B.S. Trading with Kenneth Lee | Page 120 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Day Trading vs. Swing Trading vs. Position Trading 86 replies

Attachments: B.S. Trading with Kenneth Lee
Exit Attachments

B.S. Trading with Kenneth Lee

  • #2,381
  • Feb 3, 2012 5:58am Feb 3, 2012 5:58am
Quote of the day,,

The trick to blending work and play, lies not in what you do, but in how you view what you do.

See work as play and see play as important - super, very.

Super, very important -
The Universe
Good Trading To All ; Ken Lee
  • #2,382
  • Feb 3, 2012 10:08am Feb 3, 2012 10:08am
Attached Image (click to enlarge)
Click to Enlarge Name: EurUsd 02-03-12 Missed.JPG Size: 187 KB


Even though i didn't get a fill on this i'm not disappointed. I'm actually quite elated that i found a great zone.

I think it was Ken that posted a quote or a link to a quote about not concetrating on the return, but rather to concentrate on the process. My wife was standing behind me while i was reading it and she read it aloud. I must have heard at least 20 people say that before but for whatever reason, hearing her say it aloud at that moment made it stick.

So i did a little mental/emotional excersize. I visualise those things that i want in great detail. I applied this to setting up the charts. I imagine what i see, smell, feel, what i just ate or didn't eat, and even the sounds around me at the time. Then i do it over and over making it a little different everytime. But everytime i do it i always imagine myself feeling great about properly setting up the charts before i set any PO's. I'll do this before i sleep or if i have some quite time. Doesn't matter how long i do it for as long as i do it.

I take a lot of joy in trading and learning about trading because of this. When i stopped caring about winning or losing and started just looking for high quality setups i notice that the profitability came naturally.

Ken's good. Take note of his quotes and charts. They really mean something.
  • #2,383
  • Feb 3, 2012 10:27am Feb 3, 2012 10:27am
Very good number on NFP, 150K expected, 243K actual. Got a quick 20 pip scalp of AU, although EU might have been the better trade. Wonderful how even in volatile news times price action very often respects S/D zones
  • #2,384
  • Feb 3, 2012 10:54am Feb 3, 2012 10:54am
Here's a nice AUDUSD trade taken from a fresh demand (swap level).

Looking at the daily chart I see the daily supply level being touched for the 3rd time and this time the price arrived slowly to it.

Because of this I'm tempted to keep the trade open. The only thing that worries me is the end of the week. I might take half profit and leave the rest over the weekend.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: audusd_m30_03.02.png Size: 20 KB
Click to Enlarge Name: audusd_daily_03.02.png Size: 23 KB
  • #2,385
  • Feb 3, 2012 11:44am Feb 3, 2012 11:44am
Quoting hcristea
Here's a nice AUDUSD trade taken from a fresh demand (swap level).

Looking at the daily chart I see the daily supply level being touched for the 3rd time and this time the price arrived slowly to it.

Because of this I'm tempted to keep the trade open. The only thing that worries me is the end of the week. I might take half profit and leave the rest over the weekend.
The AUDUSD long trade you are showing. Noticed that you upper demand zone line is drawn from the high. I went back to double check in KL PDF page 14. Preceeding candle to breakout KL states line should be drawn from the (close in the case) .. A few questions if I may?

1) What success have you had when drawing the lines in this manner Demand Zone in this case?

2) Is there a specific criteria you are using when picking your entry level within the zone?

3) Your second chart showing 1,2,3 Supply Zone has Zone line drawn per KL PDF...Was there a reason for the two different ways of strcuturing the zones?



Thanks

TSD
  • #2,386
  • Feb 3, 2012 12:04pm Feb 3, 2012 12:04pm
Quoting kvhutch
Very good number on NFP, 150K expected, 243K actual. Got a quick 20 pip scalp of AU, although EU might have been the better trade. Wonderful how even in volatile news times price action very often respects S/D zones

I noticed that too. Lots of orders waiting to be filled.. Or an area where orders have pretty much dried up, price will blow through.

