What is the traditional course of study for a career trader?
- Thread starter kmiklas
- Start date
183 posts, 77 likes.
Looks like there are many people who seem to like what I say.
But then I always like to give people what they want, so if you think my posts are good entertainment, I'm giving you what you want.
The disliked people like me get attacked and hounded , you are a good entertainer .Trading is not entertainment or gambling at the casino buying tight stop spins on a roulette.That is gambling , you betting red or black depending on the form of the trend.trend gambling on horses, when you put a tight and go long betting black
I think outside the box and disagree with most of you
Try horse betting , it will give same results
http://cheltenham-festival.betting-directory.com/trends.php
AbbotAle
you don't even know the what trading is , how can readers take posts from a gambler as serious trading advice?
my stress levels are going down , keep up the entertainment
you don't even know the what trading is , how can readers take posts from a gambler as serious trading advice?
my stress levels are going down , keep up the entertainment
TEB, now you're starting to look a little bit silly with your comments. Why not try to do as I'm doing and offering good information that people can think about and use rather than ranting and raving like a madman?
Here's something that will help people, especially if they believe in the bogey-man of the Algos.
As I keep saying the Algos are not the problem especially for short term trading. If anything they're good for short term trading because most of them are electronic market-markets and market makers in any market are a credit to that market.
If anything is a problem it's 'the boys'. The boys are a loose knit semi-cartel of the best and most dominant traders operating in any market. They are the ones that have the power and smarts to be able to sometimes push price around.
They don't control the markets per se, nobody can do that, but they can control price some of the time. The boys speciality is legal theft, they want to steal your positions. A favourite trick of theirs is to get everyone in, then slam them out (stealing your position) and then the move happens without you on board or worse, you're now caught short and have to buy into the move.
So how can you take on and beat the boys? You can't the best you can do is to neutralise them and/or get positioned the same way as them.
And how can you take on and beat the Algos, you can't so the best way is to neutralise them, and/or get positioned the same way as them.
How do you do this?
With markets there are times when 'everyone wants it' for whatever reason (I'm talking normal type markets, not after some big figure/announcement). So everyone, large, medium or small wants to buy and there isn't the supply to feed all that demand hence people have to pay the offer forcing others to pay the next higher offer and so on.
So if you can find those areas on a chart where everyone wants it, both the boys and the Algos can't hurt you because both of them will know that selling into that demand is going to be a losing proposition. So the Algos/boys will only be doing one of 2 things, 1) not trading, 2) buying. Either can only help you.
And it's these areas where a tight stop can be used with a much lower risk than is thought. The beauty about a tight stop in such a situation is the moves can often be dramatic in your favour, really explosive and everyone has to buy and price gets forced ever higher hence the tight stop enables you to get 3:1, 4:1 maybe even as high as 10:1 trades with regularity.
Get those types of returns on winners and there's a hidden advantage, that of psychology because if you know your trading plan is going to deliver large winners when right and small losers when wrong it's not going to be hard to follow your plan. No reading therefore of books like Mark Douglas is needed. Also the old adage of cutting your losses short and letting your profits ride will be adhered to. What that statement really implies is you need small losses and larger profits, and that's exactly what you're doing. Start to use a large stop when it's totally unnecessary and even unintelligent means it will be very hard, and I mean very hard to get small losses combined with large profits.
So where to find these sorts setups where everyone wants it (obviously reverse for shorts). You find them by using the 7th Law - dramatic price movements tend to occur from price structures than minimise participation. Look for evidence that longs are being minimised and forced out and then CONCENTRATE on what happens afterwards. Tight bars afterwards are often a big clue, price holding/hovering at an elevated level is another.
Like anything this will take work but for anyone that wants to build a good trading plan, with extremely sound foundations I'd strongly recommend they use the 7th Law as the foundation. Then start to look for areas where everyone wants it (after evidence people have been minimised) because then a small stop can be used with much less risk than is thought and if right, major R/R can be taken out of the market. Good luck everyone.
Here's something that will help people, especially if they believe in the bogey-man of the Algos.
As I keep saying the Algos are not the problem especially for short term trading. If anything they're good for short term trading because most of them are electronic market-markets and market makers in any market are a credit to that market.
If anything is a problem it's 'the boys'. The boys are a loose knit semi-cartel of the best and most dominant traders operating in any market. They are the ones that have the power and smarts to be able to sometimes push price around.
They don't control the markets per se, nobody can do that, but they can control price some of the time. The boys speciality is legal theft, they want to steal your positions. A favourite trick of theirs is to get everyone in, then slam them out (stealing your position) and then the move happens without you on board or worse, you're now caught short and have to buy into the move.
So how can you take on and beat the boys? You can't the best you can do is to neutralise them and/or get positioned the same way as them.
And how can you take on and beat the Algos, you can't so the best way is to neutralise them, and/or get positioned the same way as them.
How do you do this?
With markets there are times when 'everyone wants it' for whatever reason (I'm talking normal type markets, not after some big figure/announcement). So everyone, large, medium or small wants to buy and there isn't the supply to feed all that demand hence people have to pay the offer forcing others to pay the next higher offer and so on.
