The closest thing to the holy grail is.....

[MarketAddict]

The closest thing to the holy grail is Environment + S&R + Pattern= the closest thing to the holy grail.. IMO if you are a trader that use stops, then this formula will pretty much keep you in the game.. Traders that don't use stops are more flexible and they don't need that much accuracy, because if a trade goes south then they can easily build onto a losing trade..

Environment means what is the market doing right now.. Trending or ranging (there are other ways to look at the market, but I will not get into to that today).

S&R means a place on a chart where price has turned before..

Pattern means patterns that price make on a chart.. There are a lot of classic patterns that will show up on your chart every single day, so it is up to you to pick and chose your pattern..

Everyday when I open my chart I look to see what state (environment) the market is in.. If I can't figure it out right away, I will just wait until the market reveals itself.. Second, I will look for and mark down support and resistance. Once I finish that, I will sit and wait for price to reach those levels.. Third, I will wait to see how price reacts around the level.. I like to see a pattern around my levels because it gives me more confirmation to take the trade..

Are there other ways to trade? Sure, but what I do is I try to look for the highest quality trades.. Now, while I'm in the trade there are things I do to try not to get a loser.. I will try to get to break even as soon as possible.. I have become a break even trader.. Meaning, when I'm trading (using stops) my main focus is not to make money, but only to get to break even ASAP... I do let my trades breathe at first, but once I see anything that I don't like I will quickly go to break even..

There are more things that a trader will need to be successful.. Things like a detailed plan, a lot of screen time, having control over your emotions, and nice money management.. Another thing that will help you is knowing when to let your trade be a 1:1 or go for 2:1 or better. Trading isn't easy, it takes time my friend..

 

[Handle123]

"The closest thing to the holy grail" will not be openingly discussed, often they have limited duration of working, it might be a few years but most come to an end because others find out what is happening. So the secret to developing a Holy Grail, something that loses 3% or less is to not throw huge amount of contracts at it so it doesn't trigger market to see many contracts happen.

Trendline bounces are good, have well defined rules of entry and where pattern considered a failure. Often times when it become a failure and closes beyond the trendline, just wait for price to come back to trendline to enter going other direction. Often times small trader risking little gets stopped out as others are first getting into trade. Trendline/retracement been around long time and I learned it from John Hill from late 1970s, what we think we discover, been discovered long ago.

 

[DrEvil]

In my humble opinion, "The closest thing to holy grail" is:

1. Don't lose money
2. See rule #1

There is a difference between knowing the path and walking the path. There is someone trying to stop you from walking the path. If you want to know who, simply look in the mirror.

 

[kut2k2]

In my humble opinion, "The closest thing to holy grail" is:

1. Don't lose money
2. See rule #1

There is a difference between knowing the path and walking the path. There is someone trying to stop you from walking the path. If you want to know who, simply look in the mirror.

Don't lose money = don't trade.

Problem solved.

If you want to make money, you have to trade.

Trading = risk taking.

Risk taking = occasionally you WILL lose money.

So here are your choices:

Don't lose money = stop pretending to be a trader.

Trading = stop whining about occasional losses.

 

[Handle123]

Everything we do in life is trading, buy carton Strawberries, half way down they are rotten, you either return them or toss them, but you traded dollars for fruit. You took a risk buying them. And time has value, so going back to store you losing time and gas unless you walk, then it is even more time.

We can only control ourselves and risk in markets are limited, slippage, gaps, exchanges closing are all areas we can't control. There will be some who say the seldom problems of what we can't control in risk are very small, but when they do happen, you can lose your entire account plus.
You play the game long enough, never stop testing out ideas and one can get risk down more than you think, even in day trading, but you have to keep working at it and be creative. If you can cut back risk, you can add more contracts or shares.

 

[kut2k2]

Everything we do in life is trading, buy carton Strawberries, half way down they are rotten, you either return them or toss them, but you traded dollars for fruit. You took a risk buying them. And time has value, so going back to store you losing time and gas unless you walk, then it is even more time.

We can only control ourselves and risk in markets are limited, slippage, gaps, exchanges closing are all areas we can't control. There will be some who say the seldom problems of what we can't control in risk are very small, but when they do happen, you can lose your entire account plus.
You play the game long enough, never stop testing out ideas and one can get risk down more than you think, even in day trading, but you have to keep working at it and be creative. If you can cut back risk, you can add more contracts or shares.

Not completely in agreement. Trading in the sense we use it in this website consists of two transactions: an entry and an exit. Whereas buying strawberries or any other desired thing is expected to be a single transaction, a single exchange of value for value. It is the additional risk of two transactions that enables trading to be profitable, just as if we bought the strawberries wholesale and then resold them retail for a profit.

As far as risk, too many people here expect trading to be as "safe" as investing, and many expect investing to be as safe as a FDIC-backed savings account.

 

[dbphoenix]

Not completely in agreement. Trading in the sense we use it in this website consists of two transactions: an entry and an exit. Whereas buying strawberries or any other desired thing is expected to be a single transaction, a single exchange of value for value. It is the additional risk of two transactions that enables trading to be profitable . . .

Or one could think of buying the strawberries as buying an option . . .

 

[Handle123]

Not completely in agreement. Trading in the sense we use it in this website consists of two transactions: an entry and an exit. Whereas buying strawberries or any other desired thing is expected to be a single transaction, a single exchange of value for value. It is the additional risk of two transactions that enables trading to be profitable, just as if we bought the strawberries wholesale and then resold them retail for a profit.

As far as risk, too many people here expect trading to be as "safe" as investing, and many expect investing to be as safe as a FDIC-backed savings account.

Too many spend more time planning a vacation then how to risk their money, I could never understand that. There is nothing safe, and one more reason not to eat fish from pacific ocean, between Japan's radio active stuff floating towards us and now crude oil, going to run out of fish. Wonder if one day they will have Fish as a commodity?

 

[lawrence-lugar]

Don't lose money = don't trade.

If you want to make money, you have to trade.

Trading = risk taking.

Risk taking = occasionally you WILL lose money.

I agree...I first jumped into the markets during the early 2009 financial crisis. I couldn't help Not to...after seeing daily moves on stocks of 20%+ in the news. I was thinking to myself: ...Jesus...that Sure beats my bank savings rate! all in a day's work...vs an entire year sitting in my bank.

I made and lost money trading stock (i trade options now) , but stopped after my account lost 40%. and i took a long and hard look at what exactly what i was doing.
It took me a while before I had the balls/courage again...to jump into the market.

If it hadn't been for the 2008 financial meltdown...that made all the news back then...I would have never discovered this world of Wall St/trading. and i'd still be a simpleton just stocking his money in a measley bank savings acct.

"Greed is Good"--Gordon Gekko... as far as i'm concerned. greed led to the financial meltdown. which in turn, made me discover this world.
talk about destiny, or a chain of events.
(sorry, if i'm digressing from the main forum topic)

 

[stillgrinding]

I've searched for the holy grail. Perfection. Wouldn't be so easy if it existed? Not a chance.
I was at a bar one night. Not a real bar, but a raw bar. You know, oysters,clams, etc. I'm sitting by myself eating a dozen raw,cold oysters. Drinking a gin and tonic. I look over to my left and the most amazing looking woman is sitting next to me. I strike up a conversation, and we chat for awhile. I ask her her name. She says her name is Zen. What a perfect name. This woman is so perfect. So Zen. Without even trying. Her body is something that guys dream about. So perfect. She talks so intelligent. I imagine that she works as a curator in an art museum, or as a yogi master in some funky yoga studio in Bali, or Malibu. This woman is perfect. I found my Zen. We part with a handshake, but I have to say, not a day goes by without me thinking of Zen. I think I'm in love. With Zen. I would do anything to have Zen. It would be an understatement to say I fantasized about Zen...
Time passes and one day I find myself in the same raw bar. I'm eating chicken wings. drinking a Pabst. I'm watching the game on the TV and I feel a tap on my shoulder. A tap so tender, yet assertive, I know without looking that it's Zen. I turn around from the bar and there she is. Zen. I jump up, give her a hug, and say, "It's so great to see you Zen, I was hoping I would find you again". I'm babbling on about who knows what and how I've been thinking about her all the time and I'm interrupted with "It's Jen. My name is Jen. Why do you keep calling me Zen"?
Suddenly, She no longer seems perfect. I notice the gap in her teeth, the way she slouches, heck she's not perfect at all. Not even close. One letter. One freaking letter...
So close to the Holy Grail, yet not even close. I quit looking.
Eventually, I married her, she got braces. Close enough. 24 years now...