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Trade What You See - Almost Naked Trading

  • #15,381
  • May 29, 2011 9:49am May 29, 2011 9:49am
Quoting Patso
Yeah, me to Fitness, I don't really have an "excuse." I just haven't been following the "rules" strictly, like I should.
The problems I am having are 1. I am entering on the set up, not the trigger. I figured that out when LG posted her rules on 3 Taps a few pages back. I usually take the trade when all 3 RSI are in the same direction, and there is a 3 tap line drawn. I think the PA movement, or lack there of, is what is getting me. And 2. almost every trade I left open over night, went negative 60-75 pips. I set a 100 pip SL, but eventually the do get to that.

We'll just have to be more disciplined and work on this stuff.
  • #15,382
  • May 29, 2011 9:52am May 29, 2011 9:52am
  •  sam21
  • | Joined Aug 2010 | Status: Soon to be employed by the market | 125 Posts
Hey there lawgirl realy interested thread you have here
  • #15,383
  • May 29, 2011 9:57am May 29, 2011 9:57am
Quoting Fitness09
The problems I am having are 1. I am entering on the set up, not the trigger. I figured that out when LG posted her rules on 3 Taps a few pages back. I usually take the trade when all 3 RSI are in the same direction, and there is a 3 tap line drawn. I think the PA movement, or lack there of, is what is getting me. And 2. almost every trade I left open over night, went negative 60-75 pips. I set a 100 pip SL, but eventually the do get to that.

We'll just have to be more disciplined and work on this stuff.
I am so glad you analyzed what you are doing and found the problem. That is a very common mistake, I do it too still sometimes.

It has appeared to me for the past couple of weeks that 3 Taps on H4 charts are often 3 Taps on the daily chart also. I am going to check that out in a few minutes when I start studying charts, but I seem to remember that happening more and more.
  • #15,384
  • May 29, 2011 10:06am May 29, 2011 10:06am
A quick look back at the last 3 weeks for 3 Tap H4 setups reveals many and only one that did not have a trigger. Just trading that pair and following it closely would have made hundreds of pips.
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  • #15,385
  • May 29, 2011 10:12am May 29, 2011 10:12am
Quoting Fitness09
The problems I am having are 1. I am entering on the set up, not the trigger. I figured that out when LG posted her rules on 3 Taps a few pages back. I usually take the trade when all 3 RSI are in the same direction, and there is a 3 tap line drawn. I think the PA movement, or lack there of, is what is getting me. And 2. almost every trade I left open over night, went negative 60-75 pips. I set a 100 pip SL, but eventually the do get to that.

We'll just have to be more disciplined and work on this stuff.
"The average chart reader, however, is apt to become obsessed with the notion that the dips and peaks and primary and secondary movements are all there is to stock speculation. If he pushes his confidence to its logical limit he is bound to go broke. There is an extremely able man, a former partner of a well-known Stock Exchange house, who is really a trained mathematician. He is a graduate of a famous technical school. He devised charts based upon a very careful and minute study of the behavior of prices in many markets stocks, bonds, grain, cotton, money, and so on. He went back years and years and traced the correlations and seasonal movements oh, everything. He used his charts in his stock trading for years. What he really did was to take advantage of some highly intelligent averaging. They tell me he won regularly until the World War knocked all precedents into a cocked hat. I heard that he and his large following lost millions before they desisted. But not even a world war can keep the stock market from being a bull market when conditions are bullish, or a bear market when conditions are bearish. And all a man needs to know to make money is to appraise conditions." - Jesse Livermore
The Thief of Wall Street
  • #15,386
  • May 29, 2011 10:19am May 29, 2011 10:19am
Quoting Chicky
[size=2]"The average chart reader, however, is apt to become obsessed with the notion [color=black]that the dips and peaks and primary and secondary movements are all there is to stock speculation. If he pushes his confidence to its logical limit he is bound to go broke. There is an extremely able man, a former partner of a well-known Stock Exchange house, who is really a trained mathematician. He is a graduate of a famous technical school. He devised charts based upon a very careful and minute study of the behavior of prices...
You like Livermore too! As do I, not as a man, but as a trader..have read everything I can about him.

He sent out market "probes" or "scouts" as a major part of his trading...kind of like we are doing with our daily trades and the 30 pip SL.
  • #15,387
  • May 29, 2011 10:30am May 29, 2011 10:30am
Quoting lawgirl21
You like Livermore too! As do I, not as a man, but as a trader..have read everything I can about him.

He sent out market "probes" or "scouts" as a major part of his trading...kind of like we are doing with our daily trades and the 30 pip SL.
I did some research on his trading and like few of his techniques. Kindly do remember that he was basically a commodity and stock trader, and not a currency trader. Forex is a different market and we are living in different times with advanced technology. However, some of his money management tactics are worth checking.

Posted his quote on this thread because of its relevance to this thread's title. If its bull market, its a bull market. If its bear market, its a bear market. Trade what you see.
The Thief of Wall Street
  • #15,388
  • May 29, 2011 10:34am May 29, 2011 10:34am
  •  sam21
  • | Joined Aug 2010 | Status: Soon to be employed by the market | 125 Posts
question: when the trend line is tap for the third time wewait for the candle to close and a break to the desired direction.


reason i ask i am not sure what the trigger is....
  • #15,389
  • Edited 10:47am May 29, 2011 10:35am | Edited 10:47am
Quoting sam21
question: when the trend line is tap for the third time wewait for the candle to close and a break to the desired direction
Where's the question?

ps - got it.

