Nodoji Bighog trading strategies

bighog   Registered: Aug 2005 Posts: 2228	07-25-13 03:31 AM Who has looked into there average daily "take" from the days range?A good well disciplined day trader with an "EDGE" defined and constructed by that individual only should be able to average approx. booking 1/2 of the daily range. That includes all whip-saw days that can be rough on the best of us. What douses the bad days are the runner (trend) days where we get more than 1/2 the intraday range.Anyone that can get a consistent 1/2 booked on average is a really good trader. The key to hitting that nut is understanding what worked yesterday is out to fool you today. There are only a very select "action" moves that work for whatever your 'edge" is. Momentum works for me while chop eats me alive if I try to outsmart anything but momentum runners. True, at times the daily range can get rather punk which must be considered. (there are other toys to work in times of slack though if desired)The days we get a bunch of handles, ticks are sweet, the days we see less workable moves are not to be discouraging because we know the average will be ok. The good news about tough days is we no longer give back profits, like in the beginning where a weeks charmed trading got trashed by being a fool.An interesting stat would be if anyone that has been showing consistent profitable trading can feel good by knowing "ON AVERAGE" their trading has improved by booking larger and larger amounts of the days range............Not the amount of money made, that can always be improved by adding cars. But real improvement.
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bighog   Registered: Aug 2005 Posts: 2228	06-22-13 03:12 PM Quote from bighog: A hobby is just a hobby, a business is just a business. Worlds apart for sure. What you fail to comprehend is that trading is like any other professional path taken to produce an income. Their are professional dues to be paid before you reach the promised land. How many lawyers become decent trail lawyers compared to those just filing papers at the county clerks office knowing it will be settled out of court for some chicken feed amount? About the 8 hour job which you have concluded is beyond your reach. Guess who in general trades LESS than 8 whole hours a day. Give up? I will be kind enough to tell you who. The winners, that is who, they got past the hobby stage and paid the dues in time/effort and graduated to the BIG LEAGUES. Winning day traders do NOT spend hours and hours watching a screen after they find what works FOR THEM as an individual.   Typical time spent entering and exiting orders on a daily basis: From 0930 est to about 1400 unless a fed report is coming out or I am casually watching for an afternoon reversal signal like a "DC" in ES. A DC (double cross) is a reversal where price recrosses the 20 and the previous trend.........look for a basing first and never forget the 1-2-3. Casual glances at a screen (4 toys actually) is all that is needed to glean for a prospective upcoming event. The difficult part of trading is in the beginning, then it gets SIMPLE. Simple is as simple does. PS: Many "DC" signals come out of the blue and those are usually the ones that run for a solid 10 handles if not completely reversing the ENTIRE early trend of the day.
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bighog   Registered: Aug 2005 Posts: 2228	07-03-13 01:42 AM Quote from bighog: Do not feel lonely young lady, there is nary a soul on the planet that can predict mkt direction with certainty. Thank goodness! What you described in those very few words is the absolute extent anyone will ever extract from TA, PERIOD. There are far to many variables as inputs from the players themselves for any one person/computer to unravel and say for certain that this or that will always work 100%, again THANK GOODNESS! With all that in mind, is it easy to understand why so many fail to defeat the trading game. Now do not get me wrong, I am all for everyone getting to the winner circle, but we all know most will fall short of that goal because they never grasp the concept of "self". Your statement that TA will only get anyone only so far is so accurate it will be fluffed by 95% of readers. "she is wrong, we all know there is a secret to winning because many say they have the grail but will not say so", I love that one. TA, is like having a GPS system on your dashboard, it will tell you where you are going but can not tell you what to do once you get there. Sound familiar? Here is the down and dirty solution to a game that has more divisive inputs than your mother in-law has to your marriage. Understand TA, then trade until your mistakes stick you in the eye until it hurts........discard that tactic and move on, FIND what works for you and for the life of you, DO NOT try to find anymore, milk a couple cows and let the rest just roam the field and forget them. BOTTOM LINE: NO single trader out there can do much more than what I just described, it is impossible to solve the whole mkt problem. Slay 90% of the days noise and the remaining 10% will be very kind to you as long as you wait patiently for the mkt to show its hand first. After TA, comes your intuition, your skill, your courage, your mistakes, your blood, your guts, your mistakes, your highs, your lows.............face it..........this game is almost as tough as politics, you MUST have a thick skin to get where LESS IS MORE.   PS: Intraday swinging is what works for me. ES is still number uno....... that instrument works for intraday swings because the volume is so thick that "monkey see, Monkey do" simply works. I get the runs and avoid the flatish ema and "all is good" Trendline (visualized in the head) 20 ema plotted, early run, a late reversal.......those are all that is need to seek out.......15 handles. (8 trades is es to get that amount, not two, ha)
