Trading Made Simple

Hi dcginc! First of all I want to thank you for great threads you post....
Here are the links !


Lesson 1

Lesson 2

Lesson 3

Lesson 4

Lesson 5

Lesson 6


Enjoy the weekend everybody!

I only trade 4h TF, thats the TF i'm most comfortable with that, and use the Daily TF to look for a trend using a SHI channel.
I trade USD/CHF , EUR/USD, GBP/USD, GBP/CHF, NZD/USD, EUR/GBP, AUD,USD. I look for pairs that has nice huge waves that I can ride. If its choppy then I stay away from that pair.

I ask a few questions about an indicator (Watchdog) that can help some of us newbies at the start get used to the whole 'angle 12-2, 4-6' entry subject and people post comments about 'sticking to the thread subject'.

I have a lot of respect for what Big E has created but even Big E (around page 500) mentioned he has an indicator on his chart that shows a dotted orange line every 100 pips so it would appear that 'some' indicators may be suitable for posts for this simple system.

Currently I've read 7667 posts (upto page 512) and the majority of them are NOT posts showing results or thanking Big E for his system. The majority are posts from people who've found this thread and have a legitimate question and are asking for advice because let's be honest, the Trading Made Simple appears to be great (I've only just started so I can't 'swear' to it yet but it looks good on backtesting so far) BUT one persons idea of simple does not mean it is simple for everyone to understand at the start.

Different people have different levels of education, even Americans and Brits speak a different 'type' of English so a bit of understanding should be applied before firing off dismissive posts.

Take the whole 12-2,4-6 issue, to me this basically means any cross that isn't horizontal (pointing to 3 o'clock), the steeper the angle the better.

1st candle, 2nd candle, while the candle is open, wait until its closed, bounces, exit points (conservative or not), checking trends, validity of checking lower TF's for best entry point when decision made on higher TF to trade, best TF's to trade, are all questions that regularly get asked and the answers that come back are usually open to interpretation, thus leading to more questions.

Some people on here have put together documents of all of Big E's posts, there own interpretations, or compilations of what they feel are the best posts (and I've been doing the same as I've been reading all the posts) but let's be honest. 2 + 2 = 4 is simple and not open to question (unless you're some weird mathematical genius or quantum physicist :nerd:blush:.

This system is simple for a forex system but people need answers and some of those answers result in tools (like the indicator Big E uses for 100 pip lines) which may also need some answers.

Personally I think that Big E did a great job, 2Scoops and others have contributed above and beyond but sometimes people need to take a moment before they post. I personally don't think that links to videos about NLP have anything to do with this thread (any more than they would on any other thread about trading) but I'm not demanding they be removed, or posting sarcastic or rude comments to the guys who posted them (I simply move to the next post and don't watch the videos) and I suggest others do the same if there's a post from someone more relevant to this system (like questions about the 'TMS Watchdog' which let's be honest, if Big E had made it 'part' of the system then the system would possibly be 'simpler' for some.

The TDI indicator is a tool, other tools designed for it or relevant to it may or may not improve upon its use but unless you're Big E you really have no right to try to shout down others with questions. Big E started this thread and if he's ever minded to update / issue a comprehensive TMS plan addressing the main questions and HIS views /answers then that may stop a lot of repetitive posts and allow the thread to mature to a results / prospective trades thread.

In the meantime, just remember that if you shout down someones post then the next question they could ask you is "Whatever happened to freedom of speech?"

Hi Juliant

The NLP videos are important to all types of trading systems, if a person does not have their psychological mindset in order then no matter how good system they can have they will still lose trades. by the way if you read my post again you will notice that I did not shout at anyone's post, it was just a kind reminder, thats all.

But all that aside I just want to say you are are right and I am wrong.
I am sorry.
Hope you all the best and may you have success in your trading.

