The Simplest Trading Method In The World

I've been encouraged to contribute something useful instead of just f***ing around the whole time. Very well, T2W person who shall remain nameless, prepare to be bored.

I'll post some of my trades in this thread, and answer any questions in the unlikely event that there are any, or any readers to post any. I thought this was best in the beginner section because honestly this stuff is so simple and basic that if you can spell "forex" you will be insulted after you have read it.

By the way, I am not selling anything, and I never will. If you catch me trying to do it, chuck me some of the colourful abuse I am so fond of dishing out to others. I'm starting this thread because I have been shamed into it by a very friendly and good-natured private message.

OK, enough dribbling. My entire trading method depends upon a very simple and radical concept. This is an understanding of what causes price to move.

You might have your own ideas about this and good for you if you do. Pretty much everything in trading is opinion in my opinion, so disagree all you want. Don't bother posting it though, because I don't give a fat rat's a$$ about your opinion, and I hope you have the good sense to feel the same way about mine.

So, what causes price to move? Interest rates? Economic data? Company reports? NFP (whatever that is)? NO.

None of those things can move price by a single pip. It is a physical impossibility, so get used to it.

Supply and demand cause price to move. That's it. Nothing else.

I don't care about fundamentals at all. Not one bit. Why should I? There are virtually no retail traders (including me) that are trading shares, currencies, futures or whatever. If you think you are, think again. 99% of you are not, regardless of whether you trade shares, currencies, futures or whatever. You are trading something else, and it will be of enormous benefit to you if you can work out what you are really trading.

All you need to trade successfully is patience, discipline and the knowledge that supply and demand cause price to move. EVERYTHING that I use stems from this one simple fact.

It helps if you can understand that everything on your chart is an illusion, and depends entirely on your perspective, with one exception. That exception is price. Everything else, all the TA and PA and straight and squiggly lines in the world, all of it is at best total and utter bullsh1t. It helps if you understand this, but it is not essential.

Next post will show a trade that I took today. I warn you now that this one, like all the others that will follow it, is soul-crushingly dull and unbelievably simple.

Pazienza said:

I've been encouraged to contribute something useful instead of just f***ing around the whole time. Very well, T2W person who shall remain nameless, prepare to be bored.

I'll post some of my trades in this thread, and answer any questions in the unlikely event that there are any, or any readers to post any. I thought this was best in the beginner section because honestly this stuff is so simple and basic that if you can spell "forex" you will be insulted after you have read it.

By the way, I am not selling anything, and I never will. If you catch me trying to do it, chuck me some of the colourful abuse I am so fond of dishing out to others. I'm starting this thread because I have been shamed into it by a very friendly and good-natured private message.

OK, enough dribbling. My entire trading method depends upon a very simple and radical concept. This is an understanding of what causes price to move.

You might have your own ideas about this and good for you if you do. Pretty much everything in trading is opinion in my opinion, so disagree all you want. Don't bother posting it though, because I don't give a fat rat's a$$ about your opinion, and I hope you have the good sense to feel the same way about mine.

So, what causes price to move? Interest rates? Economic data? Company reports? NFP (whatever that is)? NO.

None of those things can move price by a single pip. It is a physical impossibility, so get used to it.

Supply and demand cause price to move. That's it. Nothing else.

I don't care about fundamentals at all. Not one bit. Why should I? There are virtually no retail traders (including me) that are trading shares, currencies, futures or whatever. If you think you are, think again. 99% of you are not, regardless of whether you trade shares, currencies, futures or whatever. You are trading something else, and it will be of enormous benefit to you if you can work out what you are really trading.

All you need to trade successfully is patience, discipline and the knowledge that supply and demand cause price to move. EVERYTHING that I use stems from this one simple fact.

It helps if you can understand that everything on your chart is an illusion, and depends entirely on your perspective, with one exception. That exception is price. Everything else, all the TA and PA and straight and squiggly lines in the world, all of it is at best total and utter bullsh1t. It helps if you understand this, but it is not essential.

