Trading Made Simple

in his book, Dr Alexander Elder use the MACD.

you can use the MACD to replicate the TDI.

MACD setting is (2,13,7) work the same as original TDI RSI green price line / trade signal line.

But, Big E' TDI version in Post#25, (the original version by Dean Malone 2006) has something extra which people say it is flawed TDI but others knew it was intended to be.

Oh,I was not aware there would be a G7 summit. Its not on the forex factory calendar. Okay i will try and keep up. Thank you Sir.

Okay Sir, thank you very much, its interesting.....will check it up. Thanks.

for Multi analysis the x4 or x6 rules is the best

I assure you, 4x or 6x are NOT the "best" multipliers. Have you experimented with a wide variety of multipliers to arrive at your conclusion?

Perhaps you have tried 4x or 6x and found them "best" of other multipliers that you have tried. Or perhaps you simply read that this is what an "expert" found, so you simply used it.

The global forex market is the largest financial market in the world1 and the potential to reap profits in the arena entices foreign-exchange traders of all levels: from greenhorns just learning about financial markets to well-seasoned professionals with years of trading experience. Because access to the market is easy—with round-the-clock sessions, significant leverage, and relatively low costs—many forex traders quickly enter the market, but then quickly exit after experiencing losses and setbacks. Here are 10 tips to help aspiring traders avoid losing money and stay in the game in the competitive world of forex trading.
Do Your Homework
Just because forex is easy to get into doesn’t mean due diligence should be avoided. Learning about forex is integral to a trader’s success. While the majority of trading knowledge comes from live trading and experience, a trader should learn everything about the forex markets, including the geopolitical and economic factors that affect a trader’s preferred currencies.
KEY TAKEAWAYS

1. In order to avoid losing money in foreign exchange, do your homework and look for a reputable broker.
2. Use a practice account before you go live and be sure to keep analysis techniques to a minimum in order for them to be effective.
3. It's important to use proper money management techniques and to start small when you go live.
4. Control the amount of leverage and keep a trading journal.
5. Be sure to understand the tax implications and treat your trading as a business.

Homework is an ongoing effort as traders need to be prepared to adapt to changing market conditions, regulations, and world events. Part of this research process involves developing a trading plan—a systematic method for screening and evaluating investments, determining the amount of risk that is or should be taken, and formulating short-term and long-term investment objectives.

Find a Reputable Broker
The forex industry has much less oversight than other markets, so it is possible to end up doing business with a less-than-reputable forex broker. Due to concerns about the safety of deposits and the overall integrity of a broker, forex traders should only open an account with a firm that is a member of the National Futures Association (NFA) and is registered with the Commodity Futures Trading Commission (CFTC) as a futures commission merchant.2

 3 Each country outside the United States has its own regulatory body with which legitimate forex brokers should be registered.

