Building an equity millipede

Hi all,
This thread is already a gold mine as it is. If one takes the time to go through each one of Graeme's posts, especially the first few pages, and write down by hand on a separate sheet of paper every sentence he either underlined or bolded, then, as far as this method/strategy goes, he'll be set for life. Look at those statements more like Commandments than steps to follow blindly and you'll be well into your way to forex heaven. Let's not forget that just finding a gold mine does not guarantee wealth. One still needs to have the tools, will and time to extract the gold.
If you're new to this thread, I suggest you read and reread Warburg's post #645 at least ten times before you even start from page one. I believe it makes a great introduction to Graeme's wonderful work. Cheers.

Thank you

Love this thread! Your consistent advice to "Go with the flow" has really helped me. The flow might be counter trend for a few days or who knows - could be a new trend in the works!
I've got ten legs going on two accounts right now! Thanks sooo much for your time and input. Subscribed to this thread so I dont miss anything later.

Thank you all for the pms and compliments.

I sincerely hope my hastily departure did not lessen your appetite for success in forex. What I experienced on first hand from showing/teaching just over a month is how frustrating it is to hold a thread that has only good intention to teach. I understand learning is a two way process and asking healthy questions are part of the readers enlightment. However, when different readers/traders with different skill level and all with different perspective asking their own questions does throw the intended flow of teaching off balance. There is no such thing as bad questions and certainly this is not the readers fault but I place most blame on myself.

I feel obliged to a certain degree to help fellow traders to see success in forex. There is no financial motivation for such deeds nor do I bask in the glory of being acknowledged in a public forum. Infact I shun the limelight and have no intention to mingle with so-called other professional traders and scratch each others back. I simply do what I try to do because I genuinely care.

Believe me when I say that forum is far more chaotic than the market itself. I urge and request all readers to think for yourself and to act for yourself. Perhaps I can save a few. Information from forum can be helpful but could also be destructive. Stay away from forums as there is nothing interesting here. You do not have to trust me either but I request that you act/think for yourself. It is the only way to learn.

I hope I had placed enough efforts in my last 270+ posts that might merit another reading from you. Even though each post seemingly looks lengthy, there are great thoughts behind sentences that I have highlighted and underlined. There is a meaning within the meaning which would lead a reader to a related discovery.

In the last week, I attended a part seminar held in Sydney of a trader I have personally met in one of the GFT broker meetings few years ago. It was quiet surreal to see a trader before and after success. I duly note his humbleness and amazed to see that he has retained his calm collected attitude. He did not brag or force his points across, infact it was the other attendees who was trying to bash him down. No doubt we see this ill human behavior anywhere there is a public discussion. It was a relatively short but remarkable seminar and I applauded him from the back of the room. I have no doubt he is a successful trader and he has reached that level by thinking about forex while eating, working, dreaming everyday.

What I want to say today once again is that there is too much useless information. You do not need to know 200 things in forex to be successful. You only need to know just 1 thing for certain to make millions.

This 1 thing can be 1 entry method that you can vouch with your life.
This 1 thing can be 1 price pattern that works almost all the time.
This 1 thing can be the correct perspective you hold as a real trader.

The rest? Market will decide and reward you or not. And if the market doesn’t reward you, don’t be disappointed. You cannot tame the market but keep following it. Soon it will notice you and reward you. The reward is definitely worth the pain/wait/perseverance.

Please allow me today to throw some cold reality into your thoughts.

Human perception and focal interpretation is very interesting. You will only believe what you choose to see. And you cannot do any type of ‘choosing’ in the markets, only follow it.

The dancing girl on the bottom revolves left or right?

http://img205.imageshack.us/img205/1036/braintest.gif


This is similar to what happens in traders focal interpretation. They use same indicators, trendlines, fibs but some days they see the dancing girl spinning left and some days they see the dancing girl spinning right. They are choosing based on the condition of their focal interpretation of the day. That’s why it’s so confusing as the day goes. Someone who knows what to look for, can actually force their focal interpretation so they can see the girl spinning left or girl spinning right at their own will. This is what traders need to do in the markets. Even when RSI is showing overbought, trendline broken, but your focal interpretation must be stronger and actually bend the markets sentiment into your own vision/understanding and then exercise an unbiased but true judgment in your executions.


