*** blah ***


Let's face itFIFA will make more cash than anybody else in soccer, same for casinos, the house always wins. Wichever match we play, we only play, wo don't make that match, we don't create rules, we are nobodies.

The same in Currency Market, we play their sport, they always win. And playing somebody else's game is gambling. They can't lose, we could. We are Spanish Fighting Bulls, about to be slaughtered. We are Cannon Fodders, maybe not cannons.

With this in mind, I place my orders.
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My entrances: Whenever I believe Price will fall I would brief, whenever I believe price will grow, I will buy.

Tell me, if you had a decision to place a trade with only an indior or price just, do you anticipate solely the indior? Really, try to place an order by looking at the indior just. Or have you tried trading divergence in a fashion that is strong? How did your account look after it? Can it be one or zero dollar?
Let's face the reality: none of this crap a soldier conveys will save his live. NONE OF IT. Just the weapon, components, helmet, the vest and the image of your loved one, not the toilet paper not the dental floss, maybe not the spoon, not the chewing gum, cigarrets, maps, compass,... nothing because large fat backpack will save them...

Will those 1000 indiors make your profitable? Aks yourself this question! Soldiers carry all the excess stuff because it makes them safe, but it doesn't. It's still a car without airbags! Do you have all those indiors on charts, because they make you feel safe? Do you blame the indior, should you lose? I understand you feel safe, when things go according to plan, even if the program is not working out. But this is an erroneous feel of safety!!! Throw all of the stuff aways and free yourself from the distress and start finally listening to the price. Aks yourself this: Can you go long, when EURUSD is 1.5000? Or would you short the pair at 1.2000? Obvious answer, isn't it? Now, what exactly does your indior tell you? That's right, nothing! It states -0.0004567.

Throw everything aways out of the chart, all those RSI, MACD, Stoch, SuperSignalUberMegaHereBuyCanlde100%win.ex4 indiors, all those robots (except for Wall*e, you can keep that one)

The purpose of this journal is to see myself trading by another point of view. I don't post these things for others, only for myself. How greedy. I will not show my outcomes, whether win or loss, by a screenshot, a lot of trouble, I am just going to post results here, because it is better than on paper.

I will post results in % just, no pips. Because if my SL will get hit, no matter how many pips it's, it's going to be a fixed proportion of my account. I guess 2%, occasionally lower. Profit factor comes by the end of the year.


Goals Trading Forex (in descending order, first need to give way to next etc).
The hardest part is 1 and 2 along with the hopeless starts with 7.Not lose money Be profitable Double my account and also fall out of school 100,000 1,000,000 10m 100m and start a movie production company. Yeah, why the hell did I go to film school if not that? 1 bil Be the wealthiest guy on the planet Earn Bill Gates borrow money out of me (you'll get a friendly 5% charge, Bill) Have more cash than there is money in the world and allow my profits be every pip the currency moves and more. blah. Whatever is in 11 multiply it by a factor of 10. Die by drinking hot, molten, liquid Gold as a punishment for being too greedy.

Other aims:
Help household, handicapped, weak with what I could and have. Not that I do not try that already, but with everything I have is like imagining helping others.
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Money Matters (disperse, RR, pips, lot size)


Envision yourself buying or buying currency together with your eyes completely closed, with no spread, 1000000 times in a row.
When you open your eyes, you need to have about precisely the same amount of cash you had in the beginning as when you're young (1000000 transactions take time, dude!!!) . For many more geeky onces we asume your account can go into negative and recover back just like my bank account which functions as a credit card. No calls from Mrs. Margin either. And not attention. We are in Wonderland! Wheeee!

Now add disperse. Do the same again, in case you won't make it in time, allow your gradgrandchildren do it for you... so when they finally make 1000000 trades, their account is in minus about precisely the same number.

The house always wins! The house is the broker!

I would like to make this clear: It's spread and spread ONLY that makes you shed in Forex. If there was no spread, no one would not win , but your account would be the same size again and again if you'd no idea what you do. No matter how high the spread is, 0.1 pip or less, it's the ch, a principle in this sport, that you cannot break. It makes sure account balance over time impossible! The house always wins. My house never wins that many beautiful house competition, but you get that.


