Was told by another Senior TRader today this
@Ashton Robbins. I am absolutely in agreement with your post… especially your saying “I recommend not trading with stop losses…” so true for me, too. I have watched/read people rightfully saying something like “stop losses are for those who don’t know why they have entered the trade”. If you have a good reason to buy/sell, you should not put a stop loss, you stay in front of your monitor and just watch the action… Anyway, your post prompted me to sit down and outline my learnings in trading…
My 3
biggest disappointments in trading:
1. Elliot Waves (EW)
EW is by far the biggest disappointment of all… You simply have to count 1 to 5 and then 1 to 3 (or A to C, or whatever), and you become rich… So easy… You find EWs everywhere and nowhere… Everybody can count whatever they want… If you want to learn how to count, please listen to this: https://www.youtube.com/watch?v=5CxEdg9FN8A … it’s hilarious and maybe more useful than reading anything about EW. For me personally, EW is out of my life forever…
2. The concept of Overbought/Oversold indicator levels (OBOS)
You use RSI, Stochastic, or whatever indicator you want, doesn’t matter… the indicator goes above or below a certain level, then crosses this level again… you enter your trade and you make big money… There is even an MT4 indicator (maybe not just one actually) which is called OBOS (or maybe OSOB, don’t remember)… I’ve learned the hard way that “There is no such a thing as overbought/oversold levels…” (I have seen some wise guys say this in forums… it is not my invention…). II have seen many times unbelievable price moves up and down through any imaginable overbought/oversold levels and then it just keeps staying up or staying down. Of course, ONE day price starts going down, however, by then I would be without money if I tried to sell the OBOS levels… And then, there is always one of the most-often asked questions in trading “What parameters do you use for your indicator?” You can get any indicator values you want by giving your indicator any parameters you want… And why is the “standard” setting of many indicators 14? We are not trading calendar days, we are trading working days… A month has generally 21-22 daily candles, a week has 5 daily candles. 14 equals to what; almost 3 weeks? Why do I need 3 weeks as a parameter? People/traders are cyclical animals but our cycles are rather daily, weekly, monthly, quarterly, yearly… in addition, there are other parameters… For stochastic you need to choose 3 numbers, right?
For me personally, OBOS is still hard to take out of my mind and out of my trading… I still have CCI and Stochastic on my charts and maybe I should just get rid of them… but I don’t… They do work beautifully sometimes and I still feel I would be missing good trades if I don’t have them… Working on resolving this…
3. Candlestick patterns
While reading Steve Nison’s books many years ago, I thought… oh wow… I am a visual guy, I can remember these patters, I can become very rich… easy-peasy… I must be stupid not to recognise a “hanging man”, a “shooting star”, a “hammer”, a “doji”, etc. Well, as everything else, sometimes they may work but many times they don’t… And the worst part is when the thick books come up with invented numbers, something like “this pattern may fail in 20% of the time…”, and then you find yourself always caught up in these 20% of cases... Well, no, thank you!
For me personally, and similarly to EW, candlestick patterns are out of my life forever… I do use candlestick charts but not to identify candlestick patterns… I use them because I can easily identify open/close levels, direction of the market, extreme period levels… For me, they are definitely better than bar or line charts.
The 3
things I came to realise I can use and trust:
1. Channels and trendlines (Ch/TLs)
TLs were the first indicator (if one may call trendlines an indicator…) that introduced me to technical analysis. Many years ago, I could not believe that price would just jump off a TL or would follow a channel… These opened up my mind to and ignited my passion for technical analysis. After having gone through all the theories of EW, candlestick patterns, Andrew’s pitchforks, Fibonacci retracements, harmonic trading, Gann wheels and angles, pivot levels, using volume, moving average crossovers, indicator-price divergences, etc., etc., I came all the way back to my very first love for technical analysis - the channels and trendlines. Well-constructed channels are so much better than any of the above techniques… because Ch/TLs just encompass everything the other techniques try to do. You don’t even need to recognise the “hanging man” which has just jumped off a channel line…
2. Murrey Math lines (MMLs)
Gann is too complicated for my simple brain. I consider him the Einstein of trading. My brain is at a too low level of development to understand fully what he did… he must have been a truly wise guy… My understanding is that MMLs are based on some of his teachings (at least partially) and are the simplest and most practical way of following/using some of his ideas (he is claimed to have also used astrology and the bible but my efforts there were completely useless). The MMLs are plotted on the MT4 charts automatically for me, just watch these levels and combine them with the Ch/TLs. Very visual and easy to see. My favourite is when price jumps off at a junction of a Ch/TL and a MML.
3. False breakouts of Ch/TL and MMLs
The most important thing here is to enter strictly AFTER the breakout has actually failed and has been confirmed as being false. These false breakouts are easier to spot on stock indexes but more difficult on Forex and oil. Indexes are much smoother (for obvious reasons) whereas FX and oil often go way beyond Ch/TLs and then come back within a channel. This is why it is important to wait for the actual close of the candle. And this brings me to the things I have to work on…
The 3
things I need to improve:
1. Become patient
2. Become very patient
3. Become really patient
And last but not least, I stopped listening to gurus, following analysts’ opinions, believing other traders’ “signals” and “tips”. Nothing more to say here, maybe just watch this video: https://www.youtube.com/watch?v=CXrD4rAHZyE. I believe the guy is acting but he did make me laugh because he is acting it very well. The video is self-explanatory. Trust yourself, you have your personailty, and a style that should fit your personality... Others don't know you, listen to yourself only...
