Need Advice -Course with a Mentor?

[James]

Hi Pittsburgh

Did you average into your Cable positions above or below? Judging your Kiwi positions you averaged into a losing position.

What size is your account? If you have a 1 million US account you are 4.5% up across 4 ccys leveraged at 9:1. If you have a 100k account you are 45% up. But then you are also leveraged at 90:1...In either case you are risking too much.

I am interested to hear your response as both of my questions may expose some risky unsustainable trading practices.

It would be very sad if you were advocating such in your training classes or not warning against it at the very least.

Hoping for an answer which will ease my concerns

[PittsburghFX]

James

Yes I average in most of my positions. I used to never do so I got killed every time. Those are the main reasons for blowing up the past two times. I will hedge with futures options on a seperate account with a seperate futures company.

I do not have millions. I am working my way up but no. I will not BS anyone I do not consider myself rich. I do have some private clients that I met through the grapevine that are well to do like me so they help with my margin breathing room.

I may be aggressive but it is all put in perspective. With a position at the money on the options hedge I have everything exactly preciesly defined in my other posts I shared how I use this technique. Please search my other postings to find this. I do not have many as I have recently been added to the MoneyTec forums.

Here is my logic. I averaged short into the GBP trade it paid off today. i unwinded everything now am thinking to go long for a retracement.

I have a thread of my own called Ready to Buy dollars yet? Please read this as it will help shed light on my strategies.

I myself am not rich but when people that are well to do get to know you underst what your doing most are very cool about lending money.

I am not managing anyone elses money. Not interested I'm doing fine right now. No need to make any potential enemies. Peoples money is one thing that is the most guarded in the world.

In my tradining classes I use the word units or mini lots. Like if the position goes to Support here buy 1 unit if it keeps going buy 3 units average in.

I underst where your coming appreciate your concern. I started trading stocks when I was 16. Learned technicals but the money management killed me. I then started trading with FX in 1999 got with FXCM a year a few months ago on the sales team when I graduated college then learned the insiders eyes.

Only 2% of all traders are pro for more than 2 yrs. I have studied their accounts am working my way up. I have the knowledge am simply working my way up. I am not actually an aggessive risk taker. But in regards to my averaging in I could have simply gotten stopped out at 7950 but I had faith in my analysis what instinct I had. I had myself hedged. So lets just say I was margin called. The options were making up to atleast 80-85% of the loss not including the cost of the premium.

I was paid by FXCM to sit in front the FX market 75hrs per week. There is more than just regular analysis to make it work. Its like working with the governemnt. You need to underst all the red tape to get through it all. Trading the markets is more than reading a book a moving average. Banks play games plain simple. Just like BOJ. If Duetsch Bank says buy Goldman says sell what do you do. Well you have to underst who's bluffing.

I hope this helps

[PittsburghFX]

http://www.moneytec.com/forums/_showthread/_s-/_threadid-10649

[AircrewMN]

Well some free brain shaping occurs on sekota.com. He won't discuss any specifics but he definately likes to push the brain buttons look in the mirror see your greatest trading enemy.

I haven't done any trading yet besides my aquisition of actual Iraq dinars that is but I've looked at had quick chats with Rob Booker the fxcm folks. them the reading I've done of Van Tharp many others I am concentrating on fixing the mental side of the game mainly before worrying about the technical side.

Rather similar to what I've observed in sales. The most difficult sales are the first week of the month when your broke or needing a certain amount of money. They can only think of what they need everyone picks up on the desperation on one level or another. Then they sell less get more desperate it goes on.

[James]

Hi Pittsburgh

Thanks for the frank open answer. You sound like a nice chap. I don't actually have any problems with averaging into a losing position as long as it is part of a controlled money management trading plan. It's only when it gets out of control that it can be dangerous. Problem is that unless you are very disciplined it can get out of control all too easily as averaging can lead to bad habits.

I have re-studied your positions as posted on your threads I must also be ht when I note that the very extended heavy averaging leveraging used in building your positions is not healthy. Although this time it went your way next time it may not a margin call could be the result. I am assuming your leverage is something like 50:1 at the end of the averaging this will in the end lead to complete loss. Options protection is one thing but costly not failsafe either.

I am not trying to be critical here I do underst your approach. I am simply trying to point out some aspects of your trading which worry me.

Back to books: I would very much like it if you read "Fooled by Romness" by (I was going to say Tareq Azziz) Nicholas Taleb. This will amplify my points 100 fold.

I hope that I have not come across too negatively this is not a personal attack.

[PittsburghFX]

Its all good brother. Having watched over 50000 clients I know all too well your concern. Here is the results last nights trade. Not too shabby. I always remember the small farm town I came on Pittsburgh Street made it to Wall Street right out of college a short time I am back in that beautiful country I so longed to be in.

Here is the results lasts nights rec.... I did head your advice as you can see on size. I maybe getting overconfident though my mirror image is still good to go.

[PittsburghFX]

Here is why for chart analysis.

[PittsburghFX]

Here are my orders...