Thread: No Stress Trading

If you are a nervous trader like me, no system in the world will work for you. However, I have been focusing on a system that many others have tried and it seems to be working.

Firstly, foget about trading big money if you are a worried trader. Forget about sitting in the front of the screen all day. Forget about the news. Forget moving averages. All you have to check at is the long term trend. Consider fundamentals.

Example, we see that the pound/dollar is quite bullish and probably will always be that way. When you have a look at a 2-5 year chart, you may see what I am talking about. That being said, why don't you just reduce your investment dollars into fractions and go long on the drops (100 pips or more). If it goes down again, buy more and so on. You ought to even plan on a dip out of your original entrance of 400-500 pips. If you cut down your levels significantly, that type of loss should still allow you to sleep at night.
So when do you market? I market when my most recent buy is up 50-100. You will never get rich doing this. . .yet. However, as soon as you see that it is working for you personally and you acquire the confidence of the system, you can start to think about larger numbers. I've attempted paper trading with larger numbers but I had to sit at the computer all day. Very tiring and very stressful. Always had losses and of course had a few wins. But as a nervous emotional trader, the losses really got to me.

I've been using this system for about 6 months and have not recorded a loss however. Sure , I had to sit on a transaction for a little while before it turned positive for maybe 3 months or so but I was able to hold on because the numbers weren't too significant. They did include up as I bought more and more but that's why you have to trade in VERY small amounts until you get the feel for it. I just recently put more money into my account and feel fantastic about it. I'm upping my investment numbers (maybe not Trading amounts) and am very familiar with it. And because you know, that is one of the biggest problems: FEAR!
Today, the lack of dread does not make me do stupid things. I cant tell you the number of occasions even though I knew (or at least had a fantastic feeling) the pound was going to go again, I took a loss because I couldn't stand being at the negative and sitting having to look at it for hours or even minutes. Lets face it, the pound is quite volatile, it's easy to get stopped out to 20 pips roughly. So, I gave up trying to be precise. I buy at service and market at resistance, but those areas are usually major SR places. If you are a newcomer and not able to decide on those regions, dont. Just wait until the end of the trading day and buy only if it's gone down 100 or more pips. BUY LOW, SELL HI ! It's simple.

Bottom line

I nearly forget about this method. . I read it some where before..but not sure the details.can discuss your funds management with this one.

Originally Posted by ;

if you're a nervous trader like me, nobody else in the world will work for you. However, I have been working on a method that others have tried and it seems to be working.

Firstly, foget about investing in large money if you're a worried trader. Forget about sitting in front of the screen daily. Forget about the news. Forget moving averages. All you need to look at is the long-term trend. Consider fundamentals.

Example, we see that the pound/dollar is quite bullish and likely will always be the way. When you look at a 2-5 year chart, you may see what I am talking about. That being said, why don't you simply cut your investment dollars into fractions and go long on the dips (100 pips or more). In case it goes down , buy more and so on. You should even plan on a dip from your original entrance of 400-500 pips. If you cut down your amounts significantly, that type of reduction should still let you sleep during the night.
So when do you market? I sell when my latest purchase is up 50-100. You wont get rich doing so. . .yet. However, as soon as you see that it is working for you personally and you acquire the confidence of this system, you can start to consider bigger amounts. I've tried paper trading with bigger numbers but I still had to sit in the computer all day. Very tiring and very stressful. Always had losses and of course had some wins. But as a nervous emotional trader, the losses actually got to me.

I've been using this system for approximately 6 weeks and haven't recorded a reduction yet. Sure , I needed to sit on a transaction for a little while before it turned out positive for maybe 3 weeks or so but I was able to continue since the numbers weren't very significant. They did include up as I purchased more and more but that is why you need to trade in VERY smaller amounts until you get the feel for it. I only recently put more cash into my account and feel fantastic about it. I'm increasing my investment numbers (not Trading amounts) and'm very familiar with it. And as you know, this really is one of the biggest issues: FEAR!
Now, the lack of fear does not make me do dumb things. I cant tell you how many occasions even though I knew (or had a good feeling) the pound was likely to go up again, I still took a reduction because I could not stand being at the negative and sitting there having to look at it for hours or even minutes. Lets face it, the pound is quite volatile, it is easy to get stopped out for 20 pips roughly. So, I gave up wanting to be exact. I still buy at service and sell at resistance, but these places are generally major SR places. If you're a beginner and unable to decide on these regions, dont. Just wait until the close of the trading day and buy only when it has gone down 100 or more pips. BUY LOW, SELL HI ! It's simple.

Bottom line

Lets say you usually buy one regular lot and every pip is worth 10.00 dollars US. With this system, you have to buy less. Thus, start out buying 1.00 pips. In case it goes down 100 pips, buy another lot of 1.00 pips. Just make certain that you are going in the general long term directional fashion. You can't go long, then short, then long, then short. Just remain in the longer term direction. In case your initial lot using 1.00 dollar pips starts going up, remain in the commerce. Your profit goal should not be less than 50 pips. In the brief run, you might feel its such little cash, however in the long term, it is going to add up and you'll see, it is going to be similar to trading with bigger amounts but minus the daily and plogical losses.

Thanks for the advice.
One more question..if it goes down another 100 pips following the initial 100 pips. . I need to buy 2.00 pips right?

Originally Posted by ;

Lets say you usually buy one standard lot and each pip is worth 10.00 dollars US. With this system, you have to buy less. So, begin buying 1.00 pips. If it goes down 100 pips, buy an additional lot of 1.00 pips. Just be sure that you are going in the general long term directional fashion. You cannot go long, then short long, then brief. Just stay in the longer term management. If your initial lot with 1.00 dollar pips begins going up, stay in the commerce. Your profit target should not be less than 50 pips. In the brief run, you may feel its such small money, however in the long term, it will add up and you will see, it will be like trading with bigger amounts but without the daily and plogical losses.

Hello,

Yes, it's really good system. I have read concerning the machine couple of month back from the book Bird Watching In Lion Country by Dirk du Toit (aka DrForex).

This is a superb system and you can most likely make a larger return afterward any mutual fund or investment being offered on Wall St.

The problem is that all these traders are suckered into Currency Market thinking they should create 20-40% returns every month and pass on systems like this because they think its not profitable enough.

Too bad they'll blow their accounts in less then a year and come to realize its easy, smart systems like this that will triumph in the long term.

Looking at the previous posts and the number of posts each poster already has I guesss that this subject is really a snare from the brokers to suck in new USD shorts in the very top and convince them to keep shorting USD while it goes up, seems like this is actually the buttom for the USD and we'll have at least 2 decades of USD rally, the paper gains that the USD shorts made last two years must materliaze into actual profits

Who knows. Guess thats why its called speculation.

Originally Posted by ;

Thank You for the Information.
Yet another question..if it moves down another 100 pips following the first 100 pips. . I need to buy 2.00 pips right?

No, don't double up. Just buy the same volume. When that purchase is at the profit zone of at least 50 pips, sell it, or, you can certainly put in a stop loss maybe 10 pips below. But every time I do that, I usually get stopped out. Because I stopped using stops, it is rare that I say, wow, Im so glad I had a quit . They seeya, they getya.

No, I am not a broker. But to establish what the longer term tendency is, take a peek at a 5 year chart. Sure, we may be in the highs and it may correct a little....maybe down to 1.95 but surely you can't assert this chart.