Wallstreet1928 Analysis & live calls on FTSE,DAX,S&P...aimed to help New traders
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From The Mind Of A Pro Trader - Convince Yourself Not To Buy It
By ITMS on July 31st, 2009 5:22pm Eastern Time
Over the years I have found myself being gradually refined, on my way from being an amateur to a pro trader. As time passes and I trade amongst beginners, I find more and more differences that stand out. This is the normal progression showing itself in any trader over the course of their trading career. From amateur to pro, each of us will learn a vast amount of rules and lessons. In fact, as a trader you will never cease to refine your technique and learn new lessons. I wish to convey one of the biggest differences and rules I have learned. It is quite possibly the most notable difference I see when discussing a trade with those less seasoned than I.
Throughout the day, I search literally hundreds of charts to try and isolate the best/optimal patterns and setups for a profitable trade. When I glance at a chart my mind is racing through hundreds of pattern, price and time setups to see if one fits a possible trade. The amateur will isolate a chart and the first thing they are thinking about is the profit. This is the key difference with seasoned trader. When I look at a possible trade, my eye is scouting the chat for how much I could lose. I look at the pattern, moving averages, time of day along with many other possible issues. I am looking at my max loss before I even think about the profit. Once I have isolated my max loss and risk of the trade, then I move on to the profitable side to see if the risk reward fits. This is extremely important to do as a pro trader is concerned not what they will make at first, but what they will not lose. Think about it like a parent. A parents eye is scouting a park for possible things their child could hurt themselves on before they let their child go play. Often times an amateur trader is too caught up in the emotion of making money that they will forget to examine the downside risk and focus purely on the upside. This is disastrous.
When I find a trade that looks promising, I do my best to convince myself NOT to buy it. I make myself give 3 reasons NOT to buy this chart. If I cannot come up with any, I may take the position. This mentality is opposite of an amateur. I know this, I used to be one.
By Gareth Soloway,
InTheMoneyStocks.com
The Leader In Market Technical Guidance
By ITMS on July 31st, 2009 5:22pm Eastern Time
Over the years I have found myself being gradually refined, on my way from being an amateur to a pro trader. As time passes and I trade amongst beginners, I find more and more differences that stand out. This is the normal progression showing itself in any trader over the course of their trading career. From amateur to pro, each of us will learn a vast amount of rules and lessons. In fact, as a trader you will never cease to refine your technique and learn new lessons. I wish to convey one of the biggest differences and rules I have learned. It is quite possibly the most notable difference I see when discussing a trade with those less seasoned than I.
Throughout the day, I search literally hundreds of charts to try and isolate the best/optimal patterns and setups for a profitable trade. When I glance at a chart my mind is racing through hundreds of pattern, price and time setups to see if one fits a possible trade. The amateur will isolate a chart and the first thing they are thinking about is the profit. This is the key difference with seasoned trader. When I look at a possible trade, my eye is scouting the chat for how much I could lose. I look at the pattern, moving averages, time of day along with many other possible issues. I am looking at my max loss before I even think about the profit. Once I have isolated my max loss and risk of the trade, then I move on to the profitable side to see if the risk reward fits. This is extremely important to do as a pro trader is concerned not what they will make at first, but what they will not lose. Think about it like a parent. A parents eye is scouting a park for possible things their child could hurt themselves on before they let their child go play. Often times an amateur trader is too caught up in the emotion of making money that they will forget to examine the downside risk and focus purely on the upside. This is disastrous.
When I find a trade that looks promising, I do my best to convince myself NOT to buy it. I make myself give 3 reasons NOT to buy this chart. If I cannot come up with any, I may take the position. This mentality is opposite of an amateur. I know this, I used to be one.
By Gareth Soloway,
InTheMoneyStocks.com
The Leader In Market Technical Guidance
wallstreet1928
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Thanks WS - I found the video very useful. Do you subscribe?
wallstreet1928
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YouTube - Weekend Technical Analysis - Stock Market Morphing....Alerting To A Possible Major Move Next Week
yes I subscribe to $49 per month
yes I subscribe to $49 per month
wallstreet1928
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3 month , 1hr chart
key level $68.8 .............
gap fill is $70...................$68.8 - $70..... big resistance area !!
