Good morning all

A warm welcome to everyone here. Hope you are all safe and sound wherever you may be.

Before I begin, I wish to let all readers well aware that the purpose of this threads existence is of positive intentions. So please respect the fact that Im here because im willing to contribute.

I do not wish to participate in any ego-measuring contest, babysitting, or downright arguments. No need to prove myself to anyone. What is offered is what you will get if accepted as is.

I welcome questions and I will answer your question if I find that it will also benefit other readers.

Unfortunately, I find the necessity for the above points mentioned as there is blatant amount of testosterone being thrown around this forum. There is simply too much debris amongst the vast number of posts and i cant help but wonder if our initial good intentions is getting buried amongst the junk.

Moving on.

Im a live trader. I have been trading live for 2 years. This is relatively short amount of time to be considered successful which I whole-heartedly agree. However, with all bias aside and after reviewing my trading strategy (which I happen to review at a constant basis), I can say with a degree of certainty that I will be profitable for the many years to come.

I have owned and managed import/export/distribution companies in my time, so it was no surprise when I phased into currency trading. When outsourcing overseas contact the foreign exchange rate plays a vital role as it has a direct impact on profit margin and the competitive edge. In a sentence, I had to forecast an expectancy of rise/fall in the price of goods in lieu with growth/decline of inventory demand. I had a constant tab on politics, and economics of both the country I reside and the country of our interest.

Exchange rate effects the overall operation of an import/export business. I have imported from surgical bandages, plastic bags, furniture, cars, electronics, sunglasses and much more. In the past, my company was outsourcing various types of surgical bandages from Taiwan to supply a number of hospitals. For a lengthy period of time, Taiwan dollar declined against the rise of Australian dollar. I did not focus on daily price changes but as long as I was buying bandages cheaper than the previous year I was happy. I was very content to see the price of bandages getting cheaper by yearly. During my tenure as the main operating executive of a large i/e/d company my main responsibility was basically buying goods as/when cheap as possible and continue buying them cheap or cheaper. Now when I look back I smile at noticing that all I was doing was following the yearly trend and the bandages I was purchasing before is now my positions in forex. It is an uncanny resemblance in my perspective.

Moving on.

Thank you for your interest so far. Hope my life stories haven?t bored you however I find it necessary to reveal enough of me even though I feel exposed. I must admit im slightly reclusive and coming this far is out of ordinary for me.

Running a business has its ups and downs but the difficulties I had when I first started with forex was a completely different stress on a different level. At least in a business you have a reliable counsel in which you pay for advice however in forex there is advice everywhere and most of them completely free. Whenever I hear free advice I make sure my credit card is tucked away and my scepticism turned on high.

When I started in forex, I sought after the most expensive advice. It?s a habit that has grown on me. After all I could receive my forex trading was nowhere profitable. Capital wasn?t a problem for me so I started off live trading as soon as I worked out the buttons from demo. I kept my lot size relatively small.

From what I say might be already know to many and the obvious however traders fail cause they don?t action the obvious. Smoking kills, then quit. Action the obvious.

I quickly compiled a list of things that didn?t work for me:

• Indicators, especially moving average crosses that indicates entry/exit.
• Divergences
• Smaller time frames
• Advice from forums
• Advice from mass media

There was just too much information for my head to get around. I nosed around from forum to forum, post to post, looking for the perfect set of indicators that gave me entry and exits. Then I knew entry is not important.

There are no guarantees in life. You can never control your future but the future will control you. With me, I find the indicators/systems more obtrusive to the clarity of the bigger picture in forex. Im sure there are many successful traders with the perfect set of indicators tweeked at the best setting possible and you have my respect for something that I couldn?t simply accomplish.

I wasn?t in a rush to make money as I already have a very comfortable lifestyle. The most likely reason I didn?t give up in forex was probably the resemblance to what I do at my own company, which in return gave me confidence.

I stopped looking for daily/weekly profits. Traders focus too much on instant fulfilment. I also stopped using stop losses for most part of my trading. During my unsuccessful periods, I find that stop losses confirms my loss and just giving money to the brokers. I still use stop losses (sometimes) but they are much further apart. I can do this cause im comfortable and confident with my trades.

If I asked you, ?lets play a game. Everytime you roll this dice, you need to pay $100. This is the reward: you win $1000 eveytime you roll 6 and lose your $100 on 1,2,3,4,5. Would you play??

Some will say no, cause they cant see the bigger picture. Looking at indicators probably forecasting the next 2 or 3 throws.

Smart ones will say yes. Obvious reasons. But, how long will you last? Can you handle streaks of 20 or more losses? Perhaps you have the will to handle the stress but maybe not the capital?

I found my dice game. It wasn?t in any forum or paid advice. It was just doing what I was already doing in my business.

Moving on.

My contribution wont sway many traders and it will be interesting to watch how this all works out. But if you are open-minded like I was when I first traded, then you too will receive a blueprint to a trading plan that guarantees to be beneficial of enormous proportions.

Currently, I’m holding a number of positions across several pairs. This is live trading (all numbers/dates are approximate so please don’t hold it against me):

*All my positions have always been 2 standard lots each.

• GBP/JPY – 14 positions; 4 surviving from around 160.000, August 2009. 8 surviving from around 155.000, August 2009. 2 surviving from around 147.500, January 2010
• EUR/USD – 21 positions; 10 surviving from around 1.46600, December 2009. 11 surviving from around 1.41100, January 2010

I do have other positions however not as large as above. You can work out my profits if I closed them now. Also this is all profit as few of the ‘legs’ I have closed out in the space of months, which covers most of my total losses in establishing these positions.

These results are far from impressive however it pleases me greatly to know the return on my initial capital.

When I mentioned ‘the obvious’ and traders not following the obvious are this: The only thing obvious about forex markets is the trends. It pays you or destroys you.

For me, monthly trend is the main trend. I tend to look at last 1-3 years of movement.

My main and primary objective is building a pyramid of positions in lieu with the main monthly trend of the previous years. I enter from daily charts under guidance of weekly trend at market open (asian) and hope that the position survives the fluctuations of the day and transforms into another leg on my equity millipede.

More often than preferred, the daily position does not survive the price action of the day and most likely end up as a –30 pip loss (this is based on eur/usd). This does not worry me as im most interested in movements that start from the beginning of the day and charge forward following the intended weekly/monthly trend. Also it is comforting to know with a degree of certainty that when I decide to conclude all my positions after maturity, just a few of my bigger legs from my equity millipede will cover losses and the remaining as profits.

I do not care about ‘moderate’ small losses that occur when trying to establish my positions that will survive. As long as I do not try many times in one single day (and this is very important). This is also similar to my business, as I need to order an inventory before sourcing out distribution. Taking pain for gain.

If today is going to be a bear candle then whereabouts is the higher price? If we are in a downtrend (which is also in lieu with down weekly trend) and (unknowingly) today is going to be another down day. THEN tomorrow when we look back today, where is the most likely place for a position to survive?

It is at the near the top… Near the open of the daily candle. This insures that you catch the major move of the day + highest probability that the position will survive the pullbacks of next day (and the next 2-3 years hopefully).

A position that survives for extended weeks, months turns into a tremendous profit and you will be very pleased that you risked a very small fraction of its gigantic return to establish that position. I cant help but smile.

You need to allow the time for a caterpillar to turn into a butterfly.

As mentioned above, I do enter at the very start of market with a hard stop loss. Also I have a very simple 5,10 ema moving averages to give me clues on the strength of trend and the likely hood of mass traders entry. I despise any system based on sma/ema crosses but I would like to know the strength of the move by looking at the space between the moving averages. Also a 200 ema as a long term moving s/r and that’s it for my indicators but I have few more tricks for entries.

Moving on.

Amazing, i just spent good 30minutes typing the next post and the site went down and it has perished in peril.

Continuing on with the entries.

Entry is discretionary however I weigh the importance of the survivability of a position as most important which is near the top of the daily candle in a weekly down trend or bottom of the daily candle in an uptrend.

My hard stop gets hit often and when they are hit this signals for me to watch the market for another re-attempt. I will do a maximum of 2, 3 (rarely) re-entry per day and this is based mostly on support/resistance, reliable price patterns, and breakouts. Price that needs to be broken out is my favourite. Although I will go with the flow, Im biased towards my main weekly trend. Hopefully when you are ready to trade, you are efficient with the usage of support/resistance, few reliable price patterns and know the difference between a good/not so good breakout setups. This is entirely another story and you will need to do your homework.

I have had few positions placed on same day that has survived nearly a year. The price never came back to its entry. However, I will never try too hard to get a positive position in every day because most positions that does survive a day might not survive a month, or even 2 months. Can you handle that? Losing streaks of 20 or more.

What i say next will be interesting. Even though I had satisfying trades with great result I was looking at ways to enter more because I thought more positions meant more profit. However increased risk doesnt necessarily increase profit.

Once again, I scouraged the forums, magazines, and few seminars for another method. Back then I thought more methods meant more positions which hopefully meant more profit. To be honest, I find forums to be more stressful than the market itself. This endeavour cost me alot of unnecessary money. I stopped searching and just continued what was working.

My step down from a trader to a searcher gave me a full scope of the frustration and the struggle as I can test both sides of the world. Things are overly complicated than they are. You need to stop listening and throw out that guide book. Fortuantely I had it easier as I had alot more than necessary capital and a business that secured me financially and also taught me to be a trend trader before even stepping foot in the arena.

With all honesty, forex trading is simple. You can ask million questions on the forum and get burned, ravaged by the poster after you till no end. Stop, calm down, listen, and look for the obvious.

Moving on, and nearly at the end..

There is more to it than the bulge. I believe this was one of the lines i used when i was dating my wife.

I say the same here. Even though my posts lack any charts, defined set entry/exit points, but there is definitely more here than the bulge. And all this is definitely a trading strategy nonetheless. For the intellectual traders they will pickup how/why my method works. It is obvious.

I feel no loss at sharing but disappointed after reviewing my posts that i may have not conveyed my strategies properly in depth.

However I do know that most searchers are looking for a system with numbers telling them what to do and less words. They wish to think less, but ironically you are at the right place.

Moving on.

Good morning all

It is a beautiful sunday morning here.

Looking back at yesterday's posts; I have covered my main trading principle and my entry strategy. I would like to touch base on what you have read so far and hope to give you a different but positive look at what I meant.

1. Position trading
Position trading is as exciting as intraday, swing. I find it much more exciting. Majority of traders are seeking the rush to be in the action constantly. They like to execute orders, close orders with profit, make an excel spreadsheet and enter their weekly profit, log into forum and boast their demo accomplishments and henceforth. And to add further damage, keen avid new traders will soak their comments and 'adapt' it. Now at the end of the day if they both find success then it was all worthwhile but you will find them sitting here behind their so called 'already known and preached principles' just garnishing in attention but not necessarily contributing positively. Call me cynic or realist?

Position trading has some of the best risk:reward. You actually risk much less for a greater reward. Yes, we do not execute as many orders as some new traders would prefer but if its excitement these new traders are all looking for then it is very exciting to see my legs on my millipede grow as the time goes. Once you shift your trading to 'longer' time frame you will find trading less stressful and more meaningful. And please dont stay on demo too long. You make progress but also in parallel you are growing a set of habits that will be a big surprise for its inefficiency once you start live. I have tested both sides of the world.

Also, I believe there is a common belief that position trading requires alot of starting capital. I was planning to address this on a separate post however will address it here. NO, you dont require a large starting capital. If you want to know, and if i were to suggest for the new traders;

USD $5000 for 4-6 positions @ $1 per pip (0.1 lot size)

The above is very realistic and very achievable however dont quit your day job yet. Try and keep a few thousands dollar in your savings account for backup and most importantly psychological safety.

Example of a common scenario;
You wait. Then you wait some more. You notice on monthly chart that gbp/jpy is dropping going down (its not hard, you look at last 10-15 candles preferably or less), you switch to weekly and see that price is above/near/just below the 200ema. I prefer the price to be somewhat 'near' to the 200ema. You enter on daily chart at beginning of market with hard stop loss (this is not a golden rule and as i mentioned in earlier posts, entry is discretionary) or do your homework and work out a low risk entry somewhere 'near' the open.

Moving on, if this position survives the fluctuation of the day, move the s/l to breakeven on the following day. You now have a leg on your millipede. BUT, you will find that often this hard earned leg will die some days, weeks later. I will be very suspicious if a leg dies months later... Something has gone wrong with the main trend. If you enter in a good trend you improve the chance that the leg will survive. And we like our leg soldier to be breathing and working for us.

Do this until you have 4-5 legs and preferably stop adding. Let time go past.

6 months later..

You will find avg pip per position will be 1200 (hypothetically)

1200 pip x 5 positions = 6000 pips. $1 per pip will be $6000

However, $6000 wouldnt be all profit as you definitely had to endure few small losses trying to establish your positions. Lets take off 1500 pips which is alot more than probably required but hey, this is an example.

So total net profit will be $4500. Hmmm... that would be almost 100% return on capital..... (in 6 months)

And this is a very sensible estimation

Im planning to close out 3 of my legs in gbp/jpy if it doesnt continue downtrend on weekly in the next week or two cause i dont like the looks of the current market. Weekly downtrend from the beginning of the year was not even great. And even in poor trends like this.. it is very profitable

Probably close out my medium sized legs; 3 positions x 1500 pip = 4500 pip total @ $20 per pip.

I entered all 3 positions in the space of 2 days and was fortunate enough to catch an eye-popping momentum (this could also be another 'way' for you to enter). I had zero loss to accumulate these 3 positions. My risk:reward? Could have added more but then again..

I will be pocketing $90000 for 6 months. Sometimes I wish I was 20 years younger doing this...

Sorry deb..

Get the gist?

Moving on.

Good afternoon all

Hope you are spending time with your loved ones. The older I get, I find the bond you have with your loves ones are so very important. It is not the waterfront penthouses, fast cars or victoria secret model girlfriends but the sentimental links you preserve with the ones you dearly love and care. There are plenty of times when money does come across relationships but manage them well and keep money out of equation as much as possible.

Continuing on with my previous post. Today, we were touching base on what I posted yesterday. Point 1 was about the importance and the power of long term trend trading (position trading).