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bighog   Registered: Aug 2005 Posts: 2228	07-21-13 04:25 PM Truth be known: Watching price moves 'within' the bars period (5min) will eliminate any need to follow volume because those movements tell you who was in control and butt spanking the other guy.....Also, if one gets a good read of price moves 'within' the 5m bar there is no sense looking at a 1min bar, peeking at a 1m bar is a distraction from the 5m. I assure you, if reading the 5m correctly, you can be AHEAD of the 1m bar.A well developed trader watching price moves taking place is innately visualizing what is "COMING NEXT" and digesting the INFORMATION being delivered in order to make his/her next trade/exit based on that and that information only (unless he/she is determined to either let the max stop get tagged and/or let it ride to targeted exit). There will be nothing printed in the 1m bars that has not already been seen as the action in the 5m unfolds in real time. Watching the dom is a joke at best, the dom has about as much relevance to profits as a commercial has to a great movie........just useless dribble until the action returns in what really matters.How the trade is finessed once filled is what makes the whole process gel. All of the proper ingredients, right temperature and watchful eye will go to waste if one does not stir correctly.PS: No, I am not picking on nodoji and her using the 1m chart, PSS: Let us change laws so we can eliminate these flying rats once and for all http://icwdm.org/handbook/birds/Gulls.asp
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bighog   Registered: Aug 2005 Posts: 2228	07-27-13 01:05 AM I will share what I call an "EDGE" for the opening bar range breakout strategy called "My 4x4 that uses no gas"Keep in mind this is for the 0930 EST bars range. We are talking ES here. The 4x4 means 4 contracts each trade and seeking 4 handles (16 ticks) and if/when satisfied book the trade/s and move on to your regular day trade tactics for the rest of the day, or just call $800 good for the day if desired. Surprise yourself!The STOP loss can either be the other side of the bars range limit or anything in between depending on how your breakfast is feeding your brain.If the STOP is the other extreme end of the ORB, then by all means do a SAR. I like smaller STOPS and will wait to see how price acts as it nails either side........BUT SAR works best in tighter open bar range.In general, unless we get a sissy type whipsaw over and over open, a couple small stop-outs will be reversed once price takes off for a few handles.Some days, price takes out either one side or the other of the orb (open range bar) and never looks back.Extend the mechanical contest to 5 handles on 4 cars and you just nailed a grand. Depending on the action itself (subjective) I will punch out at +2 or +3 handles and reenter for the 4. The nice days are when you get 4 handles in a single trade, sweet!That is what I call an EDGE for the opening of the day.......... PS: yeah, yeah, I know, it is not wise to give away secrets in a public forum, LOL. But, what many new boys/girls only figure out later is that.........you want friends following you so you can profit from them..
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NoDoji   Registered: May 2008 Posts: 8301	07-26-13 11:02 PM It's a mechanical strategy with specific rules. It's a with-trend entry tactic in a strong trend using a 1-min chart for intraday scalping. I've already shared a couple of simplified versions of it on ET. If you want to refine it, have at it. Since there is no bad entry in a strong trend, any similar tactic will do.Just look at a 1-min chart of CL and observe when price breaks out of a 5-min range, triangle, or HOD/LOD by at least 10 ticks. Make notes about what happens next. If you do the work, you'll find out how to easily profit from these instances when the CL becomes the poster child for Newton's First Law of Motion.
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NoDoji   Registered: May 2008 Posts: 8301	07-27-13 04:52 AM Classic setups can be found here, but you have to do the work to determine a) the context in which to trade them and b) how to manage your risk/reward.http://www.daytradingcoach.com/dayt...ysis-course.htmThis little pattern is one of the best, IMHO:http://www.dacharts.com/123.htmIt's not always lower high (off the top) or higher low (off the bottom). Sometimes it's double top (or double bottom) and sometimes it's slightly higher high or slightly lower low (failed breakout of previous high/low).Bob Volman describes some great setups in his book "Forex Price Action Scalping".If you ever took calculus in school and got at least a "B" average, then you may find Al Brooks "Reading Price Charts Bar By Bar" the holy bible of price action setups.
