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  #18 (permalink)

Geelong Victoria
Posts: 113 since Jan 2015
Thanks: 45 given, 90 received

Grantx View Post
This can be achieved by using your brain as well!

1. A trading system is a set of guidelines. As a discretionary trader if your system is any more complicated than basic guidelines then you are fighting yourself.
2. The brain should not spend time interpreting your system. If you have to spend even a few seconds ‘interpreting’ system rules then that is time wasted. That is why you ‘KISS’.
3. There is only ever one of two things happening, the opportunity either exists or it doesn’t:

a. The trade is on: your structure has become evident and an appropriate entry exists within the structure.
b. No trade: No structure is evident.

The most powerful multi threaded processing unit available to you is your brain. Your training should be spent figuring out how to bypass the firewall (emotions, beliefs, assumptions etc) so that you can get access to the core processing unit. Once your basic framework has been embedded in your subconscious (through repeated practice) then it becomes a lot easier for you as the heavy lifting gets handled automatically.

If you look at the hard right of you chart, you know that a pattern is about to unfold which has occurred countless times before. Which one? No one knows but what is 100% knowable is that a pattern is about to repeat. The sequence in which these patterns occur is random and in my opinion that is where the skill and art of trading lies.

Navigate the path as it unfolds before you.

Generally, I agree with what you are saying but I don't know about patterns being evident prior to the trade entry. My view is more conditions are indicating either a bullish or a bearish underlying tone, establish the S/R level, trade the direction of the tone, buy the bull, sell the bear and let the market outcome unfold .On that basis there is often a pattern evident after the move and I most certainly would agree from decades of observation that these repeat regularly. I realize that it sounds like I am splitting hairs but there is actually a world of difference between pre trade and post trade observations, horses and carts. But then again I hold the firm view that none of us peons can know whether the next tick will be a continuation of the existing trend or the first one in the reversal. I have even seen a thread in here where they dispute the existence of trends. lol

Cheers John

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