After years of trading on high time frames (Daily and Weekly), now is the time to move to small time frames (1 and 5 minutes).
I still have a job at the moment, and I need to continue working. I will trade in my remaining free time, trying to have consistent results and profits. If I can do that, I can seriously think about quitting my job and trading full time.
So I won't be making many trades at first, and not on a regular basis for now.
Over time I have learned that the system used to trade is not that important. The most important thing to be consistent are money and risk management. Discipline is essential to be successful in the long run.
Trading on such small time frames I will not have time to post entries and exits. This thread will be important to collect the charts and long-term analysis that I will then use as a reference for intraday trading.
To collect data and see if I can be consistent, I created a Trade Explorer. I called it Minerva, hoping it will inspire me. I'm starting with just 1000 euros, and I want to see how far it can go.
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Study
Here a list of some of the books I've read. My Technical Analysis is based on them
Technical Analysis and Stock MArket Profits - Richard W. Schabacker
Technical Analysis of the Financial Markets - John J. Murphy
Technical Analysis of Stock Trends - Roberts D. Edwards, John Magee
Profits in the stock market - H. M. Gartley
Study Guide for Technical Analysis Explained - Martin J. Pringle
Japanese candlestick charting techniques - Steve Nison
Trade what you see - Larry Pesavento
The Harmonic Trader - Scott Carney
Harmonic Trading Volume 1 - Volume 2 - Volume 3 - Scott Carney
Elliott Wave Principle - Robert Prechter, Alfred John Frost
Elliott Wave Principle - Robert Balan
Encyclopedia of Chart Patterns - Thomas N. Bulkowski
RSI - The Complete Guide - John Hayden
But the books I enjoyed the most were those where there wasn't even a chart inside:
Trading in the Zone - Mark Douglas
The Discipined Trader - Mark Dougles
Actually there are other books that I've read too, maybe less important, or maybe I didn't take them into consideration, I don't remember them all. I'll update the list if there's any news
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Trading style
At the moment I base my trading method mainly on Price Action, structure (classic patterns and HH, LL, LH, HL) and candlestick patterns, in relation to support and resistance zones. Sometimes I also use other tools such as trendlines, Fibonacci levels and Pivot Points.
I do not use indicators, such as moving averages and RSI, MACD and others. I am not against them, but they are just a derivative of the price. Reading the price is enough for me. In my opinion, indicators have the advantage of giving you a quicker idea of where the market is at that moment. But if I am able to get the same information by looking at the naked chart, for me it is fine like this at the moment.
----------------------------------------------------------------
Targets
I thought that to be a full-time trader I had to focus on having consistent earnings.
I should not focus on excessively speculative trading, which gives me high percentage earnings in a short time.
The important thing is to protect the capital. Only risk a small percentage for each trade, usually 2%, but I can go up to 4%. Focus mainly on the possible loss rather than the possible gain.
Enter the market only when there is actually an opportunity. If I don't see a clear opportunity, it's better to stay out, even if this means sitting in front of the monitor doing nothing for hours, waiting for a concrete opportunity to present itself.
Leveraged and speculative trading tools can offer high earnings in a short time....but also high losses. My goal is to close the trade and take profit when the goal has been reached, with modest earnings. I can let the trade run only if a high gain presents itself, with low risk, and only after having protected the capital with a positive stop loss.
I have to be satisfied with what the market gives me. I don't have to ask for anything more.
At the moment I think that if I am able to earn at least 5% of the capital every week I can consider myself satisfied. I know that there will be days closed in profit, but also in loss. The important thing is not to lose much and to earn more.
5% per week is a good starting point. Over time the capital available will increase and I will also be able to increase the size of every trade.
I will not withdraw anything at the beginning from this experiment that begins with 1000 Euro. But later, if the experiment goes well, and I have earned enough, I will start to withdraw a percentage to be decided.
----------------------------------------------------------------
Markets
I don't set limits on the markets I can trade, but they must have minimum requirements:
- Good liquidity
- Low spreads
- A reasonable ADR
For this reason, at the moment I think it is easier to focus on indices (the broker I use has CFDs on indices with good spreads) and on the most important currency pairs.
I have always liked minor or exotic currency pairs, but if they have too high commissions that take away profits from those who trade small time frames, then they are no good. They can be traded without problems on higher time frames.
----------------------------------------------------------------
From Wikipedia:
Minerva is the Roman goddess of wisdom, justice, law, victory, and the sponsor of arts, trade, and strategy. She is also a goddess of warfare, though with a focus on strategic warfare, rather than the violence of gods such as Mars.
