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dla133
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Everything posted by dla133
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I have read too many trading books over the last 5 years. Of all the trading books this one has had the most impact. I was a little confused to what it was trying to tell me at first, however when the penny dropped it really dropped. Do yourself a favour and read this book. Thanks DP for introducing this to me.
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HI, The link to the book does not work? To which book are you refering too? Kind Regards Lee
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Thanks, I'll take a look at that.
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I have been looking for long term commodity prices to compare were the price is now to where its been in the past. I trade using IGINDEX and they only show price history for commodities for the curent contract. This means if the contract is 2 weeks old then you can only see prices for the last 2 weeks. Not much good if you are looking for a long term view. Anybody have any suggestions? Kind Regards
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HI, Where would I download the following for free from? Hank Pruden - The Wyckoff Method - Analyzing Price and Volume Movement Using Mass Psychology. Wyckoff by the Action-Sequence Method: An Effective Way to Teach and Learn Technical Market Analysis Cheers Lee
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Hi DugDug, Thanks for clearing a few things up. You seem to have a good grasp of this strategy. You mention some books that explain this in detail. Do you know the title of any books which you would recommend that I read to learn more on this? The reason this strategy appealed to me was the opportunity of making consistent profits over the long term which would maybe help me subsidise my share trading as a second source. If anybody else on this site who reads this post is already using this strategy from the UK with long term success I would love to hear from them. Thanks again Dug Dug. Lee
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Hi, I have traded shares over the last few years with some success. However I keep hearing claims of using a covered call strategy to get a 3% - 6% profit each month. Apparently you buy the share and the covered call at the same time. You get paid for the covered call which gives you an income. I understand that if the stock goes up you will only get the capital gain up to your strike price (You make a profit). I also undertsand if the share stays flat then your covered call will expire and you keep the premium and the shares. (make a profit). You can then write a covered call again. However I don't understand what happensif the share drops in value. I understand that your capital will go down with the share priice, but what happens to your covered call? Can you sell your shares and the covered call at some point below what you paid and still make money because you collected a premium? They say a little knowledge is a dangerous thing, and that is what I have with this subject, a little knowledge. I would also be trading from the UK so I'm not sure of the restrictions and who i would use to try this strategy out with a demo account. I'm sure this strategy has been around for some time with quite a few people trying to sell courses on it. (Investment Mastery, Cash For Life or The Protected Trader etc). Can anyone help me understand this strategy better and what the pitfalls reaaly are. Kind Regards Lee
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Hi, How did Wyckoff track and determine who was doing what to who? Kind Regards Lee
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Thanks for your reply. The reason I like this forum so much is that you get people out there who can clear away the fog and put you back on the straight and narrow. Your right, I should stop worrying about who is doing the buying and selling and just concentrate on what I see and believe.
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If we forget about strong and weak holders. Can the price be manipulated so that traders are stoped out because all the stop orders are known? For example if the current price is 73 and there are a lot of traders with a stop order at 69. Can the market price be dropped so that the stops are hit. So many times I see price droped like in a shakeout which catches a lot of traders out just before the price then starts to move up. Its almost like somone is sat there, who can see all the orders and is manipulating the price to their advantage. Maybe I have been watching too many programmes like the X files and Fringe!
