Mickey's Journal

[kiravon]

NP 1 M5TF SL -25 risk SL 25/2.5 Actual= -2.5 trailing
NP 2 M5TF SL -25 risk SL 13/7 Actual= -7 trailing
NP 3 M5TF SL -25 risk SL 21/9 Actual= -9 trailing
NP4 M5TF SL -25 risk SL 16/12 Actual= -12 trailing
NP5 M5TF SL -25 risk SL 13/+14 Actual= +24 trailing
NP6 M5TF SL -25 risk SL 15/11 Actual= -7 close of green
NP7 M5TF SL -25 risk SL 20/14 Actual= +13 close of green
NP8 M5TF SL -25 risk SL 25/7 Actual= -8
NP9 M5TF SL -25 risk SL 25/12 Actual= -11
NP10 M5TF SL -25 risk SL 25/7 Actual= +35
A lot rents,

rents matter = 0%
amount of risk/reward matters =100%

Note the fourth column:-

My initial SL by default is -25 which is 3% of bank. Why such high
position sizing?

Because if you note the fourth column the risk soon comes down
to an average risk of -7.5 SL

So even though technically I open with a 3% risk and could
lose that on every trade, in practice I will always move the Stop
level at the earliest opportunity and the risk drops to around
1%.

[kiravon]

Initial Stop loss 25, Average SL = 9 on M5

Now this is not going to sound very convincing

My poor results in the last post were intentional

just 30% winners 70% losers

The truth is I took a flurry of trades regardless of quality

Total wins 71 pips

Losses could have been 7 x 25 = -175 pips NET LOSS = -104

but moving Stop up as quickly as possible to an average of -9 SL,
meaning the risk is limited to just 9 pips on average

Now what do we have?

Total wins 71 pips

Losses -56 NET PROFIT +15.5!

so even trading sloppily every day like this for a month-

with -25 pip SL -2,080 LOSS

adjusting SL to average -9 +310 PROFIT

BIG, BIG DIFFERENCE!


Winning is not just about winning

Winning in not about avoiding losers

Winning is about minimizing risk!

[immy]

As long as the focus remains on "not losing" losses will accumulate. Switch your focus to Making More... and losses will be taken care of... Focus on the process not results! one thing that took me YEARS to understand.... but worth it....

[kiravon]

Absolutely! and for that reason my focus on losing has been
for one post only to demonstrate mainly to myself that even
a poor trader can turn a -2000 pip monthly loss into a +310 profit
just by prudent risk management! That is worth taking very
careful note of.

The 'Neutralizing' Principle isn't focusing on my losses but
rather on eradicating the negative emotion associated
with losses. Losses are inevitable, negative emotional
responses are not.

Expressions like 'rent' is another way to help traders
deal with losses in a more empowering way

Strategies like T20 is similarly another superb
psychological technique to take the emotional
'heat' off individual losing trades

I know that on M5 that winners can really
run on to over 50+, 100+ and even 200+

and the most appealing aspect I found
in the original AIMS marketing is that
AIMS can be relatively stress free as
stops can very often be moved up
to just a very few pips reducing risk
and stress

This was indeed a big part of the early
success I had with AIMS that I somehow
seemed to have since forgotten about

Focusing on the positive outcome is
essential

but I an neutral to each trade I take, I have no idea
if they will win or not. I have absolutely no way
of knowing.

but I know from experience that if I stick to the rules,
am far more selective than in the above posts - I will
get some very nice winners!

and providing I keep my psychology healthy by
neutralizing all fear of loss

( in a way that definitely works for me )

then I know that I should come out well ahead
at the end of the month which is my focus

I anticipate there might likely be a good number of
-9 rents along the way so what of it?

I'm neither attracting them nor seeking to avoid them

They simply don't matter to me anymore!

[immy]

Well Said matey!

[kiravon]

Hope everyone is doing OK!

I'm not trading during the Summer recess but when
I get a few spare minutes I jot down a few notes
reviewing all I've learnt during my time on this site

System hopping is a merry-go-round, it is guaranteed
to take you nowhere! A child will pay a lot of money
for the thrill of going round and round in circles on
a fairground roundabout and end up precisely where
they started

I have been carefully working out the relative position
size for the respective currency pairs

I was always a bit vague on this critically important
matter!

Trading isn't about trying to win trades, its far more
to do with avoiding careless and expensive mistakes

So hopefully I've got that covered now

So keeping the risk firmly under control, protecting
my account is top priority.

The truth is successful trading is boringly simple,
too simple for most of us!

Twenty PhD. graduates were given a simple proven
system and told they MUST stick to the rules,
especially re. money management

19 of them blew their accounts!

K.I.S.S ( Keep it simple, Stupid! )

WE need to be ultra smart enough to see the need
for uncluttered simplicity

and that should be reflected on our charts -

nothing there except what absolutely needs to be
there!

Just one trade today, and possibly just one trade
this Summer

On the M5 a short trade with a viable -19 pip SL
which I was quite quickly able to move down to
+4 pips just above the Green

Eventually I was Stopped at my SL for a +4 profit.

But I consider all these small profits/rents to be
much the same, I don't prefer small wins to
small rents, as collectively they are all break even
on average.

I just wait patiently for those nice winners that
do run on +50, +100 and even +200 or more
(occasionally )

So all these 'break even trades' are just a big part of
the process - its a waiting game

Like true love - you can't rush it - it happens when it
happens

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[immy]

HI Mickey

Reading your posts are like a breath of fresh aim. Its always a good read. I certainly miss your daily updates but happy to learn that you're enjoying your summer in the beautiful country enjoying food and wine!

Hopefully we will all get to read more from you in September... until then... keep having fun and meditate and enjoy!

all the best

[kiravon]

The Holy Grail!

Well time away has certainly paid off!

My second trade this summer +90 pips and rising!

but more importantly, I've found the Holy Grail of trading!
All successful traders do this or something very similar.

Once you discipline yourself to do this on a daily basis
success in trading is assured! I mean it is literally a
licence to print money!

The good news is that this is the real deal, proven over
decades, every trader that does this regardless of experience
will make a fortune trading - for the rest of their life!

The bad news is that it is definitely not what you expect,
and probably not what you want, and for 98% of traders,
including AIMS members not something you will stick with
long enough to reap the rewards - yes I note with some
sadness the journals that have lapsed since I've been
away. I don't know the stories but I hope everyone
gets back to the routine soon

You can succeed!

Its not about systems, indicators or any special edge
over the market necessarily, in fact you really don't need to
know which way the market is going to move in order to
succeed spectacularly!

Intrigued?

I'll give you the answer in a few days, by all means jot down
your best guesses here.

But be assured I am not going to give some essay on my opinions,
what I am sharing here is priceless!! it is truly the only way to
make big money consistently in trading

it is The Holy Grail!

Stay Tuned!

[azadar]

Hi Mickey, glad your back as I enjoy reading your journal.

Im definitely intrigued. My best guess is meditation.

[zlabis]

Hi Mickey,
I'm very curious about your "Holy Grail". If there is one, beside trading disciplinely according to the 5 fundamental truths of trading, to me, it might be trading in direction of the higher timeframe's trend.

But let's see what your conclusion is ;-)

Cheers

Michael