Finally giving it (another) go

[darktone]

It's possible that my stops are too tight, but to be honest I wouldn't consider trading without a stop. I saw the Dow move up 60 points and then down 100 points within a minute on Wednesday night!

Thats how around 95% think, no offense.

 

[darktone]

how you can be right, yet wrong.

 

[Edinburgh Trader]

Darktone,
Essentially that's what I am trying to do.
Look at the larger time frame for the trend, then look for a entries on the smaller time from, in the direction of the larger trend.

Does a stop not simply say "I will admit to being wrong at this level?"

BTW Thanks for getting involved.............all very useful to me

 

[darktone]

or wrong yet right.

 

[darktone]

Darktone,
Essentially that's what I am trying to do.
Look at the larger time frame for the trend, then look for a entries on the smaller time from, in the direction of the larger trend.

Does a stop not simply say "I will admit to being wrong at this level?"

BTW Thanks for getting involved.............all very useful to me

A stop can be anything you want it to be. For most people its a way to manage psychological pain, and or a way to fit the their idea of risk / reward to the market.

 

[Edinburgh Trader]

If my hourly chart is in an up trend, I'd switch to the 5 minute and place a stop at where I think the latest higher low is.

 

[Edinburgh Trader]

Stop move down to 65 on the Euro, locking in a 1:1 profit.

 

[darktone]

An example of some of my beta efforts. Wrong yet profitable.
Its entirely possible trade this way although most would here would disagree.

Imho, its a much better way to manage risk (size), regardless of your objectives.

 

[Edinburgh Trader]

An example of some of my beta efforts. Wrong yet profitable.
Its entirely possible trade this way although most would here would disagree.

Imho, its a much better way to manage risk (size), regardless of your objectives.

Maybe I'm thick, but I'm not sure I get the 'wrong yet profitable' comment.

Also, you were selling a rising market?

 

[darktone]

Maybe I'm thick, but I'm not sure I get the 'wrong yet profitable' comment.

Also, you were selling a rising market?

Wrong as in the market was going up when my bias was short (it changed on the 1/09)
Yes, I was selling a rising daily market at a time when my monthly bias was short.

 

[Edinburgh Trader]

So, you determine trend on the daily, and trade that on the hourly with no stops?

How much of a loss are you prepared to take? The reason I ask is that I assume you wouldn't be prepared to take an infinite loss. Surely there is a point at which you cut losses?

 

[darktone]

So, you determine trend on the daily, and trade that on the hourly with no stops?

How much of a loss are you prepared to take? The reason I ask is that I assume you wouldn't be prepared to take an infinite loss. Surely there is a point at which you cut losses?

Im rejigging what I do atm. Its basically shaped around the monthly for direction. Am working on the execution side atm, its not to important imo, main thing is to be aiming to operate at prices above and below the average, ie in your favor.

Ive no set £ % amount for loss. More important to me is management of size.
A taking loss example might look like this:-

Objective: to position long 10 units
Bias:- Monthly up
Current daily direction:- Down

Long
88 close 45 for -43
75 close 45 for -30
62 close 45 for -17
70
72
55
48
45
25
23 size acquired
20
10
9

Youd aim to book losses at a place in your favor, ie on some sort of retracement.
Rinse and repeat.

 

[Edinburgh Trader]

Would be now looking for selling opportunities on £/$

 

[Edinburgh Trader]

Well.......my first few days in the markets have been hectic. Lots to think about over the weekend.
My first thoughts are that trading off a 5 minute chart is very hectic, and I'm not sure enjoyed it. I found myself in a couple trades I couldn't have taken, and missed lots of trades where I got valid signals. To be honest it's been pretty stressful.
I've also struggled to manage my trades. Finding the entry is only part of the battle.
I also find myself being emotionally attached to my trades, hoping they will go my way.
I feel drained and slightly stressed. Tougher than I thought. My instinct has been to trade again immediately after a losing trade, to get my money back.
Hopefully over the next few weeks I can get better at managing these things.

Roll on next week!

 

[Sonicscooter]

Welcome to our weird world matey, i give myself a blast of music at some point during the day, good for the soul, this job is like base jumping with your hair on fire...


Ah Happy Days...................

 

[darktone]

To be honest it's been pretty stressful.

Its all in your head mate, its only stressful because you make it so.
Think it was Buk who had this in his sig waaaay back.
"Ive seen the enemy, it is me!" too true

If you click TiTZ in my sig youl find a free copy of trading in the zone. It can help.
Happy weekend

 

[dr.blix]

What is your actual trading method?

What indicator correlations give you a buy/sell signal to get in and then out?

You mentioned you're only looking for a specific R/R, I think the problem with focusing on just this factor is that it could be skewing your decision making process and putting you into a 'wish thinking' mindset. Looking solely at that factor could actually be a distraction when you're scanning for potential trades.

The worst case scenario is that it could end up causing you to NOT take gains because they don't hit your R/R expectations.

I only say this because I've done it myself btw.

 

[Edinburgh Trader]

What is your actual trading method?

What indicator correlations give you a buy/sell signal to get in and then out?

You mentioned you're only looking for a specific R/R, I think the problem with focusing on just this factor is that it could be skewing your decision making process and putting you into a 'wish thinking' mindset. Looking solely at that factor could actually be a distraction when you're scanning for potential trades.

The worst case scenario is that it could end up causing you to NOT take gains because they don't hit your R/R expectations.

I only say this because I've done it myself btw.

My current method (I am open to ideas to change this) is to identify a trending market on the hourly chart. I use a 8 and 34 ema to help determine this. If 8 is above 34 and widening I call it an up trend ( if price is above both). I would then drill down to the 5 minute where I have an 8 period ema. I would wait for the market to fall below 8 ema and buy on a rise above it. Also take a quick look at the macd histogram to see if the move has any strength.
Stop is placed just below the latest swing low that has formed on the 5 minute. Stop is moved to break even at 1:1.

I'd welcome any thoughts and suggestions with regards to this method.

Essentially I've tried to keep it simple, looking to buy rising markets and sell falling markets.

 

[mike.]

Are you familiar with the three ducks strategy E.T ?

 

[Edinburgh Trader]

I am Mike. I do look at it, but what I find difficult is the entries. For some reason I find it difficult to buy breakouts of a previous high. Appreciate that this might sound weird.
That said it might be worth me revisiting the ducks strategy. Place orders in the market and see what happens. In many ways I think the strategy should suit me, but my natural instinct is to buy on a retracement, rather than a breakout.
That said, I'm in this to make money. Simple as that.
Do you trade the 3 ducks?