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Trading is as simple as 1-2-3

  • #861
  • Apr 1, 2016 10:17am Apr 1, 2016 10:17am
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"Perfection is not when you have nothing more to add, but when you have nothing more to take away." - Antoine De Saint Exupery

"It is not about adding on, but taking away. The less technique, the better you are." - Bruce Lee

I repeat this so new comers don't have to go back to the first post:

A bar makes a NEW DAILY high and closes. Next bar fails to make a higher high and reverses. Sell when price drops below the open price of the current bar.

A bar makes a NEW DAILY low and closes. Next bar fails to make a lower low and reverses. Buy when price rises above the open price of the current bar.

Let me rephrase in the form of yes/no or true/false questions.

1) Did a new daily high or new daily low happen during the previous bar. If YES/TRUE go to question 2, otherwise find another pair.

2) Did this bar test ( get near ) the new daily high or new daily low of the previous bar. If YES/TRUE go to question 3, otherwise find another pair.

3) Has price returned to the open price of the current bar. If YES/TRUE enter the trade in the direction price is crossing the open, otherwise do not enter the trade.

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.


Please understand none of this is original or new and this is presented for EDUCATIONAL PURPOSES ONLY. You may find your results may differ. Please check with an accredited financial specialist before using real money. FOREX trading can be risky. YOU HAVE BEEN WARNED!
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #862
  • Apr 1, 2016 10:46am Apr 1, 2016 10:46am
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My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #863
  • Apr 1, 2016 10:53am Apr 1, 2016 10:53am
My answer to WHY TRADERS LOSE:

Ignorance is why traders lose.
Believing in that which is not true.
Trading is simple to do but hard to master.
Buy, sell or wait.
What shall one do?
If only...
As a trader, I do the same simple trade every day I trade.
It makes a handful of pips most of the time.
I don't listen to the naysayers.
What others think (of me) is none of my business.

WHAT IS YOUR ANSWER?
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #864
  • Apr 1, 2016 10:59am Apr 1, 2016 10:59am
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Did you think price would return to the daily open?
Did you think price would return to the daily open after it made the high of the day?
Did you think price would return to the daily open after it made the low of the day?

Rather than think, observe what price is doing and trade accordingly.

Is price moving towards the daily open or moving away from it?
Is price moving towards the daily high or moving away from it?
Is price moving towards the daily low or moving away from it?


"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #865
  • Apr 1, 2016 11:00am Apr 1, 2016 11:00am
If this is your first time viewing my journal, please say "HI", don't be shy.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #866
  • Apr 1, 2016 11:01am Apr 1, 2016 11:01am
Quoting TooSlow
My answer to WHY TRADERS LOSE: Ignorance is why traders lose. Believing in that which is not true. Trading is simple to do but hard to master. Buy, sell or wait. What shall one do? If only... As a trader, I do the same simple trade every day I trade. It makes a handful of pips most of the time. I don't listen to the naysayers. What others think (of me) is none of my business. WHAT IS YOUR ANSWER?
Traders lose because they do not understand risk, and they cannot read price action.
If you are good at something, never do it for free--Joker
  • #867
  • Apr 1, 2016 11:19am Apr 1, 2016 11:19am
Quoting TooSlow
...It makes a handful of pips most of the time...
Different trading styles fit different people. Except for the lazy, each trader must work out his own 'salvation'. Congratulations on figuring out what works for you.
  • #868
  • Apr 1, 2016 11:24am Apr 1, 2016 11:24am
Quoting LITEchild
{quote} Different trading styles fit different people. Except for the lazy, each trader must work out his own 'salvation'. Congratulations on figuring out what works for you.
If you are good at something, never do it for free--Joker
  • #869
  • Apr 1, 2016 12:09pm Apr 1, 2016 12:09pm
Quoting jmn5611
{quote} Traders lose because they do not understand risk, and they cannot read price action.
Those fall under the IGNORANCE heading.Thanks.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #870
  • Apr 1, 2016 12:11pm Apr 1, 2016 12:11pm
Quoting LITEchild
{quote} Different trading styles fit different people. Except for the lazy, each trader must work out his own 'salvation'. Congratulations on figuring out what works for you.
Yes.Each trader either figures out what works for them or their trading career ends.Thanks.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #871
  • Apr 1, 2016 12:12pm Apr 1, 2016 12:12pm
Quoting TooSlow
{quote} Those fall under the IGNORANCE heading.Thanks.
Yes, of course it does. But traders are better served by highlighting what the they are ignorant of. Simply saying that they are ignorant does not help.
If you are good at something, never do it for free--Joker
  • #872
  • Apr 1, 2016 12:38pm Apr 1, 2016 12:38pm
Quoting jmn5611
{quote} Yes, of course it does. But traders are better served by highlighting what the they are ignorant of. Simply saying that they are ignorant does not help.
Point taken.
Thanks.
The list could be endless.
And highly debatable.
Price action is usually mentioned by someone trying to sound smart but rarely defined.
They make it seem esoteric.
There's a simple explanation I read somewhere... Will post soon.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #873
  • Apr 1, 2016 12:53pm Apr 1, 2016 12:53pm
Quoting TooSlow
{quote} They make it seem esoteric.
There are no bad students. Only bad teachers.
  • #874
  • Apr 1, 2016 7:26pm Apr 1, 2016 7:26pm
Quoting TooSlow
{quote} Point taken. Thanks. The list could be endless. And highly debatable. Price action is usually mentioned by someone trying to sound smart but rarely defined. They make it seem esoteric. There's a simple explanation I read somewhere... Will post soon.
The sadness about sounding esoteric is that I have not met any PA traders that sound that way. If price is going up, buy, if price is going down, sell. Nothing hard about that.
If you are good at something, never do it for free--Joker
  • #875
  • Apr 1, 2016 11:43pm Apr 1, 2016 11:43pm
FIRST IMPRESSIONS.

