When to walk away...

No, not from Forex...but, from certain markets.

Example.

This last week.

On Monday, all the indicators I use showed that this would be a tough week using my methods. I couldn't get a definite direction for things, and everything looked like it was going to be up and down.

So I wrote to myself..."DON'T TRADE THIS WEEK!"

I put it on a sticky, stuck it on my computer...and just sat back. Proud of myself while I watched friends pull out their hair on intraday trading.

Monday came, and I watched the markets. Tuesday came and I watched the markets. Wednesday came and I watched the markets. Damn, I thought...I'm psychic. No way I shoulda been in there...and I wasn't.

Then came Thurdsay.

I made 12 intraday trades on Thursday. For a grand total of a -39 pips. The end of the day I'm thinking..."what the hell are you thinking, your damn lucky that's all you lost."

Then came Friday.

I made 3 trades...total -19 pips. Lucky again.

So today I'm walking around in a confused daze. I told myself not to trade this week...I wrote it down. I bragged to people that this week was gonna suck, and stay the hell out. In each of my daily reports (I write down my analysis every day before I start anything) it says..."DON'T TRADE TODAY!" Every day it says that, bolded and underlined!

I have a problem.

My problem is...I cannot NOT watch the markets. Even when I know I'm not gonna trade, I'll still watch them. And all a sudden, something just pops up, and I'm in. I'm actually proud of myself for watching the markets for 10 hours Mon-Wed and not pulling the trigger. But, I think 3 days is my limit

Which brings me to another question.

I know how to follow a trend. I can make pips in a trending market. Actually, I think most people can. It's those damn consolidating, up & down markets that I always lose at (u think I'm unique here?) And being a "trader"...it's like impossible to stay away from your job for days, or weeks at a time while the markets go through this faze.

So I'm gonna ask...has anyone developed any type of system that gets them pips consistenty in a sideways, consolidating, or up and down market?

Cuz the only way I've learned how to trade it...is NOT to trade it.

And apparently, that ain't workin'.


SF

If you can't help yourself from watching the market during such periods, take the week off and don't be infront of your computer.

If you know your limit is just 3 days, watch the markets for 2 days only, then go spend the remaining 3 days of the weeks elsewhere, it will feel better.

Thanks,

Nader

SF,

Trust your instincts! Sounds like you have a solid strategy, if its telling you not to trade, DON'T TRADE, and don't feel bad about it either, easy to say right?

Sam

Hi, Would you care to expand on this?

Best regards
Alan

Well, I have a cool solution for you... Since you can't stop watching the market (just like me), and you can't resist the urge of a trade inviting you in, while your system screams at you to stay away...
So, why don't you change your system? I mean designing an alternative system... While your system can't work its way through a specific market phase, shift to "plan B" or to your second system...
For example, if your system uses MAs to spot trends and follow them, but the market is trendless at the moment, now you can change to the second system which is based on any type of fast oscillator, catching kinda small reverses up and down...

I think it's helpful to start designing a new system from scratch not making a newer version of your old one...

Meedo...exactly what I was thinking.

Thing is, I've never been successful trading a ranging market. But, since I've discovered a weakness in myself...I guess I'd better work on that. Fast response indicators may help here. Or, at least...limit the damage. Have to work on that.

Firehorse. No, I don't want to expand on that...that's my problem in the first place.

SF

Yes I have. The day trading sample system I posted in the "fiji reports" section is the best I've seen in a sideways market. The predicted highs and lows seem to be more accurate in sideways action. In a trending market the day trading system for VP works pretty good but with that system you will miss the strong trending times because (in a long market for example) the market often does not reach the predicted low of the day but sometimes begins right in the middle of that range and heads for the sky breaking right through the predicted high by as much as 70 pips. That was one of the reasons the system had low drawdowns is that daily trending is not that common in the markets. Even daily trends will consolidate throughout the week with often only two or three strong trend days followed by weaker sideways days then stronger trending again.

Anyway that is the best sideways system I've seen.

FT

Ya Fiji...I've looked at that a couple of times. It seems that VP would fit the bill perfectly for this type of situation.

VP needs to get rid of their lame sales approach, and just post your analysis on their website. Their sales would triple overnight.

I hope they're listening...

SF

I have a solution!!!!...

I sometimes fall to the call of the market - Especially when those candles start doing a flirty dance!!...

Open up a demo account with the same amount you have in your live account & trade from there.

Also, do a study or backtest on Bollingers & your favorite oscillator crossovers for sideways market trading

As far as I know they are listening. I sent the link to the various comments from people to Lane Mendelsohn and he said he'd forward it to the sales department. I hope it does some good. Usually customers are worth listening to and do not give feedback so much to trash a company but to change a company. Often it is hard for a company to listen to because it comes across like bashing but I think in many cases people are trying to help.

Interesting you should mention that. I looked at their web site and noticed that they printed the main article on their web site. Unfortunately they did not provide the link to FF or to the sample system. What is kind of interesting about that system is that I simply designed it and traded it in real time -- let the chips fall where they may. I was very surprised that it did well -- considering that during the sample period I traded a lot of traders did poorly in the markets because they were choppy and difficult to deal with.

FT

very interesting story experience. I was moved to read it.

Ooh, I know that feeling very well, and let's be honest, it never happens when you're doing well. Usually, the idea that you should stop comes to us when we realize that we've made some serious mistake or lost an impressive amount of capital. Another reason can be that you are very tired, which just doesn't allow you to concentrate on what you're not doing and you just walk in a circle. Honestly, at times like this, I really don't see anything wrong with taking a step back and looking around. Or maybe you should do something else, just for a while, so you don't feel like you're just wasting your time. This business requires a huge emotional response, so it's not surprising that such situations happen from time to time, just give yourself some time and everything will work out for sure.