Traders should also research each broker’s account offerings, including leverage amounts, commissions and spreads, initial deposits, and account funding and withdrawal policies. A helpful customer service representative should have the information and will be able to answer any questions regarding the firm’s services and policies.
Use a Practice Account
Nearly all trading platforms come with a practice account, sometimes called a simulated account or demo account, which allow traders to place hypothetical trades without a funded account. Perhaps the most important benefit of a practice account is that it allows a trader to become adept at order-entry techniques.
Few things are as damaging to a trading account (and a trader’s confidence) as pushing the wrong button when opening or exiting a position. It is not uncommon, for example, for a new trader to accidentally add to a losing position instead of closing the trade. Multiple errors in order entry can lead to large, unprotected losing trades. Aside from the devastating financial implications, making trading mistakes is incredibly stressful. Practice makes perfect. Experiment with order entries before placing real money on the line.
$5 trillion
The average daily amount of trading in the global forex market.1
Keep Charts Clean
Once a forex trader opens an account, it may be tempting to take advantage of all the technical analysis tools offered by the trading platform. While many of these indicators are well-suited to the forex markets, it is important to remember to keep analysis techniques to a minimum in order for them to be effective. Using multiples of the same types of indicators, such as two volatility indicators or two oscillators, for example, can become redundant and can even give opposing signals. This should be avoided.
Any analysis technique that is not regularly used to enhance trading performance should be removed from the chart. In addition to the tools that are applied to the chart, pay attention to the overall look of the workspace. The chosen colors, fonts, and types of price bars (line, candle bar, range bar, etc.) should create an easy-to-read-and-interpret chart, allowing the trader to respond more effectively to changing market conditions.
Protect Your Trading Account
While there is much focus on making money in forex trading, it is important to learn how to avoid losing money. Proper money management techniques are an integral part of the process. Many veteran traders would agree that one can enter a position at any price and still make money—it’s how one gets out of the trade that matters.
Part of this is knowing when to accept your losses and move on. Always using a protective stop loss—a strategy designed to protect existing gains or thwart further losses by means of a stop-loss order or limit order—is an effective way to make sure that losses remain reasonable. Traders can also consider using a maximum daily loss amount beyond which all positions would be closed and no new trades initiated until the next trading session.
While traders should have plans to limit losses, it is equally essential to protect profits. Money management techniques such as utilizing trailing stops (a stop order that can be set at a defined percentage away from a security’s current market price) can help preserve winnings while still giving a trade room to grow.
Start Small When Going Live
Once a trader has done their homework, spent time with a practice account, and has a trading plan in place, it may be time to go live—that is, start trading with real money at stake. No amount of practice trading can exactly simulate real trading. As such, it is vital to start small when going live.
Factors like emotions and slippage (the difference between the expected price of a trade and the price at which the trade is actually executed) cannot be fully understood and accounted for until trading live. Additionally, a trading plan that performed like a champ in backtesting results or practice trading could, in reality, fail miserably when applied to a live market. By starting small, a trader can evaluate their trading plan and emotions, and gain more practice in executing precise order entries—without risking the entire trading account in the process.
Use Reasonable Leverage
Forex trading is unique in the amount of leverage that is afforded to its participants. One reason forex appeals to active traders is the opportunity to make potentially large profits with a very small investment—sometimes as little as $50. Properly used, leverage does provide the potential for growth. But leverage can just as easily amplify losses.
A trader can control the amount of leverage used by basing position size on the account balance. For example, if a trader has $10,000 in a forex account, a $100,000 position (one standard lot) would utilize 10:1 leverage. While the trader could open a much larger position if they were to maximize leverage, a smaller position will limit risk.
Keep Good Records
A trading journal is an effective way to learn from both losses and successes in forex trading. Keeping a record of trading activity containing dates, instruments, profits, losses, and, perhaps most important, the trader’s own performance and emotions can be incredibly beneficial to growing as a successful trader. When periodically reviewed, a trading journal provides important feedback that makes learning possible. Einstein once said that “insanity is doing the same thing over and over and expecting different results.”4 Without a trading journal and good record keeping, traders are likely to continue making the same mistakes, minimizing their chances of becoming profitable and successful traders.
Know Tax Impact and Treatment
It is important to understand the tax implications and treatment of forex trading activity in order to be prepared at tax time. Consulting with a qualified accountant or tax specialist can help avoid any surprises and can help individuals take advantage of various tax laws, such as marked-to-market accounting (recording the value of an asset to reflect its current market levels).5

Since tax laws change regularly, it is prudent to develop a relationship with a trusted and reliable professional who can guide and manage all tax-related matters.
Treat Trading as a Business
It is essential to treat forex trading as a business and to remember that individual wins and losses don’t matter in the short run. It is how the trading business performs over time that is important. As such, traders should try to avoid becoming overly emotional about either wins or losses, and treat each as just another day at the office.
As with any business, forex trading incurs expenses, losses, taxes, risk and uncertainty. Also, just as small businesses rarely become successful overnight, neither do most forex traders. Planning, setting realistic goals, staying organized, and learning from both successes and failures will help ensure a long, successful career as a forex trader.
The Bottom Line
The worldwide forex market is attractive to many traders because of the low account requirements, round-the-clock trading, and access to high amounts of leverage. When approached as a business, forex trading can be profitable and rewarding, but reaching a level of success is extremely challenging and can take a long time. Traders can improve their odds by taking steps to avoid losses: doing research, not over-leveraging positions, using sound money management techniques, and approaching forex trading as a business.