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NoDoji   Registered: May 2008 Posts: 8301	07-27-13 07:01 PM Quote from d08: the market always keeps changing.   I'm purely a chartist and whether I look at daily, weekly and monthly price charts over decades or I look at intraday charts over years, I can't see anything different, but I constantly see posts on this forum that markets have changed. Are these changes related to something other than price movement?
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NoDoji   Registered: May 2008 Posts: 8301	07-27-13 07:12 PM Quote from kuvala: The idea of this thread is from a great advise from Market Wizards, which says to find that one setup which works great for anyone's trading style and keep on doing the same.   This is my top advice for everyone who asks me for help. Choose a single setup/tactic and master it to the point that you see it and you place the order without further thought or hesitation. When I was absolute beginner with just over 3 months of trading experience (and no specific plan other than trade entry triggers), I decided I wanted to be a day trader instead of a swing trader. I found a setup that made absolute sense to me (basically a 1-2-3 setup) and I paper traded it for a few weeks very successfully. Finally I took the plunge and started trading it live and I think I made around $17K in three weeks. Then I started messing with a simple plan and commenced to lose a lot of money. It took me a long time to get back to what in essence is that same simple plan.
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NoDoji   Registered: May 2008 Posts: 8301	07-27-13 07:36 PM Quote from hitchslap: I'm no expert, but I get the feeling that the current market conditions aren't favourable for Cornix's method, however, he's still keeping his head above water. It's not as though he's hemorrhaging money. He's around break-even. I think that when the conditions change, he'll probably start killing the market. I guess if you can break even when the market isn't playing ball, then you're doing OK.   There are periods of price action where the setup appears but there's no follow through. I've had strings of 6 or more small losers/break-even trades, then suddenly the game's on, you're on the stronger team because of TA, and the whole team's got your back. I once had a day with a 9% win rate and ended up with a good day's pay as a result of using TA to ensure I'm positioned with the stronger team once the scrimmages are over and the big game is underway.
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NoDoji   Registered: May 2008 Posts: 8301	07-27-13 08:22 PM Quote from marketsurfer: It feels good to think about the market in nice sentiments. Nothing wrong with that when describing what happened. However, the truth is, it feels good to nail the trend after 6 plus tries and ride it to profits superseding each of the previous losses and commissions. Cutting losers and letting winners run is how you win--- this has nothing to do with TA entries, particularly those that lose 6 plus times in a row. It's just randomness working for you and you playing the game untill luck provides profits. No doubt it's great skill to cut losers and let winners run, but this nothing to do with TA based entries.   It's not randomness. TA allows me to be positioned in the right direction when price makes the big move. The trader without a plan or the one who trades based on strong opinion or the inexperienced trader would likely have misinterpreted what price was saying or been completely unaware of how to catch a runner in the first place. Such a person would be far more likely to have traded emotionally, ended up on wrong team, and instead of quickly cutting the loss and reversing sides for the big winner, would've averaged down during the breakout run and cried "Uncle!" just before the end of the trend. I've done this personally, and I've watched other traders do this many times. What they do is random, meaning they're gambling. My TA-based trading does not involve gambling (random bets). I know in advance that if I trade every valid signal and manage the trade according to the fixed rules of my plan, I will be profitable enough at the end of the month to cover living expenses, entertainment expenses, taxes, and retirement savings.
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NoDoji   Registered: May 2008 Posts: 8301	07-28-13 07:55 PM Quote from jnbadger: It is incredibly simple, but it also flies in the face of human nature. That's where this so called "edge" is that you guys are so obsessed with.   Consistently profitable trading definitely flies in the face of human nature. Human nature wants to get in at tops and bottoms (get the best possible deal), and human nature will be imprinted with the memory of times when it succeeds in doing this because of the huge ego gratification that ensues and will sweep under the rug the failures (addiction to random rewards). Human nature finds it very easy to do what feels right at the time even if there's no statistical evidence backing up the decision (and even when statistical evidence is against it), and human nature is conditioned to believe that you must fight for what you believe in and when something feels right it's easy to believe in it, and so human nature ensures that most traders will trade their bias rather than a positive expectancy plan. When what you've been doing is wrong and you're a losing trader, doing what's right will feel wrong. Human nature finds it very difficult to do what feels wrong because that would require acting against its beliefs. Even when presented with objective statistical evidence backing up actions that produce the best possible overall result, human nature ensures that most people will act on their beliefs.
