Buffy_04364: Money management is also called asset allocation, position sizing
or size management, trade or position management or risk control
Buffy_04364: Money management is managing the position size while risk management is about managing losses and open profits
Buffy_04364: you react to risk at two level: you evaluate risk cognitively or you react to it emotionally
Buffy_04364: 4 strategies to trade successfully
snicksb1: true Buffy
Buffy_04364: 1 - How and when to get in
Buffy_04364: 2 - When to get out with a loss
Buffy_04364: 3 - When to get out with a profit
Buffy_04364: 4 - How much will you risk on any trade
Buffy_04364: you need to determine the correct time frame for your trading style and comfort zone
Buffy_04364: What are you going to do if a trade goes against you?
CJACK4: if you don't have a trading style - how do you determine the time frame
Buffy_04364: How about when more than one trade in a row has gone against you
Buffy_04364: You need a method of determining entry level and also exit levels
CJACK4: right
Buffy_04364: Some traders opt to use targets and other opt to react unemotionally to price action
Buffy_04364: The exit decision contains far more complexity then the entry decision and has much bigger impact on your final result
CJACK4: I always exit too soon
google_2: yes
google_2: "you're as good as your exits"
google_2: I'd like to expand on that
google_2: not sure when though
google_2: end of session?
Neil040: what do you think about partialing out strategies?
elroch: Seems to me they lead to greater consistency but maybe lower returns
google_2: Neil, you mean "scaling out"?
Neil040: yes
google_2: ok
elroch: Like sell half your position at a 5 point gain
google_2: Neil's question dovetails with your comments and also hits on "position sizing"
google_2: I discussed last week the fact that one needs more than 1 objective so scaling out is important ideally
Buffy_04364: many traders use that Neil others are like Jimmer and I and T Lo both can be successful
google_2: one would like to divide their position in 3 parts
google_2: 1/3 is to cover costs/commissions and any other overhead
google_2: then the other 2/3 is for 2 possible objectives
google_2: what's the benefit of that approach??
google_2: it keeps one in a potentially good trade
google_2: also teaches patience and sitting on hands
Neil040: helps the old mind set a touch
google_2: and goes hand in hand with the cliche of "letting your winners run"
Buffy_04364: other trades enter partially initially when risk is the highest and add on continuation signals like Steve
google_2: yes Buffy, agree w/that approach too
elroch: Sounds interesting
google_2: now position sizing comes into play
Neil040: I do not like the scaling in approach.. leads to averaging into losing positions
Buffy_04364: no Neil because adds should not be made unless first position is a profit
google_2: let's use "gambling in Vegas" as an example
elroch: Depends where you think the probabilities are best?
google_2: good players bet big on good hands and small on not so good ones
google_2: same w/trading
google_2: I tend to divide the day into 3 parts : morning, lunch, afternoon
google_2: morning I like to trade 2-3 contracts with a scaling out strategy
google_2: normally I'd trade 2 because picture isn't clear yet
google_2: lunch if there's a setup, I'd enter with max. of 2
google_2: and don't scale out
google_2: just same exit
google_2: since volatility is low and risk is higher
google_2: in afternoon, intraday history is on one's side
google_2: so aggressive sizing and positioning is better
google_2: now that all depends on setup of course
google_2: so to recap
google_2: position sizing depending on time of day
google_2: scaling out in 1/3 as an exit strategy
google_2: with 2 possible targets
tradethewave: google: position sizing! what about the methods should be mechanic or have systematic way?
google_2: ok....
google_2: trade,
google_2: it all depends on how far are the targets
google_2: when trading NQ
google_2: I like to get 5 points on 1st contract
google_2: then let the other 2 run if possible
elroch: Doesn't that depend a lot on the volatility on the day?
google_2: can't mechanize exits on the other 2
Buffy_04364: this would not work with jimmers 2x guys as it is not that kind of system. just a FYI
google_2: elroch, true
google_2: agree w/buffy
google_2: I have a different style than jimmer's
google_2: I like to predetermine exits
elroch: Am I alone in only exiting on a technical signal (except for initial stop)?
google_2: and also levels for entry
google_2: should I say "likely" exits
redtoptrader: no, el I'm with you....
jalemany1: fib extensions google?
google_2: jale, certainly
Buffy_04364: jimmer and I use price action to exit along with the road map the indicators are drawing
google_2: along w/other ways to determine S/R
google_2: it's all about "confluence"
google_2: these levels can be accurate for most of the time
elroch: Do you ever exit on an indicator without clear price action?
