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I hear what you say but very often the stop it taken out and the market immediately snaps back and makes a new high. That is why I keep, with great discipline, buying the new highs see a few ticks of profit and then get stopped out at break even again and again. In a market like the UK FTSE my...

Never let a profit turn into a loss. On the face of it, this looks like very sound advice. However I find quite often adhering to this rule costs me money although I am right about the direction of the market. Here is a scenario as an example. Go long at 37 stop at 31 profit target 47...

So many gurus and courses tell the novice trader "the trend is your friend" and that you should always go with the trend. I find that very often by the time you see the trend its too late and if you enter the market in the direction of the trend you loose money. Is the trend really your friend?

There seems to be no end to various "successful" traders who are happy to share their knowledge with you and teach you how to make money from trading. It does raise the question that if they are so successful, making 10s or 100s or thousand of dollars a year, why do they need to go through the...

But how would you know which direction the market is going to go. I thought the whole idea of the breakout is that you go in the direction of the breakout.

Is it correct to assume that most breakouts fail and,therefore, statistically speaking a better strategy would be to sell into upside breakouts and buy into downside breakouts. I mean this as purely a good entry. Obviously one must be careful in case the breakout may have follow through and an...

Interesting. If I understand you correctly you are suggesting buying the breakout out of the upper trend line of an up trending channel and selling the breakout out of the lower trend line in a down trend channel. Have I understood you correctly?

Trading breakouts seems to be a popular method to trade and is quite often written about. However, there are very few detail examples cited on the subject. I have managed to define the problem as follows, and by no means do I claim the following list to be complete. 1. How do you define...

I posted this thread and am not sure if I have had an answer. It seems every body is having a go at this guy called Jacek Hershey. Any ideas on some non subjective method of deciding when a S or R has failed?

I once read in a book on trading that if you buy a support and you are stopped out you should not be disappointed. You were not right on this occasion but you must be disciplined to try again. I find that sometimes this leads to buying the the market at the same price a few times and getting...

I think you are correct in asserting that I am using the indicator as a an entry exit signal as well. Perhaps I should seperate the trend indicator from trade signal generator. Is that what you are suggesting?

Aren't indicator supposed to help you get the edge you need

With so many indicators available on the market for establishing trends, it is difficult to know which one to use to achieve more consistent trading profits. I have been using a 20 period moving average on a 2 minute FTSE bar chart for some time and notice that it generates many false signals...

You are right. If I knew I obviosuly would not ask. Is this a forum for traders of every level trying to help eachother or is it a forum to give some people an ego trip!! You do disappoint me and apologies for the tone of this post but I think any fair minded person would have some sumpathy...

Thanks for a very thorough and informative response, especially the role that volume plays. However, I am a bit confused with all the initials you use like SCT FTT ....and also what do you exactly mean by annotating the chart?

I think the traditional definition of scalping was pocketing the differecne between the bid and ask which the floor traders (locals) were very good at. This was because they could move much faster and execute trades much quicker than a retail trader who had to phone his/her broker to put a...

Limitupmike, I would be gratefu if you would elaborate on what you mean by short term swings. If you mean intraday swings then perhaps you can site an example with the help of an intraday chart or two. Thanks

Goodgoing, Just an academic question. If intraday returns are normally distributed with a zero mean cannot one apply the same argument to longer term time frames. If the argument that "markets are fractal" is a valid one the does not the same statistical laws apply at every fractal level?

Certainly very grateful for your two cents but here is the question: When is a pull back, a pull back and when is it a trend reversal? I agree with you that one should not chase the market. I also remember many a time that I have been very patient and waited for a pull back only to see the...

With the explsibe rally in the stock markets a number of traders, including yours truly, have been left out. I have been very reluctant to jump in and every day the market goes higher. What strategies do you suggest and under what conditions would you join this trend.