> 68.8 ............next level 70..............and then 70 - 72.5 ...........long triggered with 30 point stop loss
< 68.8 .............next level 68 ........67.24 - 66 ...............short triggered with 30 point stop loss
It all depends on how the Dollar behaves
key level $68.8 .............
gap fill is $70...................$68.8 - $70..... big resistance area !!
> 68.8 ............next level 70..............and then 70 - 72.5 ...........long triggered with 30 point stop loss
< 68.8 .............next level 68 ........67.24 - 66 ...............short triggered with 30 point stop loss
It all depends on how the Dollar behaves
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wallstreet1928
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FTSE strategy for Monday 3rd August
1 week 10 min
key level 4590 .......................
> 4590 ............ I will look to go long as bias is on the upside with a target of 4620 ...........4630, 4640 trendline resistance. If we break the trend line then target is 4680 on the upside..........
< 4590 ............ break out of the channel which coincides with 200 MA @ 4590 ......I will then go short with profit target @ 4560- 4550 which exists on daily and hourly TF's. ....
1 week 10 min
key level 4590 .......................
> 4590 ............ I will look to go long as bias is on the upside with a target of 4620 ...........4630, 4640 trendline resistance. If we break the trend line then target is 4680 on the upside..........
< 4590 ............ break out of the channel which coincides with 200 MA @ 4590 ......I will then go short with profit target @ 4560- 4550 which exists on daily and hourly TF's. ....
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wallstreet1928
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wallstreet1928
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Dantists, Dentist...........
wher art thou Dentist?
Does anybody know where our good friend Dentist has gone?
I miss his box charts as it always gives you a different perspective .......
wher art thou Dentist?
Does anybody know where our good friend Dentist has gone?
I miss his box charts as it always gives you a different perspective .......
wallstreet1928
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SuddenDeath
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good morning everyone
wallstreet1928
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Prescient and articulate as always WS.
wallstreet1928
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bear flag violated and off we go to the races ...............
Looks like it but I'm staying out for a bit.
wallstreet1928
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OK chaps ............so what do have here then!
I was tempted to cover my long and short @ 4620 ......but I will now cover my long here @ 4635
35 points profit as bought @ 4600
I also shorted at the the open as well due to unjustified gap up and bagged 20 points then
I have made 150 points altogether on oil and FTSE.......
daily target hit and I am finished for the morning
well the real reason is my manager is coming @ 9am to do a review and I have to hide the trading computer...huh hum!!
kaisen
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Nice work ws.
I was short first thing, was 10pnts up, moved stop to BE and then it went up. So nothing lost but 10pnts not bagged. It was a difficult one as i was trying to gauge whether it would break 4590 and didnt have the luxury of confirmation.
Missed the long entry - would have been nice.
Are you shorting from here? If so is that a scalp play do you think it will move more than 10pnts?
Miners very strong today!
wallstreet1928
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yes I am very tempted to short it from here but i have to pack up my computer ........
just watch out for a potential bull flag scenario ......as next target could possibly be 4650 !!
if I were trading i would have gone short if market went below 4618 ..........
or i would go long if market bounced off 4620 confirming bull flag...I would go long around 4630 ...with 20 point stop for target of 4650
never presume the market will go in one direction ..............always have scenarios for both directions!!
preconceived scenarios = stop loss hit
LOL
It's as if you have a secret trading alias and have to hide the cape and leotards so as not to be suspected as being anything other than the mild mannered IT whizz!
I've learned so much from your calls and analysis on these morning moves WS, when price trends most surely at this time having those levels to make decisions clean as to direction leaves only the management of the trade to worry about (still a lot to worry about though!)
Likewise took the 4600 entry, but got out earlier at pivot 4420 - 2:1 ratio just makes the trade easier to manage while I learn what to look for.
And nice one on oil, shame I missed it,been watching that 68.8 level for soooo long
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