What not to do

stoploss please

Established member
There is a lot of discussion concerning how to trade and what you should be doing.

I have an idea. Lets all make a list of what not to do. I will start it.

I do not trade break outs.
Dont ignore the wife, even though you understand the importance to stay focused when in a day trade that you have patiently waited for it to setup,calmly executed, objectively being aware of the market movement that you realise is moving you into profit waiting for that split second moment that only you know to exit, DONT IGNORE THE WIFE .

From a psychological view point making a list of "what not to do ", while productive in identifying individual bad habits, mentally is not very productive unless you take action by the making a corrective list to prevent or improve on these issues.

To put it simply, when you tell a child "not " to do something they would immediately do the opposite and is a form of psychological conditioning. You know if you have said to yourself not to do something ie a particular trade etc. but your overriding feelings make you not want to miss an opportunity hence you put the trade on that you expect will loose you money based on your current methodologies.

Taking action on the list you have identified will make you a better trader rather than just writing a list.

This is the difference between a wish list and a to do list


Hehe. How strange. I was just going to ask your opinion on taking a postition near the VWAP. Some systems take it as a bullish signal to go long if a stock crosses above it's VWAP nad visa versa, but obviously you disagree? You prefer to trade towards the VWAP against the trend. If a stock is 25c below it's VWAP would you look at that as an attractive buy?

thanks Grey1

We don’t take position near the VWAP ,, We have not achieved any thing to trade near VWAP .. we should trade well away from the VWAP by ( High of the day -Low of the day ) /2..

This is the complete strategy

1) IF DOW > 50
2) Price < VWAP by ( high of the day - Low of the day )/2
3) Then LONG
4) sell 1/2 when price = VWAP
5) If price crossed the VWAP to above then let it run other wise close


a) We don’t go short on strong day +ve day
b) DOW level of 50 is due to Rule 80 _A on NYSE Curbs.. Hence no arbitrage on any indices..

PS:-- If market has been oscillating around VWAP then It might be just acceptable to go short ..

The above strategy has , risk /money management and indicators all in one simple package..

SAME WHEN DOW < 50 .. take a short positions instead
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Do not trade without conviction.........i.e never ever have self-doubt when executing a trade.........if in doubt, wait till another time cos there will always be other opportunities.
This is the result of YHOO above its VWAP .. An excellent opportunity to short in a weak market ..

Blue is the VWAP ...


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