All You Need To Trade Is A Horizontal Line

[TheRumpledOne]

ALL YOU NEED TO TRADE IS A HORIZONTAL LINE

TRADING IS SIMPLE.

There is an entire industry built around making you think it is complicated.

All you need is a HORIZONTAL LINE on your chart to be a profitable trader.

I bet you doubt me, don't you?

Go long when the price moves UP to a price ends in 00, 25, 50 or 75.

Go short when the price moves DOWN to a price ends in 00, 25, 50 or 75.

IT IS THAT SIMPLE!!

Look at the chart and see how many pips you can make when you trade with the H1 candle color.

You can do this with stocks, currencies, futures, etc.

Oh when to take profits? Where to place stops? Just DON'T BE GREEDY and use COMMON SENSE! Learn some money management.

[dpaterso]

Hey listen:

No offense BUT before any new traders even try this I suggest you ask to see some LIVE trading results first!!!

Trading is NOT as simple as the thread starter would have you believe I can assure you and if something looks TOO EASY TO BE TRUE then believe me it's just that!!!

Like I said: no offense 'TheRumpledOne' but I spend a good deal of my day trying to get new traders to 'move away' from the 'easy money get rich quick in this business' mindset and if you don't mind me saying so I've now seen two posts of yours that are perpetuating the 'myth' that it's 'a walk in the park' to make BIG money in this business!!!

I promise you that I'm really not trying to offend you nor am I even saying that this does NOT work i.e. it may be working VERY WELL for YOU BUT there is a WHOLE LOT MORE to this business than trading 'psychological lines'. Maybe YOU have the experience required to make this work for you but I can assure you that many new traders will see your posts and 'jump in' and they WILL get burned.

Put it THIS way: maybe you can explain a bit more IN DETAIL in your posts what you're doing for them i.e. THAT would make a difference. Just a suggestion.

[Yarcofin]

So the pair has to turn around when it hits a number ending in EXACTLY 00,25,50,75? Or just close..

On the chart provided I don't see how this would make any good trades.

[BarryPips]

From a cursory look, it appears that NickB on the Forex4Noobs site uses support and resistance as his trading signals. Round numbers act as support and resistance, also. Perhaps the thread starter is not as wrong as you might think.

NickB seems to suggest that if prices move through S or R lines then the moves are likely to continue.

Just my two pips.

[daydreamer65]

Originally Posted by BarryPips

From a cursory look, it appears that NickB on the Forex4Noobs site uses support and resistance as his trading signals. Round numbers act as support and resistance, also. Perhaps the thread starter is not as wrong as you might think.

NickB seems to suggest that if prices move through S or R lines then the moves are likely to continue.

Just my two pips.

NickB's system is a lot more than trade on round nos.

it may be working VERY WELL for YOU BUT there is a WHOLE LOT MORE to this business than trading 'psychological lines'.

The most important part of the o/p's thread starter is,

Oh when to take profits? Where to place stops? Just DON'T BE GREEDY and use COMMON SENSE! Learn some money management.

Have fun.

[TheRumpledOne]

Pick ANY candle on the chart.

1) identify the color.

2) let the candle close

3) if the next candle is NOT the same color then:

if the current candle is GREEN go LONG at the FIRST line it approaches

if the current candle is RED go SHORT at the FIRST line it approaches

When to exit? Usually, when price stalls.

Stop loss? If price crosses the previous candle's midpoint.

Does that help?

[dpaterso]

Hey 'daydreamer65',

I was wondering what happened to you (and others from last year)!!!

I don't disagree one bit about 'the most important part'. But let's face it: you and I have been at this a little while now and it's NOT as easy to be consistently successful in the business as the first post on this thread would have you believe. Hell: if I was new at this and saw a post like that I'd probably have 'jumped in' 'feet and all'!!! Somebody else is talking about Support and Resistance. Good and well but there ALREADY you're talking about at very least SOME knowledge OTHER than what is posted here. Aside from that: call me dumb but I've looked at that chart and I (also) don't see where the money is being made. What I DO however see is a whole PILE of 'sh*t' happening if you're wrong on a trade and don't adhere to some sound money managements rules and don't know how / where to set stop losses or take profit which AGAIN already assumes a bit of knowledge and experience which is totally different from the message that the first post converys. OK: maybe my problem with the post is not so much the 'system' (not that I would touch it with a 'barge pole') but maybe the way it's worded (again: no offense). I suppose all I'm trying to do is 'warn' any new trader that comes across posts like this to NOT think that trading is like 'paint by number'. It ain't!!!

Edit:

OK: In all fairness I've had a look at the thread starters website. Impressive (especially the radio interview). He calls himself a 'statistical trader' which is not a term I'm familiar with so then I probably should not be judging here (which is not my intention). ALL I'M SAYING: consistency does NOT come easy in this business so be careful!!!

[BarryPips]

(daydreamer65) You are absolutely correct about NickB's system being more than the round numbers. He uses support and resistance, and especially candlestick interpretation to judge the market.

[4xStar]

Especially with the G-Y there is also a phenomena that plays itself out very often: if price heads to a .50 level and fails, when it drops down past the next lower 00 level, go short as it will usually continue down to the next .50 level at least. Check it out on previous charts.

Forex is not easy, but that is due to the money management and mastering your own psychology involved .. but it CAN be simple! Many of the most successful traders have made their money following one simple system (like bunnygirl did with her BGX) and just doing it over & over again.

So Rumpled's post is not too simplistic and has a great deal of logic in it .. you just have to be careful & disciplined in following your rules and make sure you demo-test any strategy first, then use very small quantities of real money, and only when you are sure of YOURSELF and how YOU react, can you start to increase your trade size.

My 2 cents

[TheRumpledOne]

Originally Posted by 4xStar

Especially with the G-Y there is also a phenomena that plays itself out very often: if price heads to a .50 level and fails, when it drops down past the next lower 00 level, go short as it will usually continue down to the next .50 level at least. Check it out on previous charts.

Forex is not easy, but that is due to the money management and mastering your own psychology involved .. but it CAN be simple! Many of the most successful traders have made their money following one simple system (like bunnygirl did with her BGX) and just doing it over & over again.

So Rumpled's post is not too simplistic and has a great deal of logic in it .. you just have to be careful & disciplined in following your rules and make sure you demo-test any strategy first, then use very small quantities of real money, and only when you are sure of YOURSELF and how YOU react, can you start to increase your trade size.

My 2 cents

Actually, it is very SIMPLE. Note I said SIMPLE and not EASY.

It's gets easier with practice.