Whats more important- Following the rules VS Making consistent profit each week/month

[Heed Helpers]

Hi Firey6,

I,m looking for a broker that is good without ripping me off.
As you sound like a competent trader what do you think of ETX capital, i,ve heard good things about this business. A friend of mine knows someone who uses this business and they say they are very good. What do you think?

Ana

 

[Shakone]

Did Spanish89 ever blow up?

 

[DionysusToast]

Hi all,

I am also interested in this kind of trading and hearing about spanish89 i was wondering if anyone knew who he traded with as i am looking for a good trusting broker, obviously if the broker he trades with is good then i also want to be part of that so i can see real money is made.

PS: I,ve researched and seen quite a few brokers around but there are so many, i just hope its one that i know of. Please help.

thanks,
Ana

He's with Lemmington Jumpsby - you'd be wise to follow in his footsteps.

 

[malaguti]

I don't agree that long term trading necessarily measns long term success. In fact, I think that the opposite could, easily, be the case. Trades cannot be left to their own devices, day after day, with no control, other than putting more into the pot if it is losing money.

At the same time, let's face it, cutting short trades can, also, lead to nasty, long term losses.

Nevertheless, I prefer the latter. At least, I am out and can think again, maybe, looling at another instrument.

i probably didn't make myself clear..in the long term, my consistent 2:1 RR ration will prevail, doesnt suggest they are longer term trades. It means if I keep on averaging 2:1 following my strategy I will be in the game longer and will confidently say I will succeed
And I disagree with you now with regard to cutting short..my stop loss is as close as it needs to be, but recently my winners are doing extremely well. managing trades is of course part of the job

 

[Splitlink]

i probably didn't make myself clear..in the long term, my consistent 2:1 RR ration will prevail, doesnt suggest they are longer term trades. It means if I keep on averaging 2:1 following my strategy I will be in the game longer and will confidently say I will succeed
And I disagree with you now with regard to cutting short..my stop loss is as close as it needs to be, but recently my winners are doing extremely well. managing trades is of course part of the job

Ok. Curiosity, now, not debate. Do you go for a 20 point and a 40 point target? Or is it more, or less? If I can lock in a profit I'm inclined to let it run but not overnight, although my attitude may change on that one day.

 

[malaguti]

Ok. Curiosity, now, not debate. Do you go for a 20 point and a 40 point target? Or is it more, or less? If I can lock in a profit I'm inclined to let it run but not overnight, although my attitude may change on that one day.

Hey Splitlink, funnily enough spot on with the risk..
recently I sold short at 250, stop loss was at 270..
My target however was 189..so 3:1RR target
As soon as my 2:1 was hit, I took some profit, and have been leaving it since, now managing on smaller time frames. i am not inclined to exit early, in fact I rarely exit unless my stop is hit, (i will never move to break even..thats just my rule which works well) unless i get a buy signal on my lower time frame.
I haven't and that was about a week or more ago. but my 2:1 target was hit the day after entry (almost).
Hope that explains.

 

[Splitlink]

Hey Splitlink, funnily enough spot on with the risk..
recently I sold short at 250, stop loss was at 270..
My target however was 189..so 3:1RR target
As soon as my 2:1 was hit, I took some profit, and have been leaving it since, now managing on smaller time frames. i am not inclined to exit early, in fact I rarely exit unless my stop is hit, (i will never move to break even..thats just my rule which works well) unless i get a buy signal on my lower time frame.
I haven't and that was about a week or more ago. but my 2:1 target was hit the day after entry (almost).
Hope that explains.

Thanks, Once that the price has moved into profit, I often move my stop so as not to take a loss on the trade. Then I can go out or do something else around the house and go back to it, later. I'm not a rigid trader. Maybe, I should be.

Have a good week.

 

[TheLastBear]

I think that if you have a successful trading strategy which allows you to be profitable you should follow the rules in order to make profits. In case you have to chose between the former and the latter I think there is a problem with your trading strategy and you should make adjustments.

 

[Giovan]

Obviously you have been trading long enough. From experience, following the rules is the right thing to do, you start out slowly but with time your account balance will allow you make bigger trades without increasing the risk. IE on a $1000 account, max risk per trade is $20, remain disciplined and you account will be reading 10K and you can risk 200.
The big bang traders I have seen increase their accounts doubly overnight but loose that in a few minutes

 

[Hoggums]

What is more important, and who would you class as a more sucessful trader?

A trader who follows all the rules of using tight stoplosses, only risking 2% of their capital per trading, waiting until a clear trend is already in place before placing a trade,
but after a few years they have only made small profits/losses at the end of each month.

OR

A trader who averages-in to all their trades, who trades against the trend by trading top & bottom formations and so uses very wide stoplosses, where if the market did ever hit their emergency stoploss they would lose 30%+ of their capital,
but after a few years they have consistently made very large profits at the end of each month.

The first trader is the reality of someone learning to trade and gradually improving their profits.

The second is a pure figment of your imagination and does not exist.

 

[bigboyfx]

Its always good to follow the rules. Apply proper money management and reduce your risk and loss. Sometimes it is good to take advantages and trade against the trends, but you'll have to do that on few occasion when you are sure of what you see. You don't know what you blow your account. For me, following the rules is better, on the long run.

 

[resistance]

There is no point in blowing the account if you are following your rules. If we can use martingale to some extent on a good signal then we can recover the previous loss easily. So rules as well as profit making can be done at the same time.