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B.S. Trading with Kenneth Lee

  • #4,921
  • Jan 6, 2013 8:31pm Jan 6, 2013 8:31pm
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Took this short 2 lots on the 30M. Price moved into our Supply Level with some good strength. We know this is the SM selling into a supply Level based on the length of the candle ( 22 pips ) entering our level. " Odds enhancer " SL = 15.. TP = 30

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Price moving nicely in our direction

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Moved stop. Price had moved down pretty good at that point.

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Price retracing back up and eventually took me out.

Total pipage about 15... Price then went on to my target area...


Good trading to all

TSD
  • #4,922
  • Edited 9:13am Jan 7, 2013 8:28am | Edited 9:13am
My take on it
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Good Trading To All ; Ken Lee
  • #4,923
  • Jan 7, 2013 8:33am Jan 7, 2013 8:33am
Quoting TraderinSD
Attachment

Took this short 2 lots on the 30M. Price moved into our Supply Level with some good strength. We know this is the SM selling into a supply Level based on the length of the candle ( 22 pips ) entering our level. " Odds enhancer " SL = 15.. TP = 30

Attachment

Price moving nicely in our direction

Attachment

Moved stop. Price had moved down pretty good at that point.

Attachment



Price retracing back up and eventually took me out.

Total pipage about 15... Price then went...

Yes this is why it is good to take screen shots of your trades and save them in your trading journal ,, then at the end of the weeks when your reviewing your business results for the week . you can see in reality what could have been. Then you also can start to see the precentage you would profit from verses loses. Doing that is what helped me to hold longer than just scalps also why i gravitated to the 30 min levels the targest are almost always assured to get hit.
Good Trading To All ; Ken Lee
  • #4,924
  • Jan 7, 2013 9:14am Jan 7, 2013 9:14am
The best choice
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Good Trading To All ; Ken Lee
  • #4,925
  • Jan 7, 2013 10:07am Jan 7, 2013 10:07am
Quoting Kenneth Lee
Yes this is why it is good to take screen shots of your trades and save them in your trading journal ,, then at the end of the weeks when your reviewing your business results for the week . you can see in reality what could have been. Then you also can start to see the precentage you would profit from verses loses. Doing that is what helped me to hold longer than just scalps also why i gravitated to the 30 min levels the targest are almost always assured to get hit.

Most definitely agree...!!

I simply moved stop too tight.. errr

I started journaling my trades sometime back as well.. Has made a difference in my trading too...I also add a lot more commentary to my journal.. The "what I'm seeing, what I'm thinking, what I'm feeling". This has allowed me to see into my own personality which directly effects my trading. It's that whole "wiring" thing.

TSD
  • #4,926
  • Jan 7, 2013 10:18am Jan 7, 2013 10:18am
Quoting TraderinSD
Most definitely agree...!!

I simply moved stop too tight.. errr

I started journaling my trades sometime back as well.. Has made a difference in my trading too...I also add a lot more commentary to my journal.. The "what I'm seeing, what I'm thinking, what I'm feeling". This has allowed me to see into my own personality which directly effects my trading. It's that whole "wiring" thing.

TSD

Awesome ,, Very Good .. With that type of commitment to learning how and why , you are on the only way to success at anything

Cheers Ken
Good Trading To All ; Ken Lee
  • #4,927
  • Jan 7, 2013 6:51pm Jan 7, 2013 6:51pm
Hi Kenneth and all, would like to seek your opinion on this EU trade I took earlier on which failed.

Took a short around 1.31049 off a 30min supply level yesterday. The level was chosen with these analysis: Price was clearly in a downtrend (with all the big red candles on the left), price paused and consolidated at the level and eventually broke off the level downwards with a strong momentum. Price also stayed away for sometime before coming back.

Placed a PO around 2pips below the level. On entry triggered, price did rejected the level (from the few pinbars) at the beginning but then continue to rise gradually to take out my S/L. Notice that price did not break through the level with strong force but rather in a gradual manner.

Does that mean this supply level was not a good one? since price did not really respect it and just went through it gradually.

Would love to learn from my mistakes and do better. Welcome any views from anyone on this trade!

thanks!
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  • #4,928
  • Jan 7, 2013 7:52pm Jan 7, 2013 7:52pm
Quoting TheLunny
Does that mean this supply level was not a good one? since price did not really respect it and just went through it gradually.
It's kind of one of those sloppy mid levels. Sometimes these can work out fine. It looks like has price popped above your level and now rolled over. I'm out of both earlier longs and took a short on this.
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  • #4,929
  • Jan 8, 2013 6:38am Jan 8, 2013 6:38am
Quoting TheLunny
Hi Kenneth and all, would like to seek your opinion on this EU trade I took earlier on which failed.

