Termination of old ISP

I'm a very patient man.

To prove it, 3 weeks dead internet and I still cling to my ISP..Only a week good connection and then another 2 weeks of dead internet..If I still proceed with my patient demeanour,,then it is dumb.

Trading is very hard enough for 95% world population and I dont want to start new year 2011 with the same ole problems in 2010.So I give them my stop loss.But need another 2 weeks before new ISP comes in.

Meanwhile I have preparing my self with revised setup that I can write it on a business card.
Only 2 filters and 2 subfilters and I'm in..........( compared to old setups that have 5 filters, 3 subfilters.)

Yes, that is a damn fast setup. Any dead internet connection will screw it

"Sang" - Who cares if someone makes more than me on a trade?

http://www.sanglucci.com/education/the-psychology-of-trading/#more-1358
Who cares if someone makes more than me on a trade? Who cares if I didn’t get the whole move? Who cares if I sold out and the stock ended up doing what I thought it was going to do? Who cares if I missed a banger? The answer to all these questions and anymore you can come up with is…
NOBODY CARES, ONLY YOU! The market is the market and there are opportunities every second. If we get a couple moves we’re closer to where we want to be. If we don’t WHO THE FUCK CARES, more are on their way.
Do yourself a favor and tell your ego to go screw itself tonight!

Troublesome Internet

...made me lost focus

Am I ready ?? SIMulated

Adjust time frame

As I change my style to 'little bites' I have to

1. set chart to smaller time frame 30s.
2. use many H lines
3. 1 macd modified indicator that I will seldomly use :-)

Conquering Your Negative Trading Emotions

by  John  Prow  

The trader has two emotions that must be controlled in order to become successful. I call them ‘the two sides of a coin’ and they are commonly known as FEAR & GREED.
The beginning or new trader will first encounter FEAR. There are two types of FEAR. The fear of losing money and the fear of being wrong.
The fear of losing money usually derives from a trader risking money that should be used for the rent, food, children’s education etc. ‘Scared money’ will render one incapable of pulling the trigger when a trade setup comes along. The only way to overcome this paralysis is to be well capitalized with funds that you can risk.

The fear of being wrong is simply that part of all of us that feels that to make a wrong decision is reflective on our personal competency. The cure for this is to simply realize and accept that losses are part of this game. Think about this? A baseball player needs to hit the ball once for every three times at the plate and this will get him into the Hall Of Fame. Whenever you feel the fear of being wrong, just remind yourself that… "My approach for trading has both historically and real-time produced over (number)% winning trades." This will give you the confidence to step up to the plate and keep swinging. Also tell yourself that the only way to earn the big money is to get into the game. Have confidence in your trading system that when properly executed, it will make much more money than it loses.

So, why is GREED the flip side of fear?
Greed is caused by the fear of not making enough money. Traders who are greedy are often the exact opposite of the ones who are fearful. They have no fear and usually are very aggressive traders, which can get them into big trouble fast. Greed will usually lead to overtrading, failure to follow the trading rules, and not applying the system consistently. One of the biggest problems when greed sets in is the inability to know when to take profits. These traders are so bent on making a killing that they are never satisfied. If they have significant profits they don't even think about cashing out, as they want more. This often leads to the inability to see the trade turning against them and they will allow winning trades to turn into big losing ones.
One solution is to realize that making significant profits on a regular short time basis adds up quickly. This is best combated by developing or buying a sound system and executing the system flawlessly. Once you become confident in your system, you will no longer feel like "going for broke" because you know that there is always another good trade about to come along.

Nothing can sabotage your trading skills and profits like fear and greed. If they are a part of your “trading personality”, then you must address them immediately. Here are some of the traits that you need to identify and work to overcome:

Indecision: This includes the inability to make the trade or also known as “pulling the trigger”. Another area that indecision causes is the tendency to ponder too long on whether or not to make the trade. Often the trader will wait so long that they miss the trade completely or they will enter near the end of the move and end up in a losing situation.
Poor judgment: Fear can cause this problem because it can make you trade with your emotions, resulting in irrational decisions. This is the exact opposite state that you want to be in which is a calm and unemotionally attached one.
Inability to exit a bad trade: Fear can cause you to freeze up and not take action.
Inability to stick with a winning trade: Fearful traders will tend to exit the trade the minute they are up a few dollars. They are so concerned with being right or not losing that they figure that they are better off to take a small profit. Meanwhile this results in them missing the really big payoffs.
Exiting trades prematurely: In this instance the trader enters a position and then it starts to move slightly (notice I said slightly!) against them and they panic and exit the trade. The market then moves in their favor and they become angry and frustrated wondering what made them bail out of a good trade in the first place.
Stress: Trading is not easy as nothing is ever certain and risking money always adds to the stress levels. However, fear can amplify the stress many times, which in turn makes it hard to trade with a clear and focused mind. Ultimately it makes something that is already difficult even more so.
Lack of discipline: Fear will induce this state because it causes irrational and emotional decisions, which wreck havoc with the trader’s “game plan”.
Overtrading: In an attempt to get rich, some individuals will tend to trade way too often and buy more shares than proper money management would warrant.
Creating unrealistic profit outcomes: In this situation the trader never knows when to take profits because they are convinced the market will go their way forever. The reality of this scenario is that they end up giving back most of their profits as their greed blinds them to market reversals.
Throwing caution to the wind: In this case the trader fails to do their homework before they make the trade. Instead they go “with a hunch or hot tip”. Others will just see a stock that is on the run and jump in without thinking.

Tips for Overcoming Fear & Greed
1. Only trade with money that you can afford to lose.
2. Set realistic goals and realize that the tortoise wins the race. You will not turn $5000 into $1,000,000 in a year.
3. Work your plan. Practice being disciplined. Limit your loses, let your profits run.
4. Adhere to strict money management rules. Don’t risk too much on any single trade, you will encounter a string of losing trades and must have money to stay in the game.
5. Take periodic breaks from trading.

CL & ZS

I found that CL like to play positioning - it want to throw you away
while ZS like to play scalping - zapping...

Adjust a bit of my mind.

I'm back.

After 3+ weeks my broadband now ok as my ISP get their new server. During that period, I'm looking back a bit and now ready to implement my new execution style in trading CL.

It  rusty after a long break and If  I got USD 50 in next trading session. it is good enough.

Internet still down

Sitting still.