So if you can find those areas on a chart where everyone wants it, both the boys and the Algos can't hurt you because both of them will know that selling into that demand is going to be a losing proposition. So the Algos/boys will only be doing one of 2 things, 1) not trading, 2) buying. Either can only help you.
And it's these areas where a tight stop can be used with a much lower risk than is thought. The beauty about a tight stop in such a situation is the moves can often be dramatic in your favour, really explosive and everyone has to buy and price gets forced ever higher hence the tight stop enables you to get 3:1, 4:1 maybe even as high as 10:1 trades with regularity.
Get those types of returns on winners and there's a hidden advantage, that of psychology because if you know your trading plan is going to deliver large winners when right and small losers when wrong it's not going to be hard to follow your plan. No reading therefore of books like Mark Douglas is needed. Also the old adage of cutting your losses short and letting your profits ride will be adhered to. What that statement really implies is you need small losses and larger profits, and that's exactly what you're doing. Start to use a large stop when it's totally unnecessary and even unintelligent means it will be very hard, and I mean very hard to get small losses combined with large profits.
So where to find these sorts setups where everyone wants it (obviously reverse for shorts). You find them by using the 7th Law - dramatic price movements tend to occur from price structures than minimise participation. Look for evidence that longs are being minimised and forced out and then CONCENTRATE on what happens afterwards. Tight bars afterwards are often a big clue, price holding/hovering at an elevated level is another.
Like anything this will take work but for anyone that wants to build a good trading plan, with extremely sound foundations I'd strongly recommend they use the 7th Law as the foundation. Then start to look for areas where everyone wants it (after evidence people have been minimised) because then a small stop can be used with much less risk than is thought and if right, major R/R can be taken out of the market. Good luck everyone.
ok so if this all theoretically possible to profit from , what is next step?
How you trade based on subjective unreliable technical anylysis , subjective unreliable price action , fundamental anylysis which is hard to time the markets , gut feelings , emotionally driven entries for greed , emotionally clouded-impaired/biased with biases reading of market , market timing which is difficult using junk science anylysis ?
How many traders are wired to do this?
How you trade based on subjective unreliable technical anylysis , subjective unreliable price action , fundamental anylysis which is hard to time the markets , gut feelings , emotionally driven entries for greed , emotionally clouded-impaired/biased with biases reading of market , market timing which is difficult using junk science anylysis ?
How many traders are wired to do this?
AE
what all your posts are saying is "take the horses to water well " .Nothing new , it has not changed for thousands of years.
You can lead a horse to water, but you can't make it drink
Origin
Proverbs give richness to language and, to some extent, define a culture. 'You can lead a horse to water, but you can't make it drink' might be thought to encapsulate the English-speaking people's mindset better than any other saying, as it appears to be the oldest English proverb that is still in regular use today. It was recorded as early as 1175 in Old English Homilies:
Hwa is thet mei thet hors wettrien the him self nule drinken
[who can give water to the horse that will not drink of its own accord?]
what all your posts are saying is "take the horses to water well " .Nothing new , it has not changed for thousands of years.
You can lead a horse to water, but you can't make it drink
- Meaning
Origin
Hwa is thet mei thet hors wettrien the him self nule drinken
[who can give water to the horse that will not drink of its own accord?]
It's not unreliable if everyone wants it. It becomes a great probability trade.
It's not subjective if everyone wants it. It becomes a great probability trade.
Fundamental analysis not needed. If the fundamental traders want it, who cares why, the important thing is they have to buy, either at the present price, or as is better for us, later on at ever higher levels.
Not so hard to time the markets if everyone wants it. Just jump onboard, if right potential big profits, if wrong, small loss.
Emotionally driven entries for greed? yes, that's a problem that needs to be solved. Problems are there to be solved. I solved it by realising there are now 3 things that are guaranteed in life, death, taxes, and picture perfect, textbook setups. Price normally always sets up perfectly if you wait and concentrate. You have to be hard on yourself to wait for as long as it takes for one to setup, because one is coming you just don't know when. Sort of like a train station with no timetable available. You know it's just a matter of time before a train comes down the track, you just don't know when, so sit, do nothing and wait for as long at it takes (maybe 1m maybe 9 hours), then jump onboard.
But if you don't wait, if you try to force things then you're going to have problems. This is why I always say having a good trade plan is not enough - you need to be able to IMPLMENT that trade plan in real time with as few mistakes and errors as possible. So for many, with a good trade plan, the reason why the results are not good isn't because of the trade plan itself, it's to do with your implementation of the plan.
How many traders are wired for the above? I don't know, this isn't an easy game but it becomes far easier to implement if you use a small stop at the right times (when everyone wants it) because then you know your average profit is always going to be far larger than your average loss.
L
lovethetrade
You have to know when to use a stop and when not to IMO. Tight stops are a double-edged sword and the number one reason why a lot of traders fail.
Great for brokerages, not so good for traders. However, you need to know what you're doing and have pretty good information if you want to exit without stops.
You also have to accept bigger drawdowns (maybe not)
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The broker statistics are 95 % lose.You need to change the dna /genes of these 95 % population to make them suitable to trade , the problem is there and with junk science gambling , technical anylysis gives three different outcomes for same set i.e up, nowhere , down .
I rely on statistical data more than opinions , on training 95 % club to change dna and then getting them to drink water , because that is impossible.