To learn I guess, at least, that’s why i’d ask…
For example, he mentions [I]Be careful to not be faked out
[/I]…
I’d love to know his strategics for this, no lagging indicators right… so is it just price action?
What timeframe is he trading and why? etc
Cheers
Interesting thread. Kpeterson sounds for real and his method seems very doable.
I’m new at this (6+months) but his philosophy sounds a lot like mine…wait for confirmation of a move by the big guys…jump on board, exit at a reasonable profit.
I just try and capture the middle third of a move, no more, no less.
Hi RMStrader,
Could you explain a bit on how you determine the ‘move of the big guys’, is it only momentum?
oh, wait, and volume of course
piptarts -
I only trade the London Session, sometimes continuing into the New York session…that takes care of the volume question. I stay COMPLETELY out of the market at other times. This makes my trading day 2AM to NOON my time. I’m generally done by noon and counting my profits. 
I only trade with the long term trend (determined from the 4Hr chart) and trade on the 15Min or 5Min chart.
I’m still tweaking my strategy, but basically it is a moving average x-over system. I determine whether a given pair is ranging or trending (I scan the 6 majors), stay out if things are ranging until I see a clear breakout of the range and fall into a trending situation. I’ll often miss out on a lot of the major initial action because I’m waiting for that longer term verification…but that’s ok!
Be patient and wait for the right setup. I’ll generally find several opportunities per week…sometimes more. But I’m patient and don’t trade when I don’t understand what’s happening.
I NEVER risk more than 2% of my capital on any given trade. Usually less. SL is determined by market conditions at the time of entry (latest swing high/low).
And I’m patient.
Did I mention…BE PATIENT?
Good trading!
Don’t want to hijack RMStrader’s answer but the majority of pro traders either go for breakout or momentum trading. FACT.
Do you have documented statistics of an analysis of the majority of pro traders that states they trade that way? If not then it’s an opinion.
30 years as a pro trader Phoenix… its not opinion. But ok if it makes you sleep easy then its just my opinion.
Yes, yes it is, just because you have been trading for 30 years you somehow know how most pro traders trade? Doubtful. Even though you’ve traded for 30 years I doubt you go to secret meetings with all the other pros.
Just because you may be doing something a certain way and it works for you doesn’t mean all the other pros just have to be doing that or they fail.
My opinion is that most pros are trend traders. Everything I’ve read over the last few years supports that opinion and trend trading has been most successful out of what I’ve done.
But, it’s still an opinion.
If your definition of a, “pro,” trader is being able to make a consistent living at it, then I’m a pro too.
Saying, “most pro traders trade momentum, fact,” is simlply not true. There’s no possible way you could know that, for a fact.
Where’s your wikipedia entry?
The whole idea of catching a good breakout and pyramiding like crazy sounds really cool and wealth building. But in the end, isn’t it just about finding the highest probability setups, be it trending or range bound?
What Wikipedia is now a register of pro traders? :rolleyes:
My use of the word ‘pro’ was reserved for institutional trader… but am happy your making a living trading FX. Swing trading is fine but how to select the real high or low. Hmmm?
I dont pick tops or bottoms, thats for suckers. I get in with the trend and take some while its moving.
@ RMSTrader,
thanks for that post, it seems like a nice strategy.
you must be suffering from quite some sleepless nights!
as kpeterson is mentioning that one of the big mistakes he made in becoming a profitable trader was to neglect fundamentals.
what’s your approach towards this, are you avoiding news, or perhaps even using more in depth analysis?
furthermore I was wondering if you are using any indicators besides (e)ma crossovers to confirm the validity of potential entries.
thanks for the advise on being patient!
pt
But trend is an “illusion”…
:D:D:D
lol. Ahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh
pt -
I generally only get up at 2AM tues-thurs. I DO have a life.
I avoid news. I’ll trade 15-30 minutes AFTER a news release, once the effect on the market is known. But news trading is just too volatile for me. I tried it and had some big surprises!
As far in-depth fundamentals…I don’t really go there. I stay abreast of big things happening…like the sovereign debt crisis in Europe right now, or bad unemployment numbers coming out of the US. So…I READ the news, I just don’t trade the spikes or the retracements.
I do not use any other indicators expect a 5 period EMA and a 10 period EMA. I also track important S/R levels daily, weekly, yearly. I tried the RSI, Stochastics, MACD, etc…I just didn’t find them to help much except to clutter up my mind.
I’m learning to recognize and trade other technical patterns…but I’m not really there yet.
Cool, I see.
Since you’re trading the 6 majors it probably isn’t realistic anyway to go ‘in depth’.
I guess once you’re starting to get a feel of trading momentum, price action & patterns, you don’t really need any other stuff…
Being a newbie, i’m still very much interested in reading about indicators etc…but perhaps merely to learn about ways to look at the market.
I wouldn’t be surprised ending up not (or hardly) using indicators in the long run…
My idea for now is to continue reading and watching charts for a couple of months before starting to demo. I must say that a strategy such as yours is very appealing to me, and I might even start to demo with something similar.
Best!
pt -
I suggest you go read EVERYTHING this guy has to say…he’s the real deal and he’s just trying to give back to the FOREX community:
EDIT by RMSTrader: If you didn’t get the link, you didn’t get it.
MODERATORS: Please remove the link! I didn’t realize the policy…thanks!