Now for point 2.

2. Entries

Yesterday, I mentioned in my post that I open a position at the start of the new daily candle (which for me is open of asian market, 9am sydney time). I believe the common myth about trading the asian market is a big no no. Some of the reason why traders will avoid asian market is that most movements happen during UK business hours. I agree. I would also agree more if I was a pure intraday trader looking for great bursts of momentum or a 5 minute scalper who needs the participation of the greater number of traders. I consider myself standing above all this (in a non-egotistical way).

The most important thing to position building happens from entry. First you must be sure about the weekly trend. Its very simple. Open weekly chart and see what happened in the last 20-40 bars. Moving down? Then its down. Moving up? Then its up. Weekly trend is not going to change just because you finally arrived at the scene with a demo account. Please get over it, you're not that big.

All im interested is the 'area' of the daily candle where the chance for my position to survive not just todays price action but tomorrows and hopefully for the next 2-3 years. We want price to never come back to our entry. Where do you think this will happen? It will happen near the open of the candle. But sometimes the movement is so powerful that on some days any position on any area of the candle would have survived. Consider them a huge addition to your profits. With practice you will know with a certain degree of certainty when these candles will occur

These days I continue to enter at the beginning of each new daily candle but not all the time. Experience has shown me that some areas are already 'exhausted' for any new legs to be created. Something like this just comes from experience (and good reference from weekly charts). There are no set rules.

Furthermore, some days I will use a hard stop 70 pips for jpy cross or a 30/40 pips for eur/usd but some days I know that stop loss is not necessary. BUT I will put an alert in my mt4 to message me instantly to my cell phone at extreme movements. Situation varies and so does my actions.

Occasionally, when I choose to monitor a uk session and I see a great setup forming. I look at s/r, trendlines and will enter at a minimal risk and as soon as it moves positive i will move my stop loss to breakeven and walk away.

My favourite is areas where price needs to breakout. This is an obvious statement, and yet alot of traders dont action the obvious. Price doesnt want to breakout but needs to breakout. I will go with the eventual flow but im biased towards main weekly/monthly trend. I request that you look into breakout.

If I were to give a hard advice for the intraday orientated traders is to buy when the price is above todays open and sell when the price is below todays open. This way you are in line with the trend.

Intraday movement doesnt interest me. What I am interested is the open price of the daily candle.

Conclusion is that I enter on the open of new daily candle towards the main weekly trend however, i do look at 5/10ema to see if the price is sensible and whether it is a new momentum or phasing out/retrace. I also keep in mind s/r and trendlines but do not entirely focus on anything particular. One thing I want to be damn sure is my main weekly trend.

Cant explain it any further, you must do your own research from here.

Entries is like learning to swim. You need to practice and one day you will realize that you were so much better than few weeks ago. It will come to you.

Moving on.

Good evening all

Thank you for the warm remarks. It makes the effort worthwhile.

There are terrible events happening across the globe; environmental, political and biological. Let us not forget that we are fortunate individuals to have an opportunity to even discuss matters like forex at our leisure. Unfortunately my children will never grasp the full scope of their fortunate existence as they never had any insecurities.

Hence, you will never forget your learning phase in your trading career. It will outshine in your memory everytime you open your platform.

It is now Sunday evening and I must admit I have enjoyed contributing to the forum this past weekend. I feel obliged to help traders as I also received such unconditional help.

I have yet to explaine other subjects like; money management, psychology, exit options, mid term exits, profiting short countertrends. And I will re-attempt on another weekend.

Till then stay safe.

Graeme

The power of participation.

This is my next subject. It flows concurrently with my points on entry. In my previous posts I have explained what I perceived as the reason why entry is important however it shouldnt be the only focus of your trading.

Alot of traders tend to focus 'pinpoint picture perfect entries' and 'razor sharp profit producing exits.' My personal take on entry is that as long as you clearly define the main momentum and have the ability/skill to see where you currently stand in that momentum this will give you the first reasons to why you should enter/exit. You need to read the road signs.

I understand entry/exit plays an important role if you aim for constant 80pip take profit with 40pip stop loss. You are looking too closely. Take a step back. What you conceive as 80pip profit is only a ripple in the ocean and you have just stopped yourself looking at the bigger picture and settled with just entree. Unknowingly you might still be focusing too much on todays profit or this weeks profit.

You are forgiven for sloppier entries when you start but as long as your position is towards the main trend you are already in good shape. Entries will improve over time. As far as entries are concerned, we want minimal risk entries (do your homework) that will give that position an opportunity to reach its full potential hopefully 8000 pips later.

And you will reap exponential rewards if you let it happen. Nobody knows where the market will be heading and this shouldnt hinder you in anyway. You need to participate to what is happening. You need to be in the market to make it happen. If its up then BUY, if its down then SELL. Yes, you have heard it before but do you know what it means and how to implement it?

Every month I receive an email from my regional offices showing me how much it would cost to buy another 100,000 units of a particular good to be imported. I take three looks. One look at the current price i need to pay and two looks at previous prices i paid before which is price one month ago and price one year ago. If its cheaper I place an order and sign off on the cheque and thats that. If its not then I dont. Then I dont sit there and twidle my thumbs and look exasperated. I ring the appropriate regional office and tell them to try export more of our goods to that particular country. If this blip of price fluctuation continues for months then I would shift my operational views with that particular country from importing to exporting.

I request that you think about my story. You might learn something.

Currently I have bundles of positions. Just like my business I categorise positions accordingly even though they may be from same pair of currency. Each bundle is different to each other and I treat each bundle as each individual entity. As long as that particular bundle exits completely with profit then its mission accomplished. I have bundles of positions that are sell and bundles of positions that are buy. They are not offsetting each other as you might perceived to be. Yes they may be from the same capital pool but I treat them as two different scenarios.

To help you understand, in some weekly trend, you will find that there are corrections. And this correction can last from days to weeks even. Even though last 8 months was down, the price right now is telling you up. Go with the flow and participate. Be in the action. You can speculate on the sideline with your certified indicator/system or be in the game and bring home the trophy and the prom queen home.

Review a week or two later (or more preferably) and you will see that your new legs becomes a solid profit making machine. This set of new legs is a different group to your main group of positions on the main trend. Keep your bias on the downtrend as this was your main trend for the last 8 months but you will have opportunities to make profit on the correction. Just like my export and import business.

Once the trend resumes, your main group of positions will continue producing profits and you have opportunities to add positions to this group once again with greater probability of surviving.

When I comeback from my dinner arrangement I will try and answer the PMs you kindly sent. Thank you

Moving on.

Good evening all

I like to mention something that should be the basis of your thoughts when you read about a system/method.

Many system/methods that claim xx% win rate concerns me on several factors.

First, how did the poster arrive at such xx%? I have seen scores of systems that claim anywhere from 50% to 90%. Some even lower. To justify any short expectancy the poster will then quote their r:r to prove that their numbers show profit. Profit is not the problem but the reliability of such numbers.

For example, there is a popular game called baccarat at most casinos these days. Its a simple game where you either bet the banker to win the next round of hand or the players side. Basically a coin toss but much more elaborate. I happen to have extensive knowledge in statistics (especially in gambling) and nothing below is conjured. This is hard facts.

In regards to the odds,

If you bet on banker to win, then your chance of winning is (roughly) 49%
If you bet on player to win, then your chance of winning is (roughly) 49%

When you win, they pay you 1:1.

Bet $50 on banker and you won, then you receive your $50 and then your win of $50. Total $100 back

So, either side you place the bet you are on the losing side already because you are not 50%. This is possible because casinos implement rules such as if banker wins on 6 then its only half win or other various small measures. These small measures ensure the casino to always have the upper hand and win rate of 51%. SO the difference is 2%.

Even though casinos only make 2% of all gross bets they still make millions every year. This is possible because the turnover of hands is quick and in the tens of thousands per day across dozens of tables.

Now that I have your mind thinking. Lets go back to our example.

A system posts 50% success rate and recommends risk/reward to be 1:2. This is still fantastic. If this was possible in casino, it will shutdown in a day.

So it looks good on paper, but here is where everything goes wrong. According to the system rules you could only realistically enter 10-20 times a week. Could be more but this is just example. To achieve this you need to consistently watch the market most of the time and be ready to execute your order. Now all this is fine as long as it works out at the end. BUT do you know how many 'rounds' of investment is required to prove such edge? It is in the tens of thousands. You actually need tens of thousands, even hundred thousands to prove an edge. Because the paramater is infinite you need to burn thousands of rounds to give a hard number and consider it as the edge.

The fluctuations are huge. After 500 'rounds' you could be well into profit but another 2000 'rounds' later you find yourself minus. Smart readers are already aware of this and implement sound r:r. But please take a step back and ask how long did the poster really try their system before posting on forum. They claim 50% win rate from what? 6 months of live testing? 40 attempt a week? That is still only 1000 times. You cannot claim that you have a system that works 50% of the time with results after only 1000 tries. Unknowingly you may be more or less gambling in the markets.

Fortunately, if the same poster turns out to be a successful trader. His/her success will be the result of having a defined edge in the market and the other saving grace will be their sound r:r. But what they will find (if they adhere to the same system for 10 years) is that the claim they made 10 years ago about the win rate wasnt even close (and unnecessary). They may be profitable after 10 years but it wasnt the success rate but their personal edge in the market. Something to consider closely.

You only need to be sure of only one thing in the market to make money.

Moving on.

I would be more inclined to agree with you.

Im sure there are successful traders doing well on shorter time frame however we can all do just as well and even better with longer approach.

I dont understand why traders shun the idea of long term trading but it is probably because they are looking for immediate solutions to a riddle that has existed for centuries.

Unfortunately, my method will not be favourable to many new traders with boiling young blood. Hope they are persistent enough to go around the block few times and then re-evaluate. Youth and money dont go along well.

Majority of the readers here unfortunately need a new perspective, not necessarily needs to be mine but hopefully from someone who is genuinely doing well and is here to unconditionally add some new perspective.

Most trading system threads starts off with set of pre-defined entry and exits. My method doesnt and it works very well for me.

I have closed one of my bundle of positions on usd/chf.

I personally called this group uc4s and it is one of the smaller groups that I currently hold on this pair.

I started adding positions into group uc4s around first week of june, from 1.15000. Not all on same day or same week.

From june there has been a very good down trend. I was little hesistent at first because april, may on weekly/monthly chart has been a bull run. BUT I took emotion out and went with the flow. I entered with minimal risk and see what would play out. I kept my bias of the downtrend as usd/chf has been down on monthly chart since 1999!

I had a small group called uc3s that took small profit of the 2 months bull run of april and may. Closed out on 3rd week of june.

Coming back to uc4s, I was adding positions very successfully. I hardly had any loss. It was just straight down. If any traders in the last month decided to intraday trade and had any orders for buy they probably had tough time pulling the rabbit out of the hat.

I exited with 11 positions @ 2 standard lot per position, around 1.05100. Its fair amount of money. I kept 2 of the larger positions and moved them to group uc4b and hope they survive for the next 2 years.

One of the reason I closed was the support around 1.04900 and what I consider to be an exhaustion of sellers.

Get the gist?

Moving on.

Good evening all

Thank you for your interest so far. I know there are alot of information from my posts however i find them all relevant. Most likely you are an experienced trader and already know many of the points I illustrate. Hope you will appreciate my efforts at trying to pass on a method that works so well for me in a way that will make you think and adapt to its potential. Im trying to draw a blueprint of my method in your thinking procedure.

My previous post was about my mid term exit on usd/chf. Although I shun the limelight I found it necessary to reveal my exits/profits as this will eventually flow into my next topic: mid term exits.

There is nothing special to mid term exits. You could consider them as locking in the profit or I will consider them 'managing my positions.' Some may even consider as money management but I would like to consider it as position management. To me, position management is simply, managing the set of groups of positions that I control so that I can diversify the reward. Ofcourse I prefer my positions to run 2-3 years for 9000 pips per position for a stupendous return but some weekly trend can change after a year or less. However I can control the flow of the reward and keep the capital balance and equity both increasing.

I exited 11 positions for a large increase in my capital balance and holding 2 of the larger positions to ride the huge monthly trend that started from 1999. This will be my main big group. As you can see Im diversifying my reward.

If the main downtrend continues after correction I will start building again and after an extended period of growth, I will diversify the group by closing few legs to ensure my capital balance keeps growing and moving some legs to the main big group above for a long term growth. This smooths out my equity curve.

I wish I started doing this since 1999 on the usd/chf when the monthly downtrend began. The payout would be in the millions. But its never too late in forex.

Currently I hold $100K+ worth of positions in gbpjpy. I will diversify very soon if price doesnt close below 131.280. But it doesnt matter if it does close below I will most likely still diversify the smaller group for an increase in balance and move any legs to the longer term group in gbpjpy. My main group started mid last year around 159.000 and current price is about 133.500. I will diversify and move remaining legs to this big group. This downtrend of gbpjpy started from mid 2007 and i only joined mid last year. I dont feel missed out in any sense.

$100K+ worth of position is all profit because I was able to diversify earlier this year which covered all my losses. Returns like this is only possible cause I respect and follow the main trend.

Moving on.

My starting capital was 6 figures. However my capital never went -10%.

I can assure you, large capital is not needed. I have a good example on first page of the thread.

What you will realize is that most short term traders aiming at 1-2% increase per week can also be easily done by entering at a low risk and letting the position grow on the trend.

good question. I will pm you with my reply as I would like to keep the intended flow of my explanation continuous without jumping foward and backwards.

yes i will soon. thank you

Good question and unfortunately this will be last for today as the day has taken its toll on me.

Even though im trading from one large capital pool i treat each pair of currency as individual investment project (in my words). Im well aware of the correlation between pairs of currency however it is something that i will neither focus nor ignore. I follow what the price is telling me and sooner or later the market will justify my actions accordingly. As long as my risk is covered I will let the market be the judge. But yes sometimes i do hold positions concurrently in same direction but are negatively correlated pairs only to find the market will be a fair judge.

When i mention diversifying my positions; I meant the diversification of the already existing groups of positions within that particular currency pair. The sole purpose of the diversification is to smooth out my equity curve.

