[quote=tonyj]
Quote:
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Originally Posted by 7thSignalTrader
I trade four (4) different trajectories:
1) Initial Move (minutes to hours)
2) Day Trade (up to 24 hours)
3) Swing Trade (24 hours up to 5 days)
4) Outlook Trade (up to 1 month)
I use my Swing Trade is the great equalizer in case anything goes wrong with any Day Trade. I use the Outlook Trade as the great equalizer in case anything goes wrong with any Swing Trade.
No Outlook Trade has ever lost money, so I don't have a back-up for that one.[/QUOTE
7thSignal:
What is an Outlook trade? Am not familar with it. I'm a PNL'er....Point and
Line Methodology. My explanation was in regard to small pips with high
leverage. You know, of course, that you can gun for 6 pips easier than in
gunning for 20 pips or higher. If you can consistantly get 6 pips then you
should be able in a reasonable amount of time get sufficient funds to shoot
for 20X, 25X etc....even up to 100X. It's just that the hook, if programed
into your chart can give you an idea of where the mine fields may pop up.
Actually, you really should be scalping and day trade during a trend run...
and a congestion is an invitation to Lucifier's Slopchute and shoveling coal.
What most traders don't realize how deceiving the bid/ask spread can be.
The best is EUR/USD by far than any other crosses. Good trading to you.
Addendum: The poll is asking the wrong question.....Why?
There are two kinds of markets, and ONLY two kinds of markets. There
are five kinds of trades, and ONLY five kinds of trades. No matter what the
market does, it has to abide by the conventional patterns of 5 kinds of
trading. Each one is different....and that is the problem. And 90% get
blown out of the box. They didn't tell you that in any of the forex courses..
....did they?
ciao
Tony
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Tony,
I agree - my first thought when I read the question was "false premise" = "false question". The math is easy. You can be more than one type of trader at the same time, too. Which is a smart way to manage and preserve capital.
The Outlook Trade in my system is one that runs at least one (1) month in duration, but can run up to as many as 5 months or more. Right now, my system is projecting the Outlook Trade to be up to 5 months targeting the $1.2450 level at the time of this post.
However, because the systems targeting package is dynamic, those targets get changed with every tic. Only, with the Outlook Trade the changes in the target projections are less than a few pips per day unless there is a major move like we had a couple weeks ago, where the Outlook's top side was $1.2300. At the time, the current price was in the $1.1700 range.
Those pips are what you see in my trade journal on the "Outlook" trade profile where the system used the open price of January, in the $1.1820 level. So, a Long Hold when the system gave that entry price at the start of January, would have net 505 pips thus far before this 226+ pull back that we are seeing right now about one (1) month ago.
Agreed, smaller pips are by definition easier than larger pips and I have some of the built into my system with the Initial Move trade and under certain circumstances, the Day trade itself gets truncated when the system does not have a strong enough probability associated with the trade.
You are correct. In fact, many people would be totally blown away if they were to calculate what just 5 pips per day could net them if the were able to accumulate those pips consistently on a daily basis using high leverage like 200:1, or even 100:1.
Those peanuts add up really fast!
Pretty soon, you are talking about some real peanut "butter".