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Ken's Continuing Successes with EO's system

  • #1,441
  • Jul 21, 2010 11:55am Jul 21, 2010 11:55am
chart
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Good Trading To All ; Ken Lee
  • #1,442
  • Jul 21, 2010 2:19pm Jul 21, 2010 2:19pm
Hello

Always it`s nice to see your analysis Ken.
Being very busy lately and trade ocassionaly.
I hope all of you guys trade well.

Cheers to you Ken and to your pregnant sister.
  • #1,443
  • Edited 10:55am Jul 23, 2010 10:30am | Edited 10:55am
I was chatting with my sister this morning and I was stunned . By the fact she was confused about swings on the chart. I understand for most this is some of the most basic information we learn right out of the gate.

But she said everytime someone posted a chart they had arrow pointed at a candle . So she was thinking it was something to do with one candle. .. Anyway I thought a little review may be in order.. Had a decent ascending triangle on the gbp yesterday which is a great example of why higher lows mean up.
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Good Trading To All ; Ken Lee
  • #1,444
  • Jul 23, 2010 10:51am Jul 23, 2010 10:51am
Quoting Kenneth Lee
I was chatting with my sister this morning and I was stunned . Byt the fact she was confused about swings on the chart. I understand for most this is some of the most basic information we learn right out of the gate.

But she said everytime someone posted a chart they had arrow pointed at a candle . So she was thinking it was something to do with one candle. .. Anyway I thought a little review may be in order.. Had a decent ascending triangle on the gbp yesterday which is a great example of why higher lows mena up.
Hi Kenneth,

thank you for you diligence in posting and explaining - re-explaining... I have added some elements to my trading of S/R 1Hr / 15mins and the results are amazing.

Wishing your sister a healthy bouncy little one.

Again, thanks for your postings
P
  • #1,445
  • Jul 23, 2010 1:56pm Jul 23, 2010 1:56pm
Quoting Kenneth Lee
I was chatting with my sister this morning and I was stunned . By the fact she was confused about swings on the chart. I understand for most this is some of the most basic information we learn right out of the gate.

But she said everytime someone posted a chart they had arrow pointed at a candle . So she was thinking it was something to do with one candle. .. Anyway I thought a little review may be in order.. Had a decent ascending triangle on the gbp yesterday which is a great example of why higher lows mean up.
Actually I was pretty confused about swings as well for a while. I pretty much knew what it was, but if you google it youre gonna get a lot of different takes on what a swing is. So the best definiton i'v heard is just that if it looks like a swing, then it is. Simple enough.

Thanks for posting! It all makes a little bit more sence each time I read through the pdf.

Have a great weekend all!
  • #1,446
  • Jul 23, 2010 10:46pm Jul 23, 2010 10:46pm
more on swings
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Good Trading To All ; Ken Lee
  • #1,447
  • Jul 23, 2010 11:04pm Jul 23, 2010 11:04pm
and
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Good Trading To All ; Ken Lee
  • #1,448
  • Jul 26, 2010 7:37am Jul 26, 2010 7:37am
Hi ken

first of all i wanted to thank u for the advice. Ed Ponsi's book was very interesting... especially for the part where he wrote about the odds of small trades.
For the ones who didn't read this book (which i definitely suggest to everybody) i will briefly explain what he wrote:
when somebody enter a trade with very small S/L and T/P (10 pips each), commission plays a very important role. In other words if there are 3 pips commission, the S/L will result in a loss of 13 pips, while the T/P will result in a gain of 7 pips. The odds of this kind of trade are 13:7 which are almost equal to 2:1 (1,8:1) against us. Therefore having a S/L of 100 pips and T/P of 100 will have the probability of 103:97 (in other words 1,06:1)... so as everybody can see, the odds increase dramatically in our favour and near to 50% possibilities. Of course the whole concept itself doesn't consider anything like support and resistence, but still it is very useful to know, especially for the ones like me who really struggle to put larger order. Of course i am not saying that every trade should have 100 pips S/L or TP, but with a good money management we can set some larger targets for each trade.

