To be successful... cut out the noise

We can all get enlightened by j12 wisdom. How lucky.

Buddy what can I say... Eye opening thread.. I really appreciate it!!

Thank you friend

I spent too much time doing analysis.
I switched to trading based on samples.
so you save a lot of time because I don't have to do so deep analysis.

the best I can advise.
just look for samples.

I'm not thinking about childrens patterns.
to search any basic composition that always comes back.

Hey what do you mean by samples??

they didn't mean candle patterns.
but I mean basic concepts, interconnections that come back regularly.

Ah ok I understand, good point

and you.
I can ask you what is the basic principle of trading.

Basic principle is price goes up or down. That's it. Not sideways not round & round not any other way.

That is it

It sounds simple because it is that simple. It doesn't matter how much effort you put in a "system" full of indicators.. Price goes up or down no matter how much you analyze it..

Random tossing coin charts also go up or down.

Yup that's right...

I have watched bank trading charts and I found out that almost all of them use indicators ....

I have limit myself to OSMA and CCI because most bank trading charts I have seen don't use more than two to three indicators with most of them use osma and CCI...

BANKS probably have their own genius algorithm. We are talking about financial institutions that understand and know everything about different fluctuations of money.

Since I dont use indicators and I dont understand much about them. Could you explain me why does price keep going up when many indicators are showing a clear sign of "overbought"?? .. The cross of two lines giving signal to sell on a "overbought" pair.... but still goes up.

If you can give me a logic explanation to that.. I'll start using indicators again.

I would have to agree. I have made it a point to cut down the time I spend on considering a trade this year.

Price will do what it wants, it'll go up when you & all the indicators in the world think & say it'll go down. You'll get stopped out then what happens as soon as you get stopped...???

You'll have a lot more success hopefully...

J

It depends on the goal of the Trader.

IMO, this business is highly flexible and highly adaptable because it is highly scalable relative to Cost Basis. So, it depends on what one is trying to accomplish. Some people just want to get the bills paid. Others are just looking to make a few extra bucks at the end of the months. Some people are trying to large scale grow capital and real wealth. So, how one defines "Risk" in all that will be dependent on what they are trying to get done.

Rate of return and absolute capital growth can be two very different things. It depends heavily on Cost Basis and whether it is progressively increasing over time. Absolute account growth is relative to absolute return on investment, but definitely not one and the same.

In my own trading, I measure absolute capital growth by the Time it takes to double the underlying account balance. That's the number one defining performance characteristic I care about. This has everything to do with my long ranging goals and what I'm accomplish as a Trader. So, for me personally, its less important (though very relevant) what my "rate of return" happens to be as opposed to what my ROT (Return On Time) turns out to be. I measure all trading performance based on Time and I do that by using a Revenue Model frame of reference while I'm engaged in production trading.

As long as I remain on "schedule" according to the Revenue Model's projections, then I know I'm on course for striking whatever capital growth goals I've configured that model to have. The "model" is always 100% in its target projections. I will never be 100% in my trading. The delta between the two is the increase in Time I experience in reaching the Model's target.

So, in my 'world' of trading (so to speak), on a failed trade I'm never losing Capital. A loss of Capital does not happen (in my imaginary 'world'). Failed trades only increasing the Time it will take to strike the Model's target. That's a different mindset and approach to Trading that keeps me focused on growing capital as opposed to merely making a profitable trade.

Therefore, growth of capital is a protocol driven process for me. It is part of a larger dynamic for me and at the core of that goal is to double the account as rapidly as I can. As long as I'm doubling in Time, I'm doing what the Model wants which satisfies my requirements. If I fail to double in Model Time, I need to go back and figure out why that's happening. I either need to tweak the Model, or tweak my Trading. But, if no tweaks are needed then that means I'm on Model.

So, my trading is just as "systematic" as the way I manage my capital. The balance sheet means more to me than the interval income statements.

Good movement again on The Australian side of the planet, I have put my trade explorer live again

1.2%+
110+ Pips


So this leave me at 5.3%+ 361 pips for the month of Feb

Again can't complain the monthly target is between 3.5% to 4%+

Approx spent about 15 mins this week trading, spent more time talking to @GMD on whatsapp

Regards

J