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B.S. Trading with Kenneth Lee

  • #5,201
  • Mar 26, 2013 1:35am Mar 26, 2013 1:35am
Definitely worth pushing your comments forward. Thanks Ken.

Quoting Kenneth Lee
This is the second request in the last few weeks of this type ,, Think it was Lou that asked before.


After almost 2 years of trading this way,

1 What are you considerations about this method?

Our life's are a total of all the experience's we have had up to this point, Our actions and reactions are based off the emotional response we have had to external force's in the past. As a child we touched fire the first time not knowing it is hot, we learned quickly that it was and is to be avoide[color=Blue][color=Black]d....
  • #5,202
  • Mar 26, 2013 6:27am Mar 26, 2013 6:27am
Quoting arjfca
Hello Kenneth and other Supply Demand guru's

Thanks you for this tread, very informative and it help me to have a better understanding of the power and forces that drive a market

I got 2 questions, hope some of you could explain it in a way I can understand it

Swap level
- What is a "swap " bar or region? I never head Same Seiden explaining that, Any link?
- What should I look or do at these level
- I think I understand how to recognize them, but few examples would be appreciated


Trade management

In rules 8 of the document...
here u go .
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Good Trading To All ; Ken Lee
  • #5,203
  • Mar 26, 2013 6:32am Mar 26, 2013 6:32am
Hi Ken,

While everyone asking Guru various questions. I would like to add few more if Ken you don't mind.

1. Do you have set of rules to put Pending Orders?
2. How many of your trades are PO and manual? Do you wait for PA for manual entry? Any sign you look at like volume by TradeinSD?

Regards,
hlakhani
  • #5,204
  • Mar 26, 2013 7:03am Mar 26, 2013 7:03am
Quoting Lou
Ken,

Since you first published the BS Trading pdf, have you made any changes in your trading style ? If so, why?
If anything i have gotten simpler with it . I use more S/D than I did in the beginning, Because we tend to fall back into old habits easily.I still use some of the more old classic trading ideas as they seem to never go out of style. I still use no indicators . I know, I have the 50 ema on my chart but this is in support of Sam's teachings and me trying to pass it on.

But I have found that in almost all cases a Supply or demand level is located at the entry location of any style trading you maybe looking at. Like i mentioned above ,depending on time of day or activity in the market . Fib levels I am drawn to 50 and 61.9 i never pull fibs , Instead I know the formation of a CHECK Mark is what I see on my chart. I fade 00 with the trend always worth a few. When the market goes quite late in the U.S session ,I know the swings will SHRINK and I can trade the very near levels. But always trying to stay with the overall trend as it may POP, continuing in the right direction. IT is when trading those times that it is hard to hold a wining trade. Many a time I have closed just moments before it moved out of it's bounds. Just taking a small amount.

But I to answer your question i would say no. If a person focused on this methodology of trading and kept in mind what the Masses maybe looking at ,it would serve them well as a solid base for any trading. Addition of more information maybe good but when you start straying from the basics you tend to get overwhelmed with to much information , So much in fact a super computer couldn't sorted it out fast enough.

Keeping my eye on the basics is what I focus on .

Buy Low , Sell High

Buy a Higher Low That followed a Higher High.
Sell a Lower High That followed Lower Low
If the Reaction at your entry is not like a scalded cat . look to protect your equity.
if your looking to enter a longer chart time level. 4hr or above. Look to enter on the flip off a fast chart.
Which is the first formed level after the larger level was hit. This is what Sam is talking about when looking for his daily trading entry every am. he looks for levels on the 30 min or 1 hr chart then looks for a entry on a 2 min or 5 min chart. looking for a flip . I know I got of topic but a bit of info folks have asked me about..

