Technical Analysis Fallacy

Quoting MickD

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On capitalisation - I don't think the amount of capital is as important as MM, i.e. I don't think you need at least 50k to enter especially when you now have mini/micro accounts to allow you to divide your capital sufficiently.
Sure, you may not be able to make a living from it but the math is the same and is scalable to what your pocket can allow.
Of course, trading with as little as $10 is a big ask and margin/leverage also needs to be taken into consideration but that's all part of your calculations.

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Quoting Northpro

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Leighsww also mentioned that she is working on a rescue/attack sequence as well

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Quoting Daniel

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What is FTI?

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Quoting HapaSasa

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Undercapitalisation is certainly restrictive but thereagain sufficient capitalisation is no guarantee of success, so slowly slowly catch the monkey.

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Quoting alexfot

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I'm sure skills and MM are much more important than capitalization is. One can blow out any size of capital without skills and proper MM.
Alex

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Originally Posted by HapaSasa
Undercapitalisation is certainly restrictive but thereagain sufficient capitalisation is no guarantee of success, so slowly slowly catch the monkey.

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Posted by MickD
On capitalisation - I don't think the amount of capital is as important as MM, i.e. I don't think you need at least 50k to enter especially when you now have mini/micro accounts to allow you to divide your capital sufficiently.
Sure, you may not be able to make a living from it but the math is the same and is scalable to what your pocket can allow.

Quoting Northpro

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Yes I agree MM and Trading skills are very important, but think about it. There you are testing your new system out and sharpening your skills for what feels like forever...the only thing is ..you are under capitalized..oh but thats' ok, you just get a super mini account....OK you are all set up then. All you have to do is babysit this trade here for the next 7 hours and whammo...buddabing, you make a whopping $12. I know you are starting somewhere, but don't tell me that psychology won't enter the picture when you "work" all day for a very small return, because it does, and thats when you start taking bigger risks to make the chart time worth while, which inevitably catches up to you...one bad move and the small account suffers big, and remember when you lose 50% it takes 100% to break even.

That's why I stipulated "for a living" and like I said we all have different objectives. However, I think a lot of us here subscribe to the "more is better" philosophy. Proper Capitalization sure makes the MM easier, for the simple fact that the "YOU" psychology is not over stressed, due to the simple fact that we are exposing a smaller portion or our overall account, but still making a difference to the book value in a worthwhile manner.

Just my opinion...Ive already been down the under capitalized road and it is a tough grind. But it can be done.

NP

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Quoting fti

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The Heros March. (Once Upon a time.)

regards

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Quoting mijamoto

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Any English Translations?

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Quoting amenlo9

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like this song very much
how to be a man like ---> http://en.wikipedia.org/wiki/Wong_Fei_Hung

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Quoting alexfot

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I'm sure skills and MM are much more important than capitalization is. One can blow out any size of capital without skills and proper MM.
Alex

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Quoting Northpro

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Hi all,

Here are my quick view of charts today..
NP

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Quoting leighsww

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Northpro ... I use my progression for attacks based on what I can afford if the 2nd attack troop (1 lot) gets into trouble.

In the early stage of the battle, there's no telling/guarantees if the entry just after scout will continue to head in the right direction, so I add troops slowly as the dance becomes more confident that the PA is moving in my direction.

If I put in 1, 3 progression, I'll be in big trouble should the PA move against me significantly, cause I can't rescue 4 troops easily with my capitalization. By the time I'm adding 2 more troops (1, 1, 2 progression), my basis would be at a comfy place that I have room to exit (or at least lighten the load, cause I normally always keep Scout in) should I have to.

Anyway, that's why I do it that way.

fti will respond to you, as well, his comments to what you posted, but since there are no rules, I wanted to explain why I do it the way I do.

As I mentioned many times previously ... fti is much more aggressive in how he attacks, thus he even dances differently than me (he might put in his attack levels before me). I wait for clear signs of higher-highs, lower-lows, breaks of the previous bar, breaks of the previous high/low, etc. (the latter two depends on the circumstances of the dance ... sometimes I'll wait for break of a previous high/low instead of the previous bar if I need a more secure confirmation that the PA is moving forward or possibly pulling back).

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Quoting leighsww

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Anyway, attacking like him, one could make a LOT of money, but if one doesn't yet know what they're doing (don't have their dance down pat and/or undercapitalized for the amount of troops they enter, etc.), like fti has said many times ... "it's a double-edge sword and could easily take your head off," as well.

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Quoting fti

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May I ask what is the basis for your analysis?

1. What is the purpose of line marked 1?

2.You had 3 impluse wave runs marked 2, 3, 4
and a fat lady marked 5.
What may I ask was the basis to remain bearish, except that the daily scope is bear?
My take is that the market is trying to reverse on a bear trend and on your hourly you should be seeing a congested volatile gyration of the short chart effects. There is no basis to think bear anymore not unless the last sharp leg down cannot find support.
Dangerous frame of mind for a bear, this is tails of the bear and you should be nimble for wide range turn rather than to be bearish.If I was trding I would give this bear a miss.

I hope you can see my point.

regards

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Quoting Northpro

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Leighs...Just to be clear, I am not disputing your MM methods and respect ones aggressiveness based on their capital and dancing ability..I was just using your example as it has been the only example thus far that we've seen and wanted to point out an alternate approach (albeit more aggressive) to the attack strictly based on attacking with force from the start to hold on to gains as the attack nears an end. Hope you dont think I am attacking your approach . I am not, but just wanted to throw out an different approach for those that are more aggressive.

Regards
NP

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It would require that I would attack full force 5, 11 before the break away r/s point( normally somewhere in the mid of AF's range, and would be drawing the attack total of 16 in batches as we test into the r/s depending on the volatility whereby the market is taking that r/s out.

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Then upon the test, profitaking of the attack sequense would be invoked into the stops-break on the reverse 8,5,3.
In effects I would be profit taking for ammo(foreign capital) to sustain the residue of the 4 that are still in battle. The four would be further lighten if the trend continues to persist. This would continue until what is left is 1.