What I've found useful (or not)
- Thread starter hoo_doo_one
- Start date
4XIS4U -
Are the color changes simply crosses of moving averages of different periodicity?
Sandy
Are the color changes simply crosses of moving averages of different periodicity?
Sandy
And you wonder why some succesful traders won't share......
Keep on living in myths and dreams
Maria
As always Maria, your insightful and constructive criticism is appreciated.
-Hoo_doo
Once upon a time, there was a trader on another message board. This trader went by the name Olman. Olman's method was to trade using only a moving average. When trend was up, he would buy every time that the price dipped and touched the MA. Olman said he would be right all the way up and then wrong once at the top.
Olman didn't bother trying to hit tops and bottoms, instead he would buy high and sell higher or sell low and buy lower.
This sounds incredibly simple, but it's the only thing that has consistently made me money in the last several years. This is why I posted the MA method.
I began using the Double Stochastic as a way of avoiding the "wrong once at the top" issue.
Here's one question for my fellow trend traders:
What do you do when the market moves sideways?
-Hoo_doo
* Reduction in position size to better manage the increased risk exposure if you already know your method does not perform well in sideway markets.
* Increase chart interval to prevent missing something from the big picture (bigger view of the playing field).
* Don't use a method that you already know is not suitable for sideway markets. Thus, switch to a method that's suitable for such.
* Take profits faster (don't try to get greedy).
* Open trade positions only when volatility is increasing...not decreasing.
* Understand why the market is going sideways...if you don't know...stop trading and go do something else for the day that's non-trading related.
Mark
Perfection in trading = unsuccessful trading.
Instead of searching for a way to avoid "wrong at the top", search for ways to make the other trades in there MORE profitable and that one time your wrong hurt you less. See if you can quickly analyze the situation in that senario and see if you can identify as quickly as possible that the situation has changed and its time to move on.
A great trader that I worked with would always tell me "you cant avoid the hits sometimes" and he is right. Its just part of the game.
Instead of searching for a way to avoid "wrong at the top", search for ways to make the other trades in there MORE profitable and that one time your wrong hurt you less. See if you can quickly analyze the situation in that senario and see if you can identify as quickly as possible that the situation has changed and its time to move on.
A great trader that I worked with would always tell me "you cant avoid the hits sometimes" and he is right. Its just part of the game.