Attachments: Trading Institutional Order Flow

Trading Institutional Order Flow

#121
May 11, 2016 11:22am May 11, 2016 11:22am

Lade
| Joined May 2016 | Status: Trader | 43 Posts

Whao, great lesson. but from my own end here i can see the market making a new low to like !.139 before it will RALLY up. but the truth is that at the end you are going to LAUGH.

#122
May 11, 2016 3:28pm May 11, 2016 3:28pm

jsk3010
| Joined Feb 2016 | Status: Trader | 109 Posts

Quoting Denden2012

Disliked

Good day everyone, I hope everyone is being showered by green pips. I wanted to share my battle with inner impulses and how we can mitigate these urges to be in a trade due to sudden movements. On NFP, I stupidly entered a long because I wanted to catch a reactionary move due to the news. I am learning to swing trade which requires PATIENCE! I did not follow my plan but rather wanted a quick scalp that turned into a 4 day holding session which has just now broken even (~60-80 pips in the red for 4 days). Fellow traders, if you feel you have an itchy...

Ignored

I usually have a stab at getting into a pair at a discount on NFP with a small position but Friday I did manage to resist.
Loads of good stuff here mate I'm still going through the same urges, but think over time the pain from my actions is starting to hit home and get my mind on track.

#123
May 11, 2016 3:30pm May 11, 2016 3:30pm

jsk3010
| Joined Feb 2016 | Status: Trader | 109 Posts

hey I even managed to not place a single trade today haha. That's good going for me!

Cheers

#124
May 11, 2016 5:18pm May 11, 2016 5:18pm

Akt
| Commercial User | Joined Jan 2016 | 2,682 Posts

Quoting jsk3010

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hey I even managed to not place a single trade today haha. That's good going for me! Cheers

Ignored

Hello jsk,

It's a rare trader who knows how to sit on hsi hands according to Jesse Livermore.

Sun Tzu said, "He will win who knows when to fight and when not to fight"

Well done to you

Be careful what you think because your thoughts run your life..Solomon

#125
May 12, 2016 2:49am May 12, 2016 2:49am

cuchuflito
Joined Nov 2008 | Status: Trader | 2,141 Posts

Good morning everybody
Interesting thread, can someone please give me the "you toube link" to Akt´s videos.
I can smell quality traders from a mile...
Thanks in advance...

#126
May 12, 2016 4:36am May 12, 2016 4:36am

Akt
| Commercial User | Joined Jan 2016 | 2,682 Posts

Quoting cuchuflito

Disliked

Good morning everybody Interesting thread, can someone please give me the "you toube link" to Akts videos. I can smell quality traders from a mile... Thanks in advance...

Ignored

hello cuchuflito.
Please check your mail box

best wishes

Be careful what you think because your thoughts run your life..Solomon

#127
May 12, 2016 5:36am May 12, 2016 5:36am

Akt
| Commercial User | Joined Jan 2016 | 2,682 Posts

Hello everyone

Update on GBPNZD with some "zones for thought"

Best wishes

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Be careful what you think because your thoughts run your life..Solomon

#128
May 12, 2016 7:03am May 12, 2016 7:03am

jpch89
| Joined Apr 2014 | Status: Still far from profitable ... | 54 Posts

Hi Akt and fellow traders, I think they are not supply zones.
Because they have not accomplished at least one of the following tasks:
1. Break an ascending trendline
2. Remove opposing demand zone

I have two questions though.
1. When we are drawing zones, should we use Open/Close or High/Low (wicks are included) ?
I see sometimes you use the candle body, some times you use the candle wick.
Is there a rule for this?
2. I understand your comment on monthly. It make sense. But what do you mean by "decision matrix"?

#129
May 12, 2016 12:56pm May 12, 2016 12:56pm

Akt
| Commercial User | Joined Jan 2016 | 2,682 Posts

Quoting jpch89

Disliked

Hi Akt and fellow traders, I think they are not supply zones. Because they have not accomplished at least one of the following tasks: 1. Break an ascending trendline 2. Remove opposing demand zone I have two questions though. 1. When we are drawing zones, should we use Open/Close or High/Low (wicks are included) ? I see sometimes you use the candle body, some times you use the candle wick. Is there a rule for this? 2. I understand your comment on monthly. It make sense. But what do you mean by "decision matrix"?

Ignored

Hello jpch89

Thank you for your comments and questions. Question for you please.

If those areas are not supply zones, then what are they?

Regarding drawing zones, you are correct, there are rules for drawing zones. There are many different ways that S.A.D traders draw the zones, there are rules for each option any one trader uses to draw their zones.
Choosing the set of rules to use is a personal decision.

As per decision matrix, it is the structure all the information gleaned from the charts is put into to help decide the most appropriate action to take

Best wishes

Be careful what you think because your thoughts run your life..Solomon

#130
May 12, 2016 1:49pm May 12, 2016 1:49pm

jpch89
| Joined Apr 2014 | Status: Still far from profitable ... | 54 Posts

Hi Akt, your good question got me thinking.
The two zones on monthly can't take away opposing demand zone or remove ascending trendline, because they are too far away.
I remember some time ago Alfonso used this rule (can't recall exact words) "When an opposing zone is too far away (>3:1), then a zone is qualified as long as it made 2:1 imbalance".
Then he stopped using it because it some times cause confusion.
Although the zones are not supply zone, but they indicate imbalance in that area.
We will usually find valid supply zones if we drop down to a lower time frame, for example from Monthly to Weekly.
Hence even if they are not valid supply zones on monthly, we shouldn't buy into that area so aggressively.
I wish to hear your opinion on this issue as I still consider my self as a newbie demo trader.
Oh, by the way I must thank you for let me discover a very interesting chart website. I am using it to document my thoughts now. May be helpful for me to get things organized.

