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The Trader's Academy - by Traders for Traders

  • #101
  • Oct 30, 2015 5:15pm Oct 30, 2015 5:15pm
Next time you find yourself wondering whether to exit a trade or not, ask yourself whether there is a rational reason for exiting the trade. If there is, such as what you consider to be a level of S&R, then sure, go ahead and exit if you are happy with your profit. If there isn't, then ask yourself why other traders also in this market move will also be exiting their positions at this level? If there seems no reason why they would be, then stay in the trade. Remember, whatever the move, on whatever time frame you trade, traders will always look to take the price to a certain level such as a major moving average, fib level, pivot point or whatever - the price rarely reverses in the middle of nowhere unless there is some data release. Having a level to aim for with your trades, will prevent you from exiting them too early, but be realistic with your goals and avoid being too greedy hoping for more than the market will give you.
  • #102
  • Oct 30, 2015 5:22pm Oct 30, 2015 5:22pm
"To fulfill a dream, to be allowed to sweat over lonely labor, to be given a chance to create, is the meat and potatoes of life. The money is the gravy." -Bette Davis
  • #103
  • Oct 30, 2015 7:11pm Oct 30, 2015 7:11pm
Quoting cat
Next time you find yourself wondering whether to exit a trade or not, ask yourself whether there is a rational reason for exiting the trade. If there is, such as what you consider to be a level of S&R, then sure, go ahead and exit if you are happy with your profit. If there isn't, then ask yourself why other traders also in this market move will also be exiting their positions at this level? If there seems no reason why they would be, then stay in the trade. Remember, whatever the move, on whatever time frame you trade, traders will always look...
In my reviews of the day's trading (the single most important thing any trader should do) I write copious notes on a screenshot of the day's chart. I have found myself frequently writing FUD (Fear Uncertainty and Doubt) against trades which I have exited too early. It is an issue which all traders bump into on occasions, recently I seem to have had a few too many. To overcome this I turned the issue on its head, I now ask myself the simple question would I consider entering here if I was out of the trade? A simple view from a different perspective. This seems to work for me.
Katte, kabuto no o wo shime yo. Size doesn't matter, leverage is the killer
  • #104
  • Oct 30, 2015 7:19pm Oct 30, 2015 7:19pm
Quoting cat
Useful tip for ... {image}

Diversion or divergence? I suspect there is no difference.

What a good thread.
Katte, kabuto no o wo shime yo. Size doesn't matter, leverage is the killer
  • #105
  • Edited 6:34am Oct 31, 2015 5:53am | Edited 6:34am
Quoting cat
Great quote I've just heard, here it is - " People coming into trading need to be certain that trading is what they really want to do. Trading is trans formative - you won't go out the same person that went in because in terms of who you are, you will be forced to see your failures in the mirror all the time, and you will keep seeing them until you transform yourself to elevate to the next level, and then you go through that process again..." Francis Hunt.
An Excellent Quote !


Quoting revoli
{quote} Diversion or divergence? I suspect there is no difference. What a good thread.
Glad you are being strong and feeling well, my friend.

Best
D.P.

P.S. My 2 cents (Friday's trade) added below.
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Hunting High and Low
  • #106
  • Oct 31, 2015 8:14am Oct 31, 2015 8:14am
Quoting revoli
{quote} In my reviews of the day's trading (the single most important thing any trader should do) I write copious notes on a screenshot of the day's chart. I have found myself frequently writing FUD (Fear Uncertainty and Doubt) against trades which I have exited too early. It is an issue which all traders bump into on occasions, recently I seem to have had a few too many. To overcome this I turned the issue on its head, I now ask myself the simple question would I consider entering here if I was out of the trade? A simple view from a different perspective....
That's also a good way to look at it, but of course, it very much depends upon where S@R has been found and how the chart is looking, because sometimes the price will change direction quickly and other times it will move sideways until the next move. Often I will exit a trade even if I am expecting the price to carry on in that direction all day, because I would rather take 60 pips at a level I believe will offer temporary support or resistance, and look to get in again later if I'm right, than sit through a 50% drawdown in my profit. Exits are difficult though, and definitely the one area of trading this is hardest to perfect, not that I like using that word for trading, but you know what I mean.

