Is there a book that explains it all?

Discussion in 'Professional Trading' started by vk60546, Oct 5, 2010.

  1. NoDoji

    NoDoji

    This is truly valuable information, especially if you miss an ideal entry, still want to be part of the move, and need to quickly calculate the adjusted stop/target parameters to determine if the reward:risk ratio still makes sense.

    I had a real-world example last week in which I put on a trade, was stopped out break even (I moved my initial stop too soon), price quickly came back to my entry price and I missed the re-entry. The setup was still intact, but price had run a significant distance from my initial entry and I had to quickly make a decision where to place a survivable stop, and if my initial profit target (which would now provide much less $$) would keep my positive R:R intact.

    Because I have the smaller time frame always in view for reference, I quickly decided to get in $160 away from my initial entry because based on the micro swings, the place I could put a survivable stop kept the R:R positive. I achieved my profit target and avoided the frustration of missing the entire move.

    By keeping a smaller time frame available for reference, it can help you in these situations, such as where to enter a really strong trend. Have you ever watched a strong trend where price just runs and runs and you watch helplessly, not sure where to enter or how to manage the trade if you do? The smaller time frame chart lets you "see into" the ranges defined by each bar in the larger time frame. For me, the look of the price action on the 1-min chart clarifies the 5-min chart in a strong trend.

    Thanks (yet again) to RN for introducing me to this concept very early this year.
     
    #41     Oct 10, 2010
  2. Redneck

    Redneck

    Aside

    This is exactly why I stay away from most trading specific discussions

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    Being Profitable,

    With my next comment I am not disagreeing with you – or busting on you… So I hope you don’t take it as such – but it is your choice


    Appears you’re trading patterns, waiting for confirmation, setting stops at logical places (logical meaning where most traders do) etc.. etc…

    Kudos….


    I fully admit I used to trade as you’ve described – I don’t now – and haven’t for awhile…

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    Random Thoughts


    “Safest” is a misconception in trading…. “Ideally” rarely exists either – close is always close enough

    Stops should always be a few pennies or less – as that is all that is necessary

    Objectivity is truly in the eye of the beholder – as is opportunity

    Personally I do not like front running – 1.) In its real connotation – it is illegal, 2.) In your connotation – I’ve found the one leading typically gets their head handed to him/ her more times than not…..


    I trade as much based on what price is doing – as I do based on what it is not doing

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    I don’t expect you to get what I’ve just posted – I am trying to give Bart something to ponder – that if he extrapolates out a bit – will lead to new insights – and provide him more opportunity, with very low risk…



    How about we both agree I’m a dumbass and leave it at that

    RN


     
    #42     Oct 10, 2010
  3. Redneck

    Redneck

    Wow….

    Thank You NOD :)

    I wish you a Truly Wonderful Day Ma’am

    RN
     
    #43     Oct 10, 2010
  4. They recommend it because they are brokers and they want more commissions. Futures traders often get stop-lost, thus generating commissions.

    Words of wisdom indeed.
     
    #44     Oct 10, 2010
  5. Yep, this would be correct. Especially the etc.. etc.. ;-)

    I'll admit that the method I use is very simple and seems so obvious that it should not work, but it does. Basically, I'm just using simple SR patterns to catch a trend. Combined with good money management it works pretty darn well.

    Back to the OP, I'm simply suggesting as many have before me that a good first step is to learn basic support and resistence patterns.

    Agree. I should not have used safest or front run. Poor choice of terms. However, the term objective in the contect of trading is just a way of saying that the trading method is not subjective. In other words, the rules are clearly defined in a way that could even be programmed into an ATS which is exactly what I have done. If this is no longer the case, then... damit. I give up :) JK.

    Hah. Not because of your trading knowledge, but because you are a Redneck. JK of course. It is possible that we agree on more things than not.
     
    #45     Oct 10, 2010