The Importance of Simplicity
- Thread starter Corso482
- Start date
Quote from Uncle Festus:
You approach interests me and I like your calm attitude.
Yeah, I was looking at NQ and not ES and it looked like you would have been stopped out (with a 4 point stop after breaking the low by 2 points) 3 times today and unless you were fast enough to take some profits would have been stopped out again by that crazy spike at 3:27.
I hear a lot of people say they stay out when the market is choppy, but how do you know its choppy until after the fact when you've been stopped out a couple of times?
When you've been stopped out a couple of times do you just h
ang it up for the day or maybe take profits quicker?
You should have know me before the lobotomy
It's hard to say...I've been stopped out maybe twice in a day down 8-10 points and ended up catching a big move at the end for a small profit...but that is rare as well.
It all depends on the mood of the market.
If it feels like it has some energy...a definite struggle between bears/bulls I may keep trading...but if it just meandering...much like today, then I will usually quit.
Mike
nah, It's just the oldtimers were using 50%, and then everybody was using 50%, so they just moved it down to the fibbonacci number. Don't get me started on fib. man, people take it very seriously, but it is a lot of fun. If your chrts have the fib option, you just set up 0% or 100% at the top or bottom, and then you can see everything at the fib numbers.Quote from Girlpower:
I'm interested in the 61.8% retracement you quoted. How do you come by this number as opposed to say 60% or 65% or whatever. Is there some sort of rule that this seems to follow?
Yeah - Things rattle through this mind of mine and come out the other end all tangled, but in time they sort themselves out.
Natalie
My brain doesn't really work, so I can trade off anything. They are a lot of fun if you don't think about it too much.
50% has been a very good retracement number for me however. But then anything works if you are trading with the main trend.
Here's a link to an article today from Schaeffer's Research on keeping your analysis simple. To me this is one of THE MOST important things someone can do to improve their trading. Most ALL of us overcomplicate things and this gets in the way of the actual trade and actually making money. Last time I checked that was one the objectives of trading. We make things so much harder than they are. 
http://www.schaeffersresearch.com/sentiment/observations.asp?ID=6536
http://www.schaeffersresearch.com/sentiment/observations.asp?ID=6536
I was just thinking the same thing. How much I like the market because you can find a place or carve out a niche that is just custom tailor made for you and the way you think and the way you see things.Quote from inandlong:
Interesting comments by Girlpower and Sophomore Jinx a few pages ago.... one didn't like the looks of the day, the other thought it looked interesting... even profitable. And both are looking to trade essentially the same method.
Simplicity is wonderful... isn't it?
I already said know thyself, didn't I? You can quote me on that one until I hear back from the copyright office.
Quote from inandlong:
Interesting comments by Girlpower and Sophomore Jinx a few pages ago.... one didn't like the looks of the day, the other thought it looked interesting... even profitable. And both are looking to trade essentially the same method.
Simplicity is wonderful... isn't it?
Not exactly. "Girlpower" has been trading her system for quite some time. "Sophomore" has just recently shown an interest. Therefore, it's not unusual that two such people would view the same day differently.
--Db
DB's got it about right in terms of my perspective. I'm just watching, poking my head in to ask some questions, and trying to get into the discretionary thought processes being employed by the folks actually trading these approaches (and generously sharing them).
Personally, I have a mixed perception about today's activity - like Natalie, I think the trading (in real life) was pretty sluggish and not enticing, and had I been trading it for real, I would've probably walked away and ate a box of Pop Tarts; as an outsider looking at a chart, trying to coldly analyze a method of trading, I could also see how one might've made some points going short below the low of the first 30 minutes @883.75.
Anyway, thanks again for a great thread - I'll continue to watch with much interest.
Personally, I have a mixed perception about today's activity - like Natalie, I think the trading (in real life) was pretty sluggish and not enticing, and had I been trading it for real, I would've probably walked away and ate a box of Pop Tarts; as an outsider looking at a chart, trying to coldly analyze a method of trading, I could also see how one might've made some points going short below the low of the first 30 minutes @883.75.
Anyway, thanks again for a great thread - I'll continue to watch with much interest.