Trading is for dumb people

Discussion in 'Trading' started by Africatrader, Aug 10, 2006.

  1. This is what I do. I trade with MT4 and have a automatic pivot calculator, that loads the days resistance and support levels with a central pivot point. than I have MACD with only one line and RSI at 14. And I rarely take a take before the London open. I wait 1 more hour after the London open and check the following.
    1. did price open in the resistance area or the support.
    2. what is the macd and rsi reading.
    3. do they support the pivot reading?
    4. i also watch the MAD and RSI relationship on the 15m and 4h.
    5. than I wait for the indicators to sign reversals of the present trend.
    6. than I watch macd to confirm that we are indeed headed for the opposite and THAN and ONLY THAN do I take my trade. 90% of the time it goes for at least 50 pips before resuming the main trend.

    IT WORKS FOR ME!
     
    #41     Aug 10, 2006
  2. I think your choice of dumb was interesting; it certainly got you some responses.

    But I would absolutely agree that a simple approach using confluence of trend on more than one timeframe and resistance that you've seen to be more then 50% effective can give you a good entry. And once you've got it then an easy to hit target makes for nice pleasant trading.

    For the person who didn't like ATs maximum risk being equal to his target think on this ... if your target is 20 and your average (not max) risk is 25 with 1 pt commission in both cases and an 80% win rate then

    E = 0.8*19 - 0.2*26 = 15.2 - 5.2 = 10 pips clear per trade.

    Who cares if you get 3 losers in a row. The goal is to be dumb enough (statistically smart) not to care because you know that over the next 20 trades you'll make 200pips.

    Nice thread Africatrader (at the risk of being offensive, if as someone suggested I trade kiwis then what do you trade?)
     
    #42     Aug 10, 2006
  3. Cesko

    Cesko

    ........ case. Is that trading cannot be approach with a intelligent, or scientific mindset.


    Africatrader is absolutly right. When I figured out this it made trading much easier for me. Anybody who gets an intellectual satisfaction out of trading is a nitwit.
     
    #43     Aug 10, 2006
  4. Mopane worms, they have excellent aphrodisiac properties!
     
    #44     Aug 10, 2006
  5. Dear ET's
    what i wanted to say in my first statement that you can trade the news without subsription to any news service. it works and yu get the same pips as the guys who have subscripted to Bloomberg, Reuters and so on. Please do not fight me if you do not understand this. have the decency to ask if you do not understand. it is not going to cost you anything.
     
    #45     Aug 10, 2006
  6. I'm stupid and I trade.

    So africa is right.
     
    #46     Aug 10, 2006
  7. FITENOB

    FITENOB

    "trading is for dumb people", summarizes my post. Would you be offended if I were to say that " XYZ" profession is for dumb people & you were in that profession.
    My take is some naive college kid is going to read your post & belive the hype, more importantly underestimate the work associated with trading.
    I'll give you the benefit of doubt your a successful.
    Its easy for you, not everyone. When you remember this fact you'll get a more intimate understanding of the markets.
     
    #47     Aug 11, 2006
  8. Holmes

    Holmes

    you are one dumb ass!

    :eek:
     
    #48     Aug 11, 2006
  9. Easy Hoss!

    Hey Africa, I understand what you're saying and philosophically agree with your statement.

    While in truth a lot of intelligent, scientific method goes into the development of a good (or great) trading system, the actual exection of it should not require much thought process or over analyzing of the market.

    It's like being in a fight (professional :D). Good fighters work and hone and develop their skills to the max before they enter into kumite, but when it is time to do the actual batteling, they execute one/two/three good moves/patterns/methods consistently.

    This is how you have consistent winning.

    I'm not surprised that Romik would agree with the more salient points of your philosophy, or that kiwi_trader once again delivers the sweet spot on the discussion.

    Best,

    Jimmy Jam
     
    #49     Aug 11, 2006
  10. Kumite means sparring in Japanese... in another words... paper trading...
     
    #50     Aug 11, 2006