Hi all,
Readers of this thread might notice I'm quite the one trick pony, I only have one basic trading idea and try to stick to it. Today's trading, allied to the chart yesterday, demonstrates this well:
Markets opens at 8am and immediately starts a strong downtrend, not unexpected after the Nvidia news in the US last night. As an aside, though my trading is technically based, markets in the end reflect fundamentals, all chartist squiggles notwithstanding. So I do take note of the bigger real world news that happens to get a basic bias sometimes, even though in my 1 minute timeframe and short duration trades the technical price structure is more important to me - fundamentals tend not to change too much minute by minute (unless you trade big news releases, of course!).
Anyway, my bias is short and after a fall to the 24 level followed by a bounce back to 50, the market rolls over and I am happy to try a short at 45. Another brief attempt to challenge 50 fails and the market duly collapses all the way to 00. With an initial 1R target at 31 I close into the freefall at 22 for +23pts, 1.6R. There was another quick 23 pts available for anyone braver than me and willing to hold on, but that is generally not me.
What I really want to emphasise here is that I am doing nothing more than consistently following one simple pattern of repeating market behaviour - the tendency for price to have a directional flow with weak rebounds that roll over and at least retest the prior extreme. The pattern is simple, the trading strategy is simple, but I hope you can see from this thread that it can make consistent money without indulging in huge risk. And consistency is the key word in all this: I trade that specific pattern whenever I see it, I do not second guess the pattern - if I see it there, I trade it - and I do not trade if the pattern is not there.
This pattern suits me. Sure, it is simple enough but it took a lot of trial and error for me to find that this pattern & timeframe is what suits me; and then a lot of repetition for me to trust it and trade it consistently. You are not me and will see the market differently, so you'll more naturally find a different price structure, timeframe and pattern that suits you. It doesn't really matter what you do as long as it is basically sensible and you can see and trust what you are doing. And once found, stick to it and trade it consistently with good risk control. Boring, perhaps, but a solid way to trade.
Readers of this thread might notice I'm quite the one trick pony, I only have one basic trading idea and try to stick to it. Today's trading, allied to the chart yesterday, demonstrates this well:
Markets opens at 8am and immediately starts a strong downtrend, not unexpected after the Nvidia news in the US last night. As an aside, though my trading is technically based, markets in the end reflect fundamentals, all chartist squiggles notwithstanding. So I do take note of the bigger real world news that happens to get a basic bias sometimes, even though in my 1 minute timeframe and short duration trades the technical price structure is more important to me - fundamentals tend not to change too much minute by minute (unless you trade big news releases, of course!).
Anyway, my bias is short and after a fall to the 24 level followed by a bounce back to 50, the market rolls over and I am happy to try a short at 45. Another brief attempt to challenge 50 fails and the market duly collapses all the way to 00. With an initial 1R target at 31 I close into the freefall at 22 for +23pts, 1.6R. There was another quick 23 pts available for anyone braver than me and willing to hold on, but that is generally not me.
What I really want to emphasise here is that I am doing nothing more than consistently following one simple pattern of repeating market behaviour - the tendency for price to have a directional flow with weak rebounds that roll over and at least retest the prior extreme. The pattern is simple, the trading strategy is simple, but I hope you can see from this thread that it can make consistent money without indulging in huge risk. And consistency is the key word in all this: I trade that specific pattern whenever I see it, I do not second guess the pattern - if I see it there, I trade it - and I do not trade if the pattern is not there.
This pattern suits me. Sure, it is simple enough but it took a lot of trial and error for me to find that this pattern & timeframe is what suits me; and then a lot of repetition for me to trust it and trade it consistently. You are not me and will see the market differently, so you'll more naturally find a different price structure, timeframe and pattern that suits you. It doesn't really matter what you do as long as it is basically sensible and you can see and trust what you are doing. And once found, stick to it and trade it consistently with good risk control. Boring, perhaps, but a solid way to trade.
Boring is less stressful