Regards
X-Man

Hi X-Man

Please don't think that my post was aimed at you, I've seen many instances in this thread where people have been very dismissive or rude of people seeking clarification; your post was a very gentle reminder and I did see it as that but it brought to mind somethings I'd wanted to post for some time.

My point about the NLP videos was simply that they could be put on every thread on FF and be deemed 'relevant' to the thread but nothing in them (or in NLP generally) is specific about TMS, which this thread is supposed to be about

Best of luck with your trading as well

Excellent post juliant I agree with all of that; this is an open forum and posts are not limited to what someone's opinion of what is suitable or not; unless you are the thread starter in which case I may be banned.

I have highlighted things you point out with the method and the word you are looking for is - SUBJECTIVE - this is why there are so many opinions on how to trade this method, there are no hard and fast rules like a true mechanical system.

And as long as it remains SUBJECTIVE the questions and debate will rage on forever


Subjectivity refers to the subject and his or her perspective, feelings, beliefs, and desires.

exactly the right word! and thank you for all your words

juliant
Callisto
Traders . . .

Again I apologize. The information and links I posted regarding trading psychology benefited me earlier in my career as a trader. Because I continue get so many questions as to where to get information, I thought this would be a great resource. I did not anticipate the links would be posted here by other supportive thread participants.

So from my perspective, which is totally subjective, the information can be universally relevant to trading , and therefore relevant to this thread and TMS. This does not mean at all that all of you will benefit or need the content. Some will even argue it is worthless. It is my attempt to lay the ground work for a path to trading consistency - again from my own perspective and experience. The unavoidable truth in Callisto's post is the reference and definition of subjectivity. He is dead on when he implies that without subjectivity, there would be no threads or posts. Our individual subjectivity drives the discussion. The most important point he makes is

Quote

Disliked

there are no hard and fast rules like a true mechanical system.

- which is why all of the discussion, and from my perpective, the need for trading psychology information.

One of the basic tenets of my ideology was to find someone in trading that was very successful and emulate what they did and/or are doing. Those are the resources I try to provide.

This would also apply to this thread and E's methodology as many are trying to emulate his success. The most interesting thing in the thread is that only a few traders actually employ E's method exactly as stated on Page 1 without adding their own adjuncts. This is really no surprise. Even in his simple definition of the system, the key element is E's experience and subjective view of the market as he employs it. As his view is unique, many still struggle to fit TMS into their own perspective.

Also, if the trading mindset information I'm providing here is a distraction, please PM me and I will stop. If not, no need to comment.

"I'll just keep doing it." per dcginc.
Per piprac - keep doing it! And thank you.

No distraction experienced here in my little trading world...

I find your comments and instruction both helpful and profitable.
Eric's insights shared here on his thread are made more understandable when those that can illuminate how to apply them from different and "subjective" trading backgrounds freely communicate them to all.

The NLP videos are of immense help in understanding "my" trading mindset.

Thanks to you and to all who so freely share their trading insights here on the TMS thread.

Cliff

Seeing as it's the weekend and there are no trades to discuss, I thought I would add in some wikipedia definitions, just to stir the pot

General rule - any time a theory or point of view can be substantiated by objective evidence such as data, it ceases to be subjective. Basically, if someone attends a training seminar and puts into practive the teachings and this provides a change in their results, would that be seen as objective evidence?

Quote - "In God we trust - everyone else please bring data" - Dr. W Edwards Deming

NLP has changed many folks approaches over the years - so nothing wrong with personal improvement as part of the overall trading plan.