Yes, many do wait for the candle close but this close is not conclusive. Many times a candle closes above a resistance but still falls back and continues going down. Waiting to confirm the break out is prudent. But do note when it happens. Normally a critical candle close happens at the open or close of a trading session (NY, Asia, London, etc.). If this happens at this point, it is wise to wait and see how that open takes it.

Also check which level (s/r) has been taken out by this close and with what force. A strong move taking out a significant level is more likely to survive.
The Thief of Wall Street
  • #15,390
  • May 29, 2011 10:40am May 29, 2011 10:40am
  •  sam21
  • | Joined Aug 2010 | Status: Soon to be employed by the market | 125 Posts
i dont understand the trugger for the trade clearly
  • #15,391
  • Edited 11:01am May 29, 2011 10:48am | Edited 11:01am
Quoting Chicky
I did some research on his trading and like few of his techniques. Kindly do remember that he was basically a commodity and stock trader, and not a currency trader. Forex is a different market and we are living in different times with advanced technology. However, some of his money management tactics are worth checking.

Posted his quote on this thread because of its relevance to this thread's title. If its bull market, its a bull market. If its bear market, its a bear market. Trade what you see.
Yes, I understand that he did not trade currencies, but some of his trading principles are equally applicable to currency trading. His trading has helped me personally in my trading more than anyone dead or alive..but you are correct, as was he almost a hundred years ago. a bull market is a bull market and a bear market is just that..we can't change it so we just go with it. Thanks for your imput.
  • #15,392
  • May 29, 2011 10:57am May 29, 2011 10:57am
I recently started caming my trades and posting to youtube. My system is very, very simple. Check it out and if you want me to elaborate I will.

Inserted Video


Please excuse the volume, just turn your volume up and use 720P to see my chart clearly. I take you through a profitable trade in real time using my simple multiple timeframe methodology.
  • #15,393
  • Edited 11:22am May 29, 2011 10:58am | Edited 11:22am
Since we are talking about him... here are what he considered his most important rules and in this order:

1. Decide on the overall direction of the market. Be sure of the basic trend. It is the line of least resistence.

2. Develop a entry strategy. Probe the market. Test it by trading small positions first. Do not rush in with your whole position until the market is tested this way first.

3. Be patient and wait for the move to play out. i.e. number 2 above.

Livermore first started using this approach in 1906. He used it for the remainder of his trading career. He credited this strategy for his success.

Notice, dear traders, that we are also following this strategy!
  • #15,394
  • May 29, 2011 11:10am May 29, 2011 11:10am
  •  sam21
  • | Joined Aug 2010 | Status: Soon to be employed by the market | 125 Posts
Is it ok to use this methon on the H1 or is it to noise....
  • #15,395
  • May 29, 2011 11:21am May 29, 2011 11:21am
Quoting sam21
i dont understand the trugger for the trade clearly

The very interesting thing about 3 Taps is that we "find" them, we cannot generally anticipate them. We find them because we are looking for them AFTER the RSIs are telling us to look for them (confirming direction).

That confirmation of direction is like a neon sign flashing "look for 3 Taps, because conditions are ripe for them!....look for 3 Taps, because conditions, etc." So we do what we are told and go looking.

When we find a good 3 Tap line (remember, a 3 Tap is just a trend line..generally with wave action taking place between the taps..but not always or necessary) it may already be triggered and we have to determine if we want to enter or not depending on lots of factors that I really cannot teach a trader, but mainly on PA and how far into the H4 candle it is at the time.

But we might find just the setup with no trigger and have to wait until the next candle to determine what PA is going to do before we enter.

Never enter a long trade on a short (red) candle. Never enter a short trade on a long (green) candle.

Summary:
A 3 Tap long with third tap on a short candle = setup but no trigger
A 3 Tap long with third tap on a long candle = setup and trigger
[opposite for 3 Tap short]

Entry is just that simple....and just that complicated.
  • #15,396
  • May 29, 2011 11:32am May 29, 2011 11:32am
  •  sam21
  • | Joined Aug 2010 | Status: Soon to be employed by the market | 125 Posts
Thank you LG now i get it apreciate that
  • #15,397
  • May 29, 2011 11:56am May 29, 2011 11:56am
Quoting sam21
Thank you LG now i get it apreciate that
You are very welcome!
  • #15,398
  • May 29, 2011 12:00pm May 29, 2011 12:00pm
Take a look at this beautiful 3 Tap Weekly setup and trigger. However, since it triggered last week, we would have to determine by PA on the next candle whether or not to enter at this point on the weekly chart.
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  • #15,399
  • May 29, 2011 12:13pm May 29, 2011 12:13pm
Quoting lawgirl21
No, TSD, it was a daily chart entry with 30 pip SL. I closed the trade with 115 pips when I closed all my trades.

Yes, I see the trade on the EC Daily.( nice trade by BTW ). I was referring to the GU trade long. Looks like it a BO trade on the 1H...Per the chart shown... I see the entry hence why I asked did you take in the 15M the change the chart back to the 1H as your entry appears to be on one of the 2 break outs long. Have I missed something ?

Thanks
  • #15,400
  • May 29, 2011 1:42pm May 29, 2011 1:42pm
Quoting TraderinSD
Yes, I see the trade on the EC Daily.( nice trade by BTW ). I was referring to the GU trade long. Looks like it a BO trade on the 1H...Per the chart shown... I see the entry hence why I asked did you take in the 15M the change the chart back to the 1H as your entry appears to be on one of the 2 break outs long. Have I missed something ?

Thanks
No, I was talking about the GU trade..from the daily.
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