Learning to read Price Action with P&F Charting

Holygrail,
Thanks - that's a good enough reason to not use any leverage. Sensible approach!

Are you willing to share approximately what percentage gain you've made per annum since you started using P&F methods successfully?

(Also, assumming your trading account is only partly invested in stocks at any one time - is your increase expressed as a percentage of your whole account or just as a percentage of the funds you've invested?)

I'm really just trying to understand what returns someone could reasonably expect to make - assumming they use P&F effectively and assumming they only look for trades which are 'good bets' rather than jumping in on everything that could be a signal (which looks like your approach).
 
Quote from HolyGrail:

No, I don't use any leverage. Why? Because I don't need or want to. I am at an age and financial condition where protection of assets is by far the most important aspect of my trading. I want consistent returns above the market. I'm not out to set any records, or win any contests.
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For those still finding their way, post the above quote to your monitor and read it prior to making any and all trades. I kid you not.

And for those who feel they are not at an age and financial condition where protection of assets is the most important aspect of their trading, I refer you to the last two sentences. Holy Grail not only just shared a nugget of 100% pure gold with you, but included a mountain of wisdom on how to keep it and build on it.

If there should ever be a Hall of Fame for best quote on ET, I propose that the above quotation lead the way.


st
 
Quote from Sam20080617:

Holygrail,

I'm really just trying to understand what returns someone could reasonably expect to make - assumming they use P&F effectively and assumming they only look for trades which are 'good bets' rather than jumping in on everything that could be a signal (which looks like your approach).
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I have no clue what one can reasonably expect. It depends on your timeframe, your signals, your targets, and your patience. This is a trend following system. When the market is trending you will make good money, when it's not you won't. It isn't different than any other type of trend following system.

I mentioned previously that this is a work-in-progress for me. What the system has done for me is kept my on the right side of the market at all times. Knowing when to be long or short is half the battle. Knowing what stocks to stay away from is another important step.

I'm sure there are some people who have already tried this and have not been able to make money from this system yet. I'm sure there are others that have done well. The more charts you see, and study every day the better you will get at reading price action. What one pattern does in a downtrend may not yield the same results in an uptrend. Only screen time will give you the answers you are looking for.



Thanks for the kind words Stealth.

There are so many people trying to turn 1000 dollars into 100,000, or 100,000 into a million. Everyone wants to build wealth immediately. Wealth is built one brick at a time. 18% returns double your money every 4 years. There are so many here that think 18% is an embarrassing return, and that any good trader can do that in a month or week. Maybe they can, but most can't. The risks you take for larger returns may seem worth it, but in the end most fail for a reason. Risk is ALWAYS that reason.
 
So far, my testing of the Neutral bias swing trading using PNF has been looking good. (approx even $ amount of long and short stocks)
Although last week was a wash. ( Short stocks went up just as fast as the long stocks). This week the longs are creeping up and the short stocks are plummeting.

Although my goal to do it on a weekly basis doesn't look realistic, given my current situation. ( I 'm gone a lot)

It appears a 1% per week gain may be possible, but even a .5% would be acceptable.
I'll post results, as soon as I can figure a better way to upload a chart of the portfolio.

Sure would like to see results of other people that are swing trading more than one stock at a time using Pnf. ( What signal they got in on, how they performed , and when they got out.)
 
Too bad Italy still doesn't use the Lira....you'd actually be able to buy something with your $$$.

Have a great time, just stay away from Naples. They're still having garbage problems there.
 
Quote from HolyGrail:

Good trading to all. I'm off to italy for two weeks first thing in the morning.
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Welcome to Italy, then.
Hope you'll have a good time here with us.
 
Quote from HolyGrail:

Good trading to all. I'm off to italy for two weeks first thing in the morning.
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wish you have a good time in italy ......i like the topic ,thank you for share what you know ..........
 
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