The Oldest Rule In Trading Still Works | Forex Factory

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The Oldest Rule In Trading Still Works

  • #1
  • First Post: Nov 28, 2017 9:59pm Nov 28, 2017 9:59pm
And it can't get more simple:

Buy low and sell high
Sell high and buy low

So buy not after price has risen, and neither sell when prices have fallen, armed only with a prayer it will move your way still.
  • #2
  • Nov 28, 2017 11:07pm Nov 28, 2017 11:07pm
Still works but impatience and fomo countervail. Being patient and trading with a focus on the broader direction will pay a great dividend.

Trade safe and prosper.

KP
Do your homework, follow the footprints of smart money
  • #3
  • Nov 29, 2017 12:15am Nov 29, 2017 12:15am
There's also buy high, sell higher or Sell low buy lower as well.
  • #4
  • Nov 29, 2017 1:05am Nov 29, 2017 1:05am
There is also buy straw hats in winter.
You cannot be extraordinary by being normal
  • #5
  • Nov 29, 2017 3:11am Nov 29, 2017 3:11am
Anything works in the market.

It is that dynamic until your results bend.
The future depends on what we do in the present.
  • #6
  • Nov 29, 2017 3:21am Nov 29, 2017 3:21am
Quoting NewstradrFX
And it can't get more simple: Buy low and sell high Sell high and buy low So buy not after price has risen, and neither sell when prices have fallen, armed only with a prayer it will move your way still.
If only it was so easy. Nine times out of ten this strategy of trying to buy bottoms and sell tops will get any inexperienced trader killed off very quickly.

Timing and judgement are everything in trading, as is knowing where to get into a move. Always far better to wait for confirmation that the price has indeed reached a top or bottom than jump in on a wing and a prayer.
  • #7
  • Nov 29, 2017 3:44am Nov 29, 2017 3:44am
Such a stupid thread.

It's like saying, Get rich young. Or win WW1. Or you know just goto Mars by building a spacecraft, sounds easy when you say it.
HMSR
  • #8
  • Nov 29, 2017 6:30am Nov 29, 2017 6:30am
Sell lower and buy higher also works in markets like that one...
Attached Image (click to enlarge)
Click to Enlarge Name: buy-higher.png Size: 79 KB
Maadik Hugiis. IQ 69.
  • #9
  • Edited 6:59am Nov 29, 2017 6:40am | Edited 6:59am
Quoting cat
{quote} If only it was so easy. Nine times out of ten this strategy of trying to buy bottoms and sell tops will get any inexperienced trader killed off very quickly. Timing and judgement are everything in trading, as is knowing where to get into a move. Always far better to wait for confirmation that the price has indeed reached a top or bottom than jump in on a wing and a prayer.
I didn't mean to time entire highs and lows of markets like calling the top of the current stock market run-up, which is extremely difficult. But when you see a market is trending up for example, and you believe it will keep going that way, buy on a pullback in price rather than at a recent top. Same goes but in reverse when you want to sell.

Quoting Madinvestor
There's also buy high, sell higher or Sell low buy lower as well.
I don't believe in it. Let's say a candle has gone up 120 pips and you buy at the top. Where is your stop gonna be?

Quoting compro99
Anything works in the market. It is that dynamic until your results bend.
Your longer term results can never bend if you can win 3 times as much on your winning trades as you lose on the losers.

Quoting Hmsr
Such a stupid thread. It's like saying, Get rich young. Or win WW1. Or you know just goto Mars by building a spacecraft, sounds easy when you say it.
That's a facile analogy. Trading at the price you want is one of the few things we have control of.

Quoting MoneyZilla
Sell lower and buy higher also works in markets like that one
Trending markets rarely move in one direction exclusively so there's usually a chance to buy on dips in up markets and vice versa.
  • #10
  • Nov 29, 2017 6:59am Nov 29, 2017 6:59am
[quote=NewstradrFX;10541747]{quote} I didn't mean to time entire highs and lows of markets, like calling the top of the current stock market run-up, which is extremely difficult. But when you see a market is trending up for example, and you believe it will keep going that way, buy on a pullback in price rather than at a recent top.

Sure, that goes without saying though. If more traders bought and sold with momentum already on their side following a pull back, there would be a great deal more winners than there are, but the human psyche, the non-trader human psyche, doesn't work like that, and most aspiring traders try to outsmart the market instead of submitting to it and going with the flow. Problem is, each and every one of us think we are smarter than we are where the market is concerned, and by the time most traders find out that this is not the case, it is already too late. Many never find out, and blame everything from market manipulation to their brokers having a vendetta against them.

I've seen it all in my time here on ff.
  • #11
  • Nov 29, 2017 8:44am Nov 29, 2017 8:44am
Quoting NewstradrFX
And it can't get more simple: Buy low and sell high Sell high and buy low So buy not after price has risen, and neither sell when prices have fallen, armed only with a prayer it will move your way still.

