Ratman's beginner's set up and analysis

[Black Swan]

Trading short-term charts doesn't necessarily mean scalping; I use a 3min chart as a trigger and often hold trades for hours.... If you know what you're doing the shorter-term charts are no more of a "gamble" than the longer-term ones.

totally agree, 3/5mins is all you need in order to pull the trigger and similar thinking on strategy for holding.

 

[Black Swan]

Hey Guys!

I think Aaron's levels are good because he uses the closing prices (ie the line charts) for his levels. There are many who will argue till they are blue in the face as to which method is correct but I prefer using a line chart to plot my levels. Try it. City types used to use line charts before candles/bars (so I'm told) so the old and experienced traders are probably still using a line chart for plotting?!

Then plot your fibs from candle swings and you'll usually find they match up a lot tighter than using the wick. After all ,my view is that the wick shows rejection. The other way of course, is just to use the candle body bottoms/top. Try it and it might fit your style??
Grim

nothing wrong with line charts IMHO.

 

[Claudia123]

everyone trades different - i traded the short term and lost. now trade mainly 1hr tf on fx and do good.

 

[Charlton]

Im learning candles now... I've barred myself from lines till I can read candles.

any opinions?

Watch the candles develop in real-time. Remember that a candle is simply a representation of price over a fixed period of time. Price action, on the other hand is continuous. Start your candle at a different point in time and it will look different.

Candles represent merely 4 points in time - price at open, price at close, highest price and lowest price during the period in question. By following real-time price action and the development of the candle you get a feeling for how long price action remains at each level within the candle during the timeframe of the candle and how quickly different levels are reached i.e momentum.

These things can tell you alot that a finished and fixed candle cannot, so just bear this in mind when you attempt to perform retrospective analysis of candles and their patterns.

Charlton

 

[graemenash]

Graeme,
You must look at a higher TF for your set-ups if you hold them for that long, right? The 3min is just your trigger?
Nicola

Not quite I look at a 3min chart for my setups, but I use 15m up to daily charts to judge which setups I should be looking for. Financial markets are wheels within wheels regardless of which timeframe you use as a trigger.

 

[leovirgo]

Im learning candles now... I've barred myself from lines till I can read candles.

Isn't it the other way round? Knowing SR levels first and then read PA at these levels with candles etc.

 

[grimweasel]

Granted on the lower TFs guys - it really is what suits the trader. You need to match your personality to a TF I think. It's no good trading weekly TFs if you know you are hyperactive and lack patience. Likewise, if you know you take a long time to make decisions, you like to evaluate all your purchases etc then I'd say the 5m TF is not for you!!
Like I said, and you all rightly did; you need to find what's right for you.
If you are starting out I'd suggest giving your decision making process a little more time and at least start on 1hr and no lower??

 

[ceydababy]

I think maybe that you should go off and do your own homework Aaron. Not because I'm being a cnut but I do agree with new trader. Random people posting graphs with lines all over them isn't gonna help you out. If you've only been trading a few weeks you aren't gonna have the anti bollox filter and trust me there is some real smelly stuff on here.

Also trading is pretty personal what works for some, 99% of the time doesn't work for others.

 

[megamuel]

Typical, all the old school members ganging up on the newbie. Aaron here is a tip for you - read some books, study LOTS of charts, and just use this site for making jokes, reading jokes, and taking the p1ss. Good luck with your trading.

Sam.

 

[grimweasel]

Typical, all the old school members ganging up on the newbie. Aaron here is a tip for you - read some books, study LOTS of charts, and just use this site for making jokes, reading jokes, and taking the p1ss. Good luck with your trading.

Sam.

If you read 2 books to get started make sure they are:

Trading in the Zone - Mark Douglas
Come into my Trading Room - By Dr Elder

But remember - sometimes the less you know (or think you know) the more profitable you can become.

