Make Money Everyday - A Guide to Short-Term Trading

I was!

my man, what is wrong with you???

haha mate I make a living as a performer, we're notoriously eccentric characters.

To be honest I am one of the most chilled out cats you will meet, but my job is my outlet in the real world.. as is this thread in the screen world

Again - being right, but early = being wrong.

I was right. I was early. However it didn't help me with my bottom line any..... we'll see how this week pans out...

OK first up..
Had two trades last night before bed at 1.32625, both short and both stopped for -4. The trades weren't quite in my rules as price hadn't made 1.3250 on the previous spike down. Meaning my actually trade should have been at 1.3275. Which played out nicely. Follow your rules Nic!

Tonight I forgot about daylight savings so started trading an hour before London Open. Didn't matter as there some good opportunities. Here is my chart. First trade for the night is marked.. Before are markings done after the fact.
Gonna call it for now, need to get some things organised. Will be back at NY.

P.s Watch all the great moves play out as I leave the charts

Hi Mongolian,
I don't get it!

I've been following this thread since started but still can't figure out where the rules to short or long at a certain level.

Firstly, I like using the method of cutting the loss and taking profit at a specific level. This doesn't leave me hoping that the trade will turn better or thinking I've left money on the table.

Forgive me as I am an engineer. Engineers like specific rules. If this happens, then do that. So are there specific rules that I should follow? I've read your first post but somehow the method seems to differ from the rules.

Thanks.

Thanks for the question. Well - the main rule is protect your inventory. This thread really wasn't a list of do a, then b, but only if c happens. It really has developed more into how do we read Price Action and then given that - how do we formulate our behaviors.

I can try to sum it up for you in a couple quick bullet points.

 

1. Price Action respects whole numbers as support/resistance.
2. Price Action respects each quarter level between the whole numbers as secondary support/resistance.
3. 1/2 way between each quarter level - PA also will respect that as support/resistance as well.
4. I like to enter on retraces preferrably but not exclusively.
5. Price Action does what it does - we cannot control that.
6. We work to control ourselves and our behaviors.
7. How we lose is everything.
8. Protect Your Inventory. No Inventory = No business = No trading.

I like to trade with just Price Action and the support/resistance lines drawn at each level mentioned above. You make like to trade with that plus pivots and MA's and oscillators and whatever. That's up to you. Whatever helps you make money every day. Ah - forgot one thing on the list - I am a short term trader, I do not hold positions overnight.

Explanations and rules as to exactly how and where - I do not have. I know what I like to see and that's what I trade. It's not for everyone. But if you want to talk Price Action - you are welcome to join us.

I don't know if that answers your question or not. Probably not. Answer me back or PM me and I'll see if I can muster up a better answer.

Mongolian

I'm sure you boys had a profitable night (day) after I left last night

I couldn't help giggle this morning when I woke up and looked where price ended up.
Lucky everyone on this thread is paid to trade and not anaylse

Exactly!

Recently I've been trading like an analyst!

Too funny. Back to trading. Leave the forecasting to others. No one is paying us for our opinion.

That is no fun mate!

Hi Mongolian,

Appreciate your explaining that there's no set rules behind how you do it. I will continue to digest your comments and see how it goes.

I don't hold overnight either.

I like the way you do it cause it is simple, straight forward and clean.

Now, I will have to figure out the "if A happens, then do B" portion.

Thanks.

Hey mate, for me what helped was to look over this thread multiple times. I think I've read the whole thing twice and the first 30-40 pages four or more times now. Just started again this week.
Mong's comments on gediums charts I found to be really useful and there should be some useful markings and comments of his on my charts. I was retarded when I started to try and figure this out, as you will see if you look through them. I am starting to feel that the bulk of my retardedness is behin me but im sure I'll trip a few more times at along the way.
There are some great charts he has put up in this thread, at first they confused the hell out of me but now when I look at them I think I am starting to see everything more clearly.

Once you have an idea of what he is doing, meaning you can look at historical charts and be able to see where you would place your orders, start logging charts with arrows and notes.

Everyday I look at my old charts, the charts in this thread and trade live charts each night. Just drilling PA into my brain and running my entries.
I can see it clearly when I close my eyes now.. Not sure that's a good thing, what a nerd burger

I feel your pain because it was pissing me off at points along the way wanting mong to just detail out the entries with rules. And how he took trades seemed contradictory at times, but now I don't feel that way and it makes sense.
Like someone said early on it's simple but complex/hard. I like it that way, because simple gives it strength and hard means only those with dedication will master it.

