Grob109,
1. I am risk adverse - same
2. Me = stupid. - Me = advanced but experienced expert status still to be obtained.
3. nasdaq stocks. - I prefer investing in NYSE , trade futures
4. I will only sell at extreme rallies, buy at extreme sells -
This idea has massively changed. The old idea behind this is faulty. Moving against momentum for small rewards.
It also depends on where we are in the channel for where I would be selling or buying.
The foundation of the idea has done a 540 , In fact selling/buying at extreme is more risky.
4. "once I hit the "buy" button, it automatically steals my money"
Nobody steals my money now, I take theirs.
5. Stops:
0.3%
Even less now, Much more precision.
6. I only allow myself 1 or 2 trades a day,
1-2 stopped out trades.
If I get conseceutive breakeven trades I can keep trading.
7. Goals: 1-2% each trade , Month = 2-3% a month
It fluctuates, I'm planning on swing strategies and I'm planning on short term stratregies.
Looking to make much mor ethen 2-3% a month.
8. I'm here for the money, I will under no cicumstances mess with myself and do dumb things
Always. $$$.
9. Considering Me = stupid, Thats a mighty task for a youngling like me.
Not a mighty task anymore, Close to finish line. Good logic skills and hard work pays off quickly
10. Time to walk the treachrous path.
still walking.
Currently training to run the marathon.
Soon to be running the marathon.
The trading market is very interesting in fact,
I believe almost all tools/ideas work to the extent,
just like there are different ways to cook egg.
You can cook it anyway you want, but to perfection 5 star style requires more skill then your average apprentice. A pan and spices are still used for both class of dishes. But its how you use it that differentiates your amateur from your pro.
Right now, I'm working on channels, in fact it is very important to know where you are in the current channel in the market.
Which knowledge of the position you are, you can fluctuate your position size to maximize high reward, or miniimize size to follow lower reward higher risk trades.
another interesting thing I find out is, price, volume, action, its so important to use them together effectively.
Because when one is starting out, he would find techniques in price, but forget volume, find volume but forget to use price. Find new price techniques and totally disregard volume, but later add in volume and you come out with something really special.
In fact, I believe that is what most successful traders go through, After more and more practice they can use both their arms and legs, and that is when
you become an expert in your game.
Another interesting thing is there is no noise in the market. Everything is so static and not random that it intrigues me. Everything happens for a reason, and can be predicted to one extent except prediction isn't 100% its 75% 25% So 25% can happen always.
You know, I've been working on trading for over 12 months now full time, with breaks in between (work on other business) , new ideas popping up after my mind clears up, It almost seems unreal sometimes to put everything together because the stock market is like a puzzle, a 100 piece puzzle. you know you can always put 5-6 pieces together no problem but to put those 5-6 pieces with the other twenty 5-6 pieces requires much logic analysis and testing. But make no mistake about it.
I'll be making 100k months soon and that work will pay off handsomely.
I think a big advice to everybody trying to really understand how the market operates, everything you learned, keep it in a notebook, while it may not work now , you need to keep adding to what you have, because it'll come in handy later. like a christmas tree, might come with all bullshit shiny lights and shit at first, all useless, clear it into barebones, and add from the bottom up.
I think people like livermore didn't even understand exactly how the market works which is why he blew up.
People like JP morgan/ ED seykota / PTJ / Pit traders who transfered into screen traders successfull know every single risk they take.
There is no way you can ever blow up in the market if you understand it to the T. I'd probably get nickeled and dimed to boredom at worst.
The foundation is there, now is the refinement to perfection.
I like this game.
In the above example with Emini chart you used 30 min time frame to get a bias for the day, that means that if the low of that 30 min would be penetrated you'd get a neutral bias or would switch to bearish one... The question is have you seen some shorter time frames where the Opening Range is actually the low/high for the day? I am using all different ones, for Lean Hogs for instance it is 5 min, that means that i have lower risk than if that would be a 30 min bar(that comes usually with wider range). Please see the chart attached
