Your comments on my system please...

Extract from Market Wizards (interview with Tom Baldwin):

Jack: “How did you figure it out?”
Tom: “It’s like any other job. If you stand there for six months, you have to pick it up.” (referring to the pits)
Jack: “How do you make your decisions?”
Tom: “You see the orders and you just trade it.”
Jack: “How is size an advantage?”
Tom: “You’ve obviously never traded on the floor.”

Would you say that there is a common denominator with legendary traders?
The underlying reasoning may differ (techs, fundies, etc...) but the 'core' beneath is identical to one another (other than risk management).

[quote=Pipalicious;7515031” Would you say that there is a common denominator with legendary traders? The underlying reasoning may differ (techs, fundies, etc...) but the 'core' beneath is identical to one another (other than risk management).[/quote]


Yes, they all seem to have profiled the market and have a grasp of the reasons why price move.


"Tom: “You see the orders and you just trade it.”

I think that quote sums it up. I remember why I started trading orderflow, I remember I was trading a night I think it was the Asian session and something happened out of the blue, the entire market was moving violently and I remember thinking to myself, what the fcuk is that, and what ever it is I want to jump on top of it, I mean this thing was just clearing anything out of it's way, there was no way you can lose money if you were following that trade, no way, some people say you cannot quantify probability of trade and that is bullshit. If you were riding that trade the chance of going into profit has to be in the high 90s, you know why I believe that, it's because to stop such a surge going through would take an equally opposing trade to come in and meet price somewhere, but the chance of that happening is so slim I just don't see it happening.I soon came to realize that It was a big order going through, why the market was acting so crazy, although I can identify it easier now and which currencies are responsible, It was puzzling to me, because this orders wasn't respecting any kind of technicals that I could see on my chart.

That is what I classify as a Tsunami Lol an order that seems to come out of nowhere and does what the hell it wants. I probably said too much, but I will add that the market does have point of no return, I mean points when it would take an order of magnitude to stop or move price the opposite direction.
After that night my entire outlook changed , I lost that trade but it thought me a more important lesson and ever since then I have been profiling everything single minute detail about how money flows and why. Some traders probably wouldn't have learn from that loss, but that loss thought me one of the most important lessons I have ever learned.

Interesting, so you trade only high volatility situations, with no respect to fundamentals/ tehcnicals whatever, just pure order flow.

It is a reasonable approach, however how do you deal with the spread, and how do you find these movements ? Do you stay all day in front of the PC or how?

"It is a reasonable approach, however how do you deal with the spread"
Lol Gekko you always get straight to the point, but no I do not trade the news, I would love to, because that would be a nice easy trade, but so would everyone else and as you know what is good for the little guy is not good for the banks so they keep us out with wide spreads. As for how I do it, well I am not going to tell anyone that little bit of information.

I get the idea

I personally dont trade the news, but still keep track of them.

There is no such thing as a system in FOREX, for the simple fact that you cannot predict the future. Anyone telling you different is nothing more than a CON ARTIST who is "Lobbying" on behalf of BROKERS... BTW, the Lobbying in this and other FOREX Forums is pretty huge.

FOREX TRADERS A.K.A. GAMBLERS who think they can create a system or use indicators, James16 or whatever to Predict the "FUTURE" behavior of a pair, they all pretty much fall into the Gambler's fallacy...

http://en.wikipedia.org/wiki/Gambler%27s_fallacy

Nothing else to add. For now.

Lol Well call me king gambler.

It's up to your money management. For sure there will be a lot of weeks or even months when the losses will make you think about the expediency of being on Forex. Just keep going no matter what. It takes years as any other difficult skill in your life. You can't change the possibility to lose. What you can change is the amount of money you lose. Let the profits grow and cut your losses as soon as possible.