B.S. Trading with Kenneth Lee

quote for the day;

Everyone should think this way as they practice and build their accounts up.

What if everything that's happened so far, was just practice for when things get really, really good?

Really, really soon -
The Universe

Hello Ken , can you please tell me how to deal with those levels whose wicks are too big ??? For example there is an awesome demand level but top of it is a big pin bar ... What to do then ??? And also , some people mark wicks as the supply or demand level ... How is that done ??? Thank you ..

It could be nothing but a difference in time frames on charts. a pin on a 4 hr chart will have 8 30 min candles within it. so plenty of time for a level to form . In sam's videos regarding intra-day trading he states he looks for levels on 30 min and 1 hr charts then when price moves into or near those levels he will look for a entry off a faster chart his favorite being 2 minute.

I will see if I can find a example.

USDCAD at a very interesting area. W1, D1 and H4 at demand and massively oversold on the oscillator.

hi,C-12
this is aud 30min chart
there are two demand levels
which level is a better demand level?
many thanks !

Tough one this. AUDUSD looks still good for a rally here but I'm concerned about shorting anything the dollar right now, due to USDX.

...Although on further inspection the USDX supply area may hold.

stick to the s/d levels, and 100 pips per week will be easy
thanks again , Ken ,i have learned a lot from here
cheers!

Well you will have woken up to a very pleasant surprise if you took that trade last night.

Failure is only the opportunity to begin again more intelligently - (Henry Ford)

Unlike my live account on which I am trading the usual way by which I have been trading for a long time , I am practicing the Supply and Demand on a demo account ... Yesterday , I took the trade below ... C-12 and Kenneth , please provide me with your view about this ... I think it will hit my stop loss ... What went wrong ???

I don't think it was wrong as support turned resistance is a valid strategy but you have to watch where the fresh (untested) supply is. Price likes to move to these areas where the orders are.

If you looked closely this H4 supply was what stopped the price.

Thank You C ... One more question ... Suppose we took short as mentioned in the chart below , what demand levels to look at while managing the trade ??? Would there be other levels besides what I have drawn below ( Demand turned supply maybe ) that I missed ??? And , as all of them are untested , should we be placing buy orders on them toO ???

Another question ... For Kenneth this time ... Hello Ken ... How are you ???
I have a question about trade management ... See , below are the charts on which I have drawn a demand level ... Can you please tell me if you would have taken these trades , when you would have moved to BE and why ??? You said in the PDF that mostly Price does gives us the chance to move to BE even if it does not go into our favor as we expect it to ... Question is , when to move to BE ???

Plus , there are many times when price just simply blows through our level ... Plz See the charts below ... What to do in situations like these ???

Hi Chanya

There are a lot of ways traders will do this. For me... I like to follow price with a hard stop set above swing highs. If my zone for entry was on a four hour chart I usually follow with the 1hr chart for adjusting stops.

Assuming the AU to be in an uptrend I am usually pretty quick to take profits as demand zones approach, most or all off before a major zone is hit.

As for new buy orders. Again assuming the up trend I will be looking for an entry as each approaches to start a position with the bigger trend.

Hope this helps a little.

You could argue that chart 1 is the 2nd visit if you look left so there may not longer be much demand there. On the other hand the level looks good and not every level will work every time.

Chart 2, on the charts I'm seeing the level looks like it's been touched previously so not fresh.

Also if you see a level on the Daily chart, you can always drop to the H4 chart and refine the entry. That way you can minimize the risk if the level doesn't hold.

"What would you do if I sang out a tune...."
Joe Cocker's "lil help from my friends" should be switched to "buddies"
Sane men or women will be so appreciative of what Ken and his buddies have done in this thread.
I have completed a once through this am. and began a second time currently at post 74. The BS trade and Romancing the Stop are in notebook form and studied as time permits. Believe me time is permiting alot of study....
I am anxious to get to the position I can post and contribute but for now I simply say " I'll get by with a lil help from my buddies"

Just some random comments. I know we all would like to find a absolute trading system that allows no losses and perfect entries. It doesn't exist. So the best we can do is find something that can give us better than 50% good entries then manage those entries correctly.

