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Help for Newbies (Discussion Thread)

  • #141
  • Nov 28, 2008 10:35am Nov 28, 2008 10:35am
Quoting FXSurfer
Thanks Peter! I haven't been called "young" for some time! LOL!

While we are talking about J16, where is a good starting point?
I just pick up the terminology and acronyms piecemeal on the
J16 charts thread. Like this one that I just learned (from your
reply) after seeing it many times:

Have a great weekend!
There is a wealth of info in there and it can be hard to sort the wheat from the chaff.

Like most threads it gets filled up with questions over time. The main thing is to see some images as Jim quite often annotates these charts with the PA info.

So go to the thread and click on the 'Attachment' icon at top right-hand corner. All the images from the thread are then listed - you can print them, store them in a folder, whatever you want and then go back and refer to them.
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  • #142
  • Dec 1, 2008 4:34pm Dec 1, 2008 4:34pm
Quoting PeterFM
Start your price action (PA) studies now. The longer you leave it the harder it will be to shake off your reliance on indicators. For now, blend the PA with whatever your chosen indicators are, but watch how signals can work together. For example, watch for and only take a MA cross-over when you have a Pinbar or Outside Bar.If you combine your indicators, PA and S/R you'll trade less but you will select the better areas to trade around.

I wish someone had really explained the importance of S/R when I started out. I could have saved myself an awful...
I am really grateful to you and to have ended up on this thread. I have to admit without your advising I wouldn't have a clue where to start building my strategy. I already started my PA studies, and as you said it's been really hard for me to shake off from indicators because they give me the confidence, I guess when I get to become a better Price Action trader, fear will not be a problem anymore. I will try combining PA with S/R and my Bollinger band indicator and check the signal. I guess my next step is to determine what better areas to trade are. Thanks.
  • #143
  • Dec 1, 2008 6:58pm Dec 1, 2008 6:58pm
hi there baby! i didn't strated yet a strategy based on the pip pricing changes. I've been told that it could be profitable, but i do not know how can i start with it though. could you give me a place for a tutorial or something? thanx...cause i already googled it but didn't find good stuff. thank you!
  • #144
  • Dec 2, 2008 3:29am Dec 2, 2008 3:29am
Quoting Hdsn
I am really grateful to you and to have ended up on this thread. I have to admit without your advising I wouldn't have a clue where to start building my strategy.
Hopefully it'll save you some time in finding your own method. I've arrived at this point after 2+ years of study so I wish you well.
Quote
I already started my PA studies, and as you said it's been really hard for me to shake off from indicators because they give me the confidence, I guess when I get to become a better Price Action trader, fear will not be a problem anymore.
You can deal with fear very easily. If you're trading 1% at the moment then for the next few weeks reduce your position sizing to the absolute minimum your borker allows. Keep assessing your Stop Loss locations as if you were trading your normal position size. What this does is let you sit back and wait for the trade to take you out based on your Stop, not your emotions. After a while you will see if you're picking good areas for Stops and Take Profits while not damaging your account too much. As your confidence in your method grows (and the equity curve stays positive) then start increasing your position sizing gradually until you're getting back to whatever would be normal for your 1%. Did that make sense?
Quote
I will try combining PA with S/R and my Bollinger band indicator and check the signal. I guess my next step is to determine what better areas to trade are. Thanks.
For a start just stick to the main round numbers .00 - 1.200 etc and be patient. Wait for your signals to prove (as much as you can) that Support or Resistance has held or failed.

I pick my areas slightly differently to most folk but it all boils down to the same concept. There are points on your charts that clearly show where price has re-acted in the past.

Here's an example; USDCAD Daily chart.

I don't use Bollinger Bands so you will have to apply your own reading to this. But notice the difference between PA at the rejection areas and the clear, steady break above the Resistance line when we look at the Breakout area.

The red Resistance Line was based on the Monthly chart and is roughly at 1.0300. Have a look yourself on your borker's feed and see how it would have worked and what decisions you might have made.

