Can any of you battle tested vets help out a youngin????

Discussion in 'Trading' started by theprodigy, Jun 20, 2009.

  1. You know the saying that old supports becomes new resistance, and old resistance becomes new supports????

    How do you actually approach this when it comes to trading.....

    Is just waiting it out key???

    Is there a indicator to help you benefit from this situation....

    Or is there something else im not looking for..........
  2. topherea


    Take profits, and take em often. Go to cash, and wait for all of your trade system's conditions to reset. Never jump back in until all conditions of your system reset. "Support and resistance" has a variety of placements and answers short, mid and long-term. Holding on through a pullback only to see that the possible "new" support didn't hold equates to wasted time when you coulda had a nice profit if you would've taken it.
  3. I didn't know it was an old saying, but it is a very common occurrence. Fuck indicators ok? Just identify key areas of S and R, and you will notice that when they are taken, many time price will double back (pullback) and retest it on the other side. This happens all the time, every day on all time frames.
  4. since 90% of traders fail, do exactly the opposite of what you think.

    buy resistance and sell support.

    too many retail traders think it's resistance and it's not....then they get stopped out, and that's when you get out of half
  5. Here's a priceless cliché that has withstood time: seek what you find.

    Don't solicit help from the general masses, or otherwise you'll only get that much useless answers. On the other hand, look around and search out for those you believe to be good traders and ask for advice. No doubt, some of them will refuse to lend their help. However, you would be surprised to find how many traders are actually willing to go out of their usual ways to help you get on your two feet. This is because they've all been in your shoes at one time or another.

    Good luck!
  6. xburbx


    I completely agree with the quote above. Just a little added piece of advice.

    There are some very helpful, very good traders on this site. The problem is cutting through the people that screw threads up and confuse others.

  7. LEAPup


    And why is that?:confused:
  8. Put up an ES chart from the beginning of May to now, draw lines at 923 and 928... notice anything?
  9. It doesn't matter what you think about anything, including S&R, if it cannot be expressed precicely mathematically it does not exist.

    Too much talk mixed with subjective experiences and little precision is what describes the current state of trading. Do you have a precise model that works? If yes, then you have an edge.

    Model you idea and backtest it in several markets. Do not ask any question. Does it perform accross the board? If it does historically, it has a chance to work in actual trading provided you are disciplined, lucky, well-capitalized, have a good broker who doesn't play games with your orders, there is enough TRUE liquidity in the market, nobody has put a curse on you, etc.

    Good luck. You gonna need it.
  10. Lucrum


    After a "significant"(subjective) break above or below an "important" level you can usually fade the first test of it later.
    After which I like to move an initial stop to a BE stop as soon as practical (also subjective).
    In the first case (see Attachment) you would try to buy 911.25 or so. At the actual moment of entry I'm watching the inside B/A. If the bid gets refreshed I'm buying.
    My initial stop in the first case would be below 909.75.

    Second case, after no follow through to the upside (your first warning sign) and a break well below 911.25 you can sell the first test of 911.25. Again watching the inside market for any clue that there are aggressive sellers there. If I don't see the selling I'm holding off on entry. In case I'm watching a level that's not really that important or the buyers are going to simply push right through it.
    My initial stop on the second case sell would be above 914.25. And again once price begins moving in my favor I'll move the initial stop to +/- BE.
    How to trail your stops if and when the market starts to follow through in your favor is varied, subjective and up to you.

    Until I get follow through I'm watching closely. If I think it's not going to work I have no problem taking whatever few ticks I have and stepping aside rather than sitting passively hoping my initial stop won't get hit. Even though it's becoming increasingly apparent the trade isn't working. For this last part you'll need to posses ice cold objectivity. And probably thousands of hours of screen time.
    Most see only what they want to see.
    #10     Jun 21, 2009