Category: Paper Trades

After identifying the trend up or down, a safe way to enter a trade is to wait for the first horizontal continuation pattern of five minutes or more and simply do a stop order above it, if going long, or below it, if going short. Then set your initial stop loss at one and a half to twice the width of the pattern on the side opposite your order.

Livermore in “Reminiscences…” once said something like that: “admitting that I was wrong with my long automatically meant that I had a reason to short”. Maybe not exactly that (don’t remember exactly and lazy to search for an exact quote in a book ) but you got the idea.

P.S. Don’t open your full position initially.

Cad/Jpy does look like a short term sell around 104.50-70 areas.
It should find support arnd 103.40-50 areas …if this region is penetrated well we can see a move to 102.45-50 areas. Meantime these resistance (102.45-50) should eventually hold.

Do you trade to:

make money or
to make maximum profit?

Interesting.
After a lot of discussions about this topic my friends answered, its 2:1 in favor of making money vs. maximizing profit. I think the responses reveal a mental status not oriented to win by default.

So, who will explain all the fierce discussions regarding “superior” trading styles or techniques, as well as the self-deprecating topics about leaving money on the table, getting stopped out, etc?

Of course to answer that question you need to understand the subtle difference between making money and maximizing profit!

My guess, many traders are not being honest with themselves…

Forex is all about how to hit the next ball correctly rather than worrying about something of a distant future. The next ball may be for 2 pips or 20 pips or 200 pips or 500 pips depending on a trader?s style.

Anything is possible in Forex.

I am useless as a daytrader. Corrections may take days or longer to complete.

Good quality info is everything in this game.

Bottom picking in the Usd/Jpy is the Mother of all risky trades.

We learn how to trade till we stop trading and we learn from each other everyday. That is the beauty of trading and life in general.

Do not worry about what market will do. Just worry about what you will do when market reaches your “pain point” or “happy point”. You will have an easier life as a trader that way.

Forex players can operate quietly, but they cannot hide their moves in those charts.

Good morning. Yes, no liquidity and no conviction by players make the market look like a vagrant loitering in his usual area. Good forecasts and trades.

Good sleep is essential for good trading but most of the traders I know of seem to sleep with one eye open.

I had a problem - closing my winners too soon. The problem here is that you are trading the “price” and not “order flow”. I actually had the same problem, and after some mentorship, i learned that i was trading the “price”and not the “order flow”. You are exiting positions simply because of a price/target is getting printed, and not because the order flow is changing.

Try to focus on the order flow (example: if its a bull market, try to find signals that tell you that the order flow is starting to go bid, then exit, dont just exit because its hitting a certain price number).

Actual questions starting from ~ May 3rd, 2007

Q:
When this usd/jpy will stop pimping above 120?
When eur/jpy and gbp/jpy will drop?

A:
When the LAST BRAVE SHORT GIVES UP!

Trading is about you. Your attitude towards the market and it is more valuable than any hyped system available these days. A system can be a compliment but can never be enough to trade the market successfully.

Take a deeper look and contemplate. We are not trading against the market but with ourselves. This would lead to a question of attitude towards the market. A million dollar question! The inner us. We have to expect this process is hard and painful some times. Trading is all about discipline, patience and heart. We live our lives based on beliefs. Our trading represents ourselves and our values and it takes a lot of inner work to change failure into success, and a lot of discipline to maintain success.
One must conquer himself to conquer the world, a trader must not want to conquer the world, no reason here.
Whoever said it, has gone through great experience and achieved the ultimate reward.

Self is the toughest obstacle to overcome in trading. And it’s the one area that is most avoided. How many sites regarding trading psychology are on the internet compared to the other analysis and trade calls sites? Now take that into consideration as you think about the golden rule of trading…. “ The vast majority of Traders lose.”

The proper psychological mindset will not over come bad trading, but the best setup, pattern etc… cannot be traded successfully without some self-control or discipline.

Which is why so many want to automate a system. But this brings up the underlying problem. Responsibility for ones actions. The Herd wants to do what everyone else is doing and when the herd loses, you hear about Brokers running stops, Bad trades from the call services…

Winning in this business is for the most part a lonely place.

Just a loser thoughts.
Between, last couple of weeks seen a nice up period here…

GOD Bless!

A boring day today and I want to write down few lines about losing trades and losing streaks. In fact, actual for me is “last trade of the week” syndrome (my term). It is happening to me from time to time, after a succesfull week – last trade, usualy on Friday is a losing one; is actual for last 2 weeks, happen before. Re-readed “The secrets to Emotions Free Trading”.

…The biggest reasons people get into losing streaks while trading is because they confuse their losing trades with themselves, you conclude that because you had a losing trade(s), you’re a loser.

The important thing to remember here is that I am not losing trades. Losing trades are PART of TRADING. There is not a single trader in the world that doesn’t have losing trades. The only way to avoid them is not to trade in the first place. I can not be a successful trader until I take mistakes and losing trades for what they really are. They are simply by-products in the trading game and need to be used to gain learning and understanding. No way do they define as a person. But that is where the big problem comes in. Many people let their losing trades and mistakes to define them. If they’re having trouble and have had a series of losing trades, they start to think of themselves as a loser. They continually think of themselves that way, this kind of thinking will just bring on more of the same.

Forgiving yourself completely is the only way to avoid this trouble. You are not your mistakes and losing trades.
You must put the past behind you and go forward.
Holding a grudge against you only hurts yourself. This is actual for ALL THE THINGS happening in your life and what is an actual rule for your life can not be unactual for your trading.
Forgive yourself, trace a line, close that book, it’s the only way to be successful.

Proven again last week ;-).

Adapted to me,
And inspired from “The secrets to Emotions Free Trading”, thanks to Larry Levin