Next post will show a trade that I took today. I warn you now that this one, like all the others that will follow it, is soul-crushingly dull and unbelievably simple.

Click to expand...

Kinell:| Shining a light into dark corners again !
Sadly many will still blunder about in the dark looking for more complicated approaches including reading the Runes

Look at the chart. See the thick line? This is 2300, which on this instrument (a bucket shop version of NQ) is a big round number. These are important. If you disagree, you are an a$$hole.

Just a quick detour. There is a member of this site who has something like "If I get to 3500 posts, somebody shoot me" as his signature. He is not asking for a bullet at 3507 posts, or 3491 posts. You meet somebody at about 3, or 6.30, or around 1. You never meet people at 17.27. Every man and his dog knows it when it's two bucks to the pound. Do you think people are going to know about it if the pound-rouble and the euro-rouble get to parity? Yes. Do you think your average punter cares if it's 1.2765 to the euro? No, they don't.

That's the last discussion of round numbers. Look at the chart and see how price reacts at 2300. If you still don't get it, try looking the chart with your f***ing eyes open.

Yeah but I reckon MR will break through post resistance of 3500 and move swiftly to 4000 before considering topping himself.

So what's with 2300 - is it some multiple of lunar cycles or something to do with gravity?

Following on from Post 3:

This is the same chart, just zoomed in a bit.

See how price approaches 2300, and then gets beaten down every time it hits it? This is because selling overwhelms buying at that point. Now see how price eventually pops through? This is because buying overwhelms selling. Something has changed, and remember, we don't give a f*** what. All we care about is that the last time price was here, people wanted to buy it more than they wanted to sell it.

Notice also how clear and how strong the picture is. Is it obvious? Does it jump out and you and smack you in the chops with its dangleberries? That's what you look for. Not so-so, maybe, I'll have to think it over. If it's not screaming, it doesn't count.

Now price moves up and stops - at a minor round number. I've said enough about round numbers. Behead those who insult round numbers. That is my last word on the subject.

What do you expect to happen now that price is drifting down to 2300? Learn this and learn this good: it doesn't matter what you expect. The market does not give a flying f*** what you expect.

Moving on, what happens is we get a pin bar. If you don't know what one of these is, do a bit of reading - it's put itself about more than Jordan's mucky fandango.

A pin bar is meaningless by the way. All it shows is that price moved down sharply, and was rejected up sharply. In this case from a big round number. Which is clear as day, recently broken resistance, and which is now acting as support.

Look at what happened when the top of the pin broke (this is where I put my entry). Can you honestly tell me that there is a gladder sight than a trade that breaks that quick and that strong? No, you can't. It's certainly better looking than Jordan's mucky fandango.

There is no way you could not make money on this trade. Not break even, actual profit. No way.

It broke so fast I didn't get my take profit order in quickly enough. It would have gone near those prior highs, but in the end I closed out manually for about 1.5R. I closed because I didn't like the lack of space (ask me if you want this explaining), and because the bar could have been better. The form was good, but I like to see them test lower, and it's a little on the small side. Some people scoff at things like that (the bar is arbitrary etc) and they are absolutely right. It just happens to be something that's important to me. The reason is good bars give me easy trades and profit, and poor bars give me b0llock ache and loss.

That's it. That's my method. That is all I do. I wait for set ups like this, I enter on the break, stop below the bar (or low down on it if it's a monster), I reduce my risk quickly, and I take profit.

This is a very profitable and extremely difficult way to trade. It is in fact incredibly hard and newbies trying it will get slaughtered, especially on small timeframes or fast tick charts. It is the simplest trading method in the world and it takes a lot of experience.

I'll post some more trades as they come along - under normal conditions I'd expect a few a week, mostly off NQ and YM, although I follow a few other things as well. All my trades are variations on the same thing. A location, a story, and a price action trigger. That's it.

robster970 said:

Yeah but I reckon MR will break through post resistance of 3500 and move swiftly to 4000 before considering topping himself.

