Trading Ftse £1 Per Pip, With 3000 Pip Stoploss!! :)

Aloha people, im back again!! :cheesy::clap::cheesy:

And ive got my new latest plan!!




I have been looking back and thinking why and exactly i was losing my money when trading, and i have finally worked it out!!


I was thinking like a banker or a hedge fund manager previously, alway thinking about trying to preserve the account balance, and so use as low stoplosses as possible to keep losses small...

But then i have now started thinking deeper into it!!

I am not a banker or a hedge fund manager!!
Im a logical straightforard direct thinking boy.



So now instead of thinking conservatively and economically at it, lets think logically about it!! :cheesy::cheesy:


Problem = I was losing my money because the value of the thing i was trading touched my stoploss.

Solution = If the value of the market i trading didn't touch my stoploss ever then i wouldnt lose my money ever!! :cheesy::cheesy:

Answer = Simply pump a ridiculously high amount of cash into the account, and then use all of it to have a absolutely ridiculously absurd stoploss that would take the entire market to be wiped out for it to be hit!!! :cheesy::cheesy:






1. Sounds absolutely absurd and ridiculous you think??

2. Incredibly stupidly risky??


If you do think the 1st statement you are correct, but if you also think the 2nd statement you really should pop into your local hospital for a brain scan!!




This method will work incredibly well on the FTSE 100 futures market, and will be 1 millionth as risky as the stratergies most of you who trade will be using!! :cheesy:

For example on the FTSE 100 is currently at 6080, after a 4days of straight falling from over 6400!!

Looking at 3month - 2year graphs the 6000 mark, which was previously a cross-over level, is now quite solid support (unless there is big problems like banking stuff 2months ago).

So on tuesday morning at 7am i am going to buy into the FSTE futures market instantly when it opens, at £1 per pip with a 3000pip stoploss!! :clap:


So i now dont need to worry about anything unless the ftse suddenly drops 30000points, back to the value of the UK economy back in 1992!!!

The likelyhood however of the entire UK market falling back to the value that it was 16years ago is probably not too far from the odds of you winning next weeks lottery!!

But the likely hood of it going back up to above 6500, where it stayed for the majority of 2years between 2006 - 2008 is very very likely.


It may take a few weeks, may even take a few months, but eventually i will make £500 profit for just a few seconds work clickking a few buttons on a screen!! :cheesy::cheesy:




I havent just come and posted this so you can all think what an arrogant **** this guy is though...!!


Im very very curious to know why most of you traders out there dont all also do this???
Loads of you claim that you have thousands - hundreds of thousands of pounds, so why dont you all just make yourself millionaires using 5999pip stoplosses, at £1,000per pip???? :-0:-0:-0

isn't this what mp1690 was doing ?

spanish89 said:

The likelyhood however of the entire UK market falling back to the value that it was 16years ago is probably not too far from the odds of you winning next weeks lottery!!

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Unless you happen to have a pyscopathic, demented Jock in power, determined to hang on as PM at all costs, fcuk anyone else, even the poor whom he's supposed to champion

spanish89 said:

It may take a few weeks, may even take a few months, but eventually i will make £500 profit for just a few seconds work clickking a few buttons on a screen!!

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Let's see, 500 gbp over 12 months. Wow, that's about 1.50 a day.
But surely even Ronald McDonald is paying more than that these days ?

What are index funds paying in UK nowadays ? 'Cos 500 profit represents about 15% of your "risk".

I'm not saying you're wrong or that the strategy is flawed. I just whether it's worth the effort of getting out of bed once a fortnight to check prices ?

LOL

£500 isnt going to be my yearly salary hopefully!! haha


I dont kno if you are a rich sucessful trader with 1000s of pounds in your bank..,
but for me at 18 £500 is alot of money, even if it takes 6months to get to it.

Il start by making £500 profit,but then will buildup and up and up from there.


I lost £2000 in 3weeks when scalping a few markets at £1 per pip!!

So this risk is far far far smarter and better than any scalping sort of risk.

Spanish..... Don't do it!!

Welcome back. Glad to see you're alive and kicking.

Aspire said:

Spanish..... Don't do it!!