https://www.investopedia.com/trading...g-money-forex/

What is Trading Psychology?
Trading psychology refers to the emotions and mental state that help to dictate success or failure in trading securities. Trading psychology represents various aspects of an individual’s character and behaviors that influence their trading actions. Trading psychology can be as important as other attributes such as knowledge, experience, and skill in determining trading success.
Discipline and risk-taking are two of the most critical aspects of trading psychology since a trader’s implementation of these aspects is critical to the success of his or her trading plan. While fear and greed are the two most commonly known emotions associated with trading psychology, other emotions that drive trading behavior are hope and regret.
KEY TAKEAWAYS

1. Trading psychology is the emotional component of an investor's decision-making process which may help explain why some decisions appear more rational than others.
2. Trading psychology is characterized primarily as the influence of both greed and fear.
3. Greed drives decisions that appear to accept too much risk.
4. Fear drives decisions that appear to avoid risk and generate too little return.
5. Behavioral finance has documented several psychological biases and errors involved when making trading or investment decisions.

Understanding Trading Psychology
Trading psychology can be associated with a few specific emotions and behaviors that are often catalysts for market trading. Conventional characterizations of emotionally-driven behavior in markets ascribe most emotional trading to either greed or fear.
Greed can be thought of as an excessive desire for wealth, so excessive that it clouds rationality and judgment at times. Thus, this characterization of the greed-inspired investor or irrational trading assumes that the greed emotion can lead traders towards a variety of suboptimal behaviors. This may include making high-risk trades, buying shares of an untested company or technology just because it is going up in price rapidly, or buying shares without researching the underlying investment.
Additionally, greed may inspire investors to stay in profitable trades longer than is advisable in an effort to squeeze out extra profits from it or to take on large speculative positions. Greed is most apparent in the final phase of bull markets when speculation runs rampant and investors throw caution to the wind.
Conversely, fear causes traders to close out positions prematurely or to refrain from taking on risk because of concern about large losses. Fear is palpable during bear markets, and it is a potent emotion that can cause traders and investors to act irrationally in their haste to exit the market. Fear often morphs into panic, which generally causes significant selloffs in the market from panic selling.
Regret may cause a trader to get into a trade after initially missing out on it because the stock moved too fast. This is a violation of trading discipline and often results in direct losses from security prices that are falling from peak highs.
Technical Analysis
Trading psychology is often important for technical analysts relying on charting techniques to drive their trade decisions. Security charting can provide a broad array of insights on a security’s movement. While technical analysis and charting techniques can be helpful in spotting trends for buying and selling opportunities, it requires an understanding and intuition for market movements which is derived from an investor’s trading psychology.
There are numerous instances in technical charting where a trader must rely not only on the chart’s insight but also their own knowledge of the security that they're following and their intuition for how broader factors are affecting the market. Traders with keen attention to comprehensive security price influences, discipline, and confidence show a balanced trading psychology that typically contributes to profitable success.
Behavioral Finance
Part of trading psychology is to understand why individuals make irrational decisions in the market or other money matters. Behavioral finance is a subfield of behavioral economics that proposes psychological influences and biases that affect the financial behaviors of investors and financial practitioners. Moreover, influences and biases can be the source of explanation of all types of market anomalies and specifically market anomalies in the stock market, such as severe rises or falls in stock price.
Behavioral finance typically encompasses the concepts of:

1. Mental accounting: Mental accounting refers to the propensity for people to allocate money for specific purposes.
2. Herd behavior: Herd behavior states that people tend to mimic the financial behaviors of the majority of the herd. Herding is notorious in the stock market as the cause behind dramatic rallies and sell-offs.
3. Emotional gap: The emotional gap refers to decision-making based on extreme emotions or emotional strains such as anxiety, anger, fear, or excitement. Oftentimes, emotions are a key reason why people do not make rational choices.
4. Anchoring: Anchoring refers to attaching a spending level to a certain reference. Examples may include spending consistently based on a budget level or rationalizing spending based on different satisfaction utilities.
5. Self-attribution: Self-attribution refers to a tendency to make choices based on overconfidence in one's own knowledge or skill. Self-attribution usually stems from an intrinsic knack in a particular area. Within this category, individuals tend to rank their knowledge higher than others, even when it objectively falls short.