I have noticed that you have interest in hedging. I dont know where your views stand in hedging however what would you say if i have groups of positions that are both buy and sell on the same currency pair? Will you also advise me that all im doing is offsetting each other?

Please dont take my questions as any form of disrespect as its not but perhaps trying to help you form a different perspective.

Good night all.

Also I would like to mention that the last 4 days definitely has taken its toll on me. I will try and complete my posts relatively soon.

Hello mlambole and other members of the forum

Good question and my reply will be important.

I cannot predict any 'intraday' movements especially the next 50-70 pips of movement. Certainly not from indicators and not in my focal/thinking capacity. Also I consider myself a bigger person (in a non-egotistical way) than to be sitting in my leatherbound chair and pondering where my next 50 pip opportunity is. My intentions are different and it is important why.

As long as I enter the market and participate, I could be either buying or selling on the same currency pair. I let the market decide my actions.

My job is to enter at minimal risk and let the market show me its intentions. Entering the market is something everyone needs to practice on. It is a quest that you must complete.

For me, I have various entry methods that are now second nature to me. One of my favourite is breakouts. Areas where price needs to breakout. And when it does breakout I will go with the flow of the mass. I request everyone to have a look.

Usd/chf had a bull run in april and may 2010. Around first week of june I started noticing that my newly added legs for the uptrend was struggling for survival. But before I even noticed this I was already entering buy and sell from the 'market action.'

As long as I do my job of entering with minimal risk either buy or sell I will let the market be the fair judge. You will only notice the bigger picture of the market after a period of growth on your positions. As long as you have controlled the risk, let your positions work for you.

From 2nd week of June it was obvious that the trend has changed when support was broken on the daily chart. It doesnt matter if trend didnt change cause I will diversify my holdings around that period of time.

It was group 'uc3s' that held positions on the uptrend of april and may. When I diversified this group, I closed out enough legs to ensure my capital balance has increased from this 'minor' endeavour. My profit was more or less around $22K. Then I moved 3 of the larger legs that I did not close out into a new group that I called uc1b to continue fighting for me incase this 'april, may uptrend' is the start of something huge.

Unfortunately, group uc1b died in action (only recently) with breakeven. They had a good fight but the main monthly downtrend since 1999 was just too much for them. I have no remorse at their departure as I got hundreds more soldiers on the battlefield.

Moving on.

Good day all

Something I appreciate more as I get older is the beautiful weather and how it plays on my garden. Today is one of those days. Just before I head out for a lunch appointment I thought I tell you a story about myself.

Everyone has vice. I dont smoke, drink heavily or chase tail however I do collect comic books. My favourite is superman and Im an avid collector. There has been an occassion where I actually attended an auction house overseas to bid for a prized number in the series. In this trip I befriended a collector who had a wide interest and has been very successful in his field. I welcomed his friendship and attended few of the auctions with him.

What I noticed at the time of the auction was that he was buying quiet a few pieces of antiques. I dont personally see the point of buying a marble head of a roman imperial for $600K even if it was 1800 years old. We were obviously not on the same level in antiques. He looked somewhat disappointed when I bid $5000 for an egyptian jar apparently few thousand years old but I must admit I only bid cause I got carried away. Luckily it went under the hammer for much more. And it wasnt a jar but some important washing bowl..

Anyways, we had few quiet drinks and got to know each other alot more. Our common grounds was that we were both traders. Trading different instruments but traders nonetheless. He continued telling me that his trip was not only about buying but also selling. From what he was showing me, he had sold few millions of antiques the last few months and his trip is just about to conclude. I asked what he considers to be the important aspect of his success and he said it was nothing but just buying at reasonable price and holding cause he knows that antiques of this calibre will only rise in value. Not all of them but most of them and he knows which ones do.

He noticed that I wasnt talking much and he returned the same question to me. I replied, 'wilson, i do the same as you do..'

Are you a trader? Then be a trader. We buy items to hold indefinitely increasing its value. The whole purpose of a trader is to buy something cheap or reasonable and selling it later on for alot more. Thats what I perceive as a trader.

Moving on.

Hello chonghm & carolco

Swap rates shouldnt hinder you. Swap rate is something that I neither forget nor ignore. What you need to acknowledge is that the numerous positions you hold will grow 'exponentially' for you the longer you let it. You need to grasp this concept.

I can also reassure myself that the bundles of positions that I hold in other curreny pair which rewards with positive swap balances out the small loss I incur in negative swap or the fact that my exponential growth in equity will outshadow any miscellaneous costs involved in the long run. Swap rates remain static however the growth of my equity is growing exponentially. Of course swap will play a vital role for a trader on short term, eroding away on their hard earned small lots of profits. And unfortuantely they will be discouraged to trade such pairs which is quite disheartening to see.

You need to be become a bigger person and not let things like this hinder your actions.

Power of growth starts from your participation in the market. The trend of the market will grow your equity to new dazzling heights. And that is where your focus should be.

Very good question indeed.

P.S Im not aware of a a system/method called turtle. My contributions here are all personal.

I appreciate the warm remarks. It makes the effort worthwhile.

Yes, I dont mind the notion that im an investor however im also a trader + collector. And I collect healthy positions that will work for me. I collect comic books and collect positions in the market.

Dear all fellow traders

I have spent considerable personal time to relay my thoughts to the general public as concise as possible. Even though it is unfortunate that it is commnuicated through a public forum where the scepticism is naturally high. I request that if you appreciate my efforts to please consider a read from the beginning of the thread as the flow of my explanation was all planned out before starting the thread.

Sincerely,

Graeme

Excellent question.

Please click my profile for my broker. I believe you cant recommend a broker publically in this forum? My broker allows hedging on same account.

Daily candle open for me is 9am sydney time. Start of asian market. I dont have any ea.

Graeme

Welcome all and the newcomers.

So far I have explained in my posts

1. Benefits of long term trading and its potential reward
2. Starting capital
3. Importance of low risk entries and my recommendation on entries
4. Power of participation
5. Entering both buy and sell and how it benefits the trader on the long term
6. Diversifying groups of positions to control the flow of reward

We have come a long way.

Topics left,

1. Required thinking process to be a long term trader
2. Emotion control

As xman has previously requested I will soon organise some charts for a better understanding of my thinking process.

Trading system/method is so much more than just when to enter and when to exit.

It starts from your perspective.

Moving on.

Thank you for your correspondence.

Im glad to hear that you have an open mind. Please keep your open mind for me as I will try and describe something to you.

When you fully hedge 2 equal positions you are offsetting each other and nobody can argue with that fact. I agree that you cannot squeeze water out of a stone. However you can hedge completely when the market goes against you to stun your loss. This is completely different story.

But there are also other sides to the story.

I enter what the market dictates.

January 1st

1. Monday - enter long because price pattern at support. Move sl to BE
2. Tuesday - enter sell after inside bar. Move sl to BE
3. Wednesday - enter sell at compelling momentum. Move sl to BE
4. Thursday - enter long at daily open candle in lieu with weekly trend. Move sl to BE
5. Friday - enter long at pennant breakout. Move sl to BE
6. Monday - enter sell at double top. Move sl to BE
7. Tuesday - enter long at 1hr trendline. Move sl to BE
8. Wednesday - enter long at daily open candle in lieu with weekly trend. Move sl to BE
9. Thursday - enter sell at compelling momentum. Move sl to BE
10 Friday - enter sell at diamond formation breakout. Move sl to BE

This is just example of 2 weeks but illustrates what I do.

Now I will never enter like the above, or be in the market everyday. This is just an example.

Above 2 weeks made me 10 legs.

To establish these 10 legs I made few sloppy entries that cost me a total -300 pips. I will write this down.

Buy positions - 1,4,5,7,8
Sell positions - 2,3,6,9,10

5 buy positions and 5 sell positions. Call this group a10.

Some legs die fast from the price fluctuations. Some legs continue battling out.

I will let this group a10 to settle down for a week or two or more. Basically letting the market decide their fate. Lets just say the main weekly trend has been down for the last 8 months.

1 week later - position 1,4 of buy still alive
position 6,9,10 of sell still alive

**I dont need to look at my capital balance or equity yet

2 week later - position 1 of buy still alive
position 6,9,10 of sell still alive

3 week later - only position 6,9,10 of sell still alive

but.. it doesnt stop here. Cause whilst group a10 has been fighting it out, I was collecting more positions and had another group b10. And this time I was more sloppier with my entries and lost -400 pips to establish group b10.

Now b10 had positions both in buy and sell as well cause all I ever do is just follow the flow of the market.

Fast forwading few weeks, out of the positions in group b10 only 2 positions survived, peach and watermelon.

I will now diversify my groups and add a10 and b10.

I have 6,9,10 from a10 and peach, watermelon from b10. Total 5 positions. Im not surprised to see that the surviving legs are all sell.

I look at my watch and it is now mid february and market has followed the main trend and has moved 1200 points.

If I close all 5 positions now, each position has avg 600 pips. Obviously leg 6 will be the biggest then 9 then 10 then peach then watermelon.

So my total pip if i close all 5 would be 3000. But I dont forget that I lost -700 pips to establish these. I close 3 of the smaller ones; 10, peach and watermelon for a total 1500. So I increase my capital balance by 800 pips. What about 6,9 my bigger ones?

They are now promoted and moved to group godzilla1 where positions, zz, xx, yy already reside and have been for the last 1 year.

Now this is a scenario I conjured in my mind but its exactly what i do but I will do the above in a stretch of longer time frame.

Everything i do is multi-layered and I treat each individual groups of position as completely different entity even though they are from the same currency pair.

Im not technically hedging as you might think i am but alot of the readers categorize me immediately as that i am. When you first asked me how I effectively hedge it was little out of line to what I was trying to describe. Probably due to my poor description but I went ahead and answered and Im glad that I have

Im glad you brought this up stevegee58.

Thank you someone. Your feedback is appreciated and it makes my efforts worthwhile. Please keep an open mind and all the best with your trading.

Graeme

Good evening dexter_fx

Thank you for your question.

I will only consider closing bigger groups when there is a considerable change in the weekly/monthly trend. Weekly trends that has been going for almost a year will not all of a sudden change trend in a week. It will take alot of power to change the main trend. With enough experience you will notice these. Even then I might not close out the large group completely but diversify again.

Do you know what happens when you cut a millipede into two pieces?

It becomes two separate millipedes.

There is a reason I compare my trading style to a millipede.

Sincerely

Graeme

Good evening, Geoff

Thank you for your question.

I have started adding positions on downtrend for eur/gbp this week. Group egbb4

Undoubtedly you wish to know my intentions. I would prefer to keep my speculations personal however I will reveal why this time.

Eur/gbp had a big monthly trend change around september 2009. It failed to make new highs and the uptrend from 2007 was coming to a slow grind. Since february this year there has been compelling movement down and paving way for a new downtrend or a very deep retracement of the 2007 uptrend. Either way I dont focus on the why but focus on how I can participate.

My main group started in march which ended up as a shooting star. Didnt know it will turn out to be a shooting star. For march, I remember clearly that I had continuous low risk setups and all I did naturally is to follow the flow.

I had mixed positions both buy and sell. My bias was the new monthly downtrend but I let the market be the judge.

Soon the market destroyed all my buy positions and confirmed that we are running into a bear market. I had many positions and I diversified twice. The later diversification was only recently when the market went into range.

My biggest group is egbb2 which has 11 positions from 0.90150 and current price is 0.83300 @ 2 standard lot each. And it will grow exponentially from here if this new monthly trend continues for the next 2-3 years.

Current group egbb4 has many buy positions. You will see why if you open eur/gbp daily chart of the last 2 weeks. I just followed the flow. Hope they will be good legs and run but Im noticing that buy is losing pressure. Im not disappointed cause I will follow the flow and add sell positions to this group if given the opportunity. Added one today at market open 0.83749 which is still fighting for me. Moved its sl to be just now. Tomorrow I wont add a position on open of the candle if US market tonight doesnt break yesterdays low. If it doesnt break yesterday low I will watch for a low risk setup formation and enter.

Geoff, I have genuine interest in your trading however you need to know when a good setup is forming for a low risk entry. This is something you need to accomplish first. Position management will come to you when your ready.

Feel free to pm me.

Sincerely,

Graeme

Good evening, stevegee58

After i enter a new position I scan various timeframes for signs that I might be wrong. Some of the price pattern I rely on and breakout setups I favour knows me well and I know them well in return. This came to me from alot of trial and error.

Not all breakouts are the same. I look for specific reaction from the market when it plays out. If I dont see any of the intended reaction from the market unfortunately i close out. On some selected days I dont even have any stop loss. Actually more often than most traders would prefer to do.

In my example -300 pip is just from entries that has failed on me because of above reasons. However in reality it is uncommon for me to lose -300 pips to establish positions on a good daily/weekly trend. But I used worst case scenario for my example.

I hope I can be a better trader with no loss but I consider them as my miscellaneous business expense. When Im ready to diversify I know with a degree of certainty that they are already covered.

If you find that when your diversifying you are closing legs to cover your losses. Then a) better entries are required b) your trying multiple times on one single day to establish positions c) you didnt allow enough time for the market to judge your positions. I have never diversified for a loss. NEVER.

Entries tend to get better the more a trader practices and I urge everyone to find their own edge in entries and not try to emulate someone else's system.

Another good question and hope other readers think about what I say.

Its very late here. Good night all.

Sincerely

Graeme

Hello Damien

Good question.

I will always look for entries but would have been very interested if price did break below 0.83156 (or around there) because this is support on daily chart.

When I look at charts I have mini support and resistance everywhere in my focal interpretation. It is one of the ways I guide myself in entering.

Entries are something everyone needs to work on at their own personal discretion. The reason behind is that two traders using same method will have different profits compared. It is not the integrity of the method but each traders individual focal interpretation of entry and exit.

With me, exits dont worry me at all. Please refer to the large example last night. Entries that has a greater chance of survival which is often at open price of daily candle.

If 0.83156 was broken overnight then today i entered on open of new daily candle with no stop loss. This is something that I have managed to upskill through trial and error.

Im aware of an exercise that Joel Rensink (aka TheRealThing in this forum) has recommended but from the replies after it looks like none of the participants never actually tried it.

