It is very difficult to mentor people as most think it is a lark and I will magically transform them into the finest of traders. Most of those who have asked me are the laziest people on this green Earth and always has the first million spent that they believe they will make in first year. Some have been at trading couple years and have done hardly any study., let alone learn to program or even buy software like Multi-charts, Ninja or Price lab for programming. It has gotten increasingly more difficult to learn how to trade as one is often trading against computer trading. You have to learn to keep excellent stats almost like in baseball, I think it be far easier to get a degree at Brown than to now learn how to trade. It takes a min of two years and 3 hours each day of yanking at one's student, going over homework, teaching them each one minute bar has to have a defined name that they much backtest to discover, so you are forcing them to do what they believe are trivial assignments but are needed to get to levels so beyond the average trader. You want to make money, you work eighteen hours a day, everyday for two years, you give up your life in hopes that having a person look over your shoulder to get it right and that still doesn't mean you will succeed as you can then mess it up cause you develop mental issues. Yep, trading will bring out for many deep seated bullshit from your childhood you never knew existed till you started this, the brain keeps saying what a loser you are cause you having some many issues of pulling the trigger or taking losses and be happy about it. And you have to be able to find a mentor willing to put together 3 years of monthly statements to show he has already done the impossible. Days of people helping are really going away as you have to become so much more than a person who looks at bar chart and saying I am going in here if you are day trading. A good mentor will show you direction, tell you what to study, give assignments, help you develop your own systems so you know how to adjust them, but people too lazy now, they want systems X crosses Y, it is so not this way, you have to memorize many patterns that don't work so you know when not to trade which is more important that knowing when to trade. And you have to sim trade till you have done a one lot and taken that account 1000% higher, then you are ready for real time, but they want to open up account as they have a whooping $1,000 bucks and start going at it. Bait. After 30 years, I no longer day trade 75 minutes, I trade twenty minutes seeking two points in ES, have automation going, and I just design debit credit and covered call options systems, my new luv. Back test- Back test-Back test, history repeats itself. Here a cute little system and you can back test till cows come home.
@Handle123 In that chart you have posted: I see two green moving averages, one red and one blue. Is the blue EMA the 9 EMA? and the red one the 18? Interesting that you chose the 9 and 18 EMA particularly. Thank You Sir.
One is 17/18 and other is 8/9 to just thicken up averages. Why is it interesting to you? One needs to be able to quickly identify price action on one minute bars, knowing patterns that show support/resistance on price and hourly trendlines tells you where not to take signals as PRICE is screaming at you not to take the signals, or reducing time stops, this is more important than taking iffy trades. Loses on losing trades normally are greater than winning trades when you consider protective stops are often greater than targets and when you add fees and possible slippage, it is imperative to trade as close to perfect as possible and reducing trades is one of the ways. Price very often gives hints on when trades are not going to work but you have study price many many hours to see comparisons of individual bars like a spinning top at swing length of a particular market, that alone would stop me from taking any more trend trades for like ten minutes OR wait for deeper retracement to next dollar. Studying enough charts, you learn that each instrument is a little different, you make your own rules of what you have for a rules of triple support or resistance, differences in the price highs/lows themselves have to have a rule, rules on how many ticks past a previous pivot high is considered time for retracement or reversal depending on swing length OR is number of ticks beyond previous pivot a continuation of trend even if at average swing length. Knowledgeable Trading is the difference between breakeven trader and 1%. More you understand price structure, you distance yourself from those who only rely on indicators and automation trading. Rules or knowledge of Price Action is imperative to become a good trader, but the "system" itself should be very easy and "adjustable", cause if volatility increases, you delay one dollar entries to two dollars or volatility decreases can lower to fifty cents. Best day trading systems have few rules for every entry signal but many rules for Price Action of before possible of taking signal or what happens after you in trade. Four points in seven minutes, why have to sit there any longer.
Hi @Handle123 , Sorry for the delay in my reply, busy with life. Just found it interesting since most traders generally use the 10/20/50/200 ema. btw what is the reason for thickening up the averages? Thank You, IWDI (I am deeply studying your 9/18 system, and will backtest it)
LOL, I am 58yo and looking at charts for 37 years so vision not as good as it use to be so I thicken up lines. Am sure at least a hundred traders have different versions of this method, mine is different as shows when NOT to take signals and uses time stops. Being that entry is beyond the 18sma, most likely use different moving averages will offer same entries.
"37 years" that's a huge experience. You have more experience than my whole age. I think you will be earning huge bucks from trading. Mind sharing some of your best trading systems ?
Trading systems are a part of overall trading plan and trading plans can take as far as couple years to teach someone how to make it and keep adapting to more knowledge if they will get the concepts at all. Even with help from mentors, 100% still on the person wanting to work so incredible hard to learn and most of all memorize and recall much in seconds. Good mentors show direction, but still up to the individual to make it their's based on personality. Systems are added but usually most just have extensions to Trading plans and most of Trading plans are risk management.
Mentors just give you guidance , teach you rules for trading. It is not necessary all of them are applicable in certain market when you are trading. All is up to your skill and practice that will do good trading for you . No one will make profits for you . I do not depend on mentors I prefer to learn my self.