[darktone]

Getting back on to the topic of the thread....

Is there anything more needed than trends and supply and demand? Do you really think the markets are more complicated than that?

That does it for me. If your buying demand / selling supply and keep it tight you cant go that far wrong in my view. Regardless of how many costs you rack up! oooo im sorry lol!

 

[wasp]

Whether a currency market or fruit market, supply and demand is all that matters and all the mystical ****e in the world means sod all. Indicators, moon cycles and little gold leaf books are so bizarre its amazing they get so much attention, its oh so simple........

 

[JTrader]

Whether a currency market or fruit market, supply and demand is all that matters and all the mystical ****e in the world means sod all. Indicators, moon cycles and little gold leaf books are so bizarre its amazing they get so much attention, its oh so simple........

The difficulty with forex is that you are trading half blind in that -
1) There is no central exchange/level 2 platform so that you can see the physical details of supply & demand. Instead seperate ECN's provide seperate L2 etc. We can't see the whole picture, we just see the effects of that supply & demand on the chart, not knowing how far it will go, or how powerful the driving forces are behind it.
2) For the same reasons as in 1, there is no volume data in forex.

Its a bit like walking on ice in this respect - its hard to know how thick the ice is.

 

[darktone]

No, not ego. If consecutive lossess mean nothing to you, that's fine. Can you be concerned with consecutive lossess and the sum in the other column or are those concerns mutually exclusive?

I stop trading if I hit 3 consecutive losses and reassess what I am doing. Chances are that ego IS taking over if I continue trading..."I'M RIGHT AND I WILL KEEP TRADING UNTIL THE MARKET FINALLY REALISES IT!"

These are my last 7 real costs.

1)-11
2)be
3)be
4)be
5)be
6)be
7)be

Like i said! All to do with entry style! Nothing to do with "IM RIGHT"..
I hope to be right!!

 

[new_trader]

Getting back on to the topic of the thread....

Is there anything more needed than trends and supply and demand? Do you really think the markets are more complicated than that?

I think it would have been more appropriate if this thread was in the psychology forum because it has much more to do with the complexities of human nature than markets.

 

[darktone]

The difficulty with forex is that you are trading half blind in that -
1) There is no central exchange/level 2 platform so that you can see the physical details of supply & demand. Instead seperate ECN's provide seperate L2 etc. We can't see the whole picture, we just see the effects of that supply & demand on the chart, not knowing how far it will go, or how powerful the driving forces are behind it.
2) For the same reasons as in 1, there is no volume data in forex.

Its a bit like walking on ice in this respect - its hard to know how thick the ice is.

I think youve just validated the whole point of this thread there JT

 

[JTrader]

I think it would have been more appropriate if this thread was in the psychology forum because it has much more to do with the complexities of human nature than markets.

Minor issue.
The focus is still on forex.

 

[new_trader]

Minor issue.
The focus is still on forex.

Not sure if I agree that it's a minor issue. Wasp began this thread with "Why do we make things more difficult than they are?"

I think it warrants deeper discussion. Even if we began with the premise that markets are not complicated, why do we make things more complicated?