ALL YOU NEED TO KNOW ABOUT TRADING

Discussion in 'Development and Psychology' started by TheRumpledOne, May 6, 2014.

  1. TheRumpledOne

    TheRumpledOne IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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    ALL YOU NEED TO KNOW ABOUT TRADING

    * Price either goes up or down.
    * No one knows what will happen next.
    * Keep losses small and let winners run.
    * POSITION SIZE = RISK / STOP LOSS.
    * The reason you entered has no bearing on the outcome of your trade.
    * You can control the size of your loss (skill) but you can't control the size of your win (luck).
    * You need to know when to pick up your chips and cash them in.

    Expectancy = (Probability of Win * Average Win) - (Probability of Loss * Average Loss)

    You cannot control the probabilities of wining or losing.

    You cannot control your average win size.

    The only part of the equation that you can control is your average loss size.

    PRICE ACTION

    “Now, 2 patterns of market behavior happen on a regular basis:

    1) the price breaks to new high's (or low's)

    2) the price reverses from new high's (or low's)

    They happen regardless of time frame .

    They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist.” - H. Rearden

    1) Price will either breakout of the high, low or both of the previous bar

    2) Price will not breakout of the previous bar.

    You cannot reduce it any further. Anything else complicates the issue.

    ENTERING A TRADE

    You either decide to:

    1) Wait and do not enter a trade

    2) Trade a breakout

    3) Trade a reversal.

    Those are your ONLY 3 options.

    That is all you need to know about trading.
     
  2. TheRumpledOne

    TheRumpledOne IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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  3. AusDoc

    AusDoc Well-Known Member

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    Hey TRO

    I'm thinking of getting myself one of these T-shirts. Maybe you qualify for one too. ;D

    [​IMG]
     
  4. TheRumpledOne

    TheRumpledOne IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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    No... there's a lot I haven't seen... working on my bucket list.
     
  5. jack

    jack Administrator Staff Member

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    TRO, just watching your video on this thread.. and was curious: How/why did you get banned from FF?
     
  6. TheRumpledOne

    TheRumpledOne IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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    I was informing traders that there is no such thing as a FIXED SPREAD in Forex. I was using EFX Group ( now MT TRADING ) as my broker and EFX provided Level II Quotes. There was no fixed spread. I got banned because they said I was spamming. This was long before I became an IB for MT Trading ( no longer an IB because I refused to succumb to Dodd-Frank ). In fact, I didn't even know what an IB was at the time. EFX Group was not advertising on Forex Factory at the time.

    Within a month EFX Group became an advertiser but the ban was not lifted even after the president of EFX Group put in a word for me.

    And I never back down... NEVER!
     
  7. jack

    jack Administrator Staff Member

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    Yeah, I've had my issues with FF as well.. no worries. :)
     
  8. TheRumpledOne

    TheRumpledOne IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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    My mistake was fighting back and proving my points.

    Now, I state my points ONCE... and if someone wants to give me a hard time, my standard reply is...


    "I am not forcing you to accept my concepts. I only request the traders to review the market from time to time keeping in mind my concepts and if found suitable use in the trades or just ignore. Thanks for your opinion."
     
  9. TheRumpledOne

    TheRumpledOne IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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    https://youtu.be/h_WuFbJCrMw
     

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