Interesting to be sure.. Wonder if KL can shed some light n this area??

TSD
  • #2,387
  • Feb 3, 2012 12:13pm Feb 3, 2012 12:13pm
Quoting Good Lookin
Attachment

Even though i didn't get a fill on this i'm not disappointed. I'm actually quite elated that i found a great zone.

I think it was Ken that posted a quote or a link to a quote about not concetrating on the return, but rather to concentrate on the process. My wife was standing behind me while i was reading it and she read it aloud. I must have heard at least 20 people say that before but for whatever reason, hearing her say it aloud at that moment made it stick.

So i did a little mental/emotional excersize. I visualise...

Find a quite place ,
Slowly release all tension by exhaling deeply as if your trying to flatten your body into a thin form . Not leaving any room for emotions or doubts , fear or greed , anger or sadness. Just a neutral entity.
Then see yourself entering a movie theater you would recognize, Notice the wall hangings, the lights on the floors, the screen curtain etc.
Find your seat and see your self sitting down .
The movie starts and in the film you see yourself sitting at your trading desk .
Your studying your charts and in this informative movie your going through everything required to spot a good trade setup.
The large candles exiting levels the min ratio 2;1 a nice decent solid candles, fast drop. The price stays away a long time. Maybe there was a small attempt at a minor level that tried to turn price before your level.
the base is nice and tight no weird wicks or random candles to confuse you The move into the level is nice and solid entering with a purpose ,
Which makes it easy for you to see a perfect target.
You see yourself entering your PO , Seeing yourself making the key strokes required to do so.
Or you see your self waiting for the price to move into a wider level and wait for it to start the reversal and see yourself hitting the buy or sell key then moving your stop and TP to the proper place.
You then watch as the trade unfolds the way you thought it would maybe moving your stop to BE as price passes your first tp area quickly not hesitating.

If your having trouble with stops you can see yourself making the right choice on trades that don't workout so good ending them at the best time to avoid bigger losses that indifference can cause.

it is a proven fact that doing something in your mind sets off the same physical and mental qualities in a humans body . Many professional sports and programs that require a great deal of precision use such mental training as this to build the neurological connections that are the same as addictions ,

But in this case we want to build the addiction of doing the correct things at the correct time. A habit is formed by repetitive action and since the mind can't tell if it is seeing it for real or only seeing it in the mind, We can build the right mental ability to succeed at anything.

The privileged find this making of mass money easier as they hear it in daily conversations the making of great wealth and losing of money as the process to be taken . Most of us on the other hand come from the other side of the tracks, living mainly in a life of lacking and we must over come this mentally first . Lose the feeling of the need of money and replace it with the feeling of KNOWING how to go about making LOTS of money for good purposes.

The above exercise is in the book emotion free trading, And for more information on how our body builds connections that are our habitual ways of thinking . The movie WHAT THE BLEEP DO WE KNOW available streaming from netflix , Goes into detail about the subject. It is a science and well proven and a life long study on it's own . but i have found it very interesting

Hope everyone had a great week and enjoy your weekend. Ken
Good Trading To All ; Ken Lee
  • #2,388
  • Feb 3, 2012 12:27pm Feb 3, 2012 12:27pm
I love live trading charts
Attached Image (click to enlarge)
Click to Enlarge Name: p343.jpg Size: 144 KB
Simplicity Is The Ultimate Sophistication ~LDV~
  • #2,389
  • Feb 3, 2012 12:34pm Feb 3, 2012 12:34pm
Quoting alterchristo
I love live trading charts

What would we do without the news . it moves price right into our pockets.

Nice trade ,
Good Trading To All ; Ken Lee
  • #2,390
  • Feb 3, 2012 1:00pm Feb 3, 2012 1:00pm
Quoting Kenneth Lee
What would we do without the news . it moves price right into our pockets.

Nice trade ,
you are totally correct Ken...