So what's with 2300 - is it some multiple of lunar cycles or something to do with gravity?

Click to expand...

Nothing whatever, it's just a "hundred" number. There are a lot of orders around these numbers. Or whatever significance you want to put on it, it doesn't matter. Call it anything you want. The point is you see how price reacts there. What you do or think about it is up to you.

It's too late for MR, they've been paid half in advance, and there's already a lime pit dug.

I wasn't being serious dude - seems your serious post has made you all serious 'n' stuff.

Interesting you only trade strong rejections of important levels.

robster970 said:

I wasn't being serious dude - seems your serious post has made you all serious 'n' stuff.

Click to expand...

Sorry, I'm trying to be on this thread. But I'll make it up to you - I'll go and take the p1ss for a bit somewhere else.

I'll pipe down on your serious thread.

The most important thing about trading this way is to be patient and to be choosy. You do not need many trades to make a lot of money. You can have low drawdowns, low stress trades that go into profit quickly, you can have the world, chico, and everything in it.

The way to do this is to remember that you are trading the simplest way possible. Ignore anything that isn't exceptional. Only take trades that are screaming at you to trade them. Anything else, just ignore it. And ignore it when it goes on to make 5R. It doesn't matter.

If the story isn't great, just ignore it and wait.

robster970 said:

I'll pipe down on your serious thread.

Click to expand...

Don't do that - unless you're scared biyatch? Is that it? Too much of a pu$$y to lulz my thread?

That's it for now. I'll keep posting new trades as they come up, losers as well as winners. Most will obviously involve a bit of trade management, so hopefully I'll be able to show that on the next trade (again, it's so simple you will want come round here with an axe. It also works pretty well).

For now, Kelly Brook and her delicious jelabas:

thats a better figure to go long off than your bloody line fonz

DashRiprock said:

thats a better figure to go long off than your bloody line fonz

Click to expand...

Thank you for your comment. I have thought long and hard about my reply:

Pazienza said:

Don't do that - unless you're scared biyatch? Is that it? Too much of a pu$$y to lulz my thread?

Click to expand...

robster370 i can see why you didnt enter the trading desk comeptition

I probably shouldn't have called you a biyatch, Rob.

I promise I won't do that again.

Incidentally, I just switched NQ and YM charts to 15m and those kind of trades do come up quite a bit - not necessarily on round numbers but the frequency which you can see strong impulse is enough to probably just trade this scenario all month of ES, NQ and YM.

robster970 said:

I promise I won't do that again.

Incidentally, I just switched NQ and YM charts to 15m and those kind of trades do come up quite a bit - not necessarily on round numbers but the frequency which you can see strong impulse is enough to probably just trade this scenario all month of ES, NQ and YM.

Click to expand...

Yes, there's plenty to keep you busy. I find YM and NQ tend to run a lot smoother than ES, which I like because I reduce risk quite aggressively.

I use 5m as well, although on that I'm extra-choosy. But if you can wait for the really good ones (my favourite is a big outside bar engulfing a good range at a key location) you get cracking trades - an early entry, a quick move, quick to break even, and a fairly small stop so a big position size. You need to be patient though.

Round numbers are just something I happen to like - 10s and 100s on NQ, 100s and 1000s on YM etc. But you can use whatever you want - pivot points, support and resistance price flips, any area that has significance, where you think there might be interest. Just wait for a nice trigger and away you go .

Pazienza said:

I use 5m as well, although on that I'm extra-choosy. But if you can wait for the really good ones (my favourite is a big outside bar engulfing a good range at a key location) you get cracking trades - an early entry, a quick move, quick to break even, and a fairly small stop so a big position size. You need to be patient though.

Click to expand...

They don't pop up too often on the 3 US indices do they.........

Good thread btw, especially the picture of the fat bird.