09-11-2007, 06:36 PM
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FX-Men Honorary Member
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Join Date: Jul 2007
Location: Perth, Western Australia
Posts: 1,304
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Quote:
Originally Posted by caireono
Caireono again.
For the last one month, I spent almost 16 hours a day, not enough sleep, keep trying and imagining that one day I will find the answers to a simple and profitable day trading method. I would like to share some of my key observation here, since I found this thread is very useful I would like to return the favor (I think!) - but BEAR IN MIND, IT IS NOT 100& GUARANTEE, because I am still overall 50% win and 50% loss.
1) For stochastic, BE REAL CAREFUL at the 80% and 20% region. Sometimes if it is nearing the 80/20 and we dont have enough patient,we go in thinking that IT IS GOING TO BE LATE, if we enter later. And Stoch always is the CONFIRMATION INDICATOR not a LEADING INDICATOR. LIKE this IB technique, I like it very much because it works with what I have been trading before.
2) IB Technique is a Trend Reversal - not 'Trading the Trend' that is why FINDING THE LEAD INDICATOR is important and has to be EXACT description, PLUS, you need a SECONDARY indicator that CONFIRM the FIRST INDICATOR.
3) Many times i made mistake in FOLLOWING THE TREND, WHEN I SAW a sudden rapid bullish trend or bearish (meaning price going up or down) in a very speedy manner. I tried to catch that. The moment I bought/Sell, there you go, the price go to the exact reverse, and may reach your 20 pips stop loss in few seconds (true for GU not EU - my observation) - that's why I go back to Trend Reversal type of Trader instead of Trend Follower. It is MORE DIFFICULT THERE.
4) Later.. I will share more. If I have other members to comment on my experience.
Important notes on Emotion.
1) The moment we enter and put our stop loss, that's it. LET IT GO.
2) BELIEVE that we are going to WIN THE WAR, so losing small BATTLE is ok.
3) Everytime we loss is a GAIN of experience, meaning like Thomas Edison says - he never fails even over 9000 (dont remember) trial to make the light bulb. Every time it doesnt work it is every step towards SUCCESS.
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Your input and indeed the observations of all traders are very welcome, after all thats why the thread is here. I find the use of the 5 set ups, (S/R, Double top/bottom, Fib ratio, divergence and round number) along with the entry trigger, (ib/ob and stochastic), sensible profit targets (based on supply/demand areas) usually involving a 'legging out' process and an ability (which develops reasonably quickly) to see when its not going right and being prepared to ditch and only take grade A trades and trying to stay in for the long haul sufficient to give me a win:loss of 2:1 with many of the wins being at multiples of R. If you look again at the chart posted in my last post you could have had 5/5 winning trades several of them at 4R or better and retired for the month! Keep on working on the issues of confirmation and if you can get your win loss ratio above 67% then I would love to hear how you have managed it
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I am just curious thanks for sharing 
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