Holy Grail found!!!

[DaxDestroyer]

I found the holy grail, at least parts of it :clap:

An ebook, really worth reading! I was impressed!

 

[JTrader]

Interesting story.

Correct me if i am wrong, but the ebook doesn't actually outline a system/strategy - it all seems to be about discipline, money management etc. judging by the pages i skim read through.

Anyhow, i've decided to stop looking for a holy grail that is any more holy than my current. Please refer to my signature for the reasons for this decision :smart:.

 

[shadowninja]

Buy low, sell high. And sell high, buy low.

 

[Trader333]

Buy low, sell high. And sell high, buy low

I think you will find that Buy High Sell Higher and Sell Low and Buy Back even lower has been a more successful approach. To do otherwise requires predicting the top or bottom of a market which I have yet to see being implemented with any success.


Paul

 

[timsk]

. . . To do otherwise requires predicting the top or bottom of a market which I have yet to see being implemented with any success.

Hi Paul,
The comment quoted implies that, somehow, this thread has managed to escape your attention:
http://www.trade2win.com/boards/first-steps/26947-making-money-trading.html

Tim.

 

[Trader333]

Tim,

I thought this thread was about support and resistance trading and not about predicting the top and bottom of the whole market which is somewhat different in my view.


Paul

 

[fibonelli]

A parable about the consequences of poor risk/reward and emotional trading.

 

[timsk]

Hi Paul,
Yeah, you're right in that S/R is a central characteristic of the methodology outlined in the thread. However, the traded set ups are based on a particular type of hammer (or 'Pin Bar' as Trader_Dante refers to them) which, as you are doubtless aware, are classic reversal signals often found at turning points in the market. Granted, his technique may not allow him to catch the absolute highs and lows of the market, but it certainly enables him to catch a good many intermediate swing highs and lows, regardless of whether or not they're with the prevailing trend or against it. Therefore, although T_D and his fans may not have an express objective to trade reversals, nonetheless, that is precisely what they end up doing - or trying to do - much of the time. If you spend 5 minutes looking at the numerous charts posted throughout the thread, you'll soon see what I mean. As for success, well, T_D has managed to land himself a job at a prop' firm based on the very approach that he details in his thread. And good on him, I say.
Tim.

 

[timsk]

I found the holy grail, at least parts of it :clap:
An ebook, really worth reading! I was impressed!

Hi DD,
Thanks for the link. I quite liked the little e-book and, indeed, Rob Booker's website. At face value, he looks like someone my late parents would have described as 'a good egg'! However, I do take issue with the 3rd point under '#3: Review Your Trading Now.' (page 23, folio seven). Mr. Booker states: "realise that every losing trade is a mistake". I don't accept that at all and, furthermore, I think it is counter productive to think this way. I subscribe whole heartedly to the view that losing trades can indeed be regarded as successful trades, if they are executed in accordance with your trading plan. Given that a 100% success rate is unachievable and that even the most wildly successful traders will have some losing trades, they aren't necessarily "mistakes", rather, just trades that didn't work out. Analyse them by all means and check to see if any mistakes were made, but don't right off the trade as a "mistake" simply because it was not profitable. By the same token, it's entirely possible to have profitable trades that weren't executed in accordance with one's trading plan and for these trades to be viewed as unsuccessful or as "mistakes". The point being that bad trading habits - "mistakes" - can creep into any trade, regardless of whether or not it is a winner or a loser. Sticking to the plan is what matters, not the outcome of any one individual trade.
Tim.

 

[Trader333]

Tim,

I am familiar with the use of hammers and shooting stars as a means to signify possible reversals and I have even written on here how they can be used with volume spikes to enter trades. However, this is still not the same as predicting a market top or bottom. These techniques can be used to enter a market that is maybe in an uptrend, has then reversed slightly and when a hammer has been observed used to enter a long trade. This could be seen just below an all time high (such as has recently been seen on EUR / USD) as a means to enter a Long trade but it is not the same as buying low and selling high in my view.


Paul

 

[timsk]

Hi Paul,
We will have to agree to disagree on this one I think. I conceded in my last post that Trader_Dante's set up won't catch the absolute market highs and lows but it does enable practitioners to catch a good many turning points in between and then ride the trend within the timeframe that they're trading. It's not perfect but, by my definition, it comes pretty close to the 'buying low and selling high' objective.
Tim.

