Weekly Results

Last week was a fun week…also a very successful one to boot.  I traded less last week then I ever have in my entire trading career – conversely I had one of the best week’s percentage wise that I have had in a long time.    12.6% increase in my account size and I owe it all a more focused, intentional approach to my trading decisions.  I have moved away from indicators (almost completely) and just “feel” the market and respond to price… I know it sounds like some sort of Zen Voodoo magic, but it’s not, I can feel the markets and when I am about to place a trade I know how successful I will be by my guts reaction.  I am learning to tune into that innate sense that everyone has when making decisions, “Is this the best choice, out of the many, that I can make.” A sense of right or wrong.

Below is my set up that I use to trade the Eur/Usd:

Daily Chart, 4H Chart, 1H Chart and 30Min Chart

65 SMA (I never trade into it, the longer the time frame the more price respects – I use it on Daily and 4H)

Fib 50%

MACD (only on the 1H and 30Min for timing my entries)

Whole #’s (1.29xx, 1.30xx, Etc.)

I risk just about 3% on my trades with a 100 pip Trailing Stop.  I rarely close my trades before they hit the stop, even when I am in profit…If I notice strong S/R area, I’ll tighten my stop as to protect more profit. I don’t use Take Profit orders – this would be like predicting the market and I am trying to not do that.

My reasoning behind whole #’s is because that is what the big boys use…Jacko, over at his thread, out lines that the major players are the market movers and if they see something it is usually near the whole #’s.  By the way – Jacko trades 200 standard lots at a time, $2000/pip – I believe he knows a lot of the market movers so I trust his logic.

And then we come to the Anti-Hedge, this is another Jacko tool that has proven to be one of the most useful tactics I have EVER learned.  The Anti-Hedge is this – an order that gets you back into the market where your stop got you out.  Now there are conditions that have to be met in order for an AH to be valid. 1. The market has to move 50 pips past your stop. 2 you place the order exactly where you where stopped out for the same # of units. 3. Watch the trend comes back in your favor (because you only trade with the trend, right?) and pick you up on its way to fame and fortune. 4. You cannot use an AH on an AH – go back and rethink your entry timing – it was obviously off.

I have signed up for the indicators, set up my crossing SMA’s and tried everything in the book, but nothing has given me more success and satisfaction than trading directly from price action.  I have even stopped trying to “see” all of the technical patterns because I have a very creative imagination and can make a group of bars look like anything I want it too.  Now if one jumps off the screen and slaps me in the face, I’ll pay attention…

Trading is very very difficult, it plays with your emotions, your $$$$, your relationships and adds heaps of stress to an already stressful life.  Why would anyone do it you ask? Because it is extremely rewarding and at times can be so simple, it drives you mad.  Very much like golf, such a simple game – hit the ball with the right club and watch it go in the hole…but when you start dissecting everything from the trajectory to your balance when you swing…you forget the basics – you have to hit the ball for it to do anything, then the rest follows.   I love golf, but I hate the game…

See you on the course!

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11 thoughts on “Weekly Results

  1. Rick – it can be both. If I “get stopped” out of a position, it means my trailing stop was hit. Now my stop can be in loss or profit, so that is why I don’t use the term stop loss…

  2. Hello There!

    New to the forex world, landed in your site while reading the forums at FF. Great Tips!!!

    Would you mind explaining a few points to a total newbie???

    1. When you say you use different TFs, do you mean drawing Fibs in all of them while trying to find a match in different TFs? For example if we have 50%RT on two different TFs, would that be a perfect storm scenario?
    2. When you say Whole #s do you mean timing entries or exits as close as Whole #s as possible?
    3. If we have a 50%RT on lets say 1.2791, but we also seem to have strong support area, do you place still place your short at 1.2800? How do you know whether the support will be broken?

    Sorry if this may sound obvious to you, but to a totally newbie this could be lifesaving!!

    Thanks so much!!

  3. Hey Karla, Thanks for the comment. I’ll answer most of your questions in the next post (hopefully today if I can find the time) so keep checking back…Thanks again.

  4. I hope I sense a hint of sarcasm. As I stated before, I will answer your questions as soon as I get an opportunity. However, thank you for your patience…

  5. Hey Rick
    I didn’t mean to sound sarcastic. Looks like you misunderstood my comment. I meant to say than I’m impatiently waiting for your kind guidance. I repeat: I’m a total newbie at this Forex thingy and already 500 bucks in the red.
    Thanks again!!!

  6. Hey Mike,

    Thanks for your kind answers, it’s me again :)

    I’ve been practicing drawing fibs on my charts all weekend and wanted to ask you if the correct way to do so is on a bullish chart drag low –> high where bearish would be high –> low?

    Thanks!!

  7. Yes’m – That is how I do it, however it doesn’t mean I am right. I draw them on the Daily and 4H charts and look for 50% only as a retrace of a down move. My Fibs are currently drawn here:

    Daily – High @ 4720 –> Low @ 2456 & 50% @ 3588
    4H – High @ 3328 –> Low @ 2456 & 50% @ 2892

    I hope this helps.

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