Really glad you like the thread
  • #107
  • Oct 31, 2015 9:36am Oct 31, 2015 9:36am
Simple little trading tip, especially important for traders like me who rely on precision entries and a small stop loss ( 10-15 pips on a 10/30 second chart )

 

  1. Always wait for the price to pull back, it usually does. Trades should not be reactionary: you should know what you are going to do before you do it, which means letting the price come to you, not the other way around. So when I have a level of support or resistance that I am hopeful that the price will obey, I do nothing until the price has first move away from it, and then dropped back to what will normally be a higher low for a buy and vise-versa for a sell. If this happens, and I see a good confirming candle ( I've talked about candles in a previous post ) after the price has failed to break the previous low/high, I will trade as soon as it closes, so I'm watching the candles closely ( remember, I enter on a 10 sec TF, and any hesitation can see the price move quickly away from my risk tolerance zone, and I never trade if this happens, but always wait for another chance to get in if it comes) Usually, there is some kind of give away candle to trade off, but if there isn't, then another place to enter is the close above or below a trend line, or simply waiting until a candle closes the other side of my MA20 exponential, which is my central moving average around which the price moves. For me it is very important to have a central moving average, rather like a play maker in a game of football or rugby, around whom the rest of the team manoeuvre.

  • #108
  • Nov 1, 2015 5:23am Nov 1, 2015 5:23am
Quoting cat
Hi Kiwi, good to hear from you, and congrats on the rugby, it was a great game, couldn't believe how well SA defended and the score so close despite the All blacks having the vast majority of the game. I think you should go on to win it now, I can't see either Argentina or the Aussies coming anywhere close if the All Blacks play well. Dojis are powerful candles indeed, but like every other indicator, they are nothing if not backed up by others. A single Doji say on an hourly time frame is worth noting, but only if it apperas at a pre-determined...
Yes - I tried watching Wall Street (Warriors) but couldn't relate. More for the curious or dreamers maybe.
I tried looking for videos of Retail Traders at work ( from home etc) but a search of You Tube usually threw up snake oil sales men selling various courses, or advertisements exhorting you to eschew any You Tube videos and to buy his video course instead ??
Pity -it would be nice to see a guy/girl trading from home with a small retail (compared to Wall street) account of a few grand. Maybe a spread bet account if he/she trades from the UK?
Interesting thread you have here by the way.
every Saint has a past. Every Sinner has a Future
  • #109
  • Nov 1, 2015 5:40am Nov 1, 2015 5:40am
Quoting cat
Someone asked me about the trading platform I use, because they have no access to time frames any smaller than 1 minute on MT4. This was my answer - You are right, MT4 doesn't support TFs less than 1 minute which is why I don't use it. I use those supplied by IT Finance. You can get them either by way of a monthly subscription to 'Prorealtime', or free with IG Index if you trade a minimum of two trades per month, or completely free from ' Intertrader ', but IG Index are best as they offer much more historical data for backtesting purposes....
You say you trade mostly the Dax. I trade mostly 15 minute Forex (E/J) and 5 minute Brent ,but I have less experience than you as a trader. I trade Brent on five minute charts but keep looking at the Dax since it seems less "spikey" than Brent. I post one chart of Dax marked with hypothetical trades (I use levels and candles like dblhc, dojis etc gleaned from the likes of James16 etc) with a question. I use three minute charts -is that about the average time frame that a serious retail trader of Dax would use?
Feel free to comment since it will be filed for serious study
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every Saint has a past. Every Sinner has a Future
  • #110
  • Nov 1, 2015 7:12am Nov 1, 2015 7:12am
Quoting turnip15
{quote} You say you trade mostly the Dax. I trade mostly 15 minute Forex (E/J) and 5 minute Brent ,but I have less experience than you as a trader. I trade Brent on five minute charts but keep looking at the Dax since it seems less "spikey" than Brent. I post one chart of Dax marked with hypothetical trades (I use levels and candles like dblhc, dojis etc gleaned from the likes of James16 etc) with a question. I use three minute charts -is that about the average time frame that a serious retail trader of Dax would use? Feel free to comment since...
Thank you Turnip, glad you like the thread. It seems to be helping a few people, which of course was my intention. Yes, I do trade mostly the Dax, though I trade the Dow as well during Wall street hours. I don't really know what the average time frame for a Dax retail trader would be, if there is one. Three minutes though is one of the time frames I use, not to enter trades, but a TF which seems to capture the entirety of the sort of change of direction an intraday trader is looking for, so yes, I think it could well be a popular time frame, though most people tend to stick to 1m, 5m, 10m etc. I try to use time frames in such a way that each one will be an extension rather than an overlap of the last, so for example, I'll have a 10 second, then a 30 sec, then a 1 minute ( my only exception to this rule as it is such an important time frame to have open for intraday traders ) then 3m, 10m, 30m. These combined will give me both my entries and my exits by capturing everything I need to see for that day, though I will move up to bigger time frames such as H1, H2, H4 if the 30m S&R is broken to see where the next levels of S&R are likely to be.
  • #111
  • Nov 1, 2015 7:47am Nov 1, 2015 7:47am
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  • #112
  • Nov 1, 2015 8:19am Nov 1, 2015 8:19am
The Dax about 20 mins after the London open. Momentum is down, but with the Dax, especially around the London ope, this set up was about 20mins later, there can be a powerful move, very often back up if the price has been falling, before it finds resistance to fall again. The 27th was just such a day. This was was worth 60 pips, so always worth taking if the set up looks right. I've tried to make this screenshot as self-explanatory as possible. The main focus here is the 200ema - if the price is still quite a long way from it on the chart, then there;s a good chance that it will come strongly back, stopping you out if your entry was poorly timed using a tight SL. As it says, wait for the whole thing to narrow down and aim to open your entry closer to the 200ema. Once the price has come back off it once, and with it now close to it at point of the apex, it is pretty unlikely to come back again, because this will be the area where all the traders out there who have recognized this long opportunity, will be opening their positions.
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  • #113
  • Nov 2, 2015 3:58am Nov 2, 2015 3:58am
GM Cat - you were correct - I did need to try a lower TF chart - here the 15 second with my entries for the first hour. I did NOT get all of those points shown - just a good % of them, so thanks for the heads up
Best
Islander
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Trading Levels with WRBs
  • #114
  • Nov 2, 2015 4:00am Nov 2, 2015 4:00am
5 common trading psychology mistake of forex newbies:



