james16 Chart Thread

Thanks.

It's all about 2 things really:

1) knowing where the nearest ppz is (i.e., where will the trade likely turn around, which will lead to drawdown if no precautionary measures are taken)

and

2) tight money management (i.e., when reaching that first ppz, either take full profit, move your stop to B/E or better, or a combination of both. Anything is better than doing nothing.)

But I don't need to tell you that of course!

Hey there Ryan,
Thanks for the tip. Although I kind of know what you mean.
ie. going short on what was a long trade.
I am not sure what it means to "fade your long"
I have my own thoughts from reading this, but they are probably not quite right!
If it's not too much trouble could you please give a brief explanation?
Thanks,
Dave.

Wow. That's one hell of a breakout trade Dale. Nice. lol

lol yeah

To fix this go to tools - history center- then go in and find the pair and timeframe and when it happened and you can manually change that bar

Mike

How pretty is this Cad 4 hour PB.

Although the PB is not structurally correct, meaning the Close is not within the previous bar and we would like the Close lower then the Open in a bearish PB, you got to like the swing high at a Strong PPZ level.

Just a minor point but i would have drawn my exit level here.

Your thoughts Benji?

Hello Jarroo,

When describing the big RN, shouldn't it be those 500 pips difference? Like 1.05, 1.1, 1.0?

I know 1.0650 is strong but do you still describe it as big RN?

Really want to clarify this.

Thanks!

PM

The original text is now in the public domain (it was written in 1923, after all) so shouldnt be a problem.

http://ebooks.gutenberg.us/WorldeBoo...nfessstock.htm

Livermore was a degen.

I think I saw that right when you did. lol

No, I do not consider 1.0650 a big RN. My mistake.

What I was looking at was the strong PPZ level on the Daily. I was thinking PPZ and typed Round Number. I'll make the correction.

It must have been a freudian slip between big RNs and PPZ levels. lol

Thanks,

Jim

Thanks Tia.

I should be much more careful with what I post I guess.
I am doing James pure stuff for a while, and this is one of the things I feel are important for his style to be successful. Not because of the fact of higher profits, but because HE KNOWS THAT IF HE WILL BE A GOOD BOY, STANDING ON HIS HANDS LONG ENOUGH, BEING PICKY, PATIENT, DISCIPLINE, AND FOLLOWING HIS OWN RULES, HE WOULD GET REWARDED. I feel like this is like a prize your parents give you if you are a good student at school. If you work hard enough, you'll get X3, but if you mess around you eat X3 crap.

To be successful, you need the right mindset, AKA psychology, more necessary than a certain entry and exit method. The big problem with high risk is the emotional effect rather than the math effect on your balance.

The method James is using wold make you not lose money 95% of the time. I take it as a fact.
So no matter if you risk 0.5% or 10%, of your account, the math effect would always be the same on your account. If you lose, you lose. Maybe less/more, but you still lose.

The biggest challenge is getting your mindset cope with the psychological and emotional effect, AKA risk tolerance. And here I can hear myself quoting Ryan's phrase: It's really about what money means to you.
Now, I trade a relative small account. 3% to me is not a big deal, and I have proved it to myself for a fact already several times it doesn't fuck up my mindset during a trade. I did not started from that though. I HAVE GRADUALLY CLIMBED MY WAY UP STARTING FROM 0.5% ON A SMALL ACCOUNT. But I know it's still nothing. My real goal now is holding this while I slowly build my account and add more money from outside each month. I am competing in a marathon, and it will take years upon years till I get my desired account size. Till then I would have enough experience, slowly and steadily growing, to manage it the same way.
In addition, not that James16's principal method gives you the math aspect of almost always not lose money, but here again, this maths fact as well has a GREAT psychological aspect. First, I can tell you from experience that the draw downs will be minimal as possible. Second, the emotional effect minimize greatly. And thirdly, You gain GREAT CONFIDENCE in your method. What can be more important for a trader's mindset? This greatly grows your risk tolerance. As you see, this money management method perfectly fits the trading and managing style. JAMES KNOWS WHAT HE IS DOING.



Again, I apologize for bringing this subject up. I promise not talking about my risk here again. It is a personal thing which must be dogged by each one for himself. As Aaron said, it will fuck up you account if you use it for a different trading style and not work gradually. I did a big mistake bringing this to here. Last thing I want is hurting other new traders reading my posts. Thanks Tia for your post. Please understand that I am still in a no ending learning cure and I am maybe doing a great mistake to myself as well. But anyway, I rather try it in this stage of my curve, considering my age and account size. I am not perfect, but I know I would eventually get what I aim for. No doubt about that.

Please go back to the post of mine Tia quoted. I have added some links to it.

Man, if Mike was my mentor he would probably kick me in the nuts! LOL

Ben

My spread on the EG is 5 pips. Yes I understand that the move was small about 15 pips. Let me ask you this . . . would you trade this differently if the move was 150 pip? 550 pips? The chart would still be the same, right? Or what if each pips was worth $5 or $50 or $175 a pip?

I think you see my point .. . forget the amount of pips and the amount of money . . . Once you start looking at the charts as a guide instead of the pipage or money you will have an "Ah-Ha" moment.

Also, it all about learning here, my friend.


Jim

DUDE 5 pips! what we need to get you another broker, at least for that pair

It that high? What is yours?

1-2

Mike

Hey vlazaf,

I believe every single bar low and bar high is their for a reason. That's the reason you see lines on my charts and not rectangle zones. Although pivot zones are zones, the minor pivots, or exact locations where price stalls are more exact than zones. This at least is how I personally see it. But not gonna argue about it.
Open some daily charts, mark the closest bar high and lows and notice how price would react around them in the future. It's really not hard. You can actually predict where price is likely to go in some cases.

Now look at my chart below. Where are the marked bar lows from the left? Do they line up together? Do they line up with old bar highs lows? yes. Is there any confluence making that exact level stronger? yes, the 50 fib ret lines up perfectly. Now put my line on your chart and dive down to the 5 min. What do you see? An exact rejection followed with a 5min pin bar.

I am not saying this is the correct way of analyzing this, but that is what James16 does, and this is what I follow, and this is what works, and this is what this thread is really about from my personal view point.

Oanda right?

Oanda is almost always 1-2 on EU, edit sry I see you were talking about EG, in that case it's more like 2.0 even most of the time. E/U actually drops to .9 on normal market hours...

Donnie

Oanda is usually 2 I think it is now. My ecn is anywhere from 0-1(more 1)

same with EG right?

Thanks.