Best Thread Featured Quick reference for real trading profit. Tips that work
warm_machine
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options...as to what makes me, personally, take the decision to place a trade, I stick by my quote above. I simply will not make the trade if there's any doubt whatsoever. I know trading opportunities are limitless so if something doesn't add up on one particular trade, I will let it pass and wait for the next opportunity. YTD you can count on one hand the number of times I have lost yet I have made hundreds of trades.
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Options - you're after strategy, not sayings, is that right?
Correct Skim.
I wanted to see what techniques were in common, (or uncommon) use; what defines your buy and sell point; why take that particular trade etc, and what was actually working for people. Not a list of meaningful proverbs. These have been covered elsewhere.
I wanted to see what techniques were in common, (or uncommon) use; what defines your buy and sell point; why take that particular trade etc, and what was actually working for people. Not a list of meaningful proverbs. These have been covered elsewhere.
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Always use the first bar of the day as support/resistance when entering on the 2nd or 3rd bar.
There's a site I like to look at now and again http://www.hardrightedge.com/tw.htm . In Traders Wheel, look at the 20 Golden Rules for Traders. I printed them off. It's good to remind yourself sometimes. Especially if you've had a bad run. 
Mr. Charts
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That last one sounds quite good.
From David Floyd, a great US day trader:
"A pessimist is someone who is negative on a particular situation, but has no argument or reasons behind it. Secondly, a pessimist is someone who never accomplishes anything, simply bitches and moans."
Of course, the reverse applies to an optimist.
My interpretation?
Don't get a view, get real.
From David Floyd, a great US day trader:
"A pessimist is someone who is negative on a particular situation, but has no argument or reasons behind it. Secondly, a pessimist is someone who never accomplishes anything, simply bitches and moans."
Of course, the reverse applies to an optimist.
My interpretation?
Don't get a view, get real.
Mr. Charts
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David Floyd again:
"When unbridled buying/selling takes place, the chart is useless."
"When unbridled buying/selling takes place, the chart is useless."
I read a very good book recently, and there was a superb description of Day Trading.
"Day trading is like negotiating your way very slowly and methodically through a mine field littered with gold bullion. Each night when you are asleep someone goes into the minefield and moves the bullion around!
All that glisters is not......
Sean
Seancass
"Day trading is like negotiating your way very slowly and methodically through a mine field littered with gold bullion. Each night when you are asleep someone goes into the minefield and moves the bullion around!
All that glisters is not......
Sean
Seancass
fudgestain
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"Always try to trade in the direction of the underlying market.." Nobrainer
Well this does have the benefit of simplicity and helps remove fear; and the point I am going to make is not against those who operate winning methodologies following trends of a 'perceived' underlying market.
But the market (Dow) is a zero sum game with gyrations around a theoretical zero. This means there is not and can never be a very great difference between the sum of the upmoves and the sum of the down moves.
So take a perceived underlying uptrend for the day or week or whatever. Inevitably there is a sequence and choice of down moves as ripe as zits to be popped .. these can sometimes be quick and deep. Any play using only the perceived underlying trend .. leaves aside at least half of what the market has to offer. And nothing against that either. But this is aside from when an underlying trend is often in doubt or where there is argument as to whether the market is going up or down (no matter if its the expected trend for the day or week or longer).
Well this does have the benefit of simplicity and helps remove fear; and the point I am going to make is not against those who operate winning methodologies following trends of a 'perceived' underlying market.
But the market (Dow) is a zero sum game with gyrations around a theoretical zero. This means there is not and can never be a very great difference between the sum of the upmoves and the sum of the down moves.
So take a perceived underlying uptrend for the day or week or whatever. Inevitably there is a sequence and choice of down moves as ripe as zits to be popped .. these can sometimes be quick and deep. Any play using only the perceived underlying trend .. leaves aside at least half of what the market has to offer. And nothing against that either. But this is aside from when an underlying trend is often in doubt or where there is argument as to whether the market is going up or down (no matter if its the expected trend for the day or week or longer).
Strategies
Long term spread bets on Indices and commodities.
Using Sharescope: 10% stop loss ind. and 200 dma.
When tick goes through both in one direction -trade it.
Exit - I use a manual calc. : 1. Exiting a long I am looking at the last 20 ticks(days) and when the current tick is lowest low I sell and
2. If the tick crosses EITHER 200dma or 10% stop loss I exit.
Fairly simple and apart from adjusting the stop loss indicator down a bit - works on shares a well. Back tested on DOW / DAX and a mix of commodities and shares - about 75% success with the losses very small and the gains often in the 100s of points,
over a period of weeks or months.
As others say here - stick to the rules.
Given as info not advice.
Long term spread bets on Indices and commodities.
Using Sharescope: 10% stop loss ind. and 200 dma.
When tick goes through both in one direction -trade it.
Exit - I use a manual calc. : 1. Exiting a long I am looking at the last 20 ticks(days) and when the current tick is lowest low I sell and
2. If the tick crosses EITHER 200dma or 10% stop loss I exit.
Fairly simple and apart from adjusting the stop loss indicator down a bit - works on shares a well. Back tested on DOW / DAX and a mix of commodities and shares - about 75% success with the losses very small and the gains often in the 100s of points,
over a period of weeks or months.
As others say here - stick to the rules.
Given as info not advice.
I like the idea of the 200dma but please explain what u mean by going through both?Do u mean it crosses the 200dma and then crosses 10% stop loss line as appears on sharescope?
Also exiting on lowest low do u mean if the bars low is lower than the previous bars low u exit?Sorry to appear dim but its never easy explaining strategies etc.
Thanks
NeilM
Also exiting on lowest low do u mean if the bars low is lower than the previous bars low u exit?Sorry to appear dim but its never easy explaining strategies etc.
Thanks
NeilM
No probs - I was trying to keep it short.
I use EOD close ticks.
Presume we are in a long trade (buy):
The 200dma and the 10% stop loss lines will be lower than the tick. If it crosses EITHER then exit.
Also, I do a 20 day drawn line which I move each day to show me what the lowest point is over the last 20 days. This assumes using the 'Close' point on each daily tick. If the latest tick has a value less than any of the previous 20 days then exit.
This last one gets you out of the natural market swing sometimes before the other 2 indicators. (Maximising profits). It also often saves a non profit trade from actually losing.
Best way is to set up a chart of, say, DOW. 1 day ticks. and view the whole of the last 12 months.
Only indicators needed are 200dma and 10% stop loss.
As an aside I paid over £4000 to learn that in 2 different trading seminars. It does work tho' it ties your money up for a long time.
I use EOD close ticks.
Presume we are in a long trade (buy):
The 200dma and the 10% stop loss lines will be lower than the tick. If it crosses EITHER then exit.
Also, I do a 20 day drawn line which I move each day to show me what the lowest point is over the last 20 days. This assumes using the 'Close' point on each daily tick. If the latest tick has a value less than any of the previous 20 days then exit.
This last one gets you out of the natural market swing sometimes before the other 2 indicators. (Maximising profits). It also often saves a non profit trade from actually losing.
Best way is to set up a chart of, say, DOW. 1 day ticks. and view the whole of the last 12 months.
Only indicators needed are 200dma and 10% stop loss.
As an aside I paid over £4000 to learn that in 2 different trading seminars. It does work tho' it ties your money up for a long time.
