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Trading Made Simple

  • #28,581
  • Jan 3, 2014 4:55am Jan 3, 2014 4:55am
Quoting Phx62
Picked up another quick 50 pips this evening.....done for the week. {image}
phx62 your posted img/temp so clear and cool is it possible to share it as it is look .thanks in advanced
Say something meaningful or Silence!!
  • #28,582
  • Jan 3, 2014 5:32am Jan 3, 2014 5:32am
Quoting cigarguy
Quick scalp GU +7.4 time to sleep.....still attempting to sit on my hands. Old habits hard to break Gotta love that 200 ema dynamic s/r. Can't show entries/exits live trades on another ECN platform. Update Chart Below; Synergy Trade Alert popped up after my scalp. Forgot I had it on the chart for testing last week. Regards, Cigarguy {image} {image}
I see you are scalping and you are taking very small profit... what is your SL? R:R?

You must be very careful with this system to allow the trades to breathe!

I also read you and many others asking phx62 the same question been asked to him many times on the thread!!

Please go through his posts and you will find everything about the way he trades and lots of great tips!

There are also PDF you can read....

All the best
Give yourself a chance and trade it like it's layed out...
  • #28,583
  • Jan 3, 2014 7:04am Jan 3, 2014 7:04am
Quoting manoj_3986
{quote} Dear Phx62, What type of Price action inspired you to take counter trend trade as EJ is in Up trend ? Thanks Manoj
Perhaps, a MTF trend indicator may help you as well. Before the EJ collapse started, from 5m to 4h had bearish bias. The only concern was as Phx62 stated if it would have enough momentum to move....
Simplicity is the ultimate sophistication - Leonardo da Vinci
  • #28,584
  • Edited 9:24am Jan 3, 2014 7:45am | Edited 9:24am
Quoting Bizzzle
{quote} I see you are scalping and you are taking very small profit... what is your SL? R:R? You must be very careful with this system to allow the trades to breathe! I also read you and many others asking phx62 the same question been asked to him many times on the thread!! Please go through his posts and you will find everything about the way he trades and lots of great tips! There are also PDF you can read.... All the best
Hopefully Post #28,570 will clear things up for you. If not let me know and I will explain in more detail. Trades are based on probabilities and sometimes the market does not cooperate with the best laid planes. You may have a good RR trade set up for a day trade and if the market turns you close quickly and that trade becomes a scalp (some pips better than none or a loss). I have put on a scalp that runs good and becomes a day trade. Ultimately price determines the trade not lagging indicators.

Yes they are small profits and a lot of work but they add up at the end of a day. That is why I am using TMS with higher t/f's more pips and less stress. I learned scalping here at FF a few years ago from some of the best Miss Pips, Cobra and many others which I hold in high regard. As the markets change, so must we and adapt to the changes. The good Traders here make far more than that in one high probability trade thats why I appreciate the successful Traders and there advice. Those 28 pips didn't come easy

If its distracting positing my small scalps, I certainly will not do so and will respect your wishes and comply with the higher t/f teachings offered here.


Regards,
Cigarguy
Attached Image
Keep It Simple
  • #28,585
  • Jan 3, 2014 7:51am Jan 3, 2014 7:51am
Has any one ever tried trading without a stop loss I just watched an excellent video of guy who never uses a stop loss and does not lose a trade, at worst he gets out at break even. What are your thoughts on this type of trading ?
  • #28,586
  • Jan 3, 2014 8:19am Jan 3, 2014 8:19am
Quoting budwiser27
Has any one ever tried trading without a stop loss I just watched an excellent video of guy who never uses a stop loss and does not lose a trade, at worst he gets out at break even. What are your thoughts on this type of trading ?
I know traders like that on other FF threads which inspires much controversy, in fact if they are telling the truth. At least a emergency stop loss if you don't want your account drained. Some Traders are quick to share their wins but not their losses. You must decide! If a trader happened to be in a trade on that sad day of 911, I am sure that a stop would have been welcomed.

