Best Thread ASK ME ANYTHING: Hoping to Help!

[tobecont]

Hi All,

Forgive my self indulgence...

I have recently decided I would like to spend more time writing. Having committed my life to trading markets, there's little else that I can write about that will be of any use to anyone.

If there's one thing I hope I can offer interesting and perhaps even helpful insight in to then it is the world of trading. I am listed as a money manager (trader) on several of the world's financial regulators' registrars. I have worked as both a market maker and a proprietary trader in some of the world's biggest banks and money managers as well as having traded my own capital. I don't mention this to boast, just to differentiate myself from 99% of the spivs offering trading advice online these days.

After being in something for so long it's sometimes difficult to see it through the eyes of someone at the beginning of their journey and so rather than arrogantly write about what I think is important, I'd appreciate some questions from the forum for which I hope my answers can provide some help along your way.

I won't be charging anyone for anything. As above, this is purely an indulgence for me.

Please tell me, how can I help?

 

[Oscar Reed]

How do you know that you are in the 1% and not the 99%?

Cheers
Oscar

 

[tobecont]

Hi Oscar,

bit new to the old forum thing.

re your question: tough one. I don't want your money so at least there's no conflict of interest there. otherwise you can ask me something that the 99% wouldn't be able to answer? or just ask me anything and see what you make of my response. or just move on with the view that I am a spiv and you don't need to waste your time. I'm easy!

 

[tobecont]

Ayup tobecont. Ah 'ood li' ta kna wha' theur think t' best type o' orda ther's ta use when tradin t' market.
Teur muchly.

You sound like my old man. Not another Stanley fan I hope.

Use limit or stop orders. Why? Because that requires some forethought. If you're trading on market orders you're much more likely to invite emotion in to the process.

I don't think ill write anything further on this for now eh Ronnie. Maybe if someone else asks.

 

[timsk]

. . .I don't think ill write anything further on this for now eh Ronnie. Maybe if someone else asks.

Hi tobecont,
Welcome to T2W.

In lieu of any other (or better) questions, feel free to expand on how to use limit orders to enter the market. I use stop orders as I want to see some evidence that the market is moving in the 'right' direction before I get in. I appreciate one can do this using limit orders, but the risk one faces is not getting filled. Needless to say, the unfilled limit orders are often the most profitable - or would have been the most profitable - had they been filled. Therefore, for me, using limit orders is too risky, as the price advantage they offer in terms of no slippage etc. is more than offset by the lost opportunity on profitable trades that weren't filled.
Tim.

 

[tobecont]

Ah li' gi'o'a orders 'n limit orders . Orl roeight 'eres eur mooar challengin question. Theur see t' brass that's int' economy, t' brass 'a' thy middlin' everyday apeth uses ta buy bread 'n cheese wi'. Wheear does it orl belong? fert life o' uz ah can't fettle it art 'n its not for lack o' tryin ah tell theur. Nowt rong wi' Stanley by t' way.
Teur muchly.

https://en.m.wikipedia.org/wiki/Fiat_money

 

[Mr. Charts]

Hi tobecont,
Welcome to T2W.

In lieu of any other (or better) questions, feel free to expand on how to use limit orders to enter the market. I use stop orders as I want to see some evidence that the market is moving in the 'right' direction before I get in. I appreciate one can do this using limit orders, but the risk one faces is not getting filled. Needless to say, the unfilled limit orders are often the most profitable - or would have been the most profitable - had they been filled. Therefore, for me, using limit orders is too risky, as the price advantage they offer in terms of no slippage etc. is more than offset by the lost opportunity on profitable trades that weren't filled.
Tim.

......especially on price moving on momentum.

 

[Mr. Charts]

Even having lived in Newcastle for nine years I find Return from the Pond's posts unintelligible and certainly don't have the time to try to understand anyway.

I tried google translate but that failed too

 

[tobecont]

now that joker has left let's talk orders:

There's a reason that global exchanges have converged on a relatively small number of order types. They all have their uses.

Perhaps a better way for me to explain why I initially suggested stop and limit orders is to think about the thought process ahead of trade entry right up until the trade is live. For traders that have a target price in mind at which they believe there is likely to be a reversal, it's clear that a limit order is appropriate. For traders that believe once a certain price level is reached, price is likely to extend in that direction, a stop order is appropriate. Having these defined entry levels allows you to specify your risk ahead of the trade and size the trade accordingly. There is of course the risk that the price never reaches your target level and as Tim said, that failure to retrace to your level often precedes an extended move in the direction you were looking to trade. That is always going to be the case with any type of trading. You will miss trades. That is fine.

What one can do to help reduce the number of good trades missed is apply another set of rules that state if a given set of criteria is met, regardless of absolute price levels (i.e. bearish engulfing candle on x tf) then execute a market order. So an example of the logic written in to the trading plan or considered before each trading session:

a) Am I bullish this instrument? yes
b) What level do I target for purchases? 100
c) What else would convince me to buy? Break above 105 or 25sma>50sma.

