bobcollett

WISE words Peter bobc

. To identify these areas, generally one has to look at longer term charts and work toward shorter time frames. The rule that helps you is simple, you want to see price rally (or drop) significantly (from a swing high or low), then you want to see it create a base, and finally you want to see it retrace and re-test that orignal swing point. This is just one or several scenarios that you could use to identify high probability setups and most importantly....the principles work for all markets (even currency markets)... In my posts, what you are seeing is my identification of supply/demand on shorter time frames and that may confuse you....As you may appreciate, working on shorter time frames requires experience and there is a bit of "art" to it, more than I can describe in a short post (this is in part why I intend to pursue a venue where I can give people more personal attention) Dear steve I have struggled to work out how you identify demand/supply. You highlight some swing highs / lows and leave others out. Easy , you are using a long term chart.I cant wait for the open on Monday bobc

Tradewind I find your posts well thought out and knowledgeable "Your trading plan is not profitable, you do follow it" WHAT NOW?? bobc

Thalestrader, I find your comment insulting I am an average member I read this fantastic forum for knowledge Without all us average members, you will be preaching to the seagulls We need each other - with discipline Kind regards bob collett

Dear one53 You have hardly started and the advice is all psychological.I'm supprised nobody suggested boring Mark Douglas.The best book for trading the S& P emini is Brooks "Reading Bar Charts Bar by Bar" Google will give you the first chapter for free. BUT trading the emini is all about running other traders stops.Thats difficult. Twice a month theres a big move.The rest is scalping.You must be a full time trader to succeed at scalping!! Get a mentor to shorten the learning curve Brooks website offers a Daily trading room -- cheap. http://www.brookspriceaction.com/ Now for the bad news.Brooks is VERY difficult to follow It will take you 3 months to learn just a little.But you have to start somewhere. Regards bob collett

Hi Palm Here in sunny South Africa the cheapest commission is $30 in and out. Thats for index futures Thats 0.7% To trade stocks costs more Australia and New Zealand are the same In the US you pay $12 You are paying $6 FFS (You know what this stands for?) Regards bobc

Sorry , the trading world Perseverance is spelled incorrectly bobcollett

Dear Erichetrader (MMS) Lets assume, as a trader,you have covered all your 11 points. You've got the plan, the money management, the stop, the exit , blah,blah, blah. And you are still loosing money!!!!! Something is missing?? UNDERSTANDING that you can loose 10 times in row before you win. And with so many losses , all small ,because you have covered all 11 above points,you now look for a new method. Back to square one!!! NEW PLAN The Turtles went for months of losse before a win. Please add number 12 Perserverance with your chosen method Read "The Ultimate Trading System" by J Hill for more info.(1999) You can download it for free from 4Shared .com regards bobcollett

dwt is correct. You Do have to paper trade.But you are adamant So divide your money into $50 units. $5 commission + $45 stop loss and aim for $100 profit . That will give you about 100 trades at 3 a day, initially. If you win 1 in 3 you can stay in business forever.But whos buying the groceries? Regards bobcollett

Well choubix, just to confuse you a bit more, I am going to offer my holy grail, which is the opposite of our learned friend bakrob99. Please don't buy boring psychology books(Van Tharp) The only mind problem is DOUBT. You doubt your trading system.So its not your mind that needs fixing- but your entries. I always read the advise "only take the best entries".But where are they? In a bull market the best entry is at the low of the day!!!!!!!!!!!!!!!!!! which you will miss because you don't know its the low until it reverses. And then it can go back down some more. So the next best entry is a swing low Why? Because your risk is low.You are buying with your stop just below the swing low And if you get stopped out you wait for the next swing low. So you are satisfying RULE 1 Risk / reward But you can't just enter at a swing low. You need a signal bar- PRICE ACTION. Go and buy / borrow (don't steal because your geyser will burst or worse still, you'll be stopped out) Al Brooks book "Reading price charts Bar by Bar" It will tell you the works! BUT Its very difficult to follow It took me 3 months to fully understand just chapters 1 and 2 But I stopped losing money Dont try and read it in one sitting. You will skim. Understand each section before you move on. Pay attention to H1's and H2's. If you are a computer expert you could write a program using H1's and H2's to automate your trading. I can't help you there because I still struggle to find the On/ Off switch on my computer. I hav'nt covered exits.Worry about the entries. You have to be running to stop running. The BIG problem with only trading the swing lows is you often have to wait a while to trade.ITS BORING. Thats RULE 2 Patience All the above is obviously reversed in a Bear market Except the Risk/ Reward and Patience. Remember the problem is DOUBT. You cant eliminate it completely but you can minimise it with a low risk entry. Learn a few signal bars and take the low risk entry How difficult is this???????????? Its when you trade in the middle of a range that it gets difficult. Why? Because your stop is in the middle of nowhere. And if you place it at the correct spot, below the swing low, your risk is too big. Kind regards bobcollett

