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Consistency

Will we go one more time to 137.000?Hey traders! Hope you are doing well! To be honest with you, there is nothing special for me about the markets for now. Still there is an indecision between bulls and bears. According to my main list there is only one pair for now. It is GJ. Higher timeframe shows me the bear strength and think it will continue. So for now we have a range between 134.000 - 137.000. According to my trend line on 4H timeframe we can go one more time to 137.000. But let's see how the market will open on Monday. Happy weekend to everybody!
Long
by Infinity_Limits_Trade
What does consistency in trading mean?I just want to share what I find today about consistency. Many of you might already know what it means to your trading. I have spend many months from a beginner in this trading world, to... still a beginner. I have always question myself when will I become a consistent profitable trader. How can I tell if I am one? Mark Douglas suggest that we take a 20 trades sample for the strategy, the more controllable variables for a trade, the more easy for us to replicate the strategy. The result will be what it is. Then modified, tweak, and learn then refine the strategy. Then I think to myself, what if that 20 trades sample size turn into continuous measurable tool for consistency. Introducing 20 simple moving average trade, where we use result of the trade to plot simple moving average. I know it sounds so simple and obvious. It takes me almost a year to realize this. Instead dollar amount, we use R as unit of risk (from Van Tharp), R as unit of reward. So that we transform $ amount world to "R-world". 5 years from now, $ amount of a transaction might change, but we will be always risk 1R for every trade (1R might be 1%, 2%,...). Overtime, if we see SMA of results of R kind of swinging around a zone, that is consistency. Example in the graph. That's all, thank you for stopping by. I hope you have a good journey in trading. Keep calm, and be a profitable trader.
Education
by Bach_Tran
GBPUSD - will the pair hit 1.3300?Hey traders! Happy Saturday to everyone! Hope you are doing well! Let's remind our last week especially on GU. Zone 1.3000-1.3025 was very strong for me. My main target was pretty far and price didn't get that region. Anyway we were 2% profit (trailing stop) and I am happy with that. What do we have now? Our main support/resistance region was broken, and correction was already retested it. On the 4H timeframe I also see the inverse H&S pattern and the price is telling me that the uptrend should continue. Anyway when the market will open - we will react! Hope the price will get to 1.3300 region
Long
by Infinity_Limits_Trade
GBPJPY back to 134.000?Hey to everyone! Hope everybody is doing well. After a good short on GBPUSD which we made today, I got another setup on GJ. The Pound weakness is still continue so on 4H timeframe we got a double top formation and new impulse to the downside was already formed! I am gonna patiently waiting for some pullback ( according to MA50 or another double top formation) Perfect scenario for me is a double top formation, it will be a new LH formation as well. So let's see how this will play out!
Short
by Infinity_Limits_Trade
Generating SRC ProfitsLet’s talk about SRC profits. We’ll talk about what they are, why you must have them, and how to generate them. So let’s get started. What are SRC Profits? Lately, I'm seeing all of these YouTube videos showing claims like this where someone said, “I made $1,088 in profits day trading.” Or someone claiming, “I made $1,253 in profits in three minutes.” Wow, look at this: “32,625 pounds in only 24 hours” And you know what? I believe that all these guys actually did these trades. But here’s the deal when you trade, you’re going to have trades that just work out perfectly. Yes, there will be trades where you make a lot of money. And for me, the question always is, are these SRC profits? So let’s talk about this here, because if you want to trade for a living, you must be able to generate SRC profits. So let’s take a few minutes and talk about this. S – Systematic So here is what SRC profits are. First, it’s an acronym and the S stands for systematic. Now, I don’t know about you, but I want to make my profits in a systematic way. Yes, of course, you can make money trading Tesla if you’re catching it at the right time. But you see, how exactly do you decide when to enter, and can you generate these profits again? You know me, I like to trade what I see and not what I think. I keep a special mug on my desk that reminds me of this. See, that’s why I use indicators. That’s why I have a trading strategy. Having a systematic way means that we have a trading strategy that tells me exactly what to trade, when to enter, and exactly when to exit. Sometimes you exit with a profit and sometimes, you do exit with a loss. Losses are part of our business as a trader. In short, I have a system. I love to trade based on rules and not based on my gut feeling, because whenever I traded based on what I thought, it only worked for a little bit. When I switched to trading what I see based on science, based on probabilities, based on rules, that’s when my trading turned around. R – Repeatable Let’s move on and let’s talk about the second point, the 2nd letter in SRC profits. So the second point here is repeatable. Without a system, it will be difficult to repeat the profits. Now, think about it this way. Let’s talk about Tesla . Let’s say that you caught Tesla when they announced a stock split on August 11th. And let’s say during this run you made 30% in a matter of a few days, or maybe you traded options and you made 1,000% in a few days. Can you do it again? Well, you see, if you rely on the next stock split then you might have to wait a few years. Think about it this way, is it better to generate $10,000 on a single trade, or is it better to know how to make $500 every single week? For me, I’d rather trade a system that’s generating $500 per week consistently than relying on the windfall profits. Yes, these windfall profits will happen in your trading career we’ve just talked about it. And it’s nice when it happens, but I wouldn’t rely on it. If you can generate $500 every week times 52 weeks, that’s $26,000. For me, that is better than being able to generate these windfall profits. This brings me to the next point. C – Consistent Profit The next one is consistent profit. I want to make sure that I’m getting consistent profits. Let me give you an example here. Would you rather have an equity curve like a EKG machine? Or maybe a nice steady line gradually growing from left to right ;) What is an equity curve? An equity curve is charting your account, of how your account is going. Now, I don’t know about you, but I wouldn’t want my equity curve to be like a roller coaster. Even if this roller coaster would make me more money I wouldn’t do it. I would rather make slightly less money but still have my hair instead of pulling it out with that equity. I’m not a nail biter but if I had this equity curve, this roller coaster, I would probably bite off all my nails. You know that there’s some traders who are doing exactly this. Now that you know what SRC profits are and why you need them if you want to trade for a living, let’s move on and let’s talk about how you generate these profits. 