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Thanks for the replies, I suppose what I am getting down to really is how can you determine if you are really on the same side as the market movers or you are the Patsy (Using poker terminology) being bought from or sold to? Kind Regards
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HI, I have a question for those people out there that have a greater understanding about price movements with regards to supply and demand than I do. I understand the if supply is greater than demand prices will fall. I also understand if demand is greater than supply than prices will rise. However I have heard about how markets can be manipulated so that weak holders are forced to sell at low prices by strong holders and how strong holders can get weak holders to buy at high prices for fear of missing out. This makes me think that there is almost a conspiracy were price is being manipulated somehow. This is were my confusion starts to come in. :doh: How do the strong holders get the price to move to a certain level without first buying or selling. Is this done by them placing orders to buy at low prices and then the market makers moving the price lower to force the weak holders to sell from fear of losing all their money. The same is true in reverse were the strong holders make offers to sell at high prices and the market makers moving the price up causing the weak holders to get nervous that they are missing out and buy at a high price with no one to sell to so the price then falls again? If market manipulation is true in the favour of the strong holders then to become a successful trader you almost have to do the complete opposite of what comes naturally. Look to buy when everyone else is panicing and selling and look to sell when everyone else is becoming greedy and buying. Some people talk about how the strong holders can not hide their activity due to the high volume like how they buy into a selling climax and sell into a buying climax. You only know for sure that one of these has probably taken place when there is a test which confirms it. However could a selling climax or a buying climax not be a strong holder doing the complete opposite also and selling into a selling climax and buying into a buying climax? So I suppose what I am really asking is how do you know who is really moving the market, is it weak or strong holders. For clarity I refer to weak holders as the general public who lose money and strong holders as the professionals who make money. Kind Regards Lee
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Todd Krueger, Formerly of TradeGuider
dla133 replied to MRW's topic in Trading Products and Services
I'm not sure as I am not a student of VSA. He talks about wyckoff volume analysis in the first DVD and then relates that to candle charts in the second. I myself don't want to learn different candle formations like shooting stars etc. I want to learn what is behind the candle formation rather than just recognising patterns, and understand why the price pattern has formed. -
Todd Krueger, Formerly of TradeGuider
dla133 replied to MRW's topic in Trading Products and Services
I have purchased the 2 DVD set from Todd on Wyckoff. I also have the SMI study course and DB's book. Does everybody who wants to learn Wyckoff need to do this. Probably not. However for me I was struggling with some of the aspects and I learn better from watching rather than reading. This is were Todds dVD's have been so usefull. I have had so many a ha moments. Many times saying to myself, oh thats what they mean. So for me if you are trying to learn Wyckoff and still struggling and you have tried several resources give Todd a try. However if you already know Wyckoff and understand the principles then you have no need for them. Cheers Lee -
Hi Kiwi, Thanks for the reply. I should maybe consider myself lucky in discovering Wyckoff before Gann. Kind Regards
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Hi, Thanks for your response. Please don't think I'm not happy with my progress because I am. However for me trading is a life long learning curve. I have been down the route of most traders with tips, technical analysis searching for pattern, Canslim etc. I discovered Wyckoff before I had heard about Gann and that is the reason I am a Wyckoff student. The reason I am still a Wyckoff student is because it makes sense to me and appears that this style of trading suits me as a person. I like the way it allows me to feel in control of my trades even when they go against me at first and not panic and sell out, only to see the trade reverse back into what would have been a profit. I was hoping that somebody on this forum will have looked at both and would be helpful in giving their reasons for choosing one over the other. Cheers Lee
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Hi, I just thought I would give an update of my trading since reading posts from the Wyckoff Forum, especially those posted by DBPhoenix and Gassah. Since trying to become a Wyckoff student I have placed 12 trades this year with 12 giving a profit. This profit has given me a 30% profit on my capital. I now feel I am looking at the market in a totaly different way with an eye on Supply, Demand, Selling and Buying waves. The biggest thing for me so far has been not to panic when the trade doesn't go the right way to start off with, as long as the action still looks right then stick with it. So I would like to say a BIG THANK YOU to all who have answered my questions with patience in this forum. So why the title of this thread? Well I am still studying Wyckoff but have wondered why other more experienced traders chose Wyckoff over Gann? Kind Regards Lee
