The ACD Method

Shan, I'm in the process of building an ETF database. I'm not sure how many you follow, but feel free to list any favorites you have here. There are so many coming out every week I honestly can't keep track. All these ETF websites are so slow to update. Hell, I never even knew there was a smartphone ETF (FON). LOL.
 
Quote from Maverick74:

I would say most traders blow up a few times before they become successful. So by default, all successful traders probably blew up as well. I think ego is a big problem with most traders. Learning to admit you are wrong and need to fix something. Ideally you want to be around other traders if you are going to do this for a living. Trading from home or from work is just not feasible. This doesn't mean you need to join a prop firm, but maybe rent a space and share with other traders. Most of the guys that blew up at my firm were remote traders trading from home by themselves.

And let me say this, intuitively you would think traders want to trade the most volatile product they can find, like Crude Oil. But my experience has been over the last 15 years, is that traders who focus on the most volatile products don't make it. The ones that trade the calmer stuff seem to have more longevity.

The stocks I use to trade back in the day where stocks most guys on here have never heard of, but I made money every day and took home paychecks. The guys that tried to trade all the high flying nasdaq stocks rarely took home a check. One of the biggest myths out there is that traders want to trade volatile stuff. I don't buy that for a second. At least my experience tells me not to.
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Thanks for your insights once again !

I find merit in the point about trading from home vs an office. Being close to other traders will definitely mean greater idea generation, reduced dumb mistakes and competing viewpoints on a particular trade.

I trade Euro a lot, and I make money whenever it moves, and lose/don't make when range is small like < 100 pips for the day. So, I really don't understand what you mean by increased longevity and profitability trading a calmer pair !! Seriously, if the thing doesn't move, or there are no breakouts/sustained momentum intraday, how do you make money ? I find that kind of environment toughest to make money especially in 6E.

I will really appreciate if you can show some more light on this myth that you called that traders want to trade volatile products. Really looking to lean something from here.

Thanks for free of cost teaching :) I will get you a beer and a good dinner when I meet you !

Edit: Btw thanks for saying that most successful traders have initial blow-ups. I am encouraged!
 
Quote from gmst:

Thanks for your insights once again !

I find merit in the point about trading from home vs an office. Being close to other traders will definitely mean greater idea generation, reduced dumb mistakes and competing viewpoints on a particular trade.

I trade Euro a lot, and I make money whenever it moves, and lose/don't make when range is small like < 100 pips for the day. So, I really don't understand what you mean by increased longevity and profitability trading a calmer pair !! Seriously, if the thing doesn't move, or there are no breakouts/sustained momentum intraday, how do you make money ? I find that kind of environment toughest to make money especially in 6E.

I will really appreciate if you can show some more light on this myth that you called that traders want to trade volatile products. Really looking to lean something from here.

Thanks for free of cost teaching :) I will get you a beer and a good dinner when I meet you !

Edit: Btw thanks for saying that most successful traders have initial blow-ups. I am encouraged!
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Blowing up is part of the learning curve. First, you are too aggressive, then you are too timid, then you try to follow too many instruments, then you try to find the holy grail indicator.

Fish talks about price and time, just as Gann did, so the idea is ancient, but traders really need to know that if your trade does not move within a certain parameter of time, you are wrong, or will be wrong very soon, and you need to move on.
 
Quote from gmst:

Thanks for your insights once again !

I find merit in the point about trading from home vs an office. Being close to other traders will definitely mean greater idea generation, reduced dumb mistakes and competing viewpoints on a particular trade.

I trade Euro a lot, and I make money whenever it moves, and lose/don't make when range is small like < 100 pips for the day. So, I really don't understand what you mean by increased longevity and profitability trading a calmer pair !! Seriously, if the thing doesn't move, or there are no breakouts/sustained momentum intraday, how do you make money ? I find that kind of environment toughest to make money especially in 6E.

I will really appreciate if you can show some more light on this myth that you called that traders want to trade volatile products. Really looking to lean something from here.

Thanks for free of cost teaching :) I will get you a beer and a good dinner when I meet you !

Edit: Btw thanks for saying that most successful traders have initial blow-ups. I am encouraged!
More...

No, I don't think I explained this well enough. When I use to trade stocks. I traded big moves. But not big stocks. In other words, take a stock that has an avg ATR of 1 pt a day like TIF. I would trade the stock when it moved 5 pts.

You just want to avoid the noise. Trading everything every one else is trading is going to frustrate you. Perfect example in fact was the Euro. The whole world has been short that pair. And during the Euro debt crisis it rallied! It refused to go down because everyone and their brother was short.

I have spent a lot of time discussing this on this thread further back. If everyone is trading the same product, the moves are not very clean. They are messy if only for the fact that there are stops everywhere at every tick. I'm not saying to trade things that don't move. I'm saying trade things that are moving that don't usually move much! I hope this helps.
 
Quote from Maverick74:

No, I don't think I explained this well enough. When I use to trade stocks. I traded big moves. But not big stocks. In other words, take a stock that has an avg ATR of 1 pt a day like TIF. I would trade the stock when it moved 5 pts.

You just want to avoid the noise. Trading everything every one else is trading is going to frustrate you. Perfect example in fact was the Euro. The whole world has been short that pair. And during the Euro debt crisis it rallied! It refused to go down because everyone and their brother was short.

I have spent a lot of time discussing this on this thread further back. If everyone is trading the same product, the moves are not very clean. They are messy if only for the fact that there are stops everywhere at every tick. I'm not saying to trade things that don't move. I'm saying trade things that are moving that don't usually move much! I hope this helps.
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+1 here.

Trading the big names in stocks are what the bus people are doing. Do not get on the bus!
 
Quote from Maverick74:

Shan, I'm in the process of building an ETF database. I'm not sure how many you follow, but feel free to list any favorites you have here. There are so many coming out every week I honestly can't keep track. All these ETF websites are so slow to update. Hell, I never even knew there was a smartphone ETF (FON). LOL.
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Don't follow any of the more exotic ones. I think you can do a search on Finviz and filter for the ETF's. They also have a neat map that lists by sector/country etc.

Here's some that aren't mainstream:

-JNK, LQD , IYZ, PPH, KBE, DBA
 
Market spent half the time of opening range below pivot range for SHORT
the second attempt down.
This depiction is from early this year CLH11' (CLJ11' contract was prompt)



I can model all the A's C's etc.
 

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Quote from MBC:

Hey mfbbreakout, what would be the A' value on CL these days ?

I recall 8 ( is that 8 cents ? seems low value??)

thanks

(Trying to look for A' up/down thru the pivot,
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For CL A= 8 C= 13. values may seem low but they work fine. 10-15 ticks stop loss. Greater stop loss than that generally mean 2 things

1) Timing is off.

2) Level identification is not good.
 
Quote from Maverick74:

Here was another strong spread today: XLE/SMH
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Mav,

I have just started reading the last few posts about trading these types of spreads. Whilst I agree that the ones that you have chosen to pick look like good trends, I can't really see anything different from these charts, and any equity that is having a good trend day.

So why pay twice the commission for the spread, when you can say, choose Citigroup and just trade it....

What's your reasoning behind why your spreads are better choice trades than the outright instruments themselves?

Adrian
 

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Quote from mfbreakout:

For CL A= 8 C= 13. values may seem low but they work fine. 10-15 ticks stop loss. Greater stop loss than that generally mean 2 things

1) Timing is off.

2) Level identification is not good.
More...

Thanks

You dont put stops in strategc areas such as above/below opening range or A's ?
 
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