I still have 2 more cahrts... but the UCHF short deleted already
remain this charts.. close 67 pips
Attached Image (click to enlarge)
Click to Enlarge Name: p339.jpg Size: 124 KB
Simplicity Is The Ultimate Sophistication ~LDV~
  • #2,391
  • Feb 3, 2012 1:16pm Feb 3, 2012 1:16pm
I always thought you're supposed to make the supply/demand levels on the actual bodies of the candle and not the wicks.

In some rare cases I use the wicks but they represent areas where orders have undoubtedly been filled so when they revisit those areas again there's nothing to keep the price from going through them. Candle bodies still have the volume which means there are orders still needing/wanting to be filled.

Is my logic incorrect?
  • #2,392
  • Feb 3, 2012 2:21pm Feb 3, 2012 2:21pm
Quoting TraderinSD
1) What success have you had when drawing the lines in this manner Demand Zone in this case?

2) Is there a specific criteria you are using when picking your entry level within the zone?

3) Your second chart showing 1,2,3 Supply Zone has Zone line drawn per KL PDF...Was there a reason for the two different ways of strcuturing the zones?
Hi TSD,

I don't have a rule to draw the S&D zones. I guess I'm using my intuition here, but I try to identify the "box" where the price is being held before it breaks out. Then I expand that box by adding several pips up and down which includes the broker spread. Because I don't have a clear rule to draw zones and place my orders, those 2 zones are be drawn different.

I wrote a post on the thread about being generous with your SL. What I mean by that is to be generous with your zone also. If your entry is very tight then you might not get filled. Since this method has a very high probability of success, I rather get filled and win 4R often then try to catch very tight entries rarely. It's a personal choice. Helps my morale

My friend Lou asked me clarification about my post regarding "generous SL". I've emailed him the attached chart with the follow explanation:

Quote
There you can consider the blue zone and place the Entry + SL accordigly with a distance of 18pips and try to catch a 280 pips move. That would give you a huge reward (almost double) compared with the Red zone of 36 pips. But if you take the blue zone, you might not get filled and miss the opportunity. While trading the Red zone your order will most likely be activated and take the trade of "only" 7R.

I hope this helps.
Attached Image (click to enlarge)
Click to Enlarge Name: generous_SL.png Size: 22 KB
  • #2,393
  • Feb 3, 2012 9:06pm Feb 3, 2012 9:06pm
Quoting low_key321
I always thought you're supposed to make the supply/demand levels on the actual bodies of the candle and not the wicks.

In some rare cases I use the wicks but they represent areas where orders have undoubtedly been filled so when they revisit those areas again there's nothing to keep the price from going through them. Candle bodies still have the volume which means there are orders still needing/wanting to be filled.

Is my logic incorrect?
You're not incorrect but wicks on a four hour time frame will contain real bodies on the one hour or thirty minute. This is why Seiden drops down after identifying levels on longer timeframes. I think Seiden recommends using the bodies on top in order to get the real amateurs to buy or sell from you but on shorter timeframes you really just want to get filled. If you drop the r/r to 3/1 instead of 4/1 its really no big deal. I missed a great trade last week because my level was two pips too low. This one turned out to be around 6/1 and two or three pips wouldn't have made me poor, but missing the trade means 0/0 and that sucks.
  • #2,394
  • Feb 4, 2012 2:53am Feb 4, 2012 2:53am
Quoting Seneca pilot
I missed a great trade last week because my level was two pips too low. This one turned out to be around 6/1 and two or three pips wouldn't have made me poor, but missing the trade means 0/0 and that sucks.
You're not the only one, I missed several great trades last week due to waiting for price to go up or down "just a few more pips" and of course it never did and left me hanging. The problem is, when we enter early like this, price will blast up to our original level, then when we don't it doesn't!

What I'm going to do from now on is, in advance set a wider zone where I will permit myself to enter, then as soon as price hesitates get in at that point. If the zone is wide, then you can add another entry deeper in the level. Or of course you can set pending orders but I don't like doing that just in case price blasts through a level without hesitating....I like to watch the price in the moment.