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Hi, I was just wondering how all those traders who are Wyckoff students came across his teachings. I for one only discovered Wyckoff on this forum. For me reading posts by traders who where obviously more successfull than I was, and who seemed to really have a feel for the markets inspired me to learn more. In the past I had always struggled with chart patterns and believing in them. (Head and shoulders etc). The reason for this was that I didn't understand how or why the patterns where forming. With Wyckoff I like the way you learn to read price action in relation to supply and demand to give you a deeper understanding of what is actually happening. Cheers Lee
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Ekshay has definately explained it better than I did. Thanks Ekshay
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Hi, Maybe I didn't explain myself very well. By stating that you need to have 51 winners and 50 losers to be profitable. I was just trying to highlight the fact that no matter what system or approach you take it will ALWAYS give you losers as well as winners. What I should have said is that you only need a CONSISTANT 1% overall gain out of 100 trades to be profitable. That is why I have stopped looking for the HOLY GRAIL and I am instead just looking to increase my overall winning percetange from 1% to 2% to 3% etc. I believe if I had understood this at the beginning, I would have concentrated more on sticking to sound principles (even when I suffered losses over the short term) and learned discipline rather than skip from one method to another searching for something that worked all the time. From my poor explanation of what I consider a fundermental lesson, all new traders need not worry about me trying to push any kind of trading seminar in the future. I would probably confuse myself! All the best for 2010 Lee
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I have been trying to become a more successfull trader for just over 3 years. I still consider myself a beginner in this fine art. I want to pass on to other guys the biggest lesson I have learned so far in my short trading career. Many more experienced traders have all been trying to help me learn this lesson, but it has taken me nearly 3 years to fully grasp it. To become a profitable trader you need an approach that gives you more winners than losers. Doh, how stupid is that! This is an obvious statement to make to anybody new or experienced in trading. Please let me explain myself. I have been looking for the holy grail because I believed that all successfull traders had a secret indicator or fancy system which I didn't know about. This doesn't exist. You have to learn to trade the markets in such a way that you will have 50 losing trades and 51 winning trades. This can be as simply as buying at support and selling at resistance CONSISTANTLY and not taking trades that don't follow this simple rule. Having the discipline to truely follow this is really the hard part. I can't tell you how many times I have struggled with CONSISTANTLY sticking to this simple rule. What I have now learned is that NOT taking the trades that don't match these rules, and not chasing trades that I have missed has improved my trading by a big margin. Following your trading rules consistantly can be all the advantage that you need to become succesfull trader rather than trying to find the next super duper indicator. Good luck with your trading in 2010. Lee
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HI, Are there any websites out there that can show the history of how many stocks made new highs when the market made a recent new high and how many stocks made a new low when the market made a recent new low? Cheers Lee
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With regard to support and resistance, do you base this entirely on the price movement or do you also consider volume levels? Do you normally see high levels of volume at support and resistance levels or a lack of volume. High levels of volume would indicate to me that there was a lot of trading in these areas which could incidcate strong support or strong resistance at those price levels. Low levels of volume would indicate a lack of buying demand which would lead to strong resistance and lack of supply which could indicate strong support. If I am sounding confused I suppose thats because I am. Even though I have read a couple of Wyckoff books the penny still hasn't quite dropped yet. I have attached 2 charts each showing the above. I think that chart 1 is the right approach, or am I getting this totaly wrong? Cheers Lee
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Thanks for the reply DB. I get what you are saying with regard to supply and demand lines and the momentum behind each. The steeper the angle the greater the momentum behind the supply or demand. From your recommendations I have just finished reading How to buy by Justin Mamis. A very interesting read which has given me a new outlook on trading. I am now reading The Nature of Risk by the same author. Hopefully with reading threads like this and reading solid books on trading as you have recommended I will start to see improvements. The one thing I still struggle with is patience. I make the same mistake again and again because I am too concerned with missing out on a potential winner rather than avoiding potential losers. Cheers Lee
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Please except my appologies for butting in here. I have been skim reading this thread with great interest. I believe what I am about to ask could be a stupid question, however here goes. I am trying to learn to trade using price action around key support and resistance levels, while considering the overall trend. My strategy is to place entries near proven support levels in an uptrending market and sell signals near proven resistance levels in a down trending market. I also was looking at using trend lines as areas of support and resistance but this doesn't seem to be as easy for me to draw on a chart. Should I be using trend lines to highlight the trend and not use them for price entry and exit areas and just use price levels of support and resistance within the trend? Cheers Lee