List of Trading System / Methods
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Ferdaus
Its a different way of looking at things, but why don't we put it this way....You are in a big country though living in a small town....so you can open a trading account with any broker in India and trade online and you can fund your account through online banking....what do you say to that :cheers:
Sanjay.
Its a different way of looking at things, but why don't we put it this way....You are in a big country though living in a small town....so you can open a trading account with any broker in India and trade online and you can fund your account through online banking....what do you say to that :cheers:
Sanjay.
Bickey, I hope this is not an intrusion in the current conversation, but here is a live example. This is a chart of the USD/CAD, of which I just entered a short on. The UP trendline was drawn from the beginning of the uptrend to the first swing low. That is the trend until the line is broken. Notice how the line was broken, and then price gravitated back to the TL. This is very common.
The DOWN trend line was drawn from the beginning of the down trend to the first swing high. The new uptrend will not begin until that line is broken.
We also know a fresh down trend has begun because the original UP line was broken. The point where both lines cross is what is known as an apex. That is a very powerful entry point and creates strong moves. That apex will not be broken because the original up trend TL was broken, then we had the normal pull back to it, and the apex was created by the down trend line. I
I have had a set methodology for quite awhile, but it has been recently through my studies that I have learned what a powerful element the understanding of TL's are. There is more to tell, but if you understand the fundamentals of what I just told you, that will add an extremely powerful element to your trading arsenal. What is adds up to is entries with very low risk.
I'll give another example in the rear view mirror. I had a trade on the GBP/CAD using this same concept I described along with another element in my methodology, and it netted me a trade of +205 pips, and a total of a 32-point pullback.
The DOWN trend line was drawn from the beginning of the down trend to the first swing high. The new uptrend will not begin until that line is broken.
We also know a fresh down trend has begun because the original UP line was broken. The point where both lines cross is what is known as an apex. That is a very powerful entry point and creates strong moves. That apex will not be broken because the original up trend TL was broken, then we had the normal pull back to it, and the apex was created by the down trend line. I
I have had a set methodology for quite awhile, but it has been recently through my studies that I have learned what a powerful element the understanding of TL's are. There is more to tell, but if you understand the fundamentals of what I just told you, that will add an extremely powerful element to your trading arsenal. What is adds up to is entries with very low risk.
I'll give another example in the rear view mirror. I had a trade on the GBP/CAD using this same concept I described along with another element in my methodology, and it netted me a trade of +205 pips, and a total of a 32-point pullback.
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Bickey, here is another point I did not mention.
This type of trade goes against the conventional wisdom of trading the breakout. The breakout trade is highly risky and does not yield the consistent pips that it portends.
Let me use the chart I just posted as a classic example. Let's say you use the TL as a breakout (There are various forms of breakouts. Another of which is a channel breakout, etc.). The TL break was 1.0134. It's lowest dip was a.0115. That is a total of 19 pips minus the spread. That would also be based on entering at the optimum time and exiting at the dip, which would have been next to impossible to ascertain the exact point of the dip. There is the added risk of price hitting the TL and bouncing back up.
This strategy involves trading the breakout after the pullback, which is inevitable. Price will break beyond the TL, then be patient for the pullback back to it. The TL goes against the trend, so it will probably pull back further than the original pullback. It's time to enter once that TL was hit on the pullback. There is minimum risk and huge profits.
As of this writing that trade on the USD/CAD was entered at the apex at 1.0150, and is up by 32 pips. The trade went against me by 1 pip, and my target is 1.0087, which is the confluence of my the yellow and red lines on the chart. You can see on the chart there are no other supports, so it should be an easy target.
Also remember the context of the entry. The trend will last for several candles after the correction back to the original TL. So, if it was the daily TL, then plan on staying in the trade for a few days. In this case, it was the 4-hour, so it stand to reason the trade will last for a few 4-hour increments. I made the TP for of 1.0087 based on other elements of my methodology.
One way you can use the TL's for stops is to draw the fresh down trend line. Make your stop a few pips on the other side counting 3 candles back. The other time to get out is when you get a candle closing on the other side of the TL. That is also the time when you wait for the strong move against the previous trend, then wait for the correction, then enter the new trade going the opposite direction.
This type of trade goes against the conventional wisdom of trading the breakout. The breakout trade is highly risky and does not yield the consistent pips that it portends.
