Technical Analysis - Graduation Day :)

[AW10]

thanks Jagan for creating a beautiful summary post of what everybody has mentioned in this thread..

Just to add something to what u wrote by my statement

Dear Friends,

From AW10's words - Good money can be made from trading but it takes time to become a seasoned professional trader.So focus should be on risk and MM.A good trading plan is imperative and should be updated on a daily basis which should be the guiding mentor of any budding trader.

I mentioned that trading plan is living document. i.e it is not that process manual which is written once and than left to gather dust somewhere in the cubboard. It needs to be referred frequently by trader (almost daily during early phases). But it doesn't have to be updated daily. Better to give sometime to collect observation/new ideas/improvements etc before you decide to update them in trading plan. There is no guideline hence take take a judgemental call. Not to mention that you need to believe in whatever you write in trading plan. If you get some fancy idea realted to improvement or new exit criteria, better to backtest it, validate it, ensure that u trust it and then give it place in trading plan.

If it helps, then one can break trading plan in parts..I have my detailed plan as well as a daily cheatsheet which summarises the key points from trading plan in bullet form for quick reference. I don't want to refer to 20 page doc in the battlefield after a loosing trade, but quickly go thru 30 bullet points to recover and come back to trading during mkt hours within minutes.

Coming from my extensive experience quality systems /iso/cmmi etc.. it is great to have good process/rules..but key to day-to-day implementation is translating them in easy-to-follow checklist of few bullet points.
Otherwise, after some time, we human being are too lazy to go thru details and start taking short-cuts cause we all are smart, we have written the plan and we know everything about trading.

Hope this helps.
Happy Trading

 

[AW10]

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rightly said, but further improvement possible.NORMALLY analyst r not trained to trade.they work on conviction, then justify with data....got happy if prediction right.
Traders,other hand master survival first.can work on risk/reward and probability.First hand experience to ignore noise and media hype,have faith in own ability,quick to react if proven wrong.

Another gem from oilman. This is must for a trader to avoid analysis-paralysis, knowing that we are trader and analysis is just part of our role. Our scope of work is bigger than analysis. While analysts make money by attempting to be right, we are here to accept the reality (i.e. we can be wrong in our analysis and let mkt show if we are right or wrong), work on probabilities, risk management, and controlling our response to emotions.

happy trading

 

[jagankris]

From Net - Rande Howell

Integrating Left Brain and Right Brain Thinking for Balanced Trading
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Trading seems so easy on the surface. Traders, while learning a methodology, are told (and believe), "Just follow the rules of your methodology and trading plan and you are on your way to achieving your dreams. Oh, and by the way, keep your emotions in check."

This little add-on after-thought, "just keep your emotions in check", comes to haunt nearly every trader until they learn to master and learn from their emotions. Curiously the highly left brained orientation (logical problem solving skill sets) of trader educational systems blind both educators and traders to the influence that our right brain (our emotional brain) has over a trader’s capacity to think effectively - and consequently the success of a person’s trading.

The flaw is simple and counter intuitive to the rationalistic lens through which we view the world. Particularly given a trader’s bias to find predictable certainty in the market. We get stuck in a way of viewing the world that believes, on a basic level, that if we really know the causal rules that logically govern the market, then we will succeed. This mindset depends on the existence of a set of rules "out there" that, once found, will be the Holy Grail of trading success. This is the essence of left brain thinking.

What neuro-science has discovered, however, turns our understanding of thinking and states of mind on its head. That seismic shift is this: The kind of thinking that a trader’s mind produces (for better or worse) comes out of the emotional state of the trader. And that is what influences the world that the trader sees and reacts to. There is no world "out there" that is deterministic - the world the trader sees is colored by the mindset of the trader who observes the world. And this is where traders get in trouble.
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This is exactly why the military trains their soldiers in conditions that resemble the chaos of battle where the fear of death is a real and present danger. They train soldiers to the clear-headed thinking that is needed for the emotional state of fear and its management. Traders need to train in a similar way.

 

[sramidi]

wONDERFUL ARTICLE.

THANKS

 

[darkstar]

QUOTE'- TRUE TREASURE IS NOT STOCKS & DIAMOND IT IS KNOWLEDGE & TECHNOLOGY . (now days i strongly believe in these golden words)
I FIRMLY believe this is the only business who had no competition with his fellow trader like stars, doctor layers ,beggars politicians and many more had with there contemporary. it is my firm believe which would occurred because of my trading experience. if i had competition or problem .it is with my mind my physiology, my confidence . in my eye . i had great well defined methodology. if i strict with my trading plan , methodology (which i developed in few years of hard work). and not go beyond my limitation (like greed, hope). no one make me knock out on that day (i am intra day player) . really i am not bother what other traders are doing. like film makers, politician will do. yes one thing i had to mention i always said to myself that i always open my mind for new knowledge technology. knowledge i get from Internet & now days technology also from Internet. lol

 

[hawaisanjay]

@4xpipcounter....I use the ichimoku, stochastics, TL's, and my proprietary set of S&R's.
What is TL and proprietary set of S&R's? Can you elaborate?
--Sanjay

 

[AW10]

TL is trend line.. you will find enough material on trendline on the net. just google it.
Proprietary set of S&R's - are as per 4xpipcounters person apprach to determine Support and Resistance. The word proprietary means that it is not for sharing with public...so plz leave it at that stage. You can also define your approach to identify support and Resistance.. again there is enough material on net about this.

Hope this answers your question.. As 4xpipcounter is not active here, hence I am answering your question.. He might add something to it later.

Happy Trading

 

[munde_77]

Need to go through again

 

[oilman5]

an excellent thread...................just now i reread!!!!!!!!!!!!!!!!!!

 

[Shaun]

in forex every smallest detail matters, you can't jus forget about any part of the trading process.