Good luck for your system man.Always stick with your system and don’t forget to make a trading journal.
you talk alot of sense Lex
Hi Lex,
You,re absolutely right. London ‘thing’ is sooo…right though. I already trade without any indi at all except candlestick at London timeframe & not necessary GBP/USD or EUR/USD.
I only trade 4 currency + gold. AUD & NZD are my choices with 4H as my entry time frame in London market only with daily as a signal couple with weekly & monthly as a range for TP.
I start with SL on how much money I would stay calm if I lose the trade. I could put my SL 100 pips away with $100 or $1000.
I don’t move my SL daily, I only move it if daily candle tell me so. I begin to move my SL when daily candle body getting smaller & smaller.
I not sure whether I doing it right, really appreciate your advice and I would like to hear it more. I stop looking at any indi a bit more than 2 years now, although more than 2 years before that my chart so confused with indi including Ashi & Gann.
Thanks JJ!!!
I wonder if all traders go through this stage and eventually wondering if indicators are a waste of time,and are just the road to the poor house,Im definetly coming to that conclusion,watching price action maybe the way to go.What do others think?
Hello everyone,
First of all, Im sorry if I have diverted the attention from the original intention of this thread.
To be fair, I do not completely debunk the use of H-candles or any indicators we see in our trading platforms.
H-candles or any indicators (MAs, oscillators…) can indeed work.
However, if (and that is a BIG if) you do reach the stage of profitable trading with a set of indicators you will definitely reach a stage where you will find yourself condensing your trading profile into a simpler version. That will be your ultimate destination.
Allow me to further elaborate.
It is only few years ago that if you went sightseeing, you would most likely have in your possession a phone, wallet, camera, road map, and perhaps even a paper itinerary for the day. All these items are now condensed into 2 items now; phone and wallet. Soon it will be further condensed to just 1 item. I know for a fact that certain companies are trying to bridge the gap between consumers and retailers by means of a quicker transaction without breaching personal security; microchip implemented under your wrist that acts as a personal ID, means of credit and even connects your physical body with an online identity all in a seamless transition. You may not believe it now but I for one would love a wallet free world and I hope the day comes soon.
The above is not a personal opinion but it is a natural part of human evolution to carry things less, travel faster, know things faster.
This happens in every facet of our human evolution. Even fashion. Few hundred years ago, it doesnt matter if it was the middle of a boiling summer day, you still had layers of clothes; fedora, tweed vest, singlet, cape, venetian frills, ballgown dresses, 6 piece suits. Fast forward to now, some of us barely wear anything. This is not part of changes in social/political trend but logical reasoning of humans catching up and realizing the irrelevance of such items.
Such natural process of ‘evolution’ will come with your trading profile (if you make it).
You may have MAs, oscillator on your charts for now. And lets just say you are one of the few ‘evolving’ trader who happened to pull off a great trading method (most are accidental discoveries than shared knowledge from a thread in a forum). You have tested your method with a small live account for a great length of time, have conducted few hundred trades, and you know the workings of your method inside out. And as your confidence and trading profile nears completion, you realize that you could ‘trim the fat’ from your trading profile. You can see it. But above all you can prove it with statistical data because you have ‘diligently’ traded your method for quiet some time and now have statistical blueprint; profit ratio, losing streak, DD, abs %, number of trades, winning streaks and so on.
And I assure you when you start trimming the fat you notice that there were so many useless things on your chart and what you have definitely overlooked as too simple in the early stage of your trading career, now looks very clean, simple, condensed and straightforward.
I had a hand in training an overly eager institutional trader back in the days when ‘institutional trader’ had a meaning. This new ‘analyst’ had hot blood in his veins. Apart from his impeccable resume and a transcript that made all of our penises invert so we had to literally sit down to piss for a month. He was still a typical new puppy. He can give us the 1000 yard death stare for all he likes but we have seen it all. We gave each other silent stares and watched what unfolded. He was good trader, had the brains, but overly keen to new ideas. Whilst he had as many as 10 indicators flashing all sorts of lights at him, most of us had 1 or 2. Whilst he took 100+ trades within the timeframe of 6 months most of us had less than 10. Whilst he still managed to have % gain in his portfolio, he was the last in the group.
