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The Buy Low and Sell High System, the best way to make money

  • #161
  • Nov 28, 2014 4:49am Nov 28, 2014 4:49am
yes.. I stil am... got in little late though:
Attached Image (click to enlarge)
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  • #162
  • Edited 7:38am Nov 28, 2014 5:07am | Edited 7:38am
Quoting dagoods
really profitable. And when a trade is wrong, take the loss and move on to the next profitable trade!
What a Very nice thread! Thanks![/quote]
Yeah holding on a losing trade is very bad for the following reasons:

1) is not good for your mind, it bring you in a state of temporarily constant worry.
2) if the losing trade is kept for long enough, it will bring a temporarily state of depression, that may be more or less severe depending on the floating loss.
3) depression and worry if kept long enough do impact the health of the trader.

So, holding a losing trade damage your mind and your body, in some case the depression is so strong that the social life of the trader is highly impacted, and let's not forget that trading is the second profession in terms of suicides (the first is the profession of doctors).

About trading, we can continue:

4) a losing position most of the time become bigger and bigger with time, leading to a total loss of the account.
5) while you are holding on a losing position you miss many great new opportunities in the market.

Of course is always a pain to take a loss, but it's like (to make a metaphor) having a gangrenous finger, it is painful to cut it but you have to do or the gangrene will extend to the whole body leading to death.

Sorry for the macabre metaphor!

Edit:
Oh and a cut finger is lost forever, while a trading loss can be recovered with just 1 profitable trade
  • #163
  • Nov 28, 2014 5:08am Nov 28, 2014 5:08am
Quoting farix
yes.. I stil am... got in little late though: {image}
  • #164
  • Nov 28, 2014 5:48am Nov 28, 2014 5:48am
And what do you think about that??
Am I getting this right?
Attached Image (click to enlarge)
Click to Enlarge Name: usdjpy-m30-admiral-markets-as.png Size: 33 KB
  • #165
  • Nov 28, 2014 6:00am Nov 28, 2014 6:00am
Quoting tunera
{quote} What a Very nice thread! Thanks!
Yeah holding on a losing trade is very bad for the following reasons: 1) is not good for your mind, it bring you in a state of temporarily constant worry. 2) if the losing trade is kept for long enough, it will bring a temporarily state of depression, that may be more or less severe depending on the floating loss. 3) depression and worry if kept long enough do impact the health of the trader. So, holding a losing trade damage your mind and your body, in some case the depression is so strong that the social life of the trader is highly impacted, and let's not forget that trading is the second profession in terms of suicides (the first is the profession of doctors). About trading, we can continue: 4) a losing position most of the time become bigger and bigger with time, leading to a total loss of the account. 5) while you are holding on a losing position you miss many great new opportunities in the market. Of course is always a pain to take a loss, but it's like (to make a metaphor) having a gangrenous finger, it is painful to cut it but you have to do or the gangrene will extend to the whole body leading to death. Sorry for the macabre metaphor![/quote]


right. Big time. i is sorry too. i's can take it! thanks!
  • #166
  • Nov 28, 2014 7:32am Nov 28, 2014 7:32am
Quoting tunera
{quote} Gbpusd very high now, this is a medium-term selling zone, not everyday we have such kind of opportunity. And i guess all i had to share i've shared already, so i will let the thread continue on its own now (if it ever will continue lol). Take care guys! {image}
At the end it seems that it had some meaning after all, they always have.
Sure the upmove scared the hell out of me..
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  • #167
  • Nov 28, 2014 9:25am Nov 28, 2014 9:25am
Quote
At the end it seems that it had some meaning after all, they always have.
Sure the upmove scared the hell out of me..

Nice thread tunera.
I use similar methods but i run less hope than yourself.
You can get lean on the fringes when you do what you're doing. You'll avoid having to sit there uncomfortable and scared as hell.
As traders we shouldn't be running question marks, we should know exactly what is going on.

In the wrong hands this method can eat you alive.
A slight lapse in discipline and nasty things happen.

Keep at it.
Rgds
  • #168
  • Edited 10:09am Nov 28, 2014 9:49am | Edited 10:09am
Quoting farix
And what do you think about that?? Am I getting this right? {image}
Hello, in some way you are doing it right, selling above a previous top, but you are doing a few wrong things:

1) Look at the image below, usdjpy is clearly in a strong uptrend, we want to buy low and sell high, however we must do this with some good sense, selling a strong uptrend is very dangerous.

2) Technically, you should have waited at least for the monday high to be reached (that was the first "relevant" high between the friday lows and yesterday lows) before start looking for sell signals.

