Why trading is sometimes difficult for me

[777]

I sold NQ today at the red arrow... as you can see market closed there on the 5min bar, then on the next 5 min bar, it opens at same level but then makes a large wick above the open/close level very briefly before closing lower.

Then you can see on the next white line arrow, near the same level I sold, we make another wick higher before closing lower again.

Then later around 9am PT, we can see market making a HL and I buy at the bottom as well noted by the yellow arrow. However market chops/balances for almost a hour before deciding to rally higher.

So the science behind the trading I understand to see where big money usually comes in. My only problem is the stop hunting/poker playing/and starting to get wishywashy when the market takes it's time deciding what to do, whereas for the most part I feel like I already know where the market is gonna go next, I dont understand why it must take 1 hour+ to finally move. I dont understand the fact that it knows for example 7182 is the level, but yet makes large wicks past the level to hunt out stops.

My question is how do you other traders manage the "art" behind trading?

I would bet a lot of money you are supposed to lose trading because:

You do not sound like any strong trader I have ever known

You have to be good enough to beat the spread, commissions and killer competition... much of which is computers trading.

I would bet you have negative expectation on the total money you trade and are supposed to lose. No real edge= losing.

You have to have an edge; direct access and know how to route your orders: low enough commissions; the right software; enough money and probably margin; good money management; emotional control; etc.

I suggest you read Traders of the New Era to get a feel of what professionals trading is like.

The competition is fierce and getting tougher
Most people who were winners 15 years ago now lose or no longer trade.

*you seem so sincere so I tried to be blunt.

Please ask yourself:

Why in the world should I be a winning trader looking at candle sticks, red lines, etc, and thinking like most utube trading videos?

Why should I read a little, watch a video or take a seminar and be able to beat the top trading minds, let alone the googly fast and well programmed computers who pump out a large amount of the volume.

P.S. If I am wrong and you correct the only problem you think you have right now and you go on to make millions, I will be tremendously happy for you ))

But if you keep losing, please reread this post.

 

[Xela]

Both 777 and Traider have given you some really good advice, above.

Different people typically see very different things, when they look at the same chart: from your chart posted above, the immediately striking things I see, myself, are two big, fairly clear 1-2-3 formations, one at the top and one at the bottom, around the areas where you've drawn arrows, both easily and profitably tradable (but with larger stops and perhaps smaller position-sizes, as wisely mentioned by Traider). This kind of observation is easily offered with the benefit of hindsight, I know ... my point is mainly that what we see when looking at charts can say as much about what we're looking for as it does about what's there. And with charts, as with many other things, sometimes the further back you stand, the more you can see.

 

[Palindrome]

Scale out, trade off longer term charts. Try the 15 minute hourly etc. Scale your size down a bit, and make your stops wider.

Algos are trying to jack your money, stop you out... your helping them keep the lights on.
Brokers are rooting for that to happen
Don't be fooled! Don't be the Vig! Wall street is just raking the pot.

The very short term stuff is frustrating to me, just my opinion.

 

[Lee-]

Why not scale it by 40000 and make 8M and retire?

Markets HATE him. Learn this one simple trick to retire early.

 

[SteveH]

To the OP,

Pick any opposite closing bar in a trend that is supported on the trend side of a 20 ema. Measure EVERY MAE / MFE (max fav excursion is 1 tick before the final one in the trend) for taking that as a trend entry (e.g., buy the close of a red bar in an uptrend). You will find that you have HIGH reward to risk ratios for just about all those entries except the last set which is closer to 1:1 RR (i.e., might be up to 3 consecutive red closes just before the end).

What does this tell you? DON'T WORRY ABOUT OPTIMAL ENTRY IN A TREND JUST BE ABLE TO IDENTIFY A TREND EARLY 50% OF THE TIME, AVG GREATER THAN 1.3:1 RR RATIOS AND YOU WILL BE SUCCESSFUL LONG TERM.

You need to accept that, in winning trading systems, very high winning pcts (70%+) yield low reward to risk ratios (1:1 or worse) and more moderate winng pcts (40-60%) yield higher reward to risk ratios (1.3:1 to 2.5:1). This is what the market can give you in the long term.

 

[qxr1011]

I dont understand why it must take 1 hour+ to finally move.

why not?

it knows for example 7182 is the level

market knows nothing

My question is how do you other traders manage the "art" behind trading?

i had a religious friend many years ago

i remember in our conversation with him i pointed that he can not explain many reasons behind god's deeds.. to that he replied that why i decided that gods' deeds have to be understood by the mere mortal, to the mortal god's deeds are not attainable....

the whole "art of trading" is believing in your method and yourself the way my friend believed in god

but the method and yourself better be good

 

[jinxu]

i had a religious friend many years ago

i remember in our conversation with him i pointed that he can not explain many reasons behind god's deeds.. to that he replied that why i decided that gods' deeds have to be understood by the mere mortal, to the mortal god's deeds are not attainable....

the whole "art of trading" is believing in your method and yourself the way my friend believed in god

but the method and yourself better be good

A lot of people assume GOD is a righteous, just, kind, and loving.
But when you look deep into the bible, it says otherwise. The God of the past was violent.

There was the Flood. There was the Exodus. There was the Cruxification. All was very violent events

 

[NeoTrader]

A lot of people assume GOD is a righteous, just, kind, and loving.
But when you look deep into the bible, it says otherwise. The God of the past was violent.

There was the Flood. There was the Exodus. There was the Cruxification. All was very violent events

WTF? That has absolutely nothing to do with what the guy above was saying...

 

[heavenskrow]

thanks for the chart God knows there are few charts posted i do not know why


the big question was why there at the red arrow?

the market was screaming up.

the highest wick, in hindsight, of course, was a clear failure of the market to go up: so after that wick was printed and the bar closed as the place to go short,if you so intended to go short; no idea what the reason to go short after the red arrow
using hindsight is good way to trade

I shorted there due to my system aka edge telling me to sell. I like to fade into the "hype" where I know my risk.

 

[heavenskrow]

I would bet a lot of money you are supposed to lose trading because:

You do not sound like any strong trader I have ever known

You have to be good enough to beat the spread, commissions and killer competition... much of which is computers trading.

I would bet you have negative expectation on the total money you trade and are supposed to lose. No real edge= losing.

You have to have an edge; direct access and know how to route your orders: low enough commissions; the right software; enough money and probably margin; good money management; emotional control; etc.

I suggest you read Traders of the New Era to get a feel of what professionals trading is like.

The competition is fierce and getting tougher
Most people who were winners 15 years ago now lose or no longer trade.

*you seem so sincere so I tried to be blunt.

Please ask yourself:

Why in the world should I be a winning trader looking at candle sticks, red lines, etc, and thinking like most utube trading videos?

Why should I read a little, watch a video or take a seminar and be able to beat the top trading minds, let alone the googly fast and well programmed computers who pump out a large amount of the volume.

P.S. If I am wrong and you correct the only problem you think you have right now and you go on to make millions, I will be tremendously happy for you ))

But if you keep losing, please reread this post.

I only trade 2-3 times a day as of late, and tend to catch most key levels so commission is really no factor.

I do still look at candles-do you have any other thing you recommend? I am always open to learning how to look at certain methods differently

There are no "red lines" or any lines, only "levels" which I have marked that should be where I anticipate market to reverse.

I didn't learn trading from watching youtube videos. I initially read lots of books, made mistakes, read lots of books, made more mistakes, and after an infinite loop of that, started backtesting and forwardtesting....and found my edge. Now just trying to master the "art" behind trading.