That is the problem with this being my thread I get to post anything I want… Lucklly I downloaded the spell checker. But I still make mistakes as I know it is wrong sometimes !! LOL
I just want to touch on a few thoughts I have about trading.. I tend to think in a problem solving manner. My only formal education was in industrial electrical repair, I would trouble shoot electrical problems in equiptment. The light don't work you have to find out why. With trading there is a big picture with that type work there is to. First check the easy things is the switch on. I can't tell you how many times I would get a call that something wasn't working and I would got to see what it was and it worked fine, I get the person who called to show me what is wrong , They Are hitting the stop button !!! No wonder it won't start !! This happens in trading also, We aren't trying to do this we just are.
One reason I belive is we aren't really learning this stuff we want a instant fix to our lifes.. NOTHING worth doing is easy.. You feel oh so much better when you work for something.
You have decided to trade Forex, You REALLY want it to work ( why wouldn't you) So what is your job in this process ? Your job is to read and understand charts PERIOD. Candlestick patterns , Indicators, S/R lines , Trendlines , Fib levels. They are formed by the price action. We then have the indicators . which are lagging because price has to do something before the indicator sees it. and changes direction or color or whatever. Just like a relaly in a schematic. Which by the way is all computors are bunch of switches. So why is it so hard .. We are looking for to much we are complicating things.
I have been on this site for 2 years or so, I read almost every thread to some extent , I have seen time and a again . Person will start a thread has a great little system that WORKS. Starts getting input from other people try this or that. Guys Little system quits working he can't figure it , Thinks he is doing the same thing but he isn't and he doesn't rememeber what he started with.. Point is if you find something that works for you write it down before you start changinf it. That way when it quits working you can go back and start over again.
There are to types of traders here that I see profit consistentlly. The first are those with the ability to trade long term due to account size and mental ability. Some people can't stand to watch those huge draw downs. I am one.
The other and probablly the majority on this site right now, Are the ones who just take a lots of small profits and build there accounts that way. I think this is the case as being begginers in this we have that snatch and grab atittude. Which as you see yourself leaving money on the table you start to learn to hold a bit longer each trade till you too will be making longer term trades. Then you have those that take small gains with huge stops… Scares the %#@& out of me… I comes to mind 200 to 300 pips a day… 1000 pip stop lose. or the GBP/JPY equadity building sytstem buy gbp jpy on the way down , waiting on a turn around… But both work for those people…
It isn't the strategy or system it is what is right for you.. If you are all waiting for me to show you precise entries and exits. That isn't my internt here it is to get you to see . What is happening and learn to anticipate the next move , you be the switch but instead of the price action telling your indicator to do something it is telling you to do something, cutting out another time delay in the process.
Practical Information,
As in the previous post, I showed how with nothing but your bare charts you could have made 3 or 4 profitable trades. And all you have to do is look to the left at prior price action on the same time frame chart. You could have taken the trades off the same chart. but the faster one gives you better details.
Analogy Hell ;
Your driving (we all drive right). You come to a intersection what do we do? We look both ways and if you were taught correctlly . You look left ,right , and left again. Because when you looked left the first time you weren't really looking you just turned your head , I know you have all done this you look you pull out and damn where did that car come from ? I live In Key West and ride a bicycle a lot. People from other parts of the country do not see bicycles, becuase they don't deal with them in there towns. For more on that read the book called IN THE ZONE.
Anyway before making a desicsion to proceed look both ways . To your left to see where price has been and will return to and the right where price might go next. If we new where it was going we would be rich , and you can be if you LEARN to read a chart… if price breaks a S/R or fib level. where is it going. To the next S/R or Fib level of course. So why do so many people pay to see that, by Stop Loss. If you know it is headed there get out wait for the next level and try again save your money. Our only questionable area is our swings. this can tell use the trend is changing but it also can show the start of consolidation. So we have a bit of time waiting there…
So how do you become great at reading charts… Study them you have choosen this a syour job and it is one and hard at first but like evry job you ever had it gets easier with time … But saying that we all know people that struggle through there entire lifes , but most have one thing in common they are the ones who didn’t learn what they are doing thought they could fake there way through it, or ride someone elses coat tails. But your on your own here …
Everyday pick your trading time, at the end of everyday hit ctrl and printscreen, open paint and save it , make special file on your desktop for these charts. Then analysis them , you will start to see the repeating patterns that happen almost everyday. At the opening of the sessions the closing of the same , Lunch hour etc... It is all there for free.. we just need to see it.
I have babbled enough, Gotta co take the rental car back…
Tae Care Ken Lee :confused:
