M6 - Man, Mind, Money, Markets, Method & Madness
- Thread starter DSM
- Start date
Hello,
Already DSM has given some nice points about Timeframe....here are my few points...
Why TImeframe is Important?
1.it will tell how aggressive you are....in terms no.of trades you are dealing with
for example on a EOD chart you get less signals than 3Min chart.
2.it will define your risk taking capacity you are comfortable with.
3.it will help you to design/modify your trading method...and will give you clues on how to exit the trades or in other words help you to design better Trade management procedures/methodologies.
4.it will also help u to design better Position Sizing techniques depending on ur Objectives/goals which ur going to achieve in your trading.
5.selection of Timeframe also depend upon the market ur dealing with.
Regards,
Already DSM has given some nice points about Timeframe....here are my few points...
Why TImeframe is Important?
1.it will tell how aggressive you are....in terms no.of trades you are dealing with
for example on a EOD chart you get less signals than 3Min chart.
2.it will define your risk taking capacity you are comfortable with.
3.it will help you to design/modify your trading method...and will give you clues on how to exit the trades or in other words help you to design better Trade management procedures/methodologies.
4.it will also help u to design better Position Sizing techniques depending on ur Objectives/goals which ur going to achieve in your trading.
5.selection of Timeframe also depend upon the market ur dealing with.
Regards,
Last 5 crude inventory data release on Wed, have seen it always as an opportunity to make safe trades with @ gain of 3K+/Lot. Have shorted max, and seen MTM 2.2K/Lot, but not taken. There is a rebound in crude prices now and have a marginal loss of 200/lot. Still am holding on to shorts, and am placing SL @ 2.5K/loss per lot. Let's see what happens. Will post charts/learning later.
O.K exited 'Wed. Crude Inventory trade' with a profit of 500/lot. Should I have booked at MTM 2.2L/lot? As per my short experience in this trade, these trades are good for around 3.5-5K/lot depending where the shorts are taken. The data was out at 8:01, and I took my initial position at 8:15, and then at 8:17 (waiting for a bounce at higher prices, knowing that a fake bump up in price was to come after negative data) However, exit was not taken when MTM was 2.2/lot, as I was waiting for MTM to hit around 3K/lot. Need to see where crude closes EOD. My thinking is that biggies are waiting for 11PM before turning the price down, as intraday short positions will be auto squared off at this time. Let's see.
Learning for next : Expect to exit for MTM of 1.5-2K/lot and not be dogmatic about the number at which to book MTM, as thru experience this number will be number refined and defined more objectively.
So the 6th continuous Wed. Crude Inventory trade ends in profit. Am being more confident of this trade, which appears from the fact that I did not watch the terminal and was having dinner, and also, did not place SL figure in the system. As I write this, if I were to hold on, the MTM would be zero, and the track record of successive profit would be broken. If that were to happen, I think it would be kind of good (if the loss was small) since a trader should try to get max out of his trade, and not look to maintain a record of having a continuous profitable run.... record of continuous wins = ego, and that is not good for trading... and it may also mean that the trader is exiting early for record purpose, rather than were he should. As I write this, crude has gone up 5 bucks from my exit level at 11:05 Will track next day's open to see what effect inventory data has on it.
Learning for next : Expect to exit for MTM of 1.5-2K/lot and not be dogmatic about the number at which to book MTM, as thru experience this number will be number refined and defined more objectively.
So the 6th continuous Wed. Crude Inventory trade ends in profit. Am being more confident of this trade, which appears from the fact that I did not watch the terminal and was having dinner, and also, did not place SL figure in the system. As I write this, if I were to hold on, the MTM would be zero, and the track record of successive profit would be broken. If that were to happen, I think it would be kind of good (if the loss was small) since a trader should try to get max out of his trade, and not look to maintain a record of having a continuous profitable run.... record of continuous wins = ego, and that is not good for trading... and it may also mean that the trader is exiting early for record purpose, rather than were he should. As I write this, crude has gone up 5 bucks from my exit level at 11:05 Will track next day's open to see what effect inventory data has on it.
Just sharing a few thoughts after reading post in TJ for the last few days.... The Holy Bhagwat Gita holds much wisdom, but is difficult for a human mind (involved in his daily routines of life) to reflect, comprehend, understand and practice upon its gems and treasures. Every time I have read the Holy book or any part of it, I have marveled at the deep truths and insights. And I think as a trader and as a human being, it is sometimes important to be detached and take a break from the busyness and business of life, and reflect upon life, where we are, what we are doing, and where we are going.....
