I am often asked or advised that I should post more trades and/or have a signal service. This brings me to how many trades do you need. Understand, that enjoying the lifestyle that trading affords is always something you want to strive for. Do you want to be strapped to your computer for 8-12 hours a day? where is the fun in that? if you have read my trade set-ups they are all designed to be high probability set-ups with Good to great RRR. However, there are only so many of those per day and I prefer to take the very best set-up there are. I risk 2% of of my capital per trade, always looking for at least a 3-1 RRR (meaning I am risking $1 to make $3). Simple math, If i net 2 winning trades per week, that is a 12% gain !!!
As I often ask traders, "if you could make 10-12% per week but could only take 2 trades would you do it?" the answers always surprise me, from outright no, to yes but I would hate myself, to sure but i would trade on the side (point of question goes over head...lol). As a professional trader, your purpose is make Money, PERIOD!!! it is not to hit buttons. when reviewing your trades, are there low probability set-ups that you could eliminate? Are there trades where the RRR is less then 3-1, eliminate those ad see where you would be?
I hope you enjoy this post and find it helpful. I would appreciate if you "like" it and follow me :)
Allen,
I agree. The one who spends 8-12 hours on the computer is likely "living to trade", as if they're playing a video game. Where the one who places 1-3 trades a day (or week) with a high RRR is more likely "trading to live" which means they make their money then go and use that money to enjoy life. I've switched from placing 50 -100 trades a day (the RRR was upside down) to placing 1-3 per day (the RRR is about 1 to1 ).I'm still learning to identify the setups with the RRR's of 3 to 1 or better.
Thanks for all the educational posts, I'm now studying the Ichimoku indicator to help with the bigger RRR. May you always be green. Merrick
AGold54
⋅
@Merrick777, Thanks Merrick and I trust you received the Ichimoku material I sent you. Let me know if there is anything else I can assist with :)
azusa4647
⋅
Allen, Great article. I love to read and learn from your posts. Thanks Allen
Hello Allen, I have noticed in your set up analysis that you have a rating system for the currencies that you use to determine the pairs that you end up trading. Where do you find, or how is this rating determined? is it a math equation or just a chart some where?
Thanks
AGold54
⋅
@JackD_123, Yes!! Strength and Weakness analysis is key component to the way I trade. Quoting my soon to be released book "... I do an initial reading based on the 11pm GMT candle (which has to be done after 12pm GMT). I use this time as I have found it the most reliable in determining the prior day’s price movement and prior to the Tokyo open. For this analysis, I use a 50 EMA on a 60 min chart and go through the following currencies against each other AUD, CAD, CHF, EUR, GBP, JPY, NZD USD. If the price is above the 50 EMA the base currency is strong against the Quote currency. If price is below the 50 EMA then the Base currency is weak against the Quote currency. "
JackD_123
⋅
@AGold54, Hello Allen, I hope you and those close to you are well. Good thing that the Storm stayed of the coast while it passed your and my locations. Thank you for the insight into determining strength. I will put in the work in my daily trading.
AGold54
⋅
@JackD_123, Thanks Jack, I appreciate it and glad you and yours are safe as well.
I agree. The one who spends 8-12 hours on the computer is likely "living to trade", as if they're playing a video game. Where the one who places 1-3 trades a day (or week) with a high RRR is more likely "trading to live" which means they make their money then go and use that money to enjoy life. I've switched from placing 50 -100 trades a day (the RRR was upside down) to placing 1-3 per day (the RRR is about 1 to1 ).I'm still learning to identify the setups with the RRR's of 3 to 1 or better.
Thanks for all the educational posts, I'm now studying the Ichimoku indicator to help with the bigger RRR. May you always be green. Merrick