Buffy_04364: http://www.dacharts.com/archives/Retro-Trader/buffy-Suggestion%20for%20add%20contracts11.gif
Buffy_04364: this was done a while ago for add suggestions for what it is worth
x21r: that's a old one buffy
google_2: nice chart
Buffy_04364: still applies
google_2: yes
google_2: here's a situation where one wants to add
google_2: on "trend" days
Buffy_04364: any comments to the how to handle losers - one or more
google_2: market heading in 1 direction
google_2: and one is adding on continuation patterns
google_2: like 2 and 3 humps/hills/indians etc.
redtoptrader: 1st, know the average number of losers your system generates.
jalemany1: google, if you have a target at, say 1.27 fib ext. and it gets to within a point, when do you decide that is as far as it's going?
Buffy_04364: true redtop
google_2: I look for confluence
redtoptrader: can be yardstick for whether you are in sync with the market....
google_2: meaning
Buffy_04364: how much do you let a trade go against you?
google_2: more than just 1 fib target
Buffy_04364: jimmer and I are about 2pts max
redtoptrader: but I am looking for 5+ points on winners....
google_2: I live and die by the 3-4 pt. stop on nq
elroch: Yes that's all that was missing
elroch: redtoptrader: ES....2.5 points...
google_2: and whether it coincides with a major level
Buffy_04364: like if I have two small losers I feel my focus is off and will either take a break and think about my setups or allow myself one more if those losers followed my rules
google_2: yea buffy
google_2: there's no easy answer here because depends on own style
google_2: for example if I'm down big in morning
google_2: I tend to be more focused on cutting loss rather than making it for the day
google_2: although I tend to focus on setups regardless
Buffy_04364: If I take a trade that doesn't follow my rules then that is an automatic break :-)
google_2: nice rule
google_2: that goes hand in hand with the point award system
oogle_2: it's not how many pts. one got on nq or es
elroch: Good idea - would have saved me money more than once
google_2: but 1 pt. for following rules and deduct 1 if rule broken
google_2: be surprised of how well that works
Buffy_04364: and deduct if there was a setup you didn't take following your rules right?
google_2: takes focus away from money, W/L etc.
google_2: absolutely buffy, good one :-)
redtoptrader: how many points if you change the rules during the game??? {:-)
elroch: I've awarded myself -5 for that today
google_2: this method works so well
google_2: when one's focus is to ensure making more points on rules
google_2: the whole psychology and focus shifts
Buffy_04364: which is in keeping with Douglas's comment that if you start thinking about the money or what is going on with the trade exit cause the trade doesn't have your full unemotional focus
Buffy_04364: and you will start seeing what you want to see instead of what the market might be saying
Buffy_04364: nice google I like that
redtoptrader: I never add up my score until the end of day, to help me only look at the next trade...
pilgrim_7: That full unemotional focus comment is great Buffy
google_2: redtop, very nice
Buffy_04364: I know one trader who actually taped over the P/L for the day so he couldn't see it
google_2: but I keep score of the X and O on following rules/setups
Buffy_04364: just solely focused on following the rules for his system
Polytimi: what is x & o?
Buffy_04364: pluses and minuses
google_2: and the 1.25 rule I talked about last week buffy
google_2: yes, only those 2
redtoptrader: If I know how much over I am, I begin to make decisions to protect it.....
google_2: during the day
redtoptrader: If I know how much under, I start to try and make it up....
Buffy_04364: yes and that is called revenge trading and really emotional usually
google_2: what else buffy do we have
redtoptrader: very bad....at least for me.
Buffy_04364: the seven rules for profitable traders
Buffy_04364: 1 - Trading only with risk capital
Buffy_04364: 2 - Accept full responsibility for your own trades
Buffy_04364: 3 - Focus on 1 or 2 techniques that work
Buffy_04364: 4 - Properly manage your trades
Buffy_04364: 5 - Stay emotionally neutral
Buffy_04364: 6 - Trade without certainty
Buffy_04364: 7 - Keeping a trade journal which can be a marked up chart, tape recording or actual journal
google_2: nice
redtoptrader: 8 when in doubt, ask Buffy!
google_2: re #6
Buffy_04364: LOL
redtoptrader: LOL
Buffy_04364: no when in doubt get out
oogle_2: trading w/o certainty in terms of respecting the market
Orprepus: very good I would add to number 7 that is to have a written trading plan
google_2: but trading w/"confidence" is prudent
Buffy_04364: I believe it refers to waiting too long for confirmation google
Buffy_04364: and by then the trade is over depending on your style of trading
Buffy_04364: they wait for indicators to confirm when really it is price action confirmed by indicators
Orprepus: yup
Buffy_04364: again depending on the traders style
google_2: girl, that's a great line
Orprepus: good to just have one chart that is just price bars
google_2: price action first, then everything else follows and is secondary
Buffy_04364: yep totally agree
Orprepus: no candles
google_2: yes
Orprepus: PA PA PA PA PA PA
google_2: lol
CJACK4: if you had only one indicator, which would it be??
