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The brutal truth of day trading

  • #541
  • May 2, 2021 7:04am May 2, 2021 7:04am
Quoting maverick2017
{quote} Are these markings correct?{image}
To much levels.
Perfection is the enemy of good enough!
  • #542
  • May 2, 2021 7:13am May 2, 2021 7:13am
Quoting MichaelSch
{quote} To much levels.
Hi Michael (do you mean michael scofield?)
How is three too much?

Even my broker recommends 3 levels of support and 3 levels of resistance for intraday trading.
A trade should be based on an assumption based on facts
  • #543
  • May 2, 2021 7:18am May 2, 2021 7:18am
Quoting maverick2017
{quote} Hi Michael (do you mean michael scofield?) How is three too much? Even my broker recommends 3 levels of support and 3 levels of resistance for intraday trading.
Is too much and I do not read broker tutorials.
Often I have one level and sometimes two in a trading day.
Perfection is the enemy of good enough!
  • #544
  • May 2, 2021 7:23am May 2, 2021 7:23am
Quoting MichaelSch
{quote} Is too much and I do not read broker tutorials. Often I have one level and sometimes two in a trading day.
But markets have been volatile recently.

Do you have a pip based target or level based target or both?
A trade should be based on an assumption based on facts
  • #545
  • May 2, 2021 7:26am May 2, 2021 7:26am
Quoting maverick2017
{quote} But markets have been volatile recently. Do you have a pip based target or level based target or both?
I have a target that build in future context or I cut if I have enough risk reward.
I discuss this point in my own thread.
Day trading is something that work and every other time frames as it own. Understand simple things and you know that it is misleading to think as in the first post.
Perfection is the enemy of good enough!
  • #546
  • May 2, 2021 7:35am May 2, 2021 7:35am
Quoting MichaelSch
{quote} I have a target that build in future context or I cut if I have enough risk reward. I discuss this point in my own thread. Day trading is something that work and every other time frames as it own. Understand simple things and you know that it is misleading to think as in the first post.
What is meant by future context?

And day trading works.
A trade should be based on an assumption based on facts
  • #547
  • May 2, 2021 7:42am May 2, 2021 7:42am
Quoting maverick2017
{quote} What is meant by future context? And day trading works.
Send you a message, because it goes out of road here.
Perfection is the enemy of good enough!
  • #548
  • May 2, 2021 7:44am May 2, 2021 7:44am
Quoting maverick2017
{quote} Hi Rick, Was there no buying pressure when price was dropping (look at the wicks below on the bearish candles) ? At the line, there would have been big players. What was the volume on limit buy orders? What are order flow charts?
Hi Maverick

In short, the long candle that broke the target line had no buying interest and was very bearish (Volume 3 times average). On the next candle however, buyers did enter to stop the move but no signs of any bankers as the volume wasn't huge (2 times average volume).
Buyers only really got interested from Candles 3, 4 & 5 and onwards.

So the Buying interest was late and did support the Pattern finally - but don't thank the bankers.
The bankers only really put some big traders in the tops of Friday - otherwise I want to know what the hell they were doing (they were trading EURUSD by the looks) as any trades they were doing were small and perhaps well hidden.

The important aspect of GBPUSD is the volume over the week was poor and the only real major action occurred on Friday evening.
Trading thin liquidity at the boundary of the charts
  • #549
  • May 2, 2021 7:57am May 2, 2021 7:57am
Quoting RickM
{quote} Hi Maverick In short, the long candle that broke the target line had no buying interest and was very bearish (Volume 3 times average). On the next candle however, buyers did enter to stop the move but no signs of any bankers as the volume wasn't huge (2 times average volume). Buyers only really got interested from Candles 3, 4 & 5 and onwards. So the Buying interest was late and did support the Pattern finally - but don't thank the bankers. The bankers only really put some big traders in the tops of Friday - otherwise I want to know what...
Where did the LL LH pattern fail ?
A trade should be based on an assumption based on facts
  • #550
  • May 2, 2021 8:38am May 2, 2021 8:38am
Quoting maverick2017
{quote} Where did the LL LH pattern fail ?
The support line / target line was broken.

It was close to destroying the pattern if Buyers had of entered early. As they entered late, the pattern was unbroken.
Trading thin liquidity at the boundary of the charts
  • #551
  • May 2, 2021 9:04am May 2, 2021 9:04am
Quoting RickM
{quote} The support line / target line was broken. It was close to destroying the pattern if Buyers had of entered early. As they entered late, the pattern was unbroken.
Disagree.

LL LH pattern did break. Market did move up.
A trade should be based on an assumption based on facts
  • #552
  • May 2, 2021 7:21pm May 2, 2021 7:21pm
To be honest, I see that many people need to do less talking and more study. But that's just me.


Peter
Real Trading is not gambling.
  • #553
  • May 2, 2021 7:23pm May 2, 2021 7:23pm
If someone does not understand the markets they participate in, how can one appreciate the players in them.