I see dead zombies :-)

3 Keys to Flawless Execution

By Steve Ward | TradingMarkets.com | October 18, 2010 09:05 AM

“The proper execution of your trades is one of the most fundamental components of becoming a successful trader and probably the most difficult to learn. Most traders find it is much easier to identify something in the market that represents an opportunity, than it is to act upon it.” — Mark Douglas
The Two Keys To Successful Trading


If we consider that the two key variables to achieving trading profitability are having a trading strategy with edge and positive expectancy combined with the ability to consistently execute that strategy, then assuming a trader has the first one (and developing this is a primary concern) then it is the consistency of execution that becomes the key focus; and indeed the main challenge for many traders.

It is useful at this stage to reflect on where you are at with your trading in relation to these two variables. Take a look at the diagram below and see which quadrant you are in. If you are in 3 or 4 then your primary goal is the development of a trading system/strategy with an edge in the market. If you are in 1 then you should theoretically be returning profits over time and the challenge for you is sustaining this level of performance. If you are in quadrant 2 then the primary challenge is execution. Identifying where you are, is stage one; stage two is then setting some appropriate goals and targets to move you towards quadrant one.

Flawless Execution
In my work with traders I have seen many of them find this consistent execution challenging. One of the key aspects that seems to distract traders is excessive focus on P&L and the outcome and results of the trade. That is the trader is so distracted by thoughts around outcome and money to be made/lost that they do not have sufficient focus on the key components of executing their trade to achieve the best outcome. Likewise traders who are low in confidence fail to execute their trades and take opportunities when they arise losing valuable potential profits.
To help with the above two challenges I encourage the traders that I work with to focus on the flawless execution of their trading strategy as opposed to overly focusing on P&L and results.
In the trading process we have 5 core components:

1. Monitor – watching the markets
2. Spot – spotting a trading opportunity
3. Enter – enter the market, place the trade
4. Manage – management of the position
5. Exit – close the position out

In flawless execution the trader focuses on the process of each of the 5 steps and aims to do each one as well as they possibly can. They evaluate their trading performance against the quality of their execution of the trade alongside it’s profitability.
Three key factors enable flawless execution – confidence, focus and discipline. Many traders inconsistent execution of their strategies can be linked back to factors that are encompassed under these three headings

By developing these three areas and shifting your mindset to that of ‘flawless execution’ you may find that the quality of your trading improves and you experience less high negative emotional states such as fear and anxiety. A focus on flawless execution is actually a preventative approach to many of the common challenges and barriers faced by the majority of traders.

Nine Practical Strategies To Enhance Flawless Execution
Below are the three areas of confidence, focus and discipline with some bullet point practical tips that you can take away and implement within your own trading to improve the execution of your trading strategy.
Confidence

• Profitable Trading Strategy With Edge In The Market (Positive Expectancy)

• Trade In Line With Your Current Ability Level – recognize where you are (beginner, novice, competent, expert, master) and trade an approach that is appropriate for your level of skill, knowledge and understanding. Anxiety and fear increase and confidence decreases when we are exposed to challenges that are too great for our perceived capabilities (See table below). The development of competence through ongoing education, coaching, mentoring and self-learning is absolutely critical in underpinning your confidence levels. Confidence is greatly underpinned by your competence!

• Trading In Line With Your Strengths, Interests and Best Potential For Profitability

Matching challenge and capability enables you to enter the flow state and trade at a higher level of performance. Where challenge exceeds capability anxiety, panic and worry are natural. Where challenge is too low for capability then boredom and apathy are usual.
Focus

• Process – focus on quality execution of each of the five stages of the trade model – what states and what actions

• Controllables – only aim to control what you can control!

• In The Present Moment – thoughts about the past and the future are not helpful in the moments of execution. Keep your attention in the now. Try this – get a ball or similar; throw it in the air; catch it. When the ball was in the air what were you focused on? Catching the ball hopefully! Not dropping it, or the shopping, or what you will be wearing tomorrow – your attention was in the moment.

Discipline

• Take Appropriate Risk (Low Risk for most people!) – high risk (outside of your psychological and financial thresholds) creates high emotion and specifically fear and anxiety – it stops many traders from entering trades, and it stops others from executing their stop losses and also encourages the taking of profits early. Low risk trading in line with your own personal threshold and trading capital and personal wealth makes for a less emotional more confident trading experience. A large majority of beginner traders who come to me regarding experiencing anxiety and fear in trading are simply taking too much risk!

• Trade In Positive States – tiredness, anger, frustration, stress are all states that are limiting to you trading to your full potential. High negative states impact on your ability to think rationally, to make objective decisions and to apply your strategy as blood flow to the ‘smart brain’ is reduced during these ‘negative’ emotional responses and your ‘emotional’ brain starts to run the show! Aim to trade when you are at your best, or close too! Think about a 1-10 scale where 10 is your Ideal Trading State and 1 is ‘get me away from a trading screen now!’ – notice the levels at which you feel confident to trade at and also those scores which are a definite no trade zone.

• Reward good trading and not P&L. Many traders feel good when they make money, and this feeling is often greater than the feeling of executing well but losing money. The focus here is on the monetary reward and not on the execution. This may sound OK to you right? If our goal is to condition flawless execution then we need to reward flawless execution. It is possible to make money through poor execution, through random gambles in the market – should these be rewarded? We need to associate ‘pain’ to poor trading behaviors and ‘pleasure’ to positive trading behaviors regardless of financial outcome. This is a challenging concept for many people and requires a change of thinking and mindset – however consider this… the difference between the best traders and the rest is that the best traders think differently! (Mark Douglas, Disciplined Trader).

Below is a table of the nine practical strategies. Take some time to reflect on which ones you have in place (perhaps mark this on the table) and then have a look at where there are areas for improvement. Select one that you feel will have an impact on your trading in the short term and set the implementation of that as a short term trading goal. When you are happy that is ingrained into your trading process come back to the table and select another one. Your goal is to cover all nine areas – be focused on flawless execution and see your performance improve.

Conclusion
Flawless execution is an approach to trading – a philosophy. It is all about setting yourself up to be successful and to focusing on execution and not on P&L. This approach may not be for everyone, however from the work I have done in training and coaching traders I know that for the vast majority of people the impact on your trading is likely to be extremely positive!
Focus on ‘Flawless Execution’ and feel the difference.
Steve Ward is a trader performance and psychology coach at Trade With Precision. He has over 15 years of teaching, training and coaching experience and has worked with home, proprietary and institutional traders and groups across Europe, USA and Asia including consulting on trader recruitment, selection, assessment, training and development. He is an active FX trader and a regular trainer at the London Stock Exchange

RECAP

3 scenarios:

a. trend (nowdays 10%) - breakout ....change of momentum.....trade 1st opportunity...no target, trails
b. mixed (nowdays 30%) - pullback.....stay of momentum....trade 2nd opportunity....has target
c. chopped (60%) - fade...... out of momentum.....extreme contra candles...has target

Candle types:
Doji....range market...undecided
Body....directional market...decided
Body plus leg...mixed...to be confirmed by next candle or ema

Mind state:
Zen Clear   :)

Bonus Pattern:
SU1

Set up
Price, EMA (previously WMA), standard Bollinger, micro line, MACD modified

Previous objective:
SU1 (USD 1000 move).... ha ha ha....silly me...

