Making Forex Go on Auto W/o Software Robotics

Charts.

Chart.

Identification…

…of trade.

Trigger Entry.

Feed in entry level.

Trigger Stop.

Choose between dynamic and fixed stop.

I like the fixed stop that keeps raising itself in chunks, chunk after chunk.

However, you might prefer a dynamic stop.

Trigger Limit. Not necessarily a must.

Put trade on.

Entry triggers.

You are now live…

…and your forex is now on auto,…

… whereby you’ve not used a software robot to achieve this.

Well done!

🙂

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When Money goes on Auto

What does “doing well” mean for you?

Making money – does that mean you are doing well?

Not necessarily.

You could be making money, but in the bargain, your life could be out of balance.

In my world, that’s already a fail.

Ideally, I like to keep the market in my pocket, and be in some sort of balance, such that a feeling of well-being is generated.

What am I feeling happy about?

Firstly, about defining my market scope. I have outlined how I wish to interact with the market. I’ve not allowed the market to define me. That makes me happy.

Secondly, I’ve stuck to my strategy. Before that, I found my strategy. Phew!

Now you try it out.

The market shouldn’t bother you after you’re done with it. See to it. Programme yourself in such a manner. Once you’re done with the market, you can then utilise your time for other vitally important things in life. If the market were bothering you with its constant nag, you would not be able to do these things properly.

Congratulations, your life is now rounded off, and not mono-faceted.

Sticking to a winning strategy when things are not going your way is going to see you through.

I know, the urge to call it off and look for a new strategy is huge when your current one seems to be going South. However, you’ve tried and back-tested your strategy. It should hold and then some. Now, have the confidence to stick to a plan.

Notice something?

I’ve not spoken about money.

Why?

Because, mostly, money goes on auto, when these basics are standing strong.

Useless vs Useful Expansion

I’m guilty of useless expansion. 

I end up doing it all the time. 

Can’t help myself, you see.

I like to keep exploring new stuff in the market. 

The silver lining is, the even though I might be expanding sideways, there are two good things happening also. 

There is no scaling up happening immediately. Good. 

There is also a lot of discarding going on. Things that don’t work out are eventually abandoned. Great. 

My issue is that I might have between 1 to 2 useless strategies in my repertoire at any given time. 

These strategies are not working. In fact they are dying out. Reasons can be many. A strategy might be sound, but it might not be a fit. 

For a strategy to work for you, it must be practically lucrative in the long run, and it must fit you. 

By the time I realize that a strategy needs to be discarded, money has been lost. Tuition fees? Yes. 

Ultimately, things boil down to a handful of successful strategies. It can even ultimately boil down to one or two successful ones.

Get there. I’m trying too. To do so, useless strategies will need to be discarded, like, now. 

The problem is, you don’t know that a strategy is useless till it has hit you a few times. 

Also, you don’t wish to discard something that you think might just work out for you in the long run. 

Fine. Keep grinding, and ultimately narrow down your sideways expansion, till you’re only working with strategies that are yielding, and show a long-term promise of being around. 

Right. 

You’re there. 

Now you can scale up. Doing so using a yielding strategy that fits is called useful expansion. 

Scale up slowly. 

You can position-size, and scale up using profits. This way you are not putting in extra principal. Let the strategy continue to prove itself by yielding. As long as it does so, you keep scaling up on your positions using the newly earned profits. 

Why is useful expansion not easy to maintain?

We get carried away.

We might scale up too fast, and then baulk at a loss when the size of the loss is too difficult to swallow. Large input can result in a largish potential loss.

Trading is about containing loss, and letting profits run. 

Scaling up too fast makes an early loss look big if we haven’t tasted the corresponding potential profits yet. Such an event can even cause us to abandon a successful strategy because we are disheartened. 

Therefore, try not to scale up by putting in new principal, if you can help it. 

Try scaling up on profits alone.

Position-sizing automatically controls the scale-up-scale-down factors by defining the size of a constant stop as a percentage of the principal remaining between trades.

