Re: Design your own System like the Pros Do

91
Hi Guys,
I have given every one enough info,I think to be able to do these exercises,it might take you a few re reads but I am sure you can figure it out now for yourselves.
I have not got the luxury of carrying on indefinitely with this thread...I only have 2 days left here to post.
Guys,I have been homeless and without a penny to my name,yet I knew that it was possible to be a success in the market,so I needed to change my way of trading.
In essence I Never Gave Up
So if I may,I would like to continue posting now on the important things that changed my trading.
AussieBeau


Re: Design your own System like the Pros Do

93
AussieBeau wrote: Tue Jul 18, 2017 7:15 pm
The following posts are purely about things that changed my way of trading.
some of these may help in the way you trade

One thing in common,that all successful traders I know of is:

It is all about Mindset,have the right Mindset and trading becomes both profitable and a Joy.

When I was a teenager, friends of mine were into betting on race horses, I put a couple of bets on at times with the local bookie just to keep up with my peers etc..the way kids do.

One week we all decided to go to the local race track..I was keen to go because I had listened to the races but never actually been there and saw them race.

We got there,now I had worked out before hand, the amount I was willing to lose,spend on beer and eats etc.
My whole focus there,was simply to enjoy myself.

Having the first beer with the boys,we had 30 minutes til the first race, I thought I would spread my spending money equall amongst 3 races (there were 8 races that day),I thought that by doing that I would only need to be right once out of 3 to break or nearly break even,

My friends were talking about how much money they could make by betting on all 8 races and was busily studying the form guide during the race instead of watching the races.

End of the day..
I won 1 out of the 3 and had a 4% profit and thoroughly enjoyed watching the horses run.

One of the others won a couple of races out of the 8 and gained about a 7% profit.

2 of the others that bet on the 8 races,actually won more races than they lost but ended up overall in loss

The other mate of mine,did not bet and he like me really enjoyed ourselves.

I decided to use the lessons I learnt from that experience of mine, to implement in my Trading Mindset.

I am sure I dont have to list what I learnt

Anyways , Having the right mindset was one thing that turned my trading life around.
AussieBeau
I have just quoted this post so that my future posts will carry on from it.

Re: Design your own System like the Pros Do

94
Hi Guys
These are the things and reasons that turned my Trading around.
Remember,in the first post I said,that I was a simple uneducated man, that educated himself on his life experiences,well the only way I knew to solve the problem and achieve my success,had to come from life experiences.

In my previous post about the races as a young man, I drew on that experience to realise if to be successful in trading, I had to change my mindset

So Mindset was the first thing

Ok,I obviously had a problem in the way I traded that needed to be diagnosed and fixed
As I had been a motor mechanic,it would be the same for any trades person in any trade,I knew that if I wanted to diagnose why I car would not run,I would start looking at the basics.

So Basics was the next thing I learnt

By learning the Basics,I quickly realised that the market is not a mechanical robotic entity.
It is a living breathing being..the ones that control it are emotional beings.
So , the only way to understand what was going on,was to use my emotional brain to understand.
I am yet to come across anything robotic that can decipher better than the brain
So , I knew that I had to always have my brain make the decisions.

So the first 3 things I had to have to overcome this beast was:
1.The right Mindset
2. Learn and understand the Basics
3. Understand the market in a non robotic way,I must use my Brain as the Main Decision Maker.


So I practised and practised til I felt I had these under control.
But there was a major thing that I had to overcome..and as everyone knows who have traded live..Emotions come into play.
I had to deal with emotions properly, I will deal with how I deal with emotions in my next post,as it probably will be a bit long for this post...also I am feeling a bit tired.
I will have all this posted by the morning and post about the blank chart trading tomorrow afternoon
AussieBeau

Guys..I will be posting every couple of hours or so
May I ask that you make no posts til after the final post about trading a blank chart please....it will help the flow

Re: Design your own System like the Pros Do

95
Hi Guys,
Lets deal with emotions.
I am sure that you have read,that you must trade without emotions.
If you want to be a Robot or trade roboticaly,that would be true ,but I assure you it would send you broke
I learnt to get the emotions going or I would not trade..I might not be the sharpest pencil in the pencil case,but with
BALANCED emotions,I was sharp as a needle.
The secret is balancing your emotions.

The first thing emotions teach us,is who we are and what especially our weakness and strengths.
I called on what I learnt from the racing post above..if I wanted to enjoy myself,I had to put more thought towards
protecting my capital,rather than make profit...If I protect my Capital the Profit automatically comes.
I remember my grand mother used to say..Look after the pennies and pounds look after themselves.

I also knew that I had to look at trading in money terms not in pips...seeing things in pips can mislead,because we dont really see how much is at risk.
So i got a little indicator that showed cash rather than pips..can keep you out of bad trades.
Its one thing to see that you stand to lose 100pips,but when you have a lot size of say 1.5 lots it is another thing.
What does this do?
It makes you think whether a particular trade is worth risking your Capital on.
Which means you have less trades but better trades.....risk/reward..I dont believe in the belief that its sensible if every trade is 2% or 3% of your Capital...Why?
simple reason,you dont realise it as being cash,so you can over trade.

