Keeping it simple

Enzzo · Apr 17, 2012, 7:41am

I also think S/R's are very valuable in these markets...
Most people over look it but the most important thing is to get a good understanding of how price moves into these areas, and how it is likely to react of them

jfink · Apr 23, 2012, 8:50pm

Quote:

Originally Posted by Lord Flasheart

Absolutely. I spent years looking for the holy grail by way of indicators etc.I use SR area and trendlines. The only hard part is the money management and discipline.Welcome to the site

Thanks for the welcome. I agree the hard part is money management, but I think it is as important if not more than picking the right investment. I've found that I can have more losing trades (not that this is my objective) and still come out profitable.

jfink · Apr 23, 2012, 8:55pm

Quote:

Originally Posted by The Leopard

I think simple but not too simple.

I too started out with a few indicators, looking for price to cross the "overbought line" etc. This ballooned to a ton of indicators.

Then I started looking at price action (the conventional type that you see discussed on forums). So, certain bars and bar formations at certain areas etc. This was OK as far as it went.

Since then I suppose I've evolved. In my opinion (just my opinion) that is not enough. It's OK as a foundation to get you to start thinking about the market in the right way, but I don't think it will get you terribly far (I could be wrong, of course).

Now I guess I'd say that I've spent a long time in front of the charts and have just (slowly and painfully) developed my own way of reading them, and making decisions based on that. I think considering the overall context is very important, something I used to overlook when using "forum" price action. It's still just price action really, but it involves a bit more thought and rather less reliance on some of the more obvious things you see spoken about.

So I think a simple and uncluttered approach is best, but be wary of trying to make it too simple.

Indicators I view as useless. I do keep the ladder open on my platform, but I don't actually use it to make any decisions. I find it a distraction more than anything, although I'd love that not to be the case.

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).

NVP · Apr 24, 2012, 9:41am

Quote:

Originally Posted by jfink

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

jfink · Apr 30, 2012, 8:14pm

Quote:

Originally Posted by NVP

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...

rathcoole_exile · May 1, 2012, 2:54am

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....

The Leopard · May 1, 2012, 6:31am

Quote:

Originally Posted by jfink

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.

pisces4200 · May 1, 2012, 10:40pm

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.

Apr 17, 2012, 7:41am	#9
Enzzo Senior Member Member Since Apr 2012 146 Posts	Re: Keeping it simple I also think S/R's are very valuable in these markets... Most people over look it but the most important thing is to get a good understanding of how price moves into these areas, and how it is likely to react of them

May 1, 2012, 2:54am	#14
rathcoole_exile Legendary Member Member Since Jun 2007 3,842 Posts	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?'

May 1, 2012, 10:40pm	#16
pisces4200 New Member Member Since May 2012 1 Posts	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.

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