a couple quick definitions to get the kick the cat here
rr=risk/reward-the amount at risk compared as a ratio to the amount you make
opportunity-the amount of set ups a method gives you to enter the market in a period of time
expectancy- the amount of pips( or whatever you want but pips is best ) you excpect to gain(lose) employing a method per pip risked
in order to profit in the long run you must have a positive expectancy, this is a must. the amount of…Continue
in the vein of blog posts venturing away from predictions, analysis, and trade entries, a trend i m quite pleased to see, i thought i would throw out the topic of drawdown tolerance for discussion.
it is important to understand ones draw down tolerance , and taylor a plan that does not exceed these limits.
early on in my forex adventure ( about 5 years ago ) i wanted to get my feet wet with live trading so i started trading a very simple strategy using atr. in 4 months i…Continue
A number of good people mentioned gu buys around this level without giving specific stops and entries. since it falls within my criteria for a buy as well i ll take it a step further and illustrate the trade. this trade could easily ( as always ) still turn into a loss. i like to try to post them fairly quickly after entering so its obvious i m not cherry picking. lets see what happens with this very smple s/r trade…Continue
this post is intended for new traders who want a simple approach they can expand on and make thier as time goes on. it is not intended to to give triple digit monthly returns. just because you re not wayne gretzky doesnt mean you cant play hockey.
dont try to predict, just roll with whatever is happening. as you become comfortable with seeing the signs that a market may bounce off a level start to experiment with managing the process as it moves in your favor.
not sure where…Continue