Quotes :
For the senses wander, and when one lets the mind follow them, it carries wisdom away like a windblown ship on the waters.
The immature think that knowledge and action are different, but the wise see them as the same
Perform all thy actions with mind concentrated on the Divine, renouncing attachment and looking upon success and failure with an equal eye.
Freedom from activity is never achieved by abstaining from action. Nobody can become perfect by merely ceasing to act. In fact, nobody can ever rest from his activity even for a moment. All are helplessly forced to act. The truly admirable man controls his senses by the power of his will. All his actions will be disinterested.
Activity is better than inertia. Act, but with self-control.
Amit, the MTM was a profit of 2.2/Lot, but not taken. Actually, after going short post release of data, I usually watch for four things to work in my favor. One is the charts of MCX crude - for price to move in my direction (which it did), second watch for crude charts on Comex for clues (I did not), Order book (see the level and quantity of buy/sell) which indicates strength or weakness(again I did not do this) and lastly, time.... Time is an important factor, still subjective in my mind, and have not made any rule as to how much time I need to give the trade to work out in my favour. I had a feeling seeing that how the price was resisting the down move with time, and still hanging on, it could rebound. But last time, it did rebound, only to go lower. So its personal bias and objectivity which decides how one takes a call. The conclusion though for me now is that I need to pay attention to all the four factors stated, and should not trade with a feeling of hubris (self assured invincibility) 
Quote:
Originally Posted by DSM View Post
O.K exited 'Wed. Crude Inventory trade' with a profit of 500/lot. Should I have booked at MTM 2.2L/lot? As per my short experience in this trade, these trades are good for around 3.5-5K/lot depending where the shorts are taken. DSM
Is this a typing error ?
Quote:
Originally Posted by DSM View Post
O.K exited 'Wed. Crude Inventory trade' with a profit of 500/lot. Should I have booked at MTM 2.2L/lot? As per my short experience in this trade, these trades are good for around 3.5-5K/lot depending where the shorts are taken. DSM
Is this a typing error ?
Can Forex Trading Be Taught?
By Nial Fuller
http://www.learntotradethemarket.co...ht-learn-how?awt_l=FR3rM&awt_m=1jJQMHdh4XwtMW
Excerpts :
Many aspiring Forex traders believe they do not need any outside help when learning how to trade the Forex market. I call “an aspiring trader” anybody who is still learning to trade and has not yet been profitable at year’s end. Part of the allure of trading is the independent lifestyle and freedom that it can provide for you if you are successful at it, but it takes time and knowledge to achieve this, and that knowledge needs to come from somewhere. One negative aspect of the independent attitude that trading elicits in people is the fact that many new or struggling traders believe they can effectively teach themselves how to profitably trade the Forex market.
It is almost always after years of frustration and thousands of dollars of lost money and time in trial and error trying to trade with useless trading systems. There is a very simple way to greatly reduce the probability of having to experience such emotionally and financially painful events; follow a respected trading mentor who can share knowledge and years of experiences with you. There is no better way to learn how to trade than from somebody who is already successful in the trading business.
Nature vs. Nurture
The debate over whether or not trading can be taught simply boils down to the age old psychology issue of “nature vs. nurture”, that is, is trading a skill that can be taught to people who have no prior experience or is it just a natural talent that you are either born with or not?
This issue of trading being taught vs. it being a natural gift was first made popular by the famous experiment by Richard Dennis and Bill Eckhardt who had an ongoing dispute in mid-1983 about whether traders were born or made. Dennis believed he could teach people to become great traders but Eckhardt thought genetics were the determining factor. They posted ads for trading apprentices in the major financial newspapers stating that after a brief training session, the trainees would be supplied with their own trading account.
The group was invited to Chicago in December of 1983, after learning the rules Dennis wanted them to trade with; they began trading small accounts in January and after they proved themselves Dennis funded most of the trainees with 1 million dollars in February. This group became known as the “Turtles”.The Turtles went on to become the most famous experiment in trading history because over the next four years they earned a total sum of over $100 million dollars. Richard Dennis thus proved that a simple set of rules could be used to take people with little or no trading experience and turn them into very profitable traders.
