Day Trading Master Class

[Elshabarn]

Hey Teamtrader!

Thanks for your interesting aproach.

Beside your four (Day-) trading tools there is one far more important tool, the number 1 for everyone , is the traders mind. Even using the same tools and strategi we will make different decissions.

By long term analysis of my trades i found that, as you said in your posting, that Time and concentration, are indeed very important.


A profitable trading strategi is going long and short (hedged) att the same time with the no stop loss, reasonable margin, and over time both turn into profitable trades. It is just a matter of time. (I call it "BLIND Trades" throwing all theory overboard)

I'm very intrested in those predictive indicators of yours since indicators in my opinion are price following.
Nevertheless I'm using MACD an Stochastics trying to increase probability for each trade and trying to define closing
time. The results are telling me that they are reliable to a certain degree. But isn't every prediction?

Hi Lerakas Libra,

Do you mean one should enter a hedged trade without taking a STOP LOSS? What is the success rate of this system please?

Thanks a million.

 

[TEAMTRADER]

Stop Losses

I do not care what anyone says, you must have a stop loss calculated when taking any position. Only the rich or the stupid can afford to take such huge risks.
The secret is knowing where the stop loss is.
Specific timeframe charts are good for both direction of the lower timeframe and for creating stop losses.
At a later date I may create a new thread showing how to create a correct stop loss as it is fundamental to safe trading.

 

[TEAMTRADER]

predictive indicators

Hi Lerakas Libra,
Stochs and MACD are good - look at the CCI as a competitor to MACD.
One thing I will say though - each timeframe has its own indicators, so backtest the standard ones and AMEND THE SETTINGS ON ALL THE STANDARD INDICATORS.
General indicators are of general use, specific indicators are chart specific.
In the jigsaw of trading, I have my own little saying, "After you have built the foundation, trade what you see, not what you hear of hope."

 

[anciano007]

Stop loss

hey I like your thinking TEAMTRADER, i would like to read about your future approach on how to put a stop loss more effectively, i have been developing my strategy and that has been one of my problems, my trades have gone the direction i had predicted but my stop loss has been hit many times so i've been got out

let me know whenever you're starting any tread about stop losses or on anything else you do, i really like your posts

Anciano007

 

[TEAMTRADER]

stops

Stops are something that are only easy after the event.
I suggest you look at 3 things.
1. Use overbought/sold indicators to give S&R levels from the candle that creates the signal.
2. Draw trendlines over/under these candles as often they are key movers.
3. Get specific ema's for the timeframe you trade so you know exactly when there is a trend in place or there is volatility.
Trade what you see and not what you hear or hope.

 

[zingcal]

Thank you MCPIP.
Just to concentrate the mind, choose the time frame that you are comfortable trading, and lt me know what it is.
I will give an example specific to you so all other can see just how good it is for them and adapt it to their own time frames.

Thanks for your thought provoking posts TeamTrader. It doesn't appear that MCPIP was interested in taking you up on your offer, so perhaps for the benefit of myself and others in the forum how about if I choose a time period? 1 Hour. Cheers

 

[TEAMTRADER]

1hr CHART

Hi MCPIP,
I have prepared the attachment for you.
You no longer need good luck.

 

[TEAMTRADER]

sorry

Sorry Zingcal - Got The Name Wrong - My Sincere Apologies!!

 

[andydoc]

Thank you for that Chart Teamtrader - how do you find CMC I have managed to make good money with them in the past but some of their spikes?!!

Anyway my question is, why (looking at the chart from a prospective viewpoint,) is your oversold signal on the 22nd at 16:00, when the cross appears to be at 17:00 and there is an earlier one at 13:00?

 

[TEAMTRADER]

Andydoc

1. The stochs cross you refer to at 1700 has nothing to do with the S&R line created by the oversold situation. The key is that the S&R lines created by the oversold indicator are then CONFIRMED by something else. The confirmers in this case are the crossing of the stochs AND the cutting of the trendline over the opening prices of the red candles (drawn in red on my document)
2. The earlier one I discounted as it was a candle within a candle and I would wait till the next candle to see if it was confirmed.
3. CMC. They are a broker like all the others. None of them are perfect. In the UK we have it tax free and they have the charting system that suits my eye. I day trade indices mainly as they are easier to trade and make good mony on, but when trading the FX I am aware of the many high impact releases.