8 methods to consistent profitability

[nunrgguy]

There is one MA that is of use and that is to measure price movement over a period not based on a random close. It does not lag.

More lulz

My straight line kung fu beats your diagonal line kung fu

 

[ffsear]

Can we ban the word "lulz" ? it really makes me cringe

 

[the hare]

Can we ban the word "lulz" ? it really makes me cringe

Sadly, i suspect that banning the word won't stop it happening.

 

[15 min tlb]

There is one MA that is of use and that is to measure price movement over a period not based on a random close. It does not lag.

More lulz

My straight line kung fu beats your diagonal line kung fu

Your straight line is better , just jump in .....I do that as well ......sometimes the empoeroer has no clothes left , I can see your image/picture

 

[Predicabo]

This apparent obsession so many members seem to have with form over content is probably a good indication of why so few do well at trading. Time for me to put this particular thread to bed, for my purposes anyway. My opening shot in this thread was by way of an antidote to the uniformed twaddle in post #1. As a throwaway comment aimed at new traders who presumably would be the prime audience of a thread under ‘First Steps’ I suggested a simple moving average cross strat for them to try as a simple device for them to use to get to know price. Not sure if any new traders tried it, but lots of apparently seasoned posters if not traders waded in to completely ignore what I said and beat on about their own biases and preconceptions of what they thought I said which about as far out of whack with what I actually said as could be imagined. Might as well have been a totally different topic. I then added what the purpose of the smallest moving average was and that it was to provide utility in developing appropriate period lengths for the medium and longer term moving averages and was itself purely a proxy for price, which itself could be used once that realisation had occurred. I then reiterated my original instruction to only trade the first cross.

What they end up with if they follow this is price crossing a long period moving average where there is a higher probability of it being a solid move than with a shorter moving average. Rule #1 get in when it’s demonstrably on your side. By taking only the first cross with no re-entries they stay out of any given pair for a lot longer than they can trade it. Even if they choose to trade all the majors, they aren’t going to be in a position to over trade. Rule #2 don’t over trade. They then use a medium period moving average to exit their position. Which means they get out on a reasonable decrease in momentum or small reversal. By using the medium moving average for exit they learn to stay in their trades and not grab at penny profits. Rule #3 stay in until it’s time to get out, not simply when you get to breakeven.

Final point, I don’t trade the technicals or even use charts. I was simply attempting to address what I felt was disingenuous information in the first post which could actively hurt new traders. I provided what I felt would assist them in learning about price action, patience and getting an edge. The endless debate that followed what I said, about what I said and isn’t in any way related to what I said is a total waste of everyone’s time.

 

[wackypete2]

Not sure if any new traders tried it, but lots of apparently seasoned posters if not traders waded in to completely ignore what I said and beat on about their own biases and preconceptions of what they thought I said which about as far out of whack with what I actually said as could be imagined

Your problem is your p1ss poor people skills. Learn to contribute without talking down to everyone and maybe someone will listen to you.

Peter

 

[Predicabo]

Your problem is your p1ss poor people skills. Learn to contribute without talking down to everyone and maybe someone will listen to you.

Peter

It seems there are some that are listening and these are the ones that I'm here for, not the ones getting heated about my form rather than my content. I'm not here to demonstrate people skills, nor am I the one with the problem. Thanks for the laugh though in quite spectacularly not taking your own advice about talking down to people and if I think I need to learn anything about people skills, I'll ask someone who exhibits at least a basic capability in that area.

 

[jungles]

another sociopath joins T2W.........welcome!

It seems there are some that are listening and these are the ones that I'm here for,

 

[ZaBu]

Traders don't fail because they can't find methods, systems, setups, book recommendations, internet forum advice or thyroid yoga bookmarks

As far as I can make out most traders fail for pretty basic reasons and these reasons don't necessarily have anything to do with trading.

Ask a random group of people to explain probability and compounding (as I'm talking probability here best if we make it a very large group ). I doubt many people would be able to make a decent job of it. That already presents the average person with a trading challenge before they start. Of course many will be unaware of this gap in their knowledge. In the words of Rumsfeld, these are the unknown unknowns - things people don't know they don't know.

Like every other career there are several core competencies required to be successful, or in this case consistently profitable over time. I expect all good traders demonstrate similar behaviours in the critical areas.

If every new trader understood probability, compounding, position sizing/money management and that a 50% loss requires a 100% profit to get back to where they started I suspect more people would find they could trade for long enough to figure out what works for them. Despite all the content and advice out there I don't think I have ever seen this laid out clearly to newcomers.

 

[15 min tlb]

Traders don't fail because they can't find methods, systems, setups, book recommendations, internet forum advice or thyroid yoga bookmarks

As far as I can make out most traders fail for pretty basic reasons and these reasons don't necessarily have anything to do with trading.

