Money management in trading - the stupid way and the right way 22 replies
Is the martingale way the only way in Forex? 34 replies
Right Wrong Right Wrong Right Wrong 13 replies
DislikedI always see people saying "follow the trend".. like it was so easy...
Maybe I'm not gifted or something, but I am never able to realize which is the trend in one chart.. When I think that the trend is one, I always lose.
Can someone give me some tips on how to identify the trend in a chart?Ignored
DislikedHoly crap, do I disagree with that. My whole system is designed around 3 simple moving averages and price action around them...Ignored
DislikedI always see people saying "follow the trend".. like it was so easy...
Maybe I'm not gifted or something, but I am never able to realize which is the trend in one chart.. When I think that the trend is one, I always lose.
Can someone give me some tips on how to identify the trend in a chart?Ignored
DislikedI like your simple direct approach.
I'm working on something similar.
I like fibs, but I had about decided they were arbitrary and subjective.
Reason being there are always several swing lows/highs to base them from. You can always find one that will show an acceptable retrace.
Do you have any guidelines about choosing important highs or lows?
Thank youIgnored
DislikedAndimozza,
You are fortunate to have such excellent replies to your post. If you keep things simple you'll save a load of time and $.
I began by learning trendlines and fib levels and was seein some success early on. Then I started learning indicators and never had good results. Then my pattern evolved something like Peter's. After two years I went back to my simple ways, except now armed with a better grasp of MM and what goes on beyond the trading platform--all of which can be learned here.
Now I'm seeing success again using simple methods. I hope simplicity will work for you as well. It's a lot less exhausting.
All the beestIgnored
DislikedI agree w/ Mr Demark
i personally have loose interest on indic
cuz they all (like Mr Demark said) lag.......
i'm now in a stage of learning how to trade without using those fancy indic
i don't know wether this is a good turning point or not
well maybe some MA's will do good also (like peterFM use it) but definetely not a crossover combine w/ stoch and bla2x.......
but i think it will take me some more time to fully understand about the retracement, trend continuation base on price action, breakout (mouteki) etc. Maybe i lack the experience because many qualified trader here has trade more than a year while i only known and trade forex less then 6 months... I'm still a newbie compare to all of you
Price Action for me is something new, I've read James16 thread and now i'm trying really hard to understand P.A but i found it difficult for me to identify P.A (regarding the subjectivity i had)
any opinion on how to improve my understanding on these ??
or do i have to experience it by myself ?? learn from my mistake ?
while for fibo
I'll try to use it w/ Mr. Demark approach
seem simple for me....
o yeah one more thing
i really.. really... really (multiply it by 100 times) appreciate what u guys post in this thread
it really help me to gain confidence on how to trade without using those lagging indicIgnored
DislikedHi PeterFM
yupp i can see clearly that is not an MA crossover method
btw did u use PA as part of your trade ?
thxIgnored
All I'm asking you to do is take these ideas on-board, along with other stuff you feel suits you from guys like Mr. demark and try and find a way that sits comfortably with your own risk style, and personality.
It all comes down to screen time with a set of ideas and getting to a point where you say..'I think this works, looking back, now let's see if it works going forward'.
This sort of method can't be backtested, I don't think, simply because it's too subjective and has to become a part of you. Only by giving it time will you know what works, and what doesn't. Only with time will you be able to keep faith with a trade that you felt was good at the time of entry.
I stay with trades far longer than many here, and it may be that I will get punished sometime soon, but I'm now sure that I have the basis of a sound methodology, and all I need to do is refine it.
Two examples of what I mean:
If I'd kept faith on the 2nd trade I'd be smiling and there would have been one less loss to shown on last month's account.
All part of the learning curve!
DislikedI wasn't introduced to FX until early 2006, and lost a lot (well it seemed a lot for me at the time) of money until I found this place.
I put this image up, not as an actual trade, but an example of the sort of stuff I've been doing since the start of 2007.
The idea was to set you on a path that you could take that I know has a better than average chance of protecting your account while you're learning. It's NOT the only way, but it works for me. Mr demark uses Fibs, I don't at the moment simply because what I'm doing works for me and the less I have on screen the easier it is for me to make decisions.
Regarding PA, if you look at that chart there are several PA opportunities that stand out.
- 4 IBs after the 1st touch on the 100EMA
- The last touch of the 100EMA turned into a reasonable Pin Bar (others might not agree)
- As both EMAs are rising I would have played any of these long, probably TP around the Resistance area (shown by the Red Line)
All I'm asking you to do is take these ideas on-board, along with other stuff you feel suits you from guys like Mr. demark and try and find a way that sits comfortably with your own risk style, and personality.
It all comes down to screen time with a set of ideas and getting to a point where you say..'I think this works, looking back, now let's see if it works going forward'.
This sort of method can't be backtested, I don't think, simply because it's too subjective and has to become a part of you. Only by giving it time will you know what works, and what doesn't. Only with time will you be able to keep faith with a trade that you felt was good at the time of entry.
I stay with trades far longer than many here, and it may be that I will get punished sometime soon, but I'm now sure that I have the basis of a sound methodology, and all I need to do is refine it.
Two examples of what I mean:
- 5th May went Long NZDUSD @ 0.7373 - still running. It went as low as 0.7237 but now 0.7531
- 23rd May went Short EURAUD @ 1.6344 - chickened out at 1.6476 but now at 1.6117
If I'd kept faith on the 2nd trade I'd be smiling and there would have been one less loss to shown on last month's account.
All part of the learning curve!Ignored