Anyway... back to the reason why i wrote this post... i wanted to ask for some other GOOD book to read about trading, where there are some more insight about trendlines, how to use them, and all the possible figures like triangles, boxes, wedges and so on

thank u in advance!!

and keep posting here.... i always follow your trades and all your ideas!!
I don't want a job, i want money!
  • #1,449
  • Jul 26, 2010 7:58am Jul 26, 2010 7:58am
Quoting dario1002
Hi ken

first of all i wanted to thank u for the advice. Ed Ponsi's book was very interesting... especially for the part where he wrote about the odds of small trades.
For the ones who didn't read this book (which i definitely suggest to everybody) i will briefly explain what he wrote:
when somebody enter a trade with very small S/L and T/P (10 pips each), commission plays a very important role. In other words if there are 3 pips commission, the S/L will result in a loss of 13 pips, while...
It's very true what you say about smaller trades. The spread is very much against you.

Personally I call it the spread swing. If you have a spread of 4 pips, the total swing you need to get a 1:1 risk against reward trade is 8 pips plus the target.

However, this begins to reduce rapidly if your stop and target is 20, 30 or 40 pips and the spread becomes a smaller % of the trade.

For 10 pip trades, I only ever trade EU with a 1.6 pip spread. This is still a 3.2 pip swing but it's less of a problem if you have an 80% winning strategy. You will win out despite the spread being against you.

These are things we should all keep in mind but they shouldn't define how we trade. A strategy that wins out ragrdless of factors against it is the most important thing of all.
  • #1,450
  • Jul 26, 2010 8:58am Jul 26, 2010 8:58am
Quoting Trotty
It's very true what you say about smaller trades. The spread is very much against you.

Personally I call it the spread swing. If you have a spread of 4 pips, the total swing you need to get a 1:1 risk against reward trade is 8 pips plus the target.

However, this begins to reduce rapidly if your stop and target is 20, 30 or 40 pips and the spread becomes a smaller % of the trade.

For 10 pip trades, I only ever trade EU with a 1.6 pip spread. This is still a 3.2 pip swing but it's less of a problem if you have an 80% winning strategy....

Yes and on Oanda E/U spread is .9 less than 1 pip. GBP is only 2.1 So is relative . But what I think Ed is talking of is a ECN broker wherre you can pay a spread plus commison based on your positon size. The saving grace in those types of brokers is that at times you can actually get a negative spread from them to time as a order goes unfilled as price passes it.

Those are more advanced type trading brokers which we you will learn of as you start trading bigger money. but it generally works out to about the same as fixed spreads. I personally on my presets , Use 13 on stop and 47 on TP. Those are there if price should move so quick I have no time to adjust them after the order is filled. I find I am happy with either if it happens that quicklly. If it hits my stop I was probabbly wrong about my entry and if it hits my tp that quick may have just been a emotional candle and could pull back just as fast.
Good Trading To All ; Ken Lee
  • #1,451
  • Jul 27, 2010 2:07am Jul 27, 2010 2:07am
So guys... anybody who can advice some good book to read?????
I don't want a job, i want money!
  • #1,452
  • Jul 27, 2010 2:20am Jul 27, 2010 2:20am
Quoting dario1002
So guys... anybody who can advice some good book to read?????
Check out this one http://www.kerryspackman.com/ "The winners bible", not about trading, but has helped me with trading.
FF journal: Peaks and Troffs
  • #1,453
  • Jul 27, 2010 5:40am Jul 27, 2010 5:40am
Quoting dario1002
So guys... anybody who can advice some good book to read?????
I personaly, Have not read many books on trading. I have found most of my information in threads a little here and there. Most times when I look at books very soon into them I see they are going in a different direction than I am interested in. So I don't read them . But just skip around and grab bits of information here and there.

I am personally only interested in what I can see on a chart without having to have any indicators to tell me what to think. Almsot everyone likes to have at least something to confirm thier thoughts . The most basic and vaulable I quess would be volume and RSI. The other used a lot is something to show divergence. Like Stochastiches or the such.