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#131
May 12, 2016 1:58pm May 12, 2016 1:58pm

Akt
| Commercial User | Joined Jan 2016 | 2,682 Posts

Hello everyone.

Let us talk about the first and most important topic in the trading TRIPOD The Mind,The Money, The Method.

Deliberately written in descending order of importance. (yes, the method is actually the least important, contrary to popular belief)

For everyone who is relatively new to this or any other methodology, please remember that no one method is the holy grail.
You can be given another trader's trade plan, complete with rules and all, yet you will not be able to trade profitably with it.

Why? because what is not given is the mindset that goes with the methodology.

Understanding the way to take trades and manage trades utilizing rather than trying to remove your emotions is a learn-able skill for a trader. A key skill.

It is incorrect to say to a trader that he/she must be able to remove emotions and trade "Like a robot" as is preached on every website and book you read.

The real truth is that you can not remove emotions, neither should you. Emotions never got a trader in trouble, not once. (a controversial statement to make, I know). The evidence is that emotions provide vital feedback to the trader, feedback which if he ignores can lead to a short trading career but if heeded can lead to a consistent and profitable sojourn in the market place.

Even the traders trading with algos, etc, whether they realize it or not, they programme their emotions into the algo and the reason why many of them too struggle is that they can go into those algos based on the emotion they are feeling at the time, and tinker with the algos.

I know this is a controversial view I am expressing so I expect people will be very vehement in their disagreement.
The neuroscience evidence is that emotions are necessary and useful. They have been given a bad name in the trading community, unjustly so.

Time to bring the emotional trader back!!

best wishes

Be careful what you think because your thoughts run your life..Solomon

#132
May 13, 2016 1:53am May 13, 2016 1:53am

Akt
| Commercial User | Joined Jan 2016 | 2,682 Posts

Quoting jpch89

Disliked

Hi Akt, your good question got me thinking. The two zones on monthly can't take away opposing demand zone or remove ascending trendline, because they are too far away. I remember some time ago Alfonso used this rule (can't recall exact words) "When an opposing zone is too far away (>3:1), then a zone is qualified as long as it made 2:1 imbalance". Then he stopped using it because it some times cause confusion. Although the zones are not supply zone, but they indicate imbalance in that area. We will usually find valid supply zones if we drop down...

Ignored

Hello jpch89.

I have to say that you are spot on with your explanation. Thank you.

Those zones whilst not supply zones by definition, represent areas of "selling" that as you said, we must not buy into.
They are areas we may consider using as targets for longs taken from below.

It is sometimes hard for new S.A.D traders to grasp this concept.

There is a difference between Buying and Demand and there is a difference between selling and supply.

We buy demand and are aware of buying areas so as not to sell into them
We sell supply and are aware of selling areas so as not to buy into them

In this case study, the lower zone is not so cool, because not only did it not take out any demand, it is not a 2:! move away.

I hope that helps

best wishes

Be careful what you think because your thoughts run your life..Solomon

#133
May 13, 2016 11:28am May 13, 2016 11:28am

jpch89
| Joined Apr 2014 | Status: Still far from profitable ... | 54 Posts

Hi Akt, thanks for the explanation, it makes sense.

Some time ago I was demo trading with Forex Tester 2, and suffered seven or eight straight loss.
I got so mad and so frustrated, then I stopped practicing and learning ever since.
But eventually I come back and try to learn again.
I think sometimes emotion will get in the way, but sometimes it will keep you moving.
Can't really say whether it's a bad thing or not.

#134
May 13, 2016 11:32pm May 13, 2016 11:32pm

Akt
| Commercial User | Joined Jan 2016 | 2,682 Posts

Quoting jpch89

Disliked

Hi Akt, thanks for the explanation, it makes sense. Some time ago I was demo trading with Forex Tester 2, and suffered seven or eight straight loss. I got so mad and so frustrated, then I stopped practicing and learning ever since. But eventually I come back and try to learn again. I think sometimes emotion will get in the way, but sometimes it will keep you moving. Can't really say whether it's a bad thing or not.

Ignored

Hello jpch89. thank you for sharing your experience, much appreciated.

If I may please,
I would like to ask if you have asked the question of yourself, "why did I get mad losing 7-8 trades in a row", "What is there to be mad about?"

Is it possible that your expectation of the methodology you were testing at the time was not met? i.e. you somehow managed to acquire the expectation that using that methodology there was no way you could go on a losing streak, let alone one that was seven to eight trades long. That is likely why you were disappointed and walked away for a time, unfulfilled expectations.
We could go on from there as to why you had the expectations you had but that is another lesson on its own

Please understand that firstly, you are not alone in this at all. You were just brave enough to speak up. So thank you for doing that.

It is part of the trader's journey as I call it. The journey can be one of self discovery if one pays attention or as is sadly the experience of a lot of our colleagues, can be one of pain and frustration. That is one of the reasons why traders lose faith in one methodology and go to another, searching outside of oneself rather than searching inside, asking the not so easy questions.

I call it Mindfulness Based Trading. Be mindful of your emotions, they are your friend, not our eneemy as you may have been led to believe. Pay attention to them and they will save you a tonne of money jpch89. Listen to them, focus on them, not on the methodology.

Remember, MIND, Money, method.

Best wishes

Be careful what you think because your thoughts run your life..Solomon