Technician

Trading? 10 things you might need to consider!

FX:EURUSD   Euro Fx/U.S. Dollar
5511 93 263
2 months ago
I strongly recommend everyone to read the new blog post from tradingview, as it advises users to be carefull from service sellers here at the website. Please read the 5 points caefully here : http://blog.tradingview.com/?p=2400

This is not the first time i publish this post. But some new followers may haven't had a chance to read it.. Suggesting advice on how you approach and perceive the trading experience is tricky. It might be useful and might not. This is because of the fact that every individual has different personality traits. Some might be risk takers, while others conservative. Some could have a strong mental stress absorption, while some may be more susceptible. Having said that, the suggestions I present below is not meant to limit your thinking about the trading process, if it suits your personal traits take it, if not find your own conclusions.

1. Trading is not a get rich quick scheme. It is a normal investment that gets traders return on capital.
Have you ever met a trader making double-digit percent return per month on a consistent manner?

Trading professionally with proper money management would likely get you a return of few percents a month. From my personal experience a 3-5 percent return on capital per month is a very realistic number.

So if you’re that kind of person who wants to “make a killing” trading, please reconsider your expectations.

2. You should be well-capitalized. Small accounts will probably burn you.
This point is correlated to the first one. let me illustrate with an example:

Suppose that you have a $30,000 trading account. According to the 3-5 percent return per month rule, that would give you 1000-$1500 return per month, which is a very good number, relatively speaking.

Now let’s assume that you have a $5,000 account, according to the 3-5 percent rule, that would return 150-$250 per month.

In the second example(smaller equity ), the return would likely be unsatisfying for someone looking to trade for a living. Would it be for you? Wouldn’t you break your money management rules and take more risk to increase that return?

3. Technical Analysis doesn’t work all the time.
Assumptions we make will always have a percentage of failure. The main goal is to keep your risk limited, your targets bigger than your risk, looking for consistent profit on the long run.

4. Trading is not about forecasting the market.
Do not try to forecast where markets are headed all the time. What a trader does is wait for the market to GIVE him certain conditions that validate a trade. (Don’t trade under the market rules, trade under your rules.) Do you feel sometimes that you’re lost and don’t know what to do? it’s probably because of this.

5. Limit your risk.
If you did use stop loss on your trades within the past year, but you didn’t and took excessive risk only on one trade, this single trade might wipe out all of the profits you gained through the year.

How many times did you ignore your stop loss convincing yourself that you will close at a better price? It may have worked sometimes, but what if the price goes against you more and more? Are you mentally strong enough and able to close at a bigger loss? You probably won’t, until forced to close on a margin call.

6. Don’t over analyze.
Over analysis and complicating your tools may lead to confusion and is not necessarily efficient.

7. Ignore your bias
Initiating a trade requires technical evidence, three, four or five conditions that occur concurrently.

8. Always use a top-down analysis approach.
Start from the higher time frame to the lower time frame. The higher the time frame the more strong and invulnerable the trend is, and the more strong and invulnerable the support and resistance levels are.

9. Trend-trading increases your chances of success.
Trading setups that occur within the context of the trend tend to have a higher success rate than those against it.

10. Don’t give up
2 months ago
Comment: 10. Don't Give up
Yeah it can go up to 10 losing trades… Don’t worry, it’s normal in trading.
2 months ago
Comment: I feel sorry for the people talking about unrealistic returns of more then 10% a month in a consistent manner(you can do that in many months, but not in a consistent manner). You are talking about more than doubling your investment every year(120%) lol. Bring me ONE SINGLE, ONLY ONE SINGLE Trader who has done that for the past 5 years .

p.s. I have gained more than 50% percent return on my capital in some months, but that doesn't meant that i can do that in a consistent manner. So again don't tell me that people are making thousand% return per month, or even 15%. ARE YOU making more than 10% return a month for the past 5 years?
My live trades here https://telegram.me/joinchat/DgsnQ0FzifLqyI2YAoMqqQ
Sam_Hon
2 months ago
Very responsible write-up. Truth.
+2 Reply
Technician TOP Sam_Hon
2 months ago
Thanks :)
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Abozahra PRO
2 months ago
Thanks!

Well written advices to consider!