The main List now is:
1.The right Mindset
2. Learn and understand the Basics
3. Understand the market in a non robotic way,I must use my Brain as the Main Decision Maker.
4.Trade to Protect your Capital and profits auto come
5.Think in terms of Cash not Pips
6.Think in terms of what you can Lose not what you can win

more to do with emotions to follow


Re: Design your own System like the Pros Do

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To point 5: For me it's easier to think in pips, for risk/reward and the daily goal and for another reason. One year ago, we listened to a guy from a broker and he told us about some of his clients (no names of course) and how strange our mind can react to diverse things. One client, he told us, is a very good trader, but when his position exceeds 2,000€ he gets a blackout. There is no way, 2,000€ is the limit. I guess, a trading psychologist can help him, but maybe when he think in pips he wouldn't have that issue. I'd feel also very stressed when I would see what this pips are converted in money.

The other five points I'm absolutely d'accord.

Re: Design your own System like the Pros Do

97
Hi Guys,
This is just my personal way of handling emotions.
The guy that Krelian referred to as blacking out at 2000euros....I dont think he needs help as in helping get over this
block.
To me trading has to be kept real and if you blackout at a figure that you are risking,then its obvious to me that he needs
to rethink his comfort level.
Perhaps he could risk 1000euros and if he is comfortable with that,then gradually increase it...I certainly would never
suggest to cover it up by thinking in pips.
Just think of this ...the guy goes ok,2000euros is too much for me to lose,so not to notice it I will call it pips..and
then what if he gets a black swan and loses it all,
He will be aware very quickly that it was 2000euros he lost,and cause he would then be stressed,his UNBALANCED emotions
would kick in and he think he had to get it back..which would lead to overtrading.

Understand,I traded , I busted an account,lost my home,bank account and became homeless.....I had no other option but to
keep it as real as possible.

This part of my thread is just showing the things that worked for me,that took me from zero balance to a 7 figure
income..please note it took a long time for me to get where I am..I learnt that its a Marathon not a Sprint.

Every day I trade,I think,now how much can I lose today and walk out still happy...your emotions are balanced while your
happy , trading actually becomes fun.

So, I sit down at the computer and watch the chart..I only trade one pair why?
Well,I saw as a mechanic,different specialties....their were mechanics that specialised in diesel engines,some specialised
in auto transmissions,others in brake and clutch etc.
They were all the same mechanics,any motor mechanic could do all those things,but these guy decided to specialise in
one....they were more efficient and understood their chosen specialty.

So it was obvious to me that because all the different pairs differ,I would have a better shot at success if I
concentrated on learning the behaviour of just one.

I divide my trading money (the money I can afford to lose) in 3 equal parts,by converting it to pips (even though its pips
I am still aware of its cash value).
I then wait for a trade to show itself..I decide whether the gain is worth my capital to be risked..if so i will enter ,

I only have a daily target of 20 pips,if I make it in the first trade,thats it for trading for the day,no further trading.
If I lose,I have 2 more shots at the 20pips...i only have to be right 1 out of the 3 to breakeven or make a profit..I gear
my stoploss to a 1:3 risk/reward
If I lose 3 times running..great,I walk away for the day.

The simple fact is the more times you trade,you expose your Capital to possible loss
This is to protect my Capital;

AussieBeau
more to follow

Re: Design your own System like the Pros Do

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Hi Guys
I started with a relatively small Capital.
My goal was to double my startup money..withdraw my original deposit and then I would be playing with the Markets Money.
As I watched my Capital grow..the biggest growth was in my confidence.
As my confidence grew,my lot size grew..in other words I felt more comfortable with the amount I was willing to risk.
As such my Capital grew at a steady increase,then finally I had reached my goal..

I withdrew the original stake,put it safely in the bank..believe me,it was a great confidence boost to know that the worse
case scenario was me losing the markets money,not mine.

Well the boost that gave me,I doubled this,but this time I left it in the account and increased my lot size never my target
of 20 pips, well the rest is history!

I made a point of each month making a withdrawal,even if it was just enough to take my wife out for dinner..I found it
important to reward myself..it gave me an incentive that my brain could understand,and in return motivate me.

I had reached a reasonable level and was making a living trading,but there was just something missing to push me all the
way.

I knew how the market worked,the ones controlling the movements were people not robots.
I then realised that the secret would be to find the telltale signs of what they were planning.
I eventually found that telltale sign..it was all in the price/spread and volume..all they do is fill orders simple.
That is why,I have stated to you during the course of the importance of spread.

This set of posts is how I got where I am...most important fact to take from this is Never Give Up!

