Hi Sho, another move? For experienced forex traders they seem slow to catch on, some what like the butterfly in your parable, you know the one under the boulder?
intraday trend trading with price action
- #1,982
- May 9, 2010 12:51am May 9, 2010 12:51am
- Joined Jan 2010 | Status: Yet to replace my suit in black.... | 3,268 Posts
Alan, I think you better ask Sho to give you a better resolution pic. Ha ha. Great work
Hi everyone,
I've attached the latest version of the Trade Price Thread compilation PDF. Its a lot better presented and organised then before so it will work even better as a revision tool.
It includes the original material from the entire main thread plus the subsequent posts that Sho's made since then and also contains selected material from the second trade discusion thread.
[font=Tahoma]Also there are new chapters including subjects such as Support and Resistance, Mental Preparation...
- #1,984
- May 10, 2010 5:35am May 10, 2010 5:35am
- Joined Jan 2010 | Status: Trader | 1,188 Posts
Hi everyone,
I've attached the latest version of the Trade Price Thread compilation PDF. Its a lot better presented and organised then before so it will work even better as a revision tool.
It includes the original material from the entire main thread plus the subsequent posts that Sho's made since then and also contains selected material from the second trade discusion thread.
[font=Tahoma]Also there are new chapters including subjects such as Support and Resistance, Mental Preparation...
.i have updated the first post on that night when you posted the file.
- #1,986
- Edited 11:11am May 11, 2010 11:00am | Edited 11:11am
- Joined Jan 2010 | Status: Trader | 1,188 Posts
Sho, if you're watching, was anything wrong with this IB entry please? Were there any clues to warn me off?
Thanks
and yes i would have taken the long trade(aggresive entry after divergence) as well eventhough there was divergence.its fine.allways cut your loss as soon as you realise its not going in your direction.
so its a small loss.our methood is not 100% winning methood but our methood is a winning methood.just stick with the rules you will do fine.
Another one here Sho. What do think the story is here please? Is this the wrong time of day to trade? - perhaps short covering got me. Looked like a real nice setup and I didn't see any bullish momentum on the correction.
Went short on the close of the first arrowed bar. Got stopped out. When the doji formed below the RN I pulled the trigger again....and got stopped out again.
Was this the big boys just playing games with me? Sure looked like the corrective move was over - then off it goes again once everyone jumps in short.
Have I just been...
first draw the impulsive and corrective move on your chart and and see the last corective move where it began.it was a break of IB.and i bellive in the first thread some where in the middle of the thread i explaned how IB break will act as support or resistant(find that in the 1st thread if u can).
and it was 2 IB break with pin fail.so there is more chance next short move will fail.so if u take the chance with the trend like this only enter once if stoped out dont take any more trade at the move .wait for clear direction.
for the conservative way if u think?can u remember what i said about impulsive move in the first thread?
that corective move was no 6th move.and it did started with 2 ib break.what does it mean,it means , some reverse action or side way action will be ahead.
there is more chance price will reverse or it will move side way after the 5th move of the current trend.thats why i say this scalping methood is advance u have to have a solid understanding of atleast fib and elliot theory.
but dont worry as long as u can maintain loss and winner corectly u will be fine.draw the impulsive and corrective move u will get the idea what i am talking.its just the learning process.at least you are geting advance day by day.i am impress so far with u guys.how u guys improved so far.it takes time.remember it took me years.u guys are doing fine.just need more practice and screen time.i am glad for you guys.
good trading
sho
- #1,987
- May 11, 2010 11:26am May 11, 2010 11:26am
- Joined Jan 2010 | Status: Yet to replace my suit in black.... | 3,268 Posts
- #1,988
- May 12, 2010 6:07am May 12, 2010 6:07am
- Joined Jan 2010 | Status: Trader | 1,188 Posts
Hova its the same GU chart.we was talking yesterday.
very first and hard rule
Momentum exceeds everything.
inside bar no 1 .
why i would play that?because see the big momentum bar.and compare that with the last move .see its eaten all the 4 bars.and its against the trend and its not aginst the first impulsive move of the trend.if its first move of the trend i would have passed that trade.
than we had a nice inside bar i would have entered close of this bar with a small risk,stop is few pip under the inside bar.if i do get stoped out,i will think that, i was wrong and it was small stop.