Current objective:
USD 70 per entry.....2 times per day: USD 140
Monthly target: 20 days x USD 140 : USD 2800

Against all odds

I have no option but to stick to the current provider as other ISP can't accomodate my request. Up to 7 days off.

So I have all the time to look back what I have been doing so far.Despite all  odds, the good thing is I still have the motivation to trade!

I also found that I done a lot of thinking while trading : "What if "- a symptom of nervousness.
To be succesful in trading, I need a VERY CALM MIND

Stop loss

Due to regular hiccups of my broadband, I decided to call their CS and told them I want to terminate the line.
I want to stop my further losses of opportunity.
I want to focus on my trading, not fixing line....I'm sure that I'm a super duper online trader if I'm in Middle East, Europe , Japan or USA.

Looking back the missed session...yeah, still a masterpiece

Masterpiece

Previous posting mentioned that I will trade between the lines...so I just drew all lines possible in my chart....: peak to peak, valley to valley.....nearly 20 lines criss-crossing previous day chart..and current chart.....I will let the lines projected towards the next day

Looks like a masterpiece to me  so I will not erase these lines as I did before.....

BTW, I found that MACD behave like TSI and vice versa..and some traders agreed..coincidence?

So I put in MACD modified with DMI ADX...but these indicators are not my primary tools... the masterpiece lines are neither my primary tool....my primary tool is my confidence..I need to build my tool..erp..build my confidence. Yes I know..cliche...but its true


CCC
Consistency in taking trades according to trading plan
Confirmation of market signals to get better chance
Confidence build-up
************************

Article by Pamela Wheatly

We are always looking for the perfect trading strategy – the one that will present clear
signals and deliver winning trades time after time. We know it doesn’t really exist, but we
are always hopeful! There are many strategies used by successful traders, so is it
perhaps the trader who is the winner, rather than the strategy? There is also the problem
of changing market conditions. Sometimes a strategy which has worked well for a period
of time suddenly seems to fail, or there are no signals, so flexibility is also important.
This morning I was watching a video clip that promised to reveal to me a ‘new’ scalping
strategy........... and I found it was exactly the same as one I already use, so there is
nothing new. There are just variations and refinements of strategies created using sound
technical analysis principles. If you understand these principles you will be able to
construct your own strategies. These will be the ones best suited to your particular trading
style and risk tolerance.

Once you have a well-constructed strategy which has been thoroughly back-tested, and
forward-tested in simulation mode, there are three more important things to consider that
go a long way to making winning traders. They are consistency, confirmation and
confidence (and I wasn’t looking for three words beginning with “C” – it just happened!)


Consistency
It is important to have faith in your strategy and to be consistent in your approach, because
you will have times (at least until you become experienced) when you have runs of losing
trades. A few losing trades are not an indication that you should change your strategy or
give up. Chopping and changing your strategy will never give you consistent results, but if
you stick you your rules and keep taking trades when the signals appear you will start to
achieve consistency. Successful traders keep taking trades, whenever a signal appears
that matches their criteria.

Confirmation
Confirmation of signals is critical! The more confirmation you have that a market is going
in the direction you want, the more likelihood there is of success. On the other hand, if
you always wait for all your ducks to be lined up perfectly, you will miss a lot of good
trades! A simple trading plan is easier to execute than one which requires a large number
of things to fall perfectly into place. So, always wait for confirmation before entering a
market.

Confidence
Once a market has given you an entry signal, and you have some confirmation, proceed
with confidence. It is often difficult to push that button, and quite often you will have a
losing trade; but if you persevere, follow your trading rules, and push through the pain
barrier, you will find your confidence grows; and as confidence grows your trading will
improve. This will in turn generate more confidence.

Trader's Oath

http://www.learntotradethemarket.com/forex-articles/a-successful-forex-traders-constitution-part-2/
by Nial Fuller
 
I am a proficient, disciplined and profitable trader. I enjoy trading to make a profit. I honour the responsibility I have to myself and to those who are watching and depending on me to be such a trader. I continue to educate myself on how the markets work and I also continue to educate myself on how the mind works so that I incur the necessary discipline to execute the right actions for my success. I know how to determine market direction and I have a simple trading methodology that has an entry and two exit strategies, one for profit, one for loss. My trading methodology feels comfortable to me, is easy to understand, obey and execute. I have a set of trading rules that make sense to me and I obey those trading rules. I always trade with a protective stop. When i find a trade, I create that trade and trade my plan. If my currency of choice does not fit my trading methodology, I look for another trade in another currency. If I cannot find a trade, I am patient until the market meets my criteria. Each trade either wins me pips or experience.

Trading between the Lines 2

After a long time....I scraped wma.....some said moving average is the most useful tool for most traders but I found that I could be distracted by it....It will be be replaced by pivot... I'm going into 'trading between the lines' concept...Going to learn about pivot....

So my lines of defence are:

1) Pivot (Learning stage)
2) Day OHLC
3) S & R

Pressure/Momentum  Indicators:

1) Modified MACD
2) TSI

Candle Patterns

1) Long Legs
2) Engulfing
3) Long Body (yeah...easy to remember...Longggg again )
4) SU1( this pattern is very good)

To make my chart pretty:
1) Bolingger Bands

Still, the ultimate tool is:
My eyes and brain :-)

Trading between the Lines

While trading breakout in essence is trend play, range trading can be used between OHLC lines but I need more screen time to do that. My account is small thus I need to begin with trading breakout 1st.

Missed the Rocket.....(Opportunity in CL pt 2)

Again, my youngest son decided to play my pc during CL opening , therefore I missed the rocket to the moon....I think I need to wait DST ended.....

 I tossed out that Stochastic..So my setup:

1) 1 wma (50)
2) 1 modified indicator - I named it 'worldbank'
3) Average volume 15 wma.
4) Counter check  indicator with HL,VL, MA. Range play >< 0, Trend play =0

Simple to see, simple to play.

Song : InsyaAllah

Stochastic

Not Funny

OK. 2 short stories.

As mentioned yesterday, I'm testing sideways setup in a supposed SIM mode. It got 2 ticks. When I saw the AT platform, the color was different. It was a LIVE mode ! !....I'm traded live actually .  Lucky.

