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Most important question to ask before trading

  • #81
  • Aug 5, 2013 4:51am Aug 5, 2013 4:51am
Quoting Mingary
{quote} MM edge ensures your profitability. I agree, except you can never know the outcome.. Analytical edge determines how profitable you actually are. ==> Can't be true. The problem will always be the same no matter the strategy and how good your edge. 1) Your trade is making money. What do you do? 2) Your trade is losing money. What do you do? Once you are committed anything else is irrelevant. Of course you will say, my strategy says that I will do this when... or I will do that when ... Certainty is for building bridges and cars, certainty...
So what you are saying is that trading is gambling.

I dont agree at all. I KNOW from my own experience that trading in the markets can be as certain as building bridges and cars. This certainty did not make me poor. Quite the opposite actually. if you don't have this certainty in your own trading then I suggest you find it.

MM is the shield which stops the bullets from becoming lethal and this allows you to fight on with your chosen weapons(analytical skills)...

Cheers!

-fighter
  • #82
  • Aug 5, 2013 4:52am Aug 5, 2013 4:52am
Quoting TEB63
What do you think is the most importain question to ask yourself before you put on a trade - Before someone puts on a trade there are a lot of questions to be asked (I hope) I want to hear what people think is the most important of all the questions they ask themselves before they put on a trade ! I will post what I think Friday I want to here what others think
Most important question to ask before trading
What do you think is the most important question to ask yourself before you put on a trade

I would ask myself :
I would trade every day, or at least 2 or 3 times a week
whatever my strategy (exit / entry /rules / MM / R:R / PA / EA / pivots, s/r, fibs, round numbers etc etc etc

whether I would be able to profit, within 3 months or 6 months or a year ? consistently
if yes,,whether it is appropriate if my profit compared with the capital i have ,, and the time I spend

if it doesn't happen, otherwise what should i do ?
if there is something you should keep secret,simply just save it,, so, just
  • #83
  • Aug 5, 2013 5:10am Aug 5, 2013 5:10am
Quoting fighterdude
{quote} So what you are saying is that trading is gambling. I dont agree at all. I KNOW from my own experience that trading in the markets can be as certain as building bridges and cars. This certainty did not make me poor. Quite the opposite actually. if you don't have this certainty in your own trading then I suggest you find it. MM is the shield which stops the bullets from becoming lethal and this allows you to fight on with your chosen weapons(analytical skills)... Cheers! -fighter
I used to "know" and I lost money.
Now, I don't "know" anything and I make money.
Uncertainty works.
  • #84
  • Aug 5, 2013 5:17am Aug 5, 2013 5:17am
Quoting Mingary
{quote} I used to "know" and I lost money. Now, I don't "know" anything and I make money. Uncertainty works.
Glad it's working for ya! haha.

Cheers!

-fighter
  • #85
  • Aug 5, 2013 5:21am Aug 5, 2013 5:21am
Quoting Mingary
{quote} MM edge ensures your profitability. I agree, except you can never know the outcome.. Analytical edge determines how profitable you actually are. ==> Can't be true. The problem will always be the same no matter the strategy and how good your edge. 1) Your trade is making money. What do you do? 2) Your trade is losing money. What do you do? Once you are committed anything else is irrelevant. Of course you will say, my strategy says that I will do this when... or I will do that when ... Certainty is for building bridges and cars, certainty...


have rules and let the trade play out
1. price hits the target or stop loss
with edge and good RRR you will be good
  • #86
  • Aug 5, 2013 5:24am Aug 5, 2013 5:24am
Would I happily take this trade 100 times in a row?
Time hides Nothing
  • #87
  • Aug 5, 2013 7:58am Aug 5, 2013 7:58am
Quoting Mingary
{quote} I used to "know" and I lost money. Now, I don't "know" anything and I make money. Uncertainty works.
lol - so what do you do flip a coin
  • #88
  • Aug 5, 2013 11:02am Aug 5, 2013 11:02am
What is the path of least resistance for the price to go?
  • #89
  • Aug 5, 2013 11:03am Aug 5, 2013 11:03am
Quoting fighterdude
{quote} {quote} Dont be such a hypocrite... I could say the same thing to you.... Do not make such assertions because you haven't discovered a MM edge yourself. My God man..... this is such basic stuff... Cheers and have fun playin' games. -fighter
Money management is money management. Some money management can provide what seems to be an edge like martingale. In the end though the only way to make a capital gain is by buying low and selling high. If you want to call that "money management" than maybe we have a different perception of what that means.