I still have a job at the moment, and I need to continue working. I will trade in my remaining free time, trying to have consistent results and profits. If I can do that, I can seriously think about quitting my job and trading full time.
So I won't be making many trades at first, and not on a regular basis for now.
Over time I have learned that the system used to trade is not that important. The most important thing to be consistent are money and risk management. Discipline is essential to be successful in the long run.
Trading on such small time frames I will not have time to post entries and exits. This thread will be important to collect the charts and long-term analysis that I will then use as a reference for intraday trading.
To collect data and see if I can be consistent, I created a Trade Explorer. I called it Minerva, hoping it will inspire me. I'm starting with just 1000 euros, and I want to see how far it can go.
--------------------------------------------------------------
Study
Here a list of some of the books I've read. My Technical Analysis is based on them
Technical Analysis and Stock MArket Profits - Richard W. Schabacker
Technical Analysis of the Financial Markets - John J. Murphy
Technical Analysis of Stock Trends - Roberts D. Edwards, John Magee
Profits in the stock market - H. M. Gartley
Study Guide for Technical Analysis Explained - Martin J. Pringle
Japanese candlestick charting techniques - Steve Nison
Trade what you see - Larry Pesavento
The Harmonic Trader - Scott Carney
Harmonic Trading Volume 1 - Volume 2 - Volume 3 - Scott Carney
Elliott Wave Principle - Robert Prechter, Alfred John Frost
Elliott Wave Principle - Robert Balan
Encyclopedia of Chart Patterns - Thomas N. Bulkowski
RSI - The Complete Guide - John Hayden
But the books I enjoyed the most were those where there wasn't even a chart inside:
Trading in the Zone - Mark Douglas
The Discipined Trader - Mark Dougles
Actually there are other books that I've read too, maybe less important, or maybe I didn't take them into consideration, I don't remember them all. I'll update the list if there's any news
----------------------------------------------------------------------------
Trading style
At the moment I base my trading method mainly on Price Action, structure (classic patterns and HH, LL, LH, HL) and candlestick patterns, in relation to support and resistance zones. Sometimes I also use other tools such as trendlines, Fibonacci levels and Pivot Points.
I do not use indicators, such as moving averages and RSI, MACD and others. I am not against them, but they are just a derivative of the price. Reading the price is enough for me. In my opinion, indicators have the advantage of giving you a quicker idea of where the market is at that moment. But if I am able to get the same information by looking at the naked chart, for me it is fine like this at the moment.
----------------------------------------------------------------
Targets
I thought that to be a full-time trader I had to focus on having consistent earnings.
I should not focus on excessively speculative trading, which gives me high percentage earnings in a short time.
The important thing is to protect the capital. Only risk a small percentage for each trade, usually 2%, but I can go up to 4%. Focus mainly on the possible loss rather than the possible gain.
Enter the market only when there is actually an opportunity. If I don't see a clear opportunity, it's better to stay out, even if this means sitting in front of the monitor doing nothing for hours, waiting for a concrete opportunity to present itself.
Leveraged and speculative trading tools can offer high earnings in a short time....but also high losses. My goal is to close the trade and take profit when the goal has been reached, with modest earnings. I can let the trade run only if a high gain presents itself, with low risk, and only after having protected the capital with a positive stop loss.
I have to be satisfied with what the market gives me. I don't have to ask for anything more.
At the moment I think that if I am able to earn at least 5% of the capital every week I can consider myself satisfied. I know that there will be days closed in profit, but also in loss. The important thing is not to lose much and to earn more.
5% per week is a good starting point. Over time the capital available will increase and I will also be able to increase the size of every trade.
I will not withdraw anything at the beginning from this experiment that begins with 1000 Euro. But later, if the experiment goes well, and I have earned enough, I will start to withdraw a percentage to be decided.
----------------------------------------------------------------
Markets
I don't set limits on the markets I can trade, but they must have minimum requirements:
- Good liquidity
- Low spreads
- A reasonable ADR
For this reason, at the moment I think it is easier to focus on indices (the broker I use has CFDs on indices with good spreads) and on the most important currency pairs.
I have always liked minor or exotic currency pairs, but if they have too high commissions that take away profits from those who trade small time frames, then they are no good. They can be traded without problems on higher time frames.
----------------------------------------------------------------
From Wikipedia:
Minerva is the Roman goddess of wisdom, justice, law, victory, and the sponsor of arts, trade, and strategy. She is also a goddess of warfare, though with a focus on strategic warfare, rather than the violence of gods such as Mars.