Ask a random group of people to explain probability and compounding (as I'm talking probability here best if we make it a very large group ). I doubt many people would be able to make a decent job of it. That already presents the average person with a trading challenge before they start. Of course many will be unaware of this gap in their knowledge. In the words of Rumsfeld, these are the unknown unknowns - things people don't know they don't know.

Like every other career there are several core competencies required to be successful, or in this case consistently profitable over time. I expect all good traders demonstrate similar behaviours in the critical areas.

If every new trader understood probability, compounding, position sizing/money management and that a 50% loss requires a 100% profit to get back to where they started I suspect more people would find they could trade for long enough to figure out what works for them. Despite all the content and advice out there I don't think I have ever seen this laid out clearly to newcomers.

I agree with you .

What is being laid out to new traders and constantly offered to traders is

1)signal services signal services sellers on internet marketing sites
2)thousands of indicators ........there are mt4 forums just making new indicators everyday on mt4
3)failures trading systems ......there are forums like forex factory with thousands of trading systems
4)price action educations ....there are internet marketeers and educators and snake oil educators offering this venom wisdom
5) thousands of eas being produced and offered to blow accounts , on various mt4 forums and internet sites.
6)New software is being constantly developed and offered for trading

George Sorros , currency trader blew up the Bank of England , he did not use any indicators , systems , signals , price action , software and eas .George Sorros does not hang around forums or write books on how to trade.

That is the fallacy traders live in.The world of professionals like Sorros is totally different from the world of retail punters.

 

[tar]

George Sorros , currency trader blew up the Bank of England , he did not use any indicators , systems , signals , price action , software and eas .George Sorros does not hang around forums or write books on how to trade.
.

Thats a myth , it is not possible for him to blow up a central bank like BOE , he just shorted $ 10 Billion in pounds which earned him $ 1.1 Billion that's it .

"On September 16, 1992, Black Wednesday, Soros' fund sold short more than $10 billion in pounds,[22] profiting from the UK government's reluctance to either raise its interest rates to levels comparable to those of other European Exchange Rate Mechanism countries or to float its currency.
Finally, the UK withdrew from the European Exchange Rate Mechanism, devaluing the pound, earning Soros an estimated $1.1 billion. He was dubbed "the man who broke the Bank of England".[27] In 1997, the UK Treasury estimated the cost of Black Wednesday at £3.4 billion.
On Monday, October 26, 1992, The Times quoted Soros as saying: "Our total position by Black Wednesday had to be worth almost $10 billion. We planned to sell more than that. In fact, when Norman Lamont said just before the devaluation that he would borrow nearly $15 billion to defend sterling, we were amused because that was about how much we wanted to sell."
Stanley Druckenmiller, who traded under Soros, originally saw the weakness in the pound. "Soros' contribution was pushing him to take a gigantic position."[28][29]"

 

[ffsear]

That is the fallacy traders live in.The world of professionals like Sorros is totally different from the world of retail punters.

Not really, we all play on the same field. Don't by into the myth that what happens on city trading floors it incredibly complicated, its not! ]

Have you ever worked on a trading floor?

 

[15 min tlb]

Thats a myth , it is not possible for him to blow up a central bank like BOE , he just shorted $ 10 Billion in pounds which earned him $ 1.1 Billion that's it .

."[28][29]"

Figure of speech , he hurt the bank of England .The important point is he used support and resistance levels on erm , trend and fundamental information .He did not use the garbage offered to traders.

 

[BeginnerJoe]

Not really, we all play on the same field.

I think 15 min agrees. When you lose, it's because of your psychology and not because you got played like a fiddle. The fiddle players, if they exist, would obviously need to have their own field separate from everyone else's.

 

[tar]

Not really, we all play on the same field. Don't by into the myth that what happens on city trading floors it incredibly complicated, its not! ]

Have you ever worked on a trading floor?

But they have different tools and they are more informed in general and they trade different markets , most of them lose yes but their success rate should be higher than MT4 traders don't you think ?

 

[15 min tlb]

Not really, we all play on the same field. Don't by into the myth that what happens on city trading floors it incredibly complicated, its not! ]

Have you ever worked on a trading floor?

Some of us are on the same playing field , due to our knowledge and wisdom , which is the point of the first post education.

 

[15 min tlb]

I think 15 min agrees. When you lose, it's because of your psychology and not because you got played like a fiddle. The fiddle players, if they exist, would obviously need to have their own field separate from everyone else's.

If you use this method , you will catch all the major currency moves ,plus a few fakeys.

With this method traders would pick up the trades of people like sorros.

2 Charts 3 Indicators

 

[tar]

Not really, we all play on the same field. Don't by into the myth that what happens on city trading floors it incredibly complicated, its not! ]

Have you ever worked on a trading floor?

Is it wise to publish your full name with your account # in your blog ?

 

[ffsear]

which post?

 

[ffsear]

Is it wise to publish your full name with your account # in your blog ?

removed, thanks