Also for the record I never look for a entry indicator my indicator is Supply and demand and how price is acting at those levels.
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Good Trading To All ; Ken Lee
  • #5,205
  • Mar 26, 2013 7:19am Mar 26, 2013 7:19am
Quoting Kenneth Lee

if your looking to enter a longer chart time level. 4hr or above. Look to enter on the flip off a fast chart.
Which is the first formed level after the larger level was hit. This is what Sam is talking about when looking for his daily trading entry every am. he looks for levels on the 30 min or 1 hr chart then looks for a entry on a 2 min or 5 min chart. looking for a flip

Ken, could you please post a chart showing this ?


Thanks
The quality of your life is brought about by the quality of your thinking.
  • #5,206
  • Mar 26, 2013 7:25am Mar 26, 2013 7:25am
Hi Ken,

While everyone asking Guru various questions. I would like to add few more if Ken you don't mind.

1. Do you have set of rules to put Pending Orders?

Yes I am leaving my computer and see something I want to trade. That is about it. If I see a level I like why do I have to be sitting here to take it.I had errands to run at the Sunday open but liked the level so placed 2 PO's But as a General rule i enter 90% manual

2. How many of your trades are PO and manual? Do you wait for PA for manual entry? Any sign you look at like volume by TradeinSD?

1 out of 10 or less. It depends a lot of the price action I look for is before it gets to a level. Someone PM'd me a similar question. about levels on levels. The reason they are such good spots to take a trade. Is the fact that a lot of the counter force has been used up. Demand pushes price up like anything real in the world. To much supple and prices fall. Natural order of things. So if demand starts to fall off which is seen on your chart by price start to try and turn back, Then at the next over supply level it has a better chance of having more supply than demand and making price fall. The hard choice is do we take all the levels are wait for the middle or last one I have taken them all before only to find the 3rd or 4th one is the where supply overcame demand. But it really overcame it and made back all the small losses in spades.....
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Good Trading To All ; Ken Lee
  • #5,207
  • Mar 26, 2013 7:27am Mar 26, 2013 7:27am
Quoting hornet
Ken, could you please post a chart showing this ?


Thanks
I did in the post above yours..
Good Trading To All ; Ken Lee
  • #5,208
  • Mar 26, 2013 7:30am Mar 26, 2013 7:30am
Quoting hlakhani
Hi Ken,

While everyone asking Guru various questions. I would like to add few more if Ken you don't mind.

Regards,
hlakhani
I am not a GURU nor do i even claim to be a good trader. I do know what needs to be done , But the biggest obstacle you will face will be in yourselves and if you haven't crossed that path yet , it is a battle that may change your entire life . as it has mine.
Good Trading To All ; Ken Lee
  • #5,209
  • Mar 26, 2013 7:52am Mar 26, 2013 7:52am
Quoting Kenneth Lee
I did in the post above yours..

Okay, so entry from a LTF Supply Zone that was created on first retest of HTF swap zone ?

Like here:

Swap zone, retest on HTF (30m)
this creates a SZ on lower TF (5m)
wait for retrace to SZ and enter via PO

A question here though:

wouldn't this be a second retest of swap zone on HTF (30m) ?
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The quality of your life is brought about by the quality of your thinking.
  • #5,210
  • Mar 26, 2013 8:20am Mar 26, 2013 8:20am
Quoting hornet
Okay, so entry from a LTF Supply Zone that was created on first retest of HTF swap zone ?

Like here:

Swap zone, retest on HTF (30m)
this creates a SZ on lower TF (5m)
wait for retrace to SZ and enter via PO

A question here though:

wouldn't this be a second retest of swap zone on HTF (30m) ?
Yes but that is what it is the last bit of demand trying to overcome , but being a larger level there is usually more supply than on the 5 min. Looking at the 30 min verses say a 1 min it looks like stalling for a bit then turns. I watch the price as it bounces around and once it start making lower highs in real time wait for a final push a bit higher but lower than the top and that is my entry for in current time PA.