The Importance of learning from a Mentor
One of the most ironic aspects of Forex currency trading is that most people think they do not need assistance from a successful professional forex trader while learning to trade. Most people are fully aware that only about 10% of people that attempt trading end up becoming professionals, the other 90% either quit or spend years of grueling trial and error before they figure it out or give up.
If trading is so difficult and most everyone knows it, then why are so few traders willing to accept help from someone who has already figured out what it takes to become successful? The simple answer is ego, arrogance, ignorance, any or all of the above. The bottom line however, is that ego and arrogance mean nothing to the market.
Almost every single job in the “real world” requires you be trained “on the job” by a professional who is already experienced at the job.
Price Action is not just a set of rules
While the example of Richard Dennis and the “turtles” was a good example of the fact that trading can indeed be taught, there is a problem with learning a strict set of trading rules. Specifically, strict trading rules will not work in all market conditions; they may work great in a bull market or in a bear market, but fail miserably in sideways markets. What learning price action does for you is gives you a unique perspective on the market that allows you to profit in all market conditions. You are not just learning a strict set of rules that will only work in a bull market; you are learning a way of making sense out of price movement and learning how to spot specific price action setups that can be profitable in all market conditions.
By Nial Fuller
http://www.learntotradethemarket.co...ht-learn-how?awt_l=FR3rM&awt_m=1jJQMHdh4XwtMW
Excerpts :
Many aspiring Forex traders believe they do not need any outside help when learning how to trade the Forex market. I call “an aspiring trader” anybody who is still learning to trade and has not yet been profitable at year’s end. Part of the allure of trading is the independent lifestyle and freedom that it can provide for you if you are successful at it, but it takes time and knowledge to achieve this, and that knowledge needs to come from somewhere. One negative aspect of the independent attitude that trading elicits in people is the fact that many new or struggling traders believe they can effectively teach themselves how to profitably trade the Forex market.
It is almost always after years of frustration and thousands of dollars of lost money and time in trial and error trying to trade with useless trading systems. There is a very simple way to greatly reduce the probability of having to experience such emotionally and financially painful events; follow a respected trading mentor who can share knowledge and years of experiences with you. There is no better way to learn how to trade than from somebody who is already successful in the trading business.
Nature vs. Nurture
The debate over whether or not trading can be taught simply boils down to the age old psychology issue of “nature vs. nurture”, that is, is trading a skill that can be taught to people who have no prior experience or is it just a natural talent that you are either born with or not?
This issue of trading being taught vs. it being a natural gift was first made popular by the famous experiment by Richard Dennis and Bill Eckhardt who had an ongoing dispute in mid-1983 about whether traders were born or made. Dennis believed he could teach people to become great traders but Eckhardt thought genetics were the determining factor. They posted ads for trading apprentices in the major financial newspapers stating that after a brief training session, the trainees would be supplied with their own trading account.
The group was invited to Chicago in December of 1983, after learning the rules Dennis wanted them to trade with; they began trading small accounts in January and after they proved themselves Dennis funded most of the trainees with 1 million dollars in February. This group became known as the “Turtles”.The Turtles went on to become the most famous experiment in trading history because over the next four years they earned a total sum of over $100 million dollars. Richard Dennis thus proved that a simple set of rules could be used to take people with little or no trading experience and turn them into very profitable traders.
The Importance of learning from a Mentor
One of the most ironic aspects of Forex currency trading is that most people think they do not need assistance from a successful professional forex trader while learning to trade. Most people are fully aware that only about 10% of people that attempt trading end up becoming professionals, the other 90% either quit or spend years of grueling trial and error before they figure it out or give up.
If trading is so difficult and most everyone knows it, then why are so few traders willing to accept help from someone who has already figured out what it takes to become successful? The simple answer is ego, arrogance, ignorance, any or all of the above. The bottom line however, is that ego and arrogance mean nothing to the market.
Almost every single job in the “real world” requires you be trained “on the job” by a professional who is already experienced at the job.
Price Action is not just a set of rules
While the example of Richard Dennis and the “turtles” was a good example of the fact that trading can indeed be taught, there is a problem with learning a strict set of trading rules. Specifically, strict trading rules will not work in all market conditions; they may work great in a bull market or in a bear market, but fail miserably in sideways markets. What learning price action does for you is gives you a unique perspective on the market that allows you to profit in all market conditions. You are not just learning a strict set of rules that will only work in a bull market; you are learning a way of making sense out of price movement and learning how to spot specific price action setups that can be profitable in all market conditions.
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