Missing your analyses thou :)
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Technician TOP Abozahra
2 months ago
Thanks buddy
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Thank you for this post.
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EvanJones PRO
2 months ago
Nice! My only addition that I tell others is to trade small and limit risk. Small compounded wins over time amount to an increase in your account and take a lot of the stress in holding trades
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jpctop
2 months ago
Thank you very much ! good advice!
I want to know what risk you allow per trade for a gain of 3-5% per month? And the number of monthly trade to achieve this?
thank you in advance
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jpctop jpctop
2 months ago
I speak English badly, I hope you understand me. What % for the risk per trade, only, do you usually / average?
I hope to be clearer

Thank you
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leong801 jpctop
2 months ago
Erm...normally depends what goes you aim with your analysis like you aim 2% Trade profit then you set 1% stop loss.
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j_amui
2 months ago
Thanks Technician. That was very good, encouraging and educative. But I have a problem with receiving your ideas into my mail box. I use to receive your ideas into my mail box and check it. However, in recent time, I get the notification but the idea does not get into my mail. Is there any problem with trading view? How can I continue receiving your idea into my mail. Thanks
+1 Reply
Technician TOP j_amui
2 months ago
I have flagged your message to moderators to check.
+1 Reply
j_amui Technician
2 months ago
Thank you so much. Still waiting for it to be rectified. your ideas are great. You don't bring ideas regularly, but when you bring one, its quality. So I like studying your anaysis
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SOURCEone1 j_amui
2 months ago
I receive the email notifications through the default iOS app. If it's an idea. If it's just a comment or response I just receive an empty email notification with the exact same subject line as the idea.
Hope not confusing.
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jacob57
2 months ago
Thank you for this post.
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bunah2
2 months ago
well said, thanks
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Forexstudent4
2 months ago
I am agree with the TV 5 things as lot of big names are being affected by them. And I am not agree with your 5k example mate I have seen many people who started with 1k and now they 100k in their account. I think the best thing which speaks about your trading behaviour is your TRADINGVIEW profile which tells that how many trade setups went in your favour and how many went against you .Please don't take it personally as it is my right to agree or disagree
+1 Reply
Technician TOP Forexstudent4
2 months ago
Well, that's why i wrote the first paragraph introduction. starting from "Suggesting advice on how you approach ...."
+1 Reply
bomme09
2 months ago
Nice article...thank you for the advice
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-Andrew- PRO
2 months ago
Thank you mate
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Mrsaini
2 months ago
Great tips ..thanks
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guti142008 PRO
2 months ago
It's so good!! Many many thanks sirs!
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YACCINE
2 months ago
Thank u sir
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Biff_Tannen
2 months ago
Amen! ;-) If you follow these 10 rules you will be a succesfull trader. You don't need all the Picasso crap that's around here on TV and the interweb in general! It's about Pricelevels and Psychology, that's all folks! Keep it incredible simple and don't lose your mind. Make it your own, don't listen to anyone, especially in chatboxes.
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m.mwais
2 months ago
That's what gets me in the fourth step

thanks :)
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If you get really good, 100% per month is low.
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social_junkie1992
2 months ago
why only 3-5% ? is it really that unprofitable ? I am sure most of the people here must do atleast a 10-15% profit on capital monthly....isnt it ? hmm
btw I am new to the forex trading so I just asking to further my understanding..hmm
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Swapnil23 social_junkie1992
2 months ago
Don't expect unreal returns from forex trading its a high risk game. Risk a small percentage for every trade, it will help you in the long run.
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SPYderCrusher PRO social_junkie1992
2 months ago
10% monthly is over 200% annualized, and highly unrealistic consistently
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vangoyan7 SPYderCrusher
2 months ago
3-5% is schoking, i've seen people flip accounts from 7$ to 7000 in days
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vangoyan7 vangoyan7
2 months ago
shocking*

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trungle83 PRO vangoyan7
2 months ago
$7 to $7000? ....... Come on now.
+2 Reply
vangoyan7 trungle83
2 months ago
LOL
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Technician TOP trungle83
2 months ago
lol. I think the post is inexperienced. So dont give it much attention SPYder.
BTW, it can happen but only for gamblers and extreme risk taking, not real pro traders...

I once turned a 700 dollar account $7000 in few weeks. However, that was an account for high risk trades and it wasn't consistent.
+1 Reply
Technician TOP Technician
2 months ago
I mean the poster* is inexperienced.
+1 Reply
SPYderCrusher PRO Technician
2 months ago
definitely agreed.
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g0me2z Technician
a month ago
I can not agree. I am not experienced trader but i saw people making big money 50-100% deposit every day trading DAX. I am from Poland and since one year we have a social learning group which has over 6000 members. People who are trading and sharing their knowledge make shit loads of money. All those people who are on those videos are verified by the founder of this non profit organisation Trading Jam Session. Unfortunetally vids are in polish but you get the idea of free knowledge sharing from experienced traders.