About R, trueRR, TrendEdge, Beating the spread!

Same instance as above, no disperse. Put as many transactions with R:R 1:1, then as many with 10:1, then as many with 1:10 (you can tell your grandchildern to do that). Yeah, that means you risk 100 pips to make 10. And examine the results.
I suppose you placed another 30000000 transactions and you see the same account size. Yes, regardless of which RR you use, it'll always be the same outcome.

Quite simply, in case you risk 1 pip to make 100, you'll be stopped a hundred times until you make one triumph and reverse if you risk 100 pips to make one, you'll have a hundred wins in a row until one loss wipes out all your wins.

R:R DOES NOT MATTER!!! Every single trade has it's very own R, you can't place trades all in one system.

I studied math and obtained a few of the math out of it.
Did you know, that thinking of losing 1 pips to gain five (1:5) is absolute bullshit? It's a complete crap! Should you use 1:5, your chance to win is just 1 in 5 just, should you risk 5 to receive one, you'll acquire 5 times then shed 1.

Your R:R is a continuous! A freaking constant like a pi. That constant is however not exactly 1:1. Spread. Yeppi yepp.
If your spread is 1 pips and the transaction is currently 10pips for 10pips, you wind up with 1:0.9. That's the edge your broker has, not you!
Let's call that trueRR of 0.9

If you go to greater timeframes with larger targets and stops with the same spread of 1 pip, you'll get a greater trueRR, should you hunt 100 pips with stop loss of 100, your trueRR is near 1, it's 0.99.
Your purpose is to keep it above 0.95 and as near as possible to 1. Do NOT take transactions that have target of 8 pips, this will only hurt you over time. My minutes. Sl and tp on EU is above 25 pips (trueRR is 0.96). Typical I would guess 45 (trueRR of 0.975), maximum sl is someplace about 80 (trueRR 0.985)

I compute it by trueRR=(pips-spread)/(pips)

Should you increase the number of pips of your SL and TP, your trueRR will get better, but it is going to never be over one, unless your broker will give you a negative disperse... Yeah, imagine that!

So, from that it's not too difficult to see that choosing higher time frames can make you far more successfull. MUCH MORE SUCCESSFUL!!! You move to H4 transactions from M1 trades along with your profit factor will move 0.1 up. And that's huge.
Profit factor is calculated but dollars won over dollars lost. So all your wins are 1500 dollars and all your losses 1000, you have a profit factor of 1.5. Envision how enormous 0.1 is! That's 500 dollars you triumph and not 400, that's 25% larger wins.

Currently, moving to greater TF won't save you, because we are still under 1, which is less than break even, and that's, you're in a losing match from starting on. The spread is still there. We are in need of an edge. And it better be eloquent !
The best advantage of all is trend. Trend is your friend. Is your freaking enthusiast! The TrendEdge is calculated by adding all bullish candles and substracting all bearish candles. The difference is The TrendEdge. Therefore, if in one day, a pair moves 80 pips down, but reverses and makes 120 out there, you experience an Trendedge of 120/80, which is 1.5. Assuming we are in an uptrend, you shouldn't have had any short positions about the 80 pips move down. Wait for a retracement and go long with this trend. That 0.5 along with your 0.99 makes your profit factor 1.49 (and should you exchange M1 it's 1.39). ALWAYS TRADE WITH THE TREND!

But if you'd trade on the 80 pips downmove correction, your TrendEdge is 0.66 from the example above! It's less than one which means you're likely to lose a dollar for every 66 cents win. All chances against you! The only thing that will save you is the Private Edge, you as a trader contribute a lot and that's where all of us differ, in the long run, it's what makes one successful. If you're a strong trader, I really don't see a reason to exchange with 0.66 instead of with 1.5. Skip the correction and wait for the move that makes the tendency a trend.

In the end, Forex is about Beating the Spread! That's what makes forex really interesting. This is a objective of everybody: to be profitable, to have the ability to beat the spread.