How certain is a trader when they enter a market to take 1 pip profit.

He requests that you open a small live account on oanda and place $50. Adjust the custom lots to 0.25cents per pip and enter when you believe you can be certain to make 1 pip take profit. If you dont, you cant close out but leave it as it is until the price finally makes you 1 pip or takes all of your $50.

What you will learn from this exercise is some of the inner traits you hold as a trader. It will be an enlightment.

TheRealThing is asking more than a traders' capacity to be able to make 1 pip. It is part of traders self-awakening.

Sincerely,

Graeme

Good morning all

Thank you for coming this far with me. It is greatly appreciated.

I would like to ask everyone on a personal level. I would like you to answer the question outloud in your mind.

How long do you think it will take for a trader to be profitable in trading?

Anything under 6 months or 1 year needs to re-evaluate

Trading system will help a trader to be profitable?

No. It is the trader that makes the system/method profitable

Do I need large capital?

No, unless you are expecting large profits and sipping vintage Krug and scoffing down lobster mornay. If you expect above average or excellent return on your capital then you are on right track.

Is it easy?

No if you are asking the wrong questions and looking for wrong answers. Yes if you have the right perspective first as a 'trader.'

Do you think I can make it?

My friend, everyone can make it when they are ready.


Majority of traders unfortunately underestimate and overexpect. What a predicament.


Please dont take the above as an attack on any of a traders belief. All Im trying to do all this time is to help you form a different perspective as a trader.


Beautiful day everyone. Enjoy your life.


Sincerely,

Graeme

Hello Ben

Thank you for coming forward.

Allow me to analysis your current progress. Please note I do not know the ins and outs of your current system/method but I hope i can contribute positively.

Below is my personal interpretation and a view of my thought process,

$500 starting capital @ 0.1 lots is realistic and sensible.

Approx. $120 for margin per position. So I wouldnt be looking at holding more than 2 positions at the same time. 3 would be a overkill.

Your progress is very good. That is 5% increase on your capital per month, 60% yearly return. This is outstanding but this is where gravity plays its part.

If, you have completed more than 30 trades in the last 3 months to achieve the above return then you will notice a correction on your equity curve sooner or later.

If, you have achieved this in less than 10 trades in the last 3 months, you are well on track.

If, you have an exit strategy where you exit after certain pips or at the sign of certain moving average crosses or any other 'limiting factors' you are cutting the potential of your profits too short.

If, you have an exit strategy where it is encouraged to hold indefinitely until a big change in the major movement of the currency pair you are on right track.

If your method is based on growing your capital in line with the main trend, you are doing right.

If your method only takes notice of the main trend then you are not reaching your trading potential.

If your method is based on capturing profits at price fluctuations intraday or intraweek, hopefully you hold your positions and let the market be the judge.

Nobody can predict the market. The market has been around centuries and countless people have tried to create a system to make money from it. No doubt this will continue on past our lives and until the end of time.

If nobody can predict or control the market then we traders should inversely allow the market to dictate us. Market is evolving, moving and it is a pure unstoppable force. The indicator/system that we know and cherish cannot sustain such infinite force by placing such parameters to its infinite actions. Nobody can outsmart or outmove the market.

Sincerely,

Graeme

Dear all fellow traders

As per intended flow of my explanation Im nearly at the end of my endeavour. I have taken great deal of care and patience in explaining my method however I understand if its not settling down in your thought process smoothly as I hoped it would. Which is all natural as human perception only chooses to see what they wish to see.

Most likely by this weekend I will finish the last 2 topics.

1. Required thinking process to be a long term trader
2. Emotion control

I will summarise the whole method with charts at the end. My initial intentions was never to stay around the forum as I shun the limelight or necessarily have any benefits to be around.

So please do not hold back any questions as I value your enquiries with genuine interest.

Please look forward to my last few posts and once again thank you for the support.

God bless you all.

Kindest Regards,

Graeme

Good afternoon, Thijs

Excellent question.

I diversify after some growth on the group and when the market cannot decide. You will notice these periods of undecision after considerable movement. Price can retrace, stall, range after a large movement and it is around this time I will diversify.

However the true power of diversification is when im not sure about the intended movement of the market. Diversification will increase my capital balance + balance out any losses incurred + opportunity to move few legs to a bigger group above for more growth.

For example, if all readers could please open a weekly chart of gbp/jpy and zoom out so you are looking at approximately 100 candles. It is an obvious downtrend. And this obvious downtrend started from mid 2007. Imagine growing your capital on this main trend for the last 3 years (and this is what everyone should be only doing).

I had a group that started on the first week of this year and until mid february it was a fantastic move down. I had many positions with comfortable entries. Then I noticed that my newer sell positions started dying and I had increasing number of buy positions then sell positions; which is a sign of range, retrace, or stall.

Even though I was confident that this was just a blip of fluctuation and downtrend would continue, I diversified here on 2nd week of February. This increased my capital for a fair amount which smooths out my equity curve. It is traders best interest to avoid jagged equity curves. Also from this diversification I was able to move few legs to the larger group which was formed from mid 2009 and they are all still alive to this day.

Interestingly from march until mid april there was a good movement up on gbpjpy. I noticed sell positions dying and buy positions growing. I let it happen and once I had a good number of buy of positions and enough time for growth I diversified again around end of April taking another bundle of profit on the countertrend.

Downtrend resumed and I followed and started another group. This group has now grown for me to consider another diversification.

Timing of diversification is not important as long as you gave enough time for growth. The market will decide the fate of your group. When you diversify you are accepting the markets judgement. And when you diversify it doesnt matter if the market is trending or ranging as the result is the same.

I said this before in previous post but I will say it again as this is important to diversification.

If you find that when your diversifying you are closing legs to cover your losses. Then a) better entries are required b) your trying multiple times on one single day to establish positions c) you didnt allow enough time for the market to judge your positions. I have never diversified for a loss. NEVER.

Apologies for the lack of chart to explain but it is very simple once you open a weekly gbp/jpy chart and zooming out to 100 candles or so.

Very good question indeed

Regards,

Graeme

Good evening Someone

Im glad to hear that you have started testing out my method and I wish you all the best.

In regards to keeping track of the numerous groups. This will improve over time but its half manual and half mental. Personally I use a large journal but Im aware of the current groups im building. You will become accustomed to them over time.

Diversifying is the easier part of your trading and you can diversify with many different option. The main thing you do when diversifying is, you are moving the larger legs of the group to the group above and closing out the smaller legs. This is important as it will smooth out your equity curve. You can close more than necessary or move more than necessary as long as you are adding profit into your trade balance. It will look impressive either way.

Please do not rush to make positive positions everyday. You will soon learn why. Why do you think Im requesting you dont try adding positions everyday? Can you try answering for me?

Running into continuous breakevens and small losses will happen however as long as you are entering with low risk. Soon you will be able to pick your entries with high probability so please continue practicing low entries.

Please let the market dictate your entries and enter both buy and sell as it happens. The market will be a fair judge and decide their fate later on.

Someone, can you handle a streak of 20 breakevens or more? You need the willpower and the unbending faith in your own beliefs.

Your first hurdle in emotion will come when the legs die out on breakeven. Please dont grow any sentimental attachments as there will be plenty more to come. Trust me when I say you must be a bigger person and not allow such emotion overshadow your clairty or participation in the market. If you are entering low risk entries on both buy and sell, the market will dictate the winning side sooner or later. Your job is to 'participate'.

Soon there will be a post entirely on emotion control.

The reward will definitely be worthwhile.

Please dont stop with the questions.

Sincerely,

Graeme

Good evening Ben

Thank you for your correspondence. Sounds like the equity correction was more than due and it is already underway.

Ben, I agree with most of the method of entry they showed you. Entries are not easy and requires a good deal of practice. It would take a keen learner a good 6 months to be effective. Consider positions closing breakeven as a good bonus cause you had a chance to stay in the market but unfortunately was stopped out from fluctuations that we have no control over.

Unfortunately, I still enter from 1hr, 4hr charts but definitely not as many as yourself. Probably not even quarter. And my entries have higher chance to at least make breakeven.

The stress must be overwhelming. The biggest problem with the method is 1:1.5. This is a big no. There is so much more in forex than the 80 pip Ben. Good portion of my legs I currently have are 1:70 or more. Positions that are 1:5 or less is not even a leg to me yet.

Entering with low risk is a big learning hurdle for everyone and its a must. Exit is at our leisure and choice. You can diversify when you are feeling unsecured. Exit plays a major role in short-term intraday, intraweek traders whose profit and loss depends on the random fluctuations of a merciless market. For me exit doesnt excite me nor worry me and it is one of my lower priorities. When you are a long term trader you cannot lose on exiting after growth unless your on the wrong side of the road.

Also, im aware of this common belief among traders to walk away when they reach a certain proft target for the week. All I can say is that the market doesnt know each individual traders profit target and certainly dont care. I never stop trading cause I reached certain limit.

No trades on fridays? Yes if there are no low risk setups forming. No if there are low risk setups forming worth entering.

And this applies to all days, not just fridays.

Market decides whether a trader enters on friday or not. Traders can only follow the market.

Sincerely,

Graeme

Good evening all.

Hope you are all warm and safe.

Please dont stop with the questions as my intentions are to answer everyone on everything till weekend.

After my replies please refresh the page as I usually add more content that I missed out.

Sincerely,

Graeme

Good evening Ben

Great questions.

I have no doubts that you will be able to shift your entry methods to higher time frame and also you will find few new ones.

1. Yes, I will leave my SL at BE until I close that positions. I dont use moving sl. I had far more success from using BE SL then using moving sl. Diversification will serve the purpose but on different level.

One quick example: I enter sell at 150.000. After 1 week it moves +250 pips so I move my sl to +150 pips to lock in 150 pips. Market retraces and takes my stop loss out. I shrug cause I just made 150 pips anyway...

But..

4 years later, price is now at 050.000 and has moved 10,000 pips... This single position would have closed out with so much more profit than all the small profits I made from moving my sl.


2. Yes I drew twice but mostly still in my capital pool. I do not require any income from forex to live.

My major plan is to building a huge equity millipede on monthly and yearly candles and will start looking for platforms with yearly candle charts. I will do exactly the same. I probably be able to only witness probably the next 30 or 40 yearly candles but it would be worth a try.

Im still evaluating but enjoying every moment.

Sincerely,

Graeme

Good evening, Ludo

Your most welcome and thank you for the feedback.

Sincerely,

Graeme

My apologies Someone, I seem to have missed your question.

Im glad to see that you have a realistic view. Yes it will be 30-50 attempts before a group appears. This is will definitely improve over time so please keep practicing entries.

It seems my efforts may after all been worthwhile.

Sincerely,

Graeme

My apologies to you too Ben. I seem to have missed your question as well.

Ben, entries are at your discretion however I would like to add some guidance.

I do use trendlines, support and resistance lines in my focal interpretations. However I will never solely rely on something. I will follow the market and enter at low risk. This might sound vague at first but you will understand soon.

Please keep an open mind and let the enlightment approach you.

You are on right track.

Sincerely,

Graeme

Good evening, Wonko

Thank you for your enquiry.

I had to read it twice before I started typing my answer.

Wonko, you will have many positions die on you. Please dont let this upset you in anyway. In regards to moving stop loss, once again the market dictates whether to move stop loss asap or let it endure little more.

For example, one of the ways (and preferred ways) I enter the market is pennant breakouts. When I decide to enter on the breakout I expect the majority of other traders also entering with me. If there is no momentum when I enter I will move sl immediately. Not all pennant breakouts are same and experience will teach you the ones to watch and the ones to ignore. Price doesnt want to breakout but needs to breakout. It needs to.

There are also areas where price is either going to stall or burst through. Major support resistance lines and round numbers. I use double zero and ignore 50. With enough screentime you will be able to create your own personal edge around these areas.

Practice entries on all timeframe, every pair, everyday. It will show your inner traits. And one day you will just know when to move that sl to be.

Or not even use a stop loss at all.

I have no intention to misguide you so I will answer your next question truthfully.

Can you handle 20 or more losing streaks?

Your entire focus should be only on how you can participate into the market. Enter at every low risk entry given and manage your sl and let the market decide your fate. Your only job is to enter the market for your positions.

Then millipede will emerge.

Sincerely,

Graeme

Good evening Jigaw

Thank you for your questions. They are very well thought after.

1. I do not have any pre-defined r:r as I find them as an excuse to close a leg for no apparent reason. My reward grows exponentially while my risk remains static. This is possible cause the risk has already been settled and accounted for through diversifications.

After completing few thousands entries, a hard stop loss becomes unnecessary. Hence I cannot claim a definite r:r. Multiple groups of larger positions all growing exponentially overrides any risk incurred when entering one single position but will be accounted for sooner or later in diversification. It now moves on its own and with all fairness I think I dont even have a r:r anymore. It could be my perception or the fact that stacks of positions growing larger by the minute on every main trend of every curreny pair is simply too powerful to even be dent, let alone few sloppy entries.

2. Im well aware of entering 2 positions and closing 1 position @ 1:1 at certain amount of pips and leaving the remaining position virtually free but with a slightly bigger space to breathe. This entry method is also pleasing on the equity curve as you will be able to take profit of the 1:1 position and the final big position when it finally closes. But do we really want to close out our large main group?

Im confident I can implement this into my entries as well but at the moment I dont see the necessity for such measure. I was extra careful not to mention this in my thread as this would have caused more damage than good to our new starters.

3. Fixed lot size and unfortunately I dont have a special reason for this. It was a suitable lot size for the capital i started with. If you are enquiring whether I adhered to the market myth of 1% of your capital rule I have to say no.

Thank you for the great questions.

Sincerely,

Graeme

Good evening Stevegee58

Thank you for excellent questions. I try my best to answer.

1. I read this three times and was amazed. Yes. And this happens not just in finance.

2. Yes, all correct. I personally dont know bajillion books but it has my interest now. In my personal view high probability systems with lower r:r is a long road of frustration. Im sure there are many successful traders doing this and I wish them well. It will be a different kind of stress level. In forex there are so many long term trends currently starting now, in the middle, or changing. All we need to do is participate. The power of growth starts from participation.