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NoDoji   Registered: May 2008 Posts: 8301	07-24-13 12:24 AM Quote from marketsurfer: I fully understand the scalability issue. However, I would like to observe you trade in real time with no other information than a chart. You do realize that is incredibly rare and it would be quite impressive to observe it live. This is why I keep pushing the TA brigade here--- I want it to be true but my experience and influencers have led me the other way. surf   You'll just have to trust that I trade this way, because I'm not on display, I'm trading for a living. Pull up a 5-min and 1-min chart of CL and annotate these trades. You'll see how intraday scalpers use S/R and pure price action to extract bits of moves from the active little instruments like CL: Preparation: Prior to the crude oil pit open I identify a channeling down trend in the overnight session and draw support and resistance lines, connecting the swing highs from the overnight session and placing a parallel channel line across the latest lower low (8:20am ET). I notice that the last new low came out of narrow range consolidation contained by the 7:45 bar. The low of that consolidation range is 106.24. If the down trending channel continues to hold, that price level just about coincides with the down trend line I drew connecting the overnight swing highs. That will be key resistance. Trading begins: Just before the open, I place a sell stop to trade to the short side off the 1-min chart (1-min with-trend continuation for a test of the previous low.) The pit session opens and price makes a bullish run up right through the significantly lower high that printed during the 8:40 ET bar. That was a surprise. I realize there is very key resistance overhead and since there was no pause or pullback for me to get long in that opening run, I place an offer to sell the upper trend line which happens to coincide with the narrow range consolidation low described previously. This is an anticipatory trade; I’m using technical price analysis involving confluence of two identical resistance levels to enter a low risk trade (13 tick stop loss) in the direction of the overall trend (which is still down until that channel breaks out). My offer is taken and price immediately turns. Because price ran non-stop to that upper channel, I assume the pullback to the lower channel line will be interrupted by defense at every level, so I place a hard target just above the round number for a 21-tick profit. I see a 1-min with-trend continuation pattern setting up for a long trade, but price hasn’t broken out of the down trending channel yet, so I do not trade this pattern by itself. I only trade this pattern in the context of a well-defined trend, which at this point is still down. By the close of the 9:11 bar on the 1-min chart, a 1-2-3 reversal pattern off that upper trend line is in play and I that’s my signal to get short. Price comes within 1 tick of my offer and stalls. I pay a bit extra to get in at 106.12 because the R:R still fits within my plan: My risk will be 13 ticks and my hard target will be 15 ticks, with a bid to take profit placed 1 tick above the swing high that broke out during the opening run, the break of the 8:40 bar high on the 5-min chart. My bid is lifted almost to the tick which alerts me to calculate the R:R of a 1-min long entry from that level. I see immediately that there’s congestion between camps, so I wait for clarity. Despite the strength of the run up from the open, the larger channel could still be very much in play, meaning more short setups coming. The price action of the 9:20 bar on the 1-min chart clears the congestion and I look for a long entry setup. The close of the 9:22 bar tells me further pullback will be unlikely if that bar’s high breaks, so I place a buy stop there to position long, looking for a test of, and likely break of, the upper trend line. The trend line breaks, as does the previous swing high, but price stops short of breaking through the 106.35 R from pre-market. I give price a couple chances to try again and end up taking a 10-tick scalp. Price then pulls back to my entry price during the 9:29 bar and closes with that price as the low. This level is approximately a pullback to that previous down trend line resistance (previous R becomes S), and I jump in long again at 106.21. I have no target calculated other than “a break of 106.35” in my head and I quickly draw a 1-min channel across the 106.32 high and it looks like price should hit 106.39. I place a 20-tick hard target and prepare to take a scalper’s profit if it doesn’t get there. My offer is taken and I call it a day. Now I've revealed all the price action trading secrets of the magic price action gurus. There's big edges in them there price bars. Take what you will and enjoy!
