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    Very basic newbie questions

    Another free advice: Please be very sceptical of people soliciting you of money, selling systems, make-money-fast schemes and basically alot of empty but convincing promises. Often, these people don't make enough at trading but don't have a day job either, so need other income, your money. It's...
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    Risk (pain) vs Reward (gain)

    Looks good and should be scale-invariant concerning scales of axis. Though, you will still have the conundrum of scale of rates, ie. "if I halve risk I will gain more reward relative to that huge decrease of risk". And you could always decide that the current "max reward" point is...
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    Risk (pain) vs Reward (gain)

    Yes you got it. I don't know how to prove it changes the point of maximum perpendicular distance between the line and the curve, but I suspect it may have some effect. Probably not too much though.
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    Risk (pain) vs Reward (gain)

    Please watch the scales on the two attachments in my previous post and what they do to your green optimum. It seems the method/solution is not scale-invariant. If it's based on a log-function, I think you will be hard pressed to find a perfect optimum without using some other criteria. Time...
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    Risk (pain) vs Reward (gain)

    Forgive me a possible silly question, but has the optimal point changed now (please see attachments)? If this is a pure/approximate log-function, why would you expect an optimum based on that graph alone. Reading the in-depth explanation above, most of which fly way over my head, are these...
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    Risk (pain) vs Reward (gain)

    I'm wondering, what would 10 - 20 consecutive losses mean for optimal leverage? Thinking of avoiding catastrophic loss. Is really all else being equal in this graph, ie. no difference in time, number of opportunities per time, fill, margin, agreements, etc.? It still somehow feels like an...
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    Risk (pain) vs Reward (gain)

    Just add all the costs to risk. Make it as real as you can. Be honest and get rid of that theoretical stuff. Is low risk still attractive then? Optimal RR will depend on your inevitable base/average costs. Keep in mind you are optimizing on aggregates, so it wont be real, or are you seriously...
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    What is Technical Analysis? Why does it work?

    There are those of us who do listen and study. Havent reached 10k hours yet it seems but getting there. Its been educational, in a different ways than school, work, anything. Its good to hear from someone who have walked the path.
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    What is Technical Analysis? Why does it work?

    Why 50%? How can you assume anything without a defined trading plan with risk management? Please give a rationale if you have any.
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    What is Technical Analysis? Why does it work?

    Seems to be a pattern that many of the best threads in the hall of fame threads on ET was started with naive questions such as this thread. Just sayin'. As for reading ALL material on ET, who has the time? However, you are free to search out interesting threads and posts rather than just browse...
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    What is Technical Analysis? Why does it work?

    That bad day today, huh? Am feeling grumpy today at least. Some of us are new to this forum and some are new to trading. It's to be expected, and it was so in times past as well. Maybe you have learnt something over the years you'd like to share, or maybe you've read enough forum posts...
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    How do you avoid choppy markets?

    The night time ES chart you can eliminate. The resolution of price movements just wont justify the risk. Also I wonder how anyone can be fast enough to trade 1 min. Maybe with a good ui or some automation. You need to decide what setups you wanna play. Forget about HFT. Why trade other...
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    What is Technical Analysis? Why does it work?

    Its actually unbelievably simple: For every period of price timeseries, there are tendencies that traders want to exploit by trading. If you buy at a price and sell later in a profitable direction, you may profit from trading. TA is simply one of the most direct legal approaches as it involves...
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    Either it's 1 or 0...

    Completely agree. The word "random" gets thrown around alot, all the while saying people generally have poor understanding of randomness. Well, that goes both ways! It's true you can often spot patterns in random-generated data, and people often find patterns that are of no consequence. But...
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    Either it's 1 or 0...

    It's a way to find TTC.
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    My mistakes have made my best systems...anyone else?

    If it's an obvious price level, then I believe the market will quickly discount the opportunity. Not because it's oh so "efficient", but because participants will become more active there. So it makes sense that illogical systems may work better. However, it may be the market that is illogical...
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    How do you avoid choppy markets?

    What about turning the question on its head: When do you want to trade a market/instrument, and when do you not want to trade it? When you find an answer to the first question, the second gives itself, though researching the second can help answer the first ;) Point is, your tactic / strategy...
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    What are the steps to becoming knowledgeable about the market?

    There are people who are very knowledgeable in the markets. In fact, so much, that they can explain every tick up and down in their favourite markets, and are often employed to do so in various publications, after the fact mind you. But, are these people consistently profitable? If knowledge...
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    What are the steps to becoming knowledgeable about the market?

    The technical way: Study the charts. Find any stock going up. Point is that by trading stocks short-term, you only really gain by price going in your favour. Find "optimal" entries. Explain to yourself why your method is flawless. Paper trade your method. Say "Duh!" Refine Rinse & repeat ...
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    Why Is The Obvious Not So Obvious?

    It's about the hardest part of trading I believe. How much should you give back to the markets, and how soon should you let go of a potential loser? With all the risks and costs in trading, we are all losers from the start, or delusional. So you need alot of conviction to stay long enough in a...
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