Simple systems

[beginner_trader]

Hi all,

I keep reading that very simple systems can be very effective, eg one just based on 2 moving averages.

What I don't understand is that how can anyone trade without being aware of important levels on the charts, such as trend lines or daily pivots?

A moving average system could be indicating that you should go short but there could be a daily pivot level a few pips below or an important trend line, so when the price reaches it it changes direction.

Don't people who trade without having these extra things on their charts keep getting caught out?

Thanks.

 

[shadowninja]

Depends. Unless it's a major line, such things are short-lived. Depends on whether they swing or scalp as to the impact it has.

 

[FXSCALPER2]

Nothing really 'works' in trading. You have to know what you are doing. It is like anything else: to perform well, you need skill. Most people who say things like MAs work are talking based on what could have happened when they look at a chart with MAs on it. These indicators make no sense at all. Why would a moving average tell you anything? It is just a way to smooth the price series and moves all over the place depending on the time scale you use.

Take it from me: no one can come and make money from trading with simple systems. You can do certain things like never taking a loss and last for a while, but if you want to do this for any length of time, you need to aquire the skill and it will cost you more than money if you are like most people. Don't listen to people who tell you it is simple but not easy or some bollox like that: for the vast majority of people it is neither simple nor easy.

 

[Chorlton]

Nothing really 'works' in trading. You have to know what you are doing. It is like anything else: to perform well, you need skill. Most people who say things like MAs work are talking based on what could have happened when they look at a chart with MAs on it. These indicators make no sense at all. Why would a moving average tell you anything? It is just a way to smooth the price series and moves all over the place depending on the time scale you use.

Take it from me: no one can come and make money from trading with simple systems. You can do certain things like never taking a loss and last for a while, but if you want to do this for any length of time, you need to aquire the skill and it will cost you more than money if you are like most people. Don't listen to people who tell you it is simple but not easy or some bollox like that: for the vast majority of people it is neither simple nor easy.

Hi FXScalper,

Out of interest, given your comments above about MA's (and I'm assuming maybe most other indicators?), what do you mainly focus on when making trading decisions? Price action ?

 

[neil]

naked

Hi FXScalper,

Out of interest, given your comments above about MA's (and I'm assuming maybe most other indicators?), what do you mainly focus on when making trading decisions? Price action ?

These might interest you - and it's Free !


http://www.forexfactory.com/showthread.php?t=86766


james16 Chart Thread

Jacko's Forex House of Pleasure and Pain

No Free Lunch: Director's Cut

The System II (Yes with irony)


http://www.trade2win.com/boards/general-trading-chat/32991-potential-setups.html

http://www.trade2win.com/boards/for...5-phil-newton-s-range-break-out-strategy.html

Put the hours in re study and practice and you will benefit.

Good luck

 

[rathcoole_exile]

Don't listen to people who tell you it is simple but not easy or some bollox like that: for the vast majority of people it is neither simple nor easy.

that's bollox

trading is the simplest business in the world !
pick a trade direction and either
a) you're wrong and get stopped out or
b) you're right and make money

no decisions about life-saving surgery, no deciding whom to lay off from your factory, no worrying about your order book, no grey areas

keep it simple, indicator free and a 4 year old could do this job.

what makes it 'difficult' is the psychological battle with oneself to accept the losses and keep plugging away; and money management, especially resisting Greed and Fear

 

[FXSCALPER2]

Hi FXScalper,

Out of interest, given your comments above about MA's (and I'm assuming maybe most other indicators?), what do you mainly focus on when making trading decisions? Price action ?

Price action, very tight stops and I can take a lot of pain.

 

[FXSCALPER2]

that's bollox

trading is the simplest business in the world !
pick a trade direction and either
a) you're wrong and get stopped out or
b) you're right and make money

no decisions about life-saving surgery, no deciding whom to lay off from your factory, no worrying about your order book, no grey areas

keep it simple, indicator free and a 4 year old could do this job.

what makes it 'difficult' is the psychological battle with oneself to accept the losses and keep plugging away; and money management, especially resisting Greed and Fear

It is simple if you know how, of course. That was my point when I said 'for the vast majority...'.

 

[Black Swan]

that's bollox

trading is the simplest business in the world !
pick a trade direction and either
a) you're wrong and get stopped out or
b) you're right and make money

no decisions about life-saving surgery, no deciding whom to lay off from your factory, no worrying about your order book, no grey areas

keep it simple, indicator free and a 4 year old could do this job.

what makes it 'difficult' is the psychological battle with oneself to accept the losses and keep plugging away; and money management, especially resisting Greed and Fear

Good philosophy.

 

[rathcoole_exile]

i hope I'm right about the 4 year old - I'll be handing over the reins to mine in 2 years so i can spend more time in the pub

 

[shadowninja]

There's got to be a use for children (apart from choosing which nursing home you end up in)!

 

[leovirgo]

what makes it 'difficult' is the psychological battle with oneself to accept the losses and keep plugging away; and money management, especially resisting Greed and Fear

absolutely correct..

- profits seen like a rainbow but not realised because of greed..

- profits unseen due to fear of loosing

should have could have ...

 

[philhackett]

Hi all,

I keep reading that very simple systems can be very effective, eg one just based on 2 moving averages.

What I don't understand is that how can anyone trade without being aware of important levels on the charts, such as trend lines or daily pivots?

A moving average system could be indicating that you should go short but there could be a daily pivot level a few pips below or an important trend line, so when the price reaches it it changes direction.

Don't people who trade without having these extra things on their charts keep getting caught out?

Thanks.

Below are the two systems which I have used for many years; very, very successfully. Professional traders world-wide use the same set up. It is very difficult to lose money if you adhere to the rules. The systems are two separate trading methods which happen to compliment each other and can be used separately if you so wish.

The instructions are simple to follow. If you cannot understand them, join your local Technical Analyst Society.

It is worth pointing out that people are promoted on this site by the number of posts; not the amount of relevant knowledge, Hence Legends are time wasters.

file:///C:/Trading%20advice/TraderTalk,%20A%20Simple%20Moving%20Average%20Trading%20System.htm

eSignal Learning: Trading Educator's Corner -- Joe DiNapoli

As ever

Phil H; MSTA CFTe

 

[blackcab]

Below are the two systems...

file:///C:/Trading%20advice/TraderTalk,%20A%20Simple%20Moving%20Average%20Trading%20System.htm

eSignal Learning: Trading Educator's Corner -- Joe DiNapoli

Phil, the first one didn't come through. Is it the 3x13x39 system?

 

[Blu Bull]

Below are the two systems which I have used for many years; very, very successfully. Professional traders world-wide use the same set up. It is very difficult to lose money if you adhere to the rules. The systems are two separate trading methods which happen to compliment each other and can be used separately if you so wish.

The instructions are simple to follow. If you cannot understand them, join your local Technical Analyst Society.

It is worth pointing out that people are promoted on this site by the number of posts; not the amount of relevant knowledge, Hence Legends are time wasters.

file:///C:/Trading%20advice/TraderTalk,%20A%20Simple%20Moving%20Average%20Trading%20System.htm

eSignal Learning: Trading Educator's Corner -- Joe DiNapoli

As ever

Phil H; MSTA CFTe

can you post the 1st link once again please?