Pips in wheelbarrow - Trading FX profitably

[amitrandive]

Water Tight MM and Nirvana Kind of EM are imperative and prerogative to be a Pro trader ...

If you have this in control ... You do not need any indicator ... You can spin a coin every morning ... Heads .. Buy all ... Tail ... Sell every thing ... Still one can make profit ....

If one does not have MM and ED covered ... Best of Indicators ... Best of trends ... All FA and TA ... still you will be under HAMMER .... not Hummer ...

Trading is More ... Most about The psyche of the Trader ... everything else is accessory ... PA is the King ... Psyche of a trader can know it ... Judge it ... Understand it ... And be with it .... If you wake up with a wrong mood ... whatever may be the reason/s ... Do not open your terminal ... Terminal will say SELL ... Indicators will shout SELL ... FA orders SELL ... But still you will BUY ... WHY ... There is no Sync between the Market and the Psyche of the Trader ..... At the end of a day ... Market is made of all .... Independent ... Psyche of ... Individual Traders ....

"Biggest Minority in any Society is an Individual, not his Religion, not his caste ... It is his Right to be an Individual"

MM=Money Management ,

EM=Emotional Management ??

ED= Emotional Discipline ???

 

[amitrandive]

I took it for granted that every one knows two things about FX ... Pip and Brokerage ...

Pip is the smallest denomination by which market movement is valued. If, say, EU moves by 5 pips that means 5 points movements and on a .1 lot size that will 5$ ....

Unlike our domestic market, wherein, we have brokerage, service tax, CTT (for MCX) and education cess, FX trading has ONLY brokerage (Called SPREAD) and that is very meager for most of the currency pairs ... Only during high volatile NEWS, this brokerage will increase.

Most of the times, EU will have a spread of 1.8 - 3 pips .... That will be 1.8$ - 3$ for a .1 lot sized trade .... This spread can be negotiated and for higher account sizes, brokers do offer 1 pip spread ....

Margin for a .1 Lot sized trade will be 100$, on a 100 leverage ....

Do remind me if I'm forgetting anything basic to cover. FX market is so very HUGE, I might have been forgetting even most basic aspect/s to cover ....

FYI

http://fxtrade.oanda.com/analysis/profit-calculator/

 

[Galts Gulch]

MM=Money Management ,

EM=Emotional Management ??

ED= Emotional Discipline ???

Absolutely Right ...

 

[DSM]

Thanks, great post, and a reminder of what we should be doing every day.

Water Tight MM and Nirvana Kind of EM are imperative and prerogative to be a Pro trader ...

If you have this in control ... You do not need any indicator ... You can spin a coin every morning ... Heads .. Buy all ... Tail ... Sell every thing ... Still one can make profit ....

If one does not have MM and ED covered ... Best of Indicators ... Best of trends ... All FA and TA ... still you will be under HAMMER .... not Hummer ...

Trading is More ... Most about The psyche of the Trader ... everything else is accessory ... PA is the King ... Psyche of a trader can know it ... Judge it ... Understand it ... And be with it .... If you wake up with a wrong mood ... whatever may be the reason/s ... Do not open your terminal ... Terminal will say SELL ... Indicators will shout SELL ... FA orders SELL ... But still you will BUY ... WHY ... There is no Sync between the Market and the Psyche of the Trader ..... At the end of a day ... Market is made of all .... Independent ... Psyche of ... Individual Traders ....

"Biggest Minority in any Society is an Individual, not his Religion, not his caste ... It is his Right to be an Individual"

 

[DSM]

Thanks. Learnt something news. Will look it up.

To overcome all these,for any trader, it is advisable to follow and focus on OODA loop. Market is always in this loop. Can say, not only market, the entire universe.

 

[Galts Gulch]

FYI

http://fxtrade.oanda.com/analysis/profit-calculator/

This tool helps as different pairs have different kind of Valuation ... Profit / Loss to Pip ratio ....

Just for the record, in currency pairs, EG (Euro/ Gbp) has Highest profit / loss to Pip ratio ... almost 1:1.6 ....

 

[Galts Gulch]

Few Members have been asking me ... Why there is no momentum at all ...
Technically, Most of the Pairs are coiling either at OB or OS zone and when the Market has not decided its future course, market goes through correction like this ... As few times, not taking a decision itself is a decision ... In this period ... Not trading is a blessing in disguise ... "Trade Only because of a Trade-able set up, not because of the pressure of a live account"

Fundamentally, no one expected US to come with -ve NFP report ... It is shocking ... Geo Political aspects ... Euro zone and Russia ... US and ISIS (Read Iran) .... are not helping the market either ....

But silver lining is ... When market moves from this Indecisiveness ... From correction ... It will move Long Distance ... To the next R/S levels ... Big move ... Huge Profit ... Identify few pairs (which has more ATR and ADR on higher TF's) and Drive them all the way to Bank ....It will rain Pips ... In wheelbarrow ....

 

[amitrandive]

To overcome all these,for any trader, it is advisable to follow and focus on OODA loop. Market is always in this loop. Can say, not only market, the entire universe.

FYI

 

[amsin21]

FYI

Thanks Bro, any system once taken off track, stalls. Of course we can have different variants.

Trading floor is the real battle field. - Observe
Align with the market trend - Orient
Enter the loop with minimum 2 strategies in the arsenal - Decide
Take positions on strategy signal - Act

Now inside new loop....exit loop

 

[Galts Gulch]

Few Members have been asking me ... Why there is no momentum at all ...
Technically, Most of the Pairs are coiling either at OB or OS zone and when the Market has not decided its future course, market goes through correction like this ... As few times, not taking a decision itself is a decision ... In this period ... Not trading is a blessing in disguise ... "Trade Only because of a Trade-able set up, not because of the pressure of a live account"

Fundamentally, no one expected US to come with -ve NFP report ... It is shocking ... Geo Political aspects ... Euro zone and Russia ... US and ISIS (Read Iran) .... are not helping the market either ....

But silver lining is ... When market moves from this Indecisiveness ... From correction ... It will move Long Distance ... To the next R/S levels ... Big move ... Huge Profit ... Identify few pairs (which has more ATR and ADR on higher TF's) and Drive them all the way to Bank ....It will rain Pips ... In wheelbarrow ....

When the market moved late evening ... Yesterday .. It was Pips in the wheelbarrow ....

Motivational Chart .....