About the point 2), i've just covered this part of the system with the first pictures i posted in this thread, but in a very superficial way.

So, yeah these 2 mistakes you've made, just pick up the wrong top and traded against a strong trend (that can be dangerous, but it is not essentially a "NO" thing, some trends are weak and trading against them at the right moment is the right thing to do).

Good job by the way!

Quoting tunera
{quote} Hello, in some way you are doing it right, selling above a previous top, but you are doing a few wrong things: 1) Look at the image below, usdjpy is clearly in a strong uptrend, we want to buy low and sell high, however we must do this with some good sense, selling a strong uptrend is very dangerous. 2) Technically, you should have waited at least for the monday high to be reached (that was the first "relevant" high between the friday lows and yesterday lows) before start looking for sell signals. About the point 2), i've just covered this...
To make some light on this, if you look at post #10 you will see an image that show more or less how to trade uptrends and downtrends.

The image below show a typical buy low situation (usdjpy), now you want to sell high, no problem.
However, you have sold at around the second red rectangle, it is in the middle of the range, it is not "high".

Remember, we want to buy low and sell high, not in the middle.

Hope it's of help to you.
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: downtrend uptrend.png Size: 10 KB
  • #169
  • Nov 28, 2014 12:24pm Nov 28, 2014 12:24pm
Thank you for your time and effort.
You are very kind person!

Yes I understand the concept, but i have hard times applying (timing?) it. Yes it is easy, but for a forex noob hitting the right entering points and taking right tp, sl.....
well... as I looked your last graph with purple rectangles...at that time, my graph at MT4 looks the same. So where am I wrong? I just entered too early. Why? I guess, I didnt think that the price would hit so high, and I used smaller time graph, and also didn't wait for sell signals. Think that's just a skill that everyone has to develop.
No problems, I use a demo account And I'm here to learn.

Another thing about trends. Again it may be uptrend on D1 chart and lowtrend on M15.. again gets a little confusing for me. Which one should i look?

Anyway, big thanks to you, and I will keep using this method until I get it right.

Now about that USD/JPY
If theres no retest at mondays lows..it still may go up to even earlier (20th) highs, adn then we look again??
So we do not sell before we see a significant move in the candles??

Thanks!
  • #170
  • Nov 28, 2014 12:31pm Nov 28, 2014 12:31pm
Quoting skfx
{quote} Nice thread tunera. I use similar methods but i run less hope than yourself. You can get lean on the fringes when you do what you're doing. You'll avoid having to sit there uncomfortable and scared as hell. As traders we shouldn't be running question marks, we should know exactly what is going on. In the wrong hands this method can eat you alive. A slight lapse in discipline and nasty things happen. Keep at it. Rgds
  • #171
  • Nov 28, 2014 9:11pm Nov 28, 2014 9:11pm
About usdjpy, a long-term view to understand where it's going.
Attached Image (click to enlarge)
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  • #172
  • Nov 28, 2014 11:05pm Nov 28, 2014 11:05pm
Quoting farix
Thank you for your time and effort. You are very kind person! Yes I understand the concept, but i have hard times applying (timing?) it. Yes it is easy, but for a forex noob hitting the right entering points and taking right tp, sl..... well... as I looked your last graph with purple rectangles...at that time, my graph at MT4 looks the same. So where am I wrong? I just entered too early. Why? I guess, I didnt think that the price would hit so high, and I used smaller time graph, and also didn't wait for sell signals. Think that's just a skill that...
I'm glad you didn't found my last post rude, as you say:

"So where am I wrong? I just entered too early. Why? I guess, I didnt think that the price would hit so high, and I used smaller time graph, and also didn't wait for sell signals. Think that's just a skill that everyone has to develop." You are right.

You see you are still new so it's absolutely normal to make mistakes, it is my opinion that trading take a decade to be mastered (and even then, you will still make mistake from time to time), like any other profession.

As for your last usdjpy question, you can see from the above post that the next relevant resistance on usdjpy (long term) is around 2007 highs, so just be careful on selling it.

One last advice, and many may not agree with this, stop demo trading as soon as possible and start trading with real money, keeping in mind that you will probably lose your first few accounts.
You may trade demo for 50 years and you will still be a total newbie when you'll start trading real money, so we can consider demo a waste of time (it's indeed useful to learn how to use metatrader, where the buttons to click are etc.).