Example: Loss Aversion
Loss aversion is a common psychological error that occurs when investors place a greater weighting on the concern for losses than the pleasure from market gains. In other words, they're far more likely to try to assign a higher priority to avoid losses than making investment gains. As a result, some investors might want a higher payout to compensate for losses. If the high payout isn't likely, they might try to avoid losses altogether even if the investment's risk is acceptable from a rational standpoint.
Applying loss aversion to investing, the so-called disposition effect occurs when investors sell their winners and hang onto their losers. Investors' thinking is that they want to realize gains quickly. However, when an investment is losing money, they'll hold onto it because they want to get back to even or their initial price. Investors tend to admit they are correct about an investment quickly (when there's a gain). However, investors are reluctant to admit when they made an investment mistake (when there's a loss). The flaw in disposition bias is that the performance of the investment is often tied to the entry price for the investor. In other words, investors gauge the performance of their investment based on their individual entry price disregarding fundamentals or attributes of the investment that may have changed.

https://www.investopedia.com/terms/t...psychology.asp

Can someone explain me the difference of the synergy system by Dean Malone and TMS?

Food for thought ...

I found this on another thread
Typical wrong thinking about indicators. Properly coded indicators never fail, but the USER of the indicator can fail in many ways while using the indicator. And because humans are averse to making mistakes, it is difficult to recognize and admit to one's failures, especially when it is so convenient to shift the blame to the indicator.

What is Self-Enhancement?
In behavioral finance, self-enhancement is a common emotional bias. Also referred to as the self-enhancing bias, it is the tendency for individuals to take all the credit for their successes while giving little or no credit to other individuals or external factors. People may emphasize their positive attributes while at the same time highlighting negatives associated with others. This can impact investors negatively as they become overconfident about their abilities; they will attribute past success to their own skill and reject the role of timing or other factors in those outcomes.

Understanding Self-Enhancement
People who have achieved success, in the financial markets or otherwise, have the tendency to attribute much of that success to their hard-work, skills, intelligence or creativity. Luck and other outside influences are largely discounted, lest they diminish the credit due to their own explicit abilities. When a person seeks to self-enhance, they may conveniently discount important factors. For example, investors who are self-enhancing may attribute their portfolio returns largely to their stock selection skills rather than a bull market occurring over the same period of time.

Examples of Self-Enhancement
A common example of self-enhancement is the finding that most people rate themselves "above average" when asked to rate their abilities and rate others as "below average." Most people rate themselves above average at driving a car while rating other drivers below average. Of course, by definition, it is impossible for everybody to be above average. People also tend to rate their personal attributes such as attractiveness, intelligence, leadership ability and patience as above average.
Self-enhancement can occur in many different situations and under many different guises. The general motive of self-enhancement can have many different underlying explanations, each of which becomes more or less dominant depending on the situation. In a financial context, self-enhancement can serve as something of a call-option. Whereby, an individual can selectively exercise the call-option to attribute self-enhancing outcomes to their own design while letting the option expire under scenarios one wouldn't want to take credit for.

The Dangers of Self-Enhancement for Investors
As mentioned, self-enhancement leads to overconfidence and overconfidence of any sort puts investors at a disadvantage in the market. Investors can quickly go from discounting information that diminishes their ability to discounting market data that goes against their investment thesis. It is also important for investors to improve on how they make decisions.
If investors attribute all the losses to the fickle market and the gains to their skills, then they will never improve their understanding of how the market actually works and how to profit within it.

CONGRATULATIONS Big E ...

your thread hit 6,000 pages today June 06, 2021.

Hope you look down and see the amount of traffic and you will smile upon us.

Here in this thread some people think they are expert, they claim many things. They will suggest you to trade 20 different time frame.
some of them claim they are TDI expert. All you need is TDI to become Rich. Yet lose their account with in 3 month.

All are live example of Self-Enhancement.

A common example of self-enhancement is the finding that most people rate themselves "above average" when asked to rate their abilities and rate others as "below average."

So I keep them on my ignore list, You should do the same for trading success.
for noise free learning environment you should keep them on your ignore list.

Since Oct 2008 till Oct 2011, I have counted a total 89 differences between Dean Malone's first Synergy trading model and Big E' Trading Made Simple 5-Method .

