Aliassmith Psychology 101 and other stuff

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aliassmith
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Postby aliassmith » Wed Feb 16, 2011 8:24 pm

Libertarian wrote:
aliassmith wrote:I received this question in a PM. I figured I would answer it here as it
may help others.

You often us the terms "order stack" and "order stack areas". Can you define what you mean by this?

An order stack area is where I believe orders are bunched up and will
cause price to reverse. If you study many types of trades and how people
place and adjust their stop loss/entry orders you can get an edge from
this information.


You da man aliassmith!


I do what I can! :oops:
Trade Your Way as Long as It Makes Money!

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aliassmith
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Postby aliassmith » Tue Mar 01, 2011 3:27 pm

aliassmith wrote:I received this question in a PM. I figured I would answer it here as it
may help others.

You often us the terms "order stack" and "order stack areas". Can you define what you mean by this?

An order stack area is where I believe orders are bunched up and will
cause price to reverse. If you study many types of trades and how people
place and adjust their stop loss/entry orders you can get an edge from
this information.


Order Stack Areas in yellow ellipse.
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aliassmith
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Postby aliassmith » Fri May 20, 2011 5:21 pm

Good to see the site is back up 8)

I figured I would add a little something in appreciation!

As you can see in my signature line I believe in the concept of my
money and their money. Or instead of their money I call it discounted
money.

My trading edge stems from identifying order stack areas AKA as supply
and demand, zlines, ect.

Money management is key in the process. I risk the least when I have the
most to lose. Having the most to lose is when I only have what I brought
to the trading "table". This is usually around a month of trading I reset my
risk gearing. At this beginning I call this "my" money.

As I trade with low risk and good trades I build up about 4% return on
my starting equity. With this 4% discounted money I can build nice positions
and maybe a little more risky entries.

And that is the back bone of what I do.
Trade Your Way as Long as It Makes Money!

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PebbleTrader
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Postby PebbleTrader » Fri May 20, 2011 10:11 pm

I can see where the idea of "market money" can make sense. In particular if you are going to "aggressive push" the next trade. I used to not believe in the idea. Primarily, because if I did the work to create a good plan and execute winning trades, then I considered it "my money" at that point.

I've heard that traders who use the "market money" concept determine their account equity differently.

For example:

If you have $50,000 account equity and put on say a $5,000 position. You still have this position on and want to take another position, would you then base your account equity off of $50,000 - $5,000 (your open position) = $45,000 account equity for your next position? or would you still base it off of the $50,000?

Just curious.
Life is just a journey

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Postby aliassmith » Sat May 21, 2011 7:05 pm

PebbleTrader wrote:I can see where the idea of "market money" can make sense. In particular if you are going to "aggressive push" the next trade. I used to not believe in the idea. Primarily, because if I did the work to create a good plan and execute winning trades, then I considered it "my money" at that point.

I've heard that traders who use the "market money" concept determine their account equity differently.

For example:

If you have $50,000 account equity and put on say a $5,000 position. You still have this position on and want to take another position, would you then base your account equity off of $50,000 - $5,000 (your open position) = $45,000 account equity for your next position? or would you still base it off of the $50,000?

Just curious.


Actually my platform is set-up to make my position a certain size based on
my equity. I believe it is 4:1 leverage.

When I make 4% profit which could take a few days I will increase the
automatic setting by at least 25% more. As my profits increase I will move
by base risk up. When about 1 month is over I will gear my risk back down
to my 4:1 leverage.

I forgot to put this in my last post: My Influences
MightyOne - Kreslik.Com
es/pip - Kreslik.Com
Phantom of the Pits - Futures Magazine
FTI - ForexFactory.Com

MightyOne, Phantom, and FTI use some form of position gearing.
MightyOne and es/pip have some of the best entry techniques.
Trade Your Way as Long as It Makes Money!

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Postby pp2 » Sat Dec 08, 2012 8:04 am

Hello everyone, I'm still around, lurking, reading and digesting everything here. I'm not posting much as I knew from my skills I couldn't bring anything constructive back to help or to even ask questions.

I just wanted to vent an aha moment I had a few weeks back while visiting this forum, particularly this thread. While being stressed out looking for good entry points so I can make 2:1 over a fixed stop and getting mixed results, it just frustrated me to the point where I had enough and I just wanted to give the hell up. Then DING! the lightbulb just came on when I started asking ... How can I make money from trading? How can I do it safely?

