fx and technicals
- Thread starter cashclay
- Start date
I use my fingers to feel. Do you have a more direct question? Ask a question that can be back tested by anyone, but if you ask questions based on news, by the time you have a method to react to news, it happens in nano seconds. Unless your method is automated, I believe the human brain is too slow to react. And just cause something is automated does not mean being profitable either, slippage during news can be staggering, I have filters in mine as I won't take entries too far from where system says to get in, some moves happens so quickly that if I allowed any entry, it be where I would have gotten out.
Long ago like 26 years ago, I placed a limit entry to get short in the Yen and had placed limit to get out farther below, news came out that I was unaware, and market dropped and jumped over my sell limit and filled me Long, cause at the time you called in your orders and I called and floor clerks said it was not filled and I cancelled it and told them to cancel the long/they said that got filled, I got filled near the bottom of the move and jumped back up-I said to exit that trade for nice profit. You would not believe how scared I was after that trade, didn't trade that market for a month till I learned more.
Long ago like 26 years ago, I placed a limit entry to get short in the Yen and had placed limit to get out farther below, news came out that I was unaware, and market dropped and jumped over my sell limit and filled me Long, cause at the time you called in your orders and I called and floor clerks said it was not filled and I cancelled it and told them to cancel the long/they said that got filled, I got filled near the bottom of the move and jumped back up-I said to exit that trade for nice profit. You would not believe how scared I was after that trade, didn't trade that market for a month till I learned more.
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I have to agree with Handle123. Although it sounds a bit mean to say I would tell you " I have no feelings". I try to leave my emotions out of trading. I do not think of my trading account money as an emotional attachment. I think of it like a business decision. How much risk vs how much reward. If it's not enough move on. No sense being emotional about trading. It never helps.
I also try not to ask WHY things are happening nor do I try to understand it. I just accept what I see in front of me and react to that. To me technical analysis is EVERYTHING. I know most here think I am full of shit and spewing voodoo when I use TA but it works for me. To me TA tells everything and assimilates every piece of information known to man at that time including some not know widely. Personally, I don't give a crap what the news is. I just care what the market and others care about the news and their reaction to it. It will be revealed in the TA and price action and that tells you what to do. Does a surfer really care about th physics and WHY the waves exist or are as big as they are?. No I just care about where the next wave is coming from.
Your argument is quite abstract. You can't interpret information unless you know TA and price action.
Yes and no;
yes, information/news provide good volatility and highly important news change the direction of a trend. But pure fundamental analysts cannot survive in the market for long cos they don't have skills to find optimal entry /exit., and a lot of them do not have the knowledge of risk management either
no;TA and price action work as translation tool. How can you translate the chart without having the knowledge of TA and price action? you'll find the deadend soon.
There is a big difference between demo and real trading.
I think TA becomes more and more useful as your timeframe goes higher - If your trading using weekly and monthly charts, TA is more useful because the fundamental factors have had time to manifest themselves as recognizable visual chart elements. On smaller day-trade intraday sessions, I find TA to be of minimal importance - look at news flows, whole number S/R, small speculator retail sentiment, and session average ranges.
Personally, I find that smaller day-trade intraday sessions are exactly where I can use TA most effectively—primarily because I like to lock in profit on a daily basis and am inclined to avoid drawdown at all costs, if possible.
I was using such a system for a project intended to see if I could parlay a small opening trading account balance into a significant sum within a year. I discontinued posting entries on that thread once I was completely convinced that this was possible in that I did not wish to keep it going just so I could gloat, and because I wanted to temporarily suspend the experiment while I strengthen a couple of weaknesses I saw in my approach.
That was about three weeks ago, but as of this morning, it appears those weaknesses have finally been fully addressed, so I plan of resume the project next week.
In the meantime, I wanted to document my activity without adding to any of the journals I already discontinued or establishing any new ones, and this seemed to be about as good a place as any.
I should have had only one losing trade after all the adjustments were in place, which was accomplished following the initial trade. Why I sold USDCHF for a $49.84 loss is an absolute mystery to me!
Also, the problem of my average loss trade being larger than my average profit trade should be easily solved by avoiding such mistakes in the future, and by leaving my original take profit targets in place instead of adjusting them so I could pocket initial gains as soon as I saw a given trade was working out and go do something else rather than monitoring the trades or worrying about something “freaky” happening while I was otherwise occupied.
(P.S. I kind of thought whole number S/R and session average ranges WERE part of TA.)