Took a short around 1.31049 off a 30min supply level yesterday. The level was chosen with these analysis: Price was clearly in a downtrend (with all the big red candles on the left), price paused and consolidated at the level and eventually broke off the level downwards with a strong momentum. Price also stayed away for sometime before coming back.

Placed a PO around 2pips below the level. On entry triggered, price did rejected the level (from...
Let the charts show the way,, We may have to wait a bit but.
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Good Trading To All ; Ken Lee
  • #4,930
  • Edited 9:22am Jan 8, 2013 8:31am | Edited 9:22am
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Overview of trend and larger pattern.

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The 30M TF moving into our 4HR Supply

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Here we see SM's selling into Supply on the 30M. We then have clear rejection of this level. As you can see I entered just underneath. I was watching price as it entered the zone to see if we would get some PA rejection before entering. We did.. Got short with a 2 lot. 10pip stop. 2:1 R/R.

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,
Exited full position. Total pipage 40. Price did go well past my exit but because I am trading the Asian session I'm not looking for a large move. Yes they do happen but not that often. Yes, I could stay up all night to manage such a possible ?? trade.. But I'm not.


Good trading to all

TSD
  • #4,931
  • Jan 8, 2013 10:54am Jan 8, 2013 10:54am
Quoting TraderinSD
Attachment

Overview of trend and larger pattern.

Attachment

The 30M TF moving into our 4HR Supply

Attachment

Here we see SM's selling into Supply on the 30M. We then have clear rejection of this level. As you can see I entered just underneath. I was watching price as it entered the zone to see if we would get some PA rejection before entering. We did.. Got short with a 2 lot. 10pip stop. 2:1 R/R.

Attachment
,
Exited full position. Total pipage 40. Price did go well past my exit...
very nice took that as well . i came home from work and saw the nice rejection pin. so entered as well. took less than u did tho. closed with 26 or so around 2 am.
Good Trading To All ; Ken Lee
  • #4,932
  • Jan 8, 2013 6:42pm Jan 8, 2013 6:42pm
Will be off line for a few days . Having to move boat as they are rebuilding the dock. So have to get a different internet provider .

Always something..
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Good Trading To All ; Ken Lee
  • #4,933
  • Jan 8, 2013 11:00pm Jan 8, 2013 11:00pm
Quoting Kenneth Lee
very nice took that as well . i came home from work and saw the nice rejection pin. so entered as well. took less than u did tho. closed with 26 or so around 2 am.

Yes.It was long trade.. I dd not want to stay up all night.. That can be the challenge trading the Asian session. The set up happens late in the session and the follow through comes in the European session.. Can make for a long trade

26 pips is a solid trade in my book..Nicely done as always KL..

TSD
  • #4,934
  • Jan 9, 2013 2:36am Jan 9, 2013 2:36am
Quoting Kenneth Lee
Let the charts show the way,, We may have to wait a bit but.
Thanks for your input Kenneth!

I have another question that I've been struggling with and hope you guys may advise me a little.

How do you guys define the T/P price for your PO? Since at the point of entering your PO, price have not really completed the "retracement" back to our entry level. How would you then know where are the nearest opposing supply/demand levels which we can take profit at?

I find that everytime I enter a PO, price is always in a different stage of retracement. Thus, the information available is always different. This makes it hard for me to define a T/P level systematically. It seems more like a "guessing" game. I'm looking for a systematic T/P rule where the rules of analysis is as simple/straightforward as our rules of entry. This way, I can remove the guessing and emotional part of me.

Have attached an image to illustrate my question.

thanks!
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  • #4,935
  • Jan 9, 2013 5:33am Jan 9, 2013 5:33am
Quoting TheLunny
Thanks for your input Kenneth!

I have another question that I've been struggling with and hope you guys may advise me a little.

How do you guys define the T/P price for your PO? Since at the point of entering your PO, price have not really completed the "retracement" back to our entry level. How would you then know where are the nearest opposing supply/demand levels which we can take profit at?