3 Things You Need To Generate SRC Profits – Number 1 So the first thing that you need is that you need to have a trading strategy or trading strategies. The strategies that I use are based on indicators and probabilities. You see, I know exactly what to trade, I know exactly when to enter, I know exactly when to exit. I know my risk, I know my potential profit, and I know my odds of realizing that profit or loss. If you don’t know my trading strategies yet, let me briefly mention them to you. So my bread and butter strategy is the PowerX Strategy, and I have written a book about this. During the pandemic I was trading a strategy called Theta Kings. This was perfect as the markets were crashing, along with the PowerX Strategy. Now, another trading strategy that I’m trading here right now is a trading strategy called The Wheel. Anyhow, let’s move on. 2. To generate SRC profits you need to have tools What is the second thing that you need to generate these SRC profits? Well, I am using tools that make my life easier. You see, I know my odds. I know my probabilities, I know what to expect and I couldn’t do all these calculations in my head. This is why I’m using tools like the PowerX Optimizer that helps me to find the best stocks and options to trade. The PowerX Optimizer shows me for any given stock the signal, the position size, how much I should trade, how much money I can potentially make, and how long I’m in a trade. All of this is important to me so this is why I love to have tools. And for The Wheel strategy, for example, I use the wheel income calculator. I've built a calculator that I’m using for picking the best stocks and options for The Wheel. You see, I need to make sure that I’m getting the very best trades for my trading. I personally would never trade without the right tools. It’s like trying to compete in a Formula One race with a Toyota Prius. I mean, nothing against a Prius, but you won’t win a Formula One race with it. And when trading your trading against some of the smartest minds in the world. Don’t bring a knife to a gunfight, have the right tools. 3. You need to have the right mindset So finally, number three, what is the third thing that you need here? It is the right mindset. What do I mean by this? You see, when trading there will be losses and you need to know how to limit your loss because otherwise these losses will be devastating. Who knows what I’m talking about? You see, you need to know how to control your risk. Take care of your losses. The winners, they can take care of themselves. Summary Now, here’s something to remember that is super, super important. Trading is a marathon, not a sprint. So super important and here’s why. Good for you if you made a $1,088 in profits in day trading, or if you made $1,253 profits in three minutes. And you know what? Good for you if you made $32,625 during the coronavirus in 24 hours. But let me ask you this, how much money did you lose before that? How much money did you lose right after you made these profits? Did you give it right back? You see, I see too many traders being blinded by these windfall profits, by these, “Hey, look at me. Look at what I did” stories and they don’t see the full story. This is why I’m doing this here to show you the full story. When traders don’t see this full story, when they just see this “look at me” stuff, they start chasing these dreams and they lose a lot of money along the way. You see, for me personally, I prefer SRC profits. Trading is a marathon, not a sprint. If you enjoyed this article, feel free to leave a comment below and share it with anyone you think may find this helpful.
NASDAQ:AMZNEducation
by rockwelltrading
1
5 Fundamental Truths of Trading:1. Anything can happen. Why? Because there are always unknown forces operating in every market at every moment , it takes only one trader somewhere in the world to negate the positive outcome of your edge. That's all: only one. Regardless of how much time, effort, or money you've invested in your analysis, from the market's perspective there are no exceptions to this truth. Any exceptions that may exist in your mind will be a source of conflict and potentially cause you to perceive market information as threatening. 2. You don't need to know what is going to happen next in order to make money. Why? Because there is a random distribution between wins and losses for any given set of variables that define an edge. (See number 3.) In other words, based on the past performance of your edge, you may know that out of the next 20 trades, 12 will be winners and 8 will be losers. What you don't know is the sequence of wins and losses or how much money the market is going to make available on the winning trades. This truth makes trading a probability or numbers game. 3. There is a random distribution between wins and losses for any given set of variables that define an edge If every loss puts you that much closer to a win, you will be looking forward to the next occurrence of your edge, ready and waiting to jump in without the slightest reservation or hesitation. On the other hand, if you still believe that trading is about analysis or about being right, then after a loss you will anticipate the occurrence of your next edge with trepidation, wondering if it's going to work. This, in turn, will cause you to start gathering evidence for or against the trade, so you will not be in the most conducive state of mind to produce consistent results . 4. An edge is nothing more than an indication of a higher probability of one thing happening over another. Creating consistency requires that you completely accept that trading isn't about hoping, wondering, or gathering evidence one way or the other to determine if the next trade is going to work. The only evidence you need to gather is whether the variables you use to define an edge are present at any given moment. When you use "other" information, outside the parameters of your edge to decide whether you will take the trade, you are adding random variables to your trading regime. Adding random variables makes it extremely difficult, if not impossible, to determine what works and what doesn't. Gathering "other" evidence makes about as much sense as trying to determine whether the next flip of a coin will be heads, after the last ten flips came up tails. Regardless of what evidence you find to support heads coming up, there is still a 50-percent chance that the next flip will come up tails. If the market is offering you a legitimate edge,determine the risk and take the trade . 5. Every moment in the market is unique. Take a moment and think about the concept of uniqueness. No two moments in the external environment will ever exactly duplicate themselves . To do so,every atom or every molecule would have to be in the exact same position they were in some previous moment. Not a very likely possibility. Source: Mark Douglas - Trading in the zone
Editors' picks
FX:XAUUSDEducation
by GIgor_021
5