Lessons Learned Thread

Trade 5

Entered another long for less than 100 pips.

Trade 5

Zoomed out view.

Trade 5

See you in about 40 minutes.






As part of my system, after every two consecutive losses, I eat about 10 grams of Horny Goat Weed, cover my whole body with 2 pints of goat blood and perform some black magic rituals either standing, sitting or lying naked in my backyard. Usually this is a 40 day ritual, but in weather conditons like this, I do it for 40 minutes.

Trade 5

Following is the outcome of 40 minutes of black magic ritual. We now have support and resistance levels in place. Please do remember that market has option not to follow these levels and many times it brutally violates these levels.

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Information
This is not some kind of a Trading Journal. Its a trading method thread. We are just trying to test application of a method described earlier in this thread. All recent posts are part of a demonstration showing how to apply that method.

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Trade 5 - Concluded

TP hit 1%

I have added some horizontal resistances (pink lines) to complete the chart. Kindly remember all lines are arbitrary but more than 50% chance of being respected.

Click at the chart for larger version.

Trade #6 - Entered

Trade #6

Trade #6

Trade running. Going to bed. It will either hit tp or sl in few hours. No worries.

No one asked why all six trades were longs? What's the science behind it? Will all my trades be longs or I will ever enter short? What's more to this method?

Do some thinking while I sleep. GN.

Great thread chicky, not done reading, but im on page 3 trying to fully comprehend what you are trying to help us from your own experience in the market. I can tell you've got a wide field of knowledge and experience, and im sure that moneybag is also filled up as well, especially with the thief of wall street hanging around

Keep it up, i will continue reading this daily

Trade #6 - Concluded

TP hit. 1%


Trade #7
Long pending order placed

Thanks for the encouragement Buma. I wasn't able to articulate well first couple of posts.

No right trade set-up yet. Waiting.

So anyone has the anwer will I ever go short?

If yes, Why?

If not, Why?

Ok. Nobody asked, maybe because of thin attendance today.

Let me explain, visitors can read when they come here.

PA does form certain patterns and respects trendlines. Maybe limited, but my observation is that pa follows trendlines on Daily Timeframe more than any other, whether higher or lower. Why? Wish I had known. For me, it's almost impossible to say with confidence whether pa will repect or break a certain trendline when it gets near one. Don't know if market is random or not but my lack of judgement at these points makes market a random play for me. That means I trade in a complete random environment not knowing if pa would go up or down, if up how many pips and if down how many.

The logical question that comes to ones mind is then how the hell I get my edge? I do get an edge but remember, as mentioned earlier, this edge is very very small, but at the same time big enough to yield reasonable profits if consistently applied with no exceptions.

My edge is the bounce pa takes at strong support/reistance levels. If there are a couple of strong supports (trendlines, psychological levels or historical levels) I go long resting sl just below last of these supports. For example everybody knows that 1.3300 and 1.3250 are stronger supports/resistances than many other in this area. Now If pa is falling and is getting closer to 1.3300, a bounce is expected in the area just above 1.3300 to just below 1.3250. Let's say 1.3325 to 1.3225. This is a 100 pip area. I may go long at 1.3325 with a 100 or so pip sl and a tp of equal number of pips. This is best I can do. However, if there are one or more strong resistances just above 1.3325 I would not go long at 1.3325 knowing that these resistances may not allow pa to bounce 100 pips.

Sometimes I have to set a sl/tp of 100 pips, sometimes 200 pips and sometimes even more than 200 pips. But regardless of number of pips my sl and tp is always about 1% of my account balance.

I take both long and short trades, depending where is pa and where are supports/resistances. I like to take counter-trend trades because they give good bounces. Sometimes 40% to 50% of the move.

My limit order is hit for a short.

i have done so because from the fluctuation of price i see a loss in bullish momentum, I believe they took their profits, and waiting for another oversold level for them to buy and create a retraceemnt to the overall bearish trend again, and bulls are just 'scalping' right now making tiny moves in price, probably 20 pips more to the shorting low-risk entry, exposing oneself to least amount of risk. spikes should happen due to the 'scalping' of the bulls.

Bears are still hibernating, spring's going to come soon and they gonna wake up all happy looking at an overbought level and selling this pair off.

we've got the ecb press conference, so we're going to probably have the big move there.


ADD:Chiky you got your long?
i think its moved now for around 30 pips.

Buma,

I just took a long scalp for few pips, only one trade (not on demonstration account).

May remain on sidelines for rest of the week.

Here is what I see. Dotted lines are the strong levels. The "Gap" you see is the strongest.

oh ok. nows the momentum for the bears to start out

True, one does not need a win rate of 90% to be profitable. 50% with the right mindset, and right management of risk, and money, its all u need.



sweet, chicky,

can u go more in depth with ur trendlines style of filling up your chart like that?

ive seen gann dudes do that.

my ichimoku is considered messy by many, and damn this look messy, but it looks like a healthy mess, thats what i would call it.

so whats behind it? why so many?

nice thread....is it ok if i share how i trade this method?