Hope this small story answers your question but gives you just that little bit more.
Since I came this far I should just add that most traders like these either change their trading profile completely to become our friends or they become the ugly duckling. The market either molds them right or wrong. But once you are molded wrong, your learning curve gets so screwed that you are beyond help. The screwed up new guy usually keeps his ‘analyst/trader’ title but becomes more of a sales person for the firm rather than a trader. This also happens in this very forum. So many traders have their learning curve screwed up, matter what you say to them, they simply cannot absorb the information - it is immediately rejected against their belief/ego. Very sad.
Very few of them do breakaway to open their own fund management, still caught up in their own self-belief. I have only seen 1 person who is still trading after breaking away from mainstream.
Skyfolder - Im actually amazed to read your post. Your post is one of the main reason Im typing this one. There are not many details in your post but I can already tell few things you are definitely doing correctly.
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You base your trades on a lower timeframe and aim for take profit on higher timeframe. That itself is good r:r. From the hundreds of trade/risk models I have simulated against past years of tick data, the only parameter that constantly shows profitability is based on that simple method.
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You also said London market ‘only’. Superb. That means you focus on 2 4hr candle per day. Exactly what most of us do. All major trends that have happened in the last 10 years have happened during London session. Price does not return to high/low of a trending london session. Place your stop loss above/below the current london session.
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You also said SL 100 pips but $100 or $1000. Excellent. You are not the typical baboon that troll these forums with “risk maximum 2%” slogan tattooed on their forehead. Risking a certain % of your capital is irrelevant for the starting trader with limited capital. [U]As long as you can support your defined risk.[/U] If you can save $200 into your trading account every week and plan to risk up to 4 trades with each trade hard stop loss 25 pips - then you can work out your lot size (0.2 $2 per pip). People will laugh that you are risking 25% of your capital every trade but 25% of $200 per week is sustainable. The only way a starting trader will ever become a professional trader is through a set of very large wins and they [U]continue what they have just discovered.[/U] % per trade only applies for institutional or large traders with few millions under management. [U]If you have the brains to reach profitability, it will strike you as common sense that once you have grown your main trading account to a certain size that you would risk alot less per trade - even if you know that you can still be profitable, you wont leave the slightest chance for your main trading account to take a big hit.[/U]
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You dont move your SL and if you do, you take the warning sign from daily/weekly chart. SUPERB. You certainly know your risk and you also know you can sustain your risk (as point 3), but you also know to hold onto positions. There is a direct correlation between position held open vs potential profiting. You also base mass market sentiment by observing the decreasing range of the daily candle. Excellent - that will also work.
You know you have come a loooooooong way when you can take losses and not care cause you know what are you looking for.
I just hope you continue what you have just explained.
Regards,
Lex
Food for thought Lex.
Thank you Lex,
I’ve done stressed my self & i feel better with my opened position now. I hope i had read your post 4 years ago.
That 100pips SL just example of the risk, I actually done as you said, sometime just 25pips sometime a bit more than 50pips. However the specific market low/high what matter most not pip in my SL.
I only read forum once in a while, if i not around just remember i am doing my trade & grateful for you guys here.
Try googling “what-forex-trading-was-like-in-the-1980s” maybe this will change your way of thinking of how forex was traded. I have nothing to do with the web, just watch the video.
That why I believe in Lex. Thanks all
Buster48 that’s not 100% correct.
Many of the forex traders have simple systems and they are making money from them.Their system contains 2 or 3 indicators and they blindly follow it (or stick with it in positive sense) and they are really profitable.
David Aronson in his book “Evidence based technical-analysis” clearly states "After checking through the historical data of Dow jones and S&P500 it has been proved that technical analysis really works in the fx and stock market."
In his book he has discussed various indicators and proved that how and why they work?Of course they don’t work always but at least they can give you confidence to enter the trade or sit sideways.
Read his book to know more.
Thanks for your insite JJ I"ll ponder and codgitate over what you,v said ,my trading has got to the stage where Im no longer sure which direction to take for the best:33:
Good afternoon from Spain, Lex
May I know your email in order to be able to ask you something?
Thanks!
Hi from Spain, LexKim
Send me, please, a mail and I will inmediately answer asking you something (if I may).
Thanks abd best regards.