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Forex Trading Philosophy

Quoting zxdtrader
in any given time frame, if price doesn't break the high/low of the previous bar, price is ranging in that time frame.
An interesting definition zxtrader, I've been giving some thought to it. Assuming what you say is true, then, considering just the previous bar ...

1. price rarely ranges (not many 'inside' bars).
2. except for scalpers of say 5-10 pips, this range is not significant enough to pose a problem for trend followers.

The above to conclusions are hard for me to rationalize into an objective method of determining trending and ranging situations. A more elaborate explanation will be much appreciated.
Quoting sinqua
{quote} An interesting definition zxtrader, I've been giving some thought to it. Assuming what you say is true, then, considering just the previous bar ... 1. price rarely ranges (not many 'inside' bars). 2. except for scalpers of say 5-10 pips, this range is not significant enough to pose a problem for trend followers. The above to conclusions are hard for me to rationalize into an objective method of determining trending and ranging situations. A more elaborate explanation will be much appreciated.
then look 1 level higher the time frame? or x number of levels higher than the time frame you are looking at?

until the time frame makes some directional sense to you?
Effortless Trading

"I never plow... or spade... or cultivate... or weed...
or hoe... or use fertilizers... or use a poison spray...
or use a compost pile... or water."
~ Ruth Stout (1884-1980)

https://www.youtube.com/watch?v=GNU8IJzRHZk


"What I find interesting we find in agriculture;
Soil preparation, Fertilization, Irrigation, Weed control,
Pest issues, Crop rotation, ph issues...
None of those exist in nature.
I don't till the soil, I don't use fertilizers, I don't irrigate."
~ Paul Gautschi

https://vimeo.com/28055108


If you hear these guys, no doubt, you would think they're nuts. Until you see it for yourself and then you will get blown away. Why would you be surprised? because you have been taught and brainwashed in other ways. I've been backyard gardening for 3 years now and been following "Permaculture", just like these guys. Well, 5 years actually. My first 2 years of gardening was buying fertilizers and doing what the agriculture business told me to do. The agriculture business makes money selling fertilizers and machinery. I planted my potatoes with very little effort (took me 5 mins) and left it. The rain watered it for me. When I stopped fertilizing my cumquat tree, it actually bear more fruits.

Many thanks to the pioneers of Permaculture:

  1. Bill Mollison
  2. Masanobu Fukuoka
  3. Geoff Lawton

Why haven't you heard about these guys, because if we follow their system, then no-one will be buying fertilizers. Nobody irrigates the forest, yet man told you to irrigate. Nobody fertilizes the forest, yet man told you to fertilize. Nobody plows and till the soil in a forest, yet man told you to till and plow. (FYI: Did you know oil base fertilizers is one of the biggest pollutant on the earth and have destroyed a lot of our planet? Why didn't you know this, because you've been brainwashed).


"I don't back test. I don't look at history. I don't draw lines or TL.
I don't search for unicorn patterns. I don't predict the future price.
I don't use multiple TF. I don't use S/R or S/D zones.
I don't know where price will go and I don't care."
~ CrucialPoint

Price will go where it wants to go, and NOT where your opinion think it will go.
Perfection is NOT about adding more, but when there is nothing more to take away.
Effortless trading, make sure you give it some thought.


Peace,
CrucialPoint

Quoting CrucialPoint
Effortless Trading "I never plow... or spade... or cultivate... or weed... or hoe... or use fertilizers... or use a poison spray... or use a compost pile... or water." ~ Ruth Stout (1884-1980) https://www.youtube.com/watch?v=GNU8IJzRHZk "What I find interesting we find in agriculture; Soil preparation, Fertilization, Irrigation, Weed control, Pest issues, Crop rotation, ph issues... None of those exist in nature. I don't till the soil, I don't use fertilizers, I don't irrigate." ~ Paul Gautschi https://vimeo.com/28055108...

You are right CP.. I am a great follower of these three pioneers of Permaculture.. Even I have a plan (for future) to create a food forest based on permaculture concept... and I have been learning and watching lot of videos for last few years.... It's good to know that you too are a follower of permaculture....
Quoting CrucialPoint
Effortless Trading
I see this post has been up for 18 hours so far, and I am only the second one to say how good it is. Maybe if it was about the settings of an MA or Fib tool, it would have pages of replies by now. Instead it's a post that cuts to the core of Forex, Trading, Alchemy and Life, so no one cares.

Thank you CP for that great post. It should be archived in a special thread somewhere so that those that seek the holy grail of trading can find it when they are ready.
Holy Grail part 1. - Cut loses short.
Quoting zxdtrader
{quote} then look 1 level higher the time frame? or x number of levels higher than the time frame you are looking at? until the time frame makes some directional sense to you?
Yes that would be a good solution, thanks for your input.