 

[Trader333]

Tim,

I haven't seen anything in the thread that contradicts my understanding so I think you are right in that it is a difference of how this is viewed.


Paul

 

[DaxDestroyer]

Interesting story.

Correct me if i am wrong, but the ebook doesn't actually outline a system/strategy - it all seems to be about discipline, money management etc. judging by the pages i skim read through.

Anyhow, i've decided to stop looking for a holy grail that is any more holy than my current. Please refer to my signature for the reasons for this decision :smart:.

Yepp All about discipline

 

[DaxDestroyer]

I think you will find that Buy High Sell Higher and Sell Low and Buy Back even lower has been a more successful approach. To do otherwise requires predicting the top or bottom of a market which I have yet to see being implemented with any success.


Paul

I absolutely agree

 

[DaxDestroyer]

A parable about the consequences of poor risk/reward and emotional trading.

A good one, I think!

 

[DaxDestroyer]

Hi DD,
Thanks for the link. I quite liked the little e-book and, indeed, Rob Booker's website. At face value, he looks like someone my late parents would have described as 'a good egg'! However, I do take issue with the 3rd point under '#3: Review Your Trading Now.' (page 23, folio seven). Mr. Booker states: "realise that every losing trade is a mistake". I don't accept that at all and, furthermore, I think it is counter productive to think this way. I subscribe whole heartedly to the view that losing trades can indeed be regarded as successful trades, if they are executed in accordance with your trading plan. Given that a 100% success rate is unachievable and that even the most wildly successful traders will have some losing trades, they aren't necessarily "mistakes", rather, just trades that didn't work out. Analyse them by all means and check to see if any mistakes were made, but don't right off the trade as a "mistake" simply because it was not profitable. By the same token, it's entirely possible to have profitable trades that weren't executed in accordance with one's trading plan and for these trades to be viewed as unsuccessful or as "mistakes". The point being that bad trading habits - "mistakes" - can creep into any trade, regardless of whether or not it is a winner or a loser. Sticking to the plan is what matters, not the outcome of any one individual trade.
Tim.

Hi Tim! I fully agree with you! I believe, he himself would agree, but I like the story still very much. And it takes not much time away, to read it

 

[peto]

I found the holy grail, at least parts of it :clap:

An ebook, really worth reading! I was impressed!

Elsewhere in his website Rob Brooker claims that he enjoys writing. I believe that, because it is indeed very well written and I found the 'game' with the truckers amusing and thought provoking.

 

[black bear]

Good Post IMO Tim

Hi Paul,
The comment quoted implies that, somehow, this thread has managed to escape your attention:
http://www.trade2win.com/boards/first-steps/26947-making-money-trading.html

Tim.

Hi Tim

good post IMO

I would add ~

Its fine to pick tops and bottoms IMO so long as you do it in the short term time frame and you no you are attempting to pick a top or bottom and do not run a poor entry into a large loss against the obvious longer term trends.

An awareness of the medium time frame & the long time frame and their condition are required.

condition = ranging or trending & level at

time frames times five apart approx = month wk day or 4hr 1 hr 15 min

works for me anyway with a few simple S&R points marked on my charts, find enough low risk entries to keep me happy.

good trading in 2008 :clover:

Andy

 

[Mathemagician]

Hi Paul,
We will have to agree to disagree on this one I think. I conceded in my last post that Trader_Dante's set up won't catch the absolute market highs and lows but it does enable practitioners to catch a good many turning points in between and then ride the trend within the timeframe that they're trading. It's not perfect but, by my definition, it comes pretty close to the 'buying low and selling high' objective.
Tim.

I've not finished reading the entire thread just yet, but it is my impression so far that the method discussed attempts to catch bounces off of confluences of support/resistance levels, which are defined as price levels which have been both intermediate highs and intermediate lows in the relatively recent past. Given this, the technique discussed is generally going to be entering on retracements in longer-term trends, rather than timing the beginning/ending of these trends. Is this incorrect?

jj

 

[Rhody Trader]

However, I do take issue with the 3rd point under '#3: Review Your Trading Now.' (page 23, folio seven). Mr. Booker states: "realise that every losing trade is a mistake". I don't accept that at all and, furthermore, I think it is counter productive to think this way.

Yeah, that one jumped out at me too. Complete rubbish. What's more, it implies that all winning trades are good trades (without error) when we all know that sometimes we do something stupid but get lucky.