I can show you all about entries but this isn't the magic I'm talking about, it is "manging money". This week I decided to try and trade the higher timeframes H1, H4, D1 and weekly with this aliasmith variation of space. I know in general MOs ideas but it helps me to understand the common sense of it without the maths which I really struggle on. Here's some answers I've come up with so far

*Use other peoples money, risk that money, and keep risking that money
*Either take a profit or take a loss

The guidelines for me to take a position was

1. I was prepared to take a loss of 5% for the whole week
2. Trade the move from the average weekly extreme to the next, in multiple trades.

P1 I risk x% of my base capital to make x%
P2 I risk only the profit I made in P1 (increase lot size)
P3 I risk only the profit I made in P1 and P2 (increase lot size more)
P4 I risk only the profit I made in P1,P2, and P3 (increase lot size more)
Go back to P1 recalculate with new account size.

On a live account roughly $1000

P1 --- risk my money of $50 with LIS --- Mon/Tues AU - 50 space, lot size $1=1pip, 50 pip target hit 5% risk --- gain $50 --- total money now is $1050

P2 --- risk other peoples money of $50 --- Tues/Fri U/CHF 50 space, lot size is $1=1pip, 65 pip target hit --- gain $65 --- total money now is $1115

P3 --- risk other peoples money of $115 --- Fri EU 50 space, lot size is 115/50=$2.3 per pip, 35 pip target hit --- gain $80.5 --- total money now is $1195.5

I traded a little on Friday so I didn't finish phrase 4 but even then I took three positions this week and my final account ended up 20%! Probably peanuts for you kreslik veterans but damn exciting to me, not just the percentage or pip win but but the almost stress-less part time trading over what I think are ok, about there entries and exits, and even if I did lose I was prepared to close out my position when something closed over my LIS. Loving trading again and looking forward to next week although worried about the liquidity this coming holidays.

Thanks alias for this watered down version and thanks MO for the space ideas. And thanks to everyone else for their entry ideas. Any comments is greatly appreciated.

Risking other peoples money is empowering!

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Postby dojirock » Sat Dec 08, 2012 2:55 pm

Thats not peanuts! Fantastic. Always nice to see a plan and it being followed.
Thats what its about.....stay motivated and dont stray. Remember, your one week ahead of 95 percent of alll traders!

:D
It always takes Momentum to break Momentum!
"A small loss is just as satisfying as a large gain" -MO
"Sometimes we need to stop learning and start thinking...."
"Once you stack, you'll never go back!"

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Postby withnail » Sat Dec 08, 2012 10:15 pm

Nice to see your still around PP2 and trading is going well 8) I found that great post from alias myself a few weeks ago and have used it to make a simplified space plan that suits my simplified brain :twisted:
My maths is also a bit crappy but I realised from something G told me that if I used fib numbers then I get set ratios. If you trade the $10 a pip pairs with a us dollar account you can do something like this.
Image

Cheers Withnail
1. Big loss, 2. Small Loss, 3. Big Win, 4. Small Win --- just prevent 1.

pp2
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Postby pp2 » Mon Dec 10, 2012 4:39 am

Hey Doji, hey Withnail, many thanks for all of the encouragement. Simple has always been best and a plan will always help. There's more time to plan for a trade now since I'm trading the htf so that's good, but I admit my heart still wants to run or do something, this patience thing is a new experience for me.

Withnail, my maths is humongously horrible. All I know is if I make 100 dollars, I put that in the pot and risk it since it's not mine in the first place, and that makes sense to me. I'm looking at your table and I see good in it ... another way to optimize gains quickly with no risk, although I'm not sure how fib numbers fit in, I'll be thinking about it all week and hope the sub conscious can click.

It's been a few years on this trip and it's about time I got around to making some money! :twisted:

Good hunting everyone :)

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Postby Captain Pugwash » Mon Dec 10, 2012 11:13 am

HI PP2 - that was indeed a great AHA moment

this is how to use the fib tool and fib numbers to step up your held profit to increase your lot size

I like it because i am crap at math - and its visual and simple
"MOJO 1)Self-confidence, Self-assuredness. As in basis for belief in ones self in a situation. Esp/In context of contest or display of skill such as going into battle. 2)Ability to bounce back from a debilitating trauma and negative attitude YEH BABY

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