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I think this answers the post the best.

spanish89 said:

Aloha people, im back again!! :cheesy::clap::cheesy:

And ive got my new latest plan!!

:
Im very very curious to know why most of you traders out there dont all also do this???
Loads of you claim that you have thousands - hundreds of thousands of pounds, so why dont you all just make yourself millionaires using 5999pip stoplosses, at £1,000per pip???? :-0:-0:-0

Click to expand...

Wisdom of the crowds perhaps ?

Good to see you back.

isn't this what mp1690 was doing ?

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No that was mp6140, maybe you have confused him with his brother


Paul

£2000 is Rathcoole's comm's per single trade.

Grant.

a bit more now with the exchange rates between the baht and the dollar :-(

Ah! Spanish my friend in amongst all you have written there are some good points and even if the post gives a lot of readers a good chuckle I see that you have learn t a valuable albeit expensive lesson and are now using a more systematic approach regardless of whether it works or not you will become a better trader in time.

I do not trade the ftse but longer time periods and bigger stop losses are definitely a good idea.
I also think you can decrease your stop loss to a 1000 or even 500 points increase your risk and show a profit 3/4 greater than the 500 you are aiming for.And you will not have to wait years to accomplish that Just work on your entry!
Like I said earlier I do not trade the ftse but a 500 point stop loss is more than sufficient in forex if you position trade.
Good Luck and hope to see you as a member of T2W long into the future.

Enter as close your stop as possible.

Find sufficient evidence that price will be/is moving away from a support or resistance zone. eg a bullish outside bar reversal at support means the bears have been royally screwed up the ar5e by the bulls!

Place your stop in the safe zone ie outside the support/resistance zone.

Also cut out the scalping cr4p until you're proficient in the longer timeframes.

Entiendes lo que quiero decir? Always KISS

sounds like a "if I do this, then surely it will work moment" we all have them from time to time but they will fade.. eventually... if you think about it rationally the only proof you have is that your stops keep getting taken out "right" ok... so logically if I widen my stops then they wont get taken out "right" ??? WRONG!!! you WILL loose more money..... why.. because I am guessing you might the type of Guy how is not sure when to EXIT a trade in the first place, otherwise you would not be talking this way...

This is not intended to be insulting at all... but you are clutching at straws me old mate.. short term profitable trading is VERY difficult... personally my "longs" i.e.things I hold onto for longer periods of time say months rather than minutes and seconds are generally MUCH more profitable...

If I trade anything shorter term I always tip the balance in favour of profit... "but how" I hear you ask???

Boring old stuff

ENTRY / EXIT
Money managment
Emotional control

etc etc etc.... youve heard them a 1000 times...

I always know that IF I take the profit it will be more than the potential loss in "EVERY" situation on "EVERY" single trade... which makes you feel warm and cozy on the inside ehh...

if i had a bigger bank than i think i would trade longer timeframes and with bigger stops for sure so actually not a bad idea spanish. But like the other guy says i think you could realistically narrow the stop down a bit, actually alot, find a major s and r level and put it past this, enough so that you do not get taken out by a double bottom or top as they sometimes go a little further than the major s and r lines and if it hits it just accept defeat. If you have trouble accepting defeat on a trade then un fortunatley you cannot make it as a trader as no one wins all the time so a realstic stop will be good for you and your development as a trader.

What about compounding profits when you reach a certain target, say £50 and then trailing the stop up or down with it?

Trading? Investing? or just plain Gambling?

Hi ya Spanish,

Ok, lets look at this in a bit more detail:

Firstly this would be blind and hopefull investing at its best, not trading.

Now for the ftse to drop to say 3000 from its current 6000 level would be a representation of 50%. This is extremely possible at cyclical periods of trading history.

To mantain your account you'd have to have around 3k variation margin(profit/loss) and £200ish (depends on broker) for contract. If your looking to get an amount of 500 pts you must at least have a time frame in mind as it would expire at a given time months down the line.

It's highly likely you will succeed as it's more likely to go to 6500 before 3000 but what about risk/reward ratio. It's way off. Which means:

If at some point the contract doesn't come back to make you any profit whatsoever before expiry then you would have to fund your account with more money to cover (potential) margin.

