[B]*** IMPORTANT NOTE ***[/B]
[B]When I started this thread I was pretty new at trading (which may be obvious from my very first post below). The reason I’m telling you this is because things did NOT work out as well as my first post (below) may lead you to believe. All I’m saying is: don’t take my first post (below) and think that you (I) have discovered the ‘holy grail’. Far from it.[/B]
[B]It’s amazing!!! Since I added the above comment I see that this thread has become ‘unfashionable’!!! Why??? Because all of a sudden the ‘quick road to riches myth’ has been dispelled YET AGAIN!!![/B]
[B]Trust me on this one: there is far more important information contained in this thread that relates to the psychology of trading and just what this business CAN do to you if you don’t ‘do it right’ than a ‘quick road to riches’ indicator!!![/B]
[B]*** END ***[/B]
Hi folks, I am just so excited I could ‘sh1t’!
I have made more money in the last two days than I have in six months of messing around (well almost but you’ll get the picture) - and here’s how:
Parabolic SAR + Daily / Weekly / Monthly Charts!
I just have to share my thoughts with all:
Why is it that we all feel the need to ‘mess’ with the indicators and try and find that ‘edge’ when there are already tried and tested and proven methods of making money!
Anyway - for those of you who don’t know - The ‘SAR’ part in ‘Parabolic SAR’ actually stands for ‘Stop and Reverse’ - and not ‘Support and Resistance’!
It was formulated by J. Welles Wilder a lifetime ago and his method of trading was basically ‘always in the market’. In other words - you go long or short the moment the first Parabolic SAR dot appears and exit and reverse your position when the next Parabolic SAR dot appears in the opposite direction.
This indicator was also designed to ‘aggresively’ lock in profits. In other words - once you have entered a position - your stop loss gets moved to the value of the current Parabolic SAR dot and you do this every day.
There are only two rules to follow:
Only work on Daily / Weekly / Monthly charts
AND
Do not mess with the positions i.e. force yourself to stay away from them and do not exit them when you ‘think’ you should - trust the indicator. This unfortuanately requires discipline and patience!
This is not something that I did not already know - I just did not have the patience to see the trades through with this indicator - and it has cost me dearly. Now I’m just interested in making money - not being the new ‘whiz trader’ on the block!
Basically - what I did two days ago - was open positions on each and every single currency pair that my one broker has on offer - as long as the first Parabolic SAR dot had just appeared on the daily chart. At this point I am showing a net profit of $2182 for a total layout (margin requirement) of about $1500 - and that is after two days. And that is after having two positions stopped out already. One thing to be careful of is trading pairs that have high spreads like my beloved ???/ZAR - it has to move too much to realise a profit (unless you work on the Weekly or Monthly timeframes - then you’ll be OK).
Now I know that there are folks that will say that this indicator gets you into trades late and profits are also taken far too late (by it’s nature the price has to reverse for a dot to appear in the opposite direction). As unfortuanate as this may be - at least there IS profit 99% of the time! I’d rather make less money on 99 trades in a given month than do 6 or 7 ‘monster’ trades during that same month but lose on the other 94 trades. Get the picture?
In order to maximise profits you could add to positions the moment the first Parabolic SAR dot appears on the Weekly and the Monthly charts (assuming that you are already trading the Daily’s).
This ‘system’ is, of course, the same as James’ ‘45 Pips Per Day - EUR/USD’. The only difference is that you do not need MACD and you do not trade on any timeframe smaller than the Daily’s. Trading on the Daily / Weekly / Monthly timeframes makes you ‘almost’ immune to news data and the associated ‘spikes’ which, unfortuanately, the 30 minute timeframe is susceptible to. This indicator also does not seem to care about ranges or trends - it just ‘plods’ along. Now what more could you want?
Actually - I did this after a thought came into my mind the other day (I have them from time to time): all of the indicators were designed to work on the Daily timeframe - not 4 hours / 1 minute etc. etc. I mean - when you calculate pivot points for example you calculate them based on the previous days data - not the previous hours or minutes data - but the previous days data!
Regards,
Dale.
P.S. The only thing better than this is the Profitunity (Chaos) Trading System by Bill Williams and his daughter. Unfortuantely though - this system requires much more ‘maintenance’ and although generates better profits by getting you into the trade much earlier - there is not ALWAYS a trade - and I am one of those people who HAS to be in the market - so there is my problem. So - if you are anything like me - here is the solution!