Take a look at Strat's thread over on ForexFactory. Just learn about PA, SR levels, Fibs and TLs. It's all you need to trade - don't fall into the trap of trying all the indicators, systems etc - RAW PA is where trading is at in my view. Learn that first and all the other doors can open in slow time - you'll probably learn that you don't need them!!

 

[Technically Fundamental]

Eur/usd

any ideas guys

 

[elitejets]

any ideas guys

We are sitting on a SR line here at 1.3530 ish and it needs to break.
I would draw some more SR lines on my chart and as it breaks down through each one trade it and then wait for price action to see where we go next.
Getting the SR lines / areas for the time frame you are trading and the above up helps me.
Remember everyone trades differently and this is just how I see it.
Nicola

 

[Technically Fundamental]

methinks candles say its safe

but them i'm only trading demo...

 

[Technically Fundamental]

I just put 10k into my demo account with that short.

 

[superspurs]

we can all draw trendlines,but trading is mainly about managing risk.so when you think you have a good entry,expect to lose until the market proves you right.so therefore when you enter try to lose as little as possible,and size your position appropriately.

 

[Technically Fundamental]

we can all draw trendlines,but trading is mainly about managing risk.so when you think you have a good entry,expect to lose until the market proves you right.so therefore when you enter try to lose as little as possible,and size your position appropriately.

I need to work on placing stops really.

Sometimes if I make a wrong call my losses are larger than they should be because my stops are shizer and I don't exit in case it turns around... attatched to the trade.

Do any of you exit a trade to minimise losses if it doesnt pan out the way you planned?

 

[Paul71]

I need to work on placing stops really.

Sometimes if I make a wrong call my losses are larger than they should be because my stops are shizer and I don't exit in case it turns around... attatched to the trade.

Do any of you exit a trade to minimise losses if it doesnt pan out the way you planned?

I'll try and make up for taking the pee last night:cheesy:


3 parts to a trade, entry, target and stop. Stops are arguably the hardest part of the whole to get to grips with, for a beginner. Try this, work on your market direction, get an eye for this and don't bother with stops for now


Some will not agree with this, but some also do not agree with the phrase....


"Everything is known in advance"




Take care.

 

[Technically Fundamental]

Merci
I've already trades without stops... I was more profitable lol. I was using manual stops and minimising losses during fluxuations.

I have entry and targets but I need to work on stops. Gonna buy a few books when I find out which ones are worth their salt.


I've called gold, UK banks (see HSBC) and china this week. Lets see what macro-magic I can work next week.

I don't know why people say you cant trade the news.

 

[Black Swan]

Merci
I've already trades without stops... I was more profitable lol. I was using manual stops and minimising losses during fluxuations.

I have entry and targets but I need to work on stops. Gonna buy a few books when I find out which ones are worth their salt.


I've called gold, UK banks (see HSBC) and china this week. Lets see what macro-magic I can work next week.

I don't know why people say you cant trade the news.

:-0

you are joking right? Trade the news? OK then here's a task for you; try and figure out the misdirection/deception/collusion involved with OPEC before, during and after its meetings.
Never trade the news, be v.careful of even trading the reaction to the news.

 

[foredog]

I need to work on placing stops really.

Sometimes if I make a wrong call my losses are larger than they should be because my stops are shizer and I don't exit in case it turns around... attatched to the trade.

Do any of you exit a trade to minimise losses if it doesnt pan out the way you planned?

Yes sometimes i exit early, sometimes it's right, sometimes wrong.

Remember there's always another trade but not another account.

Before you enter a trade, think, where will i enter, where will my stop be, how many points/ pips is that so how much can i trade.

Then if it all works then trade.

I often trade inside bars so if the stock is down on the day and an IB forms i will trade it if it goes down further, i will enter a few ticks below the IB and my stop is a few ticks above, if it goes below then bounces back up chances are it ain't going down further, end of story.

You win some you lose some, but maybe thats a bad way to think. Income and expenditure.


Small expense, big income....