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understanding trading

  • #1
  • First Post: Mar 5, 2012 2:29am Mar 5, 2012 2:29am
No matter how market moves i can find a signal to buy or to sell manipulating different indicators.

So, i wonder if it is possible to trade profitably taking only buy's or sell's or following the major trend (for example MA300) with fixed sl and tp, for example sl: 40 pips and tp 80pips. Or sl: 100 and tp: 200?
  • #2
  • Mar 5, 2012 2:31am Mar 5, 2012 2:31am
Only one way to find out isn't there .
Time hides Nothing
  • #3
  • Mar 5, 2012 3:06am Mar 5, 2012 3:06am
Well, there is a way if only the market participants are rigid enough to abide the laws. Since there is no laws and humans are flaws . If it comes to placing fixed positions (entries,tp,sl), it should be in accordance with the flow of the market Just like the river, you can simply catch a fish with a net on the shallow ones, but Im concern if it's to be placed on the sea. Hehehe. Are you trading full time or part time?
  • #4
  • Mar 5, 2012 3:18am Mar 5, 2012 3:18am
It is always able to explain why all the up and down just using any indicators especially refer back datas.
  • #5
  • Mar 5, 2012 3:31am Mar 5, 2012 3:31am
charts are nothing but transaction records, Humans take positions according to perceived opportunity of profit, no matter what kind of strategy you use, it is always a speculation and a prediction on expected depreciation or appreciation of asset in question.

According to events that are unfolding the CPI,PMI, current account balance, contraction or expansion of GDP in a macro economic level when speaking of currencies, as well as performance of equity market it such country can lead to have an inference on what the expected economic activity of a country might be in the future, of course in correlation with the Global base currency and the monetary policies of the the Country in question and the United States.

taking into account news and financial climates, risk appetites, yields, and of course our reading of the chart which record past transactions and past trends, we can only do a calculated gamble of continuation of current trend, we can see areas of clustering, distribution, exhaustion etc and place our bets accordingly.

but at the end of the day it will be either in the money or out of the money, given either scenario with an expectation and extrapolation of volatility we come to the decision to hold current positions or liquidate, take profit or take the loss.

you see..........trading is not so EASY as it seems....price goes up price goes down, can you find a mathematical, psychological, statistical, planetary, indicator, chart plotting sure fire way to PREDICT THE FUTURE..........NO.
AVT INVENIAM VIAM AVT FACIAM
  • #6
  • Mar 5, 2012 3:33am Mar 5, 2012 3:33am
A strong understanding of technical analysis is essential for success in forex trading. Technical analysis is a tool used by most forex traders to predict future prices. It involves using past data to project trends so that the investor can make the right investment decision.
  • #7
  • Mar 5, 2012 3:58am Mar 5, 2012 3:58am
Quoting the redlion

.....trading is not so EASY as it seems....
Does trading and trying to predict price direction amount to the same thing in your book then?
  • #8
  • Mar 5, 2012 6:03am Mar 5, 2012 6:03am
The basic understanding of the trade could help to trade without fear.... Learning new techniques and discussion on trading forum can guide the beginner to go for best trade!
  • #9
  • Mar 5, 2012 1:07pm Mar 5, 2012 1:07pm
Quoting pipmutt
Does trading and trying to predict price direction amount to the same thing in your book then?
if you are not predicting price direction then...what are you doing?

you are talking about Spot right?

if we go into the option market then we need to worry about time decay, volatility and ultimately direction....unless you are only betting on the spread, or you are doing a carry trade which ultimately the returns on interest will be boosted or depleted by direction

so yes...............prediction of direction= inference of influx of cash either in or out of an asset.
AVT INVENIAM VIAM AVT FACIAM
  • #10
  • Mar 5, 2012 2:28pm Mar 5, 2012 2:28pm
Quoting Ged
No matter how market moves i can find a signal to buy or to sell manipulating different indicators.
Perhaps try to learn how to read price (the interaction of buyers and sellers) instead of reading indies.

A naked chart, when you know what to look for, will provide you with more than enough to net the pips (coupled with MM and psychology).

IMO - indies provide you info and measurements of price, not signals.

http://kreslik.com/forums/userpix/10...otivator_1.jpg
  • #11
  • Mar 5, 2012 9:13pm Mar 5, 2012 9:13pm
Quoting Tyoon
Perhaps try to learn how to read price (the interaction of buyers and sellers) instead of reading indies.

