Traders greatest Achilles Heel

In all my years of trading, I have came to identify that the biggest Achilles Heel of most active traders (both new and seasoned) is the failure/inability to read into when the price stall (both topping and basing). The natural course/process of any price action is rally/decline, stall, consolidate and reverse. This very key/pivotal link to the whole process of PA dynamics/course is often the most understated, misunderstood and overlooked aspect of forex trading i.e. price STALLING.

You can have the best trading strategy/method, proper money management relative to the amount of your capitalisations, risks and projected profits, top mental/psychological/physical conditions, best brokers and topend trading platform/charting package etc.......BUT if you neglect or overlook this very key aspect of forex trading, you will always be mired/flummoxed by the unending and vicious problem with the Entry/Exit and Stop Loss part of the trading. Meaning that even if you would like to consider yourself a profitable/successful forex trader, you are at best still struggling to string together a consistent/sustainable stream of profitable and incremental trading accounts for months after months and thereafter.

STALLING is both a beginning as well as the end of any single PA market conditions/sentiments. So knowing when the PA process is starting/ending is paramount to any effective/profitable/optimal trading method/strategy.

Very often, I have notice most traders would identify a price stalling as topping or basing signals meaning either that the price have either topped or bottomed. In reality, a Stalling signal is actually a beginning/ending signal/sign of a particular market conditions which is about to top/base. Very often a Stalling signal is followed by another leg up/down (80-120pips) depending on the prevailing PA market conditions/trend before it morph into a consolidated/rangey/toppy/basey mode and therafter follow by a Reversal. So you can see that all the key elements of trading (Entry/Exit/SL) are there for your pickings.

I am starting this thread to give a heads up everytime I spot a Intraday Stalling sign/signal. I will not reveal how this is all being done nor post any charts becos I want you to build your own trading method/system perceptible to your ownselves around those signals which I have posted. In that way, you can say it to everybody that you have devised a successful trading method/strategy based on your own and true ability. No posting/pm will be merited or answered unless I consider them to be worthy of any response on my part. I will not hesitate to use my "Ïgnore" prerogative whom I consider rude, dishonest or act in a ungentlemanly manner devoid of proper traders decorum/etiquette and House rules.

However, I am not quite sure if the starting of this thread will really benefit those deservedly traders out there. I will gauge its usefulness/benefit and if its deemed not to be so, then I will stop.

The current PA for E/U is bearish intraday/st and the next stalling signal for this pair will start with this last/latest PA.

Good morning 99vt66,

Thank you for helping us to understand the "globalism" (if there is such a word) of Forex Trading. Although I have also been trading for years, I have not been fortunate enough to identify this phenomenon myself and also had to "go with the flow" so to speak.

Your last sentence says............."The current PA is bearish intraday/st and the next stalling signal will start with this last/latest PA."

Are you saying therefore that ALL currencies are in a "bearish intraday stall"?

When did this last / latest stall happen? This week or Friday for instance? And finally, do you base this information on any specific TF or is it Fundamental information, which means that we have to look at a broader picture if we are not "fundamentalists"

Your kindness in sharing is most appreciated and I look forward to hearing from you.

Best wishes.

Today I would like to highlight one of the many common mistakes/flaws which I have noticed while reading thru some of the posts in this Forum during my short time here.The one that stood out like a sore thumb are those trade calls made immediately following a Intraday change of s/t trend of a particular pair. The fact that this Forum is flooded with learners,scalpers, beginners and novices also play a big part in this common flaws becos they have yet to understand and grasp the actual price dynamics and natural course/process of a particular currency pair. So any price movements that near the top/bottom or move out of their miniscule t/f channel/trendline which they normally use, the first thought process is to either look for the top/bottom believing that the price have gone too high/low and will surely bound to come back. This is in fact very true if and when the prevailing market conditions/sentiments is rangey/consol BUT they will most definitely have their nose bloodied and their eyes agog when indeed the PA have just morphed into a different trending mode. (Normally its ok if its a lesson learnt but in most cases the knockout blow came before the lesson is learnt). The common/natural human behavorial pattern/response unfortunately almost always runs in conflict with the natural process/course of currency price actions.