40% loss is fair amount but im assuming some of them are hopefully BE. There is a surprise that awaits all long term position builders. Even though we can blissfully work out how much we can potentially make from our existing positions, at the end it will be so much more on the table and you wouldnt be bothered working out why.

Sincerely,

Graeme

Good evening Pillager

Thank you for the question.

I do apologize for the lack of charts but Im currently learning how to take screenshots. It will be up soon.

Yes, I would enter short if I consider it to be a low risk entry and higher chance of my position to at least be. Even though I will keep my bias on the main weekly trend, I will enter. And once there is a correction and I find the need to move sl to be then our job is done. Name this position and write it in your journal book. It will be a lonely soldier amongst the other buy positions but let the market decide who the winner will be.

Please do not hesitate to ask me any other questions

Good night gentlemen. Day has taken its toll on me.

Sincerely,

Graeme

Good morning, Sixx

Thank you for the compliment. It makes my efforts worthwhile.

Just on a friendly note, human perception chooses to see only what they wish to see and believe. Please remember this in your journey of learning. I had no intention of adding charts into my explanation as I wanted all readers to soak and digest on their own thinking capacity. However, I will add some charts to my conclusion this weekend.

Please look forward to them and feel free to ask any questions.

Sincerely,

Graeme

Good morning, Someone

Great questions.

Please keep your open mind for me as undoubtedly you will need my advice at the moment.

Your answer to my question is correct. If I may summarise in a single sentence, increased risk doesnt necessarily increase profit.

I would rarely add more than 3 positions per day. Its a rule I have adhered to this very day and will continue so.

I applaud at your mental strength to open a live account and I stand behind you as support. Please be ready for the emotional hurdles.

Hopefully you have 2 or 3 reliable entry methods that you know so well that you can write a phd thesis. If not, you will have tough time and this concerns me.

Entries are at your own personal discretion. Personally I write down the main weekly/monthly trend on a paper infront of me. I dont mind if they are against each other but I will be content to see them both heading same direction.

I would switch to 4hr, 1hr, and 'scan' the charts for obvious areas of interest (this is also my personal discretion and part of my own entry method). Under my belt I have 4-5 entry methods that I know very well. Then, I will enter the market as per my entry method whether it be buy or sell. Im just following the market at that very moment. When I witness a breakout happening with excellent momentum, I enter with the flow; could be buy or sell. I will concentrate on this new leg and ensure the danger is past and before I walk away I will move sl to be and write down the position name in my journal.

Main trend when I enter is on my mind but 2nd in priority as my complete focus on hand is clean risk free entries.

I will take as many low risk entries as the market gives me. However, this is possible if you have large capital pool. If you dont at the moment, please dont worry and let it effect your clairty or overshadow your participation. You might have to pick from two low risk entires but you are doing you job as per description. Well done.

If you started with $5000 USD, it is doubly important not to add positions on one single day. With limited capital, you must be extra certain about your entries. Let time pass and soon you will have 5-6 positions in your group. Wait till they are distilled and soon you will notice that the market killed off legs that were on the wrong side of the main trend. Soon after growth and markets judgement you will find that you have 2-3 legs left of the same side growing rapidly. Diversify here and hopefully you can keep 1 larger leg for more and 2 legs closed to replenish your capital balance and also adding profit. This ensures that your equity curve is smoth. Try and avoid jagged equity curves. You will understand later on about equity curves. Going back to the surviving leg, it is now promoted and will grow on its own for you. You have already done hard work for him.

It is harder at first but you will find with this type of trading method it will be like rolling a ball down a hill. It just gets so much easier as long as you do your job which is entering the market well for your legs.

I find other trading method concepts is like rolling a ball constantly up the hill. Continously taking small lots of profit then find the ball rolled little back and then to continue pushing it up the hill.

Do you want to roll the ball down the hill or up the hill?

Im very proud of your questions and hope you well


Sincerely,

Graeme

Good morning, Geoff

Your questions are always welcomed and they are excellent.

Correct, eur/usd had a very good downtrend since early this year or end of nov last year to be precise.

And just on the side I would like to mention that anyone would have made large profits simply only selling below the days open price. It is obvious trend and very foolish not to be considering long term positions on this type of trend. Moving on.

Geoff, in times of uncertainty I will diversify. When I diversify, in my own terms, Im reducing my risk to zero + banking a healthy capital balance + its gets out my way in my mind. I dont decide the fate but the market will later on. Im just a position manager.

I request you grab a piece of paper and simulate a scenario of the one you mentioned above and what I would have done. You will find, profit on both side of the coin.

Please do not allow legs dying on breakeven to effect your emotion in anyway. Even if that leg was up 200 pips yesterday. As a long term trader we do not necessarily want 200 pip legs. If a leg only fought for you and reached 200 pips before dying on breakeven, this is not your fault but the legs fault. That leg doesnt even deserve a soldiers burial in my regards. Also please look at it as glass half full by assuring yourself, that leg had the potential to grow 3 or more years for you and finally exit with 10,000 pips at your leisure. You just had a chance to make 10,000 pips on a position and the beauty is, worst case scenario it would have died on breakeven. Wouldnt you consider that an extremely good payoff?

And yes, if market dictates that downtrend has resumed, I will do my job of entering with the flow at low risk setups. Im at the mercy of the markets judgement. When market resumes the downtrend, I will enter sell. You will notice in that particular group your building to have mix of buy positions and mix of sell positions. Allow time for the market to judge. If the downtrend resumes, you will find buy positions dropping like flies and sell positions increasing in number and size. Then you will know that the market has decided where to go. We cant do anything but follow.

Beautiful day everyone. Hope you all a wonderful loving day.

Sincerely,

Graeme

Good morning, Stimulus

Apologies, I nearly missed your post.

Your answer is correct. Increased risk doesnt necessarily increase profit. Please also read the reply I typed just now for member: someone. It will benefit you too.

Moving sl is at your discretion. Once you know your entry method very very well, you will just know when to do what.

Keep practicing low risk entries on demo for all timeframe, all pairs, all setups, everyday. You will learn more than you anticipated. Sounds vague at the moment but you will smile then.

Sincerely,

Graeme

Good afternoon, Someone

Im very happy at the flow of your question. This is flowing nicely into my next topic.

Please dont allow any sentimental attachments to your legs or you will be disappointed when legs die out on breakeven due to fluctuations we have no control over. There should be no room for disappointment if you have done your job to the best of your ability.

As long as your capital holds (please be sensible and realistic), feel obliged to enter as many positions on same currency pair both buy and sell. The market dictates whether you enter buy or sell and your only responsibility is to participate with a low risk entry. As long as you have moved the sl to be your job is done.

Keep your emotion under control or it will control you which will effect your clairty and hinder your participation in the market. Your capital growth starts from your participation.

Imagine yourself as an army general and you are parachuting soldiers 'strategically' across the battlefield. Better deployment will have higher chance for the soldier leg to survive and continue fighting. Be a better general.

Sincerely,

Graeme

Good afternoon all fellow traders

Thank you for coming this far with me. It is greatly appreciated and hope my contributions has opened a different perspective to your trading beliefs.

For the new comers, I request that you start the read from the start of the thread. I have put in alot of effort to come this far and if you are here for answers then I'm certain you will find something that you will like.

Im drawing closer to end and my next topic is about the required thinking process to be a long term trader.

How do you see the market? Do you know the size of a single currency pair? There are so many factors inside a single currency pair. Yes, there are ever growing number of traders out in the field all contributing their share into the market. This contribution from traders is nothing compared to what might be really going on in the background. It will be more or less a dot in an infinite space and time.

And it is far more than what fundamental traders, economist forecast. How many times has an economist been proven wrong? It will be less than the amount they were right but perhaps this is a folly from the newspaper or magazine who has an interest in selling publicity for their own personal profit taking. If an investing magazine publishes about an economist failure, who wants to pay money to read that? No one. It is mass medias interest to keep you interested in what you want to believe as long as you are buying their magazine. And this includes all trading seminars. Brokers? They want you to be an intraday trader. More executions, more risks, more revenge entries, more punts, more speculations. Thats what they want and they will allow you to do anything on their platforms to make you belive that you have it under control. Just like casinos supplying scorecards at their tables so the gamblers can draw little pictograms and work out the future from what happened in the past. I consider indicators to be the same and ofcourse the brokers will allow them by all means. I have just noticed that the word broker automatically becomes a hyperlink to click on. So perhaps the interest of this very forum is different to our traders interest too.

There has been countless and countless number of intellectually superior individuals over the centuries to try and work out how to make money from the markets. This riddle will never be solved. Or perhaps it wasnt suppose to be solved but respected and accepted as it is. There will be chaos if this riddle is solved and everyone will be very rich or it would be the doom and closure of every market in this world. There is no set of indicators or method that is readily available for anyone with an IQ of a warm room to adapt and make zillions from the market. Some of best and brightest minds on this earth are still researching. My son is currently hired by an international finance giant to create a model for listening to certain waves in the market. And he has a doctorate in astrophysics.

A very few percentage of people will make it happen. Just like there is professional gamblers who make millions from just gambling, some people just make it work. But it wouldnt be from the common belief of the majority. They made it cause they accepted the facts and looked outside the box away from the common crowd and diligently worked towards their dream with sensible and realistic efforts.

Amongst the people who have made it, Im sure there are scalpers, intraday, swing, position traders. All shapes and sizes. Anyone who can make it in the market deserves the reward they create. I have personally met a very successful swing trader who holds positions only for a week or two. Im the type of person who would never believe any claim thrown at me however this gentleman definitely has genuine success. We became good trading buddies and we would speak about the market to great lengths. He was very bold and direct and definitely wasnt shy about his actions. I could see his character through his method. It wasnt a surprise to see that his method has changed this persons natural character to an aggressive and on the edge temper. He was quick to conclusion and quick to change his mind. I didnt admit back then as there was no need but we were using same lot size and similar entry methods but my profits was many folds larger than his. He still thinks otherwise of me and thats all i care to do for now. Over the numerous meetings I would carefully advise that perhaps he should hold onto his hard earned positions indefinitely and let them grow to their potential. He retorted at such idea and didnt even give second thoughts. This person is definitely a better trader than I am and he could be so much more if he just followed the market. Unfortunately he is already locked up in his own box and the key thrown away a long time ago.

Just like my trader friend, everyone chooses to see what they wish to see. This will be the first hurdle that everyone needs to overcome to be a better trader and a better person in life. Even though I understand how and why some traders would like to only intraday trade. It is most likely they are looking for instant fulfilment when looking at the days profit statement or end of week. However, you need to become a bigger person and acknowledge that this market is so much more than a blip of 80 pip movement. And you certainly shouldnt be focusing so much on 80 pip movements everyday for the rest of your trading career.

I request all fellow traders who has some level of success in trading to keep a simple journal of all their live trades or serious demo trades. Write down entry and exit price and continue doing this for the next 2 months or more preferred. After 2 months please write down the current price of the market for all the pairs of currency you have traded in the last 2 months. Look at this journal and tick any positions if the price of the current market never came back to its entry price. Then work out how many pips have moved from the entry of the position to current price of every ticked positions. Add all the pips and compare this final total amount to your profits. This exercise will add new perspective to your current beliefs, you will be very surprised.

Lets be honest most traders wont even consider to do the above exercise and then I wonder why they are here in this forum in the first place? I thought we are here to learn from each other. But all I see is blind leading the blind. I know Im treading on thin ice to say the next but perhaps readers only listen to someone in forum with 10+ vouchers? Perhaps my lack of posts or vouchers effects my credibility. This is not an attack on the integrity of this forum but all im trying to say is, as a searcher looking for answers you need to search far and wide. I dont see the necessity but I could also join other threads with lots of activity and quote something already known and preached, befriend few traders and have no doubts that sooner or later I will have the required recognition. Perhaps they are focusing more on forum activity than the actual trading itself.

Open your ears and your mind and perhaps someone with no vouchers and under 10 posts could give you that final piece of the puzzle. It can happen anywhere and anytime.

I will leave this post for now and will come back later to edit as there is something important im trying to convey. I do apologize but I have a dinner arrangement tonight.

Will try logging in later on.

Sincerely,

Graeme

Good evening, Chonghm

I apologize for missing your question.

Very good question and i hope other readers also read on.

First of all, Im very glad to hear of the 2 positions you have deployed successfully. I wish them the best. Although I have answered the same to other members of the forum I will answer again for you personally. Please do not grow any sentimental attachments to your legs and also please do not try too hard in one single day to get positive legs. Trust me when I say there is so much time to our side, we do not need to rush.

What I request you to do as the main exercise for the next 6months is to open a demo account and practice your entry everyday. Every timeframe, every currency pair and every setup possible. You need to know your entry method better than anyone.

In regards to your 90 pip loss, Im assuming you entered sell after you read post 53 when I advised Geoff that eur/gbp was losing pressure and that I already had a sell position in place. This is not your fault at all but this is one of the reason everyone including myself should keep their personal speculation personal as it will cause problems like this. Near the end of post 53 I explained that I will enter sell on the open of the next daily candle if price broke through yesterdays low. Price didnt break previous days low so I didnt enter sell but was ready to let the market tell me what is going on. There was no intention to misguide anyone but my actions is so much faster than what I can post here for the general view of the public. News 5 minutes ago is still old news

There was 2 breakouts from yesterday to today which should have been noticed. My sell position of wed died at be yesterday however added 3 more up positions in the last 2 days all now at be. Everyone should have definitely caught the todays range breakout as this is a classic setup.

I just had a look at group egbb4 and it has now all buy positions. What is this telling me? Clear up trend and the blip of retrace of mon, tues, wed is now over and done for now. Did i lose anything from retrace? No, but it gave me opportuntity to add 3 more buy positions almost for free. And I was ready to enter sell positions and would have been the first in and building a group of them if the downtrend of mon, tues, wed continued. If this temporary down movement was the start of a new main downtrend on weekly/monthly chart, I would already be in at the very top and groups of legs already forming. Power of participation.

