My Journey In Technical Analysis

[XRAY27]

Belief system

Growth is painful. Change is painful. But nothing is as painful as staying stuck somewhere you don't belong. - Mandy Hale.

Stop the pains and start creating new beliefs

i have been stuck in quantity growth in intraday !!! now added new belief system,and i can move at par with swing/positional system !!! :yahoo:

New beliefs (notes to self)

You need to tell yourself that you will succeed in trading. If not, you will NEVER succeed in trading and anything in life.

To gain success, you need to put in the time and efforts. You need to make sacrifices. It means you need to spend hours in reading, back-testing your strategies and trade journaling to improve the way you trade.

Sad to say, success is not guaranteed even when you commit the time and efforts. However, if you don't even put in the time and efforts it is a guarantee for failure.

Don't aim to make a millions first however it can be your ultimate goal. Your FIRST and ONLY goal in trading is CONSISTENCY and not just profits.

CONSISTENCY it is having a trading plan which follows a daily, weekly and monthly routine which are based on rules and conditions for entry, exit and risk management.

 

[XRAY27]

Balance with all sides !!!

Only points i should carry is to Maintain a positive trading attitude that will improve your money management and risk management skills. A negative trading mentality will alter your thinking and mindset. Your attitude will determine whether or not you are profitable with your trading. Your attitude is more important than your market knowledge and even your level of experience. It is important how you react to the market and not what the market will do to you.

 

[XRAY27]

When to break the rules !!! i have to implement this rule 5

 

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“Losing a position is aggravating, whereas losing your nerve is devastating.” – Ed Seykota

Three components of trading that have to be managed correctly for the trader to be successful.

Risk management, System management, and Mental management.

The majority of the 90% of traders that fail not because of their system or risk management but because of their own mind. This also includes professionals along with retail traders.

A trader can be mentally ruined by stress, ego, arrogance, stubbornness, fear, greed, and emotional instability. These factors cause the bad decisions that inflict so much emotional and mental pain that it leads to just giving up.

 

[XRAY27]

Vertical scaling in quantity:

Till NF/BNF lot size was small , scaling phase is excellent in intraday with 1 min TF,but once the lot size increased intra-day scaling is a minefield even with 3 min TF with quantity gaps ,thanks to swing/positional i can go with quantity of my choice !!!

with in given circumstance is vertical quantity rise is possible in intraday ???

well, if you can restrict yourself to trend time it is possible, what are they ?? first va gap,price moving past pdh, or cracking below pdl, and offcourse 2pdh and 2pdl also

important...most importantly atleast 80 % of the trend should be captured and move towards 15min is a must

This changed tactics must be implemented from April series after all in words of Henri Simoes

so i have to launch my self in all 3 sides of trading

 

[XRAY27]

Support and resistance in trading also leads to emotions factor

 

[XRAY27]

Hard Fact

A trading edge in the financial markets can be described as a set of conditions that when present, give a higher probability of a trade working than not working.

Despite having an edge, there will be losing trades as well as winning trades. Trading in the direction of a trend does not guarantee a winning trade, merely a higher probability of a trade working out.

The first trade that you take in the direction of the trend could be a losing one

However, taking a series of trades in the direction of the trend is likely to result in trades that win.

 

[XRAY27]

SECOND LEVEL THINKING

Does Big players,in other words smart money knows what we are going to do !!! ??

I.e., where and when they(Retailers) are buying/selling and where they put their stop orders?

That’s because the big players know what are being taught in the books!:lol::lol:

Does this means TA is useless ?? no ,it helps us to understand what the amateur traders are thinking or doing

To become a profitable trader, you need to have a deeper understanding. You need to play the game behind the game. What do I mean by that? Simply said, you need to anticipate what other people are anticipating. You need to do second-level thinking.

 

[XRAY27]

 

[XRAY27]

Offensive and Defensive Trading

• Your entry signals are your offense

• Your trailing stops for winning trades are your defense for not losing your open profits.

• Letting a winner run is your offense, cutting your loser short is your defense.

• Your automatic buy stop is your offense and your automatic stop loss is your defense.

• Buying a monster stock is an offensive move, planning on how you will exit with your profits is your defensive move.

• Identifying a trend is your offensive play while creating a trading plan on how to trade it is your defensive play.

• Your choice on what to trade is playing offense, choosing your position size is playing defense.

• Your watch list is playing offense choosing how much capital to risk on any one trade is playing defense.

• In trading your wins are not permanent and your profits can be taken back, when you score you have to next ensure that you are not scored on.
The goal of keeping your hard earned profits has to be far above the desire for making quick money with big risks.


Source :Steve Burns