Questions for your Mentor or Trainer

Hi Folks
lots of interesting stuff flying around.
'In gambling you place your money to see the pattern but in trading you see the pattern and place your money". Even with this edge we still loose like gamblers...LOL....
Now before some one gets taken for a F. ride again here is what you must ask your mentor/ trainer/ trading room gurus...
1) Do you "Sir/Madam "use hard stops??? If the answer is yes...ask them how do you compensate for the increased volatility and liquidity.
2) "Sir/Madam" do you know how much you will make when you get into a trade. If the answer is yes then it is a recipe for disaster. You will end up shorting your winners and adding to your looser. If you close out too soon then its actually a looser and a winner only on paper.If you can't juice out a trend then when the market goes into a severe chop you will be left spinning. Be forewarned that if the answer is "I use runners or money managment" this guy is another mumbo jumbo looking for easy money. Also to trade you need a mimimum of $3000,00 per contract on the Emini S&P in your account just to stay above water.
3) Sir/Madam how do you diagnose a chop?
4) Sir/Madam how do you diagnose that the trade is going against you i.e a short is becoming a long or a long is becoming a short.
5) Lastly indicators are the best for disaster. So don't get sucked by fancy changing colours

Originally posted by ak1

Hi Folks
lots of interesting stuff flying around.
'In gambling you place your money to see the pattern but in trading you see the pattern and place your money". Even with this edge we still loose like gamblers...LOL....
Now before some one gets taken for a F. ride again here is what you must ask your mentor/ trainer/ trading room gurus...
1) Do you "Sir/Madam "use hard stops??? If the answer is yes...ask them how do you compensate for the increased volatility and liquidity.
2) "Sir/Madam" do you know how much you will make when you get into a trade. If the answer is yes then it is a recipe for disaster. You will end up shorting your winners and adding to your looser. If you close out too soon then its actually a looser and a winner only on paper.If you can't juice out a trend then when the market goes into a severe chop you will be left spinning. Be forewarned that if the answer is "I use runners or money managment" this guy is another mumbo jumbo looking for easy money. Also to trade you need a mimimum of $3000,00 per contract on the Emini S&P in your account just to stay above water.
3) Sir/Madam how do you diagnose a chop?
4) Sir/Madam how do you diagnose that the trade is going against you i.e a short is becoming a long or a long is becoming a short.
5) Lastly indicators are the best for disaster. So don't get sucked by fancy changing colours

Very interesting post, and a valid post that aims at all these trading room guru's.

Reading this, only makes me confident and close to finalizing the trade room that I will stay with for the long haul.

ak1,

i am assuming you are trading on your own? if so, would you give some insight on your method to help us newbees get on the correct path during our journey's? Thanks!

Yes, Please don't use indicators. Support and resistance are there to be broken and thus are not immortal.The market will reverse but it needs to do damage at stop losses. That is what market is all about.

Originally posted by ak1

Yes, Please don't use indicators. Support and resistance are there to be broken and thus are not immortal.The market will reverse but it needs to do damage at stop losses. That is what market is all about.

okay? so what your saying is that dont day trade cuz its a scam?
why so bitter, if I may ask?

Trading is half science and half art. It is mainly based on the probability theory,e.e. to find places where mostly likely the price will start a profitable trend. One need a sound signal system/method for science part and a sound risk management method for art part. One need know 2 ratios, the win/loss ratio = if you trade 10 times, how many wins/losses and risk/reward ratio= if right, how many points gained, if wrong, how big is the stop. The key to successful trading is to be able to recognize when big guys start to act. Their actions initiate the trend. It is not because certain Moving average crossing, or some other indicators showing something that prompt mutual funds to buy/sell. They have their own plans, decisions and executions. For us small traders, all we need is something/signals to tell us that big guys start to move now. If just mechnically follow lines, curves,numbers, you will encounter lots of false moves. Whenever you find trading like fighting someone, guessing others intention or hoping/wishing, you know you are on the wrong side. The best way to learn trading is to find some experienced non-commercial mentors who are willing and generous to teach you, let them show you in real time how to trade. What to look for, where to look. Without this, would be very hard to win in this zero-sum and look-for-certainty-in uncertainty game for most people.

That right, following a fixed price, level, S/R # is a pure recipe for disaster. How can a reversal # today be a reversal # tomorrow.Fresh day, fresh eco. data and every day a new group of traders/indicators/vendors added to the flock. Reversal at such points if it happens it is very occasional. That is why 99% traders loose. If one can only figure out when and where the market makers will act P.P. Rats. MP# all work but in one day only one # will work.. Which one
Averaging into traders is another way to loose......

You've got a good point in that ANY approach to the markets will cycle through good and poor times ... including price S/R levels. And being a big fan of Price Action Support Resistance that I've followed on equities, but especially Indices (primarily the SP/ES), they function as a very solid "map."

And for anyone that would discount this as a potential useful component of trading, I tracked S/R levels posting charts with lines at those levels based/derrived from prior price action on multiple time frames. And as always, they function as areas/zones where one would watch how price acts around them ... along with any other methodology a trader brings to the table ... to increase the odds of getting off a good trade.

Here's the link to a thread/topic where I posted them over time ... where the S/R levels are the same, and a few added. How price reacted forward in time for weeks+ exceeds random probability. It offers an edge:

http://www.mypivots.com/board/topic/5380/1/price-support-resistance

And after gong thru that ... I have a thread/topic where I showed visually on a chart using Tradestation how I chose where to draw in the price levels:

http://www.mypivots.com/Board/Topic/5175/1/support-resistance

Fyi, it's not a "system" or a "method" ... but a tool in the toolbox of strategy and tactics. I remember when Joe Ross did his spam postings on sites (including this 'un) where he shat all over price S/R as useless. Well, f*#K that B.S. all the way to hell and back. Been using this effectively for almost 2 decades ... and especially to assist my equity trading for when to enter a trade or not based on "room to run" ... and also for ES trading.

I'll let the posts on the links I provided above speak for themselves visually as they are snapshots over time. I hope this answers some questions, is useful to folks here and potentially something that is a confirmation of a tool that will be incorporated into trading that boosts understanding of market movement and also PROFITS!!

Peace Love and Wild Monkey Flips to All,

The 14 Beer (at this point) Swiggin' Monkey

Originally posted by ak1

That right, following a fixed price, level, S/R # is a pure recipe for disaster. How can a reversal # today be a reversal # tomorrow.Fresh day, fresh eco. data and every day a new group of traders/indicators/vendors added to the flock. Reversal at such points if it happens it is very occasional. That is why 99% traders loose. If one can only figure out when and where the market makers will act

P.P. Rats. MP# all work but in one day only one # will work.. Which one

Averaging into traders is another way to loose......

Okay, 15th beer sparked a thought to follow up with. As I've said before, this ain't anything NEW (and is on the opposite end of rocket science, or even kindergarten) ... and is offered out on different websites and different services ad infinitum (ad nauseaum?).

But I prefer to draw my own (kinda like old fashioned hand drawn charting)... it helps keep me in touch with the market, and "feel" it and comes out of my own experience at how I see things. And it works for me.

Different folks may find different price action S/R levels. And if that works for them, then cool. I'm simply presenting my experience of this old and most basic, yet discretionary/reading of prior market movement to slap down the lines which MAP future price action.

Very interesting post, and a valid post that aims at all these trading room guru's.

Reading this, only makes me confident and close to finalizing the trade room that I will stay with for the long haul.
"MassiveCashTeam"

I am new to trading the es.
Can you tell me any trading rooms to look at and any not to waste time with? Which trading room are you using?

Thank you.
Eddie