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eudamonia
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Postby eudamonia » Wed Sep 22, 2010 4:42 pm

lukx,

For those busting your balls it really isn't necessary. I have totally done what you did plenty of times. If he's got the money and this is how he wants his lesson - that's his decision. My first time trading I lost $25K on a futures account trading corn. Sad thing was at one point in the trade I was up $25k. That's what you call the toilet stop loss.

Everyone is obsessed with fading the extremes, but what if you were to trade with the trend (duh!), accept that losing trades are a part of being a successful trader (instead of using the toilet stoploss) and that your EGO is the ONLY thing stopping you.

Do you want to KNOW who was on the opposite side of your trade? That was me pillaging your account and stealing your pips. As Johnny Depp says in Pirates of the Carribean "there is only what a man can do and what a man cannot do". So can you turn your trading around and trade like pro or can you not?
Eudaimonia (pron.: you-die-moan-e-a) (Greek: εὐδαιμονία) is a classical Greek word commonly translated as 'happiness'. The less subjective "human flourishing" is often preferred as a translation.

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MightyOne
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Postby MightyOne » Wed Sep 22, 2010 4:48 pm

eudamonia wrote:lukx,

For those busting your balls it really isn't necessary. I have totally done what you did plenty of times. If he's got the money and this is how he wants his lesson - that's his decision. My first time trading I lost $25K on a futures account trading corn. Sad thing was at one point in the trade I was up $25k. That's what you call the toilet stop loss.

Everyone is obsessed with fading the extremes, but what if you were to trade with the trend (duh!), accept that losing trades are a part of being a successful trader (instead of using the toilet stoploss) and that your EGO is the ONLY thing stopping you.

Do you want to KNOW who was on the opposite side of your trade? That was me pillaging your account and stealing your pips. As Johnny Depp says in Pirates of the Carribean "there is only what a man can do and what a man cannot do". So can you turn your trading around and trade like pro or can you not?


You can fade the extremes in the direction of the trend...in fact that is what you are supposed to do:

1. Price close lower than "something"

2. Trade off the high extremes

Simple.

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Postby MightyOne » Wed Sep 22, 2010 4:53 pm

Make your way down the page from here:

http://kreslik.com/forums/viewtopic.php?p=46207#46207

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Postby MightyOne » Wed Sep 22, 2010 5:10 pm

Jalarupa wrote:
cwn6161 wrote:The USDCHF hasn't been this low since march of 08. You've got the right idea lukx with trading the extremes, but I think you need to wait for a bigger sign of upward movement before going long. This isn't just a daily or weekly low - it's a low of nearly 2 years+. A 50 or 75 pip move from a low may not be big enough to decide if the train has stopped. With an extreme form such a BIG timeframe, you could wait for a rat entry on the weekly candles, and still be in an excellent position if you hold for a while. Look at the weekly candles and ask yourself if price is looking like its going to reverse.


Good advice... :D

Also look at the fundamentals... the Dollar is in DEEP s**t at the moment... Look at Spot Gold... Record Heights against the Dollar and showing no real signs of slowing down... GOLD/DOLLAR GOES UP... DOLLAR/ANYTHING should be going DOWN...

Just my thoughts...


I think that a gold collapse is more likely than a dollar collapse.

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Postby MightyOne » Wed Sep 22, 2010 7:09 pm

:wink:

Image

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cwn6161
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Postby cwn6161 » Wed Sep 22, 2010 8:12 pm

MightyOne wrote::wink:

Image


Umm, I think the lightbulb came on. Forgive me for repeating the (now) obvious, but...

1) Use CCs to create lines.

2) If price closes over said line, use low extremes and trade long. If price closes under a line, use high extremes and trade short.

3) Continue trading until a large candle or new extreme in the direction of profit.


For the LONGEST time I've spent trying to see how to use CCs and lines correctly. I thought the game was looking for big extremes (like in the case of USDCHF) and trying to trade in reverse.

If price was at an extreme low, try for a long and if you get stopped out, keep trying as the price tries to go up. Kind like what lukx was doing. But this completely ignores the current trend, and so I was always hesitant of entering.

My thought and confusion was always "how do I know this is the highest high to reverse?" But after seeing lukx's trade and this pic, I see how you can use the lines to trade in the trend's direction. This is big!!!

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Postby pablo101 » Thu Sep 23, 2010 1:30 pm

cwn6161 wrote:
MightyOne wrote::wink:

Image


Umm, I think the lightbulb came on. Forgive me for repeating the (now) obvious, but...

1) Use CCs to create lines.

2) If price closes over said line, use low extremes and trade long. If price closes under a line, use high extremes and trade short.

3) Continue trading until a large candle or new extreme in the direction of profit.


For the LONGEST time I've spent trying to see how to use CCs and lines correctly. I thought the game was looking for big extremes (like in the case of USDCHF) and trying to trade in reverse.

If price was at an extreme low, try for a long and if you get stopped out, keep trying as the price tries to go up. Kind like what lukx was doing. But this completely ignores the current trend, and so I was always hesitant of entering.

My thought and confusion was always "how do I know this is the highest high to reverse?" But after seeing lukx's trade and this pic, I see how you can use the lines to trade in the trend's direction. This is big!!!


Can you expand on this cwn, maybe a marked up chart? Thank you.

cwn6161
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Postby cwn6161 » Thu Sep 23, 2010 1:43 pm

The pic MO posted of USDCHF really has everything you need.

CCs are used to keep you from missing the correct direction of the trend. Do you see what the current trend is? It's down!

Now look at the lines MO made. Each time, price crosses below it. This means the trend is still down. The direction to take is down.

We have the direction, now we need to enter. Logically, the best to place to enter on this chart would be the high of each day, right? That's where extremes come into play. Trade short from the daily high extremes while price keeps crossing below your lines.

It's like you are taking small retracements in the trend through your entrances off the extremes.

Does it make sense or am I crazy? :shock:

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Postby lukx » Thu Sep 23, 2010 3:05 pm

Image

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Postby cwn6161 » Thu Sep 23, 2010 3:18 pm

Sometimes it's best to wait for an entry.

Image

My CCs are different than yours, I'm not sure why but the point can still be made. See my blue line? Price hasn't been able to close over it.

What does that mean?!?!?!!? Wait. Wait. Wait. We are in a wicked area now. I have no idea what will happen but I wouldn't take a long trade until I saw the CC close above the wicked areas. I would maybe even wait to see price drop and not go below that line.

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