Trading Made Simple

Have you communicated with "BritPips" who broke away from TMS thread some time ago to pursue the Daily TF using TDI?
http://www.forexfactory.com/showthread.php?t=334035

He had to "add" some things to make it work, but he should have some valuable insights for you.

Goldenmember posted series of articles and I think this little part here is a great reminder that applies to all of us. Please allow me to paste portion of it here.

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Trading is not a competition

The more pressured and stressed people are, the poorer decisions people tend to make. I acknowledge there are times where competition and stress are useful - in sporting events the adrenaline (epinephrine for Americans) kicks in and helps athletes to push themselves further. However, most traders are sitting around in their armchairs and do not benefit from the extra stress.

This might seem completely obvious to avoid, but competition pervades every part of retail trading because everyone has their opinion online. I make 4-6% per month, but I see a few other traders can make 100%-200% per month, and many more claim that they can. There is pressure all the time to increase the amount I trade, increase the risk to attempt to beat others. I feel that I know my way around trading enough, and it gets quite annoying that someone with no experience and no knowledge claims to outstrip me, and I am tempted all the time to try and compete.

Nassim Taleb in his book Fooled by Randomness writes at length about this theoretical relationship between two neighbours who are traders. One is a young, successful trader who is somewhat naive but foolhardy in the markets but has made a lot of money for themselves in a bull market and has the biggest house in the street. The other is a conservative trader who is producing returns at a slower, safer rate (obviously Taleb writing about himself) who lives in a modest house. The conservative trader is jealous of the richer neighbour because he feels that the rich neighbour has no idea how to trade and has just got lucky by repeatedly buying in the right market. The successful trader eventually blows up when the Russian bond markets collapse, while Taleb continues to make money and he feels vindicated that he has stuck to his strategy and has not been influenced by his less educated counterpart.

The same situation occurs in retail trading - in fact it is much worse because retail traders are fond of telling tall tales and they don't need a big house to prove that their success (in fact, they often don't have any proof at all). Retail traders post up their (unverified) trading performances to champion how good they are when they have a winning streak, and it can encourage jealousy. Others post up single screenshots of a trade or mention a trade that they did take, and I know I feel like kicking myself because I missed out

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You can read the whole thing here. http://www.forexfactory.com/showthread.php?t=459986

Hi Direwolf, just wanted to say many thanks for the 'goldenmember' post and link. Went to it and read the whole lot. Agree or not it is fascinating stuff, well-written, well-researched and insightful. Throws a different light on the usual forex trading. As someone said, it could be worthy of being published as a book.

Hi Dee,

Thanks for the suggestion, I have looked at Britpips daily thread but found it over reliant on indicators.

After reading the thread that Direwolf posted I'm wondering just where the best approach lies.

As always there's more questions than answers.

@steve, I would say that whatever can make you money, is good. Admittedly I've been very interested in fundamental analysis myself these past few weeks. I'm totally clueless where to start tho. Anyway that's not the topic for this thread so I'll leave it at that

I suggest forexlive and forexcrunch to begin.. You mostly need to keep in touch with what's going on... Those sites can provide actualized data.

USDCHF wee24 : my game plan for this week while I am travelling.

Most pairs are trading below its 52-weeks average weekly range so don't expect 80 to 150 pips and 3 to 8 candle runs in those currency pairs which eelfranz used to trade.



Trade Well.

Have Fun!

Thank you Emm

Frankfurt moved got canceled by LO. Looks like nothing to do today.

USDCHF Week24 H4 chart pre-NYO:

quite the usual Monday after Friday's NFP. Some pairs still not settled down yet. Good to stand aside and wait till tomorrow.

USDJPY Week24 H4 NYO

with NYO, this looks like a valid TMS setup.
maybe a quick grab 20pips R:R 1:1

The APB is part of this TMS and suppose to be less stressful when we trade. But your smoothed APB help remove more noise in the price and we see the real price candles better. That's why I like.

Thanks Direwolf for the thread link. Just started read first few posts and it is very good stuff. Must find time and read on.

NYO looks not nice with no momentum follow through. Cut position is better thing to do now.
Price is still inside the wide range bar so we wait for the breakout of this range.

Trade taken a few hours ago. Stop at b/e+

Relying on the default settings for any indicator, and applying those settings equally to all TFs, these days, is IMO, misguided. I have come across a small number of traders who over the years have experimented with different settings for some indicators, with some success. So I was wondering if the same approach could not be applied to TMS on the Daily. For example see attached. I have not tested this, but changing the TDI settings to 55. 4. 14. smooths things out.

So instead of adding more indicators, make 1 work better for you. The market has changed so much since all these indicators were conceived that it is logical that they require tweaking to adapt to today's conditions.

Just a thought.

Trade taken on H4 last friday. Took profit just a while ago

another trade. Already at b/e+ and approaching target

trade taken where blue line is. Slightly underwater now