The London Open - page 76
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Very good, still laughing!!
Pardy
The Authorities in Spain have been inundated with sitings of a purple phenomena. People are reporting an extrordinary colourful man in garish costume; these sitings were originally reported in the South of the country but there has been a surge in calls from all along the Costa and as far South as Gibraltar. So far The Purple One, as police have named him, has caused no damage, but there was concern over the potential threat to bar takings, as people keen to see this phenomena take to the streets seekings him out. One eye witness said "it was amazing, like a rainbow, and suddenly it was raining pips, and then he was gone, leaving an empty bottle of San Miguel". The police are still trying to determine the importance of the 'pips' to their inquiry, but can confirm significant quantities of local beer seem to go missing in areas where The Purple One has been sited. Following the 'rain of pips' locals are calling for protection and some are now carrying special pip collectors to harvest them. With the pip feast, there have been other sitings of a large Gorilla, and a smaller Monkey who seem to accompany the Purple One, an entourage of otherworldly preportions. One thing is for sure, they have great legal representation and have managed to keep their movements hidden from view; where they will appear next is a mystery only Scooby Doo could solve. The local mayor has asked for special powers; the purple one is our saviour and he is keen for the pip feast to become a regular festival; attracting so called 'pipster's' from around the world. One thing is for sure, beer and burger sales are up. For the Purple One is now in his speedos sunbathing.........so are thongs!
He is a dangerous man!!! Rockdrive, please rescue me!!
D
Morning
Got asked about my method, stop losses etc and why i use a simple chart system, so thought i would post it here as well...
........................................................................................................................
Morning
Like any strategy, it is never perfect and yes it can take you into trades when you shouldn't get in and likewise can keep u out when you could have made a few pips. Thats trading as we know it unfortunately. Everyday is different and with experience you get a feel for a market and are more aware of momentum and volatility in the market place at a particular time.
The longer term CCI will give me a great insight into where the trend is heading and generally i will try and trade with that. However there are exceptions to every rule in trading, depending on S&R levels, momentum, correlation, trajectory of ma's, figure's, time of day etc etc and that can only come with experience.
Yes price action is very important in trading. For example novice's will trade a 123 setup, with no momentum and cant understand why it hasn't bounced. Thats why it is important to get a feel for what the other markets are doing eg CRUDE and GOLD.
I rarely have a 40-60 pips stop loss on my shorter term book but again this depends on how much i like a particular trade and where the S&R levels are. I don't believe in having a standard 20pt or 30 pt stop on all trades, as every trade is different and i make a judgement call there and then. What do i expect from the trade? Is it with the 4HR trend? What is the rest of the market doing? How is volatility for that day? Am i going to hedge myself in? I am sorry for not being black and white but thats how i see it and have done for years. Successful trading comes with experience and the more you learn and put into practice the better you become.
Gold and Crude are different beasts and i love the Crude movement in the london open. Less volatile but when its found direction you can def pick up a few pips...Again stop losses vary here depending on the ma's and where i get in and what expectation i had for that particular move. Crude is his own man at the moment and is running the show so you do need to be very vigilant with stops. For the longer term charts, the higher the stop losses, so if i worked purely off my 60min and 4Hrly chart, i might decide to have a 100 pt stop for example. If i was working off my 5min, with a tight bounce off my 20ma, i might only need a 25 pt stop.
Lastly you asked why i use a very simple indicator based method. Quite simply for me it works and i make a good amount of pips from it. Its simple, easy to understand and makes me money.
Ok well hope that explains a little...We r all different and as long as we all make pips nothing else matters.
Keep it simple
D
Hi all
I am knackered today...Couldn't sleep last night so got up and studied longer term charts.
Won't be in on monday as i have a meeting for most of the day.
Will hopefully get online at some stage.
Please keep blogging and keeping this thread going.
Have fun.
D
Hi All
to the rest of us somewhere in between - keep going, we'll all get there with Dan and Pimp's help and plenty of determination.
I read this over the weekend and thought it might be of interest to some of you. It's about the cycle of success and failure which is relevant to the process of learning to trade.
Death Valley and the Serpent's Tooth
As a youngster do you remember learning a particular skill or ability - one such as learning to swim or ride a bike? Do you remember the pain and frustration that you went through as you struggled to master the basics and then the seemingly endless effort that you had to make to perfect your art? Tough wasn't it? Do you also remember the times when you wanted to give up? The times when the effort seemed pointless and everything that you did went wrong?
However finally, after a lot of perseverance and self-discipline quite suddenly everything that you learnt fell into place. You reached a point when you no longer constantly fell off your bike or when you finally managed to complete a whole length of the swimming pool. That single glorious day was when all of the hard work and effort suddenly seemed to be worthwhile, when the struggle of the early stages were forgotten and you sailed into a blissful land in which all of your actions were effortless and successful.