Given time you would find (just like a casino) that the more you play this type of strategy you would be far better off investing the money into a bank.

This also doesn't account for inflation which should always be noted. If after 1 year of having money on account with broker you would EXPECT a return of at least £100 to cover inflation, if invested into an ISA you could EXPECT to see returns of more than £280.

Now the risk/reward seems even worse.

One simple concept, if it is about having loads of money and nothing to do with sense or trading styles, then why dont all the m/billionaires just do the same thing.

Maybe they just haven't noticed what you have and you're the one who is going to exploit it.

Run some backward tests on this strategy and dont forget to include loss of interest plus inflation and you'll soon see that compared to a standard bank account it doesn't stake up.

Good luck with your venture but I feel that you have just found yourself a new way to lose more money.

Lee Shepherd said:

Hi ya Spanish,


One simple concept, if it is about having loads of money and nothing to do with sense or trading styles, then why dont all the m/billionaires just do the same thing.

Maybe they just haven't noticed what you have and you're the one who is going to exploit it.

Run some backward tests on this strategy and dont forget to include loss of interest plus inflation and you'll soon see that compared to a standard bank account it doesn't stake up.

Good luck with your venture but I feel that you have just found yourself a new way to lose more money.

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actually some millionaires do trade this way.

And there are a couple of traders i know who are quite rich and don't have the time or patience to screen watch all day, and actually trade similar to this.

Im not saying its clever or infact trading as we know it but i do know guys who have and are having success, infact much more success than me and not spending hours screen watching either....

Just a thought

Interesting stuff jayjay,

I'm not sure what your saying but it sounds like 'it's ok for spanish to do it this way (even though he has debts and a very small balance) but it's not ok for you to trade this way'.

If you know 'traders' that do this (and its not trading its investing at its best) then why not ask for there help or trade the way they do.

If it's ok for spanish then surely its ok for yourself especially when you state they have more success than you.

Or, simply team up with spanish, or maybe you're recommending him to trade this way cos you know it dont work as good as money in the bank or you want him to fail cos you haven't succeeded. I dont know, dont shoot me.
I'm just throwing the questions out there.

It's a balanced discussion. (or is it?)

jayjay121 said:

actually some millionaires do trade this way.

And there are a couple of traders i know who are quite rich and don't have the time or patience to screen watch all day, and actually trade similar to this.

Im not saying its clever or infact trading as we know it but i do know guys who have and are having success, infact much more success than me and not spending hours screen watching either....

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yes what im saying is i want spanish to fail as im too a failed trader so i would feel more comfortable if he too would join my club, and we can be failed traders together.....I would love that.

The reason i cannot trade this way is simply because i do not have a 200k account but if i did i would change my current style yes.

tkimble is a well known trader on forexfactory who uses his weekly and daily trading systems, ok he does not use a big stop lose and infact uses a stop and reserve approach but he has a huge bank

prop said:

spanish, you are a muppet, plain and simple !


a month ago you wanted to be an oil trader, now you want to be a ftse investor,what exactly do you want to do ?

stop right now as you are heading for a big fall here.

take the money you are going to use for trading, and instead of giving it to your chosen charity spreadbetting company (which i guarantee you will do) do yourself a favour and learn something, read some of the books that people have recomended, markets wizards, trading in the zone etc etc
look at some of the strategies people talk about

then once you have read them you will realise what utter cr@p you have been talking

i think the crux of the problem here is that you are too lazy to actually do the work that needs to be done to be a trader/investor etc, and you just want it handed to you on a plate !

this time next year you will NOT be still in the game !

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In his own way spanish is asking for constructive comments !
He has the courage to publicize his views and comments he will digest what he reads here and become a better trader.

spanish, you are a muppet, plain and simple !

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What exactly are your credentials that you feel that you can make fun and ridicule someone trying to learn?

this time next year you will NOT be still in the game !

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Chances are he will but you probably won't!

there you go i have deleted my post as it has obviousley offended you
i have been involved in the market for over 12 years now from liffe floor to prop trader
so i feel i do have some credentials
anyway go back to your pound a point stuff and i will stick to what i do
i am out of here