Buffy_04364: well orp I do have a couple MAs on my 3M
Buffy_04364: is that allowed?
Buffy_04364: :-)
google_2: cjack, other indices are the best indicators
Orprepus: for PA PA PA PA no
Orprepus: right combination of different markets
Buffy_04364: :-(
Buffy_04364: floor is open that is all I have
Orprepus: it is ok buffy - but I bet you really don't look at them that much
Buffy_04364: true orp
google_2: a tip on how to handle bias
elroch: If two indices disagree in trend, all I'd conclude was to doubt either trend
Orprepus: lets call indicators the crutch to how we see PA
Buffy_04364: I call indicators a roadmap saying where price MIGHT go
elroch: Indicators are a noise filter for the price graph
google_2: have a "mirror" chart
Polytimi: what is pa?
google_2: pa= price action
CJACK4: so you are saying that if you were trading the ES you would have a chart of maybe the NQ running too??
Buffy_04364: and they can warn of POSSIBLE fork in the road
google_2: help in neutralizing bias
google_2: now "mirror" charts
google_2: or inverted patterns
elroch: price action beat me today
google_2: one sees that chart in both directions at the same time
Orprepus: watch 5 items Dow, trans, compq, sox and trade the ES
google_2: helps a lot in suppressing any second guessing
google_2: good list orp
Orprepus: best trade is when they are all in synch
tradethewave: buffy , what you looking on price action : have you several pattern ?
Buffy_04364: there are various things that price should and shouldn't do
Buffy_04364: like if a range and it breaks out of the range any retracement shouldn't exceed 50% of the range
Buffy_04364: and if it breaks out of a triangle it can test the TL it broke out of but it shouldn't go back inside the triangle
google_2: my list consists of
google_2: Dow, es, nq, sox, btk
elroch: What's a mirror chart google?
google_2: elroch, chart upside down
Buffy: Ensign can do this by overlaying the same symbol on a chart and check inverted.
google: go to studies/overlay chart, type same symbol, then check "invert pattern" field
Orprepus: nice
google_2: btk = biotech
Orprepus: btk = biotech index
Orprepus: my fingers are a little slower
google_2: I believe btk will be leading in the next major cycle
google_2: so v. important to see what it's doing
alemany1: google,what time frame do you keep those on?
google_2: I'll post more examples re: "market plurality" later on
google_2: to show hi-probability setups
google_2: that was off-topic though lol
google_2: all in same TF = 3min.
jalemany1: thx
google_2: then nq I have 3m, 13m, 68, , D, W
Orprepus: from larger tf yup
google_2: es also 68m
prakso: Orprepus - why no candles ??
Orprepus: candles can be used as an indicator - just want pure PA HH HL LH LL
google_2: very nice Orp
prakso: but candles also give you the picture of price action -
Buffy_04364: yes and that is why he is saying no to them, you just want to determine trend by the highs and lows
google_2: interested in knowing how frequent some might monitor their trading plan
Orprepus: VOLD VOLDQ for momentum
Buffy_04364: it is an ever changing thing IMO
Buffy_04364: yours google
Buffy_04364: one aspect of it or another
google_2: I look at it at end of week and holidays
google_2: then monthly
Orprepus: written trading plan for everyday helps keep the focus
wesley35: so orp how do you see trend? trend of the move or major trend of the day ex. today down trend from 1 or so but we had a couple of moves up in that trend. overall trend was down but do you try to trade the little wiggles or up moves? hope makes sense google feel free to answer
Buffy_04364: that is for next days action right orp?
Polytimi: what is VOLD VOLDQ?