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  • #145
  • Dec 2, 2008 3:32am Dec 2, 2008 3:32am
Quoting kittykat
hi there baby! i didn't strated yet a strategy based on the pip pricing changes. I've been told that it could be profitable, but i do not know how can i start with it though. could you give me a place for a tutorial or something? thanx...cause i already googled it but didn't find good stuff. thank you!
I'm sorry, but I have no idea what 'pip pricing changes' means.

I would suggest you post the question in one of the other areas as if it has been tried out I'm sure someone will help you.
  • #146
  • Dec 2, 2008 9:27am Dec 2, 2008 9:27am
Quoting rookiesfx
PeterFm, after reading your thread, i think you can write an ebook and sell it but you didn't! You're truly one of a kind!
Don't think it hasn't crossed my mind .

However, I do like to sleep at night!

Thanks for your kind comments.
  • #147
  • Dec 2, 2008 4:07pm Dec 2, 2008 4:07pm
I certainly know what you mean, but patience is not one of my virtues. Holding back for better confirmation is something I've learned after stumbling with certain trades, so I must be patient to go on with my strategy. Thanks for being that detailed on your posts, every single one has been an entire lesson for me.
  • #148
  • Dec 3, 2008 1:01am Dec 3, 2008 1:01am
Hello Peter,

I have been following and finaly understand the basic things, nevertheless it is hard to get more hints in the moment when you looks like it is going to brake and turn round or, keep the same direction.
During the last week and till today I have been trying, but couldn't help to look at the H1 M30 and M15 to see some other information about what would be the next movement, just watching the M5 I feel like I get lost. Doing so, I have been able to be more accurated, even though I've been caching no more than 15 pips per trade, may be 10 pips average. Of course I have done bad trades but the winning trades were more than the lose ones, fortunatelly
And another thing is that I'm not using the stop loss by now, I know I should ... but I feel like by doing so I can deside how much flexibility or tolerance I will give to my trade. (I think this sounds as though I were a PRO, which I'm not..) , I might also run the risk of not accepting when a trade is a bad one...
About the use of Stop loss, does it have to be set depending on the situation of the traid? or there is some kind of normal measure to use in general?
Thanks in andvance and look forward to catch more pips je
  • #149
  • Dec 3, 2008 2:40am Dec 3, 2008 2:40am
Looking back in the thread, realized I forgot to thank you for the last answer. I have reviewed it and it answer me more less what I have asked above...

Thanks!
  • #150
  • Dec 3, 2008 3:17am Dec 3, 2008 3:17am
Quoting Topex
Hello Peter,
I have been following and finaly understand the basic things, nevertheless it is hard to get more hints in the moment when you looks like it is going to brake and turn round or, keep the same direction.
Don't forget, you're not going to crack this overnight or even after a few weeks. If you try and catch every move you're going to end up disappointed. The other thing to remember is that the market is a bit mixed up at present. At times it looks like a pair (EURUSD, for example) is ready to move up and reverse its downtrend. It'll do this for a few days and then bomb down again. The danger is that you get suckered into thinking long on every trade and then find yourself hanging on to a bad trade. If you go against the main trend then keep your targets close and always use a stop. I tend to cut my position size if I'm doing this; if the trade works it's a small gain, if it doesn't the loss is small as well.
Quote
During the last week and till today I have been trying, but couldn't help to look at the H1 M30 and M15 to see some other information about what would be the next movement, just watching the M5 I feel like I get lost. Doing so, I have been able to be more accurated, even though I've been caching no more than 15 pips per trade, may be 10 pips average. Of course I have done bad trades but the winning trades were more than the lose ones, fortunatelly
There's enough pips out there on the longer charts if you learn to be patient; pick your trade direction, wait for price to get to a Support or Resistance area and play the main trend. Small time-frames can be scary unless you have a firm idea of where you want price to be heading. There are too many false signals that, as a newbie, you won't be able to interpret correctly.
Quote
And another thing is that I'm not using the stop loss by now, I know I should ... but I feel like by doing so I can deside how much flexibility or tolerance I will give to my trade. (I think this sounds as though I were a PRO, which I'm not..) , I might also run the risk of not accepting when a trade is a bad one...
Always use a Stop even if it's some distance away. You're not ready to handle the emotional aspect of mental stops and how are you going to learn the best places for Stops if you don't study the charts and choose good areas. Trust me on this - no stops will lead to bad trading. You WILL hang on to trades in the HOPE that things will turn around. Sometimes they do, and sometimes they don't. The trouble is that when they don't you end up with a big drawdown.
Quote
About the use of Stop loss, does it have to be set depending on the situation of the traid? or there is some kind of normal measure to use in general?
Thanks in andvance and look forward to catch more pips je
Stops should be set a place where you are sure the trade is going wrong. So look at your S/R areas and tuck them away behind them. As you get more screen time you'll get better at picking good places. And that's the secret - screen time.