I cringed everytimes when I see those actions unfold right before/after a new intraday trend is forming and the amazing thing is those traders who are caught on the wrong side of the trade often use all sort of reasons/excuses to ameriolate/justify their misread/losses that they completely miss/ignore the gist/core of the actual fault/flaw and go on to repeat the same old mistakes over and over again. I am shocked and feel sad not because they are caught on the wrong side of the trade BUT WHY the lesson was never learnt.(I have often seen seasoned traders with 10v tag doing that too!!) I am fully aware that I will be flamed for this BUT more important is I am also fully aware of all these normal humanistic learning process/curve becos I have been there, done that BUT the only small difference on my part is that I have taken a different learning approach by first identifying and then rectifying my personal and technical weakness/ignorance/incompetency and I am glad with my result thus far.

There is no easy way or short cut and the sooner you realise and rectify your many faults/flaws/technical incompetency and all other internal/external limitations, you will be in for a rough and torturous journey at the expense of both the financial and bodily detriments.

For some aspiring traders, beginners and novices, the sad fact remains that most of the time they dont even know what there is to know in order to survive/succeed in this very brutal forex market. For them, I strongly advocate that you first learn/know the PA natural process/course and then devise/build/construct or whatever some form of technical roadmap/signpost to help you to navigate thru this seemingly easy maelstrom of ever changing price movements/dynamics. Begin with the most liquid pairs of E/U or U/J first becos being most liquid also produce the most diverse and multi dimensional facet/gamut of PA of which most can be learnt and honed here.

Then the next biggest challenge is to sift/disseminate thru those mountain loads of informations/methods which are all seems to be useful/informative when use/apply in the right time and right market conditions. So there again, timings, dynamics, formations are keys elements and the prerequisites if you were to succeed.

I will be also be posting those stalling signals on the E/U as and when I spot any starting next week. You may have to put up and excuse me with my bad/incorrect English as its not my first language but I try to put in my best efforts to get my message thru and clarify them if there is a need to.

GL and lets see if we can do it and get our acts together.

Cheers..

However, can you define PA, or price action in a more precised manner?

Recognizing trending/non-trending market is pretty much one of the biggest mystery of investing. They all look obvious in hindsight.


Looking forward to your new post

In order to make my post more comprehensible and also to align the varying depth of perception due to the different level of understanding both in forex knowledge and the way different traders are being taught, setted and molded, the word "trend" will be deemed from now on to be such:-

1.Intraday/short term trend - means that the high or low will be temporary capped and will not be revisited from 1-3days.
2.Mid term(m/t) trend means the same but the difference is the high or low will not be revisited from 5-21days.
3.Long term(l/t) trend means from weeks to months and even years.

For e.g. E/U current mid and long term trend is bullish but Intraday bearish
until such time when the m/t trend level/support is being breached and so on.

And the other important point to note is I dont predict top or bottom becos the destination is secondary to the significance of the prevailing/primary trend/direction. Until such time when I have a stalling/topping or basing/rev signal being spotted or generated, the prevailing/current trend will always rule and dominate over all other trends. (remember every thousand miles start with the first step) Simply put, I remain current at all times and flow with wherever the current/signpost wants to take me. Of course, I will post my take if and when I see any changes in those m/l/t trends just as I have posted in May where I made my take in the m/l/t trend change when PA breach the bullish resistance level@13410.

I hope it helps a little so that my postings will be more easily understood by most and at the same times remain coherent in sync with my trading thought processes.

GL and cheers.......

PS. I actually belong to the old school where a dip can only be had when price is bullish and a bounce when a price is bearish. Nowaday, its usage have become a bit obscure/gibberish and have since taken on a new meaning especially among the newer and seemingly more vocal and techno astute traders.

Just want to to post some current key price levels as price begins to pullback most likely to 14085/14130 level before continuing its journey south with a potential or breaching m/t trend resistant level@13950. 14020 remains the last bastion/springboard for launching that assault.