So if we took 10 trades and 1/2 failed we could have 5 losers what if those 5 are the first 5 . Do we give up and jump ship? Then move to the next system not taking the time to learn it either.

I know I don't answer a lot of queries but some really don't apply to the way i trade. I rarely look at a daily chart except to see major turning points. My main focus is 4 hr and faster . My primary trading chart is 30 Min. I don't look at a faster than that chart but on rare occasions. I will post a faster chart 5 or even 1 min but this to try and just show people the Price action that I was observing when I took a trade. it is hard to explain to someone what you were watching in real time.

But when i post those chart then we start getting loads of why did this fail and such off a 5 min chart. If everyone would watch ALL of Sam's videos. and take a few notes first he goes over the basics of finding levels over and over. Then once you get that you just listen and now and again you will hear little gems of information to help fine tune your ideas.

One great idea he mentioned was the fact that around 7:30 central time almost everyday he finds a intra-day trade. I went back with someone the other day and on oz we found that entry almost everyday for the last 2 weeks. It was around 8:00 or 8:30 eastern time. very obvious on the 30 min chart.

The odds enhancers are the best tool for a new trader in finding a good entry point using any system. No matter what a persons favorite entry sign maybe just the drop , time away and fresh touch retest. Would filter out many bad trades. But it is very clear that many aren't looking at the section and definitely not using it.

As far as my on opinions regarding levels and such I have posted hundreds of charts and diagrams of what I look for and do . I am by no means the best trader. But I am able to get what I am aiming for each week almost every week and that will only improve with time.

I have been doing this enough to know that all the comments of a person letting runners run longer with experience is true . it is more a fact that as your account builds and with it your gains and equity. You start to lose the feeling of needing every penny which will in the end let you make many more on most every trade. The trouble may come with trying to hold the wrong trades not seeing a CT trade for what it is . Counter productive sometimes.

In the last two weeks i had the top of the e/u and oz on 4 separate occasions. But only took minimal pips off them. Do i feel bad. maybe a bit but by weeks end my 100 pips were in the bank and my account was 20% bigger. That is my goal.

My risk for that type of gain is not for the faint of heart but as served me well. I trade 2 dollar for every 1000 in my account . i adjust down if i lose 500. so it is like 2 steps forward one back . Instead of the other way.

In the last two weeks I have taken no losses. and only one BE. But to most i am nothing but a scalper . but using these ideas and the levels , it makes scalping really easy. I have increased my gains by a good deal over what i used to take in the past. But still not where i would love to be.

This is just another reason I am not always the best person to ask about those longer term trades. I enter almost 100% manually. I work a full time job at night . So being able to do what i do as for as my goal and just scalp . i feel really lucky.

I forgot a main point, These days alot of the moves against us are driven by news , Being technical type traders we can only protect ourselves from such things. I have held some bad moves but only because with experience and learning a small bit about news . You learn that rumors normally retrace but facts may shift price permanently. But you have to know rumor from factual economic numbers.

Some times those retraces can take a few days . But like when a bank head makes a statement with no attached methods obtaining his stated goals it doesn't take long for the market to realize it is just a puppet speech.

Point is at times levels fail just for these reasons and there is not a lot we can do about it . I think these could get worse before better. None of these countries are getting better and these guys lending more money and increasing their debts is not a solution. They have seen this but don't have a answer. The idea was cheap money would get companies to borrow and grow increasing the labor market and spending. In the United States . All the free money went to paying off some of the banks overseas losses before they got sued for making those toxic sales.

So we shall look for more fireworks and look for the levels that will allow us to join the stampedes.

Great couple of posts!!

Thanks