Keeping it simple

This is a discussion on Keeping it simple within the Discretionary Trading forums, part of the Methods category; Originally Posted by jfink I've been trading in my spare time for several years and so far without consistent results. ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Apr 24, 2012, 3:41pm   #11
NVP
 
NVP's Avatar
Joined Jun 2004
Re: Keeping it simple

Quote:
Originally Posted by jfink View Post
I've been trading in my spare time for several years and so far without consistent results. Over time I've tried many differnt methods from moving averages to many of the popular indicators (i.e. stochastics, RSI, momentum, etc.).

I can't help but think it really just boils to identifying support and resistence and placing your trades and stops off of these levels.

Could it really be as simple as nothing more than a chart of the price action and volume, no more no less? I think I've been making this more difficult than it needs to be.

Any thoughts?


Now your rolling fella..........


THE TRADING TRINITY

1) The market
2) The system
3) The Trader


the market is never wrong so that 1) sorted....

The system ........yep as simple as possible but you may need to add a few bells and whistles as time progresses .....you need something that works for you and you are confident with .......Trial and error and years of research and practice needed

The Trader ....this is the meat........it encompasses everything in how you manage the system and yourself........Trial and error and years of research and practice needed.....and gaining experience


2 and 3 are very interlinked (naturally) - and bringing them gradually up to high levels of performance and consistency is the true Holy grail.....

good luck
N
NVP is offline Coach/Trainer   Reply With Quote
Old May 1, 2012, 2:14am   #12
 
7 Posts
Joined Apr 2012
Re: Keeping it simple

jfink started this thread
Quote:
Originally Posted by NVP View Post
Now your rolling fella..........


THE TRADING TRINITY

1) The market
2) The system
3) The Trader


the market is never wrong so that 1) sorted....

The system ........yep as simple as possible but you may need to add a few bells and whistles as time progresses .....you need something that works for you and you are confident with .......Trial and error and years of research and practice needed

The Trader ....this is the meat........it encompasses everything in how you manage the system and yourself........Trial and error and years of research and practice needed.....and gaining experience


2 and 3 are very interlinked (naturally) - and bringing them gradually up to high levels of performance and consistency is the true Holy grail.....

good luck
N

Great points. I spent so much time in the past focused on trying to pick the right stock and less time on money/risk management. I've found recently that doing the opposite is not only profitable, but less stressful and much more enjoyable...
jfink is offline   Reply With Quote
Old May 1, 2012, 8:54am   #13
 
rathcoole_exile's Avatar
Joined Jun 2007
Re: Keeping it simple

it doesnt matter how you "calculate" it, but draw a horizontal line on your chart that is away from current price area.
It could be a Pivot point, a 00/50/25 number, yesterdays hi/lo, ANYTHING !
Then decide in advance what you'll do if price reaches your level
Decide in advance what your targets/risk parameters will be,
and voila....
__________________
my Opinion is never "humble "

karl6666: 'Why doesnt anybody like you R_E, is it because you shout?'
rathcoole_exile is offline   Reply With Quote
Thanks! The following members like this post: The Leopard , neil
Old May 1, 2012, 12:31pm   #14
Joined Feb 2012
Re: Keeping it simple

Quote:
Originally Posted by jfink View Post
I think using different timeframes is also a big help keeping things in perspective (i.e. weekly view before zeroing in on a daily chart).
I'm sure it can be, although it's not something I do. I think the value of doing so depends to a large extent upon your trade management approach.
The Leopard is offline   Reply With Quote
Old May 2, 2012, 4:40am   #15
 
1 Posts
Joined May 2012
Re: Keeping it simple

In my experience risk management is more important than picking trades, early on I would have stretches of profitable trades and wipe all my gains with one bad trade, now I can have a stretch of poor trades and wipe out my losses with one good one.

I also picked a few trade setups that I like and stick with those.