This is damn funky way of trading that can be extremely profitable. Well worth the effort.

One last thing.. It is probably very possible that someone could study this less than I do and still be profitable with it. But the reason I almost get fanatical with it at times is because I want this to be easy. It's not fun for me to be stressed in life, especially concerning money. So if my money is on the line I want to know that my technique of trading that money is as solid as can be.
That way I can relax and trade from an effortless place, when one does anything from that place great things can happen. I have found that with music and I have no doubt trading will be the same. I think it has to do with the body knowing the technique so much that it leaves room for the unconscious mind to shine through, and intuition can then start to play a part. Mark Douglas talks about this in his work on trading psychology. Which is a huge part of reaching that place as well.
I'm not there yet, but this is my goal and I see no reason why it cannot be accomplished.

Latest Keiser -

I have been getting lots of questions lately... either PM or in the thread or my chat buddies... regarding this style of trading.... specifically the 'rules' behind the trading. I will try to make things clear as mud here.

Now early on in the thread I talked about how if I have 2 legs one way or another - I generally consider that a cue to change directions. I still use that. But that is not a rule. We are constantly looking at the market - looking for 'clues' if you will. We want to pick up on little clues that will give us an opportunity to make some pips. I should have cleared this up long ago and my apologies for letting this fester on. 2 legs down, up, whatever is not a rule, but a clue. I have a chart from PA so far today.... this is what I see and the clues that I feel are given. You may see other clues and that is great. Use them.

1. PA fails to reach 3350 - hits my 6 pip line a couple times... breaks below 3338 - which, once it does that - this is where I now have my order to be short. PA comes back up - picks us up - and we're short.

2. PA now essentially bounces along 3325. Ideally - I want PA to come back up to 3338 so I can re-short... but PA is giving me a clue - that 3325 is as far as she goes AT THE MOMENT. SO after it bounces off that level - I have my order to go long - it comes back down - picks us up - and we're long.

3. Very similar to #2... PA is bouncing along 3350... I am short. Similar thinking to #2.

4. I want to go long... given the nice 2 leg move a moment ago (even though I just got a short @ 3... there i was taking a cue from PA). So given the long @ number 2. I expect PA to come back to 3338 where I want to be long. It tries - but fails - Stopped out.

5. PA breaks below 3325 - I place my short order at that line - it comes back and gets me. Stopped out.

6. Now - this is not completely in tune with placing our orders at the different levels - but if you are taking your cues from PA - those areas it drops down a bit before proceeding higher - all are potential entry points. They are some of the clues that PA is giving us that it is heading higher.

PA often behaves in a predictable manner and makes the areas on the chart like we expect. Sometimes it does not. So...we don't know that PA is about to take off... there is no way to know that. Very good chance that we miss that move because we are waiting for PA to hit certain lines and it just doesn't. This is an area of frustration for many traders. You have 2 choices. You can either be a victim and sit there and be pissed that you missed a move. It probably would sound something like this - 'That damn Mongolian - his system sucks. I need to find a better way to trade so that doesn't happen again.' OR you can be a person of action.... knowing that you are sound in your approach and that even though - that one got by us - there will be plenty more - day in and day out.

7. I said it early on - when PA makes a big move one way or another... and I would say - that was a big enough move to count - the drawback/retrace, whatever you want to call it - will often be bigger than usual as well. So - PA blows by 3375 and the retrace - but comes to the six pip line just under it. Long here.

8. PA went up on #7... we have our order back at 3375 to re go long. PA comes back - picks us up. Long.

9. Again - another clue from PA - it has hit this level 3387 for the third time.... I'm considering that an invitation to take a quick short. Short.

10. Looking to go long again @ 3375. Stopped out.

11. SO now - we're down 2 levels. Ideally - would like PA to come back up to 3375 to re go short. It doesn't happen. It does get back to the 6 pip line right above it (twice). Second time - good enough to be short. Most traders won't get that one.

12. PA bounces along 3350... breaks below it - I now have my order @ 3350. Stopped out initially. But it gives us another chance - reshort on the second break below. Short.

13. PA breaks below 3325... Order placed - picks us up. Short.

That is pretty much how I saw PA this early morning. I've had lots of requests for rules. The rule is learn to read PA and how it behaves. Once you have that - then protect your inventory.

Mongolian

Thanks for the chart, awesome, I will read it all again tomorrow when I'm more awake.
Two questions.. long at 8.. Stopped first time, then re-entered with buy stop at 3375?
And short at 12.. Stopped, then waited for price to hit 6 pip below 3350 and come back before placing order at 3350?

8 - sure
12 - yes