Orprepus: yup
Orprepus: written plan for tomorrow will be done tonight
google_2: 2 plans
google_2: 1 at night
google_2: then look over and see where were at before open
Orprepus: yup
wesley35: does your plan change each day
Orprepus: yup
google_2: we're talking 2 different things here
wesley35: what's in a plan might be confused there?
google_2: trading plan is for overall rules/goals
Buffy_04364: the one written for the next day does wesley
google_2: then daily action plan
google_2: trading plan is usually done on a monthly basis or longer
google_2: biz plan is annual
wesley35: do you have examples sounds interesting?
oogle_2: then action plan is daily
Orprepus: right written trading rules is different than daily trading plan
google_2: for the following day I call it action plan so to avoid confusion
wesley35: of each type of plan. I like that idea
Orprepus: k
google_2: I get confused easily lol
google_2: biz plan is for overall objective and business setup
jalemany1: would not a trading plan for the day give you a bias for that day? which may make it harder to follow price action.
google_2: how much capital, overhead, training plan, costs of that, etc.
wesley35: ok makes sense
google_2: then trading plan is to articulate that biz plan into the "how to"
google_2: like what style, rules, monthly objectives, performance measurements
google_2: all in my book (shameless plug)
google_2: the daily action plan is to determine what are the key S/R levels
Orprepus: price action from larger will overlap next days PA
pilgrim_7: LOL google
google_2: what's the likely price action
google_2: and yes, flexibility is required
google_2: daily action imo
Orprepus: call it the potential flow
Buffy_04364: before I forget next weeks discussion is going to be one on chapter 16 in Mark Douglas's Discipline Trader on The Steps to Success
oogle_2: is to bring one's focus into what are the important levels surrounding the current price levels
google_2: buffy, I plan on conducting a session on "exit strategies"
Buffy_04364: next week, ok np
wesley35: where do you locate that info? makes sense
wesley35: on support levels and such
Buffy_04364: didn't know
google_2: no, I'm just saying
google_2: should I schedule it the week after?
Buffy_04364: ok whenever
Buffy_04364: anything we have planned can be backed up for when you can do it
Buffy_04364: next week week after doesn't matter, which ever you want
google_2: the week after thanks
Buffy_04364: the 10th right?
Buffy_04364: ok reserved :-)
google_2: wesley many charts are posted here by other traders
Orprepus: so looking at PA of daily, 60m 30m - whatever tf you choose or all and see where price has come from and where it might next flow
google_2: that show different methods
google_2: don't want to plug my book any more today lol
Orprepus: google did you pick a title yet?
google_2: Orp, not yet
google_2: some legal and other issues need to be ironed out
google_2: I do know for instance the OH (overhead) on each trade
google_2: and that's over the commission rate
google_2: includes stationary, data feed fees, education/books/training, etc.
google_2: and that should be included in the biz plan
elroch: Mostly independent of number of trades, though
google_2: I do average out and my number of trades is usually within a range
jalemany1: do you try to get in a certain # of trades per day?
google_2: jale, no
google_2: I'm not hi velocity trader so I know I won't exceed let's say 8/day
google_2: 8 is extreme and that's usually when I know I'm in trouble for the day lol
Buffy_04364: since jimmer does around 30 a day you can see that is another difference in the two different styles also
google_2: depends on setup really
google_2: if you asked me today for example - it was a type 1 trend day - so that's 2 trades
google_2: so to recap what I mentioned re plans
google_2: 3 types
google_2: biz long term; trading medium term; action short term
google_2: ok.....
Buffy_04364: take what the market is willing to give that day for your style
Buffy_04364: using googles points at the end of the day you can tell if you did that
google_2: also broker commissions shouldn't exceed 30% of one's profits for the day
google_2: that's an important measure as well
Buffy_04364: nice guideline
elroch: Don't want the broker to get richer than you ;-)
google_2: just tells me how well did I do in terms of overtrading
google_2: it's just a game of having all these performance measurements around me to distract from thinking "money"
google_2: and once the focus is on them, then "money" issue takes a backseat
google_2: by following certain formulas/levels for each measurement
google_2: like the 1.25 I mentioned last week as an example
google_2: I suggest some of you give this a try, it worked well for me
prakso: 1.25 ??
google_2: prakso, refer to last week's transcript
google_2: buffy, anything else?
Buffy_04364: I guess we are over the hour which doesn't matter to me really but do want to say to everyone thank you for coming and hope you have gotten something out of the discussion. See you next week.
google_2: thanks buffy and everyone
Vic_927: thanks Buffy and google
Polytimi: thank you buffy and google
p_doce: tks
CJACK4: thanks everybody
jalemany1: thanks, buffy and google
pilgrim_7: great class Buffy and google
prakso: thanks Buffy - google and everyone
Orprepus: thank you for sharing google
google_2: you too Orp, v. nice insights
Buffy_04364: thanks to all who contributed and helped make it great
google_2: we seem to agree on many things :-)
Neil040: excellent both
Buffy_04364: just different styles google :-)
Buffy_04364: that is all
google_2: yes that's what makes a market I guess :-)
Buffy_04364: sure is
Orprepus: we are close but different - the key is focusing on PA
google_2: isn't PA a state?