Conclusion:Choose the maximum time frame you feel comfy with. Moving from M1 to M5 is already a significant step! Trade only with the tendency and with the tendency just! Find your personal Edge, find things in which you triumph, backtest your egy and look if you've got a good profit factor (anything over 1 is profitable! min. 1.5 should be your goal while backtesting) Thus, lets beat the spread out of your broker!!!


DD, abot pips and other items

Envision there would be only 10 Foreign Exchange players and they possessed the entire FX market and no one else, and all the money being exchanged in place market would be theirs.

Now, do you know that if they all use the same system, however megaprofitable it is, there'll be no winners and no losers. Because all of them play each other!

Now think about a single man loing a perfect system he purchased on ebay from Chuck Norris and starts making money. The other 9 players wouldn't like it and they would adapt to the other guy's techniques seeking to loe his secret and will have the ability to counter his motions making him lose. This is the reason no EA Bot would ever work!!!

If a single team changes tactics in football, the other team must look at it, analize then apply a counter egy. That's why one system functions for a brief time and then stops working - since money you employ your system to is currently managed in a differnt way and you have to adapt your system to coincide with the new market behaviour, because you were concealing billions from these and they have accommodated to you, they want the money back. If you don't adapt, they will use their 14 days money back guaranty. Whenever you see market move against you, it's when you have to think of it as that somebody esle is getting hold of your money and if you do not adapt, you will keep on losing.

Forex is like tic tac toe, you have a buy or sell alternative only. It's either one or zero, Forex is electronic!!! It's so simple to adapt! Change sell for a buy. Simply stick to the market's new behaviour, that is it!

Another significant facet is DrawDown. Double D, but maybe not as pleasant as Dual D. Not as pleasant at all.

I don't like the term money management, it seem lame like something that I must do, but I don't wish to.
You're new to Foreign Exchange and you wish to make money, right. Now you've got your $5,000 on your account. Let me ask you. Do you want to lose $500 in the first moment? Of course, not, you my poor little ones. However, you will, you will... if you do not manage your money correctly. If someone asks you, what do you do for a living, do not tell them you're altering currecies, like those men in third world nations changing paper invoices on bazars... The nicest chick goes away from you there. Tell them, you're a money manager! How cool is that? And if they ask, trendy, what is that? You tell them you change currency on interbank network and they're going to be like WHEEEE!!! Me want toooo!!! But don't inform them about leverage and the money you play is their deposited money into banks hahaha! I did. There was an awkward silence after it.

Let me jump away from it for a bit: Aks yourself:
Can you believe, 1% on your account a day is enough or you need more? That's not a big amount, 1. That's just like the smallest integer lol!

Now, envision yourself gaining 1% per day consistenly for a year.

Minus weekends minus holydays, we have 225 days per year you may trade possibly more, dunno, I only took the amount out of my mind.

That's you know 1.01^225 return on your investment. Just a momnet... I have a calculator here...= 9,38.

You know exactly what that amount does? It multiplies your first investment after a year. That's right that's over 900% gain per year. Now you know that is some crazy amount.
Tell me, why are not you satisfied with this amount 1? Professional traders are happy with a lot less, but you, yes I'm speaking to you, if your bank provides you 3% per year, why would you not like 1% every day? If your account is $1000 big, do you know, you won't have the ability to make over a 10 dollars a day? Ever heard about being undercapitalized? The 115 dollars you created on this day and wrote here oncliqforexto show everyone you're the best, you gonna lose these soon. You have already lost them! But don't worry! When your account grows, your profits will expand too! Just remember, 1% per day isn't that realistic! That's the issue with small accounts. People today expect the impossible: to turn an 1000 account to some mil. It's possible, but maybe not if you're just beginning!
Be happy if your day ends with 0.5%.

To go back to DrawDown - that's the maximum you can theoretically lose if a few or over a couple of transactions in a row are going to be winners.
Alright, let me shut up here, since I don't like all those guides telling me, it's like this and like that, but what the hell am I supposed to do? I inform you, Risk MAXIMUM 1 percent!!!! Especially on live account for a beginner. You will have PLEASURE losing, since as soon as you've lost you are not a pig all covered in sweat and shaking an all that.

