Here's a question I'd like some guidance on. Say your entry method has a good probability of working At 9am you get a short signal and take it, let's say Cable at 1.5765 Price moves lower, stop is moved to unchanged However,at 11am you get another ...

Building an equity millipede

Here's a really quick and easy way how to diversify. Diversify when you account hits say 10% or 20% net liquidation balance, ie close ALL your positions and start again with the higher cash balance, starting balance + 10%.

Building an equity millipede

Trade, Barbs is 100% right, the markets are almost living so to try and put a set of hard rules around them is often not the way to go. Personally I find the diversying the easist part. Just look for big levels on the day/week chart. Here's a quick ...

Building an equity millipede

Don't forget that the other use of the 3x20 exercise (or a vairiant of it) is to practice everything else relating to trading. Making money is more than buying/selling at the right price although that of course helps a lot . It gets you used to ...

Building an equity millipede

This is very topical relating to the 3x20 exercise and in turn GETTING INVOLVED in the markets on a daily basis. I'm on a few free email lists from trading blogs and this just came through. ...

Building an equity millipede

Ultimately the 3x20 exercise is not really about 3x20 it's about forcing people to get INVOLVED in the markets everyday rather than reading forums and books on trading or playing around with spreadsheets. That's why the 3x20 exercise can be modified ...

Building an equity millipede

Yes. And from a probabilities point of view part time traders who don't put the time in to learn their craft are no match for professional traders who have put the study/practice time in and are trading every day. No different from sports, part ...

Building an equity millipede

Not me personally. I would judge my method by how confident I am with it and I could only get that confidence by living with it everyday for long periods of time. The trouble as I see it with relying on stats before you live and breathe your trading ...

Building an equity millipede

One way is to put 6 months of work in via the 3x20 exercise. If you can, work 8-12 hours a day following the 5m chart. Keep good records, go back after the day has finished to see where you went right and where you went wrong. Doing this you'll ...

Building an equity millipede

Barb, yes that will help but only if you have a decent method of entry, that is the main point the 3x20 exercise attempts to teach people.

Building an equity millipede

Let's think sports for a moment, say Football. John has talent, no doubt about that but he's lazy, goes to bed too late, doesn't eat as he should etc. Simon also has talent but is one dedicated mother. He goes to bed early, only ever drinks in the ...

Building an equity millipede

Only take the 2nd trade! Here's a concept for people struggling with putting on good positions that 'last'. One of the problems with trading this method, in fact any method that relies on direction continuing is the curse of getting stopped out at ...

Building an equity millipede

Yes, good way of looking at it. G once said that when you diversify you're now playing for free!

Building an equity millipede

As or the answer to whether one should include mark-to-market profits or only include realised profits. There is of course no right answer, it's up to you, what works best for you and your mind. Don't discount the role your mind plays. For me, I ...

Building an equity millipede

I agree. Create your own position sheet using Excel it will be very similar to a FIFO broker's statement plus you may save some money on interest charges. 1 tip I've found useful for Excel is to use Verdana 6 or 7 point. It makes it small on the ...

Building an equity millipede

Some nice posts there on stacking. Thanks Vee.

Building an equity millipede

Vee, being a geek in this game is a virtue...

Building an equity millipede

Here's the spreadsheet to work out how much to trade per set amount of risk. Only fill in the yellow boxes - Risk is the amount of risk you want to take Entry and stop levels are self explanatory The tradeable amount (rounded) is then given My base ...

Building an equity millipede

Yes Biz, I think it's critical to get trading as much as possible. Keep the risk tiny until one starts to understand things better. Only increase size when showing positive results. Realise that losing and mistakes are actually good because they ...

Building an equity millipede

Very impressed. Folks, with this sort of position building (on a regular basis) you only need a few good moves a year to make an excellent return on your capital. And yes, chances are that most of Vee's trades today won't work, either losing him a ...

Building an equity millipede