Something to think about, good luck.
  • #2,395
  • Feb 4, 2012 10:43am Feb 4, 2012 10:43am
Quoting Ultimatus
You're not the only one, I missed several great trades last week due to waiting for price to go up or down "just a few more pips" and of course it never did and left me hanging. The problem is, when we enter early like this, price will blast up to our original level, then when we don't it doesn't!

What I'm going to do from now on is, in advance set a wider zone where I will permit myself to enter, then as soon as price hesitates get in at that point. If the zone is wide, then you can add another entry deeper in the level. Or of course...
My trading of S and D is mostly setting PO's. You will miss a lot of trades. It can upset you from time to time when they miss the level. Also remember that you must be doing something right.
  • #2,396
  • Feb 4, 2012 1:34pm Feb 4, 2012 1:34pm
Quoting Ultimatus
You're not the only one, I missed several great trades last week due to waiting for price to go up or down "just a few more pips" and of course it never did and left me hanging. The problem is, when we enter early like this, price will blast up to our original level, then when we don't it doesn't!
May I interject and suggest something? You could chunk down your order into smaller chunks and spread them across the zone. For example, if you usually enter with 1 lot you could instead place .2 lots at the kiss of the zone, then another .2 lots further into the zone, then another .2 further in, etc. until your 5th .2 lot is on the outer side of the zone.

I'm much better with pictures, let me explain it this way.

Just an idea.

..
Attached Image (click to enlarge)
Click to Enlarge Name: orders.gif Size: 14 KB
  • #2,397
  • Feb 4, 2012 9:50pm Feb 4, 2012 9:50pm
Attached Image (click to enlarge)
Click to Enlarge Name: Forex Trade GU Short #1.JPG Size: 102 KB


Took this GU short 2 lots on the 15M.

PO @ 1.58365
SL @ 1.58435
TP @ 1.58209

R/R just over 2:1

Total for the trade 30+ pips


Attached Image (click to enlarge)
Click to Enlarge Name: Forex Trade GU Short #2.JPG Size: 104 KB
  • #2,398
  • Feb 5, 2012 4:03am Feb 5, 2012 4:03am
Quoting Tyoon
May I interject and suggest something? You could chunk down your order into smaller chunks and spread them across the zone. For example, if you usually enter with 1 lot you could instead place .2 lots at the kiss of the zone, then another .2 lots further into the zone, then another .2 further in, etc. until your 5th .2 lot is on the outer side of the zone.

I'm much better with pictures, let me explain it this way.

Just an idea.

..
If you like to pay a lot of spread then sure you could do it. 5 entries x 2 pip spread = 10 pips. Now imagine you take 100 trades per year like this. You will need 1000 pips to get breakeven. Way to much for me and that's with quite a small spread.

But you could do it with two orders. Then it's not a bad idea. I personally set my full order a bit earlier than a level, usually 2-3 pips + spread. I still don't get filled every time, but it works quite nicely. You can't get them all anyway.
  • #2,399
  • Feb 5, 2012 9:13am Feb 5, 2012 9:13am
You wouldnt be paying more in actual money(commisions) because the lot sizes for each order would be smaller. Therefore the value of each pip is less. 2 pips for 10000 units = $2.00
2 pips for 2500 units = .50. Multiply time 4 = 2.00.
Think about it.

Quoting Supernaut
If you like to pay a lot of spread then sure you could do it. 5 entries x 2 pip spread = 10 pips. Now imagine you take 100 trades per year like this. You will need 1000 pips to get breakeven. Way to much for me and that's with quite a small spread.

But you could do it with two orders. Then it's not a bad idea. I personally set my full order a bit earlier than a level, usually 2-3 pips + spread. I still don't get filled every time, but it works quite nicely. You can't get them all anyway.
  • #2,400
  • Feb 5, 2012 9:48am Feb 5, 2012 9:48am
Dear Kenneth!
Many thanks for your job! I'm a long ago heard of this method B/S. And only now I begin to understand how it is simple! Keep your work friend!
I will try to learn to all, that you give. Thank you.
Cheers
Attached Image (click to enlarge)
Click to Enlarge Name: 05_02_12.gif Size: 32 KB
0 traders viewing now