I find that everytime I enter a PO, price is always in a different stage of retracement. Thus, the information available is always different. This makes...
This is where it gets personal. If your taking the trade off faster charts with a target off a longer one it can be a bit easier. also what your aims as far as gains per week or trade. It annoys almost everyone to get in at a perfect spot and bail with a few and watch it travel 100'sso the goal is to get the best entries then manage them . Move to be or even a trailing stop. but don't trail to tight . In this whips saw market . i never feel to bad about taking gains..Plus a limit order can always be adjusted later in the day as the retrace to your order is forming. in a rush as moving day.. cheers Ken
Good Trading To All ; Ken Lee
  • #4,936
  • Jan 9, 2013 11:43am Jan 9, 2013 11:43am
Quoting TheLunny
Thanks for your input Kenneth!

I have another question that I've been struggling with and hope you guys may advise me a little.

How do you guys define the T/P price for your PO? Since at the point of entering your PO, price have not really completed the "retracement" back to our entry level. How would you then know where are the nearest opposing supply/demand levels which we can take profit at?

I find that everytime I enter a PO, price is always in a different stage of retracement. Thus, the information available is always different. This...

Here's another point of view, opinion.

First let me start by saying that a systematic approach to T/P really should be referred to as a Method. Methods allow for flexibility, systems do not (IMHO). I believe you have to have some flexibility in trading as the market / price is a flexible action. How do we know this? There is a human element behind PA. Humans are pattern orientated operating systems, as we see this in the method we trade and how the SM will trade against that human pattern orientated operating systems... eg: frailty. Having said all that the point is, you need to look at the current environment your are trading in.

If I am long I look for 2 things. First, I look for the next fresh Supply Level ahead of my trade entry. Second, I look for Support/Resistance levels ahead on my trade entry. Let me illustrate...If I'm long and the next Supply Level is 30 pips away. My stop is 10pips... I’m at 3:1 R/R right. Now looking left in between our Demand entry and our Supply target what S/R's is in the way. Are they major or minor? Major meaning (looking left) price has stall multiple times, possibly retrace hard off this S/R... or... did price just stumble and eventually move through, or is the level both a Support and Resistance.. Looking left you will see this very clearly. Depending where it is (in between) you may consider taking profit or a partial profit there, and then move your stop to BE. The question, will price have difficulty moving through this area? Even though we are trading S/D we (IMHO) cannot forget S/R's... Think of them as road blocks... Some only slow you down while others will have you retrace back to some other direction. Sometimes, (rare) we get a clean shot all the way to target. Yippee!!!...

View your trade management as a “Set of Rules “If PA does this, I do that... If PA does that, I do this.

The question that is always there once we enter a trade is “What is front of me to stop me from getting to my target?” Determine that and you will be able to manage your trades more profitably.

Hope this helps

Good trading to all

TSD

  • #4,937
  • Jan 10, 2013 8:47am Jan 10, 2013 8:47am
Thanks Ken and TraderinSD for the advices.

Just curious, on average how many trades do you all take per day?

How does your typical trading day look like? Do you all pick the levels at beginning of the day (set-and-forget) or anytime?
  • #4,938
  • Jan 12, 2013 2:23am Jan 12, 2013 2:23am
I would like to thank Ken and the other experienced members here for sharing their knowledge and insights. I like this approach towards Supply & Demand and absence of indicators is a bonus !!!

I appreciate the time and effort being put in to mentor and coach guys like myself.

Thanks again guys and please keep sharing.
  • #4,939
  • Jan 14, 2013 2:34am Jan 14, 2013 2:34am
Kenneth, I like your idea of using plain price action to determine trend (eg. HH HL, etc) but I found myself always caught in this situation whereby the trend is UP and price begins to reverse and come down but I'm still taking long orders at my demand levels hoping to catch the bottom of the swing (trade with the trend) and it turns out that it becomes a pro-longed retracement that goes deeper down taking out all my demand levels.

Then when I start taking shorts at supply levels after deciding that the market has made substantial LH LL, that's where price begins to come back up to resume the primary UP trend.

Do you have any suggestions on how I can improve on this and avoid getting caught between the trend change/retracement? I don't think it's wise to keep taking longs at all demand levels until one works (it may end up to be a reversal instead of retracement). But the nature of Sam's teaching is to "buy low sell high" which means trying to catch the swing ends isn't it?

How would you trade in such situations? Apart from choosing good levels with the odd enhancers, what other ways do you use to determine the dominant or higher probability trade direction at the point of placing your PO?

Once again thanks in advance!
  • #4,940
  • Jan 14, 2013 4:20am Jan 14, 2013 4:20am
Hi Everyone,

I have drawn S/D levels on EURGBP H4 chart. Price just went through my levels completely ignoring them. Request members to have a look and share their opinions. Would love to know what I am missing here.

Thanks
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