Real happiness lies in gratitude.


QURAN IN ENGLISH - The most important book that everybody should read.

Thursday 25 February 2016

No trades and adapting.

And now I'm adapting nearer to CL.
I found that in choppy situations, its ideal to use candlestick.
For trend , its better to use bars.
I open a new chart tab for candlesticks and choose which tab to use.
In war, if you fight the enemy long enough, the enemy will adapt.

Wednesday 24 February 2016

About previous post of Money managemnt

Thinking over the post , and based on my experience,
if you have a good MM - later you'll find that you're losing slowly, as you cut loss fast. Money management - to use an anlogy of soccer.. is a kind like defense players and goalkeeper.
So, this MM is a defensive part and it's only 50% of full equation
Another 50%, in soccer..is like midfield and striker players. Miedlfield is overall environmnet and striker is the actual trade trigger -- In trading, its call, an edge. The offensive side.
Both MM and edge are important. Defensive and offensive.
Myself  - has good MM but my edge is mediocre or weak at this moment.
And Funny, my brain cracking an offensive tool on my chart while i'am thinking about this.
Thank you to the writer.

http://www.elitetrader.com/et/index.php?members/chubbly.488786/


To think later on this post at Elite Trader
****************************

I posted these thoughts in an unrelated thread but they would have been more appropriate here.

Money Management is the most important thing you can do because you have 100% control of it. You have 0% control if a stock/currency/derivative goes up or down. Sit and think about that for a long time.
MM is 1000x more important than doing T.A. I actually never look at charts. T.A is for fools who think they can predict the future. They will claim they that predicted moves. Guess what a price can only do 2 things, go up or go down. There is no third dimension it can go into!
So someone doing TA should be right at least 50% of the time. People remember the times they were right and suppress the memories of when they were wrong which skews their thoughts.

If you use TA and are wrong 50% or more of the time and losing money sit and think about that for a very, very long time. I would suggest not trading again till you have come up with an answer.
Draw enough lines on a chart and you will see price react to them

Think about this. With absolutely no TA I could enter 1000 total random positions, 500 would immediately become winners. As I said if you do TA and lose more than 50% of the time there is something seriously wrong with your understanding of trading and MM

Here is a good exercise that I used to do with forex to sharpen my skills. Take the 32 main pairs. Randomly buy and sell so you are 16 buys/16 sells.
Now manage the trades as you see fit, do whatever it takes but NEVER EVER look at the charts!! only look at the total P/L
Do this over and over and over and over until you realize that you can become profitable using only MM. Remember you will be immediately profitable on 50% of the positions by doing absolutely nothing.
The first few times are hard. But you have to bend your mind and think differently.
NEVER look at the charts, human brains are wired to look for patterns. 
The results will be enlightening and profitable for those who are willing to take on the endeavour.

One more thing for the TA people. Consider this, Steve Nisson is considered to be the father of candlestick analysis having brought them to N.A from Japan and written many books about it.

Yet he does not trade..... 

You would think the man who is the master of candlestick patterns would be able to use his knowledge and use the markets like he is raiding a piggy bank

Yet he does not trade.....

If the Master of chart analysis does not trade what hope do you have?

This was one of the critical pieces of information that I learned and I stopped using charts and then I became profitable.
The only thing I look at are option chains

Tuesday 23 February 2016

Traders common problem - (Brain - trading plan - chart settings - execution)

Brain fatigue will spoil a well laid out good trading plan.
Thats why some traders need automation.

Good trading plan need to be presented in chart, thus brain memory should be used purely for execution.

Another problem is to choose correct tools and correct settings to use on charts that closely resemble the trading plan.

Once traders solved these interlink problems, their trading plan execution might improve.


Monday 22 February 2016

-11 tick.

Again, exactly opposite of the other side...
Despite that  I'm more confident to trade, therefore I bought Malkolm chair from Ikea,
This chair is quite hot after an hour but comfortable.
Another model is better..Markus that has mesh string at the back but the price is double and I'm a cheapskate at this moment.

Friday 19 February 2016

+ 3 and the wife

My Wife came to the trading room again and discussed something internal matters.
Of course I got distraced as I cant divide the attention...I missed that 2nd chance of 25tick move, once in blue moon nowdays.
The pattern so predictable, so next time I will proceed the button no matter what if I get the signals.

Wednesday 17 February 2016

Ugly Chart

An Ugly chart - and no signals ..
abandon ship

Choppy

Post Presidents Day and New contract coming made choppy movement.
Waited at the screen with my mouth gaping open waiting for That Trigger that finally never came.
Will try again on Wed as EIA will be on Thu this week