Dear Jbahn Most trading psychology books are boring and "Trading in the Zone" is the worst. You dont want to read another boring book. I believe the actual trading process is the problem. You doubt your entries and exits. So its all in the mind DOUBT And until you trust your trading process, you are f..... Resolve YOU WILL NOT FAIL No distractions Detailed Trading Plan, and start with RISK Stick to it - thats discipline And the holy grail - Patience - wait for pullbacks So if discipline is the problem, you dont need a book on Trading Psychology, you need a book on discipline bobcollett

Dear market_machine, What steve46 says is correct. He just left out the most important part of a reversal. There must be a TEST of the high/low. My trading plan says - no trade till the extreme is tested , whether its just below or just above the extreme. There is always a TEST. And sometimes the test takes a few days. Half-hearted moves are RETRACEMENTS A gap is a very strong reversal. But gaps close. So the trade is simple.The chart makes a swing high/low. Look back. Has it been there before . NO! Wait for price to test it. YES. Fade the extreme with a money stop in the oposite direction. Now I know sometimes there is no test In fact quite often there is no test. But my plan says -no trade without a test. So theres the REVERSAL indicator No wonder I get board waiting !! Kind regards bobcollett

Hello Youngsequan, I was hoping to see a few replys to your question. Nothing!! So heres my version. Do you have PRICE ON VOLUME on your charts. Thats when volume appears on the left hand side of your chart,NOT at the bottom. Turn it on. It should look like a bell curve.Now the fattest part of this bell curve is called BALANCE Thats where most of the action takes place. Its also called VALUE. Both the buyers and the sellers agree the price is fair. Would you buy/ sell at BALANCE / VALUE? Off course not. The price ALWAYS moves back to BALANCE/ VALUE At 11am every day , where is this BALANCE/ VALUE? Heres the trade. Buy/ sell outside BALANCE/ VALUE It always moves back Kind regards bobcollett

Hello Youngsequan (mms), You are a perfect candidate for Market Profile By 11am the bell curve will be formed and you can use the info to trade, maybe. Go and read up about it. Theres lots of info available But remember its NOT a trading system. Its very useful background knowledge of where the markets are headed Brooks warns of midday consolidation Joe Ross doesnt trade between 11.30 and 2.30. He writes trading courses- much easier. Please dont listen to filip who suggests trading the opposite of the signal. That sort of statement needs testing, unless he sends us his trading profit & loss account. regards bobcollett

Thats what I like about TRADERS LAB. Somebody comes along with a link to a book, article ,more info ,etc Even though I think madmarket scientist creates these threads bobcollett

Dear JLJ, You are going to have to start all over again And using stocastics without price action is a losing method. The market will stay oversold / overbought longer than you will stay solvent. Look on this site for threads on price action. There is some excellent info. Be careful of Brooks. Thats scalping. And his book takes a while to grasp. But dont dispair. It takes a while and a bit of cash. And I think a 8% stoploss is too big -Look at the average move per time period over 20 time periods. This will determine your stop, maximum 3%. If a share moves on average 8% a day (time period), dont trade it. Find something less volotile. Do you understand how the market works?The Institutions drive the market .The analysis will determine the EXPECTED FUTURE EARNINGS of a share.An order will be placed for 1 million shares at lets say $50 with a maximum of $55. The market moves up . At $55 the big buyer steps back and waits for a pullback.At $50 he starts buying again unless he has filled his order. Thats why you wait for him and trade on his momentum. Wait for a pullback. You also need to know the consensus view of future earnings so you have a rough idea of where the share is heading. So you combine fundamental analysis with a chart. And finally trading is a full time job.You need 10000 hours to become proficient. Thats 8 hours a day for 5years!!! The biggest problem with this advise is its too brief, so go and read Soultrader where there is 1000 pages of info. Been there, done that. bobcollett l

Hi catsrevenge Have a look at the chart dragon 987 posted Unfortunately I cant see the chart clearly BUT.... The chart shows the price is at support The long term trend is UP The candles show consoladation. That means uncertainity. Which way will it go.? Set a stop just below these support candles because the price can fall to the GREEN line! Hold till the price moves back to those flat resistance levels and then sell half. Then phone for more help Bob Collett

My stock broker, who is also my golf partner, who is also my friend for 40 years, trades without charts. In fact he looks down on any form of chart reader. His method is something like this.You watch the Bid and the Offer on a fast moving high volume stock..If the bid is $10 and the offer is $10.20 and the sale goes through at $10, there are more sellers than buyers. If this changes and the sale goes through at $10.20, there are more buyers than sellers.The bid will now change to $10.20 and the offer will move up.Its a big share so there are lots of sales at the same price before a change.BUY.Its a pure scalp and you take small profits with a 1% stop loss.Its easy if you are a stock broker--- you dont pay brokerage !!!!