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NoDoji   Registered: May 2008 Posts: 8301	07-17-13 05:43 PM Quote from Tiras: As difficult as it was to admit to myself, I think I have a list of psychological shortcomings that are preventing me from being consistently profitable: [list][*] I have a gambling issue. You may understand price action, but your gambling has addicted you to random rewards, and you're not trading a plan. Willpower rarely overcomes addiction, but 12-step recovery programs have helped "hopeless" cases turn their lives around as long as the addict continues to do what works every single day. In the Foreword to Mark Douglas' Trading in the Zone, Thom Hartle writes: "The 95% failure rate makes sense when you consider how most of us experience life, using skills learned as we grow. When it comes to trading, however, it turns out that the skills we learn to earn high marks in school, advance our careers, and create relationships with other people, the skills we are taught that should carry us through life, turn out to be inappropriate for trading. Traders, we find out, must learn to think in terms of probabilities and to surrender all of the skills we have acquired to achieve virtually every other aspect of our lives." Nearly every facet of our lives revolves around the quest for something as close to certainty as possible, and success is often defined by finding oneself rated in the top percentiles. Yet successful trading depends on narrow margins of positive expectancy and the ability to accept what feels like "failure" all the time. Trading losses in a winning system are crucial to the profitability of the system because we cannot know the outcome of any individual trade, only the odds of net profitability over a series of trades. Mark Douglas captures the essence of profitable trading with what I like to call The 5 & 7: The 5 Fundamental Truths of Trading: 1. Anything can happen. 2. You don’t need to know what is going to happen next to make money. 3. There is a random distribution between wins and losses for any given set of variables that define an edge. 4. An edge is nothing more than an indication of a higher probability of one thing happening over another. 5. Every moment in the market is unique. The 7 Principles of Consistency: 1. I objectively identify my edges. 2. I predefine the risk of every trade. 3. I completely accept the risk or I am willing to let go of the trade. 4. I act on my edges without reservation or hesitation. 5. I pay myself as the market makes money available to me. 6. I continually monitor my susceptibility for making errors. 7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them. Douglas tells us (and the emphasis is mine), "...to whatever degree you haven’t accepted the risk, is the same degree to which you will avoid the risk. Trying to avoid something that is unavoidable will have disastrous effects on your ability to trade successfully. To operate effectively in the trading environment, we need rules and boundaries to guide our behavior. It is a simple fact of trading that the potential exists to do enormous damage to ourselves – damage that can be way out of proportion to what we may think is possible. In trading, no one (except yourself) is going to force you to decide in advance what your risk is. In fact, what we have is a limitless environment, where virtually anything can happen at any moment and only the consistent winners define their risk in advance of putting on a trade. For everyone else, defining the risk in advance would force you to confront the reality that each trade has a probable outcome, meaning that it could be a loser. Consistent losers do almost anything to avoid accepting the reality that, no matter how good a trade looks, it could lose." If you want consistent success in trading, over time and through varying market conditions, if you want to trade for a living, at the very least you have to do ample research and develop a plan based on favorable probabilities. That’s the absolute minimum requirement. Then comes the real work: learning to trade your plan or automating your plan without overriding it. Mastering one part of your plan isn't good enough. It must be mastered as a whole. Positive expectancy comes from a combination of win rate and risk:reward ratio, just as hydrogen and oxygen are required to make water. If you learn to hold trades until you're stopped out or your profit target is filled, that may be a huge step forward for you psychologically, but if you haven't mastered the ability to trade every valid setup without hesitation, your excellent trade management ability won't help much at all. Or maybe you have no problem jumping on every valid trade opportunity that presents itself, but you move stops and targets around. There goes your edge! A positive expectancy trading plan offers an environment of certainty, but it doesn't feel like certainty in real time because it requires what we refer to as "losses" and the concept of "loss" has a negative connotation for us due to a lifetime of programming. In trading, losses that occur as part of a well-research trading plan are absolutely necessary, Without embracing them, you're attempting the equivalent of trying to quench your thirst by inhaling some hydrogen and then later inhaling some oxygen.
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fastest Way to Lose Money Day Trading List

