Making Money Trading

[Lawman]

It's just as well because I've got a habit of ADDING when I mean to EXIT by clicking on the wrong side of the ladder. There is nothing like being 6 lots long, thinking you are closing it for profit and then finding yourself 12 lots long into a retracement. LOL

Adding when you should be closing must be pretty scary!
Good tips TD...
Also - it's good to demo just to get used to the platform being used.

I traded a bit several years ago, but found that although my entry points were good - my exits, emotions and psych were all wrong. This thread, as well as other readings on better exits AND psychology when trading have helped tremendously. My problem (back then) was getting analysis paralysis from knowing too many indicators and applying too many theories or potential setups... then, once in profit struggling between fear and greed. It's nice to know that this is a common issue among traders...

Anyway - I'll keep experimenting to find what I feel most comfortable with - then stick to it! For starters, I'm going to try and follow the methods you have described in this thread wrt S/R lines, trends, fibs, entry point, stop loss, moving to BE, trailing stop, etc. Quite excited!

Lawman

 

[VinceStanzione]

T_D,

Thanks again for all your help.

Just a quick question about the amount of historic data you use to chart on each timeframe (ie 1HR, Daily):-

How many hours worth of historical data do you like to see on your chart when you play the 1HRs charts (and similarly, what rules do you use on the Daily?)

Alternatively, if the price has been trading in a specific H/L range for say x hours/days, so you simply bring up the total historical data relating to the range?

Thanks again for all your help - trying to type this in work in a hurry, so let me know if I haven't clarified my question clearly enough.

Cheers,

VS

 

[trader_dante]

How many hours worth of historical data do you like to see on your chart when you play the 1HRs charts (and similarly, what rules do you use on the Daily?)

Hi Vince,

This probably won't help you too much but I use as much data as I can see on my screen clearly without needing to scroll.

For example, if I go onto the 1hr TF and zoom fully out on a market (with MT4) I plot my s/r pivots using what I can see on the screen which is about 2 months worth of data.

On the daily TF its around 4 years worth of data.

 

[trader_dante]

It is very important that every trader finds out what works for them personally and I'll keep telling you that throughout this thread.

I have found that counter trend trading works for me because it is my experience that I can lose many times in a row but I know that I will make those losses back and much more profit on top when I catch a significant change in trend which pin bars often predict.

As a result of this knowledge I can take these trades with confidence.

However, what invariably happens is that someone follows a trade I call (like my short in Gold which was quickly stoped out) and then ends up frustrated when it loses and says "I should never have tried to go against the trend", "it's suicide to short into a parabolic rally" etc etc

The reason they say this is because they have not had the experience trading this way consistently. Or they have HAD the experience but do NOT have the psychology to profit from this technique.

Many traders are likely to lose 3 trades at 100 ticks each and then look to exit as soon as the fourth trade makes them 300 ticks back.

It is especially hard because most traders focus on their P&L rather than the market action.

This is very common and it is the reason that many traders cannot trade against the trend and advise everyone else not to as a result.

I have seen so many strategies and so many different techniques work in my time watching the markets that I no longer try and tell people what won't work.

People say you should never average a losing trade. I can tell you that in my experience it's not a good idea but I can't and won't tell you that you won't make money doing it.

The truth is anything and everything works if it works for you.

 

[mrpunter]

Quite excited!

Lawman

that's a bad trait for trading
Trade without emotion!

 

[VinceStanzione]

T_D,

Thanks for your advice on the T/F historic data query.

In addition, your post afterwards is invaluable - it's exactly the type of sound trading physchology that Mark Douglas preaches in "Trading in the Zone".

Hope the new job is going well.

VS

 

[Lawman]

that's a bad trait for trading
Trade without emotion!

I know! That's why the demo account is going to be so useful...
It's just been exciting reading through everyone's comments on this thread and keeping everything down to the basics.

I should find a way of meeting with like-minded people so that we can make sure we're keeping emotions out of our decision making and to discuss various setups based on Pin Bars etc...

 

[Spcboe]

We are still on simulator here and expected to be for at least several months.

In the meantime, what do you all do for income??

 

[trader_dante]

In the meantime, what do you all do for income??

I had a small amount of money saved before I started but when that runs out, which it will do eventually, then I will be borrowing...

 

[pelzar]

who says youre gonna last that long Dante. " Your finished"

 

[trader_dante]

Some volatility on the Dow today. The daily pin bar was up approximately 110 ticks at one point but it bounced right at an s/r pivot I had marked on the hourly TF and from then on rallied hard.

