Why Is The Obvious Not So Obvious?

[Ed48]

Hypothetically speaking, if the game were to LOSE as much as possible, could you do it CONSISTENTLY? By consistent, I mean... could you achieve approximately a 45° degree slope downward(p/l)?

Sticking too many eggs in one basket and holding on to losers, hoping they turn around, can do this. I know because I lost over 80% of my capital doing precisely this.

If you only ever risked 1 or 2% of your capital, on any single trade, it would be nigh impossible to achieve a 45° downward slope!

 

[fairvalue]

Small world, i'm pretty familar w/that. I particularly liked the story of the little girl in the beginning, and the general idea of trying to buy when the mkt is moving up and vice/versa.

View attachment 261248

What are you trying to tell us =)

I'd like to elaborate a more on charts visualization, as it was mentioned, heard it before (in an other thread) and want to use this form, because it helps my thinking process. I am still not there and didnt participitate, because i found it hard to follow. I am sure others like me are following aswell and may find this helpfull. I do =)

This information showed below is some rescued visual information of an old MrCharts post. But I feel it serves here good.

1. Bar Charts

I read this somewhere esle before, where an experciened member suggested to use Bar Charts only. I think it was mentioned in these posts aswell, recently, that candle charts only let one focus on the body, but actually the whole range is important.

2. Pelt Chart

I considered your shift of chart visualization (white bar charts to green stick charts) a similar perception change, like changing from Candels to Bars. What I see is, that you did alter three aspects:

• you worked out the color concept, which M3 mentioned. What I had in my mind, that a neutral color concept (black background and neutral colors) is good. I thought you tried to boost it with a greenback psychology add-on.
• why did you leave out the Open und Close? What I learned was, that PDH and PDL are important - okay, can still be seen, maybe better. Unfortunately other abbreviations I do not know the expression. It was said that usual trading books are of no good, but againg that some are are okay. I guess these books could help to work to solve these abbreviations, but maybe the rest of the book distracts readers. I dont know. I was unable to find a trading book based on my research in the recent posts [that I like to call M3-Chapters] related to abbreviations.
• You changed the visualiziation at a certain point. Can be a coincidence, could be to proof point. I added a chart, showing a candle chart and the same chart below as bar chart. Did you want to show the same "effect"?

3. Rotated Chart

• Chart rotation was mentioned before in the early stages of that thread. I a rotated there also. Acutally in the recent post there are some hints to
  
• "sideways you can see the "balance" like a weighing scales..but don't read too much into it.."
• From my childhood I recall stepping on an analog bathroom scale. Because of my weight the pointer kept jumping around until it came to a halt at my acutal weight. The reason of this: My full weight was instantly on that scales. But the meachanism could no handle it instantly. Am I heading right or completly of the track?

Sorry guys if I keep the discussion slowing down. But I know I am s slow learner and if my gut feeling does tell me, that it isnt understood, I see no point in rushing down a road.

Thanks again for everybody taking that time =)

 

[Vindago]

FV well summarized, but I think you may have missed one important point: T=M

 

[M4-1]

It's a few years since I visited this site.

I see the obvious pre-req has been stated. You need to start out with a way of trading which actually works.

nysestocks mentions a different way. It's stated in black & white in a few posts.

I know this is better than the mainstream way because I changed to this and the results greatly improved.

Happy trading!

would that be the one where you reverse your trading buttons..so that you are selling when you think you are buying..and buying when you think you are selling

 

[Pelt]

Sticking too many eggs in one basket and holding on to losers, hoping they turn around, can do this. I know because I lost over 80% of my capital doing precisely this.

If you only ever risked 1 or 2% of your capital, on any single trade, it would be nigh impossible to achieve a 45° downward slope!

I'm glad you mentioned this, and is a good observation, but I was thinking this after I made my post about consistently losing.

The caveat to my query would be that you must use reasonable money management. I.e., you couldn't just risk 80% of your capital on every trade.

You could however, hold losers as long as you like, or take as many trades as you like.

 

[M4-1]

What are you trying to tell us =)

I'd like to elaborate a more on charts visualization, as it was mentioned, heard it before (in an other thread) and want to use this form, because it helps my thinking process. I am still not there and didnt participitate, because i found it hard to follow. I am sure others like me are following aswell and may find this helpfull. I do =)

This information showed below is some rescued visual information of an old MrCharts post. But I feel it serves here good.

1. Bar Charts

I read this somewhere esle before, where an experciened member suggested to use Bar Charts only. I think it was mentioned in these posts aswell, recently, that candle charts only let one focus on the body, but actually the whole range is important.
View attachment 261275

2. Pelt Chart

I considered your shift of chart visualization (white bar charts to green stick charts) a similar perception change, like changing from Candels to Bars. What I see is, that you did alter three aspects:

• you worked out the color concept, which M3 mentioned. What I had in my mind, that a neutral color concept (black background and neutral colors) is good. I thought you tried to boost it with a greenback psychology add-on.
• why did you leave out the Open und Close? What I learned was, that PDH and PDL are important - okay, can still be seen, maybe better. Unfortunately other abbreviations I do not know the expression. It was said that usual trading books are of no good, but againg that some are are okay. I guess these books could help to work to solve these abbreviations, but maybe the rest of the book distracts readers. I dont know. I was unable to find a trading book based on my research in the recent posts [that I like to call M3-Chapters] related to abbreviations.
• You changed the visualiziation at a certain point. Can be a coincidence, could be to proof point. I added a chart, showing a candle chart and the same chart below as bar chart. Did you want to show the same "effect"?