Are your first impressions about a person usually right or wrong?
Either way they influence how you treat and react to that person unless and until you get to know the person better or obtain more information about them.
How long does it take you to change your opinion of them when your first impression was wrong?

Apply that to trading. You observe a chart and decide which way price is moving.
That's your first impression.
The P/L column tells you how accurate your observation about price is in real time.
If it is not accurate, how long will it take before you exit?
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #876
  • Edited Apr 2, 2016 2:03pm Apr 1, 2016 11:47pm | Edited Apr 2, 2016 2:03pm
Quoting jmn5611
{quote} The sadness about sounding esoteric is that I have not met any PA traders that sound that way. If price is going up, buy, if price is going down, sell. Nothing hard about that.
Please share a link to such a thread.
Thanks.

Maybe I should have chosen pompous instead of or in addition to esoteric.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #877
  • Apr 2, 2016 12:07am Apr 2, 2016 12:07am
Quoting TooSlow
{quote} Please share a link to such a thread. Thanks.Maybe I should have chosen pompous instead of or in addition to esoteric.
I'm sure a quick google will dump tons of information on you. There is also the classic Edwards and Magee. That alone should keep any new or intermediate trader busy for quite some time. If the receiver of information gets emotions from any information other than bad news about the safety and well being of themselves or others, that shows a significant lack of emotional discipline. That is critical to the success of any trader. If you know people who do that, try and help them with that. It is a very bad habit to draw emotional conclusions from non health threatening information.
If you are good at something, never do it for free--Joker
  • #878
  • Apr 2, 2016 2:03pm Apr 2, 2016 2:03pm
"Most people think they have perfectly good bullshit detectors. But if that were the case, trial juries would always be unanimous, and we’d all have the same religious beliefs." - Scott Adams, "How to Fail at Almost Everything and Still Win Big: Kind of the Story of My Life"

What effect would that have on the markets?

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #879
  • Apr 2, 2016 2:11pm Apr 2, 2016 2:11pm
Quoting TooSlow
{quote} Point taken. Thanks. The list could be endless. And highly debatable. Price action is usually mentioned by someone trying to sound smart but rarely defined. They make it seem esoteric. There's a simple explanation I read somewhere... Will post soon.
Found the explanation:


PRICE ACTION

“Now, 2 patterns of market behavior happen on a regular basis:
1) the price breaks to new high's (or low's)
2) the price reverses from new high's (or low's)
They happen regardless of time frame .
They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist.” - H. Rearden

1) Price will either breakout of the high, low or both of the previous bar
2) Price will not breakout of the previous bar.

You cannot reduce it any further.
Anything else complicates the issue.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #880
  • Apr 3, 2016 3:35pm Apr 3, 2016 3:35pm
Mark Douglas 5 fundamental truths:

  1. Anything can happen
  2. You can make money without knowing what is going to happen next
  3. There is a random distribution of wins and losses that define an edge
  4. An edge is just the greater probability of one thing happening over another
  5. Every moment in the market is unique

​

As Mark Douglas says: You need to change your thinking. The goal is to reach a care-free state of mind. When a pattern presents itself, dont think. Theres nothing to think about. Take the trade because you have an edge. Then odds, probability and your risk control mechanisms will take care of everything. In the end, the key is to learn more about yourself. The most important lesson though is the importance of viewing every single trade as being part of a series of trades. Something that he talks about extensively in his book Trading in the Zone:

There is a random distribution between wins and losses for any given set of variables that define an edge. In other words, based on the past performance of your edge, you may know that out of the next 20 trades, 12 will be winners and 8 will be losers. What you dont know is the sequence of wins and losses or how much money the market is going to make available on the winning trades. This truth makes trading a probability or numbers game. When you really believe that trading is simply a probability game, concepts like right and wrong or win and lose no longer have the same significance. As a result, your expectations will be in harmony with the possibilities. Mark Douglas: Trading in the Zone

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My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
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