What Was Your "Ahaa!" Moment

Hi Everyone,

Once in a while I'll read a comment from an experienced trader that they consider a "Ahaa!" moment in their learning curve. I think it would be great to make a collection of these.

So, if you're a competent trader with a winning record would you be willing to share some of these "Ahaa!" moments? (I know this could draw a lot of hilariously funny and sarcastic comments, but I'm looking for valuable insights!).

Thanks,

Griff

This could become a very nice thread.

In my case, I dont think there's been one particular "ahaa!" kind of point of inflexion in my trading but rather a slow and painful evolution. However, I did notice a substantial jump in my profitability when...

1) When I broadened from sticking exclusively to the 7 majors, into all the 22 cross currencies offered by my broker. I am a trend trader and sometimes I would take less-than-optiomal trades because I only had 7 pairs to choose from. Now I daily scan 22 pairs and there is ALWAYS at least one of them that is nicely and smoothly trending, incrementing the chances of a sound set up to trade off.

2) When I began taking horizontal levels of support/resistance into the equation. Before, it was all about the trendlines for me. Now I am more inclined to search for levels of horizontal S/R (previous swings high/lows, channel tops/bottoms, etc). Drawing those horizontal lines has provided me with a much better picture of what's actually going on in the market.

3) When I began enlonging (spelling?) my positions from mere 10-pip quick in-and-out scalps into healthy 30, 40 or 50 pip intraday price targets.

4) And, of course, when I understood that the secret of trading is not within the technical analysis itself but rather within the patience and discipline to sit on your hands without trading until the very best set up pops on the screen. There's no "ahaa!" moment more important than that.

I have had several. They seem to come in my moment of greatest need. They are the reason for my pip gains.

The first time I sat down and actually figure out the expectancy of a system.

well the first time my "ahaa" was years ago when i jump on a trade with all my damn great analysis and suddently the news kill all the TA (let me remember..in about 2 minutes or something i lost 1/4 of my equity.damn..it's also become the most expensive "ahaa" in my trade.tsk tsk cannot be helped.damnn nfp i wish i know you earlier.

parlenk

Based on my bankroll I wouldn't be considered experienced, but I think I finally had my 'Ahaa' moment.

I'll agree with WTB somewhat on his points 1 and 2. For weeks/months I studied GBP/USD. I tried to create a system around it. I went no where. First it was that it wasn't trading like I wanted it to based on my system. Then it was that my system wasn't what I wanted. I expected to find something to produce 50 pips a week, every week, no more no less based on the same type of entry/exit signals. Day in and day out I studied price action models, probability based trading, grid trading, carry trades, etc.. Again, I went no where.

My first 'Ahaa' moment was finally taking a look at other currencies uncorrelated to GBP/USD. GBP/USD may move the quickest, but you can surely make tons of money playing other currencies. Pretty much any major currency will give you the opportunity to pull 50-100 pips from it somewhere throughout the week. Or do just as the 'turtles' did with their trading. Normalize your risk across all positions by putting more of your account into slower pairs and less into more volatile pairs. Trade double your typical lot size in eur/gbp and tell me it's not volatile enough to trade. Then, just find other uncorrelated pairs and you'll be likely to find something worth trading all the time. No need trying to kill yourself in the most volatile pairs when you can more accurately predict slower pairs, but increase the lot size to equal the same risk you would incur with more volatile pairs.

The next 'Ahaa' moment was going back to my trading style I had when I traded stocks. I thought forex was so different because it was two way trading, and that I had to throw all my old habits away. I began researching all these systems that threw out indicators such as MACD, RSI, etc.. I'm finally coming back to simple MACD, RSI, price action trading. It's completely discretionary based on myself. I don't need to wait for a cross or anything like that. It takes a lot more time to think about the trade, but I think the human brain is a lot more powerful than any EA or simple 'MA Cross' system you'll find. I can look at the specific situation laid before me and use information from MACD/RSI and price action in the past which a purely mechanical seat of your pants system can not. Besides, slow down your charts to 1/2/4 hour and you'll have plenty of time to weigh your options. Slowing down charts helps your profits tremendously by the way. That should be an 'Ahaa' moment right there too.

People also say you shouldn't use indicators because they lag. That's true, but it is a lot harder to tell what is going on in the market without indicators. Price action won't tell you oversold/overbought/momentum or other good stuff. You can look at a trendline break and think momentum might be shifting, or you can look at simple important indicators like MACD/RSI and get more confirmation that the tides are turning. I'm a big fan of divergences. If I see a divergence then I'll watch that pair knowing a reversal is coming. Then I'll just let price action confirm it and enter the trade. SIMPLE. Use indicators to paint you a picture that is hard to see in the price action, but don't use them to time entries. You don't profit if RSI climbs from 30 to 50. You profit when price climbs from 120.30 to 120.50. (Assuming you correctly went long. )

I feel this is helping my trading tremendously. I feel confident entering trades, and, more importantly, letting my winners run. I can rest assured knowing that a 30-50 pip swing against my trade doesn't mean a reversal and that I'm still on the favorable side. I finally came back to my old simple style because I realized that from the weeks and months of reading that I missed a lot of great opportunities. GBP/USD had a great finish to 2006. I missed out on GBP/JPY before it hit the big resistance level from 1997. It may break it, but I may wait on that. I also realized that all my reading and posting was getting me no where. I was going through systems week after week. I could have made bank just by simple familiar chart reading.