I will diversify group egbb4 tonight. Please dont follow me at all but please follow my concept. This group has been doing very well for last few weeks but it is on the wrong side of main monthly trend. This could be beginning of something huge, perhaps a new monthly uptrend. Nobody knows and Im not sure either so I will diversify to get it off my mind. I will diversify and close out smaller half of my legs to replenish and increase my capital pool and keep the bigger half of legs to remain fighting for me as my uptrend soldiers. If they die at breakeven later on I wont even care/notice because I have group egbb2 (refer to post 53) and egbb3 all ready to fight for me again as my downtrend soldier legs. Its like watching an action movie sometimes.

Chonghm, please read the above twice if necessary cause i know what you are really asking and it is in my story above.

Kindest Regards,

Graeme

Good evening, Geoff

My pleasure. Please read my reply to chonghm just above this post. This will benefit your learning.

Sincerely,

Graeme

Good evening, lolek

Thank you for your feedback. It makes my efforts worthwhile. Your english is fine.

Sincerely,

Graeme

Good evening, pipcruiser

Thank you very much. It definitely makes my efforts worthwhile. Hope you find what you are looking for from me.

Sincerely,

Graeme

Hello again, pipcruiser

Apologies for missing your first post hope you didnt get the wrong idea.

Great question.

I trade every pair possible except exotic and have no regards to spread from my brokers or the daily range. Obviously spread and daily range will be an important factor if you trade intraday or any shorter term with exit strategy already pre-defined.

I dont favour any particular pair but prefer pairs with huge monthly trends like usd/chf which started its main monthly downtrend since 2001.

I can say with all honesty, if I had started what I do since 2001, that single pair would have been millions. Hope everyone can finally see the power of growth from stacking positions on main trend and letting the trend do its work for you. Its just so much easier to have someone else do it for you.

At the moment, I have my finger in every pie and my journal shows more than 170+ positions across the board. Since everyone knows my lot size unfortunately you will be able to work out minimum amount I have in my capital pool. Its too close for my comfort to reveal anymore.

Sincerely,

Graeme

Good evening, Sixx

Thank you for the kind remark.

Your plan sounds great and I hope you will keep to it.

When you first start, your anticipation 'will' overcome you and yes, most likely you will diversify too soon.

Rest assured, this happens to everyone and it is one of the first mental hurdles up ahead. As long as you kept loss at minimal while establishing your legs by low risk entries you know well of, you will find even with only a relatively small period of growth for your positions, your diversification will be a success and will replenish and add to your capital pool. Hopefully you can hold onto at least few of the bigger legs and promote them to higher group.

Dont stop with practicing entries everyday. Good clean low risk entries is your only job requirement. The rest market does for you.

You need to be a bigger person and hold onto the initial stage of settlement and growth. Hardest is the first 2 months. I can only imagine what it will be like and I already applaud you on your intentions.

I know you will keep your promise with me.

Sincerely,

Graeme

Good evening, ozziedave

Thank you for your question. A very good one.

I request when you have the time to read all my posts from the start of the thread. If you have done so perhaps another read will give you a deeper meaning.

Please dont take this the wrong way as I have good intentions by saying the following. From what I read from your post, something is amiss and Im sure its just the way im reading it.

I only enter what the market dictates and as per my entry methods and what I conceive to be a low risk entry either buy or sell. Unfortunately i do not understand the underlined. Yes, it is true I will enter as many times the market allows me

have to? I know what you are asking but I assure you nothing is have to. What would you say on some selected days I dont even have a stop loss? Not because I cant be bothered but after an extended period of screentime you just know what the market is telling you and confident in your interpretation. What would you say that Im confident to 'manually' enter 10 times and perhaps 1 or 2 would be -20 pips loss each? And this is on gbp/jpy. Some gbp/jpy 1hr candle wicks can be more than 20pips easily so I must have a larger stop loss? Price can move away from my entry by 200pips but I will never allow that much damage to be done on me. I know very soon after entry if something is wrong. If you are referring to one of my early posts at the start of the thread about using a hard stop loss at open of daily candle. This is true but there was so much more to it than just that and i was revealing just enough to lead the readers smoothly into the next topic of low risk entries.

From the thousands of entries I have performed, out of 10 'manual' entries, I would lose 1 or 2 at -20pips or so. And this is on gbp/jpy or any other currency pair.

Perhaps you have missed some of the important posts that I spent so much time typing in the middle of the thread. I understand its a bore to read but entering from daily chart is not the only entries I do but also use 1hr, 4hr. Some days when I cant be around to enter manually I would open a position at open of daily candle and I would set a hard stop loss of 70 to 40. Often it gets hit but for me 70, 100 pip loss doesnt even worry me. It could be my perception or the fact that stacks of positions growing larger by the minute on every main trend of every curreny pair is simply too powerful to even be dent, let alone few sloppy entries. 70, 100 or even 200 pip loss becomes just irrelevant. Also any loss will be settled and accounted for in my diversification and the market will technically pay for any of my careless mistakes. As long as im increasing my equity curve at every diversification then my scoresheet becomes zero. This is important for everyone to understand.

If anybody is allowing price to hit a 100 pip stop loss from a manual entry then they have major issues with their entry methods.

Hope you appreciate the detailed effort I put into my reply and was no way an attack on your beliefs or ego.

Feel free to pm me again, thank you.

Sincerely,

Graeme

Good evening, jcorp

Thank you for the kind remark. Yes its my life motto for a very long time.

I hope only the best with your results.

Sincerely,

Graeme

Good evening, dexter_FX

Apologies for the lack of clarity.

Hope I didnt sound like I was bragging in my reply to ozziedave and any of the other readers.

I have 4-5 entry methods that I constantly use all the time. I know them very well and I have practiced with them for a very long time.

If I were to enter 10 times into market, 1 or 2 will be closed out by -20 pips or so by myself cause it didnt work out and not doing what I expected. The remaining 8 successful entries will then have its sl moved to breakeven at my personal discretion.

You do not require the above accuracy but your own personal accuracy will improve with time and practice. If you have 100 pip stop losses then there is a big room for improvement. You should be able to know very soon after entry if something has gone wrong then you would close out with minimal or zero loss. One of the reasons why everyone needs to do their own homework on entry and know it very very well.

All you need is just 2 entry methods as there will be plenty of opportunties across all pairs of currency.

Sorry for the lack of clarity to ozziedave and to all readers.

Sincerely,

Graeme

Good morning, Damien

Thank you for another excellent question.

I request everyone to please read my reply.

This is not your fault Damien, and Im glad it is brought out by you, but I would like to answer your question in the following way for the benefit of keeping the flow of thread as intended.

As any readers would have noticed, the last 2 pages has been circling around the topic on more or less, 'how/when to enter.'

Even though the questions are very well thought after, unfortunately readers will find that my answers will be very similar to each other and we will have no progress. Im aware this happens in most group discussions and it is a circle of question and answer that goes around and around and around. This is one of the reasons that I will be drawing conclusion this weekend as I have earnestly contributed with great detail already.

If any of your concerns/doubts/confusion/questions relate to how and when i may enter, it is more or less a question on entry.

Entry is everyone's personal discretion and it must be done by yourself for a period of no less than 6 months in my recommendation. Practicing everyday, every timeframe, every setup you perceive to be low risk. After such practice I assure everyone that they will find more than they anticipated.

It disheartens me to see every other thread on the 'system' section of this forum where the poster starts off his thread by, 'everyone, you enter right here when it says this. And you exit right there when it says that.'

How could the poster adjust the focal interpretation of every reader to his/her own level? This is also another reason why advice from strategy part of forum often fails.

Personally I like, daisies, I have garden full of them and I cherish them. Perhaps Bill next door hates them and only like roses. I know so much about daisies that I can talk everyday to great lengths about them but Bill wouldnt care to listen, because it is not in his interest nor any of his agenda.

There are many entry methods that will work sooner or later if you practice. But some readers are so focused on the profit profit profit and not concentrating what is on hand. Also ,one of the reason why intraday trading is popular amongst the new starters as it allows the opportunity for the trader to feel satisfied at the end of the day/week with a positive profit.

I assure everyone, most sensible sounding entry methods work as long as you practice practice practice sensibly and logically. Some entry methods on this forum is absolute bollocks from the start and just like I requested everyone in my long post 97, search far and wide for your answers.

Nobody can do entries for you. You only need 2 entries to be successful position/intraday/swing/scalper and be extremely profitable. However, you need to know the mechanism of your entry very very very well. To attain this depth of knowledge you need to practice practice practice.

Everyone knows they need to practice but they are too busy jumping from one thread to the next seaching for easier way. There is no easier way if you want to make it.

I apologize for the length of this post but it is far too important. It will help you on the journey of learning, not just with my method but any method.

This is not a personal attack on Damien so please allow me to thank him for the oppotunity to reply in this way.

In regards to Damien's questions,

1. low/high volatility - yes, if the market tells me to enter
2. better days to enter - yes, there are better days than others. And I will consider it as a better day when every retail trader, large hedge funds, financial institutions all agree with the same direction. You know these days when there are full long bodied candles straight across the timeframe and explosion of activity/movement as if it was waiting to happen. You can consider myself already in there (and this could be another way you could enter).
3. avoid fridays - yes if market tells me there are no low risk setups/opportunties. No, if there are low risk setups that are worth taking. I frequently trade friday but intraday, scalpers dont cause they need the participation of the larger mass of retail traders to pick pockets from.
4. many traders closing positions on fridays - forex is made up of retail traders (smallest percentage) and the rest of the world..

Please dont take it the wrong way Damien or any other readers for that matter, as I have genuine interest in all your trading progress.

Let us please stop with entry questions as I have answered all of them, so the answers are already scattered amongst the posts.

If you have an entry question please feel free to pm me and I will earnestly reply.

Sincerely,

Graeme

Good morning, stimulus

Good question.

Your entry method should work on all timeframe, any currency pair. Yes, lower timeframes does effect the survivability of new legs to some degree however it depends on your entry method and the skill of your focal interpretation.

You could also look for compelling momentum on 5min timeframe around s/r or .00 round numbers or even daily pivots and take note if the price stalls or breaks through with momentum. Soon you can build your edge around these areas but it will take practice to know what is when and where.

Sincerely,

Graeme

Good morning, Damien

Thank you for your correspondence.

I knew you would understand.

Please feel free to pm me and I will earnestly reply back.

Sincerely,

Graeme

Good afternoon, all

This is my last topic which is about emotional hurdles.

All traders will face emotional hurdles as part of an imporant learning curve. It is a mix of fear, anticipation, and greed. Even though we preach each other to be mechanical and to leave emotion out it is far easier said than done.

There are many reasons behind why we feel so agitated and anxious. In my personal thoughts I believe its because,

1. Fear of loss
2. Feeling insecure from/about the lack of capital
3. Greed to make more
4. Uncertain of their own personal ability and the market in general

Points 1,2,3 are straight forward but I would like to spend little more thoughts on point 4. We humans prefer being told what to do. Its one of the basic traits of a human being. Its also why systems that advise trader to enter here when this happens and exit here when that happens is so popular. They are perceived to be the easier road. Traders wont stay long enough to find out if the system does infact work or not. If they persevere, they might find more than they are actually looking for. Accidental discovery or related discovery?

There was a valid reason why I spent the last 2 pages of this thread advising everyone that I come across to practice entries at their own discretion on all time frames, all currency pair, all setups, everyday. Quiet simply there is no other easier way to learn how to trade.

If someone asks me what is some of the important part of my trading success? It is the indepth knowledge on how to enter the market at very good setups. Growth of capital starts from participation but before growth there is the participation. It is how we participate that makes us a pro trader or still a learner. Importance of main weekly/monthly trend, diversification of positions, exponential growth from stacks of positions can only be possible after I participate. Anyone can wildly enter but the professionals know when and where to hit. A street brawler with huge muscles can wildly hit away at a smaller opponent. But this smaller opponent is a professional fighter with much experience. He will evade and dodge until the time is right for a perfect, accurate, deadly strike to the area of maximum impact. This might not look as cool as the bigger fellow but they dont need to look flash to prove their point. Good entries is a must to be a pro trader. You cannot be a pro trader and have bad entries. No such thing. Learning and practicing countless entries teaches you so much more than just entries. I can assure you just from practicing entries, you will also discover that you are able to grasp market sentiments with amazing clarity. As you level up further you will be surprised at some of the things you werent aware of before but now making very clear sense and you could explain it all in great detail. Practicing entries everyday is part of traders self-awakening. What you will learn from this continuous practice is some of the inner traits you hold as a trader. It will be an enlightment.

So what does all this talk of entries has to do with anything in emotional hurdles? It has everything to do with your emotion. Uncertain of ones ability is the very reason why you are experiencing confusion and anxiety. Just like a good driver can anticipate and plan the roads he will be taking in his journey is because he has driven that journey a thousand times. Just like a pro basketball player will stand on the free throw and just know cause he has already practiced shooting from the same free throw line a million times. These experienced individuals certainly dont feel the pang of anxiety from not knowing what to do or what to do next. And this should be us as well. Just like a masterchef cooking his 1000th perfect pasta, we should be entering our 1000th perfect low risk entry. Then our job is done.

And thats that.

Dear all fellow traders, I have contributed last 2 weeks of my time in contributing to this thread. To focus on conveying my thoughts properly and smoothly into your thinking process I entered my posts with great detail. I hope with all sincerity that everyone finds their success in the markets and I would be beamed to hear that later on someone has reached the upper echelon of trading success from my recommended method.

This is not a farewell as such but I would prefer to step back now and continue on with my personal trading and life outside this forum. The whole experience has been satisfying and I feel content for my efforts.

I may or may not be able to reply to your pms or posts and I ask for your understanding.

As promised, I will summarise everything in charts and will post in one long continuous chain of posts either tomorrow or monday. They are currently worked on.

Onward and upward,

G.S

Good afternoon all fellow traders

I have just completed reviewing all my posts from the beginning of the thread and I must say it’s a long read. I can understand how a trader would be confused at such concept of opening both buy and sell with no pre-defined exit strategy and to add more insult just leaving the positions open at the mercy of the markets indefinitely. Ofcourse this is against the beliefs of the majority of traders, as they choose to be in control over their decisions, positions, and their profit. If you ever wake up from this common traders fallacy you will realize in a sense you have no control at all. You will find successful traders admitting that they are not cleverer than they thought they were and their success is more or less based on the markets final verdict. All they could ever do was to enter at the very best of the opportunities in their own focal interpretation.

