I'm a newbie - I'm taking 10% per day

Hello everybody, i knew this page 2months ago. I got something useful from here and today i decide to post my result of trading everyday. I, just newbie here so excuse me if this post is meaningless. I'm trading with another broker in forex but its not a successful account till now, but with Gold, it sounds good and i earn 10% per day, only with 2 hours trading. I checked many patterns of trading everyday and i found that only within these 2 hours of alldays, the market is hot and the trend in this time lasts only in 7 candles ( Japanese or HeikenAsi) so let me starting.
Today is the first one of September, so all history of my trade is cleaned. I will try to post my result and my position here after trading. Please excuse me for the poor English and very pleasure with all your comment, just learning how to trade!

Im new, my trading plan and strategy is so crazy, so risky. So if ones of you are interested. Let's check it with demo account. My acc starts with 100$ and now it's 115$, i lost 20 $ after gaining 35$ in the last day

Read up about money management

If you lose $35 in a single trade with an account of only $100 that's 35% and 3 losers would wipe out your entire account. You shouldn't risk more than 5% tops per trade, so that's $5...NOT $35!

can you send your trades?

With the first 100$, i took position with 0,05 lots, there was a time when my account got down to 79$, but in 2days, i made it to 115$, i know i take high leverage, but with "super" mini account, i have no way except taking high risk.
But you know, the chance happens only once o twice a day, no more. somedays I was greedy and wanted get 3,4 positions a daywith the hope that i would repeat the profitable wins , it was over posibility of the market.
Today is monday so the market is quite.I havent not posted result.I will do it soon.

yeah, ur right. the first i had 135$ with 35$ profit, then losed 20$ within a trade, it's so pity with bad money management!
Thanks for advice

Decide on your entry point and decide on your stop loss.
Then go here and check your position size, depending on your risk %.

http://www.babypips.com/tools/forex-...sitionsize.php

oh thanks Quezoy for your links, but as i said, i have many choices but i only trade with Gold, the links you posted only for currencies, anyway thank alot

that was what i traded. Monday is not intensive day for market, and today The holiday in America....so
What's so pity i lose 13$ at the beginning, then i got back some cents
The right picture shows my strategy, you see, my method is the same with S3 stratergy of X'man, but i added the Sto(5,3,3) and the RSI12, yesterday is not successful and i tried to trade within the Sto from 56 to 90. At the beginning of this method, I used RSI, but it's only the tool to affirm TDI and Sto.

it's not good result, but at least its profitable....pleasure to your sharing and comments

Test your strategy for a few months and keep a trade journal. If you are consistently profitable then you can boast about % profitability

Have a look at the site Quezoy posted for info on trade journals.

agree, i'm testing this stratergy, and maybe will post this after few months. Honestly i loss a few percents last night because of not concentrating for trading. thanks for comment

again, this can not be stated enough times:
- learn and apply proper money management
- learn and apply proper risk management

I double down on this advice.

Ah, gold is a damn good investment - the catch, you need to be sure when the market's going to move and not all brokers offer great account deals on metals..hope everything pans out along expected lines [pun intended]

One thing I've found is that most newbies tend to unwittingly fit their strategy to the current trend in the market. This sounds like a reasonable thing at first glance but markets change every few years and that is where the danger of trading is. You can trade a trending market, you can trade a ranging market but picking the transition between the two is the tough part, IMO.
So what?
Keep a small account for at least a couple of years. After all, you have decades of trading in front of you. I know even if I won 100 mill in lotto I'd still trade because I love it

10% per day is too risky ..isnt it ?

The devil is in the details on this.

If you take on a 5% risk and set your T/P at 2R, then you win double what you risk or about 10%. So, if you have a $100 account, it doesn't seem unreasonable to risk $5.00. Most would agree with that. In the same line, if you have a $100k account, taking on a risk of $5,000 should have the same psychological impact....but many here say that this isn't true.

There's this documentary about how currency traders did their thing back in the day. I'll post the link to it below. The guy they are filming in London is asked how he can trade such large sums. He says that you just get used to it. It's just numbers. Somehow, he "passed through" a mental barrier that really scares others.

Some will say that he's able to do it because he's not trading his own money. I disagree. Watch the video. The guy chain smokes and is an emotional wreck. His boss is interviewed and admits that while he once did the currency trading himself, he "doesn't have it anymore" and that the business is a young man's game. Translated that means that the entire thing is so nerve-wracking that it breaks down your health and you can only do it by sacrificing the resiliency of your youth while you still have it. Trading other people's money isn't a stress-free gambit.

Anyway, you can make 10% in a day simply by taking on a 5% risk and taking a 2R Take Profit. The trick is in doing it consistently. It's difficult (but not impossible) to find a system that will AVERAGE 10% p/day because systems that consistently hit a 2R TP on a short enough time frame to generate a few signals per day (not p/month) will usually not have a win rate higher than 40%. They'll still be profitable in the long run because ($50x40trades)-($25x60trades) is still a $500 profit. The PROBLEM comes in the losing streaks and the attached drawdown.

You can calculate the max number of losing trades in a row based on 50,000 trades over the course of your life simply by using the following formula:

-(ln(#TradesInLifetime)/ln(%WinRate-1))

For a 40% winrate system, that means that over 50,000 trades, you get the following:

-(ln(50000)/ln(0.40-1)) which is equal to 18.

This means that at SOME POINT over the course of 50,000 trades, you WILL experience a time when you hit 18 losses in a row. You don't know when this will happen. It COULD happen years from now, or this monster losing streak could kick off as soon you you place your very first trade...you just don't know.

What makes this worse is that 18 is the MAX number of losses you can expect to take on a 40% winning system. Before that happens, you'll experience everything else before you hit it. So you'll have 8 losses in a row, 12 losses in a row, 15 losses in a row, 17 losses in a row. These will be randomly spaced out and you won't know when they will happen, but they'll happen too.

So...the losing streaks are really what break people. Most people simply can't take 10 losses in a row (much less 18) before they do things like "take a break to let the market breath" or just start looking for a new system, or another indicator to try and filter out all these bad trades (essentially making up a new system and never testing how the new indicator impacts it overall over a period of years) and so they end up jumping the shark.

The fact of the matter is that the system was never "broke" in the first place. Any losing streak up to and including 18 losses is "par for the course" for a system that has a 40% win rate. If it's really generating 2R profit on the wins, then it's still profitable even if you have 18 losses in a row. People just don't believe it, so they don't act properly by just continuing to trade the system. Instead they break down and their account breaks down with them.

Here's the link to the video promised:

I read an article on this site a long time ago about the math of your account balance. It is really obvious stuff but seeing it actually written down is important.
Basically the argument the post had was that you should 'bet" a set amount every trade, not a percent of your account. You need to remember that if you trade for long enough then you will randomly have an improbably long losing streak. You need to make sure you can loose for an extended time and this is where the set figure comes in....
Think about why

I absolutely agree with you. The only problem is psychology.