AHG - Profitable Strategy for Struggling Traders

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Quote from booyah:

Hey Guys,

Hope all of you are trading well these days. Piscuy its good to have you in the forum and if Anek speaks highly of you then we can definitely learn from you.

I know its all about price action and trend following. and I know the main variables are price and volume bars but does anyone use any type of Technical Analysis for confirmation or just to enhance the trade probability. I know Anek doesn't since he preaches price,price,price. but anyone else Piscuy ? any other trader.

For example, at an end of an uptrend to confirm if its gonna head down and you see and feel it coming, anyone look at the MACD signal line crossing then zero line crossing. just as an example. or possibly look at some type of oscillator.

Basically does anyone have some sort of companion tool, or something extra different than the price and volume ?

Please let me know if you guys do have something different. that goes along with price and volume.

I know Technical Analysis is slow and conflicting and distracting, I've seen what you guys mean. The trend before everything else. but if there's anything else for guidance I'd appreciate it.

Thanks to everyone for posting their charts and feedback.
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I'll have you do a little exercise so that you answer for yourself why so many focus on price, price, price. Yes, oscillators can give some entries, yes macd can give some entries. Now what happens when they diverge? Most of the indicators i know have divergences. Also keep in mind that if you find the need to use an indicator (I cant stop anyone from trying) use it as reference, but ALWAYS base your trade on price action.
I am not using any indicators and like everyone else I did at one time. If i had to choose one to use I would go with CCI. Although you would have to learn how to use it and the quirks it has. While you use indicators you will always sooner or later get a conflicting signal, so then you come to the dilemma of which to trust. When your trading with price things are or things are not. It is going up or not, its going down or not.
Everyone enters a trade with the expectancy that it will do something, if it is not doing what its supposed to do exit the trade and look for the next one. Trade with reason, exit with reason, conserve capital and in the end profits will come.
Hope this helps and good trading.
 
Thanks P.

I already noticed conflicts with the trend and signal, and it was confusing, in any case I was curious if you guys use anything in conjuction with the basic price/volume trend model.

I was hoping to find one more tool to assist in increasing probability. For example in and uptrend during the retracement before the next surge up. If the volume is falling during the retracement that is a bullish sign. That along with trendline intact. Is there any other signal/tool/indicator to buy that retracement. that would help me in this case.

I whole heartedly agree with what you and others are saying, and the Price is the most important aspect.

So far TA hasnt helped but I try to keep an open mind and learn (trial and error) since it works for some while others hate it.

Thanks.
 
Quote from Piscuy:

How about scaling out? When your scaling out you are sacrificing possible future profits for the certainty of locking current profits.
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Been enjoying this thread.

The ideas here are very similar to what I have been doing for quite some time.

I have found the above to be the main reason that I have been able get to the next level in my trading. For the longest time I was one contract only and missed all the good runs and took to many small wins and to many small and big losses, HOPING, for the turn around and home runs. Fairly typical I would say.

I figured my entries were fairly decent as I would generally have some profit potential, but after making $15 to $30 I would try for more then loose ($125). Not very conducive to continued trading.

I went to a cheaper margined contract and traded in multiples 2 to start and then to 3,4,6 etc. and in the words of Robert Frost "It has made all the difference".

If you cannot move to another contract and try this then try to supplement your account so that you can scale.

You will be amazed.

Make 'em pretty, Chris
 
Quote from Piscuy:

I'll have you do a little exercise so that you answer for yourself why so many focus on price, price, price. Yes, oscillators can give some entries, yes macd can give some entries. Now what happens when they diverge? Most of the indicators i know have divergences. Also keep in mind that if you find the need to use an indicator (I cant stop anyone from trying) use it as reference, but ALWAYS base your trade on price action.
I am not using any indicators and like everyone else I did at one time. If i had to choose one to use I would go with CCI. Although you would have to learn how to use it and the quirks it has. While you use indicators you will always sooner or later get a conflicting signal, so then you come to the dilemma of which to trust. When your trading with price things are or things are not. It is going up or not, its going down or not.
Everyone enters a trade with the expectancy that it will do something, if it is not doing what its supposed to do exit the trade and look for the next one. Trade with reason, exit with reason, conserve capital and in the end profits will come.
Hope this helps and good trading.
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Thanks for all your help and input too Piscuy. The information is very helpful. I am finding that your advice about --exiting when your trade does not do exactly as planned-- is becoming a better idea then taking full stops. Looking forward to more quality wisdom and advice.

~Cx
 
CX its funny you mention that. I had a couple of trades that weren't moving/working from entry and didnt do what I anticipated. I felt I was gonna head the wrong way and I exited before it hit my stop. losing a couple ticks instead of points and then the price ended going past price.

So... It really is true that a winning trade should work from the beginning. Simple yet so true.
 
Chris,

Welcome to the journal.

I identify with your post a great deal because when I was struggling in equities this is exactly what I had to do to turn things around.

If I may, please look into averaging up and study it carefully. The hardest part of pyramiding into the winners is the amount of small winners that will eventually become small losers or break evens, at first it produces numerous psychological hits.

I never thought I could make over 90k off a single signal without using an absurd starting position until I started using this methodology. Needless to say, it would be impossible for me nowadays to lose over 1% of that in any single trade.

Anek
 
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