View attachment 261274



3. Rotated Chart

• Chart rotation was mentioned before in the early stages of that thread. I a rotated there also. Acutally in the recent post there are some hints to
  
• "sideways you can see the "balance" like a weighing scales..but don't read too much into it.."
• From my childhood I recall stepping on an analog bathroom scale. Because of my weight the pointer kept jumping around until it came to a halt at my acutal weight. The reason of this: My full weight was instantly on that scales. But the meachanism could no handle it instantly. Am I heading right or completly of the track?

View attachment 261276
Sorry guys if I keep the discussion slowing down. But I know I am s slow learner and if my gut feeling does tell me, that it isnt understood, I see no point in rushing down a road.

Thanks again for everybody taking that time =)

if they are referring to Mirror Trading..then forget it..when you have spent enough time wasting on trying to find out what others are rambling on about..you will find that if you look closely enough..and think about it..they are all talking about the same thing..which is.........

well..who knows..as most SHOULD know by now !!!!

remember..the purpose of DBCF

 

[Pelt]

What are you trying to tell us =)
2. Pelt Chart

I considered your shift of chart visualization (white bar charts to green stick charts) a similar perception change

if they are referring to Mirror Trading..then forget it..when you have spent enough time wasting on trying to find out what others are rambling on about..you will find that if you look closely enough..and think about it..they are all talking about the same thing..which is.........

well..who knows..as most SHOULD know by now !!!!

remember..the purpose of DBCF

I can only speak for myself, and I do not know what mirror trading is...

But the point of THAT post was an aside comment to TW, which had nothing to do with this thread really. If curious, the book we were referencing(which had nothing to do with this thread), talked about a concept where the idea is to buy when the market is rising, and sell when it is falling, full stop. But again, nothing to do with this thread.

FV, the colors you mention, it might have been misunderstood, but those green bars, I was just explaining it to FV, as he would likely get the reference... but it wasnt' about this thread. JUst making a remark about a book.

 

[M4-1]

let us mention a few names that a some of us will know a good bit about..and some just came across or heard of..

in no particular order..

socrates
the bull
mr charts
the obvious
the expert
wtfauoa
cyof
the oracle
redneck



woddy
buffy
larry pesavanto
larry (something) es trader
ken calhoun
mark (something) es trading
van tharp
mark douglas
barry rudd


there are more..but these are just off the top of my head..

and then you have..

datek
td Ameritrade
ninjatrader
esignal
mt4/5
ib tws
multicharts
cqg trader
quotetracker
motivewave
vector vest pro graphics
sierra shart

and heaps more !!!!!!!!!!!!!!!!!!!!!!!!

 

[M4-1]

I can only speak for myself, and I do not know what mirror trading is...

But the point of THAT post was an aside comment to TW, which had nothing to do with this thread really. If curious, the book we were referencing(which had nothing to do with this thread), talked about a concept where the idea is to buy when the market is rising, and sell when it is falling, full stop. But again, nothing to do with this thread.

FV, the colors you mention, it might have been misunderstood, but those green bars, I was just explaining it to FV, as he would likely get the reference... but it wasnt' about this thread. JUst making a remark about a book.

point taken..of course any person can post what ever they like..in relation to what ever they like..but in my books..unless Rule 2 is applicable then it is just more of the same old rubbish..

we are all adults..so..we should all know that no matter what you do in life..there will always be risk associated with it..

go back to the birds singing each morning..the 30 or so hedge sparrows that we feed (although it looks like 50 now) have to go for food and water every day..knowing that at anytime a sparrow hawk might swoop down and end their short time on this earth..

they know that they can feed at our back..plenty of food and water... hedging every way they look if they need to take cover..for whatever reason !

hence why there seems to be 50 or so around at the moment..even though we find the odd one now and again that the cats will catch..

the other day a female cat had one in her mouth..the wife shouted at her..she dropped it and it flew into the hedge to live for another day !!

 

[Pelt]

point taken..of course any person can post what ever they like..in relation to what ever they like..but in my books..unless Rule 2 is applicable then it is just more of the same old rubbish..

I agree, it is ALL rubbish. I have not purchased a trading course in at least 7 years. I have not read any books in trading in at least 5 years. This thread, is literally the ONLY thread I participate in on the ENTIRE internet with regards to trading.

I may have read a few books about psychology or sociology... but they weren't about trading. I did read Denise Shulls book within the past year, but that is not so much about trading as it is more a book about one's self.

Yesterday, I found a used copy for $3.99 USD on ebay, and ordered a book in called "The Technology of Political Control." It was recommended by the the top person in your first list, as it describes how "the herd is controlled and misdirected and dumbed down."

I have deleted ALL files I have compiled about trading from my PC. There is actually a story behind this and the corruption of a hard drive and the files I chose to manually recover.

I wonder how many other fellow travelers have similar experiences with the information they consume.

MP