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Ridiculous Trading Myths

  • #41
  • Nov 5, 2010 12:19pm Nov 5, 2010 12:19pm
A trend is seen (analysed, identified) by way of horizontal analysis (left to right)

The only problem wityh this is that price is verticle

ok now im just making shit up

Or am I...
Time hides Nothing
  • #42
  • Nov 5, 2010 12:23pm Nov 5, 2010 12:23pm
zznbrm, you are right, certain people are more subjective while other are more objective. I don't like to guess or go on a hunch. A person has to have a defined set of rules, at least in my opinion, to have success. I like to think of my system as - if A happens then B happens, C will happen 80% of the time, that is how I approach the forex market.
  • #43
  • Nov 5, 2010 12:25pm Nov 5, 2010 12:25pm
Quoting brenzaj42
zznbrm, you are right, certain people are more subjective while other are more objective. I don't like to guess or go on a hunch. A person has to have a defined set of rules, at least in my opinion, to have success. I like to think of my system as - if A happens then B happens, C will happen 80% of the time, that is how I approach the forex market.
Nice. I am still in the process of trying to define this myself. I know what I want to do and where and even why, the hard part is working out How. I think if you dont work these things out (define them) the market and your emotions will for you (me)!

Nice posts
Time hides Nothing
  • #44
  • Nov 5, 2010 12:38pm Nov 5, 2010 12:38pm
Quoting brenzaj42
zznbrm, you are right, certain people are more subjective while other are more objective. I don't like to guess or go on a hunch. A person has to have a defined set of rules, at least in my opinion, to have success. I like to think of my system as - if A happens then B happens, C will happen 80% of the time, that is how I approach the forex market.
Just wanted to point out - before I leave the thread - that while I was having some fun regarding the horse pic, I was deadly serious in my comments about your post. I was struggling as a trader until I adopted a approach similar to yours, namely that trading the strongest currency/ies against the weakest gives the best chance of finding the strongest, cleanest trends.
  • #45
  • Nov 5, 2010 12:45pm Nov 5, 2010 12:45pm
hanover, RIGHT, it is rare that I have ever seen anyone on this forum say that. Parallel and Inverse Analysis will help a person find the strongest currency VS the weakest to ultimately give you the best trend. The trend is my friend and that is no myth.
  • #46
  • Nov 5, 2010 12:50pm Nov 5, 2010 12:50pm
Quoting brenzaj42
hanover, RIGHT, it is rare that I have ever seen anyone on this forum say that. Parallel and Inverse Analysis will help a person find the strongest currency VS the weakest to ultimately give you the best trend. The trend is my friend and that is no myth.
I like the way you said "my friend" . and not "your friend"

Because if you cant trade it it is prob your enemy.Or maybe even you're just hanging around with the wrong trend, bad influence perhaps. Doesnt mean it isnt someone elses best buddy.

Dont smoke crack kids
Time hides Nothing
  • #47
  • Nov 5, 2010 12:58pm Nov 5, 2010 12:58pm
I have too many buddies that are bad influences on me, at least I'd like to think I'm not the bad one. The trend is my one good buddy that keeps me out of trouble.
  • #48
  • Nov 5, 2010 1:00pm Nov 5, 2010 1:00pm
Quoting >Apocalypto<
you can be profitable with only 2 wins in 10 trades. for me this is myth.... the potential psychological damage of 8 straight losses and then to turn around and make two more trades and hold them both long enough to make back all the losses with some interest would be a massive mental challenge. (8L -2W is just an example there are many more scenarios to mix the wins with the losses. Hope you all can see the point being made)

for short term intraday traders hard hard hard...... for 10 trades made over a month or or more maybe do able,...
Let your winners run and cut your losses short!!!!
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  • #49
  • Nov 5, 2010 1:11pm Nov 5, 2010 1:11pm
Quoting CindyXXXX
True, but if your winner was 100 pips and your losses 5 and you could actually do this consistently then its certainlly nothing to be frowned upon. 5 pips damage 8 times is the sme as two 20 pip hits in a row.

The psychological aspect IMO only comes from how leveraged your trades are, not from winning percentage.

if you lost eight .5% trades in a row and your winner netted you 10% then this is much less psycholological impact than 2 straight 2% losses in a row and your winner netting you 10%.

Poor example I know Im too tired to do the...
Agree, i remember there is a thread somewhere that let u trade with a 2 pip sl on London open and the tp is somewhere around 140 pips.

