The Sweet Sixteen of AHG #1) Discipline at all times. Your most important rule, make no mistake, nothing surpasses this. #2) The Monster. Never ever average down, ever. Scaling in but not surpassing your original intended size and/or risk is ok. Make sure you know the difference. #3) Homework. Make sure you do your homework. Before the day begins you should have identified any major pivots, trendlines on anchor and daily charts. Especially the anchor chart. #4) Non optimal AHG days. Be extremely careful in days like FOMC, OEX or Holidays where the market is open. #5) Reversals. Do not call reversals unless a reversal formation forms and confirms around a major pivot or trendline support/resistance. Tattoo this on your forehead. #6) The trend is your friend and lack of trend your enemy. Do not ever go against the trend unless you have concrete reasons for doing so. ie. Major Pivot, Major Reversal Confirmed Formation. Learn to stay on the sidelines when the trend is not apparent ie. Choppy #7) Risk vs Reward. When trading you must deal with commissions, slippage, bad luck, bad calls. In order to compensate for this your reward must surpass your risk on all trades in AHG, no exceptions. #8) Control losses, and allow winners to run, this is imperative for consistent profitable trading. #9) Under no circumstances must you allow big losses, ever. Take your small losses like a responsible trader. It's not about accuracy. it's not about being right, it's about making money. Do not be afraid of small losses. #10) React to price, don't predict, let price guide you, don't ever try to guide price. #11) No bias. Begin the day with absolutely no bias, completely neutral. Ignore news, yesterday news or what your momma told you. #12) Enter wisely: New trades should be initiated in critical areas of support or resistance, this prevents noise from interfering with your price action analysis. It also eliminates, somewhat, the possibility of questioning the play - it should work or it wont, no second guessing. #13) Overleverage. This is completely unacceptable. Trade a size that is adequate to your trading capital. You must survive to trade another day to make it. No setup is worthy of overleverage, not even one. We fill our glasses with drops not splashes. You want to grow, do it slowly, preservation of capital above all. #14) Patience. It really is a virtue in trading. Patience for waiting for your best setups and patience for letting them reach your well planned targets. This is the cure for overtrading., If you could wait 8 hours a day to get paid little money at your past or present job you can surely do so in daytrading. #15) Winning attitude. A positive mental attitude is essential to succeeding over the long haul, and my definition of a winning attitude is a positive expectancy from our efforts. Take a moment before the trading day begins to see yourself making all the right decisions, waiting for the market to come to you, striking at the correct moment, etc. It's a good way to increase your focus and get into the 'zone'. #16) Determination: Pick a strategy, study it, analyze it, and apply it. Don't go switching your trading plan every week in hopes of reaching perfection, you'll become a master of none and end up nowhere and frustrated. It was a pleasure seeing you all again. Hail 2112 again! GD mods Anek
Anek, great to see your post. Thanks for sharing key points!!!! Are you still posting on the IRC channel? All the best!
Anek--truly one of the greatest threads on ET of all time. Thank you a thousand times for your effort. Ansare
Thanks Anek, Hope to see more posts in the future. Thanks for recommending Suri's book. I would of never found it without you mentioning it. The concept of Ross hook is also very interesting.
A few people have indicated interest in an irc channel to discuss AHG 1, and the introductory / fundamental aspects of AHG. I quickly asked Anek if he would be okay with us starting an 'ahg1' channel to discuss the model that this thread has set up, and he said that it would be okay. Being a relative newcomer to AHG (~6 weeks), I hope to improve by interacting with other practitioners of AHG myself. With that then, we now have a #ahg1 channel on Othernet, named so because it will deal with the first phase of the model. Couple notes: 1 - My next post will include connection instructions 2 - We can connect to the channel now but we should properly register it. In order to do so we need 3 more people that have registered nicknames at Othernet. There is a webpage on their site that I will fill out, passing on the nickname of these 3 supporters and then we are set. Please PM me here or leave me a message in #ahg1 if you care to support the registration. Alright cheers, let's see how this goes
YoungOne has kindly given mIRC instructions at this post here: http://elitetrader.com/vb/showthread.php?s=&postid=1717183&highlight=othernet#post1717183 In Step 7 where he describes adding the channel, instead of "Channel: #AHG" use "Channel: #AHG1" Alternatively, using mIRC, whenever you are connected to Othernet you can type "/join #ahg1" into any channel to join #ahg1. Finally attached are instructions kindly posted by iluv2trade on how to connect using Hydra, an alternative to mIRC