And, as Ashton's saying, start small, 0.01 lots maybe, and do not expect to get rich overnight... just be patient... This is my goal...
Successful trading to all...
Love ya work mate!
rosspet6Cons, Cons , cons Everywhere, to work your through all the gumpf, to try to make a living.
You shoulsd start a forum thread or whatever it is called.....
And thank God the Cable and Euro stopped falling......
I do believe in Fibonacci well "everything" and volume numbers and Fundamental news.
Cons, Cons , cons Everywhere, to work your through all the gumpf, to try to make a living.
You should start a forum thread or whatever it is called.....
Can't start my own thread as I am a "junior" member of this forum :-).Ooops sorry... This is valid for FF forum...
I am also betting on the EUR rise this week... And, sorry, for jumping into your post like that... but felt you were so into my line of thinking...
A Senior Trader told me that when we trade , we trade really against the broker. Which makes sense really why one hardly ever hears about people making money on forex. I mean looking at even the best traders here, this could hardly be called a an easy living career with very few traders making more than a $100 a week. I mean its easy to show on a graph how one can make millions , I mean like for every one pip it moved he made $100, and that day he made 30 pips or $3000 that kind of stuff. Believe me it does not work like that.
Found a way to beat the house hopefully, the old adage remains the same buy low sell high, dont try to pick highs or lows and if you do, dont use the 5m chart (use the Daily or Weekly - start thinking longer term Not scalping). Although the 5m chart can confirm the reversal. Another thing I reccommend not trading with stop losses (know your fundamental news stream for that day, take those currencies into consideration) they get hunted by your broker, who, like say in binaries, that when the price gets close say 15 pips will bomb you out anyway. I mean the regulators (like ASIC) dont really understand whats going on in these markets. So start small like 0,01 , then set goals, my recommendation off extreme highs and lows , bank initially but then leave and add positions.
Other things include sayings like KISS keep it simple Stu....., dont put all your eggs in one basket, patience is a virtue, good things come to those that wait, Go big or go home (joking , just an old gym saying). THese sayings are a little silly but valid, like dont trade too much.
Thanks for sharing. Very useful advise. Stop loss takes all your money away.
I only use SL if i have a hedged trade (so i would have at least 1 trade in profit before the other gets stopped). Also, i prefer to hide my stops from brokers (just in case they try to manipulate market).
In all, just stay away from Dealerdesk brokers and you should be fine in terms of brokers taking positions against you.
I only use SL if i have a hedged trade (so i would have at least 1 trade in profit before the other gets stopped). Also, i prefer to hide my stops from brokers (just in case they try to manipulate market).
In all, just stay away from Dealerdesk brokers and you should be fine in terms of brokers taking positions against you.
The indicators I use, and this is not one upmanship and as rosspet 6 indicates trading is probably an individual feeling( life experience etc) my ideas may bear fruit now but fail later anyway here goes.
And hey 👋 Bob’s your uncle
LOL,
And the other lesson is that traders should focus on the best way to exit a bad trade, rather than setup and indicators. I think that why so many books talk about money management and when to Get Out (which is a good movie by the way). Trading is like a bad marriage..........easy to get into, but hell to get out.
LOL,
And the other lesson is that traders should focus on the best way to exit a bad trade, rather than setup and indicators. I think that why so many books talk about money management and when to Get Out (which is a good movie by the way). Trading is like a bad marriage..........easy to get into, but hell to get out.
Is this Gene Simmons (KISS) Oh No! Sorry Joel Simmons
I think that stoploss hunting is a myth, because the price chart is almost the same for all brokers, so if they hunt your stop, they need to move all the markets in this direction, billions of worth, that makes no sense, what makes more sense to me is that a person have a bad system and blame the broker for his own failure
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A Senior Trader told me that when we trade , we trade really against the broker. Which makes sense really why one hardly ever hears about people making money on forex. I mean looking at even the best traders here, this could hardly be called a an easy living career with very few traders making more than a $100 a week. I mean its easy to show on a graph how one can make millions , I mean like for every one pip it moved he made $100, and that day he made 30 pips or $3000 that kind of stuff. Believe me it does not work like that.
Found a way to beat the house hopefully, the old adage remains the same buy low sell high, dont try to pick highs or lows and if you do, dont use the 5m chart (use the Daily or Weekly - start thinking longer term Not scalping). Although the 5m chart can confirm the reversal. Another thing I reccommend not trading with stop losses (know your fundamental news stream for that day, take those currencies into consideration) they get hunted by your broker, who, like say in binaries, that when the price gets close say 15 pips will bomb you out anyway. I mean the regulators (like ASIC) dont really understand whats going on in these markets. So start small like 0,01 , then set goals, my recommendation off extreme highs and lows , bank initially but then leave and add positions.
Other things include sayings like KISS keep it simple Stu....., dont put all your eggs in one basket, patience is a virtue, good things come to those that wait, Go big or go home (joking , just an old gym saying). THese sayings are a little silly but valid, like dont trade too much.