The Bucking Bronco
Welcome to my universe 2.
(My first block of meditations on the reality of the Markets is here.)
Rule n°1 – This is my journal and I'll do and write what I want.
Rule n°2 – Respect. For you, for me, for everyone.
Rule n°3 – Don't post charts on drugs or works of art on these pages. (LOL)
Rule n°4 - Don't forget rule n°2, please.
It was an impetus.
The impulse of a moment.
And I'm here again writing about my way of looking at Trading.
Another series of Meditations on Market's Complexity.
I hope I didn't make a mistake.
I hate the solitude and the boredom of this business.
Often I lose my self in my – wandering and for that reason dangerous - thoughts.
When I write on FF, feeling the responsibility of what I'm doing, I obtain the great advantage of increasing my focus and my level of attention.
Moreover, as Gann said: “Life affords no greater pleasure than that of helping others who are trying to help themselves.”
No, I don't trade Eurodollar. Not anymore.
No, I didn't become rich as Livermore trading the attached chart.
Unfortunately I'm a normal, stupid, blind retailer. LOL
No, I'm not a self proclaimed guru.
I'm a simple, old, passionate, humble student of the Market.
And a diligent and eager reader of the fti's thread: Technical Analysis Fallacy.
I was looking at EU price action just to intellectually confute and contest some senseless posts I had read (as usual) on FF.
I started to watch and investigate inside this so evident and clear price behaviour...
and now I can't stop to watch at the perfect, powerful beauty of this chart.
I cannot stop to ask myself why the mass of Retailers Traders are so... at least, “naive”.
However and anyway... that's the point.
What does actually happen in our mind when we are in front of our charts?
What are the requirements to properly face the Market?
Where is the hurdle and the mistake?
Of course I'm addressing a particular and defined audience:
serious people, averagely informed traders of medium level...
with already a good, earnest and honest level of knowledge.
And I hope in some interesting contributions.
Watching those Price Movements,
I did this quick cut&paste with the title of a famous book
as a spontaneous mechanical reaction.
Read it. Read it again, please.
That in my first answer to the above questions.
Are you sure you gather and grab all the info that are inside those words?
"The pathway is smooth. Why do we throw rocks before us?”
I can sense a hidden nuggets inside this one
yes, nuggets! but someone has to have an eye to see them.
So how was your day, yesterday? (Mine is on Carpe Diem. I like to trade live there. )
1) I have read some the posts regarding people's trades on EURUSD, somewhere on FF.
As always I'm speechless.
In my attachment you are going to find a chunk of the same EU chart I posted yesterday.
I call this kind of move "A telephone call from the Market Makers! No brainer trade."
Yes no brainer is a wrong expression. No brainer trades don't exist.
As a matter of fact: Trading requires a brain, knowledge and a consciuous mind.
You must know what you are doing.
You must know what you want to do.
You must have a edge and a plan.
2) Price goes places to do things.
2) And this is a chunk of my DAX H1 chart of yesterday.
Want I want to demonstrate? : that we are simply a bunch of miserables in front of the Power of Market.
Jesse Livermore: - "...People have no idea of how powerful Trends really are..."
W.D. Gann: - "If we wish to avert failure in speculation we must deal with causes.
Everything in existence is based on exact proportion and perfect relationship.
There is no chance in nature, because mathematical principles of the highest order lie at the foundation of all things.
Faraday said:`There is nothing in the Universe but mathematical points of force. “
Just my point of view. I don't want misunderstandings.
I'm not teaching. I don't want to teach. I have nothing to teach.
I'm really mr No One.
Simply, I love trading and I love studying.
Fools try to prove that they are right. Wise men try to find when they are wrong.
I have tons of Moleskine full of quotes... and things that I have read somewhere.
Very often my posts are quick "cut&paste" from my old handwritten notes, drawn up during scrupulous years of humble study.
Very often I didn't registered the source... so I apologize for every my (not malicious) inattention or forgetfulness.
English it is not (I think it's easy to see it!) my mother tongue.
I prefer to copy stuff and write by hand (pen and pencil!) so to sip each word and its deep, true meaning.
Maybe this is a big advantage for a better comprehension of things.
1775. Munehisa Homma - “Buys and Sells are decided on emotion, not logic.”
Food for willing minds.
A possible object of research for who wants to understand.
Homma lived from 1724 to 1803 and even if half of the stories about him are real,
he was by far one of the most amazing traders in history.
He traded rice in the Osaka and Sakata markets. (They invented the Futures contracts there..)
And he is said to have been the “inventor” of the Japanese Candlesticks.
Anyway his personal knowledge (or the common one of all the Japanese Traders of his age)
is collected in what are called The Sakata Rules...
If you are searching the roots of the scientific trading... here they are.
5 ancient patterns of Japanese candlesticks.
Nison and Felipe Tuleda have treated the matter in depth in their books.
No need for me to extract from them.
Go to read them.
But it's better do not forget the lesson.
Homma was clearly trading from the pure price movement of the market
and he was the first person who realized the advantages of focusing one’s attention on market’s price movements to analyse its direction.
Homma realized price action reflects market psychology, and used it to his advantage.
In Homma’s book “The Fountain of Gold — The Three Monkey Record of Money”, which he wrote in 1755,
(impossible to find as far as I know...)
he says that the psychological aspect of the market is critical to trading success
and that traders’ emotions have a significant influence on market prices.
What Homma discovered, and Dow explained to the moderns, is that
the price movement on a “naked” price chart reflects everything about a market.
Everything you need to know
to find high-probability entry signals into any market
is available on a natural price chart.
(Fibonacci Retracement/Extension and Moving Averages require a different, separated discussion)
If you want to see your reflection in the mirror, you just go to a mirror and look at yourself.
You do not put a wig on or throw a paper bag over your head.
Similarly, if you want to see what a market is doing, you simply need to look at its price chart.
You do not need to cover up the most accurate reflection of a market with indicators and other nonsense.
Munehisa Homma discovered this simple truth more than 250 years ago,
and to this day many other traders, including myself, are still using pure price action to trade the markets,
because there is simply no better way to trade.
(Please, if you are new to these concepts read the first post by fti on TAF.)
If you want to be successful in this profession you must learn to trade with price action candlestick patterns
and in-line with time-tested concepts very similar to those Homma and other traders have been using for centuries....
It's a matter of study and knowledge.
PS. I have read Homma wrote a list of 160 detailed rules.
Please, does anyone know anything?
I would be really curious...
About the book title's indication I gave to my Followers...
I don't sponsor or patronize anything, of course.
Bulkowsky's works and his site are a nice source of professional info.
Serious and competent and respected.
Analyse and decide: retain what works for you and discard what not.
But my suggestion is: meditate in depth on what you see in those images.
Have a nice day on the Markets and trade well: always in control.
How do you prefer to trade?
With the wind at your back or against it? ROFL... here it is a nice lesson.
Be very careful with your pepper spray!
What about me?
How was my day?
Absolutely profitable. Full green. Always on the move.
And? What I want?
I just finished to examine my charts.
I did big mistakes. Too many.
I could have played way much better. I'm still too human. But I'm working on it.
Interesting journal you have here. Good work on having a green day.
If you do not mind sharing, I am curious as to what sort of "big mistakes" you made today.
Nothing to hide.
Couldn't resist (sometimes) to go against the main trend... that I perfectly knew! Typical stupidity.
Rummaging through the garbage just to take on a few points.
Dax... Impressive Bears effort. We must understand their reasons.
But I'm a buyer... in this very monent! LOL
I know nothing about non existing future. ROFL
DAX ger30 - live trade
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