I think stop losses should generally be set say a point under the previous support. What percentage that is depends how close you enter after there is a base of support. That comes back to picking tops and bottoms which is a subject of that other thread.
I Want to be a Trader
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Hi snsdmonkey,
I am not saying this is correct, but please consider!
I looked for and found the post regarding the 8% SWEET SPOT:
https://www.aussiestockforums.com/forums/showthread.php?t=27620&p=801036&viewfull=1#post801036
@Trembling Hand
Thank you for understanding what I meant, rather than what I writ.
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Seems to be confusion over % of capital risked and % that entry price is from initial stop price (as TH pointed out).
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If you were to move it "up a bit", could you show us where you would move it to?
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I've already learnt about losing big money
Now it's probably about placing good stops and practicing discipline, and yes I'm talking about risk to total capital as mentioned by Elder.
That's what I have done right now.
Hi snsdmonkey,
I am not saying this is correct, but please consider!
I looked for and found the post regarding the 8% SWEET SPOT:
https://www.aussiestockforums.com/forums/showthread.php?t=27620&p=801036&viewfull=1#post801036
@Trembling Hand
Thank you for understanding what I meant, rather than what I writ.
Sure I had a look, at the moment I'm just following Alexander Elder's guideline of not risking more than 2% of my capital on a trade and placing the stop right under the support and moving it up if required. But I'm happy to test other things too, that's where the fun is, isn't it?
Sure! I'll have it up later tonight!
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Here is where I also thought it could be which would make the trade worse given that the channel is a lot more narrow. Also it didn't make sense to me because the SP seems to have clearly punched through the 'support' twice.
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CanOz
Home runs feel good, but base hits pay bills!
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Thanks, I think I understand.
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BHP got hit @$38.00 (just a quick update before I elaborate on the trade more soon)
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Trembling Hand
Can be found on the bid
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I wouldn't bother....
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What would be more helpful, ... ?
I don't have a head for VSA or EW
I certainly don't want to spend 10,000 hours becoming an expert at anything.
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I've wasted years looking at charts, trading 'levels', 'support/resistance', 'patterns' etc etc.
I'm convinced that answer to real profitable trading (as opposed to punting and sometimes getting lucky) lies somewhere else.
Something that is never discussed out of the fear of letting 'cats out of bags'.
(nothing to do with DOM /t+s / Charts etc etc)
I