Regards,
Cigarguy
Keep It Simple
  • #28,587
  • Jan 3, 2014 9:17am Jan 3, 2014 9:17am
Quoting cigarguy
{quote} Hopefully Post #28,570 will clear things up for you. If not let me know and I will explain in more detail. Trades are based on probabilities and sometimes the market does not cooperate with the best laid planes. You may have a good RR trade set up for a day trade and if the market turns you close quickly and that trade becomes a scalp (some pips better than none or a loss). I have put on a scalp that runs good and becomes a day trade. Ultimately price determines the trade not lagging indicators. Yes they are small profits and a lot of work...
I agree with you higher time-frame less stress! my fav is 4 hour...

I see you are consistent with your scalps so well done! but R:R does matter a lot for an example you added, you have made 7 positive trades all below 8 pips and for each trade what was you SL?

Because if you are trading TMS and I guess because your on this thread you are, normally the SL is at the Low or high and on the 1 hour that can be anything up to 50 pips, one lose could wipe out all your other trades.
Give yourself a chance and trade it like it's layed out...
  • #28,588
  • Edited 9:56am Jan 3, 2014 9:36am | Edited 9:56am
Quoting Bizzzle
{quote} I agree with you higher time-frame less stress! my fav is 4 hour... I see you are consistent with your scalps so well done! but R:R does matter a lot for an example you added, you have made 7 positive trades all below 8 pips and for each trade what was you SL? Because if you are trading TMS and I guess because your on this thread you are, normally the SL is at the Low or high and on the 1 hour that can be anything up to 50 pips, one lose could wipe out all your other trades.
Yes your correct R:R is important. I watch how price respects; Fibs, round numbers, pivots, previous H/L's, 200 ema, day open/close, ATR, and some just experience watching a pair for many hours how price moves, then make a decision based on what I see on that chart. Each pair and chart tells a different story.

You must also remember, small pip profits are ok with large lots

I don't set and forget. I'm retired, trade live and am fortunate to have the time to watch and monitor each trade. Although, sometimes that's a negative trying to keep my hands off the keyboard. to much! I envy those that have the skills to make a trade and walk away. I'm working on that here on this thread.

Regards,
Cigarguy
Keep It Simple
  • #28,589
  • Edited 10:06am Jan 3, 2014 9:51am | Edited 10:06am
Quoting budwiser27
Has any one ever tried trading without a stop loss I just watched an excellent video of guy who never uses a stop loss and does not lose a trade, at worst he gets out at break even. What are your thoughts on this type of trading ?
Budwiser & all new members (passive & active),

I can't speak for everyone trading TMS as a core methodology but for a few people here, TMS is just the smallest part of the 3 M's. For me it mainly provides confluence to different parts of my System.

As discussed yesterday (for those of you participating in Emmanuel's Puzzles :-) ) using parts of the TMS toolkit (specifically TDI and MC helps us identify the three market types)...using these tools we can look for market consolidation and then trade the breakouts.

Trading these breakouts require predetermined risk and money management, for this we can use other parts of the TMS toolkit. For example market volatility stops and a R-Multiple method with a Position Sizing strategy using ME/ME. However, this requires a Stop Loss.

Trading is a Money Management game and this requires a stop loss!

To be consistent in our trading this requires a clear and defined trading method and the disciple which goes with the method we use (would you say having a Stop Loss provides you with some sort of discipline?)

More importantly trading TMS as a core method requires trading capital, money management and trade management skills, self control on how you manage your emotions and trade your beliefs. Furthermore, we want to stalk the market with a rifle and not a shotgun!

Emmanuel posted a quote by Dr Van Tharp earlier this year, which should provide some insight into the usefulness of a Stop Loss but more importantly that this is only a part of what should be your trade management or exit strategy.

“There are many different classifications of exits other than your initial stop loss. These include exits that produce a loss but reduce your initial risk, exits that maximize profits, and exits that keep you from giving back too much money, and psychological exits.”

What insight is this quote giving us apart from the usefulness of a SL...ME/ME!

Below is a video posted on this thread last year that should help you see the usefulness of Money management and by proxy stop losses. Its long but worth the watch

Inserted Video


some food for thought on R multiples for those that don't want to watch the video....