1. Overconfidence.

2. Lack of emotional control.

3. Fooling yourself.

4. Jumping the gun.

5. Not thinking in probabilities.



Yomi.
Time always comes before price
  • #115
  • Nov 2, 2015 6:48am Nov 2, 2015 6:48am
Quoting cat
{quote} Thank you Turnip, glad you like the thread. It seems to be helping a few people, which of course was my intention. Yes, I do trade mostly the Dax, though I trade the Dow as well during Wall street hours. I don't really know what the average time frame for a Dax retail trader would be, if there is one. Three minutes though is one of the time frames I use, not to enter trades, but a TF which seems to capture the entirety of the sort of change of direction an intraday trader is looking for, so yes, I think it could well be a popular time frame,...
Thanks Cat. Do you IG for trading the Dax. If so, do you find them reliable ?
every Saint has a past. Every Sinner has a Future
  • #116
  • Nov 2, 2015 7:17am Nov 2, 2015 7:17am
Quoting turnip15
{quote} Thanks Cat. Do you IG for trading the Dax. If so, do you find them reliable ?
Yes they're pretty good, as reliable as any broker and I've never had any major issues with them, execution is fast though like any broker you'll get some slippage if you jump into a fast moving price. I use them for the charts mostly as I've used Proealtime software from the very first day I ever looked at a chart.
  • #117
  • Nov 2, 2015 7:21am Nov 2, 2015 7:21am
Quoting Islander
GM Cat - you were correct - I did need to try a lower TF chart - here the 15 second with my entries for the first hour. I did NOT get all of those points shown - just a good % of them, so thanks for the heads up Best Islander {image}
Yes, this the THE biggest advantage with using such small time frames, the way you can easily identify areas to jump on board following a pullback. Glad it works for you
  • #118
  • Nov 3, 2015 3:56am Nov 3, 2015 3:56am
3 things to remember in following your forex trade plan:



1. Stay disciplined.

2. Distinguish justified wins from unjustified wins.

3. consistency is crucial!




NB: Be rigid in your plan and flexible in your expectations

Yomi.
Time always comes before price
  • #119
  • Nov 3, 2015 4:07am Nov 3, 2015 4:07am
A friend of mine here on ff told me something he'd picked up which is worth sharing, and that is to " trade around the edges ", which I thought was a great phrase for summing up the most effective way to trade. Imagine a circle on your computer screen, with a little white dot inside it moving around. To buy or sell this dot, you have to wait for it to make contact with one of the edges, and you avoid doing anything when it is floating around in the middle somewhere. That essentially is trading, having the skill and experience to know when the price is about to fall and when it is about to rise. If you feel you do not have this skill, and you are struggling with your trading, opening positions in the wrong place and getting stopped out all the time, then you are most likely opening positions when the dot is somewhere in the middle of the circle rather than at the edges. All successful traders that I know of are able to buy just before the price rises and sell just before it falls, and they don't just do this instinctively, they do it because they have an observational charting system that shoes them the point of entry clearly enough for them to be able to make a decision to open a trade. They will of course take losses like everybody else, but their win/loss ratio will be well in their favour and the loss in terms of pips will always be small because once you learn to trade around the edges, you really don't need a big stop loss.
  • #120
  • Nov 3, 2015 4:24am Nov 3, 2015 4:24am
Quoting cat
A friend of mine here on ff told me something he'd picked up which is worth sharing, and that is to " trade around the edges ", which I thought was a great phrase for summing up the most effective way to trade. Imagine a circle on your computer screen, with a little white dot inside it moving around. To buy or sell this dot, you have to wait for it to make contact with one of the edges, and you avoid doing anything when it is floating around in the middle somewhere. That essentially is trading, having the skill and experience to know when the price...

Thanks Tell your friend he's right.



Yomi.
Time always comes before price
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