Pips in wheelbarrow - Trading FX profitably
- Thread starter Galts Gulch
- Start date
Because deep pockets can become empty pockets. Has happened before, and will happen again. Even professional investors have gone bankrupt, holding to a trade when the market is against them.
It is better to take a small cut and quit, than to face a blow of the axe. A good example is of Hunt brothers. Though not exactly a martingale trade, the Hunt brothers, managed to corner the silver market accumulating Silver from 6USD to a peak of 48USD and holding approx. 1/3rd of the world silver market. But when the exchange changed the rules of carrying forward contracts, they faced margin calls. Their inherited fortune of 5 Billion USD was reduced to less than 1 Billion thereafter.
In short, a trader should be humble. The market is ultimate, and one should never fight the market.
It is better to take a small cut and quit, than to face a blow of the axe. A good example is of Hunt brothers. Though not exactly a martingale trade, the Hunt brothers, managed to corner the silver market accumulating Silver from 6USD to a peak of 48USD and holding approx. 1/3rd of the world silver market. But when the exchange changed the rules of carrying forward contracts, they faced margin calls. Their inherited fortune of 5 Billion USD was reduced to less than 1 Billion thereafter.
In short, a trader should be humble. The market is ultimate, and one should never fight the market.
Till the time, some one can guide me with a way to attach those files ... Few more rules that I follow ... PERSONALLY ...
1. I trade predominantly 4H and D TF's. To trade 4H TF, I analyse and trade at 6.30 am, 10.30 am, 2.30 pm and 6.30 pm IST, as in these hours, 4H candles change on my brokers' platform. Then, if the conditions are good, might scalp on 1H TF at 7.30 pm IST. No NEW trades after 7.30 pm IST. To trade D TF, I analyse the D candle at 6.30 am IST, check if the same trend continues throughout Tokyo session. If they do, jump into the wagon with Euro Open. Why am I so adamant about higher TF's ... They are less noisy and polluted, offer transparent (more or less) picture, less stressful (I have to check my terminal once in 4 hours), gives my trades extra bit of time to understand and gel with the market and offer WHEELBARROW FULL of PIPS.
2. As I have 31 pairs (oooppss, I know too many) I go after ONLY the very best Trade-able set ups. That way, ROI is better, I'm cutting down on losing trades (I DO LOSE NOW AND THEN, HERE AND THERE), increasing % of winning trades.
3. On every Sunday, I look at all my pairs in reverse TF chronological way .. W, D and 4H TF's. Mark all those pairs who are at S/R levels on the W / D TF's. Prepare a (Weekly trading plan). Enter the trade on 4H, the way trends are on D and W TF's. And I follow this "weekly trading plan" very religiously and rigorously, without any compromises. This way, my week day trades are less stressful and less worry full as I already have a plan. If Plan A fails, because I have plan A, I will also have contingency Plan B ... So much to do? Did any one say Trading is easier than cooking?
4. I DO NOT READ ANYTHING RELATED TO TRADING. Yes. You read it RIGHT. Most of these so called analysts that we watch on TV, read in papers pay under the table to Media (for publicity) to get subscribers to their signals / analysis etc. Hips Might Lie (Shakira will disobey), but Charts do not lie. PA does not lie. PA is the king. Everything else is just accessory to know the PA.
5. Instead of Martingale trading, I use scale in and scale out strategies to bet more on winning trades. With a smallest sniff of a trade going wrong, I immediately close the trade for a small loss. Re Analyse and if the market agrees with me after some time, I re enter again. I never ever allow a losing trade to hit my head or my wheelbarrow of pips.
More, if some one wants ....
"Galt's Gulch is neither Just a Name or an Individual. It is a state of mind. Standing by what One feels to be Right ... Doing, whatever one does solely because of The Love of doing it, without worrying either the result or the repercussions (Karmanyava Adhikaaraste Maa Phaleshu Kadaachana) ... Avoiding Distraction (of all types) and Being One with Self Is The Way to Galt’s Gulch"
1. I trade predominantly 4H and D TF's. To trade 4H TF, I analyse and trade at 6.30 am, 10.30 am, 2.30 pm and 6.30 pm IST, as in these hours, 4H candles change on my brokers' platform. Then, if the conditions are good, might scalp on 1H TF at 7.30 pm IST. No NEW trades after 7.30 pm IST. To trade D TF, I analyse the D candle at 6.30 am IST, check if the same trend continues throughout Tokyo session. If they do, jump into the wagon with Euro Open. Why am I so adamant about higher TF's ... They are less noisy and polluted, offer transparent (more or less) picture, less stressful (I have to check my terminal once in 4 hours), gives my trades extra bit of time to understand and gel with the market and offer WHEELBARROW FULL of PIPS.
2. As I have 31 pairs (oooppss, I know too many) I go after ONLY the very best Trade-able set ups. That way, ROI is better, I'm cutting down on losing trades (I DO LOSE NOW AND THEN, HERE AND THERE), increasing % of winning trades.
3. On every Sunday, I look at all my pairs in reverse TF chronological way .. W, D and 4H TF's. Mark all those pairs who are at S/R levels on the W / D TF's. Prepare a (Weekly trading plan). Enter the trade on 4H, the way trends are on D and W TF's. And I follow this "weekly trading plan" very religiously and rigorously, without any compromises. This way, my week day trades are less stressful and less worry full as I already have a plan. If Plan A fails, because I have plan A, I will also have contingency Plan B ... So much to do? Did any one say Trading is easier than cooking?
4. I DO NOT READ ANYTHING RELATED TO TRADING. Yes. You read it RIGHT. Most of these so called analysts that we watch on TV, read in papers pay under the table to Media (for publicity) to get subscribers to their signals / analysis etc. Hips Might Lie (Shakira will disobey), but Charts do not lie. PA does not lie. PA is the king. Everything else is just accessory to know the PA.
5. Instead of Martingale trading, I use scale in and scale out strategies to bet more on winning trades. With a smallest sniff of a trade going wrong, I immediately close the trade for a small loss. Re Analyse and if the market agrees with me after some time, I re enter again. I never ever allow a losing trade to hit my head or my wheelbarrow of pips.
More, if some one wants ....
"Galt's Gulch is neither Just a Name or an Individual. It is a state of mind. Standing by what One feels to be Right ... Doing, whatever one does solely because of The Love of doing it, without worrying either the result or the repercussions (Karmanyava Adhikaaraste Maa Phaleshu Kadaachana) ... Avoiding Distraction (of all types) and Being One with Self Is The Way to Galt’s Gulch"
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