Handle123
 

Registered: Aug 2007
Posts: 633

 

08-10-12 03:24 AM

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Quote from Satan's Helper:

What are the fastest ways to losing money day trading that you know of? To start I have:

Not knowing the trend.

Chasing Stocks.

Giving up the spread.

Praying.

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Not having a TIME limit, on profitable trades that get your target, find out what the "mean" amount of time it took for these trades to take. Over staying your welcome usually causes losses.

If trend trader, and EMA is cutting thru middle of bars, that is chop.

Have set amount of loss before being stopped out to make new target your original entry price.

Breakouts normally come back to trendline or beyond to get rid of weak hands, often times this is best place to enter for first time.

Revenge trading cause your pissed trade took you out at or one tick beyond your protective stop.

Bored trading cause you want to be entertained instead of making money.

Having 1-2 entry signals and not having 40 reasons of money management.

Mistake trades and "hoping" they will come back, when hoping it means it is hopeless, just get out.

Not have a back up brokerage account up and running if you lose feed, not having backup Internet, T1, cable, DSL and satelite, pick two.

If you are scalping, using a smaller timeframe to get out of trade faster using Price action.

Not using Elliot wave- meaning, if too deep into existing trend, chances are you will be last to the party.

If you can't make a profit cause of the spread, really need to figure out different approach, it is so tough to maintain high degrees of concentration.

Not putting on trades first hour of the day session, best movements normally.

Don't trade just before a report. Slippage is a bitch.

Unless you can make money several years in a row and trading size, not prudent to avoid stops.

Unless your weekly losing percentages are under 10%, leveraging down is bad news for most. And when you do ave down, losses are staggering, so it must fit your personality and your account.

Drawdown, if method you are using doesn't match your personality, you won't be able to sleep.

When a signal is NOT a signal. Think of all the reasons when not to take that signal, bars expanding beyond the norm, world gov'ts, USA gov't, report coming out, 10.00pt one minute bar...

Being lazy, do your own work, forums were to give us ideas, not step by step approachs.

Leaving computer thinking you canceled all orders.

Nervous twitch in thumb and then find out you have four times as many.

Trading while drunk, flu, having sex and putting together Xmas bikes. Some had happy endings but all cost me money, LOL.

These are from MY experiences.

How to create a strategy

How to Create a Strategy

This is time-consuming part, but can also be fun. For me the real fun is testing out what I come up with in my time watching charts, but before we can test, we need an idea. How I generate ideas is by watching charts, both past and real-time. No matter what time frame I make my charts, I look for moves where there was good money to be made. Once I have found a move that looks profitable I start to ask myself questions about it:

-What precipitated the move?

-Was it a chart pattern, a candlestick pattern, a news event or certain time of day? These are samples of the questions you want to attempt to answer.

-Where could I enter?

-How could I have gotten into the trade?

-Looking at my answers from above, how could I take advantage of this opportunity in real-time?

-Does the pattern I am watching give an entry signal such as a break out of resistance/support/pattern, a certain amount of movement before it takes off, a certain time of day, a short term reversal pattern?

