More Money, Less Psychology.

peedee

1
341 0
First of all i would like to say, " Great site, sorry about all my threads at once." But, i am a very novice trader and in fact i have not made a trade yet to be truthfull, from my own perspective it seems that when a trade is made i would feel more comfortable knowing that should i come a cropper it is not going to dent my account that much. Bearing this in mind i am not saying that someone should become sloppy in thier trading methods, all i am saying is it seems that the more money you have behind you the more relaxed you will be about your trading. PeeDee. :?:
 

Market Wizard

Member
88 26
the amount you risk on any trade should be a calculated? risk, no matter what size your account if the fear of a potential loss denting it is there then there will be problems.
Remember trading is easy, only we make it hard by putting in negative thoughts in our way. If traders could only focus on the process of trading and eliminate any other barriers in their thinking, trading would become a whole lot easier. Overexposure, market volatility, losses etc are all present factors to stimulate your thinking in a non productive way.
The only way is to focus on process.
 

peedee

1
341 0
Cheers for the reply MW, when you say process i take it your on about applying your own calculated method or strategy when making a trade, i understand what you are saying, it seems like it is up to the individual to decide what kind of risk tolerence they feel comfortable with. PeeDee.
 

Market Wizard

Member
88 26
Hi Peedee,

When i say process what i am referring to is the whole step by step actions that you would take just before you put on a trade. These woukld include clearly defined entry/exit points, and your stop loss. There may be other factors involved but they will all vary upon your style of trading.
These steps are merely what would be done to achieve a perfect trade if there were no outside factors e.g fear,greed, to cloud our judgement.
 

peedee

1
341 0
Hi MW, i use volume charts for my TA, to be specific "Market Volume" they are a U.S. company, i dont know if you have heard of them or not, i prefer to track the Dow it seems to react well to volume ( please, correct me if i am wrong ). This is the only view i take about the markets and to be truthful it does not leave much to say about diversification in the way i go about my trading but i feel comfortable with it. What do you trade( if thats not to nosey), and what do feel about diversification( it seems to me, as a novice, this more applies to single company trading rather than trading indexes. Cheers, PeeDee.
 

peedee

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341 0
Cheers Oatman, if i want to know how CSCs work where do i go. By the way what do you think about volume charts as a means of TA on thier own. PeeDee.
 

peedee

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341 0
Market Wizard, are negetive vibes really negetive, taking in to account that they may stop us lossing money. What i am trying to say is, negitivity is maybe the key to making money. I am in no way trying to undermine your trading methods( far from it ), but everyone has got to be cautious. Cheers, PeeDee.
 

ChartMan

Legendary member
5,580 46
Skimbleshanks trades using ONLY price and voulme on S&P500 futures. I use S&P500 Vol as a confirmation /non confirmation tool to correlate my analysis of the dow. I use candles on the DOW, but don't take a lot of notice of them, they are more relevant when used in conjuntion with the S&P volume. The DOW is used purely to analyse the move from a TA point of view and extract targets , likely breakouts etc. I don't generally look for classic candlestick formations to base trading decisions, except when looking for bottoms and tops.
 

darrenf

Well-known member
481 3
Peedee

I also use candlestick charts. You can get them on most decent websites. Have a look at bigcharts.com. They do realtime charts of US indices/ stocks and delayed UK indices charts.

I use candlesicks just because I like the look of them. I find them clearer than bar charts. I don't particularly follow any candlestick specific formations for signals.

I did buy a book a couple of years ago: "Candlestick charting explained" by Gregory L Morris. If you want to learn more, this explains all the formations in detail and also has a good section on combining candle signals with some of the well known indicators. Can't remember how musch it costs but it's a reasonably good book.

Cheers for now
 

peedee

1
341 0
Thanks for the replies, this may seem a bit philisophical but do people/traders get a general feel for the markets, i have been looking at the markets for about six months (not that long, i know) but it seems that you can predict moves within the market without any indicators, is this just luck or not. PeeDee.
 

oatman

Senior member
2,879 22
I find candles easier to look at, but don't really know the patterns! Bar charts, I like to see the opg/clsg levels of the bar. I also use P&F 3x3 1min hilo charts for breakouts. Volume, I follow loosely. Moves accompanied by good volume tend to follow thru whilst light vol moves often fade and reverse. Spike volumes often have nothing to do with movement. As for gut feelings, they are just that. I could never standardise a feeling on why I got into or out of a trade..... old floor trader/jobber reactions, whether right or wrong, you jump quick. :cheesy:, no time to think. You can be too close to a market.
You must find the time span that suits you.


Good luck
 
 
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