Sincerely,

Graeme

Please allow me to show the readers something that I use everyday.

Did you know candlesticks are confusing for me? And I prefer not to use them nowadays.

http://img39.imageshack.us/img39/3168/93939282.png

I can still interpret most of the price action on the chart but now I have reached a level where I focus on bigger picture. This is what big managements do. They dont/cant concentrate on rows of candles at a time, as they control too much money, they usually bet big on already established trends. Also they know increased risk does not increase reward hence look for opportunties that will be prolonged.

http://img72.imageshack.us/img72/6919/46696786.png

What do you see????

Have you ever considered just using ema??

Why not?

http://img687.imageshack.us/img687/5247/41929778.png

http://img37.imageshack.us/img37/7040/74493461.png

When you add them together.

10 ema becomes the direction AND
5 ema becomes the real price of the movement.

If price is at 5 ema or higher then its considered worth buying into as this would be retail price.

http://img153.imageshack.us/img153/509/77490992.png

See how candles respect 5 ema.

Im interested when price touches back to 5ema.

BUT sometimes the price moves so strongly it might not come back to 5ema for some time.

You need to find a balance in between.

http://img189.imageshack.us/img189/5647/77300594.png

So how do we base entries?

By looking at 1 ema close or line graph.

http://img839.imageshack.us/img839/3778/80453139.png

See how trendlines, pennants, s/r is also respected well on line graph and higher timeframe.

http://img716.imageshack.us/img716/5313/12473557.png

Have you ever wondered how the pros only use buy/sell stop orders? This is one of the ways they do it.

When you combine. It shows the trend, strength of trend, dips/retrace very clearly. Can you agree that it is better without the candles?

http://img820.imageshack.us/img820/1433/66517215.png

http://img208.imageshack.us/img208/6392/39821579.png

Just the approximate area is all a trader needs.

Large management would also look for the same. They look for opportunities that will be prolonged. Cause its not easy moving around billions at a time.

http://img40.imageshack.us/img40/7643/17254909.png

This is another method for the readers.

http://img690.imageshack.us/img690/2252/36479741.png

Used by many professionals

Once again thank you for the personal messages.

They have been uplifting. Thank you to all.

This thread was initially started with intention of only 5-7 pages but now its coming towards 50 pages.

I understand readers are here to learn but I admit I cannot teach 'effectively' in a forum environment.

What I am planning to do is compile a very concise reading material with great planning.

Please allow 1-2 months.

I hope this reading material that I compile will help a jogger to run and then to fly. It will have an open ending so everyone's input can be added into it with updates. More or less wikipedia style. I believe this will be the most effective form to show you in a one straight line from start to finish and answering any questions on the way.

I assure everyone that I am not forcing you to follow my method but it disheartens to see so much useless information and potential traders soaking up ill information. All I represent in my posts is how the market moves and how we 'could' 'should' participate with it.

Im not the teacher but the market is.

Look forward to collaborating with everyone once the material is ready.

Till then please keep an open mind and let the market tell you what to do.

The last few charts hopefully add a different perspective to what most traders see. It is a very true and similar method used by fund managements, it was contributed by my son.

Kindest Regards,

G.S

By now I assume everyone is well into building their legs... if not,, what are you waiting for??

Graeme,

Welcome back. Last few posts again prove that what an asset your teachings are. You keep on amazing me.

So glad to have you back!!!

pillager.

Graeme,

Thanks for coming back to share even more! It is really amazing. And like a breath of fresh air. To see your willingness to share and help others for no other reason except to see them prosper in their trading. We really appreciate that.

Kind regards,

Bruce

Ditto !!!! ... Welcome back Graeme....

You have a remarkable ability to present the Mrkt in such a different & thought-provoking way which, when I read your comments, continues to create those "Aha!!" moments.......... !!

Have you ever considered becoming a teacher