I'm in sideways mood , so I switched to sideways chart. Use simple bracket to achieve target in the correct SIM mode this time. Once target achieved, the candle continue downhill. Flip to trendy chart--there it goes - loud and clear. . Too late to switch to LIVE mode...Wasted 80 ticks.Not so lucky this time.

Learned mistake. Now both sideway and trendy charts are side by side..no flipping when trading in session....

Stochastic

To test : flat waves between 20-80 zones inidicates  ranging mkt

Simple brackets & Stoch

Enough is enough.
I tossed out MACD for sideways market .
Why ? - Simply MACD is a variation of MA.
More important - it does not work in ranging mkt like yesterday. yesterday 2x, many2 yesterdays.

I put in Stoch Slow - but the setting need to be tweaked a little.
I have some experience with Stoch in TF Russell...
It is not a reliable indicator on its own.
So I put in 2 Stochs with diff setting.
Not enough.
This time I will use a new way of using stoch...with OHLC....
And only in fast frame, if it 2min charts, it will be fried.
So : 2 Stoch + OHLC + Trendlines + fast frame....

Too fast ?
Not to worry., My brain...
In ranging market like yesterday, the move is damn slow.
I will test it only for one day SIM then will go LIVE.
One day ?
I have thousand hours experience 'flying' those charts.

Of course, if the market in trend in this next session, my 'sideways plan' will be postponed.

Consumer Confidence Report + 2 others

CL moves slowly till 10.00am Consumer Confidence Report... still use Simple Bracket mode

Safety Rules

These are safety rules. Enough of trading rules that I don't follow :-)

1)  2 Type of tradings - trailing stops for trending  and simple bracket for sideways. Use Moving average to determine which is which. Line can be used to determine strength of structures...However, chart setup patterns are the same  : 'Stepping stones' (OHLC) and "Broken Dam SU1" (MA)

2) If I made mistake in LIVE trading , stop immediately and dont go to SIM and then back to LIVE. Try another day

3) Use printer

4) Calm the mind before trading

Mixed Moved

Yesterday was a mixed move.. I hope today was a clear tredn day

Probabilities

2 kind of set up: Chart and Mental

1. Chance of my chart pattern will be correct : 1/2 = 50%
2. Chance of my mental setup will be in correct mood :1/2 = 50%

Thus probabilities of my trading to be correct in a row : 1/2 x 1/2 = 1 / 4 = 25%

Missing in action

slow market....between the 2 arrows, may choose the one aligned with macd 0 ?

Song : I got a feelin'

Pullback trading

2 basic type of trading = breakout and pull back
SU1 is a breakout setup.

meanwhile Pullback is good strategy if the place is near OHLC or MA and the candle is wicked...I code this setup as  POMA2 as I tend to forgot

Bought printer HP F2400

I hope this printer will enhance my trading memory (which I severely lacked) - This printer will print 'my trading failures and successes' which a blog can't do. Then it will be used like "flash cards for kindergarten children"   :-) ....hmmm... blinking light ?? 

Oh hell, I need to buy the printing papers ...I told ya my memory  is not that good

************

I need a new wire (done)
I need to call technician (done)

I need to dismantle a single bed (done) and drill a hole for the ADSL cable (failed effort, the wall is too tough for the drill, so I have to use the window ..he he)
I need to relocate computer (done)
I need to buy another screen  (done)
I need a big poster of Hawaii :-) Changed  it to New York wall clock (done)
I need a colour printer to print charts and stick em on the wall ( I think the printer is very important -- traders, like other people... tend to forget)(DONE AT LAST)

Current chart setting - SU1 EXcluded

 My xp shows that its useful to record 'the chart' for future reference, even though it may not useful.

“Results! Why man, I have gotten a lot of results. I know several thousand things that won't work.” - Thomas Alva Edison

'trend is no longer your friend'

Now is September but CL market is 100% choppy.
Choppy is the trend now and this choppy trend is not your friend'
I used trendline and OHLC to detect trend but its nowhere to find and confirmed by choppy price movement.
An indicator - MACD - is added to my SU1 set up to test choppy water. Of course when the TRAIN is coming, the MACD is not needed.

Flexibility is necessary to remain in control.

The Ultimate Trading Secret

interesting article ...I will grow mullet to become a better trader ..my strength is in my hair...he he
during my childhood, I personally known a boy that surely down with a fever if he cuts his mullet

be a predator !

http://www.tradersnarrative.com/the-ultimate-trading-secret-280.html

Nothing at all

By now August reputation as choppy moth is intact. 

My SU1 not suitable for the current August market, not worth the risk, I will wait for Sweet September. In meantime, I need to empty my mind again to find another setup for August, I mean next August - probably in longer time frame ?

Fri 6

Set up formed in both charts .
However, 2 immediates hurdles that make entry in higher risk. The price proved to be choppy at hurdles points.

Thu 5

It seems August's reputation is  intact today

No setup, and volume is declining. Adios

Monday 2 Aug And Tues 3 Aug

Monday : Error no. 1 (refer to Error list at the right column)

Tuesday: No setup during 1st session

Today Wednesday : No trading

Bring it on

My Sim trading period is over, it is time to activate real trading mode, starts on 2 Aug 2010. August has the reputation of one of the worst month for trading ( and December is the other). . The exact date is 26/9/2010 - this blog is created 26/9/2009, but I decide to start real trade 1 month early for warming up. The  fasting month Ramadhan is coming in a week..I have no much time  for trading .... I will have only a few REAL trade ..  Hopefully the momentum is there to carry forward when August/Ramadhan is over.


Technical Specs:
Set Up: SU1 (alpha), C180 (beta)
Trading Code: CL only
Lot # : 1 only...yeah you read it rite...IF my SU1 so damn good, I can make money using half-lot...(to newbies like me:   this is suppose to be a joke. so please laugh....Ha ha)
Happy Hour : 1st session only 
Target trading frequency per week: 2 real trades
Monitors : 2 x 21.5" 
Trading platform: AT Infinity
Chart: Sierra

.... So CL, bring it on.

Wimpy Wednesday as usual.

Wednesdays are my day off , except  this Wednesday.

Choppy ride on CL - as 80% of all Wednesdays.
Lot of hurdles with no space to run.
Sim is green..
Lately I dont change my setup as frequent as before. May be that a good thing.

And I ask my broker to include ZSX0 into my trading platform. Just to test my CL theories on ZS.

Wed report - early hour choppy...signal from 1 minute only temporary with small profit.. take a rest on wednesday

A trader need to able to handle the truth

2nd monitor bought...

