This is in a few words, my strategy and mentality when trading. Enjoy.
• Max risk per position 0.5 % of closed equity
• Must not exceed 2.5% of closed equity in open trades
• Have a lot of confluence in your trades, minimum 2 indications and major areas + S/R and price action.
• First priority should be risk management, always cutting risk when you can, which is moving your SL closer
• Always assess which quality type a trade is, and risk accordingly.
• Always plan your trades from A-Z, with SL's well planned behind possible support/resistance zones. How far you think your trade is going, I for example use technical analysis and have many confluences in a given trade. i.e. MACD divergence + swing high + pinbar sticking through good price pivot zones, a few MA's or big round numbers.
• My second priority when I have cut the risk on a trade to break even, only then I focus on managing the trade for profit.
• Trading psychology. When I trade, I am constantly reviewing my thoughts. Analyzing what I'm thinking and why I'm thinking it. This helps me tremendously in staying focused and keeping my emotions effecting my decisions. for example. 'why do I want to set the stop loss here?, is it too tight? am I being too greedy? am I setting it too tight because then the compounding on the position sized trade will be so great (greed) but with the SL at a vulnerable area... or at a protected area behind ma's, BRN or zones? as stated above. These are questions and more I ask my self constantly when making trading decisions. In short, keep your emotions from effecting your trades.
• Don't worry about losses.. They are half the fun. It feels great cutting risk by half from 30% to 15% and then the trade turns around and hits my stop loss. Because I have cut my losses short! I am often making my losses small. And that feels good.
• Don't have unrealistic expectations.. Don't expect to make 25% a month consistently without the inherent risk. I look to make 5% a month, but would gladly accept 0.5% even. I have heard prop firms look that traders make around 2% a month consistently. Don't you see? its about low draw down, low risk, consistent returns. Not the 25-50% a month.
I thats it in a nutshell. How I trade. It is all about risk management for me.
Best regards, Stefan.
• Max risk per position 0.5 % of closed equity
• Must not exceed 2.5% of closed equity in open trades
• Have a lot of confluence in your trades, minimum 2 indications and major areas + S/R and price action.
• First priority should be risk management, always cutting risk when you can, which is moving your SL closer
• Always assess which quality type a trade is, and risk accordingly.
• Always plan your trades from A-Z, with SL's well planned behind possible support/resistance zones. How far you think your trade is going, I for example use technical analysis and have many confluences in a given trade. i.e. MACD divergence + swing high + pinbar sticking through good price pivot zones, a few MA's or big round numbers.
• My second priority when I have cut the risk on a trade to break even, only then I focus on managing the trade for profit.
• Trading psychology. When I trade, I am constantly reviewing my thoughts. Analyzing what I'm thinking and why I'm thinking it. This helps me tremendously in staying focused and keeping my emotions effecting my decisions. for example. 'why do I want to set the stop loss here?, is it too tight? am I being too greedy? am I setting it too tight because then the compounding on the position sized trade will be so great (greed) but with the SL at a vulnerable area... or at a protected area behind ma's, BRN or zones? as stated above. These are questions and more I ask my self constantly when making trading decisions. In short, keep your emotions from effecting your trades.
• Don't worry about losses.. They are half the fun. It feels great cutting risk by half from 30% to 15% and then the trade turns around and hits my stop loss. Because I have cut my losses short! I am often making my losses small. And that feels good.
• Don't have unrealistic expectations.. Don't expect to make 25% a month consistently without the inherent risk. I look to make 5% a month, but would gladly accept 0.5% even. I have heard prop firms look that traders make around 2% a month consistently. Don't you see? its about low draw down, low risk, consistent returns. Not the 25-50% a month.
I thats it in a nutshell. How I trade. It is all about risk management for me.
Best regards, Stefan.
A person is only limited by the thoughts he chooses.
Good one, Stefan. If you have some interesting charts, with 'best of the best' trade examples, please don't hold'em back.
Surround yourself with people whose eyes light up when they see you and who have no agenda for your reform.
Mar 18 2011 at 10:03
Indeed sounds very good.
How about some charts? 😄
How about some charts? 😄
Have to run for now! but feel free to ask me Q about the trades above.
p.s. the two trades above are one of the better trades I've taken ;)
A person is only limited by the thoughts he chooses.
Mar 19 2011 at 02:34
I think you have too many rules and too many lines on your charts - but such is the case with most traders
I have only two
1. be patient
2. follow the market
anyway, whatever rocks your boat.
I have only two
1. be patient
2. follow the market
anyway, whatever rocks your boat.
compounder posted:
I think you have too many rules and too many lines on your charts - but such is the case with most traders
I have only two
1. be patient
2. follow the market
anyway, whatever rocks your boat.