 

[trader_dante]

rathcoole, Pelzar and I thank you for clarifying matters.

Lurker: I appreciate your defense! Pelzars comment was tongue in cheek (I hope) We sit side by side in the prop shop although for how long I'm not sure. Between us we've lost the GDP of a third world country in the last week.

 

[rathcoole_exile]

rathcoole, Pelzar and I thank you for clarifying matters.

Lurker: I appreciate your defense! Pelzars comment was tongue in cheek (I hope) We sit side by side in the prop shop although for how long I'm not sure. Between us we've lost the GDP of a third world country in the last week.

TD, Pellie,
Lurkers and I have already exchanged PMs, both our messages will be deleted so nobody will be any the wiser.
On a brighter note, it was nice to see Lurker back after his self-proclaimed absence.
But on a darker note, he posted elsewhere that he is "retiring" from trading and going back to learn about the markets for a "few years"

IMHO, that's a mistake Lurks. You can't learn to ski by watching Eddie the Eagle; you can't learn to drive by watching Jeremy Clarkson. You can't learn to shag 3 thai bar-girls in a single session by watching rathcoole_exile.
You have to get stuck in and do these things for yourself in order to really learn.

And you were, you are getting better all the time. Not so much at the 4-in-a-bed romps, but certainly at trading

 

[shadowninja]

You could probably learn a thing or two about driving by watching Clarkson. He can control a car better than we can!

Anyway, maybe Lurker is going to go back to demo accounts? I did towards the end of last year as previous working methods started not working. Back into the foray, now, though.

 

[shadowninja]

You could probably learn a thing or two about driving by watching Clarkson. He can control a car better than we can!

Anyway, maybe Lurker is going to go back to demo accounts? I did towards the end of last year as previous working methods started not working. Back into the foray, now, though.

 

[RichieE]

rathcoole, Pelzar and I thank you for clarifying matters.

Lurker: I appreciate your defense! Pelzars comment was tongue in cheek (I hope) We sit side by side in the prop shop although for how long I'm not sure. Between us we've lost the GDP of a third world country in the last week.

trader_dante, how did the scalping exercises go? (Or was that how you lost the GDP of a small African nation?) I was scalping and I'm always keen to learn new techniques.

 

[RichieE]

rathcoole, Pelzar and I thank you for clarifying matters.

Lurker: I appreciate your defense! Pelzars comment was tongue in cheek (I hope) We sit side by side in the prop shop although for how long I'm not sure. Between us we've lost the GDP of a third world country in the last week.

trader_dante, how did the scalping exercises go? (Or was that how you lost the GDP of a small African nation?) I was scalping and I'm always keen to learn new techniques.

 

[trader_dante]

trader_dante, how did the scalping exercises go? (Or was that how you lost the GDP of a small African nation?) I was scalping and I'm always keen to learn new techniques.

Well, my win loss ratio in terms of number of trades is excellent but because of varying lot sizes and the fact that I haven't quite honed my ability to cut offsides quick enough - my P&L is still negative.

 

[1Pipped]

Chart one USDCAD short. Demo. Not a very good pin but it was the third or fourth failed try to get above 1.0000 I closed it when I saw the proper pin pointing in the opposite direction a few hours later +14 pips, call that breakeven and a bit lucky ...

Chart two has two USDCHF trades on, first one is a demo short. I closed it after I saw what happened on the usdcad and it was coming up again. Was +69

Second one was my first trade on Alpari + metatrader mobile (opened an account there as Oanda has no mobile trading), its a long and it got whipped about a bit, was -67 pips. Only 0.01 lots though so thats a pint or so of guinness I wont be drinking later tonight I suppose

 

[trader_dante]

Chart one USDCAD short. Demo. Not a very good pin but it was the third or fourth failed try to get above 1.0000 I closed it when I saw the proper pin pointing in the opposite direction a few hours later +14 pips, call that breakeven and a bit lucky ...

Chart two has two USDCHF trades on, first one is a demo short. I closed it after I saw what happened on the usdcad and it was coming up again. Was +69

Second one was my first trade on Alpari + metatrader mobile (opened an account there as Oanda has no mobile trading), its a long and it got whipped about a bit, was -67 pips. Only 0.01 lots though so thats a pint or so of guinness I wont be drinking later tonight I suppose

The second trade looks like it has no other reason for it than the fact that it is a good looking pin at a swing low.

If that is the case, I am curious as to why didn't you take the USD/CAD pin that stopped you out?