I should bought this lonngg time ago..its a Viewsonic Vx2233m . My 1st monitor is Benq TD2200HD

 ***********

I need a new wire (done)
I need to call technician (done)

I need to dismantle a single bed (done) and drill a hole for the ADSL cable (failed effort, the wall is too tough for the drill, so I have to use the window ..he he)
I need to relocate computer (done)
I need to buy another screen  (done)
I need a big poster of Hawaii :-) Oh no bikini, just palm trees at the beach
I need a colour printer to print charts and stick em on the wall ( I think the printer is very important -- traders, like other people... tend to forget)

Kickstart the Matrix

Weekly SIM Profit = 180

Actually i got more but I have discounted the sim profits as off record.
I'll wait till I get 300 weekly sim profit before real trading begins

If capital is 5000 , Weekly profit 300 will lead to...

		The Power Of Money Management
Starting Date	07/01/10
“Delta”	$5,000.00			i.e. increase # contracts after making	$5,000.00	per contract
Initial Capital	$5,000.00
Weekly Goal	$300.00	per contract
Money Management
Every	16.6666667	weeks increase the number of contracts
Phase	Phase Start Date	Contracts Traded	Profit/Week	Profit/Phase	Account Size (End of Phase)	Account Growth in %
1	07/01/10	1	$300.00	$5,000.00	$10,000.00	100.00%
2	10/25/10	2	$600.00	$10,000.00	$20,000.00	300.00%
3	02/19/11	3	$900.00	$15,000.00	$35,000.00	600.00%
4	06/16/11	4	$1,200.00	$20,000.00	$55,000.00	1000.00%
5	10/10/11	5	$1,500.00	$25,000.00	$80,000.00	1500.00%
6	02/04/12	6	$1,800.00	$30,000.00	$110,000.00	2100.00%
7	05/31/12	7	$2,100.00	$35,000.00	$145,000.00	2800.00%
8	09/24/12	8	$2,400.00	$40,000.00	$185,000.00	3600.00%

Uncertain Trading Mind With Certain Trading Rules( UTMWCTR)

Today I get this lesson of trading: It came in flash to my mind... To be a successful trader I must have ""Uncertain Trading Mind With Certain Trading Rules( UTMWCTR)"".
In other words - don't have opinion, let market dictates, don't chase the market etc

 Paradox is it ?


Quote from internet:

""Successful traders embrace uncertainty, they realize they don't need to know what will happen next. Basically they are rigid in their rules and flexible with their expectations.


One excellent article about this issue is written by Ziad , but of course you need a certain trading rules to begin. He wrote it to Michael Brenke.  http://brenketrading.blogspot.com/

***********************

Hi Michael,

I've been reading your blog for quite a while now but haven't commented yet. However, I feel I need to comment now.

If you don't mind I'm going to be very straight forward, and blunt even, but I hope you'll take it from a spirit of sincerity and genuine desire to help. It's going to be a long comment, so I'm going to break it up into 2 or 3 comments.

Here's the situation as I see it: For the last few months, and possibly much longer, you've just been spinning your wheels while thinking that you are getting somewhere. The reason for this is that you are going about learning how to trade in the wrong way, in my opinion. I say this because I've been trading much less than you, a little over 2 years now, and yet because of the way I went about learning and what I focused on, last year I netted $150k while nearly quintupling my account, without a single losing month, and while only risking a very small portion of my account on any single trade. Now there could be many reasons for the difference in performance, but I think one of the main reasons has to do with what you are focusing on and how you are going about the learning process.

To try to put it as succinctly as possible, in my view traders that are focusing all their attention on "set-ups" and finding out which combinations of indicators work are never going to become profitable. They are trying to follow the advice of trading books that say trading is simple and psychology is everything. So they search for set-ups that 'work', and that can take the guess work out of trading. They want to be "disciplined" and have simple rules that guide all their actions. But there's a few problems with this. Namely, while psychology is HUGE, it's not everything. And while trading is all about simple principles, actually having an edge is NOT simple. It's a myth that you can have a couple simple price or indicator set-ups and make money consistently if only you are disciplined. That's a load of crap. It keeps the dream alive for wannabe traders who never realize what it's truly about. Well let me tell you what it's truly about...

Trading is about being okay with ambiguity. It's about tolerating confusion. It's about sitting with discomfort and being at peace with it. It's about not having an exact script of when to trade or not to trade, or what's really a high odds trade, and being okay with that. It's about exceptions to the rules. It's about contradiction. It's about uncertainty.

And yet traders left and right want to make it simple. They want to reduce it to a few simple set-ups to trade with discipline. And yet the market is not simple. The market is all about uncertainty, and complexity, and ambiguity. Simple set-ups could never capture that, and they can never give you a true lasting edge.

So what's the solution? Is the problem in the simple set-ups themselves? No, it's in how they're being used. The bottom line is, every trader needs to learn to READ the markets. This means that simple rules will not do. There has to be a synthesis of different elements (whether they be price action, indicators, inter-market themes or whatever), and real-time interpretation must take place. It has to be all about CONTEXT. Once you can read the markets, and don't fool yourself it is a very complex process, then you can choose to employ "simple" set-ups to enter and exit. But the real work will be in interpreting the market to see when you should use which kind of set-up. Seeing a hammer or whatever near a support means nothing unless you've identified the broader picture and gotten a sense of the kind of tactics you should be using, and what the odds are for different scenarios unfolding.

Now I know you, and most traders do this to a certain extent, but your main focus is on the set-ups. It's not on reading the market from minute to minute, hour to hour, figuring out the odds of it doing this or doing that, adapting dynamically, and thinking of trade ideas from all your observation as the day unfolds. Rather, it's waiting for some simple set-up to pop up and then taking it.

Now is it easier emotionally to have clear set-ups to wait for and trade in this simple manner? Absolutely. But who said 'easy' would make you money. If I've learned anything, it's that the market rewards what is hard to do. It's hard to have ambiguity surrounding your market reads. It's hard being uncertain. It's hard dealing with competing and sometimes conflicting signs. And yet, this is what it's all about. You have to stop trying to avoid this by needing things to be clear cut. And is it hard to be disciplined when there's so much uncertainty about what is the right trade to make? Of course. But instead of trying to avoid the uncertainty by looking for simple set-ups, or some straight-forward method, train your mind to be able to deal with the uncertainty.

As for the learning process of how you go about doing this, it's all about being constantly engaged with the markets, trying to figure things out and learn from experience. For me, for instance, what I did was each and every day take notes in a journal all about market action and what I think it means, and how I should trade, and what is working and what's not. I didn't write a journal describing the trades I took, or what my emotions were during the day. It was all about market action. And it was all my perception and interpretation. Day after day, week after week, making mistakes, wrong calls, being clueless as to what was going on, not knowing how I should trade, not knowing if my views made sense or not, and yet I continued taking notes and learning. Then I would view charts and combinations of historical intraday charts, and I'd note certain behavior. For example, I'd study trend day after trend day and try to notice what they had in common and how I could have picked up on it in real time. Then I'd study range days. Then I'd study a price chart of the ES versus the Advance decline line and see what the relationship was across many different days. Then I'd do the same with the ES and TICK chart. And on and on. Over time, this gave me a feel for the markets, and a certain understanding of how certain days differ and many subtle signs and tells for each type of environment and context.

