[thalestrader]

Originally Posted by MidKnight »

I gotta wonder why you are not trading on forex if you method seems to work this well?

I don't think of what I do as a method so much as an approach. I do trade currency futures from time to time, as the approach works on any market.

Thank you for the kind words,

Best Wishes,

Thales

[bathrobe]

Probably the reason I (and maybe some of you) trade when you should take a sick day:

I have a problem with what I would call "over-excitement" regarding all markets, trading them, spending tons of time (possibly way too much time) trying to build systems, coding indicators, reading books, both good and bad, and going through the ever-expanding wealth of information on the internet regarding trading (much of which is not worth going any where near) THIS SITE IS THE EXCEPTION

Nonetheless is am sure we all have this problem, our obsession drives us to become the best we can be.

Chris

[thalestrader]

Hi folks,

I thought I'd make AKS pay me back for the loss it handed me yesterday, but it had the last laugh and threw me off for -19 pennies. That was and is likely it for me today.

My daughter had two trades: breakeven on a short USDCHF and +85 ticks and change on a short EURJPY. As of right now, she is +18.82 for the day, and closed equity is $141.57. She definately has an affinity for the eurjpy.

An interesting development today: She shorted the USDCHF on a break of support. That is how I taught her. However, she shorted the EURJPY as it failed to break through resistance. She did ask me if it was ok. I asked her why she would sell it there, and she said that if it didn't go higher there, it would probably go back down to the last support, where she would put a limit order to take profit. Well, its not the way I trade, but who am I to argue with sound reasoning?

We're all heading out for lunch, and it is doubtful there will be anymore trading this week at the Thales home.

Best Wishes,

Thales

[atto]

Originally Posted by thalestrader »

An interesting development today: She shorted the USDCHF on a break of support. That is how I taught her. However, she shorted the EURJPY as it failed to break through resistance. She did ask me if it was ok. I asked her why she would sell it there, and she said that if it didn't go higher there, it would probably go back down to the last support, where she would put a limit order to take profit. Well, its not the way I trade, but who am I to argue with sound reasoning?

Hot damn, you have a trading prodigy on your hands.

Question, out of curiosity: why did she scale up size already? Isn't she quite leveraged as is? While it looks like she's had some mighty fine instruction, she's on an amazing run.

Congrats man.

[thalestrader]

Originally Posted by atto »

Question, out of curiosity: why did she scale up size already? Isn't she quite leveraged as is?

Well, I actually wanted her to trade 1 microlot/$25 in equity, so, according to my original plan, she should be trading 4-5 microlots. She wanted to wait until she got close to $100 to add a second microlot. So right now she is trading two microlots, which makes a position move at $0.20/tick.

If this were her life savings grub stake, then I would say yes, she is overlevered even at 1 microlot. Her usual inital stop is about 50 ticks, so at 20 pennies/tick, she is looking at a max risk/trade of about $10. I think she only had one trade where she was stopped in and price immediately turned and ran through her stop for the full loss. Of the losses she has had, price usually moves in her favor, reacts against her position, resumes its favorable move (so she moves her stop to the reaction point) and then turns again and stops her out for a loss much smaller than the initial stop. Her average loss is 20 ticks, which is $4.00 on a 2 microlot position.

Also, as this is a very small amount of money, and, since this is a bucket shop account, and she cannot go into deficit, I am not at all concerned.

Best Wishes,

Thales

[BlowFish]

Originally Posted by thalestrader »

Well, I actually wanted her to trade 1 microlot/$25 in equity, so, according to my original plan, she should be trading 4-5 microlots. She wanted to wait until she got close to $100 to add a second microlot.

That made me smile. Not only discovering her own trades but sorting out her own position sizing too.

[thalestrader]

Originally Posted by BlowFish »

That made me smile. Not only discovering her own trades but sorting out her own position sizing too.

She seems to have intuited the concept that "if you don't bet, you can't win, but if you lose all your money, you can't bet." While I still think that the reason she has done so well is because the money is not important to her; yet that does not explain the fact that she has been far more reserved and cautious than I would have expected.

For example, I have been trying to coax her into adding to her positions as price moves in her favor, but thus far, she has resisted.

I am apparently far more curious than she is to see the power of pyramiding in such a highly levered instrument. I figure that so long as she waits until price moves so as to allow for the stop on her initial position to be moved to breakeven, adding to her winners ought to produce some stunning profits.

All in due time, I suppose.

Best Wishes,

Thales

[diablo272]

Congratulations to you and her both, I just think it's incredible that someone so young can even get a HANDLE on trading. Excellent.