-Are there any indicators that aid in this?

-Does the currency pair generally stay within an average range for the day?

-Look for anything that would allow you to enter into the big move as it is happening.

-Where could I exit?

-This is very important – more important than the entry!

-What signals are present once the move has topped or bottomed and started to reverse?

-How can you stay in the move to capture the bulk of it, but also not give up too much profit when it reverses?

-Are there any indicators that aid in this?

-Would a trailing stop have allowed me to capture a large profit? If so, what should my trailing stop be?

-Would a fixed number profit target work (ie. if stop is $100, then profit target is $350)

-Does the currency pair generally stay within a certain percentage move for the day?

-Money management – is the trade worth taking?

-From the entry point you identify, what is your risk in dollars based on your position size?

-What is your potential profit?

-Based on the above two answers, was the trade worth taking? If the risk is too large, or you are getting into moves too late you will need to adjust. If you are giving up too much profit when prices reverse, you will also need to adjust.

-Other things to consider

-Does this signal you identify for entry occur at other times, and not just before large moves? I.e are you going to get a lot of false signals?

-Can you cut down on false signals by only trading a certain time of day, adding indicators, or pattern filters?

In short, you want to analyze your charts and look at them as opportunities. Then examine those opportunities and construct how you turn those opportunities into real money in your pocket, without exposing yourself to excessive risk. Once you have gone through several opportunities in this fashion you will be well on your way to making it a profitable strategy. See if the strategy worked on recent movements, and if it works on upcoming movements. If it does, then start testing it in real-time.

Trade failed patterns

Here's a working strategy, hopefully you got what it takes to execute it.

Study technical analysis, typical patterns, support, resistance, the usual stuff that people think that has an edge but really does not because it's quite random in its nature.

Study them well, as if they were your bread and butter.

Learn to spot them in charts that matter to big money, especially once they have confirmed. Don't settle with one instrument, multiply the frequency, scanning is imperative.

Now here comes the unconventional approach that will make you money provided you have the discipline for it.

You need to determine when selling will occur or when buying will occur before you commit to a position.

When you can predict that selling will occur you take a short position.

When you can predict that buying will occur you take a long position.

Next step....

What creates selling ? Longs throwing the towel.

What creates buying ? Shorts throwing the towel.

How do you determine this ?

When a conventional clean pattern on a conventional clean chart fails.

Those who bought or shorted based on the pattern must exit, throw the towel, and this type of information, is valuable as you know what they must do next, most of them will exit at market, this creates the momentum required for you to profit off your position.

Pattern conclusion is random, so fading them is no good, you must wait until the confirmed pattern fails to obtain the required information.

There you go, a working strategy posted for free, now let's see if you can execute it, that's the hard part.

Enjoy.

Master One Forex Trading Strategy at a Time

Forget everything you have learned up to this point in your trading career, because if you truly want to master a new forex trading strategy you really need to wipe the slate clean of all the confusing indicator and software based trading systems you have likely used thus far. One of the biggest problems that plague traders who are trying to adopt a new approach to the forex market is that they seem to bring a lot of preconceived notions and failed trading concepts with them. If you really want to excel at forex trading and adopt a fresh new trading strategy, you need to focus on one strategy or way of thinking and stop allowing previously failed trading methods to influence your current perspective on the market.

• Train your Brain

Learning to master one trading setup at a time will help you properly train your brain to become more disciplined and objective, two characteristics that you absolutely must possess if you wish to excel at forex trading. The process of truly mastering and “owning” one forex trading setup at a time might take months or even years to accomplish, but your chances of making money are increased dramatically by doing so. After you completely master one trading setup you will know almost instantly whether or not your setup is present, there will still be some discretion involved, but owning and mastering a setup means that you have fine-tuned your sense of discretion when it comes to deciding which trades to take and which ones to pass on. Many traders search long and hard for some “holy-grail” trading system that allows them to avoid having to develop their discretionary trading skills, unfortunately for them, professional trading inherently involves a fine-tuned sense of being able to discern between A, B, and C grade trade setups.