  • #173
  • Nov 28, 2014 11:53pm Nov 28, 2014 11:53pm
Quoting Rhavy
{quote} Yeah holding on a losing trade is very bad for the following reasons: 1) is not good for your mind, it bring you in a state of temporarily constant worry. 2) if the losing trade is kept for long enough, it will bring a temporarily state of depression, that may be more or less severe depending on the floating loss. 3) depression and worry if kept long enough do impact the health of the trader. So, holding a losing trade damage your mind and your body, in some case the depression is so strong that the social life of the trader is highly impacted,...
tunera spoke everything [/quote]

I totally agree with you, got an opportunity to learn more, as I'm a new trader, recently started trading and appreciate what you shared. Please guide me what things do I need to learn before I start stock trading.
Regards,
  • #174
  • Nov 29, 2014 5:35am Nov 29, 2014 5:35am
Nice thread. Interesting methodology. I saw here many timeframes. So which one is the best and which are you trade tunera? Personally i think it could be good from 1h chart. In lower timeframes is too much noise, but tell me, it's working for you well on 5m for example?
  • #175
  • Nov 29, 2014 6:17am Nov 29, 2014 6:17am
Am i understand good this system if i will looking for shorts in this blue area in
EURCHF pair? https://charts.mql5.com/6/354/eurchf...al-markets.png
CADJPY can i buy immediatelly at Monday open, isn't it? https://charts.mql5.com/6/354/cadjpy...al-markets.png
GBPJPY buy https://charts.mql5.com/6/354/gbpjpy...al-markets.png
AUDNZD sell https://charts.mql5.com/6/354/audnzd...al-markets.png
AUDJPY buy https://charts.mql5.com/6/354/audjpy...al-markets.png
USDMXN buy https://charts.mql5.com/6/354/usdmxn...al-markets.png
  • #176
  • Edited 6:43am Nov 29, 2014 6:30am | Edited 6:43am
Quote
Yes I understand the concept, but i have hard times applying (timing?)
Timing isn't your issue farix. I would say a resolute confidence is missing. What you don't want to do is guess.
They'll clear highs/lows to pick liquidity up(either to adjust inventory or initiate with macro flows). It'll either be there or it won't, simple.


What will make it easier is this.

1. Macro flows (A little work but fairly simple). If you want an example just let me know.
2. Hint: spot FX price/prices just shouldn't be where they are at times. In simple terms...they are lying to you. You just don't know it yet.(If you knew they were lying, you wouldn't be so uncomfortable on the fringes doing what you're doing).
For obvious reasons i will never(not for any amount of money) divulge point 2 on a public forum.
3. Liquidity (What you're doing here in this thread).


If you have these 3 and trade with discipline, you can take as much as you want. 'They' certainly do.
You can do this safely with relatively low risk.
Rgds
  • #177
  • Nov 29, 2014 10:00am Nov 29, 2014 10:00am
Thank you for your answer!

Well i guess I can only build my confidence with experience.

An example of point 1. would be more than helpful.

Thanks!
  • #178
  • Nov 29, 2014 3:57pm Nov 29, 2014 3:57pm
Great strategy....
I use almost the same concept by 3 years but in a scalping style.. i use 15-30 min and 1h charts, and it is very profitable..
The main important thing in the system is the very low drawdrown and the very good R:R you can take.
Usually i use it using 5-6 pips stop loss earning 15-20 pips.
Price always make the same , TREND - RANGE - HUNTING STOP -REVERSING TREND.
  • #179
  • Nov 29, 2014 4:06pm Nov 29, 2014 4:06pm
Quoting Gurudeva
Great strategy.... I use almost the same concept by 3 years but in a scalping style.. i use 15-30 min and 1h charts, and it is very profitable.. The main important thing in the system is the very low drawdrown and the very good R:R you can take. Usually i use it using 5-6 pips stop loss earning 15-20 pips. Price always make the same , TREND - RANGE - HUNTING STOP -REVERSING TREND.
Nice!
Care to explain how do you transform it into a strategy?
My main focus now is how to enter a trade...just enter when price is above/below previous high/low, or wait for confirmation.

Thanks in advance
  • #180
  • Nov 29, 2014 4:18pm Nov 29, 2014 4:18pm
Quoting bradu
{quote} Nice! Care to explain how do you transform it into a strategy? My main focus now is how to enter a trade...just enter when price is above/below previous high/low, or wait for confirmation. Thanks in advance
This depend by you...you can wait a confirmation as well....like a pin bar or something like that.
When price is on some strong level has two change : break it, or make a fake breakout...
First image is 1H
Second image 5min...
By the way i dont want to create confusion cause this is scalping and it's different.
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