Let me use the chart I just posted as a classic example. Let's say you use the TL as a breakout (There are various forms of breakouts. Another of which is a channel breakout, etc.). The TL break was 1.0134. It's lowest dip was a.0115. That is a total of 19 pips minus the spread. That would also be based on entering at the optimum time and exiting at the dip, which would have been next to impossible to ascertain the exact point of the dip. There is the added risk of price hitting the TL and bouncing back up.
This strategy involves trading the breakout after the pullback, which is inevitable. Price will break beyond the TL, then be patient for the pullback back to it. The TL goes against the trend, so it will probably pull back further than the original pullback. It's time to enter once that TL was hit on the pullback. There is minimum risk and huge profits.
As of this writing that trade on the USD/CAD was entered at the apex at 1.0150, and is up by 32 pips. The trade went against me by 1 pip, and my target is 1.0087, which is the confluence of my the yellow and red lines on the chart. You can see on the chart there are no other supports, so it should be an easy target.
Also remember the context of the entry. The trend will last for several candles after the correction back to the original TL. So, if it was the daily TL, then plan on staying in the trade for a few days. In this case, it was the 4-hour, so it stand to reason the trade will last for a few 4-hour increments. I made the TP for of 1.0087 based on other elements of my methodology.
One way you can use the TL's for stops is to draw the fresh down trend line. Make your stop a few pips on the other side counting 3 candles back. The other time to get out is when you get a candle closing on the other side of the TL. That is also the time when you wait for the strong move against the previous trend, then wait for the correction, then enter the new trade going the opposite direction.
This is the result. As you can tell on the chart my TP was hit as per the previous post that was live.
View attachment 15660
View attachment 15660
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50 Trading Codes and Guidelines
1.Plan your trades. Trade your plan.
2. Keep records of your trading results.
3. Keep a positive attitude, no matter how much you lose.
4. Dont take the market home.
5. Continually set higher trading goals.
6. Successful traders buy into bad news and sell into good news.
Check also the Checklists of When to Buy and Sell Stocks
7. Successful traders are not afraid to buy high and sell low.
8. Successful traders have a well-scheduled planned time for studying the markets.
9. Successful traders isolate themselves from the opinions of others.
10. Continually strive for patience, perseverance, determination, and rational action.
11. Limit your losses use stops!
12. Never cancel a stop loss order after you have placed it!
13. Place the stop at the time you make your trade.
14. Never get into the market because you are anxious because of waiting.
15. Avoid getting in or out of the market too often.
16. Losses make the trader studious not profits. Take advantage of every loss to improve your knowledge of market action.
17. The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.
18. Always discipline yourself by following a pre-determined set of rules.
19. Remember that a bear market will give back in one month what a bull market has taken three months to build.
20. Dont ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves against you 20% from your peak profit point.
21. You must have a program, you must know your program, and you must follow your program.
22. Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.
23. Split your profits right down the middle and never risk more than 50% of them again in the market.
24. The key to successful trading is knowing yourself and your stress point.
25. The difference between winners and losers isnt so much native ability as it is discipline exercised in avoiding mistakes.
26. In trading as in fencing there are the quick and the dead.
27. Speech may be silver but silence is golden. Traders with the golden touch do not talk about their success.
28. Dream big dreams and think tall. Very few people set goals too high. A man becomes what he thinks about all day long.
29. Accept failure as a step towards victory.
30. Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker! Dont let ego and greed inhibit clear thinking and hard work.
31. One cannot do anything about yesterday. When one door closes, another door opens. The greater opportunity always lies through the open door.
32. The deepest secret for the trader is to subordinate his will to the will of the market. The market is truth as it reflects all forces that bear upon it. As long as he recognizes this he is safe. When he ignores this, he is lost and doomed.
33. Its much easier to put on a trade than to take it off.
34. If a market doesnt do what you think it should do, get out.
35. Beware of large positions that can control your emotions. Dont be overly aggressive with the market. Treat it gently by allowing your equity to grow steadily rather than in bursts.
36. Never add to a losing position.
37. Beware of trying to pick tops or bottoms.
38. You must believe in yourself and your judgement if you expect to make a living at this game.
39. In a narrow market there is no sense in trying to anticipate what the next big movement is going to be up or down.
40. A loss never bothers me after I take it. I forget it overnight. But being wrong and not taking the loss that is what does the damage to the pocket book and to the soul.