Orprepus: which can make us all winners if we can keep out of our own way
google_2: joking here :-)
Buffy_04364: LOL
Orprepus: LOL PA
google_2: before I go
google_2: for those interested in patterns - look at today's second leg down
google_2: this is exactly like 6/25
google_2: v. important to recognize these things
google_2: ok
elroch: Excellent presentation Buffy and Google - hope it all has an effect some time
wesley35: amazing how you can recognize that google.
CJACK4: never heard of a "mirror chart"
Orprepus: Is it a random walk?
google_2: "inverted pattern"
google_2: that's to answer cjack
CJACK4: how do you invert a chart
google_2: go to studies/overlay chart - type same symbol
google_2: then check "invert pattern" field
CJACK4: ok
elroch: Why does that help, google?
google_2: it's a bias neutralizer technique
Buffy_04364: once again elroch it depends on your style
google_2: some see the short side only and some the opposite
Buffy_04364: if you start watching googles for lets say jimmer and jimmer for googles you will go nuts
google_2: but when one looks at the chart in both directions it takes away the bias
elroch: I'm naturally unbiased, I think, except I like trend changes
elroch: Might be my problem
Orprepus: trading style/method needs to meet personality
google_2: then you don't need this technique elroch
Orprepus: least need to know dominate method
Orprepus: 4 types of traders
CJACK4: I have thought that there should be some kind of written test you take that will determine the kind of trader you are, the kind of system you should use, etc.
Neil040: there must be something wrong with me because I like shorting for some reason
Orprepus: deals with how you make decisions
Buffy_04364: I guess to start you could ask yourself maybe doing playback what TF are you the least unemotional trading for starters
Orprepus: cjack you are heading down the right path - need to know you self to be able to trade
Orprepus: myers-briggs is a good one
Buffy_04364: I figured out I like short term using that way when suggested by a fellow trader
CJACK4: so why not a test that reveals your hidden trading traits and tells you which way to go???
google_2: cjack, there is
CJACK4: because emotion gets in the way you can tell yourself something like that
jalemany1: google, what is it?
Orprepus: deals with how you make decisions - what do you need to feel comfortable making a decision
google_2: I like his work
google_2: Van Tharpe for one is a provider of such things
google_2: expensive but recommended
CJACK4: you convince yourself that you are what you want to be
CJACK4: not what you really are
jalemany1: does he have a test he sells?
Buffy_04364: ask yourself are you comfortable with the number of trades, the profit, and the risk on the stops etc
Orprepus: and how fast can you take in that data to make a decision and feel relaxed
CJACK4: he sells them for big bucks to the states
google_2: yes jale
jalemany1: his books are expensive too
google_2: look at his courses lol
google_2: but I tell you very good investment imo
google_2: should be part of the biz plan btw
google_2: speaking of plans :-)
jalemany1: agree, should start out that way, not by trial and error as most do
google_2: jale why do we go to school to become doctors, lawyers?
google_2: and trade live before getting educated??
google_2: I'm one of them btw lol
google_2: well, I changed my ways and chose a different direction
elroch: Has anyone else had the recurrent problem of having mechanical systems that seem to be sound, but managing to avoid the best trades when executing them?
google_2: elroch how long have long have you papertraded it?
elroch: After a couple of days of paper profits, I can't resist trading. Today should have been a profitable day with correct execution, but I changed horses in midstream
google_2: ok now "papertrading" is all about mind conditioning
google_2: mind needs time to be conditioned
google_2: so we're talking weeks instead of days here
alcoholicavenger: I have been at this for almost 4 years and have seen SO many methods and have done exactly what u speak of. teetering around from one to the other. I even moved all the way to Chicago to find the method. I worked with three floor traders. the secret and have found the secret is WITHIN
elroch: I thought this evening was tricky, but usually my methods do well at the end of the session
google_2: why not pick 1 and stick to it?
