Introducing myself and a couple of wonderings | Forex Factory

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Introducing myself and a couple of wonderings

  • #1
  • First Post: Jul 6, 2007 3:15pm Jul 6, 2007 3:15pm
Hello Gents,

About 3 months ago I was introduced to Mr.Forex and Mrs.Pips, quite an interesting couple.

Anyhooo, I've been studying up since then; reading books, online tutorials, some ideas of "Gurus" and this lovely forum. I have also gathered more than a fair share of different systems for all trading styles. Kind of information overload if you ask me, but I am just trying to get a little grasp of something.

Like everyone else I tried a demo account, but not for long, I was sure trading with real money, no matter how small, is a completely different beast, so I now have a little account open, and trying to see where this can go. I am trying to consciously, as much as possible, to maintain discipline and healthy trading mentality, which I am not sure what that really is but I formed an idea from my readings and it'll change as I learn. Sometimes I still throw away all Money Management principles sometimes though, following some impulses.

I know I am new and haven't stood the test of time yet, but something occured to me and I would definitely like to hear some seasoned traders' opinion on this.

I think the natural tendancy is to jump into systems too soon, before working on the basics. What I've found out from looking at historic charts and trying so many different systems is that the systems are there to get our attention when there is a possible trade, but the far more important issues to deciding the trade is price action, based on candles/bars, trendlines, channels, and support and resistance, these proved, to me at least, to be far more reliable than indicators and systems, which I think are important, but only secondary. Please let me know what you think

In adherence with that, I also believe that it is critical to have charts in two or even three different time frames, even for scalping.

Finally, I have tried searching all my resources for learning how to draw trendlines, channels, and support and resistance areas, but if you know of any good website/book/e-book for that kind of thing, or you have some advice of your own, I am very appreciative.

Kash
  • #2
  • Jul 7, 2007 4:12pm Jul 7, 2007 4:12pm
Quoting Kash
Hello Gents,

Like everyone else I tried a demo account, but not for long, I was sure trading with real money, no matter how small, is a completely different beast, so I now have a little account open, and trying to see where this can go. I am trying to consciously, as much as possible, to maintain discipline and healthy trading mentality, which I am not sure what that really is but I formed an idea from my readings and it'll change as I learn. Sometimes I still throw away all Money Management principles sometimes though, following some impulses.
Welcome to Forex, Kash. It sounds to me like you're going through a normal learning curve - albeit much faster then it took me.

Quoting Kash
I think the natural tendancy is to jump into systems too soon, before working on the basics. What I've found out from looking at historic charts and trying so many different systems is that the systems are there to get our attention when there is a possible trade, but the far more important issues to deciding the trade is price action, based on candles/bars, trendlines, channels, and support and resistance, these proved, to me at least, to be far more reliable than indicators and systems, which I think are important, but only secondary. Please let me know what you think
Here is what I think. The overriding factor in financial markets is uncertainty. There is no escaping it. Systems can help people only to some degree. However, their basic flaw is that they are wonderful predictors of the past, not the future. It is difficult to predict what the future will hold, and making predictions about future events with "indicators" is ridiculous.

Let me ask you this, would you make weather predictions in the same manner as you make trading predictions with "indicators"? We can plot any given day's open, high, low, and closing temperature, just like prices. In fact, the chart would probably look somewhat similar to what we use in trading. Would anyone think it would be prudent to make a 10-day forecast using moving averages of closing temperature or an RSI break of some arbitrary level? Of course not. Weather, as we all know, is subject to uncertainty - it is entirely unpredictable. It is a wonder to me that "market gurus" making predictions for financial markets are so highly regarded while meteorologists are seldom considered more than a laughing stock.

Quoting Kash
In adherence with that, I also believe that it is critical to have charts in two or even three different time frames, even for scalping.

Finally, I have tried searching all my resources for learning how to draw trendlines, channels, and support and resistance areas, but if you know of any good website/book/e-book for that kind of thing, or you have some advice of your own, I am very appreciative.

Kash
In order to begin drawing trendlines, channels, etc. a good place to start is Google and go through each and every web page you hit. I do not think I can post links to websites since I have under 100 posts here on Forex Factory, so I won't even try. Suffice to say, Google will be enough to get you going. The very best way, however, is through trial and error. MT4 gives you a huge advantage in that you can scroll back in time and start drawing lines. See how you do by drawing a channel and scrolling bar-by-bar forward in time (in the past). Don't get fooled by backtesting though, just because you're profitable in the past does not equate to being profitable in real-time.

Usually, I find that I learn best by doing. My advice is to draw some lines and see how you do. Expect to make mistakes and do not get overwhelmed by them. Mistakes are going to show you - better than anything else - how you can improve.

One last thing, stop breaking your rules. Trading rules and money management rules are going to keep you alive. If you're sticking with your rules you will know when and where you went wrong - your mistakes will be your professors. If you are breaking your rules, you are rolling dice. Improve your money management as well as your trading method/strategy and stick to your plan.