The Serpent's Tooth Cycle
If you examine each of the various skills that you have learnt throughout life you will discover that the same basic pattern of growth/decay/growth is woven into the development of each one. This cycle is a well accepted theory and can been seen in the growth patterns of many businesses, during the development of any skill, through the life cycle of plants and is observable in every key element to human experience.
Stage 1 - The Rise
At first you start off your chosen task with great enthusiasm. This energy quickly propels you into making rapid progress. Sometimes referred to as beginners luck, in this part of the cycle everything that you do is a success and you learn at a faster pace than at any other time.
Stage 2 - The Peak
However this rapid rise in growth does not continue onwards forever and you reach a zenith in performance. Most of us are only aware of their highest state of achievement after it has been reached.
Stage 3 - The Turn
Then suddenly just as you think you know it all along comes a disaster. You fall from your bike, you fail your exam, you have a run of losing trades etc. Something happens to suddenly bring to your attention the fact that you do not know it all. No matter what you try to do all you experience is continued frustration, failure and defeat.
Stage 4 - The Fall
The rate of decline then appears to accelerate and your enthusiasm for the chosen task falls to its lowest point. It is at this stage that 99% of people give up. However this decline in fortune does have its limit. Suddenly things change and you start to feel a little more positive about things.
Stage 5 - The Growth Gradient
From the turn you slowly begin to piece things back together again. Bit by bit you develop a new aptitude for your chosen task. This then continues unabated until you finally begin to realise that you are starting to surpass your earlier achievement level.
To the Rockdrives of our community who are at Stage 5, congratulations dudes,
Morning
Have a good day all...
See you this afternoon.
Let me know how u all get on.
D
Morning Have a good day all... See you this afternoon. Let me know how u all get on. D
Morning Mr Dan,
The only way to reign in The Purple One is to become him. I think you need a change of style and to pimp yourself. Enjoy your meetings; regular neurofen and water will help!
Have a great day.
Pimping Rockie
Mr Dan and Le Pimp,
A nice couple to start off the week. Grabbed cable on the break at 1.8352 (s/l 1.8336) to 1.8450 (+96). Took a cheeky trade on usd/chf 1.0960 (s/l 1.0983) short to 1.0933 for 27 pips and closed the morning with an elevenses gold bar breaking 876 to 880 (s/l 872) for 38 pips.
Some of the guys also traded e/u on the break and took some lovely pips. So a nice and comfortable start to the week. Should be more to come.
Took a look at indicies but not too comfortable with where the Dow was going so decided to leave alone today.
The weather is fantastic in the UK - the only downside is that my mud pool has dried up and I can't take an afternoon swim!
Mudcaked Rockie
Well done Rocky... Mud bathing sounds fun but would prefer it with Rollingstone than u!!!
Been a good day but missed my trading, as was out all day. Will be back in the hot seat tom, so looking forward to seeing u all then.
D
After last weeks madness today was almost enjoyably peaceful. Spreads were quite frankly all over the place as was flow although unlike Friday, flow was more balanced today with retail accounts definitely gaining confidence from Friday's rally and continue to be a better buyer of decent named corporates. At least there was a little more clarityon Hank's 1 trillion dollar bail out plan and with that are lots ofquestions? We hear that these illiquid assets as the Fed calls it or whale shite as I call it, will be transferred at a price derived as aresult of a reverse auction. So what happens if that price issignificantly lower than most peoples marks and therefore causing a hugep&l hit that will mean another capital injection is required? If thebid is too low will the banks tell the Fed to kindly go forth androtate? Ignoring all that, lets assume they all sell their toxic waste at marks and it still doesn't fix the mess, how many more trillion do you want to throw at it, and at what cost to the tax payer and thedollar? I still don't see how this "bad bank" is going to help the manin the street and I still fear the impact on the real economy although Ido understand that bank lending remains the key to our recovery. Thefact is Hank's grand plan is by no means a no brainer and 700 billiond ollars is quite a lot of cash to gamble with especially when you don't have the cash to hand. If it gets chucked out by congress (I know unlikely) who knows what's going to happen next! As for EM there are clearly some bargains to be had if you have faith in Hank and friends. Take your pick whether it be MTS, Vip at +750r,VTB at+700, or Halyk at +900. These names have been everyone's darling these past few years and I see little default risk in any of them and yet I don't see a huge queue of buyers lining up to load up at these generous looking spread levels. What I am trying to say for the bulls out thereis that there are some opportunities to be had, timing is everything and I would be surprised if we have seen the wide prints. Expect activityand volatility to pick up through the week and congratulations to the US on a well deserved victory in the Ryder cup!
(A day in the life of a city trader)