james16 Chart Thread

i had forex in mind with this post since its forex factory.

Afternoon ghous,

ive attached a chart of the EUR/GBP which you commented on earlier. i saw what i thought might be a possible S&R area to the left.

Am i making something out of nothing, like here for example??

In the past i have found a well formed pin but let it pass due to what i thought might be S&R areas in the past, to see the price shoot off in the direction i thought it would.

judging from this chart, was i looking at unimportant resistance from the past in this case?? 0.8550 area

appreciate any comments anyone else would like to add.

thanks
rich

I just want to add something to all this:

There seems to be some kind of rebellion brewing in the thread to the idea of trading the dailies. "Fine for you James, but you have a large account. What about me?"

This is what kills 95% of new traders.

And, as he will tell you, it killed James for many years with his small accounts. Everyone is here to make money, to better their lives. I completely understand that. I have no judgement on anyone on this thread, but it is a fact that most forex scam artists (system hawkers, black box sellers) get their money by promising you untold riches in a heartbeat. You sign up, pay them a few thousand dollars (after all, I'll be a millionaire in a year) and, well, anyone who's been around knows the rest.

A couple of facts to chew on:

A rate of return that makes $5,000 to $1,000,000 in 12 months makes you the richest man in the world in 3 years. Richer than Gates, richer than Buffet.

Anyone telling me that "this is how the pros do it and they make big money" will always make me wonder why "the pros" just took a trillion dollars of bailout money, why most of my large hedge fund manager friends are recently out of a job, and why Bernie Madoff had the world at his feet.... promising returns of 10% a year.

Why weren't all these rich people giving their money to "the pros". You know, the ones who turn $5000 to $1,000,000.

Madoff conned everyone because they desperately wanted to believe it was true. People will always make money telling you what you want to believe.

Behind every private trader who does make amazing returns (and I know astronomically high returns are being done every day on this thread) is someone with years of experience, and more than likely years of failure, behind him. He or she has learnt slowly and built up their skills, hardened their psychology and is now reaping the benefits.

James16 teaches things a certain way, not because "the dailies are the best way to get rich quick" but for one simple reason. And if you can't see what it is, ask yourself this question:

If you are not profitable on the daily and weekly timeframe WHY do you think you'll be profitable on the lower timeframes?

There is so much to learn about psychology and mindset. If you're doing a regular profitable and comfortable return on the higher timeframes then sure, look lower. But that shouldn't take you more than a few months to learn. Of course, you want to get rich now, because you have no time, because you need the money. So you skip that part of the learning curve and jump right down.

Forgetting that someone like Ryan failed week in, week out for four years before he mastered what he does. And that was even with a mentor. Ryan has even taught friends how to trade by standing over their shoulder telling them when to buy and when to sell. And they still lost money while he made it.

There's much much much more to this game than the system itself. And it's all the extra stuff that makes us as traders. which is why we start high and work our way down.

There's a reason you're here. It's because you recognise sincerity and authenticity above the usual BS of forex scammers. Otherwise you'd be on one of those worthless signal sites, or buying a black box system. That discretion and patience is what will make you rich. Impatience will kill you and your account. Make sure that you have the ability to evaluate individuals and reach a sound and coherent judgement. It's hard. When Ryan showed up I thought he was a fake and an idiot. Man, was I wrong. I have nothing but respect for him now and read every one of his posts to learn from him. But one thing I didn't do was jump straight down to the 5M and start trading his system with live money.

There's a reason James talks about large accounts. And I think it's highly disrespectful to him to say that his philosophy is "you need a large account to make money". That's simply not true. He is simply saying that you are going to trade differently with a large account than you are with a small one.

It's all about respect for your losses.

Oh well I lost $60. No biggie. That's very different to "Hell. I lost $30,000". And with respect, anyone who says "hey it's just a percentage and you won't be thinking any differently no matter what the account".... I just don't believe they've experienced it. Sure you get to the stage where you forget it's money, but that is a psychological mountain to climb.

James teaches it a certain way not to keep you poor, or to slow your development. He's not hiding the good stuff for kicks. He just wants to give you a chance to stay in the game while you learn. And very few will tell you the truth like he does. No one is asking you to stay on the dailies forever. Just three months of demo and a few months of live. Prove you can do it. If you haven't got six months to spend proving you can do it then find another line of work. You haven't got the patience for this.

You don't walk into med school on day one, open your text book, and then in the first fifteen minutes of class ask "why aren't we performing surgery. I have a friend who is a surgeon and he makes hundreds of thousands a year. This is BS! You're keeping the goods from us!"

It takes time.

You've heard it said that the novice trader thinks of what he can gain, the experienced trader thinks only of what he can lose. Well that's why novice traders jump down to the lower timeframes without having proved themselves on daily and weekly first. They have zero experience, a psychological mindset made of paper, and they lose and lose and lose. THAT is how "the pros" make their money. From those who are willing to toss their capital away.

Of course you may be different. And you really need the money now. And it seems so simple. And it'll take you years to get rich on the dailies alone. And screw everyone, you'll show them. You'll come back in a year having made that million and you'll stick it right in James16's face and say "SEE? I TOLD YOU"

You may be.

