Rules of Engagement

[ForexJoe]

This thread is for students to share information on daily basis in many different areas.

Much of what we do, is based on rules of engagement in trading, life, and certainly preparing for success.

My articles in One Man's View contain pertinent info and suggestions concerning Psychology of Trading Utilizing Mindset Principles®

Most of my posts in OMV are about psychology mindset for successful traders. I want to challenge you, utilizing the computer residing in the small space between your ears.

So welcome and enjoy...

Our journey is just starting on the road to significance...

[ForexJoe]

During our time together for Non Farm Payroll Friday March 6th, 2009 included sharing how to have a predetermined plan in advance before any news drivers.

Here are:

Rules of Engagement for News Events

1. Sell off ALL of position and take FULL pip profit.

2. Sell off portion of position, turn into a Low Risk/Gravy Train Strategy

3. Let it Ride... You have decided you have enough wiggle room to withstand possible onslaught of news of pair coming back to retest your BE+1 position.

That is it my friends.

It is simple in theory, yet when you learn how to have many open positions it becomes an issue to keep focused on managing those Gravy Trains.

It becomes even more challenging when Gravy Trains are generating positive pips without any stress to your account.

[ForexJoe]

As traders, we need to learn how to defuse the emotional power of the subconscious fear of being wrong and learn to embrace the concept of probability.

The subconscious mind must be trained new habits over a period of time. Every person is different, depending on how much negative garbage you have accumulated in your lifetime

In our achievement-oriented society, there is extreme pressure not only to succeed but succeed to immediately.

Not many are willing to go the distance. The question you MUST answer.

Are YOU willing to go the distance?

No matter how long it takes to accomplish.

Trading success is often a matter of trading with the proper mental edge.

A multitude of adverse events can thwart our trading plans, especially these days.

TIMING has become more critical on entries for those wanting limited account risk.

With that limited risk comes time where you patience is an absolute.

My methodology is quite frankly outside the box. I had to take a lifetime of teachings about money and completely discard past beliefs.

In fact, it becomes logical after a few months of staying the course.

MONEY… is a tool used to barter for goods and services, nothing more.

Does not matter how much you accumulate in a lifetime. When your time arrives to leave, you will not be able to take a U-haul with all your belongings.

Once you examine those limitations and grasp, you will be on your way to changing your sense of direction in life.

In closing, We are ALL turtles who will cross the finish line at different times. It isn’t about the race, it’s about the journey.

I don't think anything is unrealistic if you believe you can do it. I think if you are determined enough and willing to pay the price, you can get it done.
-- Mike Ditka

Remember,

Success is never final -NEVER- There is always more to do. --Bill Parcells

Hopefully, I have shared some beliefs and given you something of substance to ponder as your FOREX journey continues or begins.

Till next time, May the PIPs be with you.

Godspeed,

Forex Joe


We Move in the Direction of Our most Dominant Thought--
We Become in Essence What We Believe.
"Do or Do Not. There is No TRY."
--Yoda

[ForexJoe]

Greetings,


All members -

Please put FULL name and currency pair that you stalk (example - EUR/USD) in every post.


thanks in advance

Joe

[dcantin]

Hi Joe,
I did my first trade today and made my first pips.
I got your notice about Eur/USD at 1.3000
I put in an entry order to buy at 1.3011
and sold all at 1.3036.
I left the order with TP and stop loss and by the time
I rechecked the order it had completed.
Great feeling and I know there is a lot more to learn.
I was having problems putting in orders and couldn't get the gravy train order in but I will next time.
Thanks,
Denise :)
Eur/USD

[Ales]

Hi Joe,
I am new to Forex, but I have so knowledge in Technical Analysis from stocks and options trading.

I just got on my first Gravy Train in EUR/USD, and now the pair just blasted higher. Price 1.3010, SL 1.2985, bellow the multiple support, TP 1 at 40 pips, TP 2 at 65 pips. The question is how to manage the Gravy Train ? I moved my stop loss down to 1.2975 which is bellow 1.2978 support, because I want to let it run.

