Learning through blunders

[newtrader101]

Do it everyday is good advice for most professions--write everyday, paint every day, run every day,...

But it is bad advice for traders..Trading everyday will only fatten the brokers' and the market makers' accounts.

What do you think?

 

[newtrader101]

What's your most prized possession?
I hope you don't say its your trading and other successes.

Its our minds that are our most prized possession (As of now, that's what I think).

If we were able to switch thoughts on and off at will in our minds it'd be wonderful isnt it?

Nothing and nobody would be able to take away your freedom and poise.

 

[newtrader101]

Trend anticipation and confirmation with Bollinger bands and Renko

 

[LOVEENAJYOTHI]

Trend anticipation and confirmation with Bollinger bands and Renko
View attachment 25171

Plz give a reading of the above chart for the uninitiated.
Thank u

 

[timepass]

Trend anticipation and confirmation with Bollinger bands and Renko
View attachment 25171

It's a head scratching strategy. Anything works in trending times. Work with it, let's see how it pans out over 3-4 months.

 

[newtrader101]

Plz give a reading of the above chart for the uninitiated.
Thank u

The source of the idea is Bollinger on bollinger bands. Lucidly written.

 

[pannet1]

Trend anticipation and confirmation with Bollinger bands and Renko
View attachment 25171

when i see RENKO or its cousin RANGE bars without wicks, it reminds of my days where i thought this is the HOLY GRAIL.
if the brick size is small than there seems to be so much of them without breaking out or break out failures.
if i keep the brick size big, then i dont have the guts to have that big stop loss.
if you have 50 point brick size and if there is a breakout and you have the long order at the 51st point, it moves another 49 points up and then retraces back to the -50 points to form a bearish brick.
it triggers your STOP loss and again moves up like its a perfect world. RENKO paints a beautiful uptrend picture, making you pull your hair and curse yourself for your impatience.

One really needs synthetic candles that paint all the places where the price went, to really see what exactly happened. Even with normal candlestics, we have certain ticks not printed (yeah, the ones that picked up your SL below the support candle). So imagining a perfect chart so that one can do technical analysis nicely and expect the market to behave like they want, is really a myth.

i would rather prefer the regular candle, may be a tick chart, and if i use synthetic candles (RANGE bar or RENKO), i want them to capture everything without redraw.

 

[newtrader101]

when i see RENKO or its cousin RANGE bars without wicks, it reminds of my days where i thought this is the HOLY GRAIL.
if the brick size is small than there seems to be so much of them without breaking out or break out failures.
if i keep the brick size big, then i dont have the guts to have that big stop loss.
if you have 50 point brick size and if there is a breakout and you have the long order at the 51st point, it moves another 49 points up and then retraces back to the -50 points to form a bearish brick.
it triggers your STOP loss and again moves up like its a perfect world. RENKO paints a beautiful uptrend picture, making you pull your hair and curse yourself for your impatience.

One really needs synthetic candles that paint all the places where the price went, to really see what exactly happened. Even with normal candlestics, we have certain ticks not printed (yeah, the ones that picked up your SL below the support candle). So imagining a perfect chart so that one can do technical analysis nicely and expect the market to behave like they want, is really a myth.

i would rather prefer the regular candle, may be a tick chart, and if i use synthetic candles (RANGE bar or RENKO), i want them to capture everything without redraw.

I get your point. So far, I tried only small positions, so when SL hit it wasn't a big loss (See Gold trading experiment). Also when bricks change color frequently, it must be a key level.
When color changes, I go back to the candlesticks and check whats happening.
If the instrument is volatile (like Crude above) or the position size is huge w.r.t. capital, then it would be a real pain and we wouldn't be able to think objectively.

 

[newtrader101]

A driver can only drive on the road (normally, unless you have a special off-roader like Jeep). Still you cant drive off a cliff.

Surprisingly, traders do commit this type of mistake in trading.

Traders, the chart is your road.

 

[newtrader101]

It's important to listen to other traders' views and read their threads. I was thinking of starting Equity futures trading. Chanced upon a thread how the trader got a huge loss when the stock gapped up in the morning. 25k wiped out in one stroke!
This is more like no-holds-barred MMA.