Trading Proverb #10. Learn what signals most traders use.
Ah. This is the question you really need to be asking. It is not about what YOU do, or what YOU want to do, it is about what is the majority of everyone else doing. Be sure to include that one bank as part of everyone else because the size of its trade made the market move. You might be able to find tops and bottoms pretty easy, but are they the same one's everyone else is seeing? Knowing what should happen compared to what does happen is probably the most common frustration among traders. It is what prompted me to figure out why I thought the market should reverse, but it didn't. It is the catalyst for how I developed my techniques for identifying equilibrium and control limits.
You looked at some candles and put together a design and sometimes it works and sometimes it doesn't. (Believe me, I have made hundreds of designs over the years and analyzed hundreds more) Or some Wall Street trained guru shows you how to draw some lines on a piece of paper and how to calculate risk/reward based on HIS mathematical formula. Pause for a second. Do you suppose a Wall Street trader that gives you a method for calculating stop losses and profit targets is your friend? Or is he a guy that has predetermined where the tolerance levels of your trade are located? Hmm. That kind of data will allow him to change his math to take advantage of you. It also allows them to stop hunt and either take you out of the market for a loss, or if you like placing pending trades, he can activate your BUY order and then charge the other direction to engage your stop loss. Think it doesn't happen? It happens ALL the time. Ever really think about how those buildings in Las Vegas got so big? Ever wonder how Wall Street got so big? It is from knowing what works, and what doesn't work, and turning the odds to their favor. So, why on earth would you volunteer to use their strategies????
Let's not forget that big candles are made not only from injecting new money, but also from hitting stop losses. I don't know what experience you have in the stock market, but if you have been in it awhile you will eventually receive touts to trade. A tout is a spam email or phone call telling you the next best great thing and if it is about to explode or implode in the near future. Perhaps the information is valid, or perhaps it is just like the Wolf of Wall Street? They want you to buy their stock so they can sell it for profit. Hey, it's your world to play in, but I don't play with touts. I also don't try to predict currencies. Anything can happen. You have economists on TV predicting movement but unable to rub two dimes together. Then you have traders who don't pay them any attention and could buy the TV station. Anyway, predicting where the market is going next week is stupid to me. I prefer to trail the market and pick up the crumbs. I could care less if price goes up or down. I wait until they put it in gear and just go with the flow. Consider me like a trailing stop, lol. I enter after you start moving, follow from a distance, and make money every time you turn on the next street. If the shark has his mouth open, but you are behind it, guess who is not getting eaten?
As a retail trader looking a price action, what do you see? Do you see the bigger candles that form on 5/8 moving average crosses? Do you see the bigger candles that form on 5/13 moving average crosses? Do you see the spikes when the 12/26/9 MACD crosses the 0 line? Or do you only concentrate on building your piece of pie? Do you see what happens at the 50 line of the Fibonacci? Do you see how market direction changes, even inside bigger moves, everytime the tiniest trend line is broken or hit? Do you see how price approaches certain moving averages and then bounces off them?
These are the things that are valuable. It is not just how can you manipulate some indicator to form fit the current data. What action drives the most market activity? Actually that answer is easiest. News. But afterward, how do you navigate the waves caused by the news? Think of the market as though you just threw a rock into a pond. Each ripple created from the cohesion of the water is potential profit, once when it rises, and again when it falls. I refer to this as wave trading.
There are two foundational ways to wave trade. One, is to recognize when the rock will be thrown, and the other is to recognize what other traders will do during the rise and fall of each wave. Once you can do this, then simply capitalize on their behavior. If they do not react normally, prepare to exit. If they do react normally, prepare to ride the wave until it reaches its apex. This is another way of saying the control limit of the market's equilibrium. A control limit is some value, pivot point, trend line, or probability crossover inside an indicator that shows the point of exhaustion between the bulls and the bears, or in the most simplest terms, the high or low point of the wave.
The trick though is to measure those control limits properly. If your settings are wrong, you will enter too late and be subjected to drawdowns or outright reversals. If you enter too early, you will be subjected to head fakes and be heading the opposite direction as the rest of the herd. It is safe to assume that the standard setting of any indicator is wrong! That point was already discussed so no need to expand on it.
Despite how hard it all looks, feels, or seems, it is still 50-50. Price will go up, or it will go down. You will buy, or you will sell. There are some low volatility currency pairs that actually don't move, but don't be that guy who dissects things. Keep a big picture focus and stay out of the weeds. Expect to be fooled once in awhile. Notice I did not say LOSE, I said FOOLED! When you get fooled, simply pick up your remaining money and leave. You can't do that in Las Vegas, LOL!! Did you know you don't have to let a stop loss activate? If you don't get fooled much, you will have no other choice but to be rich.
~You don't need to see his identification. These aren't the droids you're looking for. He can go about his business. Move along.