Now..you have the Complete set of tools and information to set you up for your full potential.
I will post this afternoon trading the blank chart..it will be my last post before I retire.

AussieBeau

Re: Design your own System like the Pros Do

100
Hi Guys,
Well this is my last post..the post I am sure that you have been waiting for.
I promised you that if you adhered to the exercises and if you followed my instructions,you would be able to trade a blank chart...now I will fulfill that promise.
First things first.
Roy my Lawyer,has read this and my previous posts and has given me the all clear to post.

So lets start.
I had 2 older brothers,one went into boxing and the other went into skydiving..they both went onto achieve what they wanted.
The boxing brother went on to become a boxing manager,the other has a skydiving school.
Every night before a fight my brother would watch movie clips of his opponent.
The other brother,well he spent his week ends jumping off roofs and rolling.
Truly,I thought I was the only one sane!
Just think about it..Why would you want to get the @#$@@! knocked out of you,or stranger still ,why would anyone jump out of a perfectly working aeroplane!!

One day,the three of us was fishing and I asked them both why they did that strange stuff.
The boxing brother told me,that the more he knew about his opponent,gave him an insight of how his opponent reacted in certain positions,therefore he could counter and not get hit so often....simple,it made perfect sense to me, he wasnt strange, he had the smarts like me I thought.
The skydiving brother,when I asked him,why he did what he did,well he rolled his eyes and left me standing there...side note:I suspect he is adopted!

The reason for this blank chart exercise:
Quite simply it gives insight to our opponent, players that move the markets...the only window to them we have are thru price/spread and volume..this opens that window for us
As I said before..it is people controlling the market and this gives me an idea of what they are planning.
They are emotional beings so this trains my emotional brain to see what there up to.

Open up a blank M15 chart and add these 2 indicators:
Price/Spread indicator..the one without the fractal mtf
Bulls bears indicator
Now dont get antsy,we are going to be getting rid of the bulls bears in a short time.
The reason soley for the bulls/bears is to help you speed up your understanding.

Your price and spread, you will see that there are 3 colors red,green and silver..silver is when the market is equal.
Lets think of what happens in the market..one side(Bulls or Bears) will strike,the other side counters and this goes back and forth til one of them gains the upper
hand and the market moves that way(price moves up or down) and then they will rest(neutral color) waiting for the next tussell.

Of course there is a lot of flashing of colors going on..that is the strikes and counter strikes
So first just concentrate on the price(not spread at the moment) and the predominant color red or green,i watch the price exclusively til it has moved 100 pips in
either direction..this gives me a feeling of direction (possible Trend)

How do we see when a side is gaining strength and the other side weakens..by the spread.
The strikes and counter strikes are not punches they are what....money
The spread shows how much money is being released or with held by both sides..see how price,spread and volume work together

When the price has gone silver(Neutral bulls and bears are resting)..we are waiting now for the next move (up/down or continuing)

We now watch the spread numbers..for this we have definite colors,green is bulls and red is bears
We are now watching for strength in one and weakness in the other to predict who will gain the upper hand and the price move that way.

As they start the battle,just look at spread,you will see 2 numbers red and green,they will speed up dramatically at times
Your brain will see a green number and then a red number,(I handle this speed by saying to myself something like this 88889999,until it becomes something like 8887 or 9998)..just take note of a change of number to do with that color..it might be like this green might be flashing the same number over and over...its steady..the red might be doing the same so its steady
Then you will notice a change in the numbers..the red or green has changed its number to a lower number..means it is tightening (getting stronger)..if the other color
changes number to a lower number also..it means they are really battling (they are showing they are both becoming stronger)
If one colors number then widens,and the other color stays the same or lowers...then that is when you can tell who has strength and who is weakening.

Now I told you to add the bears/bulls indicator..it displays instant volume...see how the spread and the volume indicator act together.It might help you seeing the price/spread a bit easier.
When you get the hang of reading what is happening without having to use the bullsbears indicator,take it off your chart and their you go..you are reading the blank
chart.

At this stage.it is time to start trading it..ONLY on a Demo account..I do not trade Live with this,just an exercise to build confidence and get a handle on what the
market movers are planning.

OK...I believe my job here is done

I want to Thank You all for being a part of this course...I hope that the 2 weeks you have devoted to this,you have found worthy of your time.

If I may,I wish to give a special Thanks to 2 members that have greatly extended the time of me being able to trade
Jimmy...for designing my chart template so I could continue to see the chart.
MrTools...for modifying my indicators with price boxes vlines etc so that I was able to see them as my eyesight worsened.
I can not find the words to express my gratitude.


I will stop rambling now and move on.
If I may,I would like to ask,that no one posts questions..I am sure I have supplied enough info,for you to work it out.
While my eyes are still capable,I will visit this great forum from time to time...Remember Guys I have Retired


Ok Guys...finally my Retirement
God Bless You All


AussieBeau
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