For the hot blooded new starters, you will never admit defeat and unfortunately the market will punish your egotistical views sooner or later. And I hope sooner than later. It is up to you whether you truly admit defeat and approach trading in a constructive way or you can continue wearing your favourite hat with the slogan, ‘NO, im still the best in the world’ and pullout new indicators out of your bag and try setting a set parameter again to an infinite possibility of the market.

Unfortunately, I can already see the Chinese whispers game playing out in this thread and I know I have overstayed my welcome. Please take me honestly when I say, I have earnestly gave away all my trading secrets in my posts. I had no beneficial reasons to but I don’t see how my help hinders any of my profits.

Now, before I post my long continuous posts of charts I would like to place a lighter tone by adding a small mocu-interview that I believe will help with everyone understanding. This is me in a potential traders interview. It will be amusing to see that I ask the question and I answer them. Enjoy.

Q. How did you start out trading in forex?
A. During my tenure as D.O of my imp/exp company I noticed some price for goods remain getting cheaper by the month, by the year. It was my job to keep buying goods at cheaper prices. I had constant tabs on politics of both country that I reside and operate and the country we were importing goods from. It was a smooth transition for me into forex trading. I have been live trader for 2 years.

Q. What type of trader are you? And why?
A. Long term (position) trader as I find potential profit of the obvious main trends of weekly/monthly trends that lasts many numbers of years to be an absolute profit making vehicle. Anyone can create exorbitant amounts of capital growth from just following the trend.

Q. What kind of return are you looking at?
A. Whatever the market gives me. I do not pre-define my reward. If the market gives me 10,000 pips, I will take it. If the market gives me 5,000 pips, I will take it. Currently I have more than doubled my trading capital balance easily and still hold a very large unrealized profit that some traders might get squeamish with.

Q. How is such reward possible? What is the trick?
A. Size of my reward doesn’t come from my lot size but simply following and accepting what the market gives me. I never try and predict what the market will do next hour, next day or next month. Nobody can. If anybody has an innate psychic ability then good for them, I don’t.

Q. Do you have a system you use? What indicators do you use?
A. No system. The only indicators I use on my longer timeframe charts are 5/10/200 ema close. I do not base my entries on ema crosses however, 5/10 ema gives me a scope/angle of the trend but I find them sometimes stealing my focus from the actual prices. 200ema is my moving long term s/r.

Q. What are your specific entry methods?
A. I have 4-5 entry methods that I use all the time. I have practiced thousands of times and have performed thousands of live entries. I know them very very very well. I prefer entry methods that need to be broken out of range or squeeze. It needs to. It needs to. I will enter with flow and what the market dictates either buy or sell. I will know very soon after I enter, if it’s playing out correctly to my expectations or something has gone wrong. If it does not play out right I will close out with minimal or zero loss and go back to the waiting line. Entries are something a trader must accomplish as their own personal quest. I would recommend 6months of constant practice to be anywhere near effective. I guarantee a trader will learn more than just entries after that much practice. After entering as per my own personal entry methods I will move sl to be of that position when I perceive the need to. Then my job is done. I have controlled the risk and now that position is at the mercy of the market.

Q. What is your percentage of successful entry?
A. I can vouch my entry methods and I know I can successfully enter a market most of the time and at least move the sl to breakeven. If I were to put a hard percentage, I would say 80% of my entries do exactly what I expect it to do and have its sl to be sooner or later. 20% would unfortunately not work out and I will close out the position with minimal loss or zero loss most times. If im present infront of my computer to manually enter the market, I would never use 100 pip stop losses on any timeframe, which is what I consider a sloppy entry. Losses I encounter will be 20-40 pips, but smaller on most occasions. I prefer to watch the actual market movements on 5min chart after manually entering and consider 5min chart as movements that are actually happening in real time.

Q. Why enter buy and sell? Isn’t that hedging?
A. Seemingly. When I first started trading I was just like all others. I was looking for perfect set of indicators telling me buy or sell. Then I realized that I have no power or the intellectual capacity to try and anticipate where the market might be heading to. It was a lightbulb moment. I saw past the misconception most traders hold against entering both buy or sell of particular currency pair. Trust me, there is more to it than first meets the eye.

Q. What are some of the strengths behind your method?
A. Infinite yield, allowing the market and my positions to make me my profits and not the other way around.

Q. From other successful trader/investor who would you compare yourself to and why?
A. Jessie Livermore and Warren Buffett. Jessie Livermore’s concept of sending out probes (small positions before a major investment) into the market is similar to what I do. Warren Buffett’s concept of holding stock indefinitely is what I also do with my positions in forex.

Q. Where would a trader find difficulty behind the concept of your method?
A. Patience to wait for extended periods, often days and weeks. Unbending faith in ones ability. The reward is definitely worth the wait.

Q. Why do you think most traders fail?
A. Not knowing what to do and when. Traders should be vouching their own ability not the forum community. Also only choosing what they wish to believe and see.

Q. So what is the required ability of a trader?
A. This is the only job requirement: To allow the market in dictating opportunities and continuously executing clean low risk entries as per ones own entry methods on both buy and sell of the same currency pair. That’s all it’s required.

Q. Which pair of currency do you focus on?
A. Every pair of currency that is available except exotic. I have no regards for spread from my broker. Currently Im holding 170+ positions across the board. Every weekly/monthly trend accounted for and eager to add more and more and more.

Q. What is the first surprise an intraday trader moving into long term trading will notice?
A. Intraday trader targeting 2% increase on capital per week will be surprised to see that they can attain so much more by just holding onto their position and letting the market and time grow it for them. Also they will notice that it is a completely different type of stress.

Q. You must have huge drawdowns to hold that much positions.
A. Zero. All risk has been accounted for, all positions sl moved to be. Worst it will do to me will be a zero loss. Any losses encountered from sloppy entries on my par are already settled on my diversifications. I consider drawdowns when position is negative in loss. I dont consider it as a drawdown when a position is up 2000pip last month but now only 1000pip up this month. Thats just part of trading and everyone needs to become a bigger person.

Q. Do you see yourself changing your method sooner or later?
A. Never. I truly believe in my method and I have my profit statement to confirm my beliefs. There is always room for improvements but at the moment I don’t see any necessity. It’s working extremely well at the moment.

Q. Future plan? And when?
A. Continue building my equity millipede. When I quadruple my initial starting capital in my trade balance (not including any of my unrealized profits), I will increase my lot size to 10 standard lots and focus more towards monthly candles. Based on last 2 years, I will comfortably reach my target in next 2-5 years but this also is at the mercy of the markets. You are never too late in forex. You are always too early.

Q. Do you have any worries in regards to trading?
A. Nowadays, my large unrealized profits worries me. I don’t know my broker on personal level and Im thinking about meeting them to arrange some type of special agreement, preferably in a legally binding contract. They have been content with my business and I have also been content with them.

Thank you for your patience.

Please step inside my focal interpretation through my charts.

Try and imagine how I see and think of the market, it will help.

And a warm thank you to everyone who had contributed in the thread the past few days. It is greatly appreciated.

Cordially,

Graeme

The next 6 charts are about how I see the market in general.

I will add more charts on specific topics few days later. Apologies for the delay.

Uploaded with ImageShack.us

Good evening, all

Next 5 charts is all i need for my manual entries for any currency pair. There are indicators however I assure all readers I dont rely on them at all.

But I would like to know what the other majority of traders are looking at.

Can anyone answer me why I might be interested in other traders view?

I spend most of my time/analysis on 5th chart for manual 1 hr entries.

The next 5 charts are part of my personal speculation and I request all traders to find their own battleplan. Please dont waste time and try use indicators that I have placed on my chart to help your trading. I say this again but in regards to entries, it is your own personal quest and with practice you will be able to form your very own battleplan like below but tailored to your very own focal/mental interpretation needs.

You need to create your own edge and the market will grow and reward your efforts.

Sincerely,

Graeme

Good morning all fellow traders.

Hope everyone is safe and warm.

I would like to now place a different spin on the matter.

I have no intentions to give misleading false hopes to traders but the following charts are a realistic expectations. It could be a cold awakening to some.

These next charts will definitely disappoint some of the readers. However your disappointment derives from seeking short term fulfillments.

If you wish to be a successful trader you need to lose that type of high expectations as of now.

There is no shortcut to aladdin's cave.

Sincerely,

Graeme

Good morning, pipz4me

Thank you for the warm remarks. It makes my efforts worthwhile.

Yes, you are correct to say that I will take profits on both downtrend and uptrend. Some retrace/correction like the gbpusd can last weeks or months. However it takes alot more to change my views on the main monthly trend that started from end of 2007 for gbp/usd.

However, nobody knows when a correction/retrace could be the start of something huge. Hence, I will enter market both buy and sell in such anticipation. Market is my judge and I follow its verdict.

In regards to how long I will hold onto my long term positions. It depends on personal threshold.

One of the options in diversification is also close out 1 or 2 of the biggest leg in the largest group of positions to add huge gain into trading balance. There is no rush to exit. I believe for gbp/usd, I did close out 1 of my largest legs from my biggest group somewhere in the middle of the prolonged retracement of 2009.

I still hold almost all my sell positions intact.

Last 1-2 months for gbp/usd has been a good uptrend. I have a group already forming on this uptrend. This could be start of a something huge and I will let the market show me its intention.

Sincerely,

Graeme

Good morning, bdcurrie

Thank you for your contribution and the warm remark 2 pages before.

Yes, most traders look for answers and the answers are awaiting for them from practicing entry. It is the basic hurdle all traders need to accomplish first. There is always a better way to enter.

I have practiced far and wide to reach this far and yet I still make mistakes and still learning. However it is almost like driving my car.

Sincerely,

Graeme

Good morning, Eklavya

Thank you for your feedback. It is appreciated.

Due to alot of requests, I will spend some time just going through the topic of entries. This will hopefully add some new insights.

One of the secrets to entries is to piggyback ride the mass of majority of traders. This may already be known to the experienced traders but please allow me to expand on this for all the readers.

My entry methods are mostly based on areas where price needs to breakout. Price cannot stay static and remain in a range bound. It needs to breakout and I will be there on the sideline waiting and watching this happen.

Now, let me show you what I mean by piggyback riding other traders. Even if you have practiced your entry methods a thousand times and your skill is more than competent, you require the assistance of the other traders. Let this soak in your thoughts.

Imagine you intrepreted the perfect pennant breakout on the charts. It will be only considered perfect opportunity when other traders/banks/rest of the world also jump into the participation and actually moves the price out of the range that needs to breakout. Before that happens its not a breakout.

I would like to use the phrase 'compelling momentum.' I anticipate the flow first and only enter with the rest of the crowd when they are climbing on board. Im using their participation to help my position to make at least breakeven. All I do is cheer with the crowd whether its a buy or sell. I never enter first and then expect the market to follow me. You are never too late in the markets, you're always too early. Dont forget that please.

I asked in post 146 why I would have indicators on my charts and yet I dont use them?

Nobody answered or perhaps maybe I was too vague.

Sincerely,

Graeme

Good morning, pip_daddy

Thank you for your contributions into this thread. It is appreciated and I hope all readers learn something from the replies generated.

Im reading your post after I just posted about compelling momentum. You read my mind first.

80% success rate is nothing impressive. Humans cannot comprehend what they perceive to be impossible. I assure you nothing is impossible. Running 20km marathons is beyond most humans capabilities and yet people can still achieve this by waking up early in the morning before work and going for a long run. As the time goes past, they will find that they can run alot longer and easier. After months of practice they will look back and only then they can really reflect on their achievements.

Please allow me to correct any confusion. 20-30 pip stop loss daily entries is impossible for me as well. Perhaps I wasnt clear enough in my earlier posts. I will enter from dailies when I know I will be away from my computer to do any manual entries. Upon my intrepretation I will use a larger hard stop loss or open a position with no stop loss, it depends on the strength of the trend that is happening. Its the manual entries I perform from mainly 1 hr charts and then I scan 5min chart to see the actual price movements in real time to judge when to move stoploss to be or let it endure more. The manual entries usually has 20-40 pip loss on unfortunate scenarios.

Does it sound queer when I say that watching the 5minute chart is like listening to music?

I can hear the rhythm, pace and the crescendo.

Sincerely,

Graeme

Good morning, Damien

Yes, absolutely. Traders love them and I need their assistance.

Your contributions here is greatly appreciated.

Sincerely,

Graeme

Good morning, all

In regards to questions about brokers.

Im aware U.S based brokers do not allow hedging. I do not understand why they would implement such measures. There must be a valid reason but I dont personally see any reason for this type of measure.

The strength behind my method is to anticipate movements for both buy and sell.

Im aware that non U.S brokers allow hedging and thats how it should be.

Im aware of the hassle to use multiple accounts but Im sure everyone can work around this minor hassle.

Sincerely,

Graeme

Good morning, all

Thank you for your interest in this thread. It makes my efforts worthwhile and I feel satisfied at the current progress.

From the last 2 weeks of my contributions here at this forum, I have noticed by first hand some of the fears traders hold.

Even though I have tried to address these problems, I know my efforts is against multitudes of bad habits originating from one bad trader to next.

I wish to address some of the common known myths about the markets.

1. Money management
You will find many traders discussing money management here and there. Most discussions start like this, 'So everyone. With this system all you need is good money management. For good money management, you risk 1% of your capital and aim for 2% growth.' Then everyone will nod their heads in approval and applaud each other at this breakthrough.

The above plan for 1% risk for 2% growth is sensible. Not feasible but sensible. First I would like to address the 2% growth. Why stop at 2%? Who is telling you to stop at 2% growth? We all know market has cycles of good trends and cycles of no trend. It is our responsibility to milk every single pip out when there is a trend. You would be risking 1% risk for 100% growth or more. Ofcourse the accuracy will drop dramatically however you are stopping your own growth by setting pre-defined exits. Market moves 2000 pips in one month, you enter 5 times for 2% growth each. Since its a very good trend you add 10% capital growth into your trade balance. And then you bask in the glory because thats an excellent return? Trust me, if the market moved 2000 pips for you in one month and if you banked only 10%, you are not reaching your potential. Period. When I know from my experience that the charts are telling me a good trend I become very aggressive in stacking.

