How To Simple with Metatrader 4

Why Traders Hold On to Losing Positions

Humans in general grow up being taught by their environment of the importance of always being right. Those who are right are envied as the winners in society and those who are wrong are cast aside as losers. A fear of being wrong and the need to always be right will hold you back in general, but will be deadly in your trading.

How Most People Associate Profitable Trades:

How Most People Associate Unprofitable Trades:

So now ask yourself this question. If you were really the trader in this example which system would you rather have?

Most of the successful systems that I have seen fall into the category of the first one we looked at in that they take a lot of small losses and make their gains for the year on a few big winners. As in this example however most traders do not have the mental toughness to stay with these types of systems during the long loosing streaks and give up on them prematurely, and throwing a profitable methodology in the trash without giving it a chance.

Since candlestick and bar charts are the fundamental interface of the price action trader, the most basic unit is the candle or bar itself. Candles sum up the price action over a set period of time: on a 5 minute chart, each candle represents 5 minutes of price behavior, whereas on a daily chart, only one candle is produced per day. The body of the candle constitutes the range between the open price and close price, whereas the wicks or shadows of the candle indicate the high and low over that period of trading. Various color schemes are used to determine whether the price movement represented by the candle is bullish (increasing in price) or bearish (decreasing in price); bullish candles are usually white, blue, or green, whereas bearish candles are usually black or red.

Longer candle bodies demonstrate strong momentum and decisive market behavior in the movement from open to close; longer shadows, however, demonstrate increased volatility, since some prices were reached during the time period but ultimately excluded from the range between open and close.

Smaller candles can indicate the market's indecision, disinterest, or a balance between bullish and bearish forces.

Similarly, a candle that is almost all wick implies that, regardless of the range of prices occurring in the time period, the open and close were extremely close; these candles are referred to by the Japanese term, doji.

A doji or small candle with a very long wick in one direction is referred to as a pin bar, which is often interpreted as a sign of potential trend reversal.

By contrast, a marabuzo candle has a large body, and almost no wick, implying that price action has been more definitive.

There are two important, rudimentary patterns that play out over at least 2 candlesticks:

An outside bar is a bar with a higher high and a lower low than the previous candlestick, often with a body that also encompasses the price range of the previous bar's body; an alternative variation is the engulfing bar, which simply has a higher open and a higher close, regardless of the candle's shadows or wicks.

By contrast, an inside bar is a bar, or series of bars, with a high and low encompassed by the preceding candle; in this case, the variation is the harami, a bar or series of bars with an open and close within the range of the bar preceding it.

Linda Bradford Raschke talks in-depth about trading habits and why they are so crucial to success
Habits are semi-automatic behaviors that require little willpower to maintain once they've been established. Build sustainable productive habits to replace the habits that adversely impact a trader's bottom line by developing Everyday systems.
- Simple but precise Everyday systems compliment Simple but precise Systematic trading strategies.
- Developing your habits into Everyday systems.
- Three top Everyday systems for replacing undesirable habits.
- Gartleyisms pertinent today

About Linda Bradford Raschke

• Full time professional trader since 1981, CTA since 1991.
• President at LBR Asset Management, more than 21+ years
• 17th out of 4500 hedge funds for top 5 year performance as rated by BarclayHedge.
• Partner at FuturePath Trading, LLC, a Futures Brokerage/Technology firm specializing in technology for the high volume professional trader as well as black box hosting.
• Commodity Pool Operator
• Member at Pacific Coast Stock Exchange, Philidelphia Stock Exchange

Linda Bradford Raschke has been a full-time, professional trader since 1981. She began as a floor trader and later started LBR Group, a professional money management fi rm. In addition to running successful programs as a CTA, she has been principal trader for several hedge funds and has run commercial hedging programs. Raschke was recognized in Jack Schwager’s book, The New Market Wizards, and is well known for her book, Street Smarts. She has also served on the Board of Directors for the Market Technicians Association.

Bonds. These are generally regarded as among the safest income investments, as they are essentially a loan made with the promise of more being repaid than what is loaned.

Dividend Stocks. These are stocks that pay out a portion of their earnings or cash flow to their investors on a recurring basis.