Take care.

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  • #151
  • Dec 3, 2008 5:29am Dec 3, 2008 5:29am
Quoting PeterFM
So look at your S/R areas and tuck them away behind them. As you get more screen time you'll get better at picking good places. And that's the secret - screen time.
Thanks for this Peter!

Beautifully illustrated on the chart, sir.

I especially like the idea of using the method
to trade continuations...versus "catching the knife",
which seems to be popular around the forum.
Too scary for me! LOL!

Have a great day!
  • #152
  • Dec 3, 2008 1:24pm Dec 3, 2008 1:24pm
Just found this thread, and lovin' it!
I've been trading two years or so, but I'm currently doing 'cold' turkey' after dropping my indicators. I'm in Jacko's second group, and I'd have to say that the information which you are giving out is as priceless as anything I've come across anywhere else. You, James, Jacko and BRV are the business.
Thank you.
  • #153
  • Dec 3, 2008 3:07pm Dec 3, 2008 3:07pm
Quoting Interceptor
Just found this thread, and lovin' it!
I've been trading two years or so, but I'm currently doing 'cold' turkey' after dropping my indicators. I'm in Jacko's second group, and I'd have to say that the information which you are giving out is as priceless as anything I've come across anywhere else. You, James, Jacko and BRV are the business.
Thank you.
But that's exalted company you've put me alongside
  • #154
  • Dec 5, 2008 1:13am Dec 5, 2008 1:13am
Hey, I just read your answer, very clear.
I will plan more my trades and start using the stop loss, I have to get use to it. The chart is well explained, I'll put in practice your lesson, have to be patient.

Thank you!
  • #155
  • Dec 18, 2008 11:28am Dec 18, 2008 11:28am
Just want to check in and say Thanks Again to
Peter for the previous help!

Since cleaning up my charts and focusing on
S/R things are really getting better!

Good Trading!
Brent
  • #156
  • Dec 18, 2008 11:38am Dec 18, 2008 11:38am
Quoting FXSurfer
Just want to check in and say Thanks Again to
Peter for the previous help!

Since cleaning up my charts and focusing on
S/R things are really getting better!

Good Trading!
Brent
To give you some more encouragement this is my equity curve for this month. All these trades were done on GBPJPY and once I decided to focus on ignoring potential long trades I haven't looked back.

I know I missed some good trades (on the buy side) but the downtrend always seemed to carry less risk so that's the way I went. Nearly all of these were Limit sell orders at Resistance areas.

Keep up the good work and stay in touch.

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  • #157
  • Dec 19, 2008 3:06am Dec 19, 2008 3:06am
Top stuff!
Have a good Christmas.
  • #158
  • Dec 19, 2008 5:18am Dec 19, 2008 5:18am
Quoting Interceptor
Top stuff!
Have a good Christmas.
And the same to you, stay sober
  • #159
  • Dec 20, 2008 2:40am Dec 20, 2008 2:40am
I'm amazed at the quality of material on the J16 Site Guest Area!
This has got to be the way to go for me.
Talk about help for newbies (and everyone else too)!

Hopefully mentioning it doesn't break any posting rules. LOL
  • #160
  • Dec 20, 2008 6:09am Dec 20, 2008 6:09am
Quoting FXSurfer
I'm amazed at the quality of material on the J16 Site Guest Area!
This has got to be the way to go for me.
Talk about help for newbies (and everyone else too)!

Hopefully mentioning it doesn't break any posting rules. LOL
I would like to see every new trader end up there.
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