Nodoji where should one begin the journey of learning PA in the retail space of trading? U don't do PM's?
1) There exist many price action strategy threads here at ET. http://www.elitetrader.com/vb/search.php?s= Recent thread @ http://www.elitetrader.com/vb/showthread.php?threadid=276076 Other PA threads @ http://www.elitetrader.com/vb/forumdisplay.php?s=&forumid=33 2) Put charts on your monitor of your favorite trading instruments with NO indicators. Study your charts carefully, take notes of swing points and strong continuation price actions every trading day until you start to see something repetitive about the price action. Do not be trading during this learning period that should take many months at the minimum. Be aware that the best price action traders are NOT using only technical analysis. They are extremely aware of "what" impacts the price action they're trading and its got nothing to do with TA. Instead, it helps them better make use of TA. 3) Use google to research price action trading about your trading instrument. http://www.google.com
I recommend Bob Volman's Forex Price Action Scalping for a introduction to price action concepts. Also this thread: http://www.elitetrader.com/vb/showthread.php?threadid=276076 And this thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=220303 Both have good stuff. And someone on ET recently posted a link to dbphoenix's thread from 2008, a real gem: http://www.traderslaboratory.com/forums/wyckoff-forum/15535-developing-plan-trading-journal.html Al Brooks' Reading Price Charts Bar By Bar is really comprehensive, but it's way more than anyone needs in the beginning and it's confusing to read.
JUST like to let you know that i found my holy grail at long last.... price action patterns that you eluded to, were also parts of the holy grail for sure.... hope you'll find yours soon.... so trading for a living would be much less stressful indeed.... warm regards nakachalet@gmail.com
That's a good feeling, when the plan is complete, thoroughly tested and it works. I believe stress comes from confusion. If you're not absolutely sure what you should be doing (buying, selling, or waiting) at any given moment, and if you aren't absolutely sure how to manage a position once it's on, you'll have to think while trading (TWT) and may experience stress. Then this confusion often leads to poor decision-making, which often leads to frustration or possibly even anger, which can then lead to gambling (trading outside the plan), which generally leads to losses, which create additional stress. Many traders can trade by the seat of their pants, but I never had that talent. I had to grind out a plan with rules so specific there's no confusion at any point.
+1. i would add any variables that can be changed(well technically-it's same confusion.just called differently). i have 2 variables that i can change on the fly and EVERY TIME i go against verified,back tested results-every time i was wrong. EVERY TIME