So say 19 looses a month will get you -38 pips and one winner will make you 140 pips. so if u loose 19% on a 100$ account and than make a 140 piper u can be profitable. (i hope i did my math right)

and for psychological effect,..Demo ur method for such a period that you dont have any problem with 8 or more straight losses. So u will know ur system will bring u a runner.
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  • #50
  • Nov 5, 2010 1:18pm Nov 5, 2010 1:18pm
Money management provides an edge. It is unbelievable how many think so and I'm always asking myself why they don't beat the casino.
  • #51
  • Nov 5, 2010 1:19pm Nov 5, 2010 1:19pm
Quoting hanover
So that's a pic of horse racing in Tonga? Shouldn't the jockey be carrying a whip? Or is that just another myth?
No, that's another fantasy.
http://godammit.com/wp-content/uploa...dominatrix.jpg
  • #52
  • Nov 5, 2010 1:19pm Nov 5, 2010 1:19pm
Quoting Cobra
I mean no disrespect to nobody and their methods.

I am a daytrader with daily profit goals. I make a living from my fx trading and therefore it is important to make daily profits.
Every type of trader therefore for himself....

All i am saying is to have eg. two losing weeks followed by two winning weeks resulting in break even at month end or with a small not livable profit does not work in my books.

I have said it elsewhere that if you are in fx for 10% acc growth per year, you are probably in the wrong bussiness. You will...
I dont remember correctly but the saying goes like this.

i am not afraid that my goals are too high and i will not achieve them but they are to low and i will achieve them.


.
  • #53
  • Nov 5, 2010 1:22pm Nov 5, 2010 1:22pm
Quoting Sauron
Money management provides an edge. It is unbelievable how many think so and I'm always asking myself why they don't beat the casino.
I agree by itself theres no edge, just prolongs a slower death. Combined with a strategy though you can't deny its essential for profit maximisation
Time hides Nothing
  • #54
  • Nov 5, 2010 1:30pm Nov 5, 2010 1:30pm
Quoting nasir.khan
I dont remember correctly but the saying goes like this.

i am not afraid that my goals are too high and i will not achieve them but they are to low and i will achieve them.


.
Just saw a biography about Ted Turner of CNN. He said one of last, and most important, pieces advice his father gave him was to set unobtainable goals.
  • #55
  • Nov 5, 2010 2:04pm Nov 5, 2010 2:04pm
What About ... Trend is Your Friend Till it Bends
  • #56
  • Nov 5, 2010 2:20pm Nov 5, 2010 2:20pm
Quoting spekitox

She?
Yes. The market is irrational. Therefore: "she".
  • #57
  • Nov 5, 2010 4:07pm Nov 5, 2010 4:07pm
sorry i think it just don't work, if you cut loss only for 5 pips then how can

you expect to get profit for 100 pips ? yeah sure there's always a chance ( a

small one ), it will happen when the price go straight one way up/down for

100 pips just after you enter position, so how many real trades have you

experienced like this ?


Quoting CindyXXXX
True, but if your winner was 100 pips and your losses 5 and you could actually do this consistently then its certainlly nothing to be frowned upon. 5 pips damage 8 times is the sme as two 20 pip hits in a row.

The psychological aspect IMO only comes from how leveraged your trades are, not from winning percentage.

if you lost eight .5% trades in a row and your winner netted you 10% then this is much less psycholological impact than 2 straight 2% losses in a row and your winner netting you 10%.

Poor example I know Im too tired to do the correct...
  • #58
  • Nov 5, 2010 5:45pm Nov 5, 2010 5:45pm
Support/Resistance, because Support/Resistance defies Support/Resistance.
The nail that sticks out gets hammered back in
  • #59
  • Nov 5, 2010 6:02pm Nov 5, 2010 6:02pm
Quoting zznbrm
Also regarding trending...

Market trends 25% of the time and ranges 75% of the time.
On which time frame? Because at any given time each timeframe has it's own world view. You may not have a trend on weekly but you could on daily. Or not on daily but on hourly.

That is actually one of the keys to my trading style. I try only trade the timeframe that is trending but I do not limit myself to which timeframe that could be. I will trade weekly all the way down to 5min timeframes. Depending on which looks the most trendy and least volatile to me.
  • #60
  • Nov 5, 2010 6:04pm Nov 5, 2010 6:04pm
87% of statistics on the internet are made up on the spot



I just think that you can't generalise things with just one saying, for instance, the trend is sometimes your friend, other times its your worst enemy!
The art of being wise is knowing what to overlook
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