*Star Wars
Ah. This is the question you really need to be asking. It is not about what YOU do, or what YOU want to do, it is about what is the majority of everyone else doing. Be sure to include that one bank as part of everyone else because the size of its trade made the market move. You might be able to find tops and bottoms pretty easy, but are they the same one's everyone else is seeing? Knowing what should happen compared to what does happen is probably the most common frustration among traders. It is what prompted me to figure out why I thought the market should reverse, but it didn't. It is the catalyst for how I developed my techniques for identifying equilibrium and control limits.
You looked at some candles and put together a design and sometimes it works and sometimes it doesn't. (Believe me, I have made hundreds of designs over the years and analyzed hundreds more) Or some Wall Street trained guru shows you how to draw some lines on a piece of paper and how to calculate risk/reward based on HIS mathematical formula. Pause for a second. Do you suppose a Wall Street trader that gives you a method for calculating stop losses and profit targets is your friend? Or is he a guy that has predetermined where the tolerance levels of your trade are located? Hmm. That kind of data will allow him to change his math to take advantage of you. It also allows them to stop hunt and either take you out of the market for a loss, or if you like placing pending trades, he can activate your BUY order and then charge the other direction to engage your stop loss. Think it doesn't happen? It happens ALL the time. Ever really think about how those buildings in Las Vegas got so big? Ever wonder how Wall Street got so big? It is from knowing what works, and what doesn't work, and turning the odds to their favor. So, why on earth would you volunteer to use their strategies????
Let's not forget that big candles are made not only from injecting new money, but also from hitting stop losses. I don't know what experience you have in the stock market, but if you have been in it awhile you will eventually receive touts to trade. A tout is a spam email or phone call telling you the next best great thing and if it is about to explode or implode in the near future. Perhaps the information is valid, or perhaps it is just like the Wolf of Wall Street? They want you to buy their stock so they can sell it for profit. Hey, it's your world to play in, but I don't play with touts. I also don't try to predict currencies. Anything can happen. You have economists on TV predicting movement but unable to rub two dimes together. Then you have traders who don't pay them any attention and could buy the TV station. Anyway, predicting where the market is going next week is stupid to me. I prefer to trail the market and pick up the crumbs. I could care less if price goes up or down. I wait until they put it in gear and just go with the flow. Consider me like a trailing stop, lol. I enter after you start moving, follow from a distance, and make money every time you turn on the next street. If the shark has his mouth open, but you are behind it, guess who is not getting eaten?
As a retail trader looking a price action, what do you see? Do you see the bigger candles that form on 5/8 moving average crosses? Do you see the bigger candles that form on 5/13 moving average crosses? Do you see the spikes when the 12/26/9 MACD crosses the 0 line? Or do you only concentrate on building your piece of pie? Do you see what happens at the 50 line of the Fibonacci? Do you see how market direction changes, even inside bigger moves, everytime the tiniest trend line is broken or hit? Do you see how price approaches certain moving averages and then bounces off them?
These are the things that are valuable. It is not just how can you manipulate some indicator to form fit the current data. What action drives the most market activity? Actually that answer is easiest. News. But afterward, how do you navigate the waves caused by the news? Think of the market as though you just threw a rock into a pond. Each ripple created from the cohesion of the water is potential profit, once when it rises, and again when it falls. I refer to this as wave trading.
There are two foundational ways to wave trade. One, is to recognize when the rock will be thrown, and the other is to recognize what other traders will do during the rise and fall of each wave. Once you can do this, then simply capitalize on their behavior. If they do not react normally, prepare to exit. If they do react normally, prepare to ride the wave until it reaches its apex. This is another way of saying the control limit of the market's equilibrium. A control limit is some value, pivot point, trend line, or probability crossover inside an indicator that shows the point of exhaustion between the bulls and the bears, or in the most simplest terms, the high or low point of the wave.
The trick though is to measure those control limits properly. If your settings are wrong, you will enter too late and be subjected to drawdowns or outright reversals. If you enter too early, you will be subjected to head fakes and be heading the opposite direction as the rest of the herd. It is safe to assume that the standard setting of any indicator is wrong! That point was already discussed so no need to expand on it.
Despite how hard it all looks, feels, or seems, it is still 50-50. Price will go up, or it will go down. You will buy, or you will sell. There are some low volatility currency pairs that actually don't move, but don't be that guy who dissects things. Keep a big picture focus and stay out of the weeds. Expect to be fooled once in awhile. Notice I did not say LOSE, I said FOOLED! When you get fooled, simply pick up your remaining money and leave. You can't do that in Las Vegas, LOL!! Did you know you don't have to let a stop loss activate? If you don't get fooled much, you will have no other choice but to be rich.
~You don't need to see his identification. These aren't the droids you're looking for. He can go about his business. Move along.
*Star Wars
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