In which case, come back and tell us all about it.

Because from where I'm standing, if you were a trade, you'd be a slam dunk short.

The same applies mate, i think every seniour on this thread trades short TFs (except Ryan lol ) It has been said many times that this kind of PA works on ANY MARKET ...ANY TF. The problem is as you turn to shorter TFs it becomes much more difficult for the inexperienced traders, good decisions have to made on the spot and the set up evaluated much faster. I would say that about 85% of the readers here are newbies and the posts are made with that in mind. You cant jump into 1h charts without understanding this stuff pretty well and having a chunk of chart time under your belt.( or at least its not recomended)
Rember that this thread is not all about teaching us newbies how to trade but also they are trying to keep us out of trouble untill we learn. All i can say is im glad i found this thread BEFORE i blew 10,000 trying to learn this stuff.
just my 2 pips
jon

Tia,

Thanks for putting the whole thing in perspective.. there is no right or wrong... the chain of cause and effect will follow each of us in all phases of life. Forrest Gump did not become a ping pong whiz overnight! I want to be like FOREX GUMP!

hi mate , imo you did well to identify those areas of concern, they are very valid. sometimes price will ignore these areas but not too often. good work and keep posting.
jon

thanks g_j_hook@yah! sometimes i think im being neurotic when i look for these areas, and make them up.
enjoy the weekend.

regards
rich

Tiafx fantasic!!
thats exactly how they make there money.(especially the bucket shops)Thats that 90 odd% stat again.thats a lot of small accounts! i bet not many of them did it the J16 way!!??
jon

Great post TF!!!! I've been absent from this thread for a couple of months due to stupidly slipping a disk in my back (don't ask!) and just came back today. These are wise words. I'm still demo trading and obviously this episode has set me back a bit but I'm going to carry on until I get my three profitable months in a row.

One of the things I was having a moan to myself about recently is that I can pretty much always find a reason not to take a trade - "...the pin's in traffic", "....price is pretty close to minor resistance", "...the nose of the pin isn't very long", "...there's no confluence", etc, etc. But then I had a good think about it (plenty of time for that when you're laid up with an injury) and I realised that every time I make one of those observations, I'm learning a valuable lesson in trading which will stand me in good stead in the long run.

In my opinion as pretty much a newbie you're absolutely right to champion the long game, especially for beginners.

imo its better to be safe than sorry! even if they proove to be meaningless at least you would have been ready !!
cheers, have a good one too
jon

Great post Tia. Man you either type REALLY fast or have a lot of time on your hands....LOL

When I pay my 6k a month bills off my 5k account (which I'm well on my way to doing "so Far"), I'll come back after that year and thank James profusely!! And If I ever make it out to TX, I'll buy him a beer too!!

Happy 4th everyone!! and have a great weekend.

Perfect Input, Thanks For The Time You Put In This Really Appreciate It.
Wish You The Best ...

Regards,
Basber

Amazing post....

Do you really think anyone can make a life off forex without having a 100.000 USD account?
Let's say with a 5000 or 10000 USD account?

As far as I've understood from your post, this is imposible for anyone....

So, everyone who says he/she does it, is a liar....

For the avoidance of doubt (as they say), when I said that I meant I'm the newbie of course, not you.

I'd first like to say that I've read this thread and was a PF member for a few months last year, different name though.

Anyway, I never felt comfortable with that method of trading, and this chart shows why. It's an amendment of the chart shown yesterday. The problem I have is, when does a bar become 'with trend'.

I've marked a bar that I believe is as much 'with trend' as any other, unless you have a directional bias. It triggers and is stopped out.

If the argument is that the reversal bar at the high signaled the change, that can be countered by saying the move went 'exactly where you thought it would', 'bar lows to the left'.

If it's simply a case of take the loss and move on, then fine. But it's the fact no one has commented on it, which makes me wonder if I'm missing something. And yes, I've spent years looking for the answer to this question.

I'd appreciate any comments.

Thanks.

I'd say it's a good trade compared to the other ones shown, and it simply was a loss - no big deal. But I'm sure someone will come up with a reason or more why you shouldn't have taken that one ;-)

i would tend to agree but there is a number of bars on the chart i wouldnt have taken and a few i probably would have but are not shown. when i look at my chart i feel it would have been a CT trade.
jon

Cut expenses. Get a bike. Get rid of cable tv. cut the gym membership and run outside. It all depends on how badly you want it. If you can live off $500 - 1K a month, then I would think it's possible... still takes some experience and practice though. Can't imagine having 6K of overhead a month albchr. wow.

LOL, got the bike (Harley that is) my peddling days are over, cable is for Internet trading not TV, no gym but we do have a Bow flex and I'm sure you can't imaging having 4 kids, two in collage and one starting next year either Josh...LOL (at least I "think" you're not that old...right?)...

IMHO that bar you marked is NOT a reversal signal because there was no break of it to confirm. I haven't been on this thread much in the past few days (just quick scans here and there) but I thought I saw Bob say he waits for confirmation? The next bar confirms a continuation to me.