Adjective
subjective (comparative more subjective, superlative most subjective)

1. Pertaining to subjects as opposed to objects (A subject is one who perceives or is aware; an object is the thing perceived or the thing that the subject is aware of.)
2. Formed, as in opinions, based upon subjective feelings or intuition, not upon observation or reasoning, which can be influenced by preconception; coming more from within the observer rather than from observations of the external environment.
3. Resulting from or pertaining to personal mindsets or experience, arising from perceptive mental conditions within the brain and not necessarily from external stimuli.
4. Lacking in reality or substance.
5. As used by Carl Jung the innate worldview orientation of the introverted personality types.
6. (philosophy, psychology) Experienced by a person mentally and not directly verifiable by others

Adjective
objective (comparative more objective, superlative most objective)

1. of or relating to a material object, actual existence or reality
2. agreed upon by all parties present (or nearly all); based on consensually observed facts [quotations ▼]
   1. 1975, Constitution of Greece:Engagement of employees in the Public Administration and in the wider Public Sector, ... , shall take place either by competitive entry examination or by selection on the basis of predefined and objective criteria, and shall be subject to the control of an independent authority, as specified by law.

3. not influenced by irrational emotions or prejudices
4. (grammar) of, or relating to a noun or pronoun used as the object of a verb

Chaos Theory; Quantifies systems that are sensitive to enitial conditions. Future behavior fully determined by enitial contitions.
TDI cross. Stoch confirms. 5ma breached. Candle 1st or 2nd color change...
Enitial conditions. Future behavior. Hmm.

Trading is 90% psychology and 10% system. The way 90% of traders on this thread talk and execute the Big E strategy makes any instruction on managing your emotional state (add: position sizing, profit expectancy and trade management) clearly more important than discussing the angle of the TDI or the value of the Stochastic. The problem is, you have to blow up a few fully loaded accounts to understand this. There has been 10 times the technical discussion than is necessary to implement this system, but people either need their hand held, want to show off or are just too lazy to read the first 50 pages of the thread. The way people on forums (due to the anonymity it affords) can be so rude and condascending guarantees that most good traders (excluding the exceptionally kind hearted, bored or generous ones) don't even bother logging in. It is OK to be new and incompetent or experienced and still incompetent, but you should think twice before posting to prove it. This is not a game - it is just too expensive in time and money to think that way. Sharpen up and start really thinking about the whole process like a business or you will just lose - 100% guaranteed. One thing that I have been told on the subject of psychology that might help someone here is that "emotional traders pay disciplined traders". Repeat it out aloud next time you are in a trade! all the best - H.

Go to the Oanda website. You can download a desktop sessions time widget for free. You'll have 2 square panels. One tells how much time is left before each session opens and closes. The other panel tells the current market(s) time progression. You don't need to have an account with them and they don't bother you for personal information.

You are so right sir! Everybody starts as an unexperienced newbie, and in my opinion everyone with some common sence can learn forex trading... BUT there is a reason why 95% of the people who start forex loose more than they win, and stop trading after a while. And that is where the psychology comes in.

First of all, you have to understand that indeed this is not a computer game, this is real life and if you don't play it by the rules, you will end up losing big time. Been there, done that. I started forex trading with the idea that this would be the 'easy money'. Earnig big time without a lot of effort. And just ending up losing all the time. At that point, most people quit.

I started reading and studying... books, the internet, great forums like FF etc. Don't think it comes with no effort. And don't waste your money on buying stuff that is sold as "the holy grail".
The Big E system is something that anyone can learn but you have to study it properly, use it on demo or micro accounts. And when you master it, start trading with standard accounts and you will make profit.

Respect for people like Big E and others on this Forum who invest time and energy in teaching others!

Greetings and a lot of green pips to you all!

hawaii5000
I attempted to copy your entire post again in this reply to emphasize it is one of the most direct, insightful and intelligent posts I have ever read. Thank you Sir for the clarity and spot on perspective.

Stumpy1, do you mind me asking what sessions you are trading the daily TFs? By that I mean are you able to see TDI crosses during the London session. I wonder if this is critical, my broker's new daily candle appears at 2200BST and most of the better TDI crosses seem to be during the London session.

That was beautiful Hawaii5000. Just read a free PDF available on the web called "Mental Fitness for Traders". Very similar content which puts the success of the system squarly on the trader him/herself. Thanks for your good advice to us all.

Then I guess that all psychologists in the world are the best Traders.