No.1 difference is Post#51 and Post#1164.

I shall leave it to the other members to list theirs and contribute ... No.2 to No.89.

Yes Dr Dave you are quite right. Sorry if i might have given the impression that those are the very best. What i meant is that after testing them i found them very useful and the ensured i made profits. But different strokes for different folks. And what may work for me may not work for another trader! Sure Sir I am aqare of this and we should all. Some like a lot action, complexities and a lot of analysis for them to pull the trigger and they make pips. Others like some of us like it slow, less complexity and very simple. But we all are aiming to capture moments in the market when moves are occurring. So please as much as it goes we are all of different orientations psychologically speaking and we are all right in so far as we understand how the market moves and adopt a strategy that ensures we trade like Pros should trade. Thank you Sir for the correction. I hope it helps us all.

Here in this thread some people think they are expert, they claim many things.

And of course, when you make your judgment and some of the people actually ARE experts, people that follow the above advice will throw out the baby with the bath water.

They will create controversy for getting attention. They will never give you any answer.

Hi emmanuel are you going to answer it. If you don't answer it I will not answer it. I don't have any interest to teach this kind of Attention seeker.

I want to tell you that his concept is not write again. He has many misconception it is one of them.
He don't even read Well documented MTF concept. Before understand the theory and expert opinion about the MTF he started his MTF concept in the FF.
He himself fail with MTF concept and he don't trade real account he told me, He also told me he work for a trading company.

Hasib, you are too funny! Thanks for continuing to keep this thread as the place for Daily Laughs instead of for serious trading discussions! I knew you would not let down the readers!

And by the way, your post above is a GREAT example of ...

Plus

Oh, and I thought that I am on your Ignore list. So how can you keep reading my posts? Maybe because they have so much information for FREE that is of value to you that you don't want to miss a single one?

Few ideas about MTF. If any one interested I will share some material.
I am sure after reading those material you will understand, DrDave is full of BS.

As of the “Extra” part. Two things you should know before deciding whether you would believe it is intentional or not.

in short, Emmanuel was trying to deceive you that the repainting feature of the TDI Green Red (just so you know, TDI itself is not a repainting indicator). the reason behind? I don’t know but definitely help you to profit is not on the list.

1. On MT4, custom indicators “repaint” is not something new. It is an infamous issue of MT4 for custom indicators, if not coded with twist, to have wrong calculations especially at new candle start. TDI Green Red on #25 is coded in simple logic, that did not overcome the logic of MT4. So if you open a chart for live market analysis and new candles form, you will see funny values and curves.


2. BigE’s trading routine actually solved the aforementioned issue by refreshing his chart WHEN NO TRADES ARE OPEN.
#11
If I see a set up... green just crossing red I'll take the trade, turn off the puter and go to bed. Four hours later (1:50am) my alarm goes off for the new candles and I take a peek...

So basically each time BigE did pre-trade market analysis, he was looking at the correct TDI Green and Red lines

My solutions are two approaches which you can see from my charts. 1) Use built-in RSI and MA functions to build the TDI green/red lines. Built-in indis give correct values and no “repainting” issue. 2) I also use TradingView for market analysis. The coding logic of TV is better and have no issue for custom indi to handle calculations at first tick of new candle.

hope it helps

I would question,

1. Do you have the choice to pick timeframes apart from M15-30/H1/H4/D1 on your trading platform? I mean, maybe simply you have no choice to look at H2/3, 45min charts (Trading View has them), so no chance to see timeframe difference not at 4-6x

2. Have you done any parallel test to find out if 4x time frame difference is indeed better than 2x or so?

I myself do not limit to 4-6x in MTF. I sometimes do top down analysis with H1 and trade with m1/5, skipping all timeframes in between, that is 12-60x. They can give good trade results too. I don’t have a conclusion cause I haven’t considered this as part of my rules yet.

trade well

Hi Hasib,

I totally agree with the last point of what you shared

Thank you for confirming that Emmanuel has been repeating the BS of claiming low TF as Craps. The simple answer to this hateful statement is because he is crap trader at LTF.

BigE mentioned multiple times in TMS 5-method in multiple threads, that the strategy works for all timeframes

you and I can trade LTF like m1 to m15. Good.

trade well