If you want to fail as a trader, study TA

Discussion in 'Psychology' started by The Expert, Apr 27, 2010.

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  1. Fuller

    Fuller

    i am using a combination system of price action and RSI. but for me, rsi is more important that price action
     
    #851     Jun 4, 2010
  2. What you need is a good telescopic sight:D

    Spot the pin point accuracy :cool:


    [​IMG]

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    #852     Jun 4, 2010
  3. And why might that be:confused:
     
    #853     Jun 4, 2010
  4. Mysteron

    Mysteron

    Apologies TE. When I read the thread "Why Is The Obvious Not So Obvious?" some of the terminology used by NY seemed to match what you had previously said, like "obvious":D and "rubbish":D. I think NY also used a phrase something like "help those who help themselves" which you used on the site that shall remain nameless, but I noticed that NY used certain americanisms such as "JEEZ" which I can't recall you using. So therefore, after all, you and NY appear to be different people, who happened to be taught by another.

    Hmm can't load the picture, never mind.
     
    #854     Jun 4, 2010
  5. Mysteron

    Mysteron

    The image finally loaded.

    Looks like monthly chart of SPY and (cyan) QQQQ.
     
    #855     Jun 4, 2010
  6. Do you see the where the price is now on the top one, and, it does not matter why it is there, for, all that matters is that we were expecting it to go there, for, if it decided to not go there it should not make one bit of difference, so, expecting and reacting to what is actually happening must be mastered and practiced to perfection.

    Fail to Plan, and, you Plan will Fail:cool:

    Apology accepted:p

    TE
     
    #856     Jun 5, 2010
  7. TE, I'm doing OK with predicting PROBABLE levels, my main problem is on exiting, coming out too early, it's a discipline/psychology thing, any advice?
     
    #857     Jun 5, 2010
  8. OK then FA. let us look at what you just said.

    "my main problem is on exiting, coming out too early"

    Questions?

    1. What prompted you to exit at that level

    2. Why did you not re-enter when the price went back above where you exited

    3. Why did you not reverse trade, for, surely if you exited you thought the price was going to reverse, and, if so, you should be changing sides to maximise on the Time = Money equation

    Discipline and psychology have absolutely nothing to do with it, for, it is very easy look back and see what you should have done, but, it is not that easy to do what you should be doing, and, that is the answer to..

    "Why is the Obvious, not so Obvious" :D

    Think about it, hard, if you are exiting too early, in hindsight, then there is something that you do not know about the market you are trading, for, if you did, you would not exit too early, but, you would exit when your TARGET is hit:eek:

    I hope you are not going to say you do not have a TARGET for each trade you make:eek: :D

    TE
     
    #858     Jun 5, 2010
  9. Yes I always pick two targets, I come out in three stages, 1st is to cover risk, 2nd is to lock in some profit, I always try and let a quarter or a third of the position ride and manually trail the stop to new swing highs/lows.

    Well that's the theory anyway. In answer to your questions:

    1. On a retrace and with a reasonable profit, but usually only about 1:1 Risk-reward, and usually well short of where I have predicted the market COULD reasonably move to (so usually I'm taking about 20% to 50% of what I could have if I hadn't micro-managed the exits), and of course 9 times out of 10 once I exit it goes just a few more ticks and then reverses back in the direction of my trade and usually makes it to the original profit objective I had set for the trade. Note also that this normally takes place AFTER I have gone to all the effort of adjusting risk down to minimal or zero.

    2. That's a bit more tricky, I don't re-enter unless my set-up rules are fulfilled, if they are then fine I'll get back in.

    3. See answer 2. Also note that currently I only take trend continuation trades. I use 5 and 10 minute bars with 15 and 30 minute bars respectively for confirmation.
     
    #859     Jun 5, 2010
  10. Ha Ha:D

    Rules, I think you need to go the F word thread where I can really tell you what I think, for, the F word thread is not just to deal with the shitheads, but also to tell others what I really think about what they are doing:D

    TE
     
    #860     Jun 5, 2010
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