https://www.youtube.com/channel/UCtgkij_zW8jUoGrpl8nCkhQ/featured
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TheSmartInvestor vangoyan7
2 months ago
no way.. $7 to $7000 in days?? I need to talk to them. I believe you can do more than 5% a MONTH with an account of maybe $100-$5000 but $7 a DAY??? thats crazy.
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vangoyan7 TheSmartInvestor
2 months ago
I have a screen shot, I don't know how to post it on here though. Your probably right, if one was to try to do it on a consistent basis they wouldn't be able to maintain those sort of gains - but what I'm trying to say is that if you have the skill, then surely you can definitely gain more than 3-5% on a consistent basis. Although, when you say 3-5% on a 1 000 000 acc gain is a pretty good gain but on a 3-5% gain on a 100$ is awful. If you have a 100$ your telling me that you can't get that account to 200$ in a month or a 1000 in a year? I would agree with you if your talking about hundreds of thousands then 3-5% sounds fair. My point was that with the right skills, you CAN grow your account more than that :), no?
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vangoyan7 vangoyan7
2 months ago
What about people like Tim Grittani who grew accounts from 3,000 to 3,000,000 in a few years or John Carter etc?
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TheSmartInvestor vangoyan7
2 months ago
yes you are right, I believe you can grow your $100 to $1000 in 1-3 months if you have the skills.
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TheSmartInvestor TheSmartInvestor
2 months ago
and as the Technician said, you would have to make trades with high risk.
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what if you see your account that you had 6-7 loosers in a series before you stike winner although that is big enough to overcome those loosers but these series of loosers dent us very badly.We get scared of trading bcoz we think that might be looser coming.
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CRInvestor PRO
2 months ago
Very nice summary
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Gekko.uk
2 months ago
These 10 points only apply to archaic trading analysis and a strong retail mindset. Also, retail crowds benefit from leverage of up to 1:50 so 3-5% returns monthly is absolutely shocking for a self professed, "professional trader". Institutions and retailers are completely different beasts. A successful system is one that has a 51% win to loss rate. The magic is in the Risk:Reward of trades. And compounding is a tool that can be used very effectively, so yes. Day trading is a "get rich quick" scheme.
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Defyanse PRO
2 months ago
reinforcement. valuable advice thank you!
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georgeyn
2 months ago
excellent points, thanks!
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Very helpful for new to trading like me.
Thank you and hope in future we will get some more valuable advice.
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Trueman23
2 months ago
true words ...
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sarunas
2 months ago
Thank you for wise words, Technician. Need to save that and look every time I trade :)
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RuhailKhan
2 months ago
I have accounts in ADS securities and one is almost 7 times in 10 months. one is 23% up in couple of months. If my arbitrage is get allowed by any broker, account can be 1000 times. any broker dare to open my only 5 k account for greatest scalping or arbi or whatever you call it. i dont mind.
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Technician TOP
2 months ago
Thank you all for your feedback. I am sorry that i haven't replied to your comments, but i am feeling sick. I will reply as soon as i feel better. Thank you.
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SOURCEone1 Technician
2 months ago
Hope your feeling better.
IMO a lot of traders have been gelling walloped as of late and the post is a good read to remind and bring back down to earth the emotions that can take control over even some seasoned traders. With that said this also a must read for those still wet behind the ears.
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Technician TOP SOURCEone1
2 months ago
Thank you
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jpctop Technician
2 months ago
Goodand fast recovery to you!
+1 Reply
Technician TOP jpctop
2 months ago
Thank you
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Technician TOP
2 months ago
I feel sorry for the people talking about unrealistic returns of more then 10% a month in a consistent manner(you can do that in many months, but not in a consistent manner). You are talking about more than doubling your investment every year(120%) lol. Bring me ONE SINGLE, ONLY ONE SINGLE Trader who has done that for the past 5 years .

p.s. I have gained more than 50% percent return on my capital in some months, but that doesn't meant that i can do that in a consistent manner. So again don't tell me that people are making thousand% return per month, or even 15%. ARE YOU making more than 10% return a month for the past 5 years?
+1 Reply
shamiku
2 months ago
Well...the information is true but i dis agree with the returns. Trading is for money making not just to waste time and get pennies out of it. I do understand that its not a quick rich scheme but having said this if the knowledge is good and a person understand the market with at least 70 percent of the trade setups are accurate .. then i believe he or she can make more then 20 % a month and i have seen ppl doing this.
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Technician TOP shamiku
2 months ago
No. Not true. No one makes more than 20% a month over the long term (years.). If you have a proof put it here otherwise please dont mislead people.
+2 Reply
theGreen
2 months ago
i beeen know about you almost 1 year technician.
you are good people and realistic.

that was a great example i got youtube channel to teach how this market works exacly as well.
and i want to share your example to translate turkish if u let me to do that.

