Trading is for dumb people

[Africatrader]

Quote from sandygray66:

Well, AfricaTrader, if you're willing to share, I for one would like to hear more details on the method that works for you.

This is what I do. I trade with MT4 and have a automatic pivot calculator, that loads the days resistance and support levels with a central pivot point. than I have MACD with only one line and RSI at 14. And I rarely take a take before the London open. I wait 1 more hour after the London open and check the following.
1. did price open in the resistance area or the support.
2. what is the macd and rsi reading.
3. do they support the pivot reading?
4. i also watch the MAD and RSI relationship on the 15m and 4h.
5. than I wait for the indicators to sign reversals of the present trend.
6. than I watch macd to confirm that we are indeed headed for the opposite and THAN and ONLY THAN do I take my trade. 90% of the time it goes for at least 50 pips before resuming the main trend.

IT WORKS FOR ME!

 

[kiwi_trader]

I think your choice of dumb was interesting; it certainly got you some responses.

But I would absolutely agree that a simple approach using confluence of trend on more than one timeframe and resistance that you've seen to be more then 50% effective can give you a good entry. And once you've got it then an easy to hit target makes for nice pleasant trading.

For the person who didn't like ATs maximum risk being equal to his target think on this ... if your target is 20 and your average (not max) risk is 25 with 1 pt commission in both cases and an 80% win rate then

E = 0.8*19 - 0.2*26 = 15.2 - 5.2 = 10 pips clear per trade.

Who cares if you get 3 losers in a row. The goal is to be dumb enough (statistically smart) not to care because you know that over the next 20 trades you'll make 200pips.

Nice thread Africatrader (at the risk of being offensive, if as someone suggested I trade kiwis then what do you trade?)

 

[Cesko]

........ case. Is that trading cannot be approach with a intelligent, or scientific mindset.


Africatrader is absolutly right. When I figured out this it made trading much easier for me. Anybody who gets an intellectual satisfaction out of trading is a nitwit.

 

[Africatrader]

Quote from kiwi_trader:

I think your choice of dumb was interesting; it certainly got you some responses.

But I would absolutely agree that a simple approach using confluence of trend on more than one timeframe and resistance that you've seen to be more then 50% effective can give you a good entry. And once you've got it then an easy to hit target makes for nice pleasant trading.

For the person who didn't like ATs maximum risk being equal to his target think on this ... if your target is 20 and your average (not max) risk is 25 with 1 pt commission in both cases and an 80% win rate then

E = 0.8*19 - 0.2*26 = 15.2 - 5.2 = 10 pips clear per trade.

Who cares if you get 3 losers in a row. The goal is to be dumb enough (statistically smart) not to care because you know that over the next 20 trades you'll make 200pips.

Nice thread Africatrader (at the risk of being offensive, if as someone suggested I trade kiwis then what do you trade?)

Mopane worms, they have excellent aphrodisiac properties!

 

[Africatrader]

Dear ET's
what i wanted to say in my first statement that you can trade the news without subsription to any news service. it works and yu get the same pips as the guys who have subscripted to Bloomberg, Reuters and so on. Please do not fight me if you do not understand this. have the decency to ask if you do not understand. it is not going to cost you anything.

 

[TSGannGalt]

I'm stupid and I trade.

So africa is right.

 

[FITENOB]

Quote from Africatrader:

No they fail because they have your view. What excatly about my input is in your face, the fact that I am successful in trading (something which has taken me a long time and lost accounts) or the fact that you seem not to understand how some1 can do it with so much ease? How is your trading and what is your beef with my statement. O and I am not disresoectful of trading. it's just that I think there ought to be some fun too, while making making

"trading is for dumb people", summarizes my post. Would you be offended if I were to say that " XYZ" profession is for dumb people & you were in that profession.
My take is some naive college kid is going to read your post & belive the hype, more importantly underestimate the work associated with trading.
I'll give you the benefit of doubt your a successful.
Its easy for you, not everyone. When you remember this fact you'll get a more intimate understanding of the markets.

 

[Holmes]

Quote from Africatrader:

I mean what about trading is s difficult? What do you need to understand trading, not much. The market either goes up, down or sideways and that you can see if you look at where the market is coming from. what about that is difficult. I do not understand the fuss about mathematical theories, waves and rest of bull.

I think those trying to tell us that the failure rate is high are people who failed trying to complicate simple things. Uneducated people fare better at trading than those trying to tell us that you need this formula and this theory.

The best things in life are simple, or maybe there is really nothing common about common sense.

I am a microbiologist by career and trade as a hobby. I trade with only 2 indicators, RSI and MACD and nothing else. and what I do is very simple. It takes me 2 seconds to see if I can trade or not by just wacthing this 2 indicators. 2 seconds! I do not have bragging rights to this business, but I have been trading for 5 years now. Still using the same old technic. Nothing has changed. Recently I have discovered that it is also very easy to trade the news, with subscription to news service. Watching by people trying to fleece others, claiming they have the secret, I can do so and earn more money, because I win 8 out of 10 trades. But no need.

Trading is simply and VERY easy.

you are one dumb ass!

:eek:

 

[JimmyJam]

Quote from Holmes:

you are one dumb ass!

:eek:

Easy Hoss!

Hey Africa, I understand what you're saying and philosophically agree with your statement.

While in truth a lot of intelligent, scientific method goes into the development of a good (or great) trading system, the actual exection of it should not require much thought process or over analyzing of the market.

It's like being in a fight (professional ). Good fighters work and hone and develop their skills to the max before they enter into kumite, but when it is time to do the actual batteling, they execute one/two/three good moves/patterns/methods consistently.

This is how you have consistent winning.

I'm not surprised that Romik would agree with the more salient points of your philosophy, or that kiwi_trader once again delivers the sweet spot on the discussion.

Best,

Jimmy Jam

 

[TSGannGalt]

Quote from JimmyJam:

Easy Hoss!

It's like being in a fight (professional ). Good fighters work and hone and develop their skills to the max before they enter into kumite, but when it is time to do the actual batteling, they execute one/two/three good moves/patterns/methods consistently.

Jimmy Jam

Kumite means sparring in Japanese... in another words... paper trading...