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Trading theories

  • #1
  • First Post: Jan 22, 2010 11:49pm Jan 22, 2010 11:49pm
I would like to open this thread for people to post different facts and axioms about any trading related issues. Sometimes i like those little logical things.

I've posted a link to the axioms definition:
http://en.wikipedia.org/wiki/Axiom

Example:
Fact: The market fluctuates.
Axiom: The round numbers provide support and resistance.

Another interesting part is that axioms improved can become facts. This is just my opinion.
I would like this thread not to become an argument but a free exchange of ideas.

Thanks and enjoy,

Constin
  • #2
  • Jan 23, 2010 12:39am Jan 23, 2010 12:39am
Axiom: Technical analysis will work better for scalping.
  • #3
  • Jan 23, 2010 12:55am Jan 23, 2010 12:55am
Fact: Having a trading strategy that is a 99 percent winner in the present and relative future is more important then making money with it.
  • #4
  • Jan 23, 2010 1:00am Jan 23, 2010 1:00am
Axiom: The time of the day is a good indicator.
  • #5
  • Jan 23, 2010 8:02am Jan 23, 2010 8:02am
Quoting constin
Fact: Having a trading strategy that is a 99 percent winner in the present and relative future is more important then making money with it.
I miss the logic in that one!

What's the point of having a 99% winning system if you're not going to exploit it?
  • #6
  • Jan 23, 2010 9:05am Jan 23, 2010 9:05am
Quoting pipmutt
I miss the logic in that one!

What's the point of having a 99% winning system if you're not going to exploit it?
Because with a 99 winning system one can make money any time. The point here is to focus on creating a winning strategy rather than to focus on making money.
  • #7
  • Jan 23, 2010 9:48am Jan 23, 2010 9:48am
Axiom:

A trend once in motion tends to stay in motion.

Trend lines are typically broken on the fourth touch.

Above all, honor the market and risk.

Control risk and then you may have a chance.

Practice, practice, practice.
  • #8
  • Jan 23, 2010 6:04pm Jan 23, 2010 6:04pm
I think the only axiom is that with every tick the price goes up or down or stays the same. This is always true.

Everything else requires proof.
  • #9
  • Jan 23, 2010 6:30pm Jan 23, 2010 6:30pm
Quoting Moody
Axiom:

Trend lines are typically broken on the fourth touch.

Yeah 3rd or 4th it tends to swap between the 2, it'll be 4 for 3months then mainly 3's.

Theory being, rookies don't take / see the double top, but the triple/quad top looks safer, hey it's held twice before, they slap in a tight SL and hey presto tight SL's all hit as if by magic.



Can't think of any tonight as yet!!
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #10
  • Jan 23, 2010 7:41pm Jan 23, 2010 7:41pm
Quoting Moody
Axiom:

A trend once in motion tends to stay in motion.
Unless and until acted upon by an outside (fundamental) force.
  • #11
  • Jan 23, 2010 9:04pm Jan 23, 2010 9:04pm
Axiom: Defining an un-tradable market will save your account.
  • #12
  • Jan 23, 2010 10:37pm Jan 23, 2010 10:37pm
Axiom: A confluence is an area where 2 S/R lines overlap or very closely overlap.
  • #13
  • Jan 24, 2010 1:27am Jan 24, 2010 1:27am
Axiom: You've probably got about as much chance of living off forex whether you open an account or not
  • #14
  • Jan 24, 2010 1:28am Jan 24, 2010 1:28am
Quoting constin
Fact: Having a trading strategy that is a 99 percent winner in the present and relative future is more important then making money with it.
Quoting constin
Because with a 99 winning system one can make money any time. The point here is to focus on creating a winning strategy rather than to focus on making money.
  • #15
  • Jan 24, 2010 1:30am Jan 24, 2010 1:30am
It's not the quantity, it's the quality.
  • #16
  • Jan 24, 2010 2:41am Jan 24, 2010 2:41am
Quoting pipmutt
Let's take it this way: If you have the choice between to have a million dollars or to have the knowledge to make a million dollars at any time in the present or future. what would you choose? I would choose the knowledge.
Is that help?
  • #17
  • Jan 24, 2010 5:21am Jan 24, 2010 5:21am
Quoting constin
Let's take it this way: If you have the choice between to have a million dollars or to have the knowledge to make a million dollars at any time in the present or future. what would you choose? I would choose the knowledge.
Is that help?
Ok, like the old Chinese proverb "Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime."

When it comes to forex trading I think I'd take the fish (the million bucks),"a bird in the hand is worth two in the bush"
  • #18
  • Jan 24, 2010 3:24pm Jan 24, 2010 3:24pm
Axiom: horizontal lines through the previous highs and lows on higher time frames provide S/R on future lower time frames:
Attached Image (click to enlarge)
Click to Enlarge Name: 4h sr.png Size: 38 KB
  • #19
  • Jan 25, 2010 10:42am Jan 25, 2010 10:42am
Axiom; It is unlikely that God's plan for the universe includes making you rich!
  • #20
  • Jan 27, 2010 5:52am Jan 27, 2010 5:52am
axiom: what happened in smaller time frame, also happened in bigger time frame, and not the other way around.

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