25 trades in EUR/USD, and some trades in other 3 main pairs.
Ales

[ForexJoe]

Those with success in TP1 or TP2 trades...

Please move Stop LOSS to Break Even +1

Let the Gravy Train run...

That is purpose for the exercise

We will discuss in further classes how best to mange
Gravy Trains...

Next Stop is 1.3268 / 1.3329 for EUR/USD

[bills20007@aol.com]

Joe,

I am so angry at my self. I went in the Euro trade trade and doubled my money. It was better than ---. However, I can't control myself when I feel good and I just jump into another trade which kills me. My win to loss ratio is 54 % but it takes 1 trade with big loss and I get wiped. I keep doing the same over and over despite my full awarness of my problem. I would be a very successfyul trader if I can control the feel good attitude and just jump in based on on some percieved assupmtions. I have had it with myself and I don't know how to correct it. Believe it or not my DEMO TRADING ACCOUNT has exponentially increased and my real account went south in the same time period. What do you suggest? I know I can win more than I lose but I just hang on too long with the losers. It is like I am afraid to lose.

Sorry to dump but I have got to fix this problem in order for me to succeed. What do you recommend?

[johatk]

Bill,
I feel your pain. Been there done that several times...

When I'm on a diet I find the best way not to eat chocolate is not to have it in the house. I call it "Distance Dieting". You can't reach it...you can't eat it.

Put in your stop (set an alarm if you need to come back and go to break even +1) and walk away... It's the only way...Easier said than done...and can't profess to having it right yet. I've been trading every day for 10 years and am only just being able to stand back and take a "bigger picture" view.

For me....being at the other end of the world helps I got to TP2 last night went to bed...and woke up to a good nights work on the Euro....If I was watching the screen there is no way in the world I wouldn't have taken profit.

Let the technology (and Joe) do the work.
John Atkins - EUR/USD GPB/USD

[johatk]

Joe,
I was wondering the reasoning behind the exit on the EUR/USD last night as per alert. (Getting all my alerts thanks) Is this not the Gravy Train portion of the trade. When and why do we call in the Fat controller to signal us in. At yesterdays session there was an experienced user who was up 4200 pips on the Yen, at one time up around 7000....surely if you hold this long enough the train will derail.
John Atkins - EUR/USD GPB/USD

[Tash]

Today at 10.12 SMS alert: Buy EUR, target 1.3268.price was 1.3133.My entry was like it said, but short after that I was taken out (my SL was hit)
Any one else? Then during the news a new alert:
"position closed"!!!
Didn't Joe tell us to close all our pos. 30 min. before the news?
And volatility was so huge that spread was 30 pips.
There has to be something wrong with your cordination and instructions.

[bills20007@aol.com]

Yes, you are correct. I made money in my demo account because I couldn't reach and eat it. This is really depressing. Please explain breakeven +1. Thanks.

Walid


Bill,
I feel your pain. Been there done that several times...

When I'm on a diet I find the best way not to eat chocolate is not to have it in the house. I call it "Distance Dieting". You can't reach it...you can't eat it.

Put in your stop (set an alarm if you need to come back and go to break even +1) and walk away... It's the only way...Easier said than done...and can't profess to having it right yet. I've been trading every day for 10 years and am only just being able to stand back and take a "bigger picture" view.

For me....being at the other end of the world helps I got to TP2 last night went to bed...and woke up to a good nights work on the Euro....If I was watching the screen there is no way in the world I wouldn't have taken profit.

Let the technology (and Joe) do the work.
John Atkins - EUR/USD GPB/USD

[johatk]

We are trading in three lots. For me 3 mini lots. We have two price targets. Each time one is hit we remove one lot...leaving us with 1 lot to let run (the gravy train.

Once your first target is hit...you move your stop to Break even +1...that is the price you first entered plus 1 pip. Now what ever happens you can't lose money from here. The stop is plus one...just so even if your Second profit target is not hit at least you can say its a winner...a mind thing I guess.