The discipline and objectivity that you will require as a result of learning to master one forex trading strategy at a time should spill over into other areas of your trading such as managing your risk and remaining calm and collected. When your thoughts are scattered on multiple trading strategies and (or) you have little confidence in the strategy you are currently using, you are obviously not going to make very wise trading decisions. Learning to master and “own” one forex trading strategy at a time will solve both of these problems because your focus will not be scattered amongst multiple strategies and you will naturally gain confidence in each setup as you master them one by one. Essentially, our goal in mastering one setup at a time is to reduce variables in our trading, many traders do they exact opposite when starting out by actually increasing variables through analyzing greater and greater amounts of technical and fundamental market data. Yet, the reason most traders lose money is not because they aren’t analyzing enough data, it’s because they over-trade, over-leverage, and analyze TOO MUCH data.

• Learn to Think like your Mentor

Obviously, if you are looking for a new trading strategy or mentor, what you were doing before was not working for you. Thus, it is paramount to your success as a trader that you adopt the same trading philosophies that your new mentor or trading strategy teaches, wash your mind of what you have learned thus far and completely immerse yourself in this new approach to the markets. In regards to what we teach here at learn to trade the market, this means learning to master one price action setup at a time, as this is how I initially found success in the forex market and so it is also what I recommend all my students do. As I have stated previously, after you master one price action setup you can move on to master another, until eventually your forex trading arsenal is fully loaded.

• Specialization is the Universal Key to Making Money

What do most people that make a lot of money in this world have in common? What do Tiger Woods and Bill Gates have common? Or how about George Soros and Venus Williams? At first you might say “nothing” besides the fact that they all make a lot of money. But what is the fundamental reason, behind all else, that these people and others like them make so much money while the rest of the world struggles to get themselves out of bed in the morning? One word; specialization.

People that make a lot of money focus in on one thing that they are passionate about, and they do it over and over and over until they achieve the result they are looking for. Simply put, you cannot really make a lot of money at anything in life if you master nothing. All of the people in the above example have literally “mastered” one thing, sure they had ups and downs along the way, but they did not let that bother them, instead they transmuted this negative energy into motivation and pressed on because they believed in what they were doing. Had they got involved and distracted with numerous other side-projects or interests they simply would not have achieved what they did. In forex trading we need to focus on one price action setup at a time and become a “specialist” in it, get to the point where you find yourself being someone that other traders look to for advice on the setup that you “own”. Become an authority on each price action setup before you move on to the next, there is no sense in doing anything half-ass in this world, and trading price action setups is no different.

• How to Master the Setup

Mastering one price action setup at a time is accomplished through literally making it the only setup you think about or look for when interacting with the market. You essentially live, breath, and sleep this one setup until you feel confident you know every angle and condition it can or should be traded in. Keep a trading journal to record under which market conditions the setup excelled in and which conditions it performed weaker in. Find all the information out on the setup you choose and learn everything you can about it. Once you do this you can begin implementing this knowledge on a demo account, only after you master this one setup on a demo account should you attempt to master it on a live trading account. If you find you are becoming consistently profitable with this one setup on a live trading account and you truly feel like you “own” it, then and only then should you think about adding a new setup to your trading toolbox.

• One Setup does not mean One Variable

In closing, a very important distinction to make here is that one price action setup does not only mean entering a trade when you see a well defined pin bar or other price action setup. By learning to master one “setup”, we mean you learn to master trading that particular setup in a particular market context. For example, you might learn to master the pin bar setup in a trending market and only enter or exit at confluent levels within the trend, this is an example of how a “setup” can mean the actual price action setup itself and the market conditions that it is traded in. So, in order to fully master one price action setup you must learn to master this setup in one particular market condition, perhaps you want to master the fakey setup in range-bound markets, or the inside bar in down-trending markets; the totality of the actual price pattern itself combined with the particular market condition you trade it in is what you must master in order to consider yourself a “master” of one forex trading strategy.

If you would like to find out more about my price action strategies as well as my “mastering one setup at a time” approach to the markets, checkout some of the other cool areas of my site as well as my forex trading course.