The Simplest Trading Method In The World

[Pazienza]

can i post a picture now?

 

[wackypete2]

In accordance with the new rule:

I wanted to go long on that, but she said I'd only get stopped out

Peter

 

[maggieo]

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.

I'm new here, but do go on. You have my attention1

 

[maggieo]

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.

Okay, I have my ___________eye open and no, I don't get it. Now don't yell at me. Remeber I'm a new girl here.

 

[robster970]

Okay, I have my ___________eye open and no, I don't get it. Now don't yell at me. Remeber I'm a new girl here.

How much screen time do you have watching price unfold in front of you?

 

[arabianights]

Okay, I have my ___________eye open and no, I don't get it. Now don't yell at me. Remeber I'm a new girl here.

what's a girl?

 

[DashRiprock]

robster/everyone else

i know its not about round numbers or candlesticks so if you tell me to take it off and delete the post i will ok? but look im posting what could be an open-test-drive now in t notes futures

open at top left of grey box, then auction down to about ydays high volume area where the yellow line is, now we are going sideways so i think we could next trend up towards the two yellow lones above that are ydays high and another high volume area.

obviously we could go down as well but this is what one can look like before it has happend

 

[scose-no-doubt]

@ arabian

mincer

 

[arabianights]

moohamadeean

 

[robster970]

what's a girl?

Like a boy but face up.

 

[Pazienza]

I took a couple today. The first was a fairly speculative one early in the day - it went nowhere and I closed it a couple of points in profit (I count small winners like that as break even trades).

The second one was similar in a way - made around 0.16 R. I closed it because it was too close to bother moving to break even, but I would have to be away and so didn't want to leave it unattended. It wasn't going anywhere in any case.

A slow start this month, like last, although it least it is positive.

 

[DashRiprock]

robster/everyone else

i know its not about round numbers or candlesticks so if you tell me to take it off and delete the post i will ok? but look im posting what could be an open-test-drive now in t notes futures

open at top left of grey box, then auction down to about ydays high volume area where the yellow line is, now we are going sideways so i think we could next trend up towards the two yellow lones above that are ydays high and another high volume area.

obviously we could go down as well but this is what one can look like before it has happend

ok so i asked fonz and he said it was ok if i posted a follow up. as well I was looking at the es and there were good things to blog about there.

so, the picture underneath is a heiken ashi chart of the whole of the trading day. it can be hard to look because of the gaps but the box before i posted pretty much goes up the the first white candle that is left of my box... so the one that is next to the first blue one :?

anyway I was saying then about an open-test-drive to the yellow lines at the top and i would feel good about longs.

the left grey box on this graph is from when i was "OK for longs"to "NO dont do anything". I said somewhere else that the actiual entry and exit from my tradesd are all done on DOM?tape so I wasnt long from open to close of the box, it was just when I was ok for trading longs. sometimes from the DOM you can make sometimes 2 x the box range and sometime you oinly buy but lose money. meh!

anyway the things about this are were that from when I said possible open-test-drive it was pretty much one way action until we got to the prior highs, when things reversed and settled back into chop. so it wasnt up to the yellow line but right after i posted the 1st graph you could scalp for longs only and make profits. this is my strategy, i am not like "entry here stop here target here and leave it", my strategy is about saying OK for longs or shorts and then reading the tape for entry and exit.

as well, you can see the 2 red lines like a channel? well I was watching es too and these BOTH were at the time. making what i call balance either side of a high volume area. at these times i know some traders like to trade the range like a value area but i dont like it so i dont trade, i take a rest at my desk or something.

the second grey box in the graph is really just to show that it supported at the present low/ prior high value area and resisted at the high from before. I stopped trading once it went into the range but it was because of some auction results. I just show it for ****s and giggles.

 

[Pazienza]

Today's snap.

A bona fide fineosaur who demands that you shove your face in there and go: flubalubbafulbalub.

 

[DashRiprock]

so i was on earlier like i was watching the es too? well here are the graohs.

the first one was taken because i thought it was going to be the same as it was yesterday - the ibr is in the box and it was up to ydays high volume area and so it wass all down from here. i was as well biased because i was bullish on t notes so it just goes to show look at what your trading only and dont try to make money in coconuts from looking at bananas!

anyway, there is interesting things about this graphs. if you can see on the first one, there is building hogh volume area right on ydays hogh volume area (with balancing either side like range trading)... anyway so then it went up not down but turned at another of ydays high volume areas (the third line upo from bottom) before going back into range area and then up again, maybe there is more but i wasnt taking screen****s every 5 mins so cant say.

but, after all that, look at the high volume area from the first graph. it is

high vlume from yesterday
high volume at forst graph
high volume in all of session


:smart:

 

[robster970]

I am particularly enjoying this thread for both it's informative and lascivious content. Good work boys. Didn't take any trades yesterday so nothing to post up.

 

[DashRiprock]

 

[DashRiprock]

ok because i posted a girl I will do some more graphs out of trading.

the first one is showing where i am putting my lines in before the session starts - so, they go at the high and the low, and at any high volume areas. (it looks loke the high and low are off a bit but thts because its a line graph done on the close. with candles or bars its hard to see the volume profile so i did lines just to show you. normally i use heiken ashi candles, and the average is EMA(10) of h+L / 2).

so for todays session, i will be paying attention to the three yellow lines and maybe onight highs or lows depending on where they are. for yesterdays session i was looking at the purple lines, and so on.

the second graph shows the typical action where i am looking for some chop/balance and a new trend to start. you can see that from after the close it went right up to the last session highs, and there is also a high volume area there shown with the blue line. its not on the other graph because this blue line is for the onight session as well where the other lines is just RTH.

anyway look along the blue line you can see from left to right a high volume area and then the high in RTH and now the volume is starting to build up around this line... volumes building in a sideways action are a sign for me to be ready for some balance and then a new trend, specially when it is at another high volume area or a high or low.

anyway i thought i would say so if you want to look at what i am looking at on the ES you can fix your charts like it

 

[wackypete2]

I am particularly enjoying this thread for both it's informative and lascivious content. Good work boys. Didn't take any trades yesterday so nothing to post up.

err...take a good look at the pics here...surely something will post up.

Peter

 

[robster970]

err...take a good look at the pics here...surely something will post up.

Peter

I thought it was one chart, one bikini shot - or is it just free form?

 

[Pazienza]

I am particularly enjoying this thread for both it's informative and lascivious content. Good work boys. Didn't take any trades yesterday so nothing to post up.

No problem Rob. I'm not trading today as I'm out and about, start again on Monday.

Again, anyone that wants to post their charts or discuss ideas is very welcome.