I have mentioned in the past ED Ponsi's Book Trading probabilities. he speaks of this type entries where big money just places a bit of their order to push it back just a bit then let's retailers push it back where they add on more of their order which shows their true hand and price collapses. This is what forms double tops and bottoms.
Good Trading To All ; Ken Lee
  • #5,211
  • Mar 26, 2013 10:14am Mar 26, 2013 10:14am
Quoting Kenneth Lee
here is this weeks charts so far just goes to prove no matter what your skill level you can make decent gains . Just try and control losses . I don't have many big trade more because when i trade . i trade mostly when others wouldn't , because of job and other commitments.
Hi Ken,

I've been reading your posts from the past, and i came across these particular trades. I noticed that in your post above, there were quite a few of trades where price went against you quite far away, and yet, didn't trigger your SL. I was wondering where did you place your SL? Isn't it supposed to be slightly above the supply/demand zone?
Knowing is not enough; we must apply. Willing is not enough; we must do.
  • #5,212
  • Mar 26, 2013 11:07am Mar 26, 2013 11:07am
Quoting keroro0o0o
Hi Ken,

I've been reading your posts from the past, and i came across these particular trades. I noticed that in your post above, there were quite a few of trades where price went against you quite far away, and yet, didn't trigger your SL. I was wondering where did you place your SL? Isn't it supposed to be slightly above the supply/demand zone?

might be, I looked so the first one where I scaled out went short got stopped out then re-entered as it was a good level. others looked mainly to be quick scalps. I am sure I have some that seem far , I tend to get in to early as I hate missing my entry by a few pips. The rules are the same , You have to prove it to yourselves that the rules are real. Plus at times i don't enter 100% of my position size especially near levels on levels . if I can adjust my entries to accommodate more than one entry I may. it is the total risk that is important, But it should always be a fore thought not a attempt to win at all cost.

I am not providing signals or stating I am perfect far from it. The rules laid out here are solid . Doesn't mean i follow them 100% But the way i trade suits me. Just like the old saying" do as I say not as i do".
Good Trading To All ; Ken Lee
  • #5,213
  • Mar 26, 2013 1:14pm Mar 26, 2013 1:14pm
Quoting Kenneth Lee
Yes but that is what it is the last bit of demand trying to overcome , but being a larger level there is usually more supply than on the 5 min. Looking at the 30 min verses say a 1 min it looks like stalling for a bit then turns. I watch the price as it bounces around and once it start making lower highs in real time wait for a final push a bit higher but lower than the top and that is my entry for in current time PA.

I have mentioned in the past ED Ponsi's Book Trading probabilities. he speaks of this type entries where big money just places...
I have not read ED Ponsi's Book Trading probabilities. A good read, yes?

Thanks

TSD
  • #5,214
  • Mar 26, 2013 1:42pm Mar 26, 2013 1:42pm
Quoting TraderinSD
I have not read ED Ponsi's Book Trading probabilities. A good read, yes?

Thanks

TSD
Like most trading books, I have read very few. has some good tidbits.. Has large section on the mental aspect of trading which is interesting how he advises to conquer that .. worth a Glance ..
Good Trading To All ; Ken Lee
  • #5,215
  • Mar 26, 2013 3:29pm Mar 26, 2013 3:29pm
Hello friends,

I have uploaded two charts, marked a demand zone for EuroUSD in a daily chart, and in the second chart we see two 4H demand levels inside the daily demand level.

First of all, are they correct demand zones ?

When price goes in this daily demand zone, what is the function of these 4H demand zones ? maybe they are good to pin point an entry with a less stop loss ?

4H level in the bottom has been touched once, the upper 4H level has been touched twice. Can we assume that the upper one does not have a good quality ?

Should we give any attention to these two 4H demand levels ?
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  • #5,216
  • Mar 27, 2013 10:46am Mar 27, 2013 10:46am
Quoting Kenneth Lee
I am not a GURU nor do i even claim to be a good trader. I do know what needs to be done , But the biggest obstacle you will face will be in yourselves and if you haven't crossed that path yet , it is a battle that may change your entire life . as it has mine.

I would totally agree. No GURU here either.. Just a guy who trades.

TSD
  • #5,217
  • Mar 27, 2013 4:04pm Mar 27, 2013 4:04pm
Quoting Kenneth Lee
I am not a GURU nor do i even claim to be a good trader. I do know what needs to be done , But the biggest obstacle you will face will be in yourselves and if you haven't crossed that path yet , it is a battle that may change your entire life . as it has mine.
Some additional observations

So as I cruise through Forex Factory I am in awe of the amount of ideas thattraders come up with, from the very complicated to the very simple. It doeshowever make me appreciate the simplicity in which we trade on this thread, thisnot to say that others are wrong or right. I believe that one must always bewilling to look at another point of view/trading style. Whether you agree ordisagree is not the point. What you can gain from another’s insight""may"" create that "AH HA" moment for you.Getting past the mental hurdles in trading is the most difficult part oftrading.This requirement to "Rewire" can be a difficultjourney (The biggest obstacle youwill face will be in yourselves. KL’s previous statement) but it can bemade easier when you let go of preconceived ideas about what works and whatdoes not.

Remember how you looked at the market when you first came to this thread. Iwould venture to say somewhat to completely different. You may have thought toyourself... How do they see what they see? How can you trade withoutindicators? How do you know this is what is happening? Etc, etc. Then you reachthe point of frustration... You say things like "this doesn't work""I can’t trade in this manner"... All manner of crazy thoughts...Maybe even to the point of anger... What is holding you back is you own mind set...Your preconceived ideas on trading... Your ego... The need to be “right”...Maybeyou’re a trader from another method... The search for the ultimate tradingmethod or indicator... Again, mental limitations that you have placed upon yourself,stops you from moving forward.

There are no absolute's except ONE...Price has to move in order for you totrade. There are, however, a vast number of probabilities...So there is good newsand bad news... First the bad news... You were not taught to think in terms ofprobabilities but more in terms of absolutes. Now for the good news! You can"rewire" your thinking... Stay out of the negative trap and put your destructiveego in a bottle and set adrift in the ocean.

Just some random babblings sparked by KL’s comment.

TSD
  • #5,218
  • Mar 27, 2013 4:49pm Mar 27, 2013 4:49pm
Quoting Trappist
Hello friends,

I have uploaded two charts, marked a demand zone for EuroUSD in a daily chart, and in the second chart we see two 4H demand levels inside the daily demand level.

First of all, are they correct demand zones ?

When price goes in this daily demand zone, what is the function of these 4H demand zones ? maybe they are good to pin point an entry with a less stop loss ?

4H level in the bottom has been touched once, the upper 4H level has been touched twice. Can we assume that the upper one does not have a good quality ?

Should we give...

My Take ..
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Good Trading To All ; Ken Lee
  • #5,219
  • Mar 27, 2013 4:51pm Mar 27, 2013 4:51pm
I have been lurking around on this thread for a few weeks now, trying to pick up on the nuances of the method. Yesterday I spotted what looked like a good opportunity on AUDJPY, so I set a pending order which got hit as price came into the zone that I had marked up. The way that I was looking at it, we had a sharp drop, a base of sorts followed by the rise back up to the zone and the trend was down.

As it happens the trade worked out well for me, but I am curious to know what you more experienced guys make of my analysis...

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Cheers

OD
  • #5,220
  • Mar 27, 2013 5:14pm Mar 27, 2013 5:14pm
Quoting One day!
I have been lurking around on this thread for a few weeks now, trying to pick up on the nuances of the method. Yesterday I spotted what looked like a good opportunity on AUDJPY, so I set a pending order which got hit as price came into the zone that I had marked up. The way that I was looking at it, we had a sharp drop, a base of sorts followed by the rise back up to the zone and the trend was down.

As it happens the trade worked out well for me, but I am curious to know what you more experienced guys make of my analysis...

Attachment

Cheers

OD...
The rules are simple to almost a no brainier.. same as above...
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Good Trading To All ; Ken Lee
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