Your stop should be equal to the amount of lots you still have. For example when the first target is hit...you move the stop but now the stop is only for two lots...because you just closed one lot at your first target.

I do this manually...with a limit order for the profit targets and and a stop order for the stops. I set an alarm on my trading platform that SMSs me so I know to move up my stop. I have my profit targets pre set so I don't have to do those every time (I'd hate it to go to Take Profit 2 and pull back before I had entered it in the system.)
John Atkins EUR/USD GPB/USD

[ForexJoe]

Example for those needing help on Breakeven+1

EXAMPLE:

Buy a pair: 1.7550
Stop Loss: 1.7500
Take Profit 1: 1.7650 or 100 pips
Take Profit 2: 1.7700 or 150 pips

1/3 1/3 1/3 on whatever lots you use.

3 lots or 30 lots or 300 lots

Standard lots, mini lots, and/or micro lots

The 1/3 method stays same...

Once Take Profit 1 is taken (in above example)

1.7650

you take off 1/3 of position and leave 2/3 running...

the stop loss is moved from 1.7550 to Break even +1 pip

the NEW Stop is 1.7651 or 1.7650 +1 pip in above example

You NOW have a no risk trade in your account...

Hope this helps

Forex Joe

[iluvgravy]

Hey Joe,

Couldn't be any clearer than that Joe - you are a man of great patience!!

I have missed moving my sl twice now and have been stopped out at a loss instead of a break even plus 1 - how do the guys do it - do they use an alert perhaps??

Mike C

[the boxer]

Hi Joe,

I got your notice for EURUSD, GBPUSD and USDCAD.
Here are my trades:
EURUSD 20 pips
EURUSD 17 pips
EURUSD 42 pips
GBPUSD 19 pips
GBPUSD 44 pips
USDCAD 17 pips

All in one session
Lionel W - Stalking:EURUSD, GBPUSD, USDCAD

[Andy Garner | EUR/USD]

Example for those needing help on Breakeven+1

EXAMPLE:

Buy a pair: 1.7550
Stop Loss: 1.7500
Take Profit 1: 1.7650 or 100 pips
Take Profit 2: 1.7700 or 150 pips

1/3 1/3 1/3 on whatever lots you use.

3 lots or 30 lots or 300 lots

Standard lots, mini lots, and/or micro lots

The 1/3 method stays same...

Once Take Profit 1 is taken (in above example)

1.7650

you take off 1/3 of position and leave 2/3 running...

the stop loss is moved from 1.7550 (Should it be 1.7500?) to Break even +1 pip

the NEW Stop is 1.7651 (Should it be 1.7551?) or 1.7650 (Should it be 1.7550?) +1 pip in above example

You NOW have a no risk trade in your account...

Hope this helps

Forex Joe

Hi Joe

:confused:

I may not be understanding this, but are the stops correct?
The (original) stop loss is moved from 1.7550 (Should it be 1.7500?) to Break even +1 pip, the NEW Stop is 1.7651 (Should it be 1.7551?) or 1.7650 (Should it be 1.7550?) +1 pip in above example?

Andy Garner | EUR/USD

[ForexJoe]

Yes Andy,

Your correct... this what happens when your mentor attempts to do many things at once

let's use another example


Buy --- 1.2460
Stop --- 1.2430 or 30 pips

TP1 --- 1.2490 or 30 pips
Tp2 ----1.2550 or 90 pips

Risk return ratio is 1 to 3

Once pair hits TP1 -- then stop is moved to Breakeven+1 pip or 1.2461

Hope this helps

[Andy Garner | EUR/USD]

Thanks Joe

Thought I had missed something.

:D

Andy Garner | EUR/USD

[ForexJoe]

Goal Setting 101 needs to be done daily as part of your personal rules of engagement regimen

Miss a day and that weekend review the Goal Setting 101 webinar until you follow-through

It is okay to take a fall, but brush yourself of and move forward for success

Stay the Course

Forex Joe