Not so new I was learning to trade Stocks i went though about 5-6 Stocks/ T/A books, but Forex interested me a bit more. Been demo trading Forex for about 1 month, im trying to figure out my trading style/mentality hence the giving Murrey Math a shot. although i must say im really enjoying reading this thread, earlier this morning i took 2 Demo trades based on what i read from you and CFerret one i came out with 28 pips and the second with 34pips just to get over excited and take a impulse trade only to close it with -21pips anyway gotta read though this thread atleast 50 times to make sure it sticks with me. keep it up!
LOL - you got a lot to learn and the right attitude (provided you do as you're told and stick to impulse when learning hehe). I'd really suggest you learn these techniques first as they will work forever. Mix Murrey with your learning curve here and you'll not know if you're punched or bored. Learn one thing that works and learn it well - then try to add.
Guys/CF I meant to say, if I ever disappear for a period of time without saying it's because like CF I have an ill father, and as he's well on in years his time might not be far away. In the last 3 weeks he's suffered a stroke and a heart attack but he keeps coming back to health and strength again and leaving the doctors scratching their heads. So if mum gives me real bad news I will jump on a plane and fly to the other side of the world. But I'll be back - it's not my nature to just leave friends without saying.
yoohoo, Wish all the best (good health first of all) to your father and to hold strong for your mother (I know by my mother how hard it is to see your old husband suffering)... So if you disappear I'll pray for your family...
Thought and Application of the Day For fast daytrading it's vital to understand the difference between knowledge and being well informed. Someone may read avidly about being an elite soldier in Delta Force and even convince himself he could do it, but it's just information masquerading as knowledge. Knowledge is what is acquired in the killing zone and the price is high... for many too high . I've been at the game since '86 and most days I still study other traders who are at the top of their game. I want to glean something I can adopt or adapt. Most days I try to go beyond what I can do; try to make another breakthrough. Take yesterday for eg. I mentioned trading emotion for the 1st time. Higgs didn't like it. I gave an example of how we can use emotion to draw T/L's and project time and price reversals. It was partly for fun and partly to provoke your thinking. While I wouldn't try to use that projection technique very often, understanding emotion is an edge that will add to our edge. It's information you can turn into useful knowledge. There's a saying, above the 200MA is Greed and below is Fear. But if you're trading a 1 min bar what use is emotion like that? The truth is every small time period is a fractal of a larger... I trade 15-second bars and I see the emotion inside a vertical 1 min bar just as 1 min bars show the struggle within a 5 min bar. So emotion is always there. If you don't know that you'll draw T/L's on the outside of the bar and I'll slip my trade in before you have your break. If you don't understand how PA uses the mid so that not only will a bar balance on the T/L at the mid, but a pattern will do the exact same. It looks like the T/L is broken... but the emotion is intact and the reversal will catch most out... especially if it is a pattern. But is this perhaps just interesting information or is it vital knowledge? In this game where speed rules, for me it's an edge that makes up a part of my edge. So when you see close-ups of my trend lines on the 1 min, you might notice the use of 1st extreme thru next reaction close etc. That's what I'm up to. Then the strength of that T/L can be proven before we have to question if a break is for real (i.e. is it a good line) simply by counting the bars and looking how the emotion responds to the line. Here's my rules developed over 20+ years. Say from a top... I need at least 7 bars down to consider it a valuable T/L. You've heard me beat the drum about high quality set-ups on candles. Well for a T/L to be high quality I look for the emotion to line up with the T/L. So from the top I look to see how many of the OHLC & Mid points are on or very close to the T/L. If I get 4/7 that's good but more is of course better and often happens. So the first close outside that line is my trade and it's usually before the herd has got the break on their T/L on the top of the bars. Yesterdays daily line of emotion was the intraday market bottom - that's Big ATM$$$$ It works on all timeframes because it's all loaded with emotion. You can use it on weekly charts, and if you're any good as a trader, even starting to trade weekly as I did, you can soon make enough to leave your job and trade full time. But if you possess a head full of information, you'll sit at your job and place trades on free charts for 15 years and still not be able to trade full time. Thatâs the difference between information and knowledge. A head full of information means you can come on to a thread like this and dis me and ask how am I better than you and so and so says diddly diddly about stochastics and then poo poo talk of emotion. To jump from part time glances behind your employers back at free weekly charts to possessing the knowledge required to trade Fx on 1 min charts is like dreaming of being in Delta Force. It's a world such a dreamer wouldn't understand and if they venture in here they'll be my lunch. Higgs dreams of being as trader while he sits at his employers desk for year after year after year (now 15 - see his posts). I'm not being bitchy. Here's the lesson: if you can't cut it - all you have is information and people like that are a dime a dozen. Want more proof Higgs, come on the thread and start offering what you have out of your vast store of information. So today, when the market is taking a breather - take another look at how you use T/L's and tighten them up because using emotion, like yesterday, is making money. Oh and I really appreciate the kind words of appreciation from you guys in response to Higgs. If I wasn't of help, I'd be off like a shot.
I got up an hour and a half earlier than usual to try to get a piece of the action in the asian session ... but really not much action going on.
This should be old hat to you now. Gameplan was up on the hourly - didn't have much power but that's trading. TIME was completed - see the charts for the Hr resistance and guess what... horns again. Watch the 4 hr - it can't complete the candle for 2.5 hrs but a break of the low is bad. In any event we have a nice channel on the 1 hr - don't miss it. The arrows show where I called up this morning and the hrly resistance. As I type this reversal is great - the fun is back
Oh another thing I find really helpful: put a big wall clock above your monitors. My brain doesn't tie in time on the PC clock as well as seeing the big hands on the wall. If you want to learn time - get a clock.