see how two bearish bar failed(bars are green but colour bullish)
why?because momentum was upside.how would we know?the big green bar told us way before.
basicaly(not hard rule but guide).when big move happen if its with the trend and its after 5th move of the current trend than its an exhaustion move.if big move is against the current impulsive move than that is an opposite momentum move.
see area no 2.this is where we did get the divergence.so it was a warning that momentum was slowing.still we did take a trade,it was a small loss or if u closed the possition with the next bar than its a BE.
and if u can see aggresive way.your stop is allways small and profit target 1:2 reaced easily,or u can go for higher R:R.
but u will get stoped out many times.when u will win your profit will be big as well. u can go for 1:3 or more than that.
conservative entrys will be break of each signal bar.your stop is under the signal bar.you cant go for higher R:R.it reverses or give you pull back before raching your target.
because your stop will be lot bigger and it will be hard to reach your profit target.conservative way u will get higher hit rate but small profit and big stops.
know what type of trader you are.
if any signals comes take it.dont hesitate.there is allways something that will hold you back to take the good trades and there is allways somthing to take the bad trades.
my biggest problem was not to take the good trades after losing one or two.that was fear and my stop loss was big.loss was bigger than win.
most of the peoples hard earned profits markets take back because they use big stop loss.if u know how to take small loss.profit will come easily.i do get stoped out many times.but one trending days big trade is enough for those whole weeks small loss.rest is my income.
good trading to all
sho
yes,u can see momentum was changeing.how stocastic did gave you early warning.
very first and hard rule
Momentum exceeds everything.
inside bar no 1 .
why i would play that?because see the big momentum bar.and compare that with the last move .see its eaten all the 4 bars.and its against the trend and its not aginst the first impulsive move of the trend.if its first move of the trend i would have passed that trade.
than we had a nice inside bar i would have entered close of this bar with a small risk,stop is few pip under the inside bar.if i do get stoped out,i will think that, i was wrong and it was small stop.
see how two bearish bar failed(bars are green but colour bullish)
why?because momentum was upside.how would we know?the big green bar told us way before.
basicaly(not hard rule but guide).when big move happen if its with the trend and its after 5th move of the current trend than its an exhaustion move.if big move is against the current impulsive move than that is an opposite momentum move.
see area no 2.this is where we did get the divergence.so it was a warning that momentum was slowing.still we did take a trade,it was a small loss or if u closed the possition with the next bar than its a BE.
and if u can see aggresive way.your stop is allways small and profit target 1:2 reaced easily,or u can go for higher R:R.
but u will get stoped out many times.when u will win your profit will be big as well. u can go for 1:3 or more than that.
conservative entrys will be break of each signal bar.your stop is under the signal bar.you cant go for higher R:R.it reverses or give you pull back before raching your target.
because your stop will be lot bigger and it will be hard to reach your profit target.conservative way u will get higher hit rate but small profit and big stops.
know what type of trader you are.
if any signals comes take it.dont hesitate.there is allways something that will hold you back to take the good trades and there is allways somthing to take the bad trades.
my biggest problem was not to take the good trades after losing one or two.that was fear and my stop loss was big.loss was bigger than win.
most of the peoples hard earned profits markets take back because they use big stop loss.if u know how to take small loss.profit will come easily.i do get stoped out many times.but one trending days big trade is enough for those whole weeks small loss.rest is my income.
good trading to all
sho
Sho,
Just want to know whether you think it is the story behind?
- #1,989
- May 16, 2010 12:59pm May 16, 2010 12:59pm
- | Commercial User | Joined Nov 2007 | 1,079 Posts
"Can you measure how much you may have to change the way you think about trading ~ to generate consistent results?
...stop forming opinions about what you "think" the market is going to do or not do ~ and just trade your edges...
...almost all trading errors you have the potential to make are the result of thinking "you know" what is going to happen next...
...until you make a commitment to take a consistent, non-random approach to your trading, you won't even know what a trading error is...
When you come to the conclusion that it is not what you know about the markets, but rather how you think about the markets and price movement ~ then you will experience the difference between a steadily rising equity curve, and one that looks like a jagged tooth saw."
Excerpt ~ "How To Think Like a Professional Trader"
2000, 2010 Mark Douglas, All rights reserved.
...stop forming opinions about what you "think" the market is going to do or not do ~ and just trade your edges...