1% risk? Most traders will say, 1% of my capital is $50 so my stop loss is 50pips so my lot size is 0.1 or $1 per pip. Your risk should really be your chance of losing out in the market not a pre-defined loss. You should really be saying, I know I have performed my breakout entry a thousand times and I can see that a 'good' setup is occuring. Hmm... I give myself 20% chance of losing out with loss and 80% success of at least making breakeven. 20%:80% thats 1:4 risk/reward so I will enter. Hmmm... no participation from other traders.. uh oh not a good sign.. hmm.. i will close out now for -15 pip loss.

But, most traders will enter with pre-defined stop loss. They enter with 50 pip stop loss because the average daily range dictates so and considers that breathing space for their position. I would never allow a position to hit 50pips loss if I knew at -3 pips that something is wrong.

Im not implying that only my thoughts are correct but there is a certain degree of pessimistic views traders hold and it gets passed around.

2. Protect your capital
Another common myth thrown around alot. Everyone should be safeguarding their capital reserve. From what? From yourself and your thoughtless, pointless entries at times when you should be watching everyone else. Does traders realize how a good entry also protects their capital? Unfortunately not. Knowing a good setup and bad setup will avoid thoughtless punts, hence protects your capital from any unnecessary losses or drawdowns. Thats how you protect your capital.

Step outside the bounds of human imagination. Its why we have lightbulbs, combustion engine, microwaves, airplanes.

Sincerely,

Graeme

Good morning, pip_daddy

You are absolutely correct. My very large unrealized profit is starting to worry me. Im also looking at ways to become a broker myself for my own personal trading.

However, I can say brokers wont play folly as I do bring them good business. They make money on spread everytime we enter market. But you are correct by saying I should be doing something.

Sincerely,

Graeme

Good afternoon all fellow traders

Before I post the next group of charts I would like to take this opportunity just before the charts to say something important and hope it becomes a cold awakening to all.

Most of us will unfortunately fail as a trader. Vast number of people will lose great deal of money, their home, business to ventures like forex trading. Forex trading is the apex of high risk/high return. And this lure will attract countless souls forevermore. Forex is now mostly made up of overbloated hype and false hopes which devours innocent souls and robbing them blind in a sense. It can financially and emotionally ruin people.

Alot of readers are still searching for the exclusive formulae to solve their problem. This business is hard and its not going to be that easy. You have to earn your learnings.

Now, if I were to choose which part of my contribution in this thread is worth remembering is the next part Im here to say.

Open a demo account with 5000USD and leverage 1:100. You can watch the market anytime that suits your trading. Only one rule, enter only sell if the price is below the daily open or enter only buy if the price is above the daily open (of asian or london). Stick to this rule. Enter with 20 pip take profit including spread and 20 pip hard stop loss from entry. You cannot close the position unless you take 20 pip profit or you lose 20 pip loss. Also you cannot overlap your positions. Only one position open at a time. If the price was higher than open but later went below open then you would only enter sell. No entry methods to be used. Just enter blindly but only buy if higher than open price or sell if lower than open price. If you blow your demo account open another one at same 5000USD and 1:100.

I want you to achieve x3 20 pip take profits before quitting for the day. You failed if you couldnt achieve x3 20 pip take profits for the day. Do this everyday without fail. After 6months you will be a completely different trader.

What does this exercise accomplish? It conditions you to be an effective trading machine. You will connect with the market on subconscious levels. You will be able to see, hear and smell the market. You will have different look in your eyes. Your trading decision are now almost reflex actions.

Currently this is you,

Market -> Indicators -> Your thoughts -> Your action

After this training,

Market -> Your action

After 6months of this exercise, your subconscious decisions will enter the market for you to the second of market movements.

You will have amazing clarity in market sentiments, and can hear/out think what the other traders are anticipating. Most of the time you do not require a hard stop loss cause you can judge very soon after entry whether its going to work out or not.

With this amount of skill any sensible method becomes deadly and you will listen to your inner voice than what you see on s/r lines, trendlines. Price action becomes slow motion in your focal interpretation.


Sincerely,

Graeme

Good evening, saintsurfer

Thank you for the clarification.

Daily achievement of x3 20 pip take profit with no regards to any losses but cannot have more than one position open at a time. If you enter and the market takes your -20 stop loss you still need to get x3 20 pip take profit.

Dear readers this simple exercise will help you turn into a trader and you will be amazed at the related discoveries along the way.

Sincerely,

Graeme

Hi Someone

Thank you for your continued interest.

Yes, I would prefer to manually enter the market as per my own personal entry method somewhere near the open of the daily candle. Im not in a rush to build my positions but I do religiously try adding everyday.

I could be wrong but I feel that you already hit the first emotional hurdle and you are stalled.

Feel free to ask me anything.

It sounds like alot of trouble but once you get into routine, time flies. Makign money from the markets is the hardest anyone could ever do.

Sincerely,

Graeme

Good morning, Dilip

Thank you for for the warm remark. It makes my efforts worthwhile.

Dilip, there are far more emotional hurdles than one would expect. Are you ready? I applaud you for your intentions

Sincerely,

Graeme

Good morning Rednose,

Thank you very much for the warm feedback and the voucher.

I will also visit one of your threads with great interest

Sincerely,

Graeme

Good morning, ozziedave

Thank you for your support from the very begining of the thread.

Sincerely,

Graeme

Good morning, Charvo

Thank you for great question.

If you practice one of your entry method for 6months on all timeframe, you will learn so much more than entering the market. It is the only way to learn how to trade. I requested all readers a few posts earlier to a simple exercise for the next 6months which wont be simple to most when they start.

I urge all readers, there is no easy road to aladdin's cave. It takes alot of hard work and it starts from perfecting your entries and developing a subconscious connection with the market.

After 6months of practice you will notice that everything you learned for yourself is already listed in the james16 thread. You will smile then.

Please take my word for it.

Sincerely,

Graeme

Good morning, sixx58

Thank you for your question.

Nobody knows when the start of next 10 year main trend is or when its ranging or when its correcting. Yes, I enter everyday when a good low risk opportunity that I know very well that I can control its risk appears for me. Its like shaving for me.

Unfortunately the only thing we can do for us is to participate into the market to the best of our ability.

Trust me the rewards are more than its worth.

Sincerely,

Graeme

Apologies to all but chart 2 has been corrupted on the image sharing server.

I will add more charts tonight.

Keep practicing. It will get easier.

Sincerely,

Graeme

Good morning, Fifty

Thank you very much for your correspondence and the chart.

Im very happy to see that you have started.

You will be very pleased with the result.

Sincerely,

Graeme

Good morning, Dlppat

Thank you for your correspondence.

Im glad to hear it and I know you will be a bigger person when it happens sooner or later.

Sincerely,

Graeme

Good morning, all fellow traders.

It is very cold winter morning here. As I get older, one of the things that doesnt go well along with me is the coldness. Stay warm and under loving care from your loved ones.

If I may, I would like to tell another story.

I name the story, The Art of Perfection.

During my time, I had witnessed, met, heard about well known individuals who practices the art of perfection.

The first person is a dear old friend of mine. He is unknown in person to many but I find his life story definitely worth sharing. His name is Joel (not Joel Rensink, aka TheRealThing). Joel was a proud and successful owner of a very well known pizzeria in Sydney Australia. He has sold his interest in his business and the secret behind his dough making to a company who is currently expanding very rapidly as a chain. His pizzas are quiet simply amazing. I have to admit some of his secrets has worn off from the transition from his hands to this new company but even still they are great pizzas. Joel loved making pizzas. Even though he was the owner, he would never come out of the kitchen. He personally designed and decorated each pizza sold. Every pizza that came out of his woodfire was more than just food but his life work. His pizzeria was not even on the main streets but tucked away from common sight but it was always fully booked. People appreciated his pizzas and he returned his appreciation by always taking one extra step in detail.

Most people believe making a pizza is simply googling a receipe (or joining a forum) and just following the steps from 1 to 10. Ofcourse the result will still be a pizza but whether it will taste good or bad is distant second. Joel had a passion for pizza since he was young. His parents are both avid pizza makers as well. Joel just knew he was going to be making pizzas for the rest of his life. He took his interest many steps further than most people would. Joel hated using the tomato sauce base from a commercial bottle. He searched his answers far and wide and spent 3 years just on the tomato sauce base. One evening he told me over a nice hot slice that he has used everything from grinding mandarin peels, fermented cheese extracts, peanut oil, and sunflower seeds. He didnt continue telling me his secret and I had no intention to learn it but it was amazing to hear that he really did search far and wide. And I wasnt surprised as I can simply taste the richness of quality. Then he continued telling me that he spent a further 3 years again in perfecting the dough base. He considered thin base was too thin and pan base was too thick and he definitely didnt want to use commercial base. Due to him I believe we now have middle crust but thats just what I think. He learned everything from germification of yeast, perfect cooling temperature to proof the base, and the perfect measurement. His pizza base is so chewy and delicious I always finish eating the crust handle. Im not surprised at his long term success.

About 20 years ago I had the distinct pleasure of personally viewing Vincent Van Gogh's 'Portrait of Dr Gachet' at a New York viewing. A very well known piece by Van Gogh and one of his last works before death. Even though I appreciate this calibre of art unfortunately I do not know the finer details in what makes an art so valuable. But, my initial viewing took my breath away. It was simply amazing and I can feel and see the immaculate details Van Gogh contributed to this piece. Some say he was insane when he drew it but I say he was insane from the heights of his enlightment. The depth of every minute detail were amazing and every stroke of his brush appreciated. I stared at it for a very long time and strangely I can feel Van Gogh's presence reaching out into my mind. The piece was sold for $80 million back then. Its whereabouts is currently unknown.

9.58 seconds is the current world record for fastest 100m mens sprint, carved by Usain Bolt. I can only imagine the sheer determination and focus required to be the fastest person in the world. Beating over 6 billion other lives. To be of that calibre, everything you eat, drink, sleep needs to be watched. Continuous track exercise, gym workouts and other repetition of rigorous exercise regime. I wouldnt be surprised if most give up or breakdown emotionally. I truly wonder where the bounds of human capabilities are. Can you imagine to run 10 metres in the time of pronouncing the word 'one?' Most people cant dream of it but they know its now possible.

They all practice the art of perfection. Creating financial wealth from their endeavours is distant second. Once you reach this type of pinnacle success money follows you. My pizzeria friend is now a multi-millionaire, van gogh unfortunately didnt see much wealth from his work while alive but now they are priceless in value. Fastest person in the world pocketed over $15 million last year on all the endorsements. However they wont look back and rub their hands in glee because of the millions. They look back and smile because they have beaten everyone and became the top of the industry.

We are all here because we all want to be professional traders. What seperates winners from losers is the determination they exert onto their learnings. Winners do everything to learn and purposefully choose the harder road. They want to be top of their game and they focus on perfecting every move they do in the market. Subconsciously they can bend the will of the market into their focal interpretation. Just like Michael Jackson doing his 1000th perfect moonwalk we should be able to perform our 1000th perfect entry to the same awe-inspiring effect. Then you dont worry about the profit cause you will know that your actions are top of its calibre and money will follow you.

All guys think they are tough in one way or the other. Your exterior could be much bigger than your peers hence the wrong impression. But one day for the first time in years you try skipping rope. You will be surprised that you cant do 20. That's strange, Im still a big tough boy. So you try pushups for the first time in years. You cant do more than 20. Then you realize that the perception about yourself was incorrect. You are not as tough as you think you are.

We need to practice art of perfection as traders. And it starts right now in the right perception. Get ready to stream tears and anguish and sheer frustration. The rewards are worth it. If you can perform 1000th perfect entry just as effective as Michael Jackson performing his 1000th perfect moonwalk, you are of same calibre and I wouldnt be surprised that you are making as much as he does.

Sincerely,

Graeme

Good morning, Damien

That is fantastic.

Thank you for following my recommendation.

Sincerely,

Graeme

Good morning, Ben

Thank you for such a overwhelming feedback.

It has been my pleasure.

May I add, poor entries is the very reason traders face unneccesary drawdowns and losses. It is the area where most traders will fail. Nobody should allow/accept/even consider a 300 pip loss from sloppy entries. That is not the work of a professional trader. Professional traders should be able to whip the fly off his horses ears while on the reins.

The exercise will show your inner traits as a trader. I wouldnt be surprised if people find that they cant even hit x3 20 take profits everyday with ease. It will be a surprise to most.

After 6 months you will be able to hit x3 20 take profits so much easier and clearer. And this will be just the beginning of your accomplished insights.

With that much upskill you will be able to turn $300 or even less into many thousands more with relative ease as you can control/know your real risks from your optimum entry which has stacked odds onto your side by entering at the perfect opportunity given. You will also have complete understanding of market sentiments and can describe in great details. You wont even know how you came that far.

Dont be surprised that you just became a profitable trader.

Thank you again

Sincerely,

Graeme

Good morning, Willf

Thank you for your question. A great question.

Im well aware of jacko's anti-hedging; when a position gets stopped out and price moves away by 50pips or more, you would enter a buy/sell limit order on the same price as stopped out. So when the main trend resumes and the price returns it will simply pickup the order on its way. This is a great method and ensures that the trader stays with the main trend. I have no doubts jacko is a skilled trader and I value his contribution in this forum.

However, what if the main trend never comes back? Im aware that main monthly trends that has been ongoing for years will require alot of power to change direction however that doesnt stop the market to go into a correction for the next one year moving against the current main trend for many thousands of pips. Some corrections happen quiet often and can last several weeks. However I agree that eur/usd is prone to such big corrections. Or is this another misguided common myth amongst the traders? Im not sure if he has changed his method to take profit on both directions but the last time I heard he only trades one direction. Please correct me if im wrong.

The only reason I continue opening both buy and sell is to anticipate such changes/corrections because it can happen anytime, anywhere. I dont know what the market will do tomorrow or next month, all i can do is follow.

It doesnt hurt me to enter at a low risk and moving sl to be and letting the market either destroy my position or reward me. I will take any reward market gives through my diversification and keep larger legs for long term growth.

Sincerely,

Graeme