But I still believe that you can see pretty much everything with hardly any thing at all if you stop and think a moment. We find ourselves in bad trades 9 out of 10 time mainly just due to not waiting or looking. I know for myself that it only takes a moment after a bad entry to realize that.

Once you start to understand price Action ( how price is unfolding on your charts ) You will also start to see that every system out there is pretty much using that as well to some extent. Even using a indicator as they are just mathamtical formulas that produce pretty lines and colors.

My personal hang up in trading as been the mental aspect and I have come to believe that for most traders that is where the true problem lies. Some may not even believe or think they have a issue which is why they never overcome this part of trading. Without personal honesty and a good look inwards we can't see that the issue is not trading but how we are reacting to what we see.

Trading itself is nothing more than a mechanical response to a set of parameters. Like anything else in life A + B = C 99% of the time . The problem lies in the fact that as humans we don't believe in most things that are simple. It can't be this easy to make money and with that thought it isn't. Or the emotion that we have to make such and such % every week to pay the bills makes us make bad choices. Stress can run high in this game. But as maybe you have seen or know someone that has "Made IT " Once you conquer this part of trading it can change everything in your life. Making it wonderfull and very stress free.

Being able to make a income equal to how much effort you want to put into it. Then not having to deal with the whims of the economy or other peoples emotions. Dealing with bosses and customers how can the stress to doing this even compare. LOL.

So I guess what I am trying to get at. Is to maybe study some self discipline books on being in control of how you think and act especially regarding trading.

Trading in the Zone , Emotion free trading. These are both good books , The first shows why due to our upbringing we can have self destructive behavour and not do the right thing when we Know it is right. The second is more geared to showing us how we can actually modifiy our thinking and our emotions to make the right choices and as is quoted in the book " Act in your own best interest"

Another one of my favorite books on this subject is Think and Grow rich.
Another book on mental subjectivity and how other very successfull people have used the power of the mind to focus and achieve remarkable results in thier lifes.

Sorry if some feel this is off topic but . To me this has been my greatest demon that I continue to battle "self control". Even doing the wrong thing at the wrong time and knowing your doing it is such a self destructive thing emotionally. That if I could help one person not go through that I would be happier than teaching a thousand how to take good entries.

Anyway that is my only advise on reading. There are so many trading systems out there anyone that could help you achieve your finacial goals with the proper attitude. Ponsi's book was pretty much one of the only few I have read that stayed on course for me on how I want to trade and even then there as in everything parts I wouldn't totally agree to. But by the most part it was very well on point.

Just whatever you do don't jump from one thing to another, trying to become professional on even one trading idea is hard enough but trying to become a expert of many at once is unimaginable.

Trade happy and Well. Ken

PS. This is just my 2 cents worth .
Good Trading To All ; Ken Lee
  • #1,454
  • Jul 27, 2010 6:00am Jul 27, 2010 6:00am
Quoting Kenneth Lee
I personaly, Have not read many books on trading. I have found most of my information in threads a little here and there. Most times when I look at books very soon into them I see they are going in a different direction than I am interested in. So I don't read them . But just skip around and grab bits of information here and there.

I am personally only interested in what I can see on a chart without having to have any indicators to tell me what to think. Almsot everyone likes to have at least something to confirm thier thoughts . The most basic...
Hey Ken

First of all i wanted to thank u for the answer... and i perfectly understood and appreciate what u said. The main reason why i asked u again for some book was.. because i find it more interesting to read while waiting for the proper setup, instead of watching a movie or unconsciously, get bored and start to "see what i want to see" on the chart, instead of looking at it for what it is telling me. Here on there on FF there are many interesting stuff but frankly i get sometimes bored to read that everybody is long when price goes up and everybody is short when price goes down... there are many fools around here and i have to admit that i can't really understand when somebody is just fooling around and telling crap, or when somebody is making a good analysis... even if it provides to play wrong.
So, back to the "self destruction", reading about something interesting helps me to reduce the percentage of damage i can do myself by babysitting the charts all the time and wait and get anxious and frustrated.

