The System II (Yes with irony)

Hi all,

Feb thanks for starting this thread, it's a great system.
I'm gonna stick with this system for a while, let's see if it's working for me too.

Reas

Hello to all,

If you have not read post#479 you might not be aware that Feb and other traders interested in his teaching gather at the Tradingrooms.com to exchange ideas and live trading. It seems to me that the best time period to join chatroom is between the London Open and the NY Open until around noon est. This can be a faster and more direct way to learn and enjoy eachother's company. I would suggest that you familiarize yourself with Feb's approach so that the conversation is more about trading than learning the basics.

Hi Moneda,

Do you mean that Feb doesn't post here anymore about this system?

Reas,

No....that is not what I meant at all... it was only a suggestion in addition to what is going on here.

Ah, i see
Thanks for mentioning the room, i will take a look there.

Since "Feb" introduced his style of trading onto "FF" I have been doing some study into wave forms and support and resistance. To make a fat story thin, I've included some material which relates to what we are doing here.




Have a good weekend...

A

The link is to a youtube video about basic market flow which isn't mine so for the precious ones out there that get funny about that sort of thing, look at the video, ignore the little promotion...

Alex

Alex

I am watching youtube's video and it's definitely in line with this thread.

I was trying to download the pdf on trading breakouts but it has an error

Good to hear from you.

Here's the "trading breakouts pdf again, do let me know if there are any problems with it.

Regards

Alex

I would like to address a question about trading sessions. Hopefully feb can reply to this based on his opinion of them.

I start looking for entering trades after the Frankfurt open, which is one hour prior to London open....it has been my observation and has been mentioned to me also by several traders who are much more experienced than me that the initial moves will start in Frankfurt open but if you watch very closely you will see a lot of fake outs or reversals at the 1/2 way point of Frankie open. I trade primarily the GJ cross but the last two mornings I took trades on Cable that seemed to do an about face after 6:30-6:40 a.m. time passed.

Just something to watch for and be aware of as London open approaches.

feb.... what's your take on the frankie/london opening session, especially the lead up to London from Frankie? do you notice the action that occurs at the halfway point of Frankie?

I used to trade London session, not anymore. But back in the day yes we experienced more often than not some sort of jiggle between both Frankie and London. Many of my friends use it as an edge..as a matter of fact I know a couple of guys that have a system off that jiggle.

As you say now, it seems like the pattern still exist.

Hello,

Good morning.... This is what seems to me to be the swings of the e/u and the cable. Other perspectives are most welcome

Well, i am in this trade already several mins ago. Lets see if this is a winner or loser. SL = 20pips at 1.5609. Entry at 1.5589.

Morton,


Looking @ your chart, are you trading the pullback or the break of the downswing. If you are the break...I don't see a pullback but if you are trading the pullback then that is different from Feb's approach... Also it seems to me that your swing is less than 30 pips.

i was trading the break of the downswing. Yea it was less than 30 pips. And i knew it was a bad trade. lol

Morton,

Ok... been there...done that.... (many times)

hey Feb what broker do u use for the indexs ?
and if you can recommend a good broker with a free demo account that i can practice on.

u r doing a great job on this thread thanx

Guys

I have some interesting questions about exits/limits..etc...rule of 20..all that

20( or any number) stop loss is what guru's consider a "hard stop" ...it's an insurance against a catastrophic move against your position.

Although we're trailing that stop, if you see the market moving like 15+ pips in your favor and all of the sudden it gets down to 6, 5, 4 back...do me a favor and press the panic bottom...please??? Do this as many times as you see it happening and I promise you will get a runner very soon

don't let a winner turn into a loser....

don't "hope" that the market will turn back on your side......never do that.

You don't know what the market it's going to do next......

remember you're "guessing" that the market will move that way, more often than not... that's pretty much the end of all technical (and yes baby, fundamental) analysis...if anyone tells you a different story, consider it a "snake oil" tactic.

I've been conditioning your mind since the get-go..'cause losing is part of this business......you will lose

I lose a lot.....I "test" the market a million times...but I assure you, I get a runner pretty often.

Please look at me at me when I am talking to you....Don't get distracted

I've been in this business for a long time for two reasons

1) I don't take the market for granted - I don't "hope" that my magic "system" will come back and save me from the chop monster.

2) I give a reasonable chance to my position...

Explaining # 2 - Ok....I have "expectancy " that the market will move on my side within a reasonable time frame...at a reasonable "speed" AKA momentum...if that doesn't happen...my ass is on the line....what would I do..."hope"? .."wait"?...no sir...I have no reason to be holding that position..

Daytrading is a cruel environment. You need some sort of an "attitude"...be cocky..arrogant....but humble with your fellow trader and family..

Consistency is the crux of every trader.....you get discouraged,,,,depressed...you are hoping to make it so you can quit your job etc

Take note of this...no system...no strategy...no fibo's..stochs Big Mac..will EVER in your whole life as a trader, give you consistency.

You must create that..it's in your hands...how you learn to manage your trade it's the ONLY route to consistency...engrave this in your mind.

"So...Feb, I don't like your idea because I will leave some money on the table"

Ok I see the problem...this is what we'll do

so you were shooting for 20 and you only got 5....ok I'll make you a deal

you give me those 5 pips in exchange for -12 lose pips from your trailing stop

deal?

of course not

Another way to the "20 Rule" is "Half Rule". For example, if market swing high-low is 40 pips, then we target to get 20 pips. If it swing 20 pips, then we get 10 pips. We have to leave some money on the table.

Thank you Feb for your last post,that will help so many people, myself included who dont like being wrong.

If someone with all your experience can pick many losers,that gives us a lot of hope and helps put it all in perspective. The losers are just a business expence, and the runners are our profit.

Thanks for that matehttp://www.forexfactory.com/images/icons/icon14.gif