...almost all trading errors you have the potential to make are the result of thinking "you know" what is going to happen next...
...until you make a commitment to take a consistent, non-random approach to your trading, you won't even know what a trading error is...
When you come to the conclusion that it is not what you know about the markets, but rather how you think about the markets and price movement ~ then you will experience the difference between a steadily rising equity curve, and one that looks like a jagged tooth saw."
Excerpt ~ "How To Think Like a Professional Trader"
2000, 2010 Mark Douglas, All rights reserved.
- #1,994
- May 21, 2010 10:17am May 21, 2010 10:17am
- Joined Jan 2010 | Status: Yet to replace my suit in black.... | 3,268 Posts
Same view from a scalper. Sho's example on the 3rd successful entry would recover all the loss before.
For the sample chart above, the red bar (after the 2nd green pin) could be another good set up while it went down below the said 2nd green pin, if we played the conservative way.
For sharing
For the sample chart above, the red bar (after the 2nd green pin) could be another good set up while it went down below the said 2nd green pin, if we played the conservative way.
For sharing
i do not answer your question cause i am not Sho, but for discussion, same happens to me many times. Do you remenber the rules Sho gave to us: 2 times enter ijn this situation and if the 3. time is an A+ setup, even 3 times enter to try to catch the down move.
In your case, there was a second signal bar, after the stop loss (green bar stopped by the keltnerr band) and that one was good, no stopout
so excuse me for answer, but thats what i do many times
- #1,997
- May 23, 2010 1:29pm May 23, 2010 1:29pm
- Joined Jun 2009 | Status: Trader | 2,000 Posts
Great post, no mumbling bro it's nice..
- #1,998
- Edited 2:19pm May 23, 2010 2:07pm | Edited 2:19pm
- Joined Feb 2008 | Status: Cartographer | 1,981 Posts
Empty as water and soft as a facing wind mountain
- #2,000
- May 26, 2010 6:40am May 26, 2010 6:40am
- Joined Jan 2010 | Status: Trader | 1,188 Posts
I immerse myself with everything I can read or listen to from Mark Douglas and I know that Sho is a big believer in his teachings.
Below are the links to two interviews where Mark talks about the psychology of trading.
Mark Douglas Interview 1 - 65 mins
Mark Douglas Interview 2 - 68 mins
looks like we are both fan of mark douglas.
keep it up buddy
.TO all--
To become master in anything,it takes time and effort
same with the trading as well.
we will have losing trades.its just part of the business.try to cut them as soon as you realise its a bad trade.
learn to trust your eyes.this the best tool in trading ,and its god gifted.and it works in all market condition.
it will tell you where market is headed.if you dont trust your eyes,who you gonna blame?its allways you.
there is no gurantee that all the A++ set up will work all the time.we trade probability,nothing else.
why it would not work all the time?because ,may be at that particuler time same traders are not active,those who made money on last setups or those who trades that particuler setup are not active .but what we know is we have an edge.we will win if we trade that edge.after a series of trades we will make money.
if u are not sure about the setup why do you wanna risk your hard earn money?use your common sence.
In reality, there are always exceptions and it's learning what these are that can be the dividing line between those traders who are successful and those who fail.
allways learn from your loses.you will learn more from your loses then winning trades,.you can consider your losses a valuable learning experience.
We absolutely must have rules to live by in order to be successful traders. Following rules creates discipline.
some people try one methood after another methood.they never try to understand the methood.and eventualy they look for another one or give up trading.it reminds me a story.i think most of you know the story,still posting .
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One hot summer's day a Fox was strolling through an orchard
till he came to a bunch of Grapes just ripening on a vine which
had been trained over a lofty branch. "Just the thing to quench
my thirst," quoth he. Drawing back a few paces, he took a run and
a jump, and just missed the bunch. Turning round again with a
One, Two, Three, he jumped up, but with no greater success. Again
and again he tried after the tempting morsel, but at last had to
give it up, and walked away with his nose in the air, saying: "I
am sure they are sour."
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traiding money is like grapes from the tree .novice traders try to take the money from the market. they fail and give up trading .they will say ,oh no trading is not for me. some will say it is imposible to make money from the market.
i hope you got the point.
so if you want to be like the fox you can.its all your choice.any way no more for now.
all the best
allways stay on guard!!!!!bip bip bip...................................end