Hi Traders,
There will be more charts on this thread than words, am not very good with words, a picture speaks a thousand words.
As a price action trader, I don’t have a system, but I have a method to trade the markets, I trade breakouts (BO), false breakouts (FBO, are my favourites), patterns, failed patterns (my other fav) and failed failed patterns. The reason I like FBO and Failed patterns is because they are a lot of trapped traders when patterns fails...and trapped traders panic, thus closing their position quick/SL hit, thus fuelling price to go in the opposite direction to the BO. I believe this method of trading can be applied to any markets that has price and are traded by human beings. I believe that price movement patterns are being repeated. They are recurring patterns that appear over and over, with slight variations. This is because markets are driven by humans -- and human nature never changes.
“ Stocks are driven by human beings and human beings never change. Wall Street is always the same.” – Jesse Livermore, Legendary Trader
I am not here to argue with people...saying indicators doesnt work bla blah...what I know is that there is no right or wrong way to trade the market...as long as you are profitable, producing consistent results with what ever system, strategy or method you use, stick to it...there are a million ways to skin a cat...and they are a million ways to trade the market, millions of traders, but we all have one goal...to make mny.
Trading is a business, so it should be treated as one...like any other business, the first thing you need to do before yu place a single trade is to have a business plan. A Trading/BP is a complete set of rules that covers every aspect of your trading life. For those without a business plan, there is a template of a BP.
INTRODUCTION
Why do yu want to be a trader? etc
MISSION STATEMENT
PERSONAL GROWTH GOAL
Explains how yu will proceed to the next level as a trader, either by reading books, seminars etc
FINANCIAL COMMITMENT
How much is your starting capital....Pc costs, broadband, screens etc
TIME COMMITMENT
How many hours yu be willing to sacrifice to your trading career?
RECORD KEEPING
How will yu record all your trades and mistakes
MARKETS, INTRUMENTS TO BE TRADED
What markets suits your investment agenda?...
TRADING PLAN METHODOLOGIES
How are you going to trade...either technical...fundamental..price action...reading the tape etc. Your trading method should be very precise....I buy/sell when XYZ happens, my SL is at Z, my targets are at Y...what timeframes are yu going to use etc
RISK & MONEY MANAGEMENT
How much you will risk per trade/per day/ etc...how you will take profits
COMPENSATION
How much yu will pay yourself per month/per quarter/per yr
TESTING & DEVELOPMENT OF STRATEGY & MM TACTICSResearch and Developement
A lot said...lets the charts talk.
twitter: https://twitter.com/#!/Tradingplace
Blog :http://joetradingplace.wordpress.com/
Skype: joe.tradingplace
There will be more charts on this thread than words, am not very good with words, a picture speaks a thousand words.
As a price action trader, I don’t have a system, but I have a method to trade the markets, I trade breakouts (BO), false breakouts (FBO, are my favourites), patterns, failed patterns (my other fav) and failed failed patterns. The reason I like FBO and Failed patterns is because they are a lot of trapped traders when patterns fails...and trapped traders panic, thus closing their position quick/SL hit, thus fuelling price to go in the opposite direction to the BO. I believe this method of trading can be applied to any markets that has price and are traded by human beings. I believe that price movement patterns are being repeated. They are recurring patterns that appear over and over, with slight variations. This is because markets are driven by humans -- and human nature never changes.
“ Stocks are driven by human beings and human beings never change. Wall Street is always the same.” – Jesse Livermore, Legendary Trader
I am not here to argue with people...saying indicators doesnt work bla blah...what I know is that there is no right or wrong way to trade the market...as long as you are profitable, producing consistent results with what ever system, strategy or method you use, stick to it...there are a million ways to skin a cat...and they are a million ways to trade the market, millions of traders, but we all have one goal...to make mny.
Trading is a business, so it should be treated as one...like any other business, the first thing you need to do before yu place a single trade is to have a business plan. A Trading/BP is a complete set of rules that covers every aspect of your trading life. For those without a business plan, there is a template of a BP.
INTRODUCTION
Why do yu want to be a trader? etc
MISSION STATEMENT
PERSONAL GROWTH GOAL
Explains how yu will proceed to the next level as a trader, either by reading books, seminars etc
FINANCIAL COMMITMENT
How much is your starting capital....Pc costs, broadband, screens etc
TIME COMMITMENT
How many hours yu be willing to sacrifice to your trading career?
RECORD KEEPING
How will yu record all your trades and mistakes
MARKETS, INTRUMENTS TO BE TRADED
What markets suits your investment agenda?...
TRADING PLAN METHODOLOGIES
How are you going to trade...either technical...fundamental..price action...reading the tape etc. Your trading method should be very precise....I buy/sell when XYZ happens, my SL is at Z, my targets are at Y...what timeframes are yu going to use etc
RISK & MONEY MANAGEMENT
How much you will risk per trade/per day/ etc...how you will take profits
COMPENSATION
How much yu will pay yourself per month/per quarter/per yr
TESTING & DEVELOPMENT OF STRATEGY & MM TACTICSResearch and Developement
A lot said...lets the charts talk.
twitter: https://twitter.com/#!/Tradingplace
Blog :http://joetradingplace.wordpress.com/
Skype: joe.tradingplace