Which brings me to my last 'Ahaa' moment. Trade your own way. Unless you're a noob don't bother reading all these threads about great new systems that pull 300 pips a week. If you can't trade the system comfortably then it probably won't work for you. Read up on the basics such as price action, the main indicators, and other common trading tools. Then use what makes sense to you.

What I've also found is that now that I know how I'm supposed to be trading it gives me time to read some of the forex news. So I trade technically, and also know a little of what's going on fundamentally with my trade. To me that's smart trading. You may not agree with me, but that's the point. It's working for me. Find what works for you and be happy. Matt

p.S. - sorry for the long reply. I always do that. Can't help it.

First Ahaa... Attending my first forex introduction seminar

Second Ahaa... Making my first account demo trade

Third Ahaa... Making my first live account trade

Fourth Ahaa... Finding a system that profited nicely and consistantly.

Fifth Ahaa... Trading full time

Sixth Ahaa... Incorporating an L.L.C. and trading as a business

Well i can add here i guess.:
all of your ahaa moment from first to sixth ahaa closed by another ahaa-ahaa (lots of ahaa) in bed rite? be honest with me pals. just kidding.so many ahaa you have.:

I'm not a pro but this has really affected the way I think about everything.

I read it in Trading in the Zone - Casinos make an enourmous amount of money without knowing the result of the next role of the dice or spin of the wheel. You can be sure of the long term result with having zero idea what the immediate future will bring.

It goes beyond trading - say your in sales or going for a job interview or trying to beat your PB in sport. You decide the process, but you don't decide the outcome of individual events.


Regards,

My big Aha moment was when I first saw the video for "Take on Me". It was so rad...

haha long live the 80s

TAAKKKKEEEE ME HOOOOOOOOOME

My ahaa came with Elliot wave principle!

Had I been drinking it would have certainly came out of my nose just now.

I'm still waiting on my A-hah moment. I had a small one once but I forgot to write it down.

You don't get up in the morning and suddenly realize why you've been blowing up accounts for the last 3 years. Ahaa moments are continual... if you're lucky enough. Some of my 'ahaa!!!' moments:

- Countless hours of chart analysis do not improve my bottom line.
- My gut feeling is the most accurate leading indicator I will ever find - more accurate than price itself.
- The trend 'really' is my friend.
- The books were right about everything on the screen going into slow motion when your in tune with the market.
- I get much better results when I allow myself the opportunity to be wrong.
- Every time I talk to my peers about the incredible day of trading I just had, I give it back to the market double that amount the next day.
- I was never able to find 'the system', 'the system' found me.

That last one really put it into perspective. The old saying about 'find a system that fits your personality' is not very clear. That's why so many jump from one system to the next. The chances of finding one that is "perfect for you' is not likely. Gained knowledge of all market related material will be filtered though the ego (personality) and applied on its own. Heavy maaannn.

P.S.
Someone should start a thread about the turning point that inspired the trader into his current obsession. Also referred to as "Catching the Bug".

MM

I'm at the "o-hooo" phase yet...

This may sound like a infomercial but my aha moment came a few years ago when I read "Bird watching in lion country". I gained a new perspective on trading and everything just seemed to make sense. Funny 'cos I don't use anything close to the method described in the book. You just get over talking about trading and actually go out and do it.

My first aha was when i saw top gun: "ahaaa, chicks dig bikes!"

when I found out that I dont need to watch the market all day long to make money...

Nice thread!

When I realized that:

1. Instead of jumping from one system to another, I need to get down to work and create MY system.
2. The Trader is much more important than The System.
3. Higher timeframes make the trader better.
4. Time is as important as price.

Another "ahaa!" moment for me, as an intraday trader, was to stick 100% to London session, specially the first half of it. I used to also try to trade off peak hours and I would lose more trades than not. After many months I understood that my particular trading style feeds off market momentum and needs an alive'n'kicking market. If the trade doesnt take off my direction within a relatively short period of time and butts around the entry level, I have noticed that my chances to score a loss multiply. That's why I completely dropped NY and Tokyo and now a days I only trade the first 5 hours of London.

I also agree with couple of points being said above:

1) Being in front of the screen 24 hours wont make you more money.
2) The trader is MUCH more important than the system. Someone said to me once that there are more successful systems than traders, and it's totally true.