The Trading Zone

Hello, has anyone tried or had any experience with TheTradingZone? If so, what are your thoughts about them, pro and con?
Thank you,
ican

Greg ?

Why don't you join us in the chat room on Paltalk, where I explain every day how we treat trade and money management.
And see how it works live in the market as it's happening, not in theory

The room is free, there is no obligation
Hope to see you there

The reasons for taking fast partial profits are twofold, and they work for me.
Every trader is different and must find what works for them, I can only share my experience and has worked consistently for me over the years.

1. I take 50% (or more ) of the trade off at +.50 T1
when T1 is reached I move stops up by .50
(at this point I cannot lose money on the trade)

2. At T2 1 point I take another 25% of contracts off
Move the Stops to my entry price. i.e Break Even

3. the last 3rd of the rade is a managed exit, I hold on to this as long as I can, and let the winners run.
generally speaking the stop is trailed by about 5 ticks

Most days in the market as we all know are Range Bound and NOT trending.
I have seen (and still see) many traders take a trade in a range bound day, it goes +1 or +1.5 and then fails and stops them out.
In a range bound day it can happen over and over again

So after lets say 3 attempts to get a good trade going, that trader has taken 3 stops, while I have had 3 partial profits

When the BIG move finaly arrives, Who do you think is in a better state Financially and Emotionally to take that 4 th trade?

The trader who is sitting on a loss of 3 stops, or me who has taken 3 partial profits?

Psychology is such that if that trader were to have the courage to jump in the 4th time, 99% of them would bail out after going back to break even on the day. They would be happy with just getting their money back.
That is NOT trading, That is feeding your brokers family

When that 4th trade arrves, and I am already profitable on the day, I will let the last 3rd trail the move as I awlays do, and get the most out of it as I can, without fear of loss, becuase my profits are already locked in.

If that 4th trade never arrives, the I finish the day with 3 partial winners and a profit.

In terms of recovering from Full stops, that has more to do with the expectancy and win loss ratio of your method or system.
Generally speaking I take on average 1 full stop per session, (although at times more, and sometimes I can go 3-4 sessiosn without a stop)
My stops are tight only 1 point, so they are easier to recover from

If you are using wider stops, then obviously you would need more winners % widr in order to recover.

MOST IMPORTANTLY:
I have learned a long time ago that anythig that can reduce the fear of loss, and out in a positive mind frame, will help your trading.

For ME, I have found that the feeling of reaching my CANNOT LOSE target on the tade, is a very empowering thing.
I either make money, or More Money.

A Trade Management strategy is part of an overall trading method,
To look at it on it's own without understanding the complete method gives you only a small view of what I do


Like I said it works for me, will it work for you? Only you can answer that

Greg

Great post Greg! Very informative and interesting. That psychology aspect is probably one of the most important parts of "enabling" a trader to follow a system.

Looks the risk:reward here is 2:1 based on T1. Not very good. In addition, the scaling out approach is inferior to all in, all out. (this subject is discussed by day trading and pt emini and I concur with their findings)

In my opinion, scaling out in the manner stated is a psychological crutch for the fearful trader who has no confidence in letting the market take care of the trade--just the opposite of what the author states. Of course, if your setups are low probability for moves beyond a point or so than you're left no choice but to employ a scalping method, which is what I consider this to be.

Well, I define any trading method that takes more than 1 trade in a day, and exits all positions before the close to be a scalping method.

So by my definition, than yes, this is a scalping method.

As for it being a psychological crutch, I repeat what I said above, it is a tool to help me control the emotions of fear of loss, so I would define it as a psychological tool.

As far as letting the market take care of the trade, I do just that, all of my positions have runners, or trailers that allow me to maximize profits. As many who have seen me trade will attest to, we have many trades where the final 3rd reaches 5 points, 7 points or more.

of course you are evaluating 1 part of a total methodoloy, the exits. While they are extremely important, they do not make up the entirety of our methods, but only a part of it.

There are thousands of trading methods around, each trader needs to find the one that best suits their own personality and risk tolerance.

Some of the best trading systems ever developed have a 45% win loss ratio, but make money. I for one could never trade a system like that, my own psychology and risk tolerance demads that I take more winers.

So as I mentioned it works for me, and has been working for me for many years now. I will continue to do what works for me and makes me money.

As for traders who are searching for a way to trade, we offer just 1 of thousands available.

Greg

quote:

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Originally posted by GregW

...There are thousands of trading methods around, each trader needs to find the one that best suits their own personality and risk tolerance...

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I think that this is one of the more important aspects that traders should consider about a trading system when they're evaluating one to use/buy/subscribe to.

I recall having an email exchange with a new trader over about a 2 month period. At the end of the 2 months he decided that day trading wasn't for him. I don't recall if he made a loss or profit during that period but the reason he gave for not wanting to pursue it was the stress he went through waiting for each trade to close out, not knowing if it was going to be a winner or not. I believe that he didn't even enjoy the closing out of profitable trades because of the associated stress. I don't believe that any system would have suited him. He was amazingly realistic about it and knew very quickly that trading was never going to be for him.

But I digress, this is about The Trading Zone, I was just elaborating on one of the points that Greg brought up.

Red Eagle Claw
I haven't quite decided if you are a member of the Zoo, just an unhappy person or have multi personalities? I read thru the many posts on the Trading Zoo and your comments are all over the wall. One you are anti zoo, next pro zoo and then attacking other posts which you have had nothing to do with. I then flip over to the trading Zone and see that a forum member has requested the owner of the Zone to please explain their Money Management. Greg from The Trading Zone responded in what I would call a very thorough and complete answer. Obviously, in a Forum such as this, everyone has the right to agree or disagree but once again your answers or responses seem to carry an extremely negitive connotation to them. To be honest, I was amazed he even responded to you. If you would, please read Gregs initial response, your reply and gregs reply to you. If you look at the type of words used, how they are directed and who they are directed to, you may very well learn something. Good luck to you.

I get about 3 email solicitations from Greg each week. Here's the latest:

" What have you done?
What have you done this week to improve your trading?

Have you:
. Reviewed your trades for the last week

Have you:
. Surrounded yourself with successful traders

Have you:
. Attended a Training Session to update your skills

Have you:
. Made a concerted effort to correct 1 bad habit

Have you:
. Made it a point to learn 1 new thing that will improve your trading

The path to consistent profits as a trader is Evolution, not Revolution

Visit the web site to see how our products and services can help.
http://www.thetradingzone.com"

Hi Jon

Yes that was a an email we sent out yesterday.

We do from time to time send our registered members emails, as reminders, or information on new services etc...

Prior to that email, the one before it was on 06/11/2007.... so you are partially correct, but to be more accurate we send out about 2 emails per month

This last emails reminds traders, to do those things that are likely to improve your trading but that many forget to do.

Such as.. review your last weeks trades... IMO more can be learned from or mistakes, than our successes.... all of our traders are encouraged to keep a trading journal

One Thing you left out in your post that appears in all of our emails:
----------------------
To unsubscribe from our periodic e-mail messages, please click the following link:
http://thetradingzone.com/amember/unsubscribe.php?e=

Of course every member has the right to remove themself from our email list... but then they risk missing the occasional pearl of wisdom

Good Trading !

Thanks for your response. Did you ever find anyone or anything to help you be a better trader? They are asking $3000 now. Thanks again.