I saw this (non-trading related) quote today that articulated everything I have tried to say on this blog over the years, and my constant mantra of take what others show (whether it is me, TRADEthemove.com, Dr. Brett, all the other bloggers, writers, trading partners, et cetera) and "make it your own".
"The teacher may make a suggestion that will open up a line of thought for you, or he may point out a way that has proved of value to him; and thus save you much time and trouble. But you must do the real work yourself."
- William Atkinson
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Mentoring: The Key to Developing as a Trader
4 days ago
9 comments:
Nice quote, and it resonates. Have a good vacation.
Dawson
6/14/11
AH, 15m, 5ema, Fibs PDL to ORH, break above 5th bar, sold at FE for ~3R. Again, I rarely take these U-turn types of set-ups, but if the Fibs and 5ema line up perfectly with a bullish candle pattern, I'll take a shot.
I have to clarify/correct something I stated last week. I don't want to suggest that trading 1m, 2m, or 3m charts is somehow "wrong". Perhaps I should NOT even say "not as consistent".
Why? Because if I had the ability to identify and capitalize on only the very best set-ups in these shorter time-frames with sufficient speed and established experience, I imagine my results would be just as successful as any slower time-frame. Like X says, "A chart is a chart is a chart."
So, it's more about the user of the product, not the product itself, that creates opportunity or danger. Like a handgun. Or a Mcdonald's fish sandwich. Anything faster than 5m is not consistently profitable FOR ME personally, but not so for every trader.
In my case, 5m is my limit at this stage in my career. But I certainly don't want to make a rash, blanket statement that faster charts are inconsistent for everyone. That's obviously never been the case.
To X's point, to each his or her own, and you have to make it your own.
Okay, that's my market penance for the week. I feel better. :]
Chips and Salsa,
dont get me wrong, but I do not see the AH going to the Fib Extension ... if you entered as described, how could you score a 3R profit?
Just curious and by no means trying to offend you.
T
timo4sho,
No worries, man. Entirely my mistake. For some reason, it actually occurred to me as I was falling asleep last night, and I made a mental note to correct it here this morning. The stock (AH) never reached the FE. Not even close. I made ~3R when I sold near the ORH. Sorry, all. :]
Not sure if it's just me, but even with all this recent market volatility, it seems like there just aren't very many "no brainer" and "clear cut" Trader-X setups.
Even during post-market review, I'm not running into very many "I missed that one" type trades.
Or am I just out of sync?
I recall over the past month or two some days that had Trader-X type setups galore, and it was a matter of trying to pick the best setup of the bunch.
For all you veteran traders out there -- what's the longest you have had to wait until the fish started biting again?
Grove, yesterday was a great day for me. I had 5 setups, all winners. I didn't trade today, but looking at stocks tonight in my review I saw some solid short setups. The best of the lot was CU, 5-min - plot your Fibs over the first hour's range, and it made a textbook pullback to the retracement zone before continuing down past the Fibonacci extension.
Michael B.
what were the 5 stocks u traded yesterday?
t.k.
Grove,
I have to agree with you, and I've had to expand my watchlist to find the set-ups I usually look for. Huge sell-off today, but a lot of stocks moved straight down with less defined pullbacks or sideways stalling, and many with no pullbacks until late in the day after a very swift drop.
I did manage to find a few good ones:
RSG, 30m, 5ema, short below 2nd bar, Fibs over OR, took profits at 3R, although it reached 4R at one point.
USB, 30m, 5ema, short below 4th bar, Fibs over OR, stopped out at 2R, but it almost hit 3R.
I also took 3 longs on the 5m that did poorly on average:
BYI(1R Gain)
TTMI(1R Loss)
HPT(1R Loss)
The set-ups were so bad, I'm ashamed to admit that I even took them. Live and learn.
I will say this about downtime and time spent wondering if another solid set-up is ever going to appear again: Trading can make one day feel like an eternity waiting for something to come our way.
Times like these can be dangerous and leave a trader susceptible to blowing up their account by forcing trades out of impatience and restlessness if a watchlist isn't producing set-ups.
From personal experience blowing up my account more than once because of my impatience, I can respectfully say, times like these are critical in exercising patience and thinking about your next 1,000 trades over the course of the next few years to keep things in perspective.
Don't let the current day or week suck you into trading less than stellar set-ups if you find things just aren't setting up. it's not you, it's the market, and I have to step away and do something else entirely on days/weeks like that.
Trading in the summertime, the market climate, from what I've read from more experienced traders and from what I experienced personally last summer, can be much more finicky and much more volatile. I have to exercise even more restraint and be that much more selective. Just my personal experience. Hope it helps. Be encouraged. You are not alone. :]
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