-=DAVE=-
  • #3
  • Jul 10, 2007 3:09pm Jul 10, 2007 3:09pm
Thanks Dave, that's good advice. I especially liked the weather forecasting analogy. Happy Tradin
  • #4
  • Jul 10, 2007 3:20pm Jul 10, 2007 3:20pm
Nice introduction and great recommendation.

Happy trading, both of you!
凹凸 only
  • #5
  • Jul 10, 2007 5:19pm Jul 10, 2007 5:19pm
Quoting Kash
Hello Gents,

Finally, I have tried searching all my resources for learning how to draw trendlines, channels, and support and resistance areas, but if you know of any good website/book/e-book for that kind of thing, or you have some advice of your own, I am very appreciative.

Kash

Here's a good place for a start, it's got answers to most things you'll need for general background info.
Next, if you haven't found it already try Jim's place. It'll make you look for tried and tested price patterns that have worked for many of us (PIN Bars in particular). There's a lot to read here, but don't skimp, the time will be well spent.
You're in the right place at FF, more + traders than you can shake a candle at
  • #6
  • Jul 11, 2007 1:39am Jul 11, 2007 1:39am
Merci Samuri

Peter, thanks, I love investopedia !

I have indeed read the james16 thread, and I absolutely think it's amazing. It's exactly the kind of thing I meant, understanding prices before jumping into systems. So far I'm through with 10 pages, the whole thread is way too long at around 200+ pages, do you recon I go through them all one by one ?
  • #7
  • Jul 11, 2007 3:03am Jul 11, 2007 3:03am
Quoting Kash
Merci Samuri

Peter, thanks, I love investopedia !

I have indeed read the james16 thread, and I absolutely think it's amazing. It's exactly the kind of thing I meant, understanding prices before jumping into systems. So far I'm through with 10 pages, the whole thread is way too long at around 200+ pages, do you recon I go through them all one by one ?
You can make it seem less work by listing 40 posts per page. This brings it down to 112 pages, so it doesn't seem so long.
I would advise you to ignore all the indicators Jim has on the early images and concentrate on the bar patterns he's talking about. You'll see that as time goes by his screens become gradually cleaner, and nowadays uses little more than the occasional fib and trend lines.
I know it seems like a lot of study, but you're 3 months into this game and there is over 20 years of personal grief distilled into this one thread.
To change the post count per page click on your User CP link and then scroll down to where it offers the option to change post count.
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  • #8
  • Jul 12, 2007 9:05pm Jul 12, 2007 9:05pm
Quoting PeterFM
I know it seems like a lot of study, but you're 3 months into this game and there is over 20 years of personal grief distilled into this one thread.
.

Your absolutely right mate, I should get readin

I also found this if anyone is interested about trendlines, it covers the very basics

http://www.trendlinebook.com/
  • #9
  • Jul 13, 2007 3:12am Jul 13, 2007 3:12am
Quoting Kash
Your absolutely right mate, I should get readin

I also found this if anyone is interested about trendlines, it covers the very basics

http://www.trendlinebook.com/
It's put so simply, even I can understand it all .
Couple this stuff with Jim's price action, and Price Pivot Zones (Jim's term for S/R), and you'll soon be there.
Keep trucking
  • #10
  • Jul 13, 2007 5:33am Jul 13, 2007 5:33am
Hi

Sorry to hijack this thread but can anyone tell me how to bookmark a thread within Forex Factory instead of using Internet Explorer.

Thanx

Paddy
Live Long and Prosper How GOOD are the NE Patriots ??
  • #11
  • Jul 13, 2007 5:48am Jul 13, 2007 5:48am
Quoting Paddy
Hi

Sorry to hijack this thread but can anyone tell me how to bookmark a thread within Forex Factory instead of using Internet Explorer.

Thanx

Paddy
There have been a lot of changes while I was away, so this might be possible now. But if you go to your profile you can subscribe to selected threads and FF will email you when there has been an update.
Only choice I know at the moment, sorry

Picked the wrong place for subscribing to thread, see image
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  • #12
  • Jul 13, 2007 6:19am Jul 13, 2007 6:19am
Thanx Peter, as usual you're there to lend a hand, you must spend most of your time helping newbies

Thanx

Paddy
Live Long and Prosper How GOOD are the NE Patriots ??
  • #13
  • Jul 13, 2007 6:57am Jul 13, 2007 6:57am
Quoting Paddy
Thanx Peter, as usual you're there to lend a hand, you must spend most of your time helping newbies

Thanx

Paddy
It wasn't long ago I was a real newbie, myself.
I've had such help from various guys around this site, one of the reasons I'm still in the game after 18 months, it would seem churlish to not pick up the baton and take some of the load off their shoulders.
I'm not that good yet on TA, and all the other in-depth stuff you see around here, but I can ease the path with simple stuff.
  • #14
  • Last Post: Aug 11, 2009 5:26pm Aug 11, 2009 5:26pm
kkkk
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