I think I've got it!!

klastica

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For the past six months I have set out on a journey. The journey has been the gaining of trading knowledge with the end goal of having a good start to my trading career without too many mistakes.
A few years ago I had my first flirt with the markets. After an initial good start I started to think it was easy (big mistake). This confidence was short lived after a terrible run of bad bets. I lost £10k in a two week period. The next three months I went back basics with smaller bets which proved successful. But no sooner I thought I had the secret it all fell apart again.
So after reading several books, many threads and posts (on this forum)and a successful few months of paper trading I think I am ready.

The things I have learned in the past 6 months.

Firstly have a plan, then trade it.

Be patient. Let the markets move to your identified positions of support/resistance and then trade.

Be specialized. Better to know a lot about a few markets than a little about many.

Make each trade a high probability trade using trend lines, support and resistance and technical analysis indicators (pin bars, spinning tops etc).

Only bet with money I can afford to lose.

Use stops on every trade and NEVER move them because the market is going against you.

Keep a journal and write every reason why you a trade. Include time, reasons, results and feelings. AND review your journal on a regular basis.

Don’t be afraid to have losing trades. It’s impossible to be perfect.

Let winning bets run and let the market take you out of a position (by hitting your stop) in most cases.

Pay special attention to money management. Know exactly as you take a trade what you are risking and why. Never lose more than 2% on any trade.

Add to winning positions using some of the unrealised winnings when the position calls for it.

Work with longer timeframes (daily, 4 hours, 1 hour) until totally comfortable.

Try to master the markets you trade. Learn everything you can about them.

Start slowly with realistic aims. If you see yourself being a trader for the next 10/15 years then see the first few as the learning years. So no pressure to make a killing straight away. Keep it small and learn from mistakes.

Never stop learning. Keep improving your knowledge (books, forums, internet).

I start my journal tomorrow. Initially just working with a few thousand pounds (what I can afford to lose). I’m gonna be looking at major indices, some currency pairs and some commodities.

Can anyone add to the above?

Wish me luck
 
Hi klastica,
Can anyone add to the above?
Yes, if you haven't done so already, read Douglas.
'Trading in the Zone' by Mark Douglas.
It's quite natural for anyone (i.e. most of us) that tries our hand at trading to dismiss Douglas, Steenbarger et al as a bunch of shrinks spouting psycho babble to help boost their book sales and lucrative consultancy practices. I'm still a little sceptical myself, but, on the other hand, maybe they have a point . . .
According to Douglas, all the things that you say you're now doing or going to do are commendable but, in and of themselves, are still not enough to enable you to turn the corner from a frustrated and inconsistent amateur into a consistently profitable professional. Sadly, market knowledge, a defined and tested trading edge and a robust trading plan are not sufficient to take consistent profits out of the markets day by day, week by week and month by month. Douglas details precisely why this is the case in his book. The good news is that he also offers a precise explanation as to how and why the very malaise that you describe occurs and what needs to happen to remedy it; thereby stopping it from occurring again and again. Before shelling out for Douglas' book, Brett Steenbarger has contributed some excellent articles available for free right here on T2W in the Articles section. Check 'em out, they're well worth a gander, IMO.
Enjoy.
Tim.
 
I am currently looking at the EUR/GBP I see it approaching a potential resistance point at 8795. Would this be something to wait for? Probably take a day or so to get there.

Is anyone else looking at this?
 
For the past six months I have set out on a journey. The journey has been the gaining of trading knowledge with the end goal of having a good start to my trading career without too many mistakes.
A few years ago I had my first flirt with the markets. After an initial good start I started to think it was easy (big mistake). This confidence was short lived after a terrible run of bad bets. I lost £10k in a two week period. The next three months I went back basics with smaller bets which proved successful. But no sooner I thought I had the secret it all fell apart again.
So after reading several books, many threads and posts (on this forum)and a successful few months of paper trading I think I am ready.

The things I have learned in the past 6 months.

Firstly have a plan, then trade it.

Be patient. Let the markets move to your identified positions of support/resistance and then trade.

Be specialized. Better to know a lot about a few markets than a little about many.

Make each trade a high probability trade using trend lines, support and resistance and technical analysis indicators (pin bars, spinning tops etc).

Only bet with money I can afford to lose.

Use stops on every trade and NEVER move them because the market is going against you.

Keep a journal and write every reason why you a trade. Include time, reasons, results and feelings. AND review your journal on a regular basis.