Current PA will continue to be bearish unless 14170 is retaken within the next 4-6hr which will then likely to trigger the stalling signal. Pls note that stalling trigger is dynamic at a approximate rate of 4pips/hr for E/U.

Will post again if any significant movement develop.

GL and always watch those signposts and happy pippins.......

posting a annotated chart to show us what you looking at instead of calling out levels?

This is one post that reflects another trading myth with a tinge of self aggrandisement.

I have clearly make myself clear from my first post that the aim of my this thread is to give a heads up for those traders who deservedly need it and that I WONT be posting any chart. The simple reason being if you cannot even correctly read your own chart, then the chances is you cant read someone elses. AND there are thousands of trading charts being posted in this forum here, are you any better or have your trading improved after having read them ?

The most important chart of all is the one that belongs to YOURSELF and if you dont have one then you shouldnt be trading at all becos clearly you are definitely not ready to trade yet. So one should focus on building up their own effective chart first before looking at other ppl charts.

Sorry, I have put him on 'Ignore' becos I feel he is not the deservedly one and that he clearly lacks the self confidence a good trader needs. No offense intended.

Cheers.......

Stalling trigger for next 4-6 hrs now @14130lvl..........

Hi 99vt66!

I just need to let you know that I'm a struggling forex trader/apprendice and have opened Trading Discussion for the first time. Having read your posts few times, I have a gut feeling that this is a lucky day for me.
You have aleady managed to channel my thinking about charts reading in a much deeper way, and I wanted to thank you for it.

My hope is that I will understand enough to be able to ask a question from time to time. Hope you don't mind.
I also hope that sharing your knowledge and insight in this way gives you pleasure knowing that someone may put it to good use.

franguast

F,

I have in fact posted a couple of months ago on what is really required of a effective trading chart. In fact I have thrown that question to the floor in this forum here and beside a few snide remarks, So far NOBODY (ZILCH) have responded and I am still waiting.....

I would advise you to use that as a basis upon which to build your chart and REMEMBER that unless and until you have all the first 5 elements on the chart, only then can you begin to trade live. (Trading live by itself is also part of the training/honing/confidence building process).

Its not going to be a easy ride but I will try my bests to assist you (if needed and necessary) as long as you are serious in your sincerity and effort in wanting to be a trader.

GL and happy learning.

PS: Learning Tips: Try babypips.com first and in there you will find a six million dollars question/challenge which you have to make it your learning target.

It's not babypips, it's perspective. Moneydude helped you get to your post #5, and has a myopic, one-chart-driven mindset because that's how most posters, including me, think. So I don't think that's it. First time I saw your price stalling idea, I thought of tick patterns. How's that for missing the idea?

It's great you have a chance to break a lot of people, including me, of " So any price movements that near the top/bottom or move out of their miniscule t/f channel/trendline which they normally use, the first thought process is to either look for the top/bottom believing that the price have gone too high/low and will surely bound to come back. This is in fact very true if and when the prevailing market conditions/sentiments is rangey/consol BUT they will most definitely have their nose bloodied and their eyes agog when indeed the PA have just morphed into a different trending mode. (Normally its ok if its a lesson learnt but in most cases the knockout blow came before the lesson is learnt). The common/natural human behavorial pattern/response unfortunately almost always runs in conflict with the natural process/course of currency price actions.

I cringed everytimes when I see those actions unfold right before/after a new intraday trend is forming and the amazing thing is those traders who are caught on the wrong side of the trade often use all sort of reasons/excuses to ameriolate/justify their misread/losses that they completely miss/ignore the gist/core of the actual fault/flaw and go on to repeat the same old mistakes over and over again ."

Forex seems especially dangerous for this; I've rewritten my method to include ranging and trending for the past year, without result. Maybe it's my mindset, too. I look forward to reading your thread.

Um, can you post a link to the one-time explanation of your charts? (I prefer dashes. ) That's alright if you don't.

SS triggered...

GL and happy pippins....

this must be one of the best threads i've seen during last years...

the very idea is so fresh, novel and brilliant that i can not help listing it again here

are you serious, pal? no, i did not think so...

You wrote in your very first Post #1.