As for set-ups, I didn't use any predefined ones. I just formed trading ideas and then tried to get in at good trade locations. Even this, which is the art of execution, is quite complicated and not straight forward. I started realizing that in some environments it's best to wait for pullbacks, in others I need to get in at market or I'll be left in the dust. In some markets I can buy low and sell high, in other markets the opposite is in order. And so on.

I became consistently profitable in a timeframe of a few months by doing this. But of course before that I had read 30 or 40 books and so I had all the technical background. I had also worked a lot on my psychology and personal issues. But all of this was in conjunction with a method of learning and trading the markets that was mostly in opposition to what the general wisdom says about simple set-ups and exact rules.

Now of course you might say that everyone has their own style, some discretionary and some not. Absolutely. But even the purely mechanical traders are very adept at reading markets, and are aware of all of the complexity and ambiguity inherent in it. Their system might end up being simple, but it will come about through a very deep and complex understanding of markets. And usually this system will take the market environment (i.e. context) into account. It wont just be simple mindless set-ups.

In the end, all of what I am saying is meaningless unless you come to a personal realization. Take a look at your trading career thus far. Do you truly believe that if you just learn to focus and take all of your set-ups then your equity curve will reverse and you'll be a consistently profitable trader? Why would the world's top institutions spend millions and billions on R&D when a few simple set-ups could make them all of the money. This doesn't mean that to make money you need extremely complex mathematical models. Far from it. What it does mean is that you need extremely complex mental maps that take time and experience to develop, and that will never develop if you spend the whole trading day simply waiting for set-ups to materialize. That just won't cut it.

Right now your learning curve is stagnant because you're not truly studying the markets. Your day is wasted in waiting mode. It's not in observing and absorbing mode. Also, because you fear loss, you aren't willing to experiment. This means that you aren't making mistakes and failing regularly, which is what you need to do to learn quickly.

So to conclude, based on all of the above, my advice to you would be to stop trading and make a mental shift. Realize what you need to do to become successful, and it's definitely not staying on this endlessly unfruitful path being supported by the hope of future profits. You're just running in your place unless you change your focus and your learning method. And if you thought the journey was tough so far, you haven't seen anything yet. Get ready for uncertainty and ambiguity like you've never seen it before. But this shouldn't be scary. It should be exciting, because this is what trading is all about. This is why it's called an ART. And it truly becomes one when you change your focus and your learning process. Then everything, including success, becomes possible. And until then, it'll be a distant dream that keeps appearing to be so close and yet stays so far away.

So you need to re-align with a new thought system and then get on the simulator and trade. Take losses. Make mistakes. Be clueless. Don't be afraid of it. It's okay, that's the only way you'll progress. And trust me, progress you will.

Best of luck to you, and I wish you much success.

Ziad

CL CHART

the 3 M: Market structure, Me and Money

After nearly a year starting this blog, I found that market structure is one of the key components crucial for long term trading success. Imagine my suprise when I caught this writing from internet today... http://www.forexfactory.com/showthread.php?t=57639 fti member

Technical Analysis Fallacy

---

Apologies
-no mentor, or course, or literiture can give anyone the holy grail to the secrets of success in trading in the markets.
-"and no one, sells the goose that lays golden eggs, probably the eggs, but never the goose"
Nevertheless, I will humbly attempt.

Since the late 70s and into the millinium.
Many "engineers" have made public, their inventions of reading probabilities into Technical Indicators. Many Technical Analysis Gurus came to the forefront to sell their research findings. To name a few,
The Grand daddy being Charles Dow and his Dow theory which later lead to the creation of the Dow Jones Indexes.
Rene Descarte who introduced the Spiral studies.
Leonardo Da vincci who fostered the fabonacci principles,
W.D. Gann, who introduced Cyclic Studies of Squaring time and price.
R.N.Elliot, who introduced the Elliot Wave Studies
W.Wilders.Who introduced the mathematics of calculating overbought and oversold markets by his introduction of the DI+,DI-, ADX lines and the Relative Strength Index.
The Stocastics, MACDs, ……………………………...etc

If one was to impliment all these studies onto their charts. What you will see is a beautiful piece of art, displaying very impressive hog wash, that do nothing but dazzle the uninitiated. If anything else it 'll confuse you even more.

Then you have the charting specialist who have introduced many ways to chart eg,
Linear Charts, HiLoClose Bar Charts, Japanese candlestick charts, Point & Figuring, John Hill's Bar Chart congestion & reversal patterns, reverse point waves, pivots, fractuals, ………..etc

Today, we find lots of originally and mutated techniques and methodologies available to the Chartist or Technicians.

What many fail to realise, is that all these studies, basically are statistical tables plotted in graphic form to present a "picture" to assist traders in their decision process. The maxim being, that a picture tells a thousand words.

"It is not theirs (the charts) to reason why,
But to signal Sell or Buy,
For the traders to do or die,
Hoping that the signal does not lie,

I would, from my many years of studies, go so far as to say, that they all work, some more than others but they all do serve a purpose. (to give traders, the "guts" to do or die)
If I may borrow from the quotes of Sir Winston Chirchill.
"That you can lie to some people all the time, all people some of the time, but not to all people, all the time."
Similarly, theses studies can work in some market conditions all the time, all market conditions some of the time, but not all market conditions all of the time."

Think about what I've just quoted very carefully.

The problem with some people and some professional Technical Analyst today ( being a certified Technical Analyst myself ) is that they use the Technical studies as if, it were the "Holy Grail" of trading & their pathway to the millions.

How far that is from the truth.
Any person with a good brain on their shoulders, will ultimate come to the realisation that these are just tools. Tools that are built on historical and lagging databases. Moreover the rigidity of the parameters used in the studies imposes rigid responses to changing market conditions. Have we forgotten that the market is a live beast that learns and adapts to trader behaviours? Many have forgotten that the market is the sum total of the behaviour of the participants engaged in the market place. These tools are used for measuring the markets health, not so unlike the thermometer to a doctor, or the measuring tape to a carpenter, just a tool.

Then how is it possible that these studies themselves can be considered the "Holy Grail"?
It may be due to ignorance (being new and uniniatiated), lazyness, or just plain stubborness ( a little knowledge is a dangerous thing). Of course it is not nice for me, to tell you about those who have "a little knowledge", trying to scam those who know less than them. That's another story.
Some do so, because of a very new disease discovered recently, the sickness of "the chance".
If you use the Technical studies as your "Holy Grail", I have only one word for you, GAMBLER.

