The R:R always depends on the strategy. There are strategies, like trend following that have a win rate of only about 30 up to 40 percent. But the R is about 3 or even higher, because trends tend to last for a long time. Whereas my strategy is just based on the fact, that other traders are closing their positions or even open new positions at pivot points, because it is an indicator that shows you if the market is, compared to the last hour/day/any timeframe, uptrending (above PP) or downtrednig (below PP). So often the market reverses for a few ticks as it hits a pivot point. And this is my kind of edge in trading. In a few weeks we will see if it is an edge or not. And then you can raise to question if the strategy makes sense or not.
R16 is correct, forget that youtube crap, nothing but a waste of time and effort - best to focus on improving entries and exits! Also right about targets - charts and ladder should tell you when to get in/out, not the P&L, as this is amateur approach - master this and 1% per day will be a piece of piss. J_S
If this is your approach, is it okay and probably suitable for you. But my approach is using the strategy I have developed over the last years. After I have traded for 100 days, we can discuss this again. But before it doesn't make sense.
It makes perfect sense, as making money is all about entering and exiting! What makes no sense what so ever, is the idiotic act of recording ones trading and then posting it on utube - what do you hope to gain from this silly endeavor, unless of course you are hoping that some idiots might think you have something to sell them, which is possible, as there are millions of fools out there who are just too damn lazy to do some serious thinking for themselves - and a little bit of hard work, god forbid (if there is one)! Pivot points, fib levels, moving averages - and the myriad of other "indicators" - are not the real show stoppers when it comes to spotting trend reversal, for, there is a far more simpler method, that requires nothing more than a bar chart/s - but as always, it depends on what one is thinking about when one is looking at the chart/s that matters most! The human brain can only think about 1 thing at a time - try it if you don't believe me! No disrespect, nor do I wish you no good, but I am predicting here and now that you are wasting your time - I hope you prove me wrong! J_S
Talking about youtube and attention span : There are several patterns for spotting reversal or continuation, But they're not procrustean beds ! One has to study the peculiarities. No RSI or whatever indicator can beat the study of the underlying's behavior. I don't use A Priori studies (Pivot Points, Channels, Lines) but "Price Action" only.
Brilliant, reinforces everything I already know to be true. I knew about the gorilla, and saw him beating his chest, but missed the curtain changing color and the team member leaving the stage! When trading, the less things you focus on the better - in fact, some will say that all you need for trading is ONE CHART - and I know why they say this, and what chart is the best one to use for certain markets. The brain can only think about one thing at a time - try it! J_S
I myself don't even use chart (Not Kiddin'). Historical data feed my brain with more noise than signal. I watched again the video and saw the gorilla, as opposed to the first time. Thought... Oh It didn't work ! But I actually missed the two other events too ^^
a monkey you see..is not a bee will see and do..like most of you the reason sure..also the cure way we learn..fraught and stern some time ago..one in the know did warn madame..of pending calam in essay he show..why most were slow the year it be..wait...yes..1580 J_S
Guys....it's important to emphasize that intraday price movements in the ES,NQ futures are largely RANDOM. If you have a good system to take advantage of the random price movement, then you are in nirvana. Great entries and disciplined and programmed stop losses are the key. Otherwise, you are in hell. Always remember the failures of MBA Gearhead Trader. He is a smart guy with a failed approach. http://mbagearhead.blogspot.com/ I, for the life of me, don't understand how he can continue to post such poor results and continue to trade. My gosh, his 2015 trading results indicate a net profit of only $5,000 !! Heck...Even Uber or Lyft drivers can do better than that from an income standpoint. Let this be a lesson to newbie traders.