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Phylo
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EURUSD - don't chase the consolidation - it's a major cause of overtrading loses
Sierra Chart
Blue dash vertical line: 07:00 London Summer Time
MT5 Chart
Update
52 Weeks
Q1: 01 - 13
Q2: 14 - 26
Q3: 27 - 39
Q4: 40 - 52
2 x 50 = 100
20 x 50 = 1,000
200 x 50 = 10,000
2,000 x 50 = 100,000
20,000 x 50 = 1,000,00
Risk Equity:
Any value multiples by 50 will be 2% of the product of the multiplication:
>> 2 x *50* = 100 >> (2 / 100) x 100 >> 0.02 x 100 = 2%
>> 37 x *50* = 1,850 >> 37 / 1,850 = 2%
Any value multiples by 100 will be 1% of the product of the multiplication:
>> 1 x *100* = 100 >> (1 / 100) x 100 >> 0.01 x 100 = 1%
>> 37 x *100* = 3,700 >> 37 / 3,700 = 1%
- or -
Total Capital: Free Equity (Risk Equity) + Required Margin
Some suggestions to new traders: 'you still got time ....you'll thank me in the morning !'
Margin should not be considered trade equity - it is dead meat - broker collateral.
💡Factual consideration: the market is ruthless - has no emotion and is totally unforgiving - requires equal strategic self ruthless and self discipline
💡 You should never smell margin. If you are anywhere near smelling margin, you are about to be roadkill. It's dog-eat-dog, and you are on the menu. The market is cannibalising you, eating you alive. If you are smart and enjoy the pain, the market will just continue bending you over and having its way with you until you can't take it anymore. If you give the market the edge, it will plough you deep.
💡 With respect to day trading, no financial instrument is tradable every day.
Recap - As example.
Sierra Chart
Blue dash vertical line: 07:00 London Summer Time
MT5 Chart
Update
52 Weeks
Q1: 01 - 13
Q2: 14 - 26
Q3: 27 - 39
Q4: 40 - 52
2 x 50 = 100
20 x 50 = 1,000
200 x 50 = 10,000
2,000 x 50 = 100,000
20,000 x 50 = 1,000,00
Risk Equity:
Any value multiples by 50 will be 2% of the product of the multiplication:
>> 2 x *50* = 100 >> (2 / 100) x 100 >> 0.02 x 100 = 2%
>> 37 x *50* = 1,850 >> 37 / 1,850 = 2%
Any value multiples by 100 will be 1% of the product of the multiplication:
>> 1 x *100* = 100 >> (1 / 100) x 100 >> 0.01 x 100 = 1%
>> 37 x *100* = 3,700 >> 37 / 3,700 = 1%
- Percentage risk is difficult to conceptualise but a numerical value associated with the percentage risk is easier.
- or -
Total Capital: Free Equity (Risk Equity) + Required Margin
- In other words, as a "perfect" mathematical example, with Available Equity (Risk Equity) of 1,850 and a 2% risk per trade, if a trader had 50 consecutive losing trades, each with a loss of 37, the trader would have used up all Available or Free Equity (Risk Equity)—1,850—and would only have the 100% Required Margin remaining in the account.
- In other words, as a "perfect" mathematical example, with Available Equity (Risk Equity) of 3,700 and a 1% risk per trade, if a trader had 50 consecutive losing trades, each with a loss of 37, the trader would have used up all Available or Free Equity (Risk Equity)—3,700—and would only have the 100% Required Margin remaining in the account.
Margin should not be considered trade equity - it is dead meat - broker collateral.
💡Factual consideration: the market is ruthless - has no emotion and is totally unforgiving - requires equal strategic self ruthless and self discipline
💡 You should never smell margin. If you are anywhere near smelling margin, you are about to be roadkill. It's dog-eat-dog, and you are on the menu. The market is cannibalising you, eating you alive. If you are smart and enjoy the pain, the market will just continue bending you over and having its way with you until you can't take it anymore. If you give the market the edge, it will plough you deep.
💡 With respect to day trading, no financial instrument is tradable every day.
- Formulate and imprint in your mind your strategy to stay as far away from margin as possible.
- Then test on demo / simulator like a professional pilot does before he puts in real time hours.
Recap - As example.
- If your risk is 2% your numeral risk is the multiple value associated with *50* (eg: *37* x 50 = 1,850).
- Stop trading if you have 2 failed trades valued at 37 each per day or session - keep it tight and don't chase lost opportunities - tomorrow(s) are another day - today will soon be yesterday's papers, of no more important.
- If your risk is 1% your numeral risk is the multiple value associated with *100* (eg: *37* x 100 = 3,700).
- Stop trading if you have 4 failed trades valued at 37 each per day or session - keep it tight and don't chase lost opportunities - tomorrow(s) are another day - today will soon be yesterday's papers, of no more important.
- Don't chase the consolidation - it's a major cause of overtrading loses
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