Ray Barros Trading Tips #1

[lightfoot500]

great info, but hard to hear thru the background.

[djenyns]

Sometimes you have to just grab an interview when you can... sadly the conditions aren't always ideal :(

[lightfoot500]

for sure, i saw Ray Barros on CNBC-asia and they said he would be doing more interviews there in the near future.

[patriotsundergod]

(notes on this video)

Following trading system rules was never a problem for Ray, but managing risk (position sizing and losses) is what caused him to lose huge amounts of money in the beginning

Identifying weather the trend is going to continue or change, where you are going to take a trade, and weather that trade is setting up is much more important than focusing on the entry. Determining the entry should really follow those things.

[patriotsundergod]

I've been sitting in the market for over 30 years and have only sold the exact high once, and I don't think I've bought the low.

At some point after entering the market you are going to take some heat (drawdown), so you need to know how much heat is normal with your system. This takes the pressure away.

[patriotsundergod]

recommended reading:

Maximum Adverse Excursion: Analyzing Price Fluctuations for Trading Management, by John Sweeney

this book helps identify how much heat your system ought to be able to take and still turn a profit

"consistent execution of your risk management is where the profits are"

-Ray Barros

[FXEliteTrader]

Great video!