Ideas for increasing trader performance

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Old Apr 5, 2010, 8:30pm   #162
Joined Dec 2005
Re: Ideas for increasing trader performance

[U]What do I do now?

Right now, I :

- Identify a level and put a limit in at it if I like the way price is approaching it. My stop goes below the last thrust candle to close above the level (if I am going long). If I am going short, it goes above the last thrust candle to close below the level I am playing.


Tom,
Is there any chance you could kindly put up a chart or two, to demonstrate this on a chart?

Many thanks

Glynn
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Old Apr 5, 2010, 9:00pm   #163
 
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Re: Ideas for increasing trader performance

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Quote:
Originally Posted by packhorse View Post
[U]What do I do now?

Right now, I :

- Identify a level and put a limit in at it if I like the way price is approaching it. My stop goes below the last thrust candle to close above the level (if I am going long). If I am going short, it goes above the last thrust candle to close below the level I am playing.


Tom,
Is there any chance you could kindly put up a chart or two, to demonstrate this on a chart?

Many thanks

Glynn
Sure Glynn but give me half an hour. My friend has just cooked me the most amazing dinner
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Old Apr 5, 2010, 9:02pm   #164
Joined Dec 2005
Re: Ideas for increasing trader performance

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Originally Posted by trader_dante View Post
Sure Glynn but give me half an hour. My friend has just cooked me the most amazing dinner
Thanks Tom. Enjoy your meal.
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Old Apr 5, 2010, 10:04pm   #165
 
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Re: Ideas for increasing trader performance

trader_dante started this thread
Quote:
Originally Posted by packhorse View Post
[U]What do I do now?

Right now, I :

- Identify a level and put a limit in at it if I like the way price is approaching it. My stop goes below the last thrust candle to close above the level (if I am going long). If I am going short, it goes above the last thrust candle to close below the level I am playing.


Tom,
Is there any chance you could kindly put up a chart or two, to demonstrate this on a chart?

Many thanks

Glynn
Hi Glynn,

Before I post a few examples, I want to say a few things:

Firstly, not every single trade I do is based on placing limit orders at levels.

The majority of my trades are but sometimes I enter "at market" when I am convinced that it is the right time to act.

At such times, price may already be moving away from a level and I will be paying a premium to get in. If I think the move will continue, I do not have a problem doing this.

Secondly, of equal importance to the level is also what price is doing before it reaches the level e.g. How it has been moving.

Thirdly, a very important part is whether I can "see" the move playing out. I have tried to explain this to people and usually struggle because it is a really difficult concept to explain. What I mean is, for a swing trade to make money, one has to see a sizable move. Remember, I am not playing for 20 - 30 pips. With that in mind, the moves I take on the H1 are going to translate through onto the daily TF. E.g. If I play a short on the H1 TF, I have to be able to go onto the daily TF and say "can I see the market falling to my target when I only look on this TF".

Finally, I talk to other traders and also people from T2W throughout the day. For the most part, if the people I talk to agree on a trade, I usually pass on it. That is because I have witnessed the market blindside people many times at the most obvious levels. I am usually only comfortable taking the trades that the people I talk too are not comfortable taking. This might come out in some of the examples I give.

Here is an example of a trade that looked "perfect" but which I did not take at the level.

There was a fantastic potential s/r pivot with 38 fib confluence on the EUR/JPY. (chart 1) The problem was the level was too "perfect". Not only was everyone all over it in terms of day to day chitter chatter but the market just didn't look set to reverse at this point. That is to say, I simply could not see the market rolling over at this spot on the daily TF. Sorry if this doesn't make sense, like I said, I really don't know how to explain this.

OK, sorry for the long post. Let me give you some examples of trades with the stops which is what you asked for! I'll do that in the next post.
Attached Thumbnails
eurj.gif  
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Last edited by trader_dante; Apr 5, 2010 at 10:11pm.
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Old Apr 5, 2010, 10:11pm   #166
Joined Dec 2005
Re: Ideas for increasing trader performance

Quote:
Originally Posted by trader_dante View Post
Hi Glynn,

Before I post a few examples, I want to say a few things:

Firstly, not every single trade I do is based on placing limit orders at levels.

The majority of my trades are but sometimes I enter "at market" when I am convinced that it is the right time to act.

At such times, price may already be moving away from a level and I will be paying a premium to get in. If I think the move will continue, I do not have a problem doing this.

Secondly, of equal importance to the level is also what price is doing before it reaches the level e.g. How it has been moving.

Thirdly, a very important part is whether I can "see" the move playing out. I have tried to explain this to people and usually struggle because it is a really difficult concept to explain. What I mean is, for a swing trade to make money, one has to see a sizable move. Remember, I am not playing for 20 - 30 pips. With that in mind, the moves I take on the H1 are going to translate through onto the daily TF. E.g. If I play a short on the H1 TF, I have to be able to go onto the daily TF and say "can I see the market falling to my target when I only look on this TF".

Finally, I talk to other traders and also people from T2W throughout the day. For the most part, if the people I talk to agree on a trade, I usually pass on it. That is because I have witnessed the market blindside people many times at the most obvious levels. I am usually only comfortable taking the trades that the people I talk too are not comfortable taking. This might come out in some of the examples I give.

Here is an example of a trade that looked "perfect" but which I did not take at the level.

There was a fantastic potential s/r pivot with 38 fib confluence on the EUR/JPY. The problem was the level was too "perfect". Not only was everyone all over it in terms of day to day chitter chatter but the market just didn't look set to reverse at this point. That is to say, I simply could not see the market rolling over at this spot on the daily TF. Sorry if this doesn't make sense, like I said, I really don't know how to explain this.

OK, sorry for the long post. Let me give you some examples of trades with the stops which is what you asked for! I'll do that in the next post.
Guess who was one of the ones who took that trade?......................Yes, me.
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Old Apr 5, 2010, 10:19pm   #167
 
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Re: Ideas for increasing trader performance

trader_dante started this thread
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Guess who was one of the ones who took that trade?......................Yes, me.
If it makes you feel any better you are not the only one, mate.
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Old Apr 5, 2010, 10:39pm   #168
 
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Re: Ideas for increasing trader performance

trader_dante started this thread
Quote:
Originally Posted by packhorse View Post
[U]What do I do now?

Right now, I :

- Identify a level and put a limit in at it if I like the way price is approaching it. My stop goes below the last thrust candle to close above the level (if I am going long). If I am going short, it goes above the last thrust candle to close below the level I am playing.


Tom,
Is there any chance you could kindly put up a chart or two, to demonstrate this on a chart?

Many thanks

Glynn
Ok here is an example from the Eur/Gbp. Chart 1 shows a significant level on the daily TF. Chart 2 shows how I scroll back to the left on the H1 to find the last time price punched through this level. My stop usually goes below these candles. So my entry goes at the red line, my stop would be at the yellow line.
Attached Thumbnails
eu1.gif   eu2.gif  
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Increasing trader performance: http://www.trade2win.com/boards/firs...rformance.html

Advice for getting a job in trading: http://www.trade2win.com/boards/gene...b-trading.html
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