Please teach me.

Some serious suggestions in no particular order but equally important. Did not read through the whole thread so apologies if anything has been repeated.

* Use lines not indicators, particularly diagonals, not necessarily trendlines although those are useful too, just not in the typical sense.

* The suggestion about eliminating the words overbought and oversold from your trading vocabulary is a good one

* Careful with small diminutive timeframes. If daytrading stick to 60min to 15min, depending how the current action is on that particular instrument. If swing trading use the daily chart.

* Stick to winners at least 3x the average loss or you wont make it far.

* Learn about channels, especially how to trade them, the earlier you spot them the better your position will be.

* If trading the US markets the morning is always more reliable than the afternoon.

* Respect established trends and exploit them, noise offers little reward and unreliable price action.

* Learn to become a great loser, losing is part of a successful trading.

Best of luck.
 
Quote from Evolution88:

Hi everyone

I feel I've hit a plateau in my trading. I'm still new to trading, having started a virtual portfolio in 2012....
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Wow!!
Now that's dedication.:D

How you gonna feel when you've been working at this three years from now???
 
Quote from ocean5:

Yeah, sure,so true!But how would you know breaching LL or HH was not right after your enter?

And how do you determine the peak or trough having no extremum value indicator?You are in the open space here.

What a bolls!
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You shouldn't trade breaches because you don't know how far they'll continue, but as long as you've entered on lower highs and higher lows the right chart setting will make it observable in real time when the market has quit going higher or failed to go lower, and if they keep going your stops should keep you out of excessive loss situations.
 
I see that even online discussion forums create minor celebrities like Jack Hershey!

Appreciate all the pointers from people. The idea of just reading price action stands out a bit so I might start there. I'll see which else I wanna get into too.

To clarify for those that asked, I'm based in Singapore and have a day job. Most nights, I spend a bit of time with the scanner looking for stocks on the US exchanges that fit a certain scope of criterion (oscillators, candlesticks, volume, not waves so far) and based on those objective scanning criteria make a subjective assessment on which stocks I want to swing trade with.
 
Quote from bwolinsky:

You shouldn't trade breaches because you don't know how far they'll continue, but as long as you've entered on lower highs and higher lows the right chart setting will make it observable in real time when the market has quit going higher or failed to go lower, and if they keep going your stops should keep you out of excessive loss situations.
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First you said that market has only 4 oscillations and that`s all you need,now you said, but with the proper settings.I`m asking you once again,how do you know in advance by entering on LH or HL it wont breach right after you`ve entered?

Then you said,''Create custom indicators with no extremum values, optimize, and re-do periodically.''How can you optimize an indicator with no extremum values?More so,how can you determine peaks and troughs?It is oservable to you in real time,you said.
 
Quote from BSAM:

OH MY FREAKIN' GOODNESS!
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Lol,

I'm not one to bash but seriously, this statement is pretty accurate. For fun, I googled "Jack Hershey quote" and this just happened to be the first one that popped up.

10-27-11 08:54 PM

Quote from jack hershey:

"The trading fractaland its slower fractal.

begin to use the regular names for the nested fractals; your object is to build your mind.

By thinking in terms of middle you muddle."

If you want to begin developing a system that works for you based on statements like the one above, to each their own.

Price Action is the way to go IMHO, use indicators sparingly and only for additional confirmation. Just my 0.02 - but I'm a full time analyst, part time trader so my time is limited and I like to keep it simple. Maybe Jack's stuff works if you put in the time but if it does, the energy expenditure just doesn't compute for me personally.

Happy Trading!

JO
 
An acquaintance of mine worked for a very serious trader years ago ... net worth 50 million plus. The first day on the job he was told there was no such thing as an overbought or oversold market in real time ... only in retrospect.

Quote from Laissez Faire:

The only advice I can offer right now as I`m leaving in a hurry is to erase the concept of overbought and oversold from your trading vocabulary.

Markets go up until people stop buying and they go down until people stop selling. Often, that is a lot further than people think, hence people blow up all the time trying to pick tops or catch falling knives. :)
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Quote from Evolution88:
....

Appreciate all the pointers from people. The idea of just reading price action stands out a bit so I might start there. I'll see which else I wanna get into too.

....
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Go ahead. You will find the journey as bitter as that of reading indicators. (If you truly know how to use indicators, that will be a different story.) You are trading with one-sided view.

If you MUST trade with nothing else but price data only, do not limit yourself with price action which merely deals with relative price highs and price lows and sometimes-work-sometimes-fail horizontal support and resistance or fibonacci levels. Consider nested channels (or nested trend lines). Breaking out of trend line has meaning. Failure of breaking out has meaning too.

Consider the behaviors of each price bar. Look at the open and close positions of each price bar. Be sensitive. Doji where open and close are similar is a powerful signal. Look at the range of each bar, in particular relative to prior bar. If a price bar is under the shadow of prior bar, it means something. Every price bar does tell you something as the market is ALWAYS right. If you are intelligent enough, you can build a load of money-making insights on market behaviors.

Lastly, the best advice I can give you is that DO NOT waste time and be emotional to guess highs and lows. Your job is to read one bar at a time and then decide whether to wait or enter when you have no position and to hold, reverse or exit when you hold position.

When you are good enough, think in terms of intra-bar.

Good luck.
 
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