Don’t be afraid to have losing trades. It’s impossible to be perfect.

Let winning bets run and let the market take you out of a position (by hitting your stop) in most cases.

Pay special attention to money management. Know exactly as you take a trade what you are risking and why. Never lose more than 2% on any trade.

Add to winning positions using some of the unrealised winnings when the position calls for it.

Work with longer timeframes (daily, 4 hours, 1 hour) until totally comfortable.

Try to master the markets you trade. Learn everything you can about them.

Start slowly with realistic aims. If you see yourself being a trader for the next 10/15 years then see the first few as the learning years. So no pressure to make a killing straight away. Keep it small and learn from mistakes.

Never stop learning. Keep improving your knowledge (books, forums, internet).

I start my journal tomorrow. Initially just working with a few thousand pounds (what I can afford to lose). I’m gonna be looking at major indices, some currency pairs and some commodities.

Can anyone add to the above?

Wish me luck

First of all: GOOD LUCK!

Anyone who has taken a beating trading and has the guts to perservere because he knows that one day he will get it gets my respect.

Second, I agree with most of what you say.

The most important thing in trading is to have something that gets you into the market that works year in year out.
If you have something that is reliable getting you in to the market- the rest comes very easy- i.e. stop losses and profit taking

I tried trading off the seat of my pants (Spanish Style) using market feel for a while. Sometimes I made alot of money but in the end I always gave it back.

It is far better to have something thatgets you into the market- (THAT WORKS).

Just keep lookin forsomething that works BEFORE youput up any money- you will save BIG mone this way.

I wish I would hve stated this way. I could have saved BIG bucks.

Try out an idea using the smallest size you are able to trade.
If the idea does not work try again.
At least you are not risking much this way.

Best of Luck

"It's not return ON capital; It's return OF capital".
 
It begins
I have a bet down in oil - my order was triggered at 5798 with a stop at 5820 (potential loss of 30 pts with the spread)
I have just moved stop to 5790

Why did I take the bet?
After a series of gains in the past week I feel it could be time for a little pull back. I went in at 8am on a semi ok pin (not a great one)
Dangers to my bet.
The overall trend is definately up it would hit the trend line at about 5750. If it get's there I will have moved my stop to a 1:1 RR gain and see if it breaks.
 
Dangers to my bet.

Oh I forgot to put me.
I was popping out for 30 mins so I decided to move the stop closer (to 5776) giving me a 14 pt win if it reversed. Well it did reverse exactly to this point and then dropped again.
Currently at 5744 (just about at the trend line)

First lesson learned.
 
Second trade of the day
Oil again triggered at 5743 with stop placed at 56.80

placed it at the end of the hour on pin that had formed
 
Moved stop to BE at 5743

I think overall I am feeling bearish about oil today

we'll see
 
Hit my BE stop 5743

I'm now betting an order for 5736 with stop of 5801

I cancelled this order
 
Last edited:
I started my day off with two bets this morning.
EUR/GBP sell 8993
and
GBP/CHF buy 16767

I took both bets because on fantastic pins
 
You do know that both these trade pretty much the same but in reverse....so you've basically traded double the size on one.
 
Both bets moved to break even (maybe I'm doing this a bit soon) I'm gonna leave them for a while now
 
Moved both stops to 2:1 win ratio - which is the system I'm following
This will give me a 90(ish) pip gain for the two bets.

Still think there might be a bit of movement left yet for both bets. The pound does seem very strong today.
I would have taken a bet in AUD/CAD but my platform doesn't have that
 
Out of the GBP/CHF bet for a 79 pip gain. Moved my stop just a bit too close.

Still in the EUR/GBP stop at 8942

That AUD/CAD would have been up now too but I couldn't take the bet.

I'm on fire today!!!
 
Out of EUR/GBP at 8930 (hit stop)

63 pips gained

Making it 142 pips for the day

I'm feeling rather bearish about oil in the next 24hrs as we approach the inventory figures in US. I think there will be a pullback of somewhere between 100 and 150 pts.
I'm gonna sit tight and wait for a signal
 
I'm gonna call it a day. I may check daily charts later.

A good day on the whole. 142 pips in two trades

Missed a few good ones - wasn't sure of oil earlier both up and down missed out on many pips

Also oil has dropped about 130 pts since before when I predicted - I didn't get in cos didn't have a valid technical signal.
Maybe sometimes you have to go with gut feelings on these things.
 
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