For me: follow the market trend, still working.
  • #12
  • Nov 29, 2017 9:26am Nov 29, 2017 9:26am
Quoting NewstradrFX
So buy not after price has risen, and neither sell when prices have fallen, armed only with a prayer it will move your way still.
What timeframe are you talking about here? M1, M5, M15, H1, H4, D1, ... ? And what Markets? What strategies?

Price will always have risen and fallen on either timeframe or Market. Also Markets are not deterministic and not casual. Markets are never overbought or oversold. It always can move higher or lower. Just look at BTC for instance: Bitcoin has absolutely no fundamental value, but still people buying it like crazy.
  • #13
  • Nov 29, 2017 10:01am Nov 29, 2017 10:01am
Quoting cat
Problem is, each and every one of us think we are smarter than we are where the market is concerned, and by the time most traders find out that this is not the case, it is already too late.
Buying after a pull-back in an uptrend will make you smarter. And vice versa.

Quoting mw108
What timeframe are you talking about here? M1, M5, M15, H1, H4, D1, ... ? And what Markets? What strategies? Price will always have risen and fallen on either timeframe or Market. Also Markets are not deterministic and not casual. Markets are never overbought or oversold. It always can move higher or lower. Just look at BTC for instance: Bitcoin has absolutely no fundamental value, but still people buying it like crazy.
TF doesn't matter. All markets. The only strategy is what I said in the first post, but I use fibonacci to find optimum price. The fundamental value of anything is determined by what someone else is willing pay for it, although it may indeed be the case that what makes them willing is irrational exuberance.

But irrational exuberance is good. It makes markets move and trading possible.
  • #14
  • Nov 29, 2017 6:42pm Nov 29, 2017 6:42pm
It's very hard to lose money trading when 2 out of 3 bad trades breaks you even or puts you slightly ahead.

It's much easier to do than to find a mystical system that picks 7 outta 10 winners over many trades.
  • #15
  • Nov 29, 2017 7:55pm Nov 29, 2017 7:55pm
Quoting mw108
{quote} What timeframe are you talking about here? M1, M5, M15, H1, H4, D1, ... ?
When i said TF's don't matter that's because when I'm looking at the market for a trade I look at daily candles and just watch how they're moving. Mot constantly, like if I'm watching a game I'll go back and forth.
  • #16
  • Dec 6, 2017 7:42am Dec 6, 2017 7:42am
Quoting NewstradrFX
And it can't get more simple: Buy low and sell high Sell high and buy low So buy not after price has risen, and neither sell when prices have fallen, armed only with a prayer it will move your way still.
It works, really. The price does not have constant movement in one direction. It's changing.
I will now explain why many traders continue to sell when the price has already fallen and vice versa:

- This feeling, when you missed the movement and you want to at least make some money, before it's too late.
- Trade in the direction of movement during the movement can be based on the fact that the trader sees significant levels that must be achieved.
- There is also a rule that you can not try to trade from the very beginning of the trend, because the movement can be deceptive.
- Many traders can make mistakes and try to catch up with the movement when it can not be done because of inexperience, or because of a lack of information.
  • #17
  • Jan 12, 2018 6:00am Jan 12, 2018 6:00am
Quoting NewstradrFX
And it can't get more simple: Buy low and sell high Sell high and buy low So buy not after price has risen, and neither sell when prices have fallen, armed only with a prayer it will move your way still.
Yes. It always works and will work in future also. But the problem is how to detect the price is in the high or in the low. Today's high price could be tomorrow's low price. Here is the real challenge of the oldest rule of trading. For this simple rule to implement we meed good knowledge and skills. So it is not so simple as it seems to be.
  • #18
  • Jan 12, 2018 6:23pm Jan 12, 2018 6:23pm
I just simplify things even further. The market is always right, wherever it decides to go i follow. If the market reverses, I don't hope, I don't guess, I don't rationalize, I get out and bank the money, then i reverse. I never lead or project the direction, because ultimately it's not up to me.
  • #19
  • Jan 12, 2018 11:20pm Jan 12, 2018 11:20pm
Quoting MoneyZilla
Sell lower and buy higher also works in markets like that one... {image}
Allow me....
Translation: Counter Trend Trading also works in trending markets.
Staying in my lane...
  • #20
  • Jan 12, 2018 11:30pm Jan 12, 2018 11:30pm
Quoting NewstradrFX
It's very hard to lose money trading when 2 out of 3 bad trades breaks you even or puts you slightly ahead. It's much easier to do than to find a mystical system that picks 7 outta 10 winners over many trades.
Huh? Please explain
Staying in my lane...
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