I have received private messages from traders on this forum asking: How do I trade? what do I see?, what my current views are, which indicators do I use?, etc etc etc. I do not have time to reply to the messages individually and I do not wish to cause offense by not replying, so I will cover a few of the questions here if you don’t mind (and refer further questions to this post.)
I do not use indicators or moving averages, none. Reason? Lagging, and NONE OF THEM can predict the future.
I use Fibs less and less these days, they are also a hindrance.
I do not plot predetermined support and resistance determined by others eg Woodies etc, I look at the chart and see where the support and resistance already is and draw a line there should I need to.
I do not listen to the financial news whilst trading, I care not about the results of any particular news release...but I am always aware at what time a news announcement is due during the trading day.
I read the tape and then use the higher timeframes to see how long I should stay in a trade. My long term trade targets can change week to week depending on the current price action, at the moment the PA is stuck in a range, so I must work the ranges until the trend settles, allowing me to let my trades run for weeks. Obviously this summer I am unable to do this until the market decides where it wants to go.
Tape reading, alongside a few lines drawn on the charts as a quick guide whilst moving between timeframes is all you need. Price action is the king of trading, not understanding PA is akin to trying to ski in a forest, sooner or later it’s going to hurt.
It is also a game of Greed, fear and tactics.
I am not greedy and I do not fear if a trade or series of trades fail. However, I am a tactician.
I study, analyse and spend hours reading the tape. Those hours/months/years have enabled me to get to a stage where I am less and less fooled (mostly lol) by market manipulation tactics. By reading the tape you can see in minute detail what I am talking about, I can’t explain it more than that. If you wish to understand further then please look for a book called “The Day Traders Bible” by Richard Wyckoff. Do a search on Google; there is a free download around. If you look back through my posts I posted the link to that and numerous other articles a few weeks ago.
I wish you all the best of trades bros and hope you understand why I posted my response here and not by PM to you all.
I do not use indicators or moving averages, none. Reason? Lagging, and NONE OF THEM can predict the future.
I use Fibs less and less these days, they are also a hindrance.
I do not plot predetermined support and resistance determined by others eg Woodies etc, I look at the chart and see where the support and resistance already is and draw a line there should I need to.
I do not listen to the financial news whilst trading, I care not about the results of any particular news release...but I am always aware at what time a news announcement is due during the trading day.
I read the tape and then use the higher timeframes to see how long I should stay in a trade. My long term trade targets can change week to week depending on the current price action, at the moment the PA is stuck in a range, so I must work the ranges until the trend settles, allowing me to let my trades run for weeks. Obviously this summer I am unable to do this until the market decides where it wants to go.
Tape reading, alongside a few lines drawn on the charts as a quick guide whilst moving between timeframes is all you need. Price action is the king of trading, not understanding PA is akin to trying to ski in a forest, sooner or later it’s going to hurt.
It is also a game of Greed, fear and tactics.
I am not greedy and I do not fear if a trade or series of trades fail. However, I am a tactician.
I study, analyse and spend hours reading the tape. Those hours/months/years have enabled me to get to a stage where I am less and less fooled (mostly lol) by market manipulation tactics. By reading the tape you can see in minute detail what I am talking about, I can’t explain it more than that. If you wish to understand further then please look for a book called “The Day Traders Bible” by Richard Wyckoff. Do a search on Google; there is a free download around. If you look back through my posts I posted the link to that and numerous other articles a few weeks ago.
I wish you all the best of trades bros and hope you understand why I posted my response here and not by PM to you all.