Posts like this one is exactly why i love sites like this one.
Even though i went through many useless (sorry..) posts and reviews, it was worth it to get to this one.
very helpful and nice of you to share so thanks !
The following user says Thank You to dannydan123 for this post:
Great advice, especially the parts about support and resistance and waiting for the market to come to you. Too many people, including myself, have wasted years trying to find the elusive final high or low to get on board with a big win. The reality is, like you say, to master S and R, and when you do, you will be comfortable taking trades that come to you rather than chasing them. For too long I thought that if a trade was taken at the high or the low then they weren't worth having. I stand corrected. Good luck to you. I'm by no means the finished product and am working on the psychological aspects. Can highly recommend a book called The Trading Athlete.
I am new to this site and it was interesting to read through your experience. I spent the better part of 8 years trying a new idea/indicator and realizing that it really did not really work. Leaving and doing something else only to be drawn back with a new idea/indicator. I lost count of the number of iterations I went through for that but at the end of it I was wiser (and financially poorer) for it. Being one not to give up on something I persisted and now live a comfortable life trading. There are many many ways to trade and it took me a while to find my way. I guess you know when you are there because you can see the trades forming. As someone referenced above wait for the trade to come to you. I would also add not to chase trades as well and if something does look wrong it probably is. Better to let a trade go than having to fight to get out of it.
The following user says Thank You to bbgg91 for this post:
jokertrader : I only trade indices primarily the aussie, dax and sometimes ftse. I trade via cfd's of these indices. For me I have removed every indicator except BB and use price movement in reference to them to find trades. If you watch markets long enough different price patterns repeat and you have to understand what you are trading. Some are barges but some are Ferraris and you have to adjust what you do accordingly. I do not place manual stops and use fixed size limits for exits. I will average down on loosing trades and have a system in place which takes care of that (many will disagree but works for me). I only trade during market hrs for each of the indices. Overnight gaps can kill you. I have made it as simple as possible. I found the more rules you have the more that can go wrong.
I will just reiterate... understand what you are trading and find a time interval that suites you.
The following 2 users say Thank You to bbgg91 for this post:
CFD's offer a better use of capital. Margin requirements are so much smaller so I do not need a large trading account for the same return. Some people prefer to use futures which is ok also. CFD spreads are more or less the same as the futures contracts in market hrs. In regards to transparency, it is really not an issue for me as they have to track the underlying futures contract and 99.999% of the time they do.
It helps to understand the maths behind each indicator so it gives you a better understanding of what it is doing and why. Technical indicators are not more accurate on futures but relating what they are showing you to price action is critical.
Also I found that any system/rules you make should be time independent. That is what works on a 2min chart should also work on a 1 day chart. The only thing that will change is volatility.
The following 3 users say Thank You to bbgg91 for this post:
@DeadCatBounced, I applaud your decision . The first step to solving a problem is recognizing there is one and acting on it. You have done that. I am sure that when you come back, you will be equipped with a better approach towards trading the markets.
While much of what you said about wishing what you would have known when you started is true, I am sure you realize that this is a never ending cycle. If you had the money, you would have gotten married AND kept going at your quest to become a consistently profitable trader and 2 more years down the line, you would have added a few more things to your wishlist (and maybe removed a couple) and then a few more things a couple of more years later. And your greatest enemy will remain yourself because that is also a fight that is seemingly never ending. My point is that the learning and adapting, the struggle to better yourself never ends BUT at some point it becomes economically feasible. That is point you need to get to when you come back.