PIPs... or there we proceed. I hate pips, I don't know them, I don't want them. What exactly are they. They are pennies of cents of a dollar. How the hell did this happen? Well to tell you the facts, in banks they cut pennies into hundreds of pieces and keep it that way. It is so small you can sniff it. Sniff a cent of pips via a dollar bill. Banana phone!
No I'm kidding, there's no pennies in bank that are cut into pieces, as you don't cut 100 dollars in half so it's possible to give your friend the half of it so he could get that girl below the bridge and eventually become a man. That's right, you give him a whole hundred so he could get a much better one to develop into a better man, but hey, 100 dollars, just how good will that be hahaha. Now envision the 50 dollar one rofl.

Where were we,.... pips! Yeah pips.
Do you understand, you can have positive results in pips for the week, but have adverse profit? Yes, 315 pips this week, -$13,000 on account. YES. Because PIPS DON'T MATTER! Here in forum you might loe experienced traders submitting their results in pips - that might be a result of privacy or to attract novice traders better (so they are more motivated to learn the fashion. OMG he created 160 pips! 11)

If you are not through babypips college (yes, go to babypips and read that direct from beginning to the end), then this is how it's done to shed 1 percent: Firstyou look at where you put your stoploss by a POSSIBLE entrance (not an entrance that's already entered). Then you count pips, then you compute 1% of your account for this amount of pips and ONLY AND ONLY THEN you put your order. Got it? Playing the same amount of per pip is harmful. What if your SL is a lot more pips apart, because a support line is a lill something or higher, are you risking 5 percent of your account now?

What I don't get in Forex, is that exactly what I tell you here is very very very difficult to filter through all the net. There is toooo much information. They tell you to not turn a winner into a loser, but how? Can they tell you how? I might myself write a Foreign Exchange guide a few afternoon and tell you all of the hows.
Did you know at all that you have to change the amount if units you perform ? Yes, every transaction is approached separately, distinct stop, distinct take profit, distinct lot size, different everything. In case your SL is facing a round amount, you better move it ! Less chance for it to be hit!

Dude, stock market is so much simpler. I purchased Nvidia as it had been 11.42. Look at it now!
Forex is different. Forex can give you control, control of your trades, control of your self. Can it be a become wealthy very quick thing? Yes it is, because 1% per day is near potential and because 1% per day is a HUUUUGE profit. Even in the event that you gain only 10% per year on your account regularly along with your account reads 7,000,000. You know that it's some mad money, right?

It's NOT possible to make it in Forex by a single commerce. It's NOT a lottery! You'll need to make trades over and over and over... And you need to win over and over and over. That's the reason it isn't a click and get rich item. Even in the event that you ride from the surface of the mountain before the valley of San Fernando, your profit won't be that enormous and you won't have the ability to afford all those valley chicks. And repeating that success will be impossible if you have no thought about trading.

Millions won't fall from the skies, but they are reachable. Be like Wall*e, slowly gathering small profits over time to eventually see lots of it in front of you. You are able to make it! We are not picking up trash and piling it up here, we are clear on this one here, right?

So much about Money Matters.
AgainI write it for myself and myself only.
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INDICATORS, SYSTEMS AND ALL THAT

How a good indior based signal system comes to life:
PA (Price Action) is trading based on pubs (candles), support lines, pivots, fibs, trendlines, stations. This is THE BEST WAY TO TRADE. It's much difficult for a novice trader to trade PA because: he hears a phrase wedge or a triangle, he starts finding them all over the area! Not enough time spent looking on charts.
What seasoned traders do: they include moving averages and other indiors on to their own chart hoping to mimic their design. While the signs are very near their Style, it's not the same. It adds additional mistakes, which all indiors have. Stochastics over 90, moving averages cross, input candles near, BAM, a loss.
NO INDICATOR BASED SYSTEM WILL EVER BE AS GOOD AS PA STRATEGY It's BASED ON!