Covered Calls. Individuals who own a stock can sell a call option -- the right, but not the obligation, to buy the stock they own -- as a way of generating income. If call option is not exercised -- meaning the buyer of the call option does not take the seller of the covered call up on the option of buying the stock -- then the seller of the covered call simply earns the income and does not part with the stock. Covered calls are a way to earn income from stock investments that are meant to be held for a long-time, or as a way to reduce downside risk in stocks. They are a bit more of an advanced strategy; see our section on Covered Calls for a complete introduction.

Alternatives. These are investments that are not quite yet common in today's structured and highly regulated world, but offer opportunities nonetheless. Examples include renting property you own (perhaps via sites like AirBNB or GetAround) as well as making loans to individuals directly (via services like Prosper or LendingClub). It can also include unique investments, typically only available in small businesses or as private deals off exchanges, in which investors are paid on a per sale basis -- an arrangement known as a royalty agreement.

National or supranational government bonds are the baseline for income investing. They are regarded as risk-free, under the belief (rightly or wrongly) that national or supranational governments can always pay back bonds, as in the worst case scenario they can simply print money to pay back their debt. When evaluating income investments, comparisons to the rate of return on government bonds is thus common and useful to many.

Compounding is the key. Income investment takes time to really pay off, and thus patience is essential. Investors who focus on diligently investing in income-yielding assets, and then re-investing that income into more income-yielding assets, will experience a compounding effect that, in time, leads to great wealth. Thus, income strategies are also often associated with long-term wealth plans.

My way of trading simple for beginners Ideal for professionals
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Hi guys , can anyone tell me how to run an EA on demo account ? I plan to test it on demo for 1 month first before running it live.

Originally Posted by Nuri Fabianski

Hi guys , can anyone tell me how to run an EA on demo account ? I plan to test it on demo for 1 month first before running it live.

Create demo account using MT4, and run EA on the same way as running live (place EA to indicators folder, compile, attach to the chart, allow autotrading in settings of MT4 plarform)

Just watch the following video/article:

1. The Video - Autotrading
2. Advanced Guide To MetaTrader 4 - Automated Trading

Some additional videos which may help:

• Upgrade to MetaTrader 4 Build 600 and Higher
• What is data folder
• Find a Server by the Broker's Name
• Set Up Demo MT4 Account
• What is margin?
• How to Backtest EAs
• How to backtest EAs in case the EAs and indicators are already installed in MetaTrader
• How To Backtest EA with MT4

Consumer Price Index (CPI) measures the price that consumers pay for those goods. Released at 8:30 am eastern standard on approximately the 15th of each month, the Consumer Price Index (CPI) is a measure of the changes in prices paid by urban consumers for a fixed basket of goods and services.

The question that naturally arises when hearing this is wouldn’t those two numbers be the same or at least move in tandem with one another? The answer to that question is not necessarily, for the following reasons:

• The PPI is designed to measure the entire marketed output of US producers which includes goods and services purchased by other producers. (The CPI includes only goods purchased by consumers)
• Imports are excluded from PPI but included in CPI
• Taxes paid as part of the purchasing price by the consumer are not included in PPI but are included in CPI.

The important thing to understand here is that while changes in PPI are normally looked at as having predictive power as to changes in the CPI, a rise or fall in the PPI does not necessarily mean the same rise or fall in the CPI. As this is the case, and as the CPI is the end price paid by the consumer, this number best represents the level of inflation in the US economy.

In addition to showing fluctuations in price for different areas of the country, the CPI also shows the fluctuation in price for different groups of products such as housing, transportation, medical care etc. This allows traders to see not only the price fluctuations of the overall economy but also for different areas of the economy.

There are two main CPI numbers reported which are the CPI for Urban Wage Earners and Clerical Workers (CPI-W) and the CPI for all Urban Consumers (CPI-U) which basically give two separate numbers for the price increases experienced by working people and the price increases experienced by all consumers.

As with the PPI the Consumer Price Index is also presented without volatile food and energy included. This “Core CPI” number or CPI-U minus food and energy is the most widely followed number.

The goal of the webinar is to demystify neural networks, explain neural networks in plain English, and share easy to understand code examples how NN can be used.

• Artificial Intelligence: History and Background
• Neural Networks: The Basics
• Case Example
• Problems with Neural Networks
• Solutions to common problems with Neural Networks

Bullet points for this webinar include:

- Trader Tax Status overview
- Factual requirements for being classified as a Professional Trader
- Tax deductions available to Professional Traders