Disliked{quote} Maybe i have to look for better entries where there aren't big obstacles before hitting a 2:1+ targetIgnored
Reread post 6,077 by alifari. It's important.
B.S. Trading with Kenneth Lee
I wanted to go short on eur too at that RBD, but from base to first swap area it wasnt a good RR so i passed, that wick in the base made the level too wide. Anyways it could react nicely.
I grabbed this on gold this night and closed manually a few mins ago when i woke up. Not the best level and not the best position so i TP soon because i feel I didn't respect cautious entry rules. Many times i got stopped because i choose poor levels, need to focus more on best levels to gain confidence with the method.
I grabbed this on gold this night and closed manually a few mins ago when i woke up. Not the best level and not the best position so i TP soon because i feel I didn't respect cautious entry rules. Many times i got stopped because i choose poor levels, need to focus more on best levels to gain confidence with the method.
- #6,090
- Feb 26, 2014 4:36pm Feb 26, 2014 4:36pm
- Joined Feb 2011 | Status: Probabilities, Not Absolutes | 1,246 Posts
@ Ainur, the things I am posting about trading is based on general point of view and not pointed directly at you. After 5 years of trading experience and blowing up many accounts, I wanted to share things that could be beneficial for other traders. Also I would like to take this opportunity to thank Kenneth Lee for such a wonderful thread and showing us with simple yet effective way of trading. Here is something interesting I read on twitter. Why is that many traders will take a trade with a 100 tick target, get 95 ticks up, move to breakeven and...
The things I am posting about trading is based on general point of view and not pointed directly at you. After 5 years of trading experience and blowing up many accounts, I wanted to share things that could be beneficial for other traders. Also I would like to take this opportunity to thank Kenneth Lee for such a wonderful thread and showing us with simple yet effective way of trading.
Boy can I relate to this.. 13 years for me..10's of 1000's made and lost..It was not pretty
Here is something interesting I read on twitter.
Why is that many traders will take a trade with a 100 tick target, get 95 ticks up, move to breakeven and do nothing else because its a free trade
One can get in anywhere, one can get out anywhere......The ability to manage the you trade in an everchanging enviroment is paramount to success.
Yet if you told them to get out and take a new position with a 5 tick target and a 95 tick stop they will say "Are you out of your mind?"
This is a sign of Absolute Greed.. Sadly many will not even get this far in PIPS as they will have taken their profits way to soon.. Absolute Fear
The point is you have to be flexible in your profit expectations and assess your R/R not only at the time of entry, but also when the trade is running. A perfect example being Ainur trade on USDCHF, where a profitable trade of more than 1.5R turned out to be breakeven.
Your outline of the 1.5:1 RR is spot on. The math works:::: One of the biggest difficulties traders will have is living through the 5 losses.. Easily said.. but a major difficult for most.. takes time to change the mind set.. develop patience... develop staying power.. Get out of the way of ones own fears...as simple as this seems to be ... very few can achieve..... hence why so many fail ( IMHO ) at trading.... Can't, not will, not sure how to ??? REWIRE..??? The REWIRE creates the confidence, confidence gives you patience, patience leads to seeing price very differenly, seeing price differently gives you......... the edge mentally to stay in when others bail, to get out when others are staying to long .. The ability to know the difference!!!............ This leads to being profitable.
Preservation of Capital + Trading Consistsantly = Profitability IN THAT ORDER !
Sadly many will disregard this as unimportant..." You will hear this particular statement " Just give me a system that works and I will ba e able make money "
Yeah Right...Do not get me wrong..It can be done if one is willing to REWIRE.. And that road is expensive and painful but OOOOOOOOOH !!! SO WORTH IT when you arrive !!!!!!!!!!
Good trading to all
TSD
- #6,092
- Feb 27, 2014 8:13am Feb 27, 2014 8:13am
- Joined Mar 2009 | Status: Trader | 1,310 Posts
The purpose of knowledge is action, not knowledge
Here's something I'm watching on the AUD/NZD.
On the daily chart it looked like we might have a trend reversal from down to up. However, price failed in its attempt (for now) to change the trend.
I liked what price did on Friday. Price came back up and retouched previous support, now resistance and reacted off of that. The level also lined up with the 38.2% and 50% Fibs.
AUD/NZD DAILY CHART
Now going down to the 1 hour chart I'm simply going to wait for price to retrace into the supply area I've highlighted. It is the base of a drop-base-drop.
AUD/NZD 1 HOUR CHART
On the daily chart it looked like we might have a trend reversal from down to up. However, price failed in its attempt (for now) to change the trend.
I liked what price did on Friday. Price came back up and retouched previous support, now resistance and reacted off of that. The level also lined up with the 38.2% and 50% Fibs.
AUD/NZD DAILY CHART
Now going down to the 1 hour chart I'm simply going to wait for price to retrace into the supply area I've highlighted. It is the base of a drop-base-drop.
AUD/NZD 1 HOUR CHART
- #6,096
- Mar 26, 2014 8:23pm Mar 26, 2014 8:23pm
- Joined Dec 2012 | Status: On Life's Path | 2,076 Posts
- #6,099
- Jul 31, 2014 5:32pm Jul 31, 2014 5:32pm
- Joined Mar 2009 | Status: Trader | 1,052 Posts
Hello I carefully studied Kenneth's pdf and I wanted to ask him. But I welcome the feedback from anybody with experience with S/D. According to S/D principles, every visit to a supply/demand area uses it up and weakens it. This is based on the asumpton that the S/D level is caused by a stack of institutional orders. Question1: In a weekly chart, if we revisit the S/D level 20 candles later (20 weeks), is it logical that the orders will remain there stacked? This may work for very short times (10-120 min). Question2: A stack of orders may stop price....
You raise valid questions. FWIW here's how I believe it works....using Demand as the example for all your questions.
Q1) Maybe.....Initially there will be a stack at this demand level, as price moves away and forms new demand levels some of these orders will move up therefore reducing the orders left at the original lower level. But, if price returns back towards that level later there may be more interest again and new orders will flow back to the level, perhaps bolstering it.
Q2) Basing occurs when there is a proportionate number of buy and sell orders in the one area (stopping price). The reversal bounce is caused by an overwhelming number of buy orders vs sell orders at that particular area. As far as the size of the reaction it could be to do with new longs as well as short covering that creates the disproportionate move i.e. you have both buyers and sellers BUYING the market.
Q3) In this case you are talking more about Support rather than Demand basically another self-fulfilling prophesy at work.
Remember this is all theoretical and nothing works every time.
This is just my rationalisation of how it works.....others may disagree.....but that bothers me not.
Good trading