anyway.. thank u for all your work done on this thread... and keep going man!!
I don't want a job, i want money!
  • #1,455
  • Edited 6:48am Jul 27, 2010 6:18am | Edited 6:48am
Quoting dario1002
Hey Ken

First of all i wanted to thank u for the answer... and i perfectly understood and appreciate what u said. The main reason why i asked u again for some book was.. because i find it more interesting to read while waiting for the proper setup, instead of watching a movie or unconsciously, get bored and start to "see what i want to see" on the chart, instead of looking at it for what it is telling me. Here on there on FF there are many interesting stuff but frankly i get sometimes bored to read that everybody is long when price goes up and...

To help from seeing what isn't there try making marks and notes on your chart . I know some platforms Oanda is one don't have many charting tools. But you can do loads of stuff with just a trendline tool draw arrows and areas of interest.

Or even copy a chart and open in paint and make notes there. This will help you learn what to look for.

Plus make yourself a small check list like a preflight list. Is the swings supporting the direction, has price moved into a trading zone. Are we in a trading zone off the higher time frame charts. How many time frame charts are agreeing on direction ,, etc...

Once you get a "Feel" for how you trade, you will also know after the last trade about how long it will be before the next setup , So you can set a alarm on your computor. http://www.nakedalarmclock.com/ And not just stare into the little glowing thing. having a clear mind can help keep you on track.

One reason some of the best traders out there are. is because they set alarm at certian price levels http://www.alertfx.com/ then just look for entries when price has reached thier points of interest. Of course this all becomes easier with time.

But try not to see the faries in the garden. They can lead you astray, Ken
Good Trading To All ; Ken Lee
  • #1,456
  • Jul 27, 2010 8:09am Jul 27, 2010 8:09am
Well said Ken. When I am baby sitting with the computer, I would prefer to read your thread and definitely no boring at all.. Sometime miss the good setup too

Eric

Quoting Kenneth Lee
I personaly........

Once you start to understand price Action ( how price is unfolding on your charts ) You will also start to see that every system out there is pretty much using that as well to some extent. Even using a indicator as they are just mathamtical formulas that produce pretty lines and colors.
............

So I guess what I am trying to get at. Is to maybe study some self discipline books on being in control of how you think and act especially regarding trading.
................
  • #1,457
  • Jul 27, 2010 11:18pm Jul 27, 2010 11:18pm
Quoting Kenneth Lee
more on swings
Hi Ken,

I want to know more about candle wicks in terms of PA.
  • #1,458
  • Jul 28, 2010 12:34am Jul 28, 2010 12:34am
Hi Ken

Hope you're doing fine. - GU, EU and EY seem to deal with major resistances. This usually means very choppy PA. Does this have any influence on your trading?

Trade well!
  • #1,459
  • Jul 28, 2010 1:40am Jul 28, 2010 1:40am
Quoting Kenneth Lee
...Once you get a "Feel" for how you trade, you will also know after the last trade about how long it will be before the next setup , So you can set a alarm on your computor. http://www.nakedalarmclock.com/ And not just stare into the little glowing thing. having a clear mind can help keep you on track.

One reason some of the best traders out there are. is because they set alarm at certian price levels http://www.alertfx.com/ then just look for entries when price has reached thier points of interest. Of course this all...
Here is something interesting about "Alerts" for the users of MT4 platform:

http://articles.mql4.com/190

"Alerts" can produce sound or send e-mail when the price comes to the certain level or when at the certain time.

I hope that someone will find that piece of information useful http://cdn.forexfactory.com/images/s.../yim/happy.gif
  • #1,460
  • Jul 28, 2010 4:03am Jul 28, 2010 4:03am
I have been reading Trading in the Zone for the past week. I seriously feel like I've had an 'ah ha' moment. Patience and knowing that I can wait to get in at a better price is one thing I have just figured out. Now I just need to learn to take profit. Understanding not only my emotions, but the emotions of the market I think will help my trading. Great posts, Ken. Good to see this thread continuing!
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