Peter
Real Trading is not gambling.
  • #554
  • May 2, 2021 8:18pm May 2, 2021 8:18pm
As an open-close style day trader, you have two choices - fast drip or slow drip. I say drip because in comparison to a 300 point break or high vol momentum move, what you're going to get intraday is curling iron swings and putt putt shots.

So as a daytime trader, you need to think in these terms so you don't get lost in all this intellectualizing.

For me, I use a simple formula .....

Price level : time spent : type of movement : Bid/Ask Push : points available.

All the lines and channels and indicators and data and so on, is pretty but it does not paint the correct picture for a day trader.

If you don't know HOW to hook a shark, why the hell would you try until you understand that shark?

You have to think like a person who thinks. And stop letting the "trading stuff" do your thinking.

*Price level = Is it price over time or time over price? = Very vertical or very sluggish and mainly horizontal?
*Time spent = For YOU AND the market. The longer you wait for a trade, the MORE expensive that trade becomes. Time is the most expensive asset you have and use. Being expensive or not is not a good or bad thing, it's simply relative to what is happening.
*Type of movement = pick your assessment methodology here. "Style of trade", high risk vs low, big profit target or small. etc.
*Bid/Ask push = PROPER Tick Totality WILL and DOES give you an accurate measure of these two. But most people I see are not thinking .... about how they commune. Most use indicators to point and shoot but don't see the "indicate" part. If your head doesn't have the knowledge already hardwired, then you're expecting and hoping the indicator to all of that FOR you. BIG mistake. Most of what people say about the spread and the indicator/indication here is ambiguous and requires interpretation. The 'spread' as it's sometimes called, is a mark of time in relation to price. If you want to believe the broker/market is 'out to get you' then fine but you need to understand that if you actually learn how to trade, then you can pick the areas where the spread will feasibly change as it is also determined by knowing your broker. In this area, Ticks are directional and indicate something. A "push" is where a real/false move occurs and this is why you see all different sized candlesticks/bars etc. But again, if you are being literal and "factual" and NOT understanding the market, then you must be using an indicator in the same way, seeing as YOU are the one doing the thinking - IT just calculates then displays, tracks and recalculates and then displays.
*Points available = Based on all the above points of reference, this one is self-evident and SHOULD be self explanatory. If you do not trade in the future, then you are going to always 'wonder' where the move will go.

Day trading is therefore not for the unteachable or for people who try to "make a trader". However I see no difference really between intraday or Monthly. Why? I think THEN I look and then understand.


I hope that helps.

Peter
Real Trading is not gambling.
  • #555
  • May 2, 2021 8:42pm May 2, 2021 8:42pm
Below are two simple and rather self explanatory examples to test whether you have any business trying to day trade ....


Attached Image (click to enlarge)
Click to Enlarge Name: GBPAUD REVERSED.png Size: 42 KB
Attached Image (click to enlarge)
Click to Enlarge Name: A day's trading.png Size: 80 KB


See how much you can learn from these. If you cannot, then you probably should not be day trading. Maybe try a higher TF.


Peter
Real Trading is not gambling.
  • #556
  • May 2, 2021 8:44pm May 2, 2021 8:44pm
Nice to see the GBPUSD doing its twist and roll again. Nice way to end a VERY profitable week (Even without Friday).

Peter
Real Trading is not gambling.
  • #557
  • May 2, 2021 10:53pm May 2, 2021 10:53pm
And this one .....

.... predictable to a "P" ......

Done with a basic Bollinger set of Bands set at 20 2.

"When you accumulate a world of knowledge and know-how over a full lifetime, then the act of simplifying is a satisfying thing. Unlike immature over-simplification......I can see my tail, IF I can juuuuust reach a little further ... almoooost got it! ..... Oh rats! Missed again!"

My motto and mantra = "Learn or don't learn. PERIOD."

Everything people have been talking about on this thread (And others) is all wrapped up in those three completely undervalued little lines there.


Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD TWIST AND ROLL H1.png Size: 58 KB


Toodles ...


Peter
Real Trading is not gambling.
  • #558
  • May 3, 2021 1:05am May 3, 2021 1:05am
I saw what you did there Peter. Your best series of posts by far. I know you are not concerned with that even slightly, but as a duelist generally speaking, I give credit where credit is due.

Regards
Jim
If you are good at something, never do it for free--Joker
  • #559
  • May 3, 2021 1:51am May 3, 2021 1:51am
Quoting jmn5611
I saw what you did there Peter. Your best series of posts by far. I know you are not concerned with that even slightly, but as a duelist generally speaking, I give credit where credit is due. Regards Jim


I just enjoy seeing people learn, everything else is just cream on top ......


Peter
Real Trading is not gambling.
  • #560
  • May 3, 2021 1:58am May 3, 2021 1:58am
You can't really make a good guess about price direction if you can't see what is happening to the price activity at some level .. Especially when it spins and churns in a very narrow range.
This is an old picture because I moved to stocks (better for what I found) and I don't use MT4 anymore

Attached Image (click to enlarge)
Click to Enlarge Name: 04-04-16-01.gif Size: 45 KB
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