I put it to you, that, to consider your Technical Studies to be more than what they are is a "fallacy" in trading the markets, not so unlike martingale gamblers' fallacy. It can lead you to a very dark place.

What many traders do not know, or may fail to recognise, is that your success in taming the markets, is comprised of a mix of ingredients. Not so unlike in baking cakes.
I suggest three very important ingredients. One is " Market Structure ", the other is "YOU", then Capitalisation. Of course there are many more components, for the moment these seems of dominant importance, in my humble opinion.

I hope you will think about what I've said very carefully.
I shall try to push these doors ajar for you slowly to show you the light at the end of the tunnel (please hope its no on-coming train), God willing.

regards

---

Last edited by fti, Jun 20, 2010 4:43pm (31 hr ago

Relocated to the new trading room

I went over to the roof to connect the new cable after my tephone service provider told me the many red tapes that I should follow. I connected the wire myself even though I scared of height.
I had convinced my self that I'm that  serious to online trading!

The  new room has a nice cool night breeze than I hope will calm my nerve when trading.

****************


I need a new wire (done)
I need to call technician (done)

I need to dismantle a single bed (done) and drill a hole for the ADSL cable (failed effort, the wall is too tough for the drill, so I have to use the window ..he he)
I need to relocate computer (done)
I need to buy another screen
I need a big poster of Hawaii :-) Oh no bikini, just palm trees at the beach
I need a colour printer to print charts and stick em on the wall ( I think the printer is very important -- traders, like other people... tend to forget)

STRATEGY is what will dictate what your account size

Taken from BM forum for my reference:

http://www.bigmiketrading.com/psychology-money-management/3649-primary-source-income-how-many-have-made-5.html

Account Size "The Magic Number"

---

I do and DONT understand the fixation on account size. At the end it all boils down to "profitability/drawdown/trade opportunity/risk/money management".

For example:

Starting Account Size $5,000
Average trades per day = 10 to keep it simple

70% wins 30% losses

Average Loser 8 ticks
Average Winner 6 ticks.


Statistically on average the results would be as follows

1. Win 5
2. Win 6
3. Lose 8
4. Win 4
5. Lose 8
6. Win 6
7. Win 5
8. Lose 8
9. Win 6
10. Win 4


Thats a net win on average of 12 ticks per 10 trades.

Lets say half a tick ($5) of commission per trade and you have:

GROSS PROFIT: 12 Ticks
COMMISSIONS: 1/2tick x 10 trades = 5 ticks
NET PROFIT: 7 ticks

$70 net profit on an account of $5000 is 1.4% per day !

MORAL OF THE STORY:

Account size protects against the risk of ruin, and effects the number of contracts traded but has NOTHING to do with the Expectancy/Profitability of the strategy.

Your STRATEGY is what will dictate what your account size can be.


Obviously the sample size of 10 is very very small and does not represent the real life scenario of say 8 losers in a row.

So a drawdown of (8 x $80) = $640 is likely. But even in that case the drawdown on a $5,000 account is only 12.8% ( $640/$5000)

If you are netting on average 0.7 ticks per trade it would take you about 92 trades ($640 drawdown/ $7 per trade average win) to get back to even.

If the system generates 10 trades a day its about 2 weeks (10 trading days) to get back to even.

ACCOUNT SIZE MATTERS, don't get me wrong.

But telling people they need a $50,000 account is as crazy as telling someone they need one of those fire fighting helicopters with the giant bucket of water to fill a swimming pool.

A garden hose will do just fine. It just takes a bit longer

My 2 cents!
Jungian

Trading Room checklist

I need a new wire (done)
I need to call technician (done)

I need to dismantle a single bed (done) and drill a hole for the ADSL cable (failed effort, the wall is too tough for the drill, so I have to use the window ..he he)
I need to relocate computer
I need to buy another screen
I need a big poster of Hawaii :-) Oh no bikini, just palm trees at the beach
I need a colour printer to print charts and stick em on the wall ( I think the printer is very important -- traders, like other people... tend to forget)

Trading Room Checklist

I need a new wire (done)
I need to call technician (done)

I need to dismantle a single bed and drill a hole for the ADSL cable
I need to relocate computer
I need to buy another screen
I need a big poster of Hawaii :-) Oh no bikini, just palm trees at the beach
I need a colour printer to print charts and stick em on the wall ( I think the printer is very important -- traders, like other people... tend to forgot)

CL's beautiful charts

No structure in CL market

This week, CL has no structure.
But the good thing, when I move slowly like this....I can feel that....
The market is in fear ;-)



It will make many traders throw the white towels and rest....

Does the Holy Grail to Trading Exist?

I got this from my mailbox...

I throw away WMA >  the last of the 'Mohicans'

Now only candle, lines,and volume

We will see if that a good decision...

***********************

Does the Holy Grail to Trading Exist?  

The short answer to this question obviously is NO.

The medium term answer is MAYBE.

The long term answer is YES it does!

This goes back to the biblical example of the soils ... in this parable only one type of soil produced the proper the bountiful abundance. 

All other soil failed.

In our example of the Holy Grail, if you place a short term view to your trading, then you will burn out on the first obstacle that is thrown into your path.

If you place a medium term view to trading, then you have a better chance of success, but still will fail more than win.

So this leaves us with the Long Term view to trading, and the one that produces the abundance so many traders are searching for ...

We talk about Discipline, Patience, and Self Control as key attributes to a successful trading future, but it definitely takes more than that.

When things are not going your way, taking a break could be an answer to the traders dilemna.

Another is to go back to the simulator and work on your entries and exits without the pressure of a real money account.

With all this being said, the long term answer to becoming a successful trader is to throw out all the bad stuff, and replace it with good.

Your good soil will produce the abundance that so many search for, but never seem to obtain.

You will have setbacks, drawbacks, and drawdowns on your account.

You will question your strategy when things are not going the way you thought they would. 

You will wonder what am I doing wrong ... over and over you will place doubt in your trading ability, if you let this trait takeover.

I believe by having a positive attitude through all things you can work your way through most problems.

No this doesn't mean to blow out your account no matter how small it is ... you need to take time to rest.

Never feel pressured to trade for a living.  If you feel pressure, then this will set off all kinds of bad things or the soil that you are not grounded on properly.

To obtain the bountiful harvest that you are looking for then study, test, and test some more.

Do not allow outside influences to lead you astray.  Stick to your trading method that you have statisically proved to yourself that it will work.