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I hope this answers your question in a round about way but those are my thoughts on this type of trading (without a Stop Loss)

Erol
  • #28,590
  • Jan 3, 2014 10:08am Jan 3, 2014 10:08am
Quoting budwiser27
Has any one ever tried trading without a stop loss I just watched an excellent video of guy who never uses a stop loss and does not lose a trade, at worst he gets out at break even. What are your thoughts on this type of trading ?
I disagree strongly. History has proven that a 0 loss streak is bound to come to a horrible end. The key to success in this business is to find a few patterns, easy to remember, and stick to them; start doing the same thing over and over again. How are you supposed to do that if your exit rules are different on each trade. What's more, if you are unexperienced, you will struggle to close the trade. You will have to fight emotions on each and every trade. That all sounds very teadious and stressful. Stress kills accounts. Not to mention the lack of basic money management.

You *could* do it, if you risk less than 1% of your capital per trade and can afford to wait for your trade to turn back to b/e for as long as it takes, but I really don't see the point in that.
  • #28,591
  • Jan 3, 2014 10:13am Jan 3, 2014 10:13am
Quoting WDays
{quote} I disagree strongly. History has proven that a 0 loss streak is bound to come to a horrible end. The key to success in this business is to find a few patterns, easy to remember, and stick to them; start doing the same thing over and over again. How are you supposed to do that if your exit rules are different on each trade. What's more, if you are unexperienced, you will struggle to close the trade. You will have to fight emotions on each and every trade. That all sounds very teadious and stressful. Stress kills accounts. Not to mention the...
Exactly thats why scalping is so stressful. Difficult to make a plan and stick to it with all the noise on those lower t/f's.

Regards,
Cigarguy
Keep It Simple
  • #28,592
  • Jan 3, 2014 10:21am Jan 3, 2014 10:21am
Quoting WDays
{quote} I disagree strongly. History has proven that a 0 loss streak is bound to come to a horrible end. The key to success in this business is to find a few patterns, easy to remember, and stick to them; start doing the same thing over and over again. How are you supposed to do that if your exit rules are different on each trade. What's more, if you are unexperienced, you will struggle to close the trade. You will have to fight emotions on each and every trade. That all sounds very teadious and stressful. Stress kills accounts. Not to mention the...
Well said WDays,

"The key to success in this business is to find a few patterns, easy to remember, and stick to them; start doing the same thing over and over again"

For those of you saying ahhhh there are so many patterns, where do I start...this should always be on your wall and in front of your Screens. These are what are hidden behind your APB candles...

Attached Image (click to enlarge)
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Quoting cigarguy
{quote} Exactly thats why scalping is so stressful. Difficult to make a plan and stick to it with all the noise on those lower t/f's. Regards, Cigarguy
too true cigarguy...i struggled with 4Hr as i dont have the time to watch it...i got annoyed i was missing trades and that messes with my state of mind. My TMS new years resolution is to only trade the Daily using TMS...why...less noise and more time to plan my rifle shots...as I only have a few hours after work free for trading (that's if I want to find some balance with my free time as well)
  • #28,593
  • Jan 3, 2014 10:44am Jan 3, 2014 10:44am
Hello everyone and Happy New Year

1st trade eur / usd sell 4h
consolidation with 3 inside bar
win 35 pip

Attached Image (click to enlarge)
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2 trade usd / chf buy 4h
consolidation with 3 inside bar
win 30 pip

Attached Image (click to enlarge)
Click to Enlarge Name: usd chf buy 4h.JPG Size: 66 KB
  • #28,594
  • Jan 3, 2014 10:45am Jan 3, 2014 10:45am
This may also be of assistance - very easy to understand.
Attached File(s)
File Type: pdf Three Powerful FOREX Price Patterns.pdf   1.8 MB | 1,750 downloads
  • #28,595
  • Jan 3, 2014 10:56am Jan 3, 2014 10:56am
Quoting emmanuel7788
<quote>: ... so you think its important even on 4HR to let the current bars break current support/resistance before buying/selling even with TDI signal? <unquote> Above is a frequent question I get asked in PM. Folks, please participate and share what your views are to that question above. regards, EMMANUEL

Emmanuel,


Thanks to the likes of yourself and PHx62 we are shown many examples of how Price Action @ Support and Resistance (PASR) + TMS = your added winning EDGE

If PA is telling you to get in around areas of confluence it doesn't really matter if its after the break or before the break of S/R as PA will give you the signal and you enter accordingly (as outlined in your methodology). TDI crosses will provide you with confluence, for me...no PA...no trade, unless you just play the breakouts of S/R.