"No posting/pm will be merited or answered unless I consider them to be worthy of any response on my part. I will not hesitate to use my "Ïgnore" prerogative whom I consider rude, dishonest or act in a ungentlemanly manner devoid of proper traders decorum/etiquette and House rules."

I wrote to you in Post #2 and you have up till this moment "chosen to ignore" me, so I guess you consider my posting "unworthy" and yet you choose to say that you will "not hesitate to use my prerogative whom I consider ......ungentlemanly......devoid of proper trader's decorum/etiquette and House rules."

I must therefore deduct from this that:
(a). you think me unworthy (maybe you can be magnanimous enough to tell me at least of what and based on whose opinion and on what?
(b) you are dishonest with yourself as I have not been rude, dishonest or acted in an unbecoming manner, neither have I ever broken an etiquette rule (maybe your own self centered set?) and yet you choose to ignore me, but you can reply to a Newbie as if honey is dripping from your mouth? "Its not going to be a easy ride but I will try my bests to assist you (if needed and necessary) as long as you are serious in your sincerity and effort in wanting to be a trader." Assist him in doing what? when you are not prepared to at least show him the way? Albeit YOUR way!


I have come to the conclusion that anyone can look at any chart irrespective of TF and pretend to be looking at something and make the statements that you are making.

You are arrogant beyond what is humanly possible to tolerate when you say in your Post#

This is one post that reflects another trading myth with a tinge of self aggrandisement. You be the judge based on comparing what you think you have and what you think is the ONLY correct chart without owning up to what you are comparing / judging people with???

I have clearly make myself clear from my first post that the aim of my this thread is to give a heads up for those traders who deservedly need it and that I WONT be posting any chart. The simple reason being if you cannot even correctly read your own chart, then the chances is you cant read someone elses. Who said that they cannot read their own charts? YOU suggested that what your charts tell YOU is the correct information and we all were interested to hear what you are offering.

Trader's decorum and etiquette based on YOUR understanding of it, are miles apart. If you subscribe to etiquette, then I suggest you use the world standard of etiquette / decorum and firstly stop thinking that you are the best trader in the world just because you have "discovered" the processes for yourself. Long before you started trading, people have discovered ground breaking information which they shared with the world because of their decorum and willingness to give back to society - their unselfish attitudes most certainly benefits you today and yet, you sit on your own "little heap of information" and will decide who is "worthy to receive "nothing" for they deservedly need it"

Life stops when you stop learning, hence my interest in your Thread; I have no time or energy to waist on such self importance as you have displayed since the start of your first post here.

I do not wish anyone any harm, but I suggest you all put your energy into something that will yield positive results.

Finally your latest Post, "SS broken, happy pippin" must have burnt a nice hole in your pocket? Here is what you posted previously in case you are also myopic:

"Just want to to post some current key price levels as price begins to pullback most likely to 14085/14130 level before continuing its journey south with a potential or breaching m/t trend resistant [color=blue]level@13950[/color]. 14020 remains the last bastion/springboard for launching that assault"

Bravo .............. the most intelligent reply possible.........
i just finish to read all the previous post of"99vt66" is doing exactly the opposite of what he was doing when asking details to others...
99vt66 it seems that your EGO take too much space....

CHEERS

landsat

Ok. Iam everything you said I am. So I am closing this thread.


GL and cheers.....

Dear 99vt66,

I would like to learn from you. Please do not stop your posting.

If you do not mind, I hope that you can mentor me. I have been reading up alot of books/websites/forums but without much success.

I hope I can hear from you.

99vt66,

Please excuse some of our brothers here. I know that ALL of us can be a little quick to judge. However, as I see that E/U is not currently making any significant moves north or in fact in either direction, I cannot help but feel that perhaps Hercs is a little quick off the mark.

Perhaps you will reconsider your position on closing this thread. Some of us are interested to hear what you have to say on the matter.

Limstylz,

I did not judge! It is the man himself who openend this Thread who reserved himself the right to judge!

I was also interested to hear what he has to say, but he says nothing and makes unsubstantiated calls.

What are you personally hoping to get out of him?

Sincerely?