Make an effort to make winners at least 2x bigger than losers, then losses wont matter.
MacAttack
- Thread starter macattack
- Start date
CL is especially unforgiving in this regard. It's got amazing inertia in a strong trend. I've been posting a lot lately about 1-min continuation in a strong trend with CL. Once a key level breaks with conviction and there's airspace below (or above if the trend is up), you can pretty much do no harm putting on a trade in the direction of the trend on any 1-min pullback, even a 10-tick excursion from the new LOD/HOD.
Here's Al Brooks' take on trying to predict the turn of a trend:
If you find yourself drawing too many trend channel lines or looking at a 1-minute chart, then you are too eager to find a reversal and are likely missing lots of great With Trend trades. You are in denial and are losing money because of it. Also, since most trend channel line overshoots and reversals are minor in a strong trend and fail, you will be trading lots of losers and wondering why these patterns are failing when they are supposed to be so good. Wait for a trend line break on the 5-minute chart before looking for a countertrend trade and look at all those minor trend channel line overshoots as With Trend setups, and enter where the losers are exiting on their protective stops. You will be much happier, relaxed, and richer, and you will be entertained by how well they work when intuitively they should not because the market appears to have gone much too far without a correction.
That sentence in bold was a huge breakthrough for me.
1st LONG Retracement. Limit order at congestion/support area. Tried to break out 3 times & failed.
9 Ticks
2nd LONG Support level from 10-minute chart. Test of swing low 1-min chart. Gave up on it, seemed to be stalled.
11 Ticks
3rd LONG HL within the range after a small shakeout. Anticipated breakout. Exit was 3 pushes up on 15-second chart.
20 Ticks
TOTAL
3 Winners
40 Ticks (minus commissions)
NOTES
My goal is to catch the major swings. I didn't exactly do that but at least I stayed in control & made what I feel were reasonable decisions.
I was thinking about my losing day yesterday.
I'm pretty good mentally until I lose, & the account goes in the red for the day.
Then I get frustrated, uncomfortable, desperate to have a winning day. Then if another loss occurs I feel hopeless like there's no way I'll ever get back to even. Then I start making bad decisions.
I start overtrading & doing nothing more than reckless gambling. I just want the uncomfortable feeling of being in the red to go away as quickly as possible.
That tends to not work out so well, so I'm not going to do that anymore.
9 Ticks
2nd LONG Support level from 10-minute chart. Test of swing low 1-min chart. Gave up on it, seemed to be stalled.
11 Ticks
3rd LONG HL within the range after a small shakeout. Anticipated breakout. Exit was 3 pushes up on 15-second chart.
20 Ticks
TOTAL
3 Winners
40 Ticks (minus commissions)
NOTES
My goal is to catch the major swings. I didn't exactly do that but at least I stayed in control & made what I feel were reasonable decisions.
I was thinking about my losing day yesterday.
I'm pretty good mentally until I lose, & the account goes in the red for the day.
Then I get frustrated, uncomfortable, desperate to have a winning day. Then if another loss occurs I feel hopeless like there's no way I'll ever get back to even. Then I start making bad decisions.
I start overtrading & doing nothing more than reckless gambling. I just want the uncomfortable feeling of being in the red to go away as quickly as possible.
That tends to not work out so well, so I'm not going to do that anymore.
I don't understand the incredible urge to keep buying in a downtrend. I know other amateurs do the same thing. Not sure what to do at this point.
This game is hard. [/B][/QUOTE]
Sir,
Do not be biased in your trading! If the trend is downward trade downward. Do not anticipate what price is going to do, just let price unfold, if it continues in your favor well and good, if it goes against you, you get out and wait for the next trade.
Don't believe it to be hard or easy, just be neutral about it. Once you are in a trade, you are either going to win or lose just accept it. The goal of all goals is to be detached about your results and let price flow.
Quote in Sanskrit from the Bhagavad Gita:
karmaṇyevādhikāraste
mā phaleṣu kadācana |
mā karmaphalaheturbhūḥ
mā te saṅgoâstvakarmaṇi |2.47|
In English:
You can exercise control over your actions alone,
never on the outcome of your actions.
Do not be anxious about the outcome of your actions.
Do not develop a habit of inaction either.
This is the best English translation of the ancient Indian classic if you're interested: http://www.amazon.com/Bhagavad-Gita...&qid=1384385295&sr=1-8&keywords=bhagavad+gita
This game is hard. [/B][/QUOTE]
Sir,
Do not be biased in your trading! If the trend is downward trade downward. Do not anticipate what price is going to do, just let price unfold, if it continues in your favor well and good, if it goes against you, you get out and wait for the next trade.
Don't believe it to be hard or easy, just be neutral about it. Once you are in a trade, you are either going to win or lose just accept it. The goal of all goals is to be detached about your results and let price flow.
Quote in Sanskrit from the Bhagavad Gita:
karmaṇyevādhikāraste
mā phaleṣu kadācana |
mā karmaphalaheturbhūḥ
mā te saṅgoâstvakarmaṇi |2.47|
In English:
You can exercise control over your actions alone,
never on the outcome of your actions.
Do not be anxious about the outcome of your actions.
Do not develop a habit of inaction either.
This is the best English translation of the ancient Indian classic if you're interested: http://www.amazon.com/Bhagavad-Gita...&qid=1384385295&sr=1-8&keywords=bhagavad+gita
Where was this taken from NoDoji? I have his videos, but I doubt you transcribed it from a video, so it must be from one of his books. They are all quite longish, and from what I read in the reviews, he could cut himself off a bit early and still get the point across. I know in the videos some things he says is just repetitive. Not knocking his work of course as I am trying to learn his methods, just wondering if the books are worth reading if I already have his videos and if the books really are longer than needed.
Reading Price Charts Bar By Bar, page 73, paragraph 3.
It's from Chapter 3: Trends
The book is useful for experienced traders, but close to incomprehensible for beginners. I got it when I'd been trading for about a year and a half. It was really difficult to grasp and I spent hours and hours studying it.
Now that I've been trading for almost six years, it's an easy read and makes perfect sense
There are some markets where counter-trend trades are great like ES, but running markets like Crude Oil, currencies, Russell simple not worth going against the over all trend. It is far better to have 5-6 great trades in a day then to fight and struggle trying to find the extreme for day trading. Counter trend produces way too many over trading days, between slippage and comm, plus high blood pressure puts undue stress on body which in turn often times makes us take trades that are not best signals to take. Find the signals that are "slaps in your face" or "the money sitting on the floor" setups and sitting on hands till you can write down setups.