A naked chart, when you know what to look for, will provide you with more than enough to net the pips (coupled with MM and psychology).

IMO - indies provide you info and measurements of price, not signals.

http://kreslik.com/forums/userpix/10...otivator_1.jpg
Hahaha what a beautiful piece of art ! If it is worth hanging on the wall, why not plot it on the chart too.
  • #12
  • Mar 5, 2012 9:35pm Mar 5, 2012 9:35pm
Quoting the redlion

if you are not predicting price direction then...what are you doing?
You kinda missed my point....

It was the thread title which caught my attention, "understanding trading", I thought it was going to be something fresh around here rather than the same old same old regurgitated.

Briefly, there is a clear distinction between 'trading' and the tools a 'trader' might use. I think it's prerequisite to understand and master the first before the second can be put to any truly productive use. Unfortunately it's something which is largly overlooked by the majority of those aspiring to become traders and goes some way to explaining the frustration and high failure stats among newcomers to this business.

A great book which explains and demonstrates this far better than I could is Trading in the Zone by Mark Douglas, it's been the catalyst to many a trader's ah-ha moment!

Anyway I'll leave you guys to carry on talking about your charts, signals, and indicators etc......
  • #13
  • Mar 5, 2012 9:39pm Mar 5, 2012 9:39pm
Quoting pipmutt
You kinda missed my point....

It was the thread title which caught my attention, "understanding trading", I thought it was going to be something fresh around here rather than the same old same old regurgitated.

Briefly, there is a clear distinction between 'trading' and the tools a 'trader' might use. I think it's prerequisite to understand and master the first before the second can be put to any truly productive use. Unfortunately it's something which is largly overlooked by the majority of those aspiring to become traders and...
WOOF!
  • #14
  • Mar 5, 2012 9:46pm Mar 5, 2012 9:46pm
Quoting 2+2=4ex

WOOF!
Hey the hounds are in the house!

....wait, I hear the sound of kittens a'comin'....
  • #15
  • Mar 5, 2012 9:51pm Mar 5, 2012 9:51pm


Inserted Video
Master your Mind,,,Master the Market
  • #16
  • Mar 5, 2012 9:53pm Mar 5, 2012 9:53pm
Quoting pipmutt
Hey the hounds are in the house!

....wait, I hear the sound of kittens a'comin'....
We need to start a new thread to hang out in for old times sake. I wonder what happened to Johnny? Did he get abducted? lol
  • #17
  • Mar 5, 2012 9:55pm Mar 5, 2012 9:55pm
Quoting bluesteele


http://www.youtube.com/watch?v=oe5no...eature=related
Haha, what a cool beagle. He just sits there with the shades on. Every dog I've tried to do that to goes crazy and knocks them off. He also had an earring on, lol.
  • #18
  • Mar 5, 2012 9:58pm Mar 5, 2012 9:58pm
Quoting 2+2=4ex
We need to start a new thread to hang out in for old times sake. I wonder what happened to Johnny? Did he get abducted? lol
He saw the light and gotten himself reborn as a fur ball!

lol, great dawg blue
  • #19
  • Mar 5, 2012 10:10pm Mar 5, 2012 10:10pm
Quoting the redlion
but at the end of the day it will be either in the money or out of the money, given either scenario with an expectation and extrapolation of volatility we come to the decision to hold current positions or liquidate, take profit or take the loss.
Quoting pipmutt
Does trading and trying to predict price direction amount to the same thing in your book then?
Quoting the redlion
if you are not predicting price direction then...what are you doing?
Quoting pipmutt
You kinda missed my point....

It was the thread title which caught my attention, "understanding trading", I thought it was going to be something fresh around here rather than the same old same old regurgitated.

Briefly, there is a clear distinction between 'trading' and the tools a 'trader' might use. I think it's prerequisite to understand and master the first before the second can be put to any truly productive use. Unfortunately it's something which is largly overlooked by the majority of those aspiring to become traders and...
Pipmutt, could You elaborate more on this?
  • #20
  • Mar 5, 2012 10:14pm Mar 5, 2012 10:14pm
Here's a great tip that has helped me:

Don't try to predict. Be prepared to react.
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