Orprepus: when your in school and take a final you have had a whole semester to absorb the information to take the test
alcoholicavenger: well that's why I haven't succeeded. SO don't do what I have done and waste years of your lives. You will NEVER make any progress. Well now I work at the cme and have found a backer to put up money so I can trade.
alcoholicavenger: I am working on jimmers system because I find I like to trade and his will provide that. I don't have high execution costs but I have also found I don't think I want to scalp like the floor traders do
elroch: I think Jimmer's system is rather complicated for me - having to balance the info from several different indicators and time frames is a bit confusing for me
Orprepus: 'and they make money without one chart
alcoholicavenger: it really is all about finding your personality in trading and STICKING to it
Buffy_04364: doing jimmers with the trend simplifies it when starting
alcoholicavenger: my problem is .. the trend - but I will get that also
alcoholicavenger: anyway.. my whole point is.. find your personality and stick to it
alcoholicavenger: or your gonna waste alot of time and have so many head and heartaches its no fun
alcoholicavenger: luckily I'm still young but this hasn't been easy by any means
jalemany1: that is why I was asking about Van Tharp, it sure costs a lot to learn by trial and error. ( mostly error )
alcoholicavenger: we all owe a big thanks to people like.. jimmer .. buffy, and woodie
jalemany1: agree
alcoholicavenger: because.. just because there are people out there that charge u money..
p_doce: and google
alcoholicavenger: all of them!
alcoholicavenger: u can spend money on a person .. and MOST those people charging.. I would think.. DON'T make money
alcoholicavenger: but even if u find a legit person it doesn't mean u will
alcoholicavenger: so thanks to all of u that are so giving.. I haven't seen this in many years.. so its cool all the traders are helping one another instead of being so secretive.. because I'm telling u.. the secret is within
google_2: if you ask me trading is about "psychological" development and not technical one
elroch: I have a great deal of admiration for those who have managed to overcome all of the obstacles and successfully trade consistently
alcoholicavenger: I totally agree Google.. I think a person will learn so much about themselves more then in any aspect in life
google_2: people keep searching for the latest technical thing out there
google_2: and don't search for what would make them stronger mentally/emotionally
Buffy_04364: the holy grail is yourself
alcoholicavenger: there u go
elroch: It almost seems to me that I have a self destruct instinct sometimes when I trade
alcoholicavenger: there is a holy grail out there. IS YOU!
jalemany1: as Larry Pesavento says....defy human nature...do the work yourself. I think that is the secret
elroch: All I want is a small edge and the presence of mind to trade it consistently
Buffy_04364: as jimmer put it most lack the discipline to be in the top 10%
Orprepus: agree google - trading is 90% you and 10% method
google_2: let me give you an edge right now ready?
Buffy_04364: sure
google_2: what if I told you one can make money just trading 2humps and 3 humps and I'm v. serious
google_2: would you ridicule that suggestion or take me up on it?
google_2: on one condition - no humps = no trades
alcoholicavenger: I agree with u 1000% I know a trader that trades.. a MA system and retired He had the discipline to trade it.. when it said.. GO and when it didn't, he would sit there all day and wouldn't do anything. That's all there is to it. DISCIPLINE
google_2: dbl humps and 3 humps are the easiest and >90% reliable
google_2: problem is we see so many waves in the ocean and want to surf each one of them as my mentor put it
zxcvbn2002: google: what are humps?
elroch: I believe you google, as I believe you can trade one indicator with a mechanical SAR strategy.
google_2: hills/indians
google_2: buffy or others, what's another name for humps? lol
google_2: like 2 triangles then a break of trendline touching their pivots
jalemany1: 3 drives to a top
elroch: I found a great system somewhere that was simply to trade when a certain 3 EMAs were heading in the same direction. That's all.
Buffy_04364: why didn't you stay with it elroch is great system
Orprepus: but still need the mind set to trade it
Buffy_04364: so true orp and that will not be found by switching systems
google_2: no grasshopping
hark33: How do we define humps?
google_2: do you have Linda Raschke's book "street smarts"?
google_2: 3 little indians pattern there
google_2: I can post some charts showing 3 humps and 2 humps if that helps
Buffy_04364: look under patterns in archives
Orprepus: right isn't in dacharts already
google_2: yes
jalemany1: I think the problem for most people who have traded for a while is that the losses they took learning to trade are a huge mental handicap. If you could erase that from your subconscious, with what you have learned, trading would not be so hard.
Orprepus: http://www.dacharts.com/archives/Pattern_Recognition/3_Little_Indians_Hills/
Orprepus: that's the link
Buffy_04364: if you can't follow your mental stop need to use hard stops
wesley35: google seems to me this is like selling the tops and buying the bottoms on those tl breaks but your looking for the humps?
pop_t_1: 2 point stop every time
google_2: wesley can't take them n the direction of trend or yes in consolidation days they work well