I get to know a handful of stocks and how they trade and continually trade in and out of the same
ones until their behavior changes. I did this for months recently with KOG and WFC for example.
pisces4200 is offline   Reply With Quote
Old May 2, 2012, 7:06am   #16
 
rathcoole_exile's Avatar
Joined Jun 2007
Re: Keeping it simple

the Thai stock market (SET 50 Futures) rose abruptly on today's Open, then crashed mid-morning back to the opening level.
I just showed the chart to my 3 year old daughter and asked her if it will go up or down.
She said down, so that's good enough for me to take a Short...I'll report later :-)
__________________
my Opinion is never "humble "

karl6666: 'Why doesnt anybody like you R_E, is it because you shout?'
rathcoole_exile is offline   Reply With Quote
Old Jul 12, 2012, 10:51pm   #17
 
cristiano's Avatar
Joined May 2010
Re: Keeping it simple

Quote:
Originally Posted by rathcoole_exile View Post
the Thai stock market (SET 50 Futures) rose abruptly on today's Open, then crashed mid-morning back to the opening level.
I just showed the chart to my 3 year old daughter and asked her if it will go up or down.
She said down, so that's good enough for me to take a Short...I'll report later :-)
How did she do calling the direction?
I have a 1 year old but it's a struggle making sense of whether she's saying up or down for now.
cristiano is offline   Reply With Quote
Old Jul 23, 2012, 6:31pm   #18
hgh
Joined Jul 2012
Re: Keeping it simple

risk management is more important than picking trades,when the storm comes, early on I would have stretches of profitable trades and wipe all my gains with one bad trade.
hgh is offline   Reply With Quote
Old Jul 28, 2012, 1:21pm   #19
Joined Apr 2009
Re: Keeping it simple

Quote:
Originally Posted by jfink View Post
I've been trading in my spare time for several years and so far without consistent results. Over time I've tried many differnt methods from moving averages to many of the popular indicators (i.e. stochastics, RSI, momentum, etc.).

I can't help but think it really just boils to identifying support and resistence and placing your trades and stops off of these levels.

Could it really be as simple as nothing more than a chart of the price action and volume, no more no less? I think I've been making this more difficult than it needs to be.

Any thoughts?
Hi. Jfink. I have spent 5 years working at a prop trading firm and can categorically tell you that none of our trades are based on systems that incorporate conventional technical indicators. S/R is all that needed to be able trade and beat the markets consistently. It is not simple though.
The following difficulties are forever present; Firstly, not all S/R levels are created equally. The key to drawing effective S/R levels is in being able identify price levels that have the most psychological impact on market participants.
Being able to identify where a large number of market participants who are long/short will want to take profits, losses or close at break even, being able to identify where a large number or market participants who are not currently in the market are likely to want to get into the market and being able to identify where market participants who are already long/short would likely add to positions are a few of the aspects that critical in calculating the S/R levels that are actually worth trading off. Having a good understanding of where the most stop and limit orders are is also critical to trading S/R effectively.
The following points are all learnable through experience but are not really something that can be incorporated into a rigid system because they are forever changing with the flow of the market.
Furthermore, once you understand how to identify the S/R levels that are worth trading off you still need to overcome the common pitfalls of losing traders; poor money management, a lack of confidence, too much confidence, not trading off a plan, not keeping records, not having patience, having unrealistic expectations of how much money you could make, having a false belief that you can predict market direction, constantly changing your approach because you do not understand the expectancy of an edge. Etc. these are just some of the many things that mean no trading methodology is ever simple or easy. I trade exclusively from S/R levels and have a video blog that I make every day that highlights my trading plans for the day and the levels that I consider important.. It is completely free and invite you to send me a private message if you would like a link to it. Best of luck with your trading.
sweatyslouch is offline   Reply With Quote
Thanks! The following members like this post: rathcoole_exile
Old Jul 28, 2012, 1:30pm   #20
Joined Jul 2012
Re: Keeping it simple

Quote:
Originally Posted by hgh View Post
risk management is more important than picking trades,when the storm comes, early on I would have stretches of profitable trades and wipe all my gains with one bad trade.
Both are important. In trading, every small little things that are part of a bigger profit making plan are important. They all work together.
PATrader is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
keeping it simple williamtell First Steps 3 May 30, 2009 4:49pm
Keeping it simple Kevin21 Indices 8 Jun 18, 2008 1:27pm
Keeping them honest chump Techies Corner 6 Jan 21, 2005 1:07pm
Simple way of keeping on the right side using Tick stoploss please Indices 3 Sep 11, 2004 10:44am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)