The Captains Chest - Naked Trading & Other Stuff

[Jason]

Hi CJ, thanks for starting this wonder thread and sharing your trading style.

I am still a struggling trader, and i have come to see that besides having a good point of entry and exit(as your showing us), the one thing the majority of loosing traders do not understand is the money management aspect of trading. In light of this, can u show us a bit of your money management technique, as i think this part of trading determines 70% of any traders success rate. I think it would be the iceing on the cake for us newbies, it will be a great benefit if we can learn from how you manage your trades as well. Many thanks.

hodgires

To put it bluntly....NO! Sorry...

I've already said don't even think about trading as I do. You can't do it. I don't trade like the majority or traders so I don't use the procedures they use. I'm not teaching anybody to trade as I do. You need to learn basic money management, lot sizing and risk. I don't teach or pretend to teach that.

I am a super aggressive trader who will not hesitate to max out my margin. I am as unorthodox in my money management as I am in my trading beliefs and I will let my broker close trades for me.

It will not work for anybody but me.

CJ

Does risk management determine 70% of your own trading success CJ?

[Captain Jack]

Hi CJ. There was a small scientific study using MRI brain scans and the researchers found that at a non-conscious level normal people can guess the market direction 60% of the time when they make a decision on every update of the chart (if they were more selective, e.g. trade reversals at high or low points, maybe the success rate would be higher). Consciously they were no better than 50% because they would second guess their non-conscious choice by thinking things through. Is your method a highly analytical way of trading, or was the theory arrived at after becoming good at trading through intuition/non-conscious thinking processes?

More like the process you and everybody else goes through....trying to learn all you can, read everything is sight, buy everything to make some quick cash while learning, losing money, busting out, making money but not being able to keep it, going back and reading some more, trying 1001 new indicators and systems and still not knowing what was wrong since I was doing everything I was "supposed" to do.....sound familiar.

Then I quit doing what I was supposed to do and started looking for what was wrong with everything I was told. Why didn't it work. I found out it was never intended to work for me, or anybody else. It was intended to work for the people who gave you the platform you are trading on. The bankers. It's no different that those pretty slot machines in Vegas, with all the lights, colors and sounds. All you have to do is drop your money in and get rich.

Forget the BS you've been told. You have been "educated" to lose your money. All of it.

CJ

[Captain Jack]

So my next question is what happens if there is an accumulation phase after accumulation phase in one direction but no stop run to indicate how we trade the profit release? I think what the MMs might be doing here is setting the NY reversal up so the reversal itself is quick and sharp...CJ - would this make sense or am I totally wrong?

In leg 1 of the weekly shift. So after they have thrown the brakes on the weekly cycle and chopped it up. Once they pull away from the new high or low. Often they skip the stop run back in that direction. They have so much money trapped at the new high or low, that it is in their best interest to just turn up the heat, not send it closer and risk losing some fresh meat. They turn the heat up slowly on their boiling frog so he doesn't jump out of the pot.

Watch the second leg, and backtest. Many many times there is continuation there. So... they throw what looks to be a FAKE.. all the Frankie/London open "clever" traders fade it like they have successfully the last 3 days, they get stuck holding the bag, and the market runs through them.

This is the leg that pays breakout traders. It is the straightaway. It screwed me over 100 times manually backtesting, but it isn't that hard to spot.

Mike

More detail on how you spot that rare straightaway, would, for us slow learners, be *most* illuminating

Price spikes down once to the low, but fails to form the "W"...price spikes once high but fails to form the "M"....this is after the Asian session when the range has been set.....NO STOP HUNT

Failed "W" - straight away up.....failed "M" - straight away down.....

Sometimes they will blow the range box out to cover this....and what looks like a stop hunt but it's not.....

The fox is sly and deception is his nature...

CJ

[Captain Jack]

Hi CJ, thanks for starting this wonder thread and sharing your trading style.

I am still a struggling trader, and i have come to see that besides having a good point of entry and exit(as your showing us), the one thing the majority of loosing traders do not understand is the money management aspect of trading. In light of this, can u show us a bit of your money management technique, as i think this part of trading determines 70% of any traders success rate. I think it would be the iceing on the cake for us newbies, it will be a great benefit if we can learn from how you manage your trades as well. Many thanks.

hodgires

To put it bluntly....NO! Sorry...

I've already said don't even think about trading as I do. You can't do it. I don't trade like the majority or traders so I don't use the procedures they use. I'm not teaching anybody to trade as I do. You need to learn basic money management, lot sizing and risk. I don't teach or pretend to teach that.

I am a super aggressive trader who will not hesitate to max out my margin. I am as unorthodox in my money management as I am in my trading beliefs and I will let my broker close trades for me.

It will not work for anybody but me.

CJ

Does risk management determine 70% of your own trading success CJ?

Having a good idea of where price is going and in what time frame determines success. Risk is either reduced or increased based on this fact. My risk is minimal and I trade without stops so how would you determine my risk?

According to this, I would have to lose 171 consecutive trades to lose 40% of my account....my risk is minimal.

3-13-2013 7-35-36 PM.jpg

CJ

[f451]

A perfect setup: accumulation, basic manipulation and profit release..

This is example of a straight away move...they spiked price low...1st leg of the "W" but didn't spike a 2nd leg....no 2nd leg means straight away move...away from trapped volume....

CJ

Ha - but I bet on a lower timeframe we can still see the W hidden in that spike before the up move

[mjws00]

I will let my broker close trades for me.
CJ

I aspire to this.
It is a blast to watch you push your edge. Definitely not for the masses. But awesome to see.

You are crankin through this thread. Nice.

[Captain Jack]

I should be doing my homework instead of getting caught up on posting....late on this a bit but still made $$$....

What am I looking for on the BUYS?

A quick pull back into the Asian range and out... nothing more.....at least that's what I hope for. Where's my risk...just below the lowest pin...

CJ

[Jason]

You went long before the second leg of the W was formed?

You were looking for shorts to get trapped and the fox to take them out on the way up? But you got in before then just in case it went straight up without forming a W?

[Captain Jack]

Oh...forgot another NZD "news" trade.....

Here's the closed trade as well as the new SHORT.....Broker took my STOP out here....SL actual high was 17 pips below my SL....they blew the spread out, and took my stop.....

CJ

[Captain Jack]

You went long before the second leg of the W was formed?

You were looking for shorts to get trapped and the fox to take them out on the way up? But you got in before then just in case it went straight up without forming a W?

Had I been watching, I would have been in near the bottom pins of the drop..... I like to go early.... nothing wrong with waiting....that's what you need to do to be sure .....

It's "news" to cover a move during Asian...nothing has changed.....except what they did to price....

CJ