Quote
"I don't back test. I don't look at history. I don't draw lines or TL.
I don't search for unicorn patterns. I don't predict the future price.
I don't use multiple TF. I don't use S/R or S/D zones.
I don't know where price will go and I don't care."
~ CrucialPoint

Price will go where it wants to go, and NOT where your opinion think it will go.
Perfection is NOT about adding more, but when there is nothing more to take away.
Effortless trading, make sure you give it some thought. ...

Ah CrucialPoint, your ideas really exercise the mind, much fun.

So l'll take your word as true. This brings me to one conclusion, entries do not matter (since price does not obey whatever entry you choose), what matters are exits so how does one 'randomly' enter and profit consistently...hmmm,

first quick idea exit based on time only.
second, pyramid out of losing trades till your loss threshold is hit, and pyramid into winners till your win threshold is met. (a bit more complex than this)

One relevant question to ask before continuing this trail of thought, CrucialPoint: Are your entries random?
Quoting mystic
{quote} I see this post has been up for 18 hours so far, and I am only the second one to say how good it is. Maybe if it was about the settings of an MA or Fib tool, it would have pages of replies by now. Instead it's a post that cuts to the core of Forex, Trading, Alchemy and Life, so no one cares. Thank you CP for that great post. It should be archived in a special thread somewhere so that those that seek the holy grail of trading can find it when they are ready.

I think those who seek are busy thinking over these things... you seem to understand what CP is talking about, your input would be welcome, so I pose the same questions and conclusions in my previous post to you.
"There are three kinds of people in this world. The optimistic that find the glass half full and the pessimistic that see it as half empty. Then there's the paranoid, and they just think that someone's drinking out of their glass."

"Which one are you?"

"I'm the one that knocks the glass over."

The Joker


As a trader we need to be willing to knock the glass over sometimes.
Illegitimi non carborundum - Noli pati a scelestis opprimi.
Quoting Rufus
"There are three kinds of people in this world. The optimistic that find the glass half full and the pessimistic that see it as half empty. Then there's the paranoid, and they just think that someone's drinking out of their glass." "Which one are you?" "I'm the one that knocks the glass over." The Joker As a trader we need to be willing to knock the glass over sometimes.



This got me to thinking about super hero mentality. There are no super heroes, only figments of imagination.

How counterproductive to trading would a superhero mentality be?

Need to think more like the Joker see the trade from every perspective, the winners, the losers, the market makers....Then knock the glass over.
Illegitimi non carborundum - Noli pati a scelestis opprimi.
Quoting zxdtrader
in any given time frame, if price doesn't break the high/low of the previous bar, price is ranging in that time frame.
The essence of price action.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
In the end we are all gamblers, some more profesional than others
Perfecting your entry will increase your profits
Quoting Deliciouspip
In the end we are all gamblers, some more profesional than others
a few similarities between gambling and currency trading do not necessarily categorize currency trading as gambling.
As Above, So Below
Quoting tashkent
{quote} a few similarities between gambling and currency trading do not necessarily categorize currency trading as gambling.
Gambling definition

noun

1.
the activity or practice of playing at a game of chance for money orother stakes.
2.
the act or practice of risking the loss of something important by takinga chance or acting recklessly


actually, it is
Perfecting your entry will increase your profits
Quoting Deliciouspip
{quote} Gambling definition noun 1. the activity or practice of playing at a game of chance for money orother stakes. 2. the act or practice of risking the loss of something important by takinga chance or acting recklessly actually, it is
these are what i meant by "a few similarities"
As Above, So Below
understand this quote and it will greatly help your trading:


"NOBODY KNOWS ANYTHING"




Note: this a very complicated concept to understand and most people will never understand the true meaning, there you get 95% losers in the markets.
As Above, So Below
Quoting tashkent
understand this quote and it will greatly help your trading: "NOBODY KNOWS ANYTHING" Note: this a very complicated concept to understand and most people will never understand the true meaning, there you get 95% losers in the markets.
we don't predict, we only ride
Quoting tashkent
NOBODY KNOWS ANYTHING
Inelegant but I love it. You may also be interested in George Soros' theory of reflexivity and the human uncertainty principle.
Quoting Deliciouspip
In the end we are all gamblers, some more profesional than others
Gamblers are playing a game, that they have no chance of winning. It's mathematically impossible. Trading is something very different.
Quoting tashkent
{quote} these are what i meant by "a few similarities"

http://cdn.themoth.org/wp-content/up...ngsYouDont.mp3

Incredible pod cast here. It is one of my favorites. The similarities between a professional gambler and a professional trader can be seen or heard here. Definitely worth a few minutes of listening.
Illegitimi non carborundum - Noli pati a scelestis opprimi.
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