Tradingview most greatfull web side about this job.
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Technician TOP theGreen
2 months ago
No problem
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FxRanger
2 months ago
I disagree with the returns,if some traders have only 3-5 percent return per month . They should stop trading!
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deLazyLizard FxRanger
2 months ago
Perhaps you should check some myfxbook accounts, FXViper in particular. An example of small % gains really do add up. OH, he won't stop trading, he's a multi-millionaire.
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Technician TOP deLazyLizard
2 months ago
Buddy, don't give attention to these comments, they are just trying to troll.
+1 Reply
deLazyLizard Technician
2 months ago
I've always ignored, but finding it harder recently haha. :-)
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Technician TOP deLazyLizard
2 months ago
hehe, yeah man , i know how it feels.
+1 Reply
vangoyan7 deLazyLizard
2 months ago
His FXbook shows an annual return of 11% on one of his accounts (FX Viper MAMM IC Markets) ... LOL
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vangoyan7 vangoyan7
2 months ago
And his gain is +253.25%, account opened in 2013. Explain? Current account balance 2.6mil O.o
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deLazyLizard vangoyan7
2 months ago
investor accounts
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deLazyLizard deLazyLizard
2 months ago
x2 x3 risks
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649bruno
2 months ago
Well written. Excellent words. I like number 10.
Two quotes from Warren Buffet compliment your work:
1. "Someone's sitting in the shade today because someone planted a tree a long time ago."
2. "You only have to do a very few things right in your life so long as you don't do too many things wrong."
Thank you for the sage advice. Don.
+1 Reply
Technician TOP 649bruno
2 months ago
Many thanks for your input.
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sgt.apollo
2 months ago
Hey I know someone that done it makeing 270% yearly talk to me I will send you his website + his trades
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Technician TOP sgt.apollo
2 months ago
Thanks I don't want this.
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ronnyvick sgt.apollo
2 months ago
Why don´t you tell us all how you did it?
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RationalTrader
2 months ago
Great post!

I have to say tough that you're a little well conservative on proposed possible returns though. I have around a 45% return on 260 trades on my current account which was started in March16 :) 10% is low...If you want to actually be profitable from your trading, and make it worth your time and energy towards 30%....if you can't make 30% on a constant basis, then consider finding yourself something else to do for a living or as a hobby, because your money will be better spent on a well diversified index fund like SPDR simulating SP500. -Read Bogle's common Sense investing.
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tokyo
2 months ago
would you know good broker for trading forex and futures? i am in canada
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C_BREEZY
2 months ago
I Love Point number 10
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Calamity
2 months ago
Yes , do not be too greedy. I have a very pro friend he generate 3% return per month that is already very good. I did have like 800% return these 3months because i played with high risk mode , and small fund which I would not care that much, lol.
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MarioHerrera
2 months ago
Technical, how much of your capital you risk per trade?
Thanks.
Mario
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Deitreider
2 months ago
What king of risk (% of trading capital per trade) are you using to average 3-5% monthly gains?
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larry
2 months ago
Biggest myth out there: Trading your account for "income."
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Thank you for your detailed description about what to do and what not to do in trading habit. Every trader should be aware of those rules.
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WhiskeyDeltaBravo
2 months ago
Is your 2-3% the total average for the month? I assume if you are only returning 2-3% for the month then you are swing trading and only trading a few times per month, is that correct? Is there a reason why you couldn't put your capital to work on a daily basis and aim to return 2-3% daily? While its true that one may not be able to get that return each day, one's capital would at least be at work each day consistently working for a small percentage return. Is that reasonable/unreasonable? Thoughts?
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larry WhiskeyDeltaBravo
2 months ago
Talk about the quintessential "picking up pennies in front of a steamroller" strategy.
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WhiskeyDeltaBravo larry
2 months ago
Well, yes, its clear the stock market is bullish right now. I was just throwing out an alternative trading strategy compared to the Technician's more conservative strategy (or realistic strategy, depending on how you read it). What are your thoughts on an alternative strategy? Thanks!
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foktakming
2 months ago
thank u for ur advices
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Dinkan
2 months ago
Finally, he turned to be the spiritual Forex leader! Happy to see that!
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AhmedKhattab
2 months ago
would you please recommend me a book helps me to start\launch my own technical analysis of gold market ?
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hyj00135
2 months ago
Very very useful, thank you
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timber
a month ago
Tech, you're one of the reasons I keep coming back to TradingView. Thanks for your time.
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Technician TOP timber
a month ago
I appreciate this
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hthieuvn
8 days ago
Thank you a lot for your kind sharing this practical and valued experiences.
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AhmedKhattab
7 days ago
Please, Could you illustrate point 4 by an example?
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