Yoohoo's guide to becoming a great trader

Discussion in 'Technical Analysis' started by yoohoo, Nov 19, 2009.

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  1. Sorry to those who PM'd me. As you know I have not been posting as I have other commitments.

    My last few posts way back called a number of major market swings weeks or even months in advance. It's possible to get both time and price bang on but the reason I demonstrated it over a long time frame is that it is so much more difficult than calling it on a 1 min chart.

    It's really easy on a 1 min chart but most traders just see noise so I am going to post a summary of how I train traders to develop a personal feel for the market.

    If you are an experienced trader and want to contribute feel free to show how you train traders. Before anyone asks, I don't have time to train anyone at the moment.

    More to follow soon.
  2. 5 Simple Keys to becoming a great trader

    You can be a better trader than you are now. Everyone can. If you are very successful you have much more to learn. If you are totally confused here is a way to succeed. These are the Simple Keys I used to develop a method that allows me to win every day…

    · The best book you will ever read is your own screen-shot journal with brief notes of every market move that interests you.
    · Be careful of the market you choose to trade. Some are extremely volatile while others are easier to begin with.
    · Experiment with a few markets until you find one that appeals to you
    · Study each reversal, pause, continuation, trend, chop, spike and impulse for the signal that moved the market
    · Draw S&R and Trend Lines by hand on paper. You will learn much better than on a computer.
    · Compare line, candle and bar charts
    · Google Bar Signals and Candle Signals, mark them on your charts. These are your entry and exit signals.
    · When you can’t see how to enter or exit or why the move took off, look at different styles like Time, Volume, Range & Tick Charts.
    · Match your Bar, Candle and Line signals with S&R levels and Trend Lines
    · Study your journal every day before and after the market and at weekends
    · Continually add to your journal and remove older pages that a have less important observations
    · Use lots of different time frames: it allows more practice on one instrument to build a better understanding of market dynamics

    · It’s a lonely walk, a personal journey of discovery about yourself as much as the market behaviour
    · Everyone has advice to give, the successful and even the perpetual failures. Ignore all and follow your own path.
    · It’s your dream, your perception, how your eye perceives structure, movement, speed, time, size and colour. Trust yourself.
    · As you study your journal by investigating price movements, you will begin to favour a time frame and a style.
    · Do not allow anyone to tell you what you must, or must not do. What is impossible for one is the best way for another.
    · As your dream begins to take form learn all you can to answer every question you ask of yourself
    · INO TV.com can be a good resource. Cheaper than books and you can have it play as you watch the charts
    · Know this: everything works! But mastering a few of the hundreds of tools requires extreme dedication
    · Ignore all who want to argue to convince you they know best. Those who know are at peace.
    · Use at least two monitors and three different time frames, but in time increase both of these
    · There are no impossibilities, but reaching great heights require great investments of time and effort

    · Now take your observations and begin to write trading rules based on what you see
    · Test your rules in paper trading over and over until you have a high success rate
    · Investigate every failure and find rules to help you avoid its weakness
    · Do not back-test indicators: the results are appalling. Indicators work best in multiple time frames.
    · If you want to learn how indicators work, it will require much more effort than learning price action
    · Make sure you have rules for placing and moving stops
    · Use a simulator to test your rules
    · When you have completed your Book of Rules and are making a profit on the simulator, it is time for serious trading.

    · Now it’s time to add emotional control into the mix
    · Open an account with a broker who offers low commissions
    · Deposit enough to cover your contract cost at least three times over.
    · Do not trade on margin – you have not proven you can trade without doing yourself damage.
    · Download the ORDER ENTRY SCREEN and paper trade it until you are familiar with how it works.
    · You might want to use a better front end that you can customise than using the one your broker provides
    · When you are familiar with how to place an order and always with a stop, you are ready to trade.
    · Do not trade without a stop
    · Place the minimum amount of money possible on your trade
    · At the start you will make mistakes until your brain becomes accustomed to all the activities going on
    · If you are not making a profit stop and go back to point 1. Go through the whole process again.
    · If you are making a profit, when you are not trading go back to point 1 and repeat the process again.

    5. GET A LIFE
    · Trading is all consuming. For a long time it demands everything… now get a life
    · Refreshing your soul is important to keep a keen edge
    · Give to others. Hoarding money after meeting your future needs is symptomatic of a sick soul
    · Be happy. You are winning at one of the most challenging ways to earn a living
    · To be happy practice virtue for the love of money is the root of all evil
    · Sometime live with the poor as one of them, even if only for 2 weeks. It will shape your values and give you balance
    · Give some poor people a leg up in life, but select them wisely like you would an investment

    Simple – Yes! Easy – No!
  3. xburbx


    good info. will follow
  4. Total Garbage! Folks, this is classic armchair trader, book reader crap. It's all over the internet: Lines like this

    <i>· When you are familiar with how to place an order and always with a stop, you are ready to trade.
    · Do not trade without a stop</i>

    The simplist fact is that STOPS HURT PERFORMANCE--- ask any system designer.

    EVERY line in this diatribe is RIGHT OUT OF BOOKS written by NON TRADER authors... WAKE UP !

    What a MORON! Man, we can pick you book pro's and phony baloneys out from a mile away, but I bet you will get a book deal from prentice hall!!
  5. there is actually some good points here.

    stops can and do hurt, but without them you could lose everything and go insane. they must sensible. small tight stops burn money and brokers love them. too big of a stop and you might as well not have them. they need to be sensible.
  6. Thats too subjective to real system traders, batman.

    its been proven time and time again that stops hurt performance and turn winning strategies into losers.

    Position sizing is the key. stops will KILL YOU and are only promoted by ARMCHAIR traders, pretenders, and BROKERS who get paid by the number of trades you make.
  7. I'm not sure what you're talking about exactly. you suggest keep a position without any meaninful stop no matter how large losses get?

    I've worked with strategies and sensible stops can improve drawdowns. they also reduce returns, but the first rule in trading is keeping what you have and minimizing losses.

    stops help continuity in this business. no matter how small the position, you shouldn't wait until losses burn to zero.

    you can have a 5% allocation with no stop, and a 50% allocation with 1% stop. think about it.
  8. Good luck in trading without stops! :D
  9. Stops are psychological comfort-- FACTS are they HURT performance. The tighter the stop the worse the performance. You folks have really DRANK THE KOOLAID.

    See page 32 in Connor's "short term trading srategies that work" for the test results over 100 of thousands of trades.


    You can either listen to the statistical facts, or continue down your merry way of listening to armchair traders, tiny pissers, and those who want your MONEY ie BROKERS.

    have it your way, the FACTS speak for themselves.

  10. a 1% stop over 394k trades results in 26.89% winners

    a 3% stop over 321k trades results in 47% winners

    a 5 % stop over 286k trades results in 57.54% winners

    all the way to

    NO stop results in 69.81% winners over 236k trades.


    lesson of the day, folks.

    WHERE IS YOUR TESTING THAT INDICATES OTHERWISE--oh, let me guess, you depend of OLD WIVES TALES and internet message boards for your FACTS

    if you STILL believe in STOPS-- ask yourself-- are you a tiny pisser, armchair trader, or simply a DELUDED nice guy? cause you AINT a pro Trader.
    #10     Nov 19, 2009
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