The 'anwser' is that we must pick only the A+++ trade setups using PASR around areas of Confluence of historical Support and Resistance, BRN, RN, FIBS, TDI etc. This way PASR will get you into the market before the TDI signal, which leads me back to yesterdays post....

Quoting Erol
{quote} So how do we trade them and what do we use...an aggressive plan would use CSP's to build positions (IB/4IB, DBHLC/DBLHC, Pinbars etc.)
References for those who want to learn more about PASR:

  1. PHx62 Study Guides
  2. Emmanuel Entry/PASR/Trade Management PDFs
  3. Post # 19927
  4. Post # 25366

  • #28,596
  • Jan 3, 2014 11:04am Jan 3, 2014 11:04am
Quoting Erol
{quote} Well said WDays, "The key to success in this business is to find a few patterns, easy to remember, and stick to them; start doing the same thing over and over again" For those of you saying ahhhh there are so many patterns, where do I start...this should always be on your wall and in front of your Screens. These are what are hidden behind your APB candles... {image} {quote} too true cigarguy...i struggled with 4Hr as i dont have the time to watch it...i got annoyed i was missing trades and that messes with my state of mind. My TMS new years...
Or even better, look at real charts (not schematic pictures) and see when big moves occur. In the skype group, we collectively found 4 patterns that repeat themselves over and over and we just watch out for them. Establish a set of criteria for each setup (i.e when is it valid, when is it an "imposter"), and follow them strictly.
  • #28,597
  • Jan 3, 2014 11:08am Jan 3, 2014 11:08am
Hi Guys, for week-end reading I've attached a pdf file. It’s written some time ago by two experienced traders who show how they trade, but more importantly how the big banks (who move the markets and for whom they once worked) trade and how by knowing this we can improve our trading. It’s concerned solely with support and resistance, no indicators or complicated rules or methodology and is about 30 odd pages long. It’s well written, informed, insightful, contains much trading wisdom, is often humorous and I thought it worth a read.
Attached File(s)
File Type: pdf BRV_S+R_Trading.pdf   652 KB | 1,167 downloads
  • #28,598
  • Jan 3, 2014 11:10am Jan 3, 2014 11:10am
Quoting Joeyd
This may also be of assistance - very easy to understand. {image}
Joeyd,

Nice chart pattern PDF.

Thanks and Regards,
Cigarguy
Keep It Simple
  • #28,599
  • Jan 3, 2014 11:15am Jan 3, 2014 11:15am
Quoting WDays
{quote} Or even better, look at real charts (not schematic pictures) and see when big moves occur. In the skype group, we collectively found 4 patterns that repeat themselves over and over and we just watch out for them. Establish a set of criteria for each setup (i.e when is it valid, when is it an "imposter"), and follow them strictly.
Good job WDays, but this reply was intended for the newer traders reading our posts.

You and your skype group may be proficient in spotting your 4 setups but for the newer members to understand real charts we need to show them the schematics first, which helps them identify the same setups in the the PHx62 and Emmanuel PDFs posted with real PASR trade examples and then they can properly see what is being posted in the charts on this thread. We all have to start at the basics at some point :-)

Great advice to the newer members..."Establish a set of criteria for each setup (i.e when is it valid, when is it an "imposter"), and follow them strictly"
  • #28,600
  • Edited 7:23pm Jan 3, 2014 11:25am | Edited 7:23pm
Hi everyone! These are a really useful pdf's above! Phx62 mentioned the daily high/low is set in the first 2-3 hours of London session! Could somebody give me an answer to which pairs refer to? Thanks the answer in advance!
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