TRADING IS SIMPLE ... (TheRumpledOne)

Discussion in 'Forex' started by TheRumpledOne, Jan 2, 2012.

  1. Good1

    Good1

    TRO, i just found this list of the top ten forex liquidity providers:

    1. Deutsche Bank 18.06
    2. UBS 11.30
    3. Barclays Capital 11.08
    4. Citi 7.69
    5. RBS 6.50
    6. JP Morgan 6.35
    7. HSBC 4.55
    8. Credit Suisse 4.44
    9. Goldman Sachs 4.28
    10. Morgan Stanley 2.91

    So when you say, "drain the banks", would these kinds of banks be what you mean? From what i can gather, whenever a small retail trader makes money in the supposed forex market, it comes out of the accounts of these kinds of banks. Would you concur?
     
    #201     Mar 11, 2012
  2. Think like a rat LOL. So i was thinking like a rat the whole time. i work with lab rats which makes it even funnier.

    why are you giving out the secrets lol.
    I followed this type of methodology back when i was at my uni (during the financial crisis). i'd say i got pretty lucky gambling my life savings into wachovia and starbuck. Bought wachovia after the merger. starbucks back when they closed shops. Then I bought Chipotle long term cause i loved to eat it in college (had to go long term cause it was effecting my grades). How can you hate quantity + quality for $5-6 burritos. Saw its cross/cultural-demographic appeal and popularity. Read reports etc... I now stick with food orientated businesses, bio-tech, bio-agro, pharmaceutical and the coffee industry stocks.

    On Buying low at a certain pip value works. You just have to have a good exit strategy. I play the stock through my head 100 different times various events. Think out every possibility so you don't stutter a second when the decision has to be made. Combined it with other models. And walah you have a basic system with lower risk and moderate success. If the market is volatile you won't be riding the waves. You'll be cutting short but i guess it does work. You have to play like a robot.

    I'd say I'm a pure bred stock swing trader so i can't give much input on FX but thanks for the post.

    I'm reading up on Forex. Thinking of testing it out in the upcoming month. Building my game at the moment. I feel like it is simpler than stock.

    i apologize for my long anecdotal off topic drunken rant. Think like a rat lol... i study there freaking brains.
     
    #202     Mar 12, 2012
  3. [​IMG]

    "Look, for example, at this elegant little experiment. A rat was put in a T-shaped maze with a few morsels of food placed on either the far right or left side of the enclosure. The placement of the food is randomly determined, but the dice is rigged: over the long run, the food was placed on the left side sixty per cent of the time. How did the rat respond? It quickly realized that the left side was more rewarding. As a result, it always went to the left, which resulted in a sixty percent success rate. The rat didn't strive for perfection. It didn't search for a Unified Theory of the T-shaped maze, or try to decipher the disorder. Instead, it accepted the inherent uncertainty of the reward and learned to settle for the best possible alternative.

    The experiment was then repeated with Yale undergraduates. Unlike the rat, their swollen brains stubbornly searched for the elusive pattern that determined the placement of the reward. They made predictions and then tried to learn from their prediction errors. The problem was that there was nothing to predict: the randomness was real. Because the students refused to settle for a 60 percent success rate, they ended up with a 52 percent success rate. Although most of the students were convinced they were making progress towards identifying the underlying algorithm, they were actually being outsmarted by a rat."

    P64 HOW WE DECIDE (italics added)

    =============================================

    "Now, 2 patterns of market behavior happen on a regular basis:

    1) the price breaks to new high's (or low's)

    2) the price reverses from new high's (or low's)

    They happen regardless of time frame (with the obvious limitations explained above)

    They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist." - H. Rearden

    =============================================

    1) Price within 20 pips of the CURRENT daily low (ClLo < 20): This is OPPORTUNITY

    ============================================

    WHY ISN'T EVERYBODY DOING IT?

    Most of you know I catch a lot of flak on my forums because SOME PEOPLE don't like the way I post.

    One worn out argument that is used repeatedly is, "If this is so (simple, great, profitable, ), then why isn't everybody doing it?"

    Simple answer is because SOYLENT GREEN is people!

    We all know exercise is great, but how many actually exercise?

    We all know smoking is bad, but how many do it anyway?

    We all know which foods are bad for our health, but how many eat those foods?

    We all know that we should save for our future and spend less than we earn but who does that?

    The list is almost endless.

    As long as there are people, there will always be some STUPID people and some smart people making STUPID decisions, where STUPID is defined as knowing better but acting otherwise.

    Meanwhile, the RATS are still beating the Yale students.

    =============================================

    PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
     
    #203     Mar 12, 2012
  4. kent

    kent

    Tango 6 Alpha/TRO,

    Thanks for answering my post which I thought didnot get posted.

    Again, TRO, instead of posting the same text so many times, you could simply document a 2 page PDF/document with clear entry/exit instructions with screen shots (remove any unnecssary colors/indics and just stick with basic). Please donot keep on repeating the same stuff on every post.

    If your system requires any specific time of the day that is crucial too. If not EA is worthless unless you specify a time /window to EA to start/end trades.

    Also when you day daily low or high, you referring to the prev.daily low/high? If u are referring the current day, how you know it is low or high during the day? We never know the future.

    So many ppl would have asked you to spell out these things in much more clear way but you still continue to repeat the same cut/paste rules. Ofcourse you are not obligated to answer/oblige.

    Thanks for your time/replies. Post more youtube. May be you could be more clear in video than posts:)

    Kent.
     
    #204     Mar 12, 2012
  5. Kent:

    Repetition is the mother of skill. That is why I repeat the same message. I have been thanked by many traders after they finally "SEE". They told me it took a while but it was reading the same thing over and over that finally made it "click".

    I have answered the daily high/low question before... it is the CURRENT daily high/low. Of course, those levels can change during the day but you still use them BECAUSE sooner or later the current daily high/low will be THE HIGH/LOW for the day.

    If you do not think I am clear, then tell me SPECIFICALLY what is not clear about the rules:


    1) price within 20 pips of the daily low - that is OPPORTUNITY

    2) red candle closes

    3) green candle closes - note the high price of the green candle.

    4) enter long at the green candle's high price

    5) STOP LOSS IS 10 PIPS

    6) Take whatever profit you can.

    7) If the rules do not mention it, then it is of no concern.

    Make sure you follow rule #7 BEFORE you ask a question such as "does this system require any specific time of the day?".

    Thanks for taking the time to post.
     
    #205     Mar 14, 2012
  6. [​IMG]

    1) Price within 20 pips of the CURRENT daily low (ClLo < 20): This is OPPORTUNITY

    ============================================

    PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
     
    #206     Mar 14, 2012
  7. <iframe width="480" height="360" src="http://www.youtube.com/embed/xRTPjzgr3l8" frameborder="0" allowfullscreen></iframe>
     
    #207     Mar 14, 2012
  8. [​IMG]

    --------------------------------------------------------

    The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

    <-------------------------------------------------------------------->

    PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
     
    #208     Mar 14, 2012
  9. Exactly where did you exit on those last two charts and why ?
     
    #209     Mar 14, 2012
  10. [​IMG]

    Let's clear things up:

    1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

    2) The "within 20 pips of the CURRENT daily high/low" is the BEST possible entry to get the maximum run BUT the RAT REVERSAL entry works ANYWHERE on the chart.

    Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS. THINK ABOUT IT!!


    The important part is to enter WITHIN 20 pips of the CURRENT daily low. The RAT REVERSAL is only one entry method.


    <-------------------------------------------------------------------->

    PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
     
    #210     Mar 15, 2012