Yah. We'll see :)
A person is only limited by the thoughts he chooses.
Mar 21 2011 at 07:58
Indeed, you have so much going on there...😄
Is the system your own development? How long have you been trading it?
Is the system your own development? How long have you been trading it?
wilkinson posted:
Indeed, you have so much going on there...😄
Is the system your own development? How long have you been trading it?
This system is not my development. It is basically support resistance + confluence with TA & PA
I was taught it mostly by james16group.
I've been trading for a year now.
A person is only limited by the thoughts he chooses.
Mar 21 2011 at 16:23
Voffi posted:
wilkinson posted:
Indeed, you have so much going on there...😄
Is the system your own development? How long have you been trading it?
This system is not my development. It is basically support resistance + confluence with TA & PA
I was taught it mostly by james16group.
I've been trading for a year now.
I see.
I've checked your profile and I see only one active system - is it the same system? The results (+177%) are excellent.
Have you tried programming the system?
wilkinson posted:
Voffi posted:
wilkinson posted:
Indeed, you have so much going on there...😄
Is the system your own development? How long have you been trading it?
This system is not my development. It is basically support resistance + confluence with TA & PA
I was taught it mostly by james16group.
I've been trading for a year now.
I see.
I've checked your profile and I see only one active system - is it the same system? The results (+177%) are excellent.
Have you tried programming the system?
Well, its the one I'm currently trading. I've used the same trading methodology since I started in february last year.
The (+177%) account is like the name of the system suggests. ''Fooling around without position sizing'' nothing more and nothing less.
No I have no intention on programming it. To program this system, I would have to code how I think.
A person is only limited by the thoughts he chooses.
Mar 22 2011 at 07:47
Great trading..
I've also noticed the account started trading on January. Did you encounter a margin call before with the system? As you've saying you've been trading it for over a year now.
I've also noticed the account started trading on January. Did you encounter a margin call before with the system? As you've saying you've been trading it for over a year now.
No, I've never had a margin call.
I have been trading the same methodology for a year.
I have been trading the same methodology for a year.
A person is only limited by the thoughts he chooses.
Mar 22 2011 at 13:59
Voffi posted:
No, I've never had a margin call.
I have been trading the same methodology for a year.
Got it.
So can you elaborate on the trading system?
wilkinson posted:
Voffi posted:
No, I've never had a margin call.
I have been trading the same methodology for a year.
Got it.
So can you elaborate on the trading system?
anything more specific you want to know?
A person is only limited by the thoughts he chooses.
Mar 23 2011 at 12:36
Voffi posted:
wilkinson posted:
Voffi posted:
No, I've never had a margin call.
I have been trading the same methodology for a year.
Got it.
So can you elaborate on the trading system?
anything more specific you want to know?
Well, I thought the trading system methodology question is quite specific... 😀
well, in my first post I described what makes up in short, my trading style and methodology. As you see there, there are a few points stressed, like. Money management, risk management, trading psychology and technical analysis. These are all elements that make up my trading system.
So. Could you please be more specific :) I don't feel like writing a book on this thread :)
So. Could you please be more specific :) I don't feel like writing a book on this thread :)
A person is only limited by the thoughts he chooses.
Anybody, feel free to ask me questions. I'll answer them as well as I can.
regards, Stefan.
regards, Stefan.
A person is only limited by the thoughts he chooses.
Why do you think the mortality rate is so high among traders?
Would you recommend any books?
Would you recommend any books?
Surround yourself with people whose eyes light up when they see you and who have no agenda for your reform.
everything you need to be profitable is available for free on the internet.
speki posted:
Why do you think the mortality rate is so high among traders?
Would you recommend any books?
I think it all boils down to a few elements that need to be in order. Money management, risk management, trading psychology and the trading analysis. If a trader doesnt develope one of the elements properly, It could be fatal for his account.
naah, well perhaps 'Reminiscences of a Stock Operator' but mostly for its entertaining value, but I guess some lessons can be learned from it. I learned to trade through studying price action and technical analysis since february last year. I began studying 24/7 and after 2 monrhs (beginning of april) I joined the james16group. I specialized in a system there called the BASE system, one of the teachers at the james16group, the one that was developing the base system, me and him have talked a lot together, and I've learned a lot from him. There were other teachers at the J16group, one teaches trading psychology, a couple teach PA/TA and or have their own system they've developed. I also learned risk and money management from the threads there by the techers. But at the end of August I took a break. I was taking such long hours studying and trading that I started dreaming almost every night about the trades I was in. The break lasted until january.
Regards, Stefán.
A person is only limited by the thoughts he chooses.