Why indior established systems are good and why leaping from 1 indior established system to another is great: You will learn stuff. For example: if a single egy is based on breaking a previous high or low while moving averages are crossed and a few indior is above certain degree, you will learn, that breaking of previous low or high gives you a certainty that the pair will most likely move higher, making you're able to make these trades with naked Chart, bars or candles just later. From every indior system your purpose is to take the best part of it. So, why remaining with one indior based signal system is poor? Imagine, there's absolutely no high to split, but the pair soars 100 pips at a type of a round bottom scenario. Can you miss the best opportunity of a lifetime only because your rule said: there is no high to break?
Individuals who know markets well (check out James16 thread), will laugh at you if you say: I didn't take the trade, because there wasn't any high to be broken.

Strive as many systems as possible (use LFH offline trading simulator, to speed things up), and learn price action from it.
Buy the book Stikky Stock Charts and read it! There's image on every page and lots of drawing exercises. Yepp, learning PA with coloring books, lol!

You objective is to take from everything you tried the best. In one system you might learn how RSI acts, in additional Stoch, in additional CCI. There's more to RSI than 70 and 30 levels. There's a 50 level!!! Wheeee!! It was a joke. You can plot lines on RSI, you are able to spot divergence, and if you know it's defects (divergence in strong trend), you will simply improve yourself. You then use MACD system and learn that, then CCI. Do as much material as possible to understand markets.

Many (or many ) give up here. They begin believing no system functions and provide up but they overlook the big picture: they never knew these systems would not work from starting on and they're unaware they learned a lot, most of it . Those that realizethis is what it was about:

The timing of settling down with Price Action. You will find peace and calmness, that's the end of a long trip.

I also want to say, there's not anything better than a fantastic instructor, whom I have never had. He would have been able to teach me Currency Market at a month, because he knows what works and what does not. He would have showed you that transactions to take and which to not. I'm against conventions and , try to find a personal relationship with someone who trades for a living, so that you guys can meet and sit at the same computer and he'd show you all of the dark secrets (haha sounds like fine plot for a gay San Fernando Valley film ). It might cost you a whole lot of money, but it will be less expensive than starting with Currency Market with actual money from starting on...
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THE MOST IMPORTANT WORDS

Trading is a 50/50 game. There's always a chance, that the price first runs contrary to you until it resumes in your direction. Did you know, that the higher the win rate of a trader, the less money he makes?

Read it . The more you win, the less money you get. For a very simple man, it isn't straightforward to understand. Did you know that by blowing into a tube, it is possible to really suck items in? Do not know what it is called any more, hydraulic paradox I figure. . .or every time a fat girl is running outside, her weight is really larger when going? Funny, huh? Blame Einstein for that.

What I am trying to say, is winning in forex is a paradox. I feel like I'm still losing money, but nevertheless my account constantly grows.
Those hunting high win ratio are simply letting their losses operate in hope price comes back and if they're two or three pips in profitthey close the tradethey cut their profits earlier, to prove to themselves that they've won. What a statistical mistake! Each single trade is meaningless! Profiting in Trading is to be seen as a statistical average. You need to win money as time passes, not on single trades. The whole purpose lies inside.

How to be profitable: trading is a 50/50 game and it shall remain so! Do not alter the 50/50 for your prefer, it won't work. Now, once you're in a losing position, simply lose, don't average down, simple let it be a loser. When you are in profit, let us state it reached R1:1, ADD to a place, a smaller than original position dimensions. Average upward! And let it ride till you've twice as much as you were willing to lose. Don't incease your risk, if the situation is moving against you. If from starting on you were willing to eliminate USD100, then after averaging upward, should you unrealized PL shows -100, you close. And don't be upset about it, when the price goes against you, then the whole idea to trade that direction was incorrect and the actuall commerce was a loser from starting on. Simply find a new sign.

Quite simply: When you're wrong with the selection of direction, let it be a small failure. Remove your position, once you're wrong (by SL or from hand (plogical SL, for experienced)). When you're right: the market moved your manner, add to a position to create the winner larger than the failure.

Getting your wins twice as big, you will only require a 33% gain ratio to be at break even!

Read these brief words . Those are the most important words you will hear! And they don't come from me! It is my interpretation of the book Reminiscences of a stock operator. Read the words , in them lies the key.