41. Never volunteer advice and never brag of your winnings.
42. Of all speculative blunders, there are few greater than selling what shows a profit and keeping what shows a loss.
43. Standing aside is a position.
44. It is better to be more interested in the markets reaction to new information than in the piece of news itself.
45. If you dont know who you are, the markets are an expensive place to find out.
46. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word Nobody! Thus the successful trader does not base moves on what supposedly will happen but reacts instead to what does happen.
47. Except in unusual circumstances, get in the habit of taking your profit too soon. Dont torment yourself if a trade continues winning without you. Chances are it wont continue long. If it does, console yourself by thinking of all the times when liquidating early reserved gains that you would have otherwise lost.
48. When the ship starts to sink, dont pray jump!
49. Lose your opinion not your money.
50. Assimilate into your very bones a set of trading rules that works for you.
1.Plan your trades. Trade your plan.
2. Keep records of your trading results.
3. Keep a positive attitude, no matter how much you lose.
4. Dont take the market home.
5. Continually set higher trading goals.
6. Successful traders buy into bad news and sell into good news.
Check also the Checklists of When to Buy and Sell Stocks
7. Successful traders are not afraid to buy high and sell low.
8. Successful traders have a well-scheduled planned time for studying the markets.
9. Successful traders isolate themselves from the opinions of others.
10. Continually strive for patience, perseverance, determination, and rational action.
11. Limit your losses use stops!
12. Never cancel a stop loss order after you have placed it!
13. Place the stop at the time you make your trade.
14. Never get into the market because you are anxious because of waiting.
15. Avoid getting in or out of the market too often.
16. Losses make the trader studious not profits. Take advantage of every loss to improve your knowledge of market action.
17. The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.
18. Always discipline yourself by following a pre-determined set of rules.
19. Remember that a bear market will give back in one month what a bull market has taken three months to build.
20. Dont ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves against you 20% from your peak profit point.
21. You must have a program, you must know your program, and you must follow your program.
22. Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.
23. Split your profits right down the middle and never risk more than 50% of them again in the market.
24. The key to successful trading is knowing yourself and your stress point.
25. The difference between winners and losers isnt so much native ability as it is discipline exercised in avoiding mistakes.
26. In trading as in fencing there are the quick and the dead.
27. Speech may be silver but silence is golden. Traders with the golden touch do not talk about their success.
28. Dream big dreams and think tall. Very few people set goals too high. A man becomes what he thinks about all day long.
29. Accept failure as a step towards victory.
30. Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker! Dont let ego and greed inhibit clear thinking and hard work.
31. One cannot do anything about yesterday. When one door closes, another door opens. The greater opportunity always lies through the open door.
32. The deepest secret for the trader is to subordinate his will to the will of the market. The market is truth as it reflects all forces that bear upon it. As long as he recognizes this he is safe. When he ignores this, he is lost and doomed.
33. Its much easier to put on a trade than to take it off.
34. If a market doesnt do what you think it should do, get out.
35. Beware of large positions that can control your emotions. Dont be overly aggressive with the market. Treat it gently by allowing your equity to grow steadily rather than in bursts.
36. Never add to a losing position.
37. Beware of trying to pick tops or bottoms.
38. You must believe in yourself and your judgement if you expect to make a living at this game.
39. In a narrow market there is no sense in trying to anticipate what the next big movement is going to be up or down.
40. A loss never bothers me after I take it. I forget it overnight. But being wrong and not taking the loss that is what does the damage to the pocket book and to the soul.
41. Never volunteer advice and never brag of your winnings.
42. Of all speculative blunders, there are few greater than selling what shows a profit and keeping what shows a loss.
43. Standing aside is a position.
44. It is better to be more interested in the markets reaction to new information than in the piece of news itself.
45. If you dont know who you are, the markets are an expensive place to find out.
46. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word Nobody! Thus the successful trader does not base moves on what supposedly will happen but reacts instead to what does happen.
47. Except in unusual circumstances, get in the habit of taking your profit too soon. Dont torment yourself if a trade continues winning without you. Chances are it wont continue long. If it does, console yourself by thinking of all the times when liquidating early reserved gains that you would have otherwise lost.
48. When the ship starts to sink, dont pray jump!
49. Lose your opinion not your money.
50. Assimilate into your very bones a set of trading rules that works for you.
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