So in the above example, I can use a limit order at 100, a stop order at 105 (Mr Chart, you mention momentum issues: The limit order will see positive slippage if anything and a stop order essentially becomes a market order at execution (depending on the trading venue) so will be no more punitive than market order in that sense) or I can monitor live/algorithmically the moving averages and enter a market order when 25>50.

The key to all of the scenarios here is that they are clearly defined AHEAD of trading. For novice traders in particular I believe it is critical to take the analysis out in front of the trade and have a very specific framework in place for trade entry. The risk when using market orders is that one reacts to market noise and makes decisions on the fly that are not defined within our trading plan.

Does that resonate with you guys? I hope I am being clear.

 

[tomorton]

Even having lived in Newcastle for nine years I find Return from the Pond's posts unintelligible and certainly don't have the time to try to understand anyway.

I tried google translate but that failed too

Well that game didn't last long did it?

 

[darktone]

Favorite Trading Tip:-
Dooant lose brass theur gormless shi'..

 

[darktone]

Hi All,

Forgive my self indulgence...

I have recently decided I would like to spend more time writing. Having committed my life to trading markets, there's little else that I can write about that will be of any use to anyone.

If there's one thing I hope I can offer interesting and perhaps even helpful insight in to then it is the world of trading. I am listed as a money manager (trader) on several of the world's financial regulators' registrars. I have worked as both a market maker and a proprietary trader in some of the world's biggest banks and money managers as well as having traded my own capital. I don't mention this to boast, just to differentiate myself from 99% of the spivs offering trading advice online these days.

After being in something for so long it's sometimes difficult to see it through the eyes of someone at the beginning of their journey and so rather than arrogantly write about what I think is important, I'd appreciate some questions from the forum for which I hope my answers can provide some help along your way.

I won't be charging anyone for anything. As above, this is purely an indulgence for me.

Please tell me, how can I help?

Hello, thanks for passing by and starting this thread.

Is appropriately sized scaling in / out a viable strategy for the retail account?
From the areas of experience youve listed above id like to hear your professional view on the subject. Here in the retail environment it gets lumped into the 'averaging in / adding to losers' box and for the most part gets cast aside as an option.

Most discussion on this forum concerns the 'confirmed' rather than the 'discovery' side of price action. Be nice to hear your views on the various approaches.

 

[piphoe]

great idea for a thread tobecont.

my Q: under what conditions would you double down on a trade?

 

[itspossible]

great idea for a thread tobecont.

my Q: under what conditions would you double down on a trade?

never-your entry is wrong to start with:innocent:
im always careful on the old pork belly entry-i once doubled down and 2 hogs were delivered to my door.

 

[piphoe]

never-your entry is wrong to start with:innocent:
im always careful on the old pork belly entry-i once doubled down and 2 hogs were delivered to my door.

you are saying take the stop and buy again lower (assuming the bullish position)?

entry's are always wrong, who can precision-laser buying to the tick?? if anyone could they wouln't need a stop which means i will be wrong this amount.

 

[Dinos]

Your views on stop losses, hard exit and take it on the chin (V) no stop loss in the belief you are correct in your analysis and average up or down depending on your position.

 

[tomorton]

entry's are always wrong, who can precision-laser buying to the tick??

Brilliant insight, more than balances the fatal concentration on entry signals, levels and patterns.

 

[Mr. Charts]

The more experienced and better you are
and the more you choose clearly moving stocks
and the more you use price action rather than "I will buy/short at a certain level"
and the more you minimise TA indicators like moving average cross overs,
the more accurate you get till you reach a state where you can SOMETIMES be spot on to the cent for your entries - and SOMETIMES your exits.
All in my humble opinion and experience.

 

[Signalcalc]

What has made you a successful trader (assuming that you are successful)?

What is your trading style (scalper, position, swing)?

What analysis are your strategies based on (fundamentals, technical, chart patterns, price action)?

Are you a manual trader, an algo trader, a quant trader, discretionary, system, maybe a combination of some of these?

Do you trade on instinct or a strict set of rules or a combination?

What are your favourite or most reliable sources of information?

What are your worst or most laughable sources of information?

How long did it take you to find the path to being profitable, did you learn some (hard) lessons along the way and what were those lessons?

How many strategies did you try before settling on something that provided consistent profits?

Do you trade Forex, Stocks, Indices, ETF/ETN's or a combination?

Do you diversify or do you stick to favourite instruments?

Do you trade proprietary strategies or strategies that are in the public domain?

Do you think the markets have changed during your trading career and in what way, how long is your trading career?

Have you adapted your trading style to changing market conditions, have you recognised if/when markets change?

Do you trade all market conditions, in what conditions do you make the most losses?

What is your equity curve like and what are your max drawdowns, what has been your longest losing streak and did you change anything during those periods or just stick with what you were doing?

A bit of a list, but thanks :clap: :clap:

 

[itspossible]

you are saying take the stop and buy again lower (assuming the bullish position)?

entry's are always wrong, who can precision-laser buying to the tick?? if anyone could they wouln't need a stop which means i will be wrong this amount.

yes take the stop.without stops-you are then out of control-at least with stops you are forced out of wrong trades.
i agree you cant time perfect and you leave a little wiggle room hence the stop.