Two Questions For Practicing Day Traders

Discussion in 'Trading' started by ironchef, Oct 6, 2023.

  1. padutrader

    padutrader

    forgive my presumptuousness but i want to tell you one thing which cost me hundreds of thousands of usd because i did not pay enough attention to it

    it is the process of reversal

    markets do go from bull to bear with one pattern but mostly the reversal takes place with some sort of trading range: sometimes just a one bar doji, sometimes a simple trading range with horizontal boundaries and sometimes quite complex ones like converging or broadening patterns which can cause a lot of damage to any inexperienced trader's account.

    while i am supposedly experienced, i have not realized the simple fact that if markets go from bull to bear, this means the bears have first to negate the power of the bulls with an equal and opposite force.

    so this usually results in a trading range.

    sometimes the bulls regain control of the market to cause a breakout from the range but usually this BO is met with renewed opposition from the bears which then causes the BO to fail .....

    this leads to a lot of market volatility around Markert turning points which is enough to embarrass most of the traders,with the exception of the most knowledgeable.

    i have realised that this has been the cause of most of losses and i know i am not alone in this.

    one example of a reversal is seen in the chart of ES below. a trading range doji was preceded by trading range broadening patterning that was the basis of a short trade in progress live. The stop was just above the doji which provided a dream like RR..... ES in one of it's more generous moods. ett1.png
     
    Last edited: Oct 11, 2023
    #121     Oct 11, 2023
    Darc likes this.
  2. padutrader

    padutrader

    thanks for the encouraging words....you were here in ET before me so are quite qualified to
    thanks for the encouraging words....you were here in ET before me, so are quite qualified in judging me....

    like you said i like to joke a lot

    which can be costly in a business like Finance.

    while the most difficult thing is to advice traders i do not let that hinder my efforts
     
    #122     Oct 11, 2023
  3. padutrader

    padutrader

    why stop in this forum......you can write to the US press and educate the world.

    and thank you for evaluation of my trading abilities and for informing the world about it.

    you know where to send me the bill for all the professional work.
     
    Last edited: Oct 11, 2023
    #123     Oct 11, 2023
  4. ironchef

    ironchef

    Reread my posted statistics.

    Other than "PRM" I don't know if I have any other edges? I can't quantify my process because I can't quantify "pattern recognition". Not exactly the same, but not unlike some of what @padutrader posted on this thread.
     
    #124     Oct 11, 2023
  5. ironchef

    ironchef

    I do value your opinion and respect your position sir.

    A diversity of opinions is important and we do need someone to call a spade a spade.
     
    #125     Oct 11, 2023
  6. Jzwu2017

    Jzwu2017

    So your entry is random? I know your exit is about PRM and letting winners run, ideally.
     
    #126     Oct 11, 2023
  7. ironchef

    ironchef

    @rb7, @tiddlywinks and @Jzwu2017,

    Big losses and big wins on live trades came from the first 5 min when market opened. Very volatile period, looked like no one knew which way it was going when opened. So, I am between a rock and a hard place.

    Paper trades simply did not catch those volatilities.

    Starting today, I intend to limit my daily trades to under 10 and when done, simply move over to paper trades as practicing sessions.

    Thank you all for your help. That include @padutrader.
     
    #127     Oct 11, 2023
  8. Sprout

    Sprout

    Do you consider not trading on red folder news days?
     
    #128     Oct 11, 2023
  9. ironchef

    ironchef

    Entry is based on certain pattern, usually ended up like a coin flip. Perhaps, it is a pattern only in my imagination.
     
    #129     Oct 11, 2023
  10. ironchef

    ironchef

    What is a red folder news day?
     
    #130     Oct 11, 2023