Why You Lose At Trading

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Relativity
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Postby Relativity » Sun Nov 21, 2010 8:19 am

TheRumpledOne wrote:
PebbleTrader wrote:"The 1-tick chart is the REAL MARKET. Any other time period
is a conceptual representation of what occurred between 2
points in time." -TRO

TRO,

Could you elaborate on that?

Thank you



Bars/candles have open, high, low, close for the time period.

That represents what happened during that time period.

A 1 minute chart has all the ticks that happened during that minute. It could be 1 tick or 1 million. But all you see is the open, high, low and close.

So it is a CONCEPTUAL REPRESENTATION of what happened during that minute.



This means candles are already an indicator by itself. Hence why it is possible to trade without other indicators. LOL

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PebbleTrader
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Postby PebbleTrader » Tue Nov 23, 2010 1:06 am

bredin wrote:MO trades without a stop, think about HIS returns ;)

G.


MO/Others,

If you don't use stops, how do you prepare for a "Black Swan" like event?
Life is just a journey

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Postby PebbleTrader » Tue Nov 23, 2010 1:07 am

Thanks for the discussion, never thought about it like that before!
Life is just a journey

Relativity
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Postby Relativity » Tue Nov 23, 2010 7:47 am

PebbleTrader wrote:
bredin wrote:MO trades without a stop, think about HIS returns ;)

G.


MO/Others,

If you don't use stops, how do you prepare for a "Black Swan" like event?


Depends on what you can define as black swan.

Black Swans are a one time 'outier' event that are undirected and unpredicted. To me trading is best when low variance / high regularity exist. Must be something that I know, something that I can be aware of. Anything outside low variance / high regularity = Black Swan.

So the only preparation I can think of is avoidance of it in the 1st place. In trading, it means no opening of positions unless I see low variance / high regularity.

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Postby TheRumpledOne » Tue Nov 23, 2010 2:16 pm

If you trade like a RAT, you can only get "Black Swanned" in one direction. Think about what happens when it goes your way!!

Yale students don't have a chance.

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Postby MightyOne » Tue Nov 23, 2010 7:17 pm

PebbleTrader wrote:
bredin wrote:MO trades without a stop, think about HIS returns ;)

G.


MO/Others,

If you don't use stops, how do you prepare for a "Black Swan" like event?


1. My risk is smallest when I am most vulnerable

2. I trade large charts and thus reduce the severity of sudden moves.

3. I trade small charts to cut pieces out of the market and I paste them to my profit cushion.

4. I know how price is moving over many periods of time and in many different shifts.

5. When the chart gives me room for aggression, I am the Black Swan event :lol:

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Postby MightyOne » Wed Nov 24, 2010 11:38 am

I tried to be as novice as possible to make the decisions realistic :wink:

Notice that a trader using the Rat entry and S&R is fighting tooth and nail with his last 4 pips instead of saying:

"My strategy is to get nailed for 10 pips if I am wrong"

or

"It is only 4 more pips, fk it..."


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Postby PebbleTrader » Thu Nov 25, 2010 4:38 pm

Hi MO,

I'm only picking up bits and pieces of what you wrote and annotated on the chart.

I will keep studying it.

Can you point me to a thread where this is being discussed further?

Have a wonderful Thanksgiving!
Life is just a journey

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newschool
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Postby newschool » Thu Nov 25, 2010 7:33 pm

TRO, a donation is a gift by definition, right? So it shouldn't be traded for something else... I don't get it.

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Postby TheRumpledOne » Fri Nov 26, 2010 10:47 pm

newschool, I am not sure what you are talking about!?!
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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