Position-sizing makes one scale-up and scale-down on auto-pilot in a relatively balanced fashion.

Please incorporate this wonderful ideology (which comes from the stable of Dr. Van Tharp) into your trading strategy. 

🙂

Holding the Line

Your systems are in place.

They’re implemented. 

Basics are going. Life basics. Family basics.

Then you’ve got your income basics. They’re safe. They generate income. This income goes towards comfortable upkeep of your family. Some of it is saved. 

Your investment portfolios are firing. Savings have built these up. You don’t touch these, but keep adding to them upon opportunity. 

You’ve just finished implementing all your trading systems. 

Some of these are on auto-pilot. 

The other ones demand a little of your time each day. 

They keep you sharp and all there. 

Nothing much. 

Just fifteen to twenty minutes each. 

Skin off your teeth. 

You tackle them with your bed-tea. 

In other words, you are set as far as being income plus plus plus. 

Good. 

Now what?

Now you need to hold the line. 

What does that mean?

It means everything. 

It means no blow-ups…

…no crazy decisions that impact folios and family…

…basically nothing insane coming from you that will threaten your hard-earned situation or worse. 

Holding the line means making sure basics stay intact…

…folios keep growing…

…and new systems keep developing that add to these. 

It’s really that simple. 

When you hold the line, your next step either maintains status quo or adds to you. Preferably, it adds to you.

However, the simpler something is, the more difficult it is to follow. 

What are the demons that can slay you?

Over-confidence.

Over-ambition.

Hubris.

Greed.

Showmanship. 

Debt.

One-up-on-the-Joneses-ideology. 

This stuff looks pretty harmless at first, but is enough to give rise to cracks. 

Cracks grow… 

…till you’ve either come back to your senses and filled and sealed them…

…or till they’ve destroyed you right down to beyond your basics. 

Yeah, a full blow-up is never really far away, once cracks start to appear. 

Therefore…

…while holding the line…

… you keep reminding yourself about what you’re doing…

…why you’re doing it…

…and that you’re never going to blow up, come what may…

…and that you’re going to keep holding the line, come what may…

…and that your next step is always going to add to you.

Happy Holding!

🙂

Multiples obey skewed mathematics

Income-oriented linear growth… 

… is single-digit. 

There’s something safe about it. 

It’s going to be there tomorrow, and after that. 

Safety means less return. 

You’re ok with that as far as basic income is concerned. 

Not so the case when it comes to wealth. 

With wealth, the multiple comes into play. 

Multiples dance to a different tune. 

The search for multiples can lead to negative return – for a while at least. 

It’s risky. 

The level of reward is coupled to a corresponding level of risk. 

In comes time. 

Wealth-play is palatable because of time not pushing you to the wall. 

With time on your side, the ingredients of your cooking-pot have ample opportunity to sprout and grow into big trees. 

If growth is not able to take off owing to lack of circumstance, this becomes the breeding ground for negative return. High deductibles add to the bleeding. After all, it’s wealth you’re seeking to generate, and there will be a little blood. 

Such is the game. 

If you can’t stomach the ride till the multiples emerge, play the income-game full-time instead. 

However, once you start to digest the wealth-game, you realize that is really quite headache-free and pretty much an auto-pilot avenue. 

You’ll even start to like it when the first multiples emerge! 

Monotony

Plan in motion? 

Let it play. 

Sure, monotonous. 

Monotony bores you, right? 

Boring monotony yielding acceptable results is a good outcome. Don’t spoil its party. 

Divert your attention. 

Try a stunt. 

Risk a little. 

Maybe one out of your ten stunts works out. 

Develop this one further. 

Still working. 

Scale it up slowly. 

Working. 

Auto-pilot. 

Monotony. 

Results still good. 

Stop looking. 

Let it play. 

Look elsewhere. 

Do something new with yourself. 

Soon, it’ll be time to go. 

Meanwhile, build a legacy to leave behind, in your memory, one that benefits many.