If you stop the insanity of taking on bad trades, and trading just to take on a trade, then I believe with all my heart, you can become a disciplined, patient, self-controlled trader that will WIN more than lose.

Is trading easy?  No, if it was then everyone would do it.  This is the toughest job/career that you will ever pursue as a trader.  You are trading against the best minds in the world.

If you can in the end find an edge that statisically wins more than loses, then you will become the casino, and start taking other people's money instead of them taking your money.

- Tiger Knight

Song: Don't stop believin'

Preparing my trading room - I forgot the printer..

I need a new wire (done)
I need to call technician
I need to dismantle a single bed
I need to relocate computer
I need to buy another screen
I need a big poster of Hawaii :-) Oh no bikini, just palm trees at the beach
I need a colour printer to print charts and stick em on the wall ( I think the printer is very important -- traders, like other people... tend to forgot)

Bought new telephone cable

been busy with other worldly activities - but today I bought a new cable - the shop assistant measured the wire up to 26 meter and then I asked him to walk away with the wire for me to visualise the actual length.  Its akin to seeing  my 'future' .......

Preparing my trading room

This probation period is for me to understand the market.
As my account still not busted within a year, I still have a chance, according to Jeff Quinto

As my 1 year probation period will end soon, I will take my trading to a new level.

I'm waiting to setup a special trading room.
I need a new wire
I need to call technician
I need to dismantle a single bed
I need to relocate computer
I need to buy another screen
I need a big poster of Hawaii :-) Oh no bikini, just palm trees at the beach
It will take more time....
Meanwhile I'm just looking at 2 chart formats looking for lines that connect the dots.


Lines are like pillars- without it the market has no structure. But dont look at the wrong pillars!

26 apr

Trading is a Path to Freedom

FROM DR BRETT"S ENHANCING TRADER PERFORMANCE

http://traderfeed.blogspot.com/2010/01/what-it-means-to-be-free.html

"Let us not forget what it means to be a trader. It means that I am free to own property: shares of a private company or contracts in a commodity. I can take delivery of my property and dispose of it as I wish, or I can trade it to others. My decisions are mine to make; I need not follow the dictates of those who would put other interests--those of gods, governments, or guns--above my own. If I lose, it is my loss. If I profit, the gain is mine.




Freedom means that I have a voice. If I like an investment, I can tout it in online bulletin boards and blogs. If I don't like the way the government is managing the economy, I can vote my conscience, not only at the ballot box, but in the marketplace by investing or withdrawing my funds.



But freedom is even more than that. Freedom is the ability to make one's living by one's judgment, and not being limited to subsistence through the toil of his or her hands. Freedom is the ability of a single individual sitting right here, right now, at a personal computer, to write words that can be read years later, in faraway lands. Freedom is downloading reams of market data and conducting research that, just years ago, would have taken weeks to complete. Freedom is the ability to see who is bidding, offering, buying, and selling in global marketplaces. It is the unfettered opportunity to participate in the economic vigor of developing nations.



Without freedom, there is no trading. Trading is a celebration of economic and political freedom. Slaves are traded; they do not trade.



All this freedom, however, is for naught if we, ourselves, are not free. It is the deepest of ironies that we experience greater freedom--far broader potentials--than those who came before us. And yet, in our lives, in our abilities to master ourselves, we are no freer. Amid opportunity, we remain partial; tethered to our conditioning.



What it means to be free is to be able to choose, to live with intention. The free life is one that we guide: a life lived with purpose, direction, and meaning.



Trading, like all great performance activities, is an opportunity to cultivate the intentional life. Pursued properly, it is a path to freedom."



p. 253-254

Chart can be an optical illusion

I remember when I was in school, I look at figures of optical illusions (OI)
OI can fools the eyes.
And things that can fools the eyes, can fools the mind.
When I review my charts, i realised that they are full of optical illusions
Traders needs to be aware of this fact.

As always - Avoid Whipsaws !

Before I forgot

I learned a lot from blogging my trade. The only problem is I always forgot.

I need to remember this.

1) lines 3 touchs (need extra screen)
2) 1 volume indicator
3) 2 chart formats
4) Be familiar with 2 markets as it will give you a power of choice
5) OHLC lines are the battle zones
6) Marobozu considered as confirmed candle
7) Need to play sentimental music during trading
8) Chart can be like an optical illusion

As always - Avoid Whipsaws !

Internet problem

Due to unknown reason, my trading ISP @home said they have some problem.
I write this post from office.
Hopefully it will back to normal.


 

Teleport King

Trade what you see

This is a good phrase for traders.
And it depends a lot on charts

Talking about charts, I have switched to Sierra chart, I've to familiarise myself with it.
At most time the markets are RANGING around. So I will switch to RANGE chart. Common sense is it?.. not ?.
And most of my mistakes during ranging markets simply because I CAN'T SEE the triggers and force my trades.
That will take me back to As, from Xs. I know. But not from Zero..:-)

 For now, I still simming. And yeah my SIM is always green...wonder why....
Sim has value to a trader like me( I used to hate SIM, as I want to be 'real' trader ASAP)
The best part of SIM is NOT about experience...
 .
.


I don't lose money.

Life indicator

The best indicator, in my opinion, is either the market is energetic or lifeless.
In other word, if the market has energy or not.
Only an exp trader can tell if the market conserving energy (small range), expanding energy (trending), or simply no energy (also small range).I cant explain it further, because it cannot be captured by any trading indicator like MACD, RSI...But sometimes it can be captured by ADX. Sometimes.
Some warning. Lifeless markets could affect traders. Be careful.


Positive SIM trades in ZS. Missed SIM trades in CL.
Self-note: Hi Lo lines is helpful. MA period shortened, ADX 35 added with  ADX 20. A Marobozu alert will be include in my chart if it can be done

Previous Support & Resistance line

I always have put previous day S&R lines on my chart, but from now I will put it in pro-active use.

Ref 1)

http://electroniclocal.blogspot.com/2009_10_01_archive.htmlMy trading method is fairly straight forward:
- I usually only trade against one of the support or resistance lines I have drawn on my  chart.
- When price is near one of these lines I look at my chart to see if there is a setup.
- If “Yes”, I look for it to trigger and I fine tune the entry.
- That’s it. From here, it’s managing the trade.

ref 2)
http://www.mytradingedge.net/2010/04/using-key-levels-to-flip-bias.html
Being aware of price relative to previous key levels (see chart insert) makes it easier to recognise changes in trend and flip your direction bia

1 Most important lesson

Today I review my blog and I found that most (all, actually) my mistakes are caused by whippy whipsaws...
Most my winning entries exited as losers.
I should learn to avoid those whippy whipsaws !

Brand New