FX Club

[Papsak]

looks like it is heading to resistance at 113.800

BTW have been using supply SD zones on 1D on SA CFD's with reasonable success - using very large stops (min 5% - upto 15%) and a 2 point entry, 2 point exit SL, and a 3 point exit TP (1/3, 1/3 then trailing SL). Seems to be profitable - holding positions for a long time though (weeks to months) so interest becomes an issue. Trying to get in some shorts into the mix. And of course, markets have been ranging somewhat, need to also sort out a trending system. Certainly not a get rich system - with such large stops position sizes are tiny.

But the SD part I got from you - cheers again for that.

 

[FxJalarupa]

Anytime man!

Anytime... Yes the trade above got banged, but hey... If you size yourself correctly you will live to fight again!

ZAR traders beware we are entering Downgrade season...!!!!

Volatility should be colourful!

 

[FxJalarupa]

BUMP -

Is there any interest in revisiting this project?

 

[Papsak]

I am always interested! This year decided my mantra would be control risk - ALWAYS. Having been tracking my trades, my win percentage is excellent - but seem always seem to let a bad trade become a terrible trade- frequently adding to them. Cannot seem to cut them short. Anyway, I know my weakness - just working on it. On the plus side - I am up for the year, which makes a change.

 

[FxJalarupa]

Great stuff Papsak!

If it helps... try scaling out of a position that you are taking heat on, before it becomes too much of a painful experience...

Having the mindset that a loss only represents x% of your account will then help you emotionally deal with loss, and by scaling out one can delay the full loss of x% and one only takes a full loss if one takes a full loss... in other words you lose your total risk capital and subsequently have experienced a "actual" loss...

Think about this concept of cutting lot size when well in advance of your actual stop loss

IE if my stop is 45 pips away and price closes beyond a certain price on the timeframe you are watching, then cut your lot size in half...

When you do that you now are able to have price move two times further from the point of halving your lot size before you realize a full loss... This practice take the emotion and edge off from being underwater in a trade... it also allows those pesky pit traders to move the market and take out stops without necessarily taking you out as well (assuming you were correct in price / direction but wrong in timing)

At the end of the day trading on margin is all about being able to survive your mistakes and live to fight another day...

If you embrace and understand this philosophy then you can be like me... I haven't had an "actual" loss in over 50 trades but I have not been 100% correct in all of those trades either...