Joabs solutions for struggling traders

J

Joab

http://www.youtube.com/watch?v=plF6nFVDhV0

Step 1:

Listen to this video every morning.

Step 2:

Put up a 5min chart and a Daily chart right beside it.

Step 3:

Ask yourself this question:

Were can I place a trade that risks $1 to make $5. (adjust this accordingly point is 1:5).

Step 4:

Listen to the video again and WAIT till the trade gets real close to your entry price.

Step 5:

WAIT some more

Step 6:

WAIT till the trade goes past your entry price and gets even better

Step 7:

Pull the trigger, place your stop in the platform, place your limit in the platform and listen to the video again and leave the damn thing alone till one or the other happens.

I just turned 70% of you into profitable traders.

Have a nice day :)
 
Quote from Gabe2004:

Nice song Joab.
How do you determine the point where 1 point risk will maybe turn into to 5 point profit?

Thanks

Gabe
More...

Gabe,

That's kind of the whole point.

IF you can't see a clear Entry, Stop and Target.

Learn to be still.


If you like I could give you some examples but that is secondary.

What should be primary is developing a method around the 1:5 , 1:6 , 1:10 etc... premise.

1:1 1:2 even 1:3 wont cut it, in the long run.
 
Thanks Joab for your reply.
If you agree that one cannot tell what the market will do from one momet to the next then how can one decide which are the points that will give him the 1: X risk reward ratio?
If one comes up with such points it means that the person has a reasonable expectation that those points will be reached but then what are those expectations based on?

Gabe
 
Quote from Gabe2004:

"... how can one decide which are the points that will give him the 1: X risk reward ratio? ..."
More...

1. You need to figure out THIS, and
2. You need to have stop discipline.

Do that, and the world can be your oyster.
 
Gnome

Yes indeed, those two factors are amongst the most important to figure out..

And yet it is fairly easy to adopt a working model that handles both.

1.) For risk/reward, a lot of professionals use pivots, and specific MA's. Also some use landmarks from Market Profile calcs. In general these allow you to see what a lot of others see....places where momentum may change....stopping off points where a trader can scale out or take profits on a small position (if thats the way they trade).

2.) I "tune" stops to volatility based on a percentage of the last 10 days average true range. Some use specific landmarks on a chart to tell them when they are wrong. I have seen good players work well with both approaches.

I don't want to hijack the thread so I will talk more about that in my own..

Seeya
Steve
 
Quote from steve46:

Gnome

Yes indeed, those two factors are amongst the most important to figure out..

And yet it is fairly easy to adopt a working model that handles both.

1.) For risk/reward, a lot of professionals use pivots, and specific MA's. Also some use landmarks from Market Profile calcs. In general these allow you to see what a lot of others see....places where momentum may change....stopping off points where a trader can scale out or take profits on a small position (if thats the way they trade.

2.) I "tune" stops to volatility based on a percentage of the last 10 days average true range. Some use specific landmarks on a chart to tell them when they are wrong. I have seen good players work well with both approaches.

I don't want to hijack the thread so I will talk more about that in my own..

Seeya
Steve
More...

You're right on both counts.

Traders, especially inexperienced ones, need to keep in mind.... "The ONLY thing about trading you can control for sure is NOT TAKING BIG LOSSES on individual trades"... That's "stop discipline"... can't succeed without it.
 
Quote from Gabe2004:

Thanks Joab for your reply.
If you agree that one cannot tell what the market will do from one momet to the next then how can one decide which are the points that will give him the 1: X risk reward ratio?

Gabe
More...

Gabe,

No one and I do mean no one knows what the market will do for certain.

IF any one did, then they would be the richest person on earth.

This is not a business of certainties - it's a business of probabilities or possibilities.

Some use technical analysis, some use fundamental analysis, some use moon phases etc etc...

This thread is not to share specific strategies so much as to share what I feel are the best attitudes to develop your own strategy.

:)

steve46 - feel free to contribute
 
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