Quoting TEB63
{quote} lol - so what do you do flip a coin
He just doesn't trade anymore and makes money working at WalMart. So technically what he said is true.
  • #90
  • Aug 5, 2013 11:53am Aug 5, 2013 11:53am
Quoting Kanzler
{quote} Money management is money management. Some money management can provide what seems to be an edge like martingale. In the end though the only way to make a capital gain is by buying low and selling high. If you want to call that "money management" than maybe we have a different perception of what that means. {quote} He just doesn't trade anymore and makes money working at WalMart. So technically what he said is true.


Are you trying to be funny? Martingale is not MM its silly.
MM and RRR are the only way to win in trading
a 3 to 1 RRR means you only have to win a little better then 1 in 4 trades to make money

there are lots of ways to win buying low and selling high is one way but not the only way
I know a guy the buys high and sells higher and sells low and buys lower and makes a lot of money
I know an other guy that never trades trend I think he is (crazy) he just trades chop
  • #91
  • Aug 5, 2013 12:01pm Aug 5, 2013 12:01pm
Quoting TEB63
{quote} Are you trying to be funny? Martingale is not MM its silly. MM and RRR are the only way to win in trading a 3 to 1 RRR means you only have to win a little better then 1 in 4 trades to make money there are lots of ways to win buying low and selling high is one way but not the only way I know a guy the buys high and sells higher and sells low and buys lower and makes a lot of money I know an other guy that never trades trend I think he is (crazy) he just trades chop
"buys high and sells higher" is just another way of saying buy low sell high. Shorting is the same thing just in reverse; there's no way to get around the fact that in order to profit you have to have a positive difference in the prices you're buying and selling at. Risk/reward ratio is just a way to evaluate whether a trade is worth taking, and depends entirely on how good your strike rate is. Like other things in trading, overhyped and very much misunderstood, even as a simple concept.
  • #92
  • Aug 5, 2013 12:18pm Aug 5, 2013 12:18pm
Quoting Kanzler
{quote} "buys high and sells higher" is just another way of saying buy low sell high. Shorting is the same thing just in reverse; there's no way to get around the fact that in order to profit you have to have a positive difference in the prices you're buying and selling at. Risk/reward ratio is just a way to evaluate whether a trade is worth taking, and depends entirely on how good your strike rate is. Like other things in trading, overhyped and very much misunderstood, even as a simple concept.


no its not at
- what you are doing (and I agree with your way)
is you buy when price is low in the context of an uptrend
- so you are buying into weakness
- buying the dips

That is not what he is doing - he only buys strength into strength
very different concept

ie. if you were using a CCI you would buy as price comes out of -100 level
here he only buys as it enters the 100 level

cheers

teb
  • #93
  • Aug 5, 2013 12:47pm Aug 5, 2013 12:47pm
Quoting TEB63
{quote} no its not at - what you are doing (and I agree with your way) is you buy when price is low in the context of an uptrend - so you are buying into weakness - buying the dips That is not what he is doing - he only buys strength into strength very different concept ie. if you were using a CCI you would buy as price comes out of -100 level here he only buys as it enters the 100 level cheers teb
I don't care for the idea of a "trend" but at face value I can't see anything wrong with the concept of buying dips in a strong higher time frame move. Don't use indicators at all though so you lost me there.
  • #94
  • Aug 5, 2013 12:56pm Aug 5, 2013 12:56pm
Quoting Kanzler
{quote} I don't care for the idea of a "trend" but at face value I can't see anything wrong with the concept of buying dips in a strong higher time frame move. Don't use indicators at all though so you lost me there.


you said "...but at face value I can't see anything wrong with the concept of buying dips ..."
of coarse you see nothing wrong with this - this is what both you and I do in trading
ie we buy low sell high buy the dips sell the rallies

But that is not what he does
ie he would sell the dips and buys the rallies


You do not care for the idea of trend?? what do you mean
you do not believe there are trends or you call them something else

as for indicators how do you trade with out them?
ie candles and Bars and MAs are all indicators - right

cheers
  • #95
  • Aug 5, 2013 1:01pm Aug 5, 2013 1:01pm
Quoting TEB63
{quote} you said "...but at face value I can't see anything wrong with the concept of buying dips ..." of coarse you see nothing wrong with this - this is what both you and I do in trading ie we buy low sell high buy the dips sell the rallies But that is not what he does ie he would sell the dips and buys the rallies You do not care for the idea of trend?? what do you mean you do not believe there are trends or you call them something else as for indicators how do you trade with out them? ie candles and Bars and MA are all indicators cheers
He is trying very hard...
  • #96
  • Aug 5, 2013 1:08pm Aug 5, 2013 1:08pm
Quoting TEB63
{quote} you said "...but at face value I can't see anything wrong with the concept of buying dips ..." of coarse you see nothing wrong with this - this is what both you and I do in trading ie we buy low sell high buy the dips sell the rallies But that is not what he does ie he would sell the dips and buys the rallies You do not care for the idea of trend?? what do you mean you do not believe there are trends or you call them something else as for indicators how do you trade with out them? ie candles and Bars and MAs are all indicators - right...
I see "trending" and "ranging" as largely useless descriptors of past price movement. I sell against them all the time; for example, that crash in June of the market which was "trending" upwards, I sold it at the top because I noticed there was a good chance of many institutional orders there, without getting into much detail (did make a handsome combined 14R profit off of that position and adding to it). The fact that the news announcement was around that time probably wasn't coincidence, banks know how to get their fills. So I mean I do notice higher highs and lower lows and those features by themselves can be good indications as to what big money is going to do but it's not a major issue for me at all.

As far as indicators go, I don't use moving averages, CCI, MACD, any of that. Candles and bars aren't indicators but a record of price movement in its raw form. An indicator takes this data and manipulates it in some way to produce a data product. I use the plain chart and the price action on that chart (no, not single candles) to find areas of importance to me. As a note I don't subscribe to trendlines or any of that either.

Quoting fighterdude
{quote} He is trying very hard...
Once you experience success there's nothing hard about explaining it; the challenge on this forum is undoing a lot of the twists and turns of semantics people like to play in order to delude themselves that they're not doing the same mistakes as before. Honestly I'm not here to give the answer away I just like to argue against what I'm almost certain to be false.
  • #97
  • Aug 5, 2013 1:36pm Aug 5, 2013 1:36pm
Quoting TEB63
{quote} lol - so what do you do flip a coin
yes

http://www.forexfactory.com/showthread.php?t=409396
  • #98
  • Aug 5, 2013 1:37pm Aug 5, 2013 1:37pm
Quoting Kanzler
Once you experience success there's nothing hard about explaining it; the challenge on this forum is undoing a lot of the twists and turns of semantics people like to play in order to delude themselves that they're not doing the same mistakes as before. Honestly I'm not here to give the answer away I just like to argue against what I'm almost certain to be false.
LOL... wow so you like to argue against having a proper RRR and not risking too much per trade and making sure your profits are bigger than your losses????

Seriously man, stop trying to sound so above everyone else... haha... the fall from the top of that pedestal of yours will inevitably hurt.

-fighter
  • #99
  • Edited 1:55pm Aug 5, 2013 1:38pm | Edited 1:55pm
Quoting Kanzler
He just doesn't trade anymore and makes money working at WalMart. So technically what he said is true.
I wish. Working at Wall Mart would be my dream job now.
After a stint in the forex all you can hope for is to find work as a mop boy in a peep show.
  • #100
  • Aug 5, 2013 1:40pm Aug 5, 2013 1:40pm
How much did i drink
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