Quote from dkm:
3 trades so far today based on intrabar signals on 5 min chart:
09:50 Long 881.75 exit 09:53 879.75 -2
10:17 Short 874.50 exit 10:20 875.50 -1
10:28 Short 873.50 exit 10:29 875.50 -2
In the first case, both 14,1,3 stoch lines were above 80, macd histogram > 0.4 and macd >1.
In the two short trades, both 14,1,3 stoch lines were below 20, macd histogram < -0.4 and macd < -1.
From the attached chart, it is clear that these were all false signals as they no longer existed after each bar closed.
The opportunity to wash out at zero loss didn't present itself. Any comments would be welcome.
David
Thanks for posting.
On page 97 there are 12 items that I have tried to cover so far. The list definitely leaves out the basis of the 12 items.
So waht is the game plan underneath it all. What I have tried to do over the years is get people to a place where they can reason their way to developing an approach to make money.
almost anyone can get into some groove for doing this. The consequence is that, over time almost any approach makes a lot of money simply because of how profits compound over time.
The real deal is to be able to continually work at it with greater and greater performance success.
You can take vorso's word for it when he suggests how trading makes more money if you do this or that. That iterative refinement viewpoint is what is called for.
The challenge here is to get things in a proper perspective and then be able to prioritize.
The highest priority is making money. Making it continually and with a greater money velocity as time passes.
If you do something and it doesn't work as happened here. You must debrief yourself and find out why. You will either be right or wrong as to why it doesn't work.
I will add a few charts for consideration after this post because I do not want the first chart or last chart to distort stuff.
Going way back, I suggested that you first learn to make money when the time to do it is the easiest. So you make money and build capital that way.
Concurrently while doing this first step, you actually learn a great deal about the other side of the coin. That side is the "walk carefully on the ice". When you are in the market, it is because you are walking carefully on the ice. You are not in the market saying "don't fall down on the ice". We are not always in the market. To say it in the best way, we sideline as a primary effort in making money.
There is some conversation here about price and indicators. It is low grade compared to chatting about market variables, what they are and how you can enhance the signals of market variables singly and in combination by using indicators and use them as leading signals related to price.
What is on the table for everyone is themselves and how they connect to making money using the market opportunity given to them.
Price and volume vary with time. People and equities or contracts generate volume and price.
How does a person generate three losses doing the same thing three times in a row. Mechanically. vorzo, correctly, in my opinion states that you make more money entering ASAP rather than at the close of the bar. You can bet he has looked where we are going to look in the next several posts I make here.
There is no way any person at any level of expertise can improve by gueassing. You will notice that I recommend a viewpoint for each andeverything that goes on here and in 6 months you will look at this beginning as just a mild dose of what is what. We always need to focus on what is going on. That means "seeing" what you are seeing from where you are and NOT seeing what I see from where I am.
To many people, Friday was a slow day. But that is said after Friday is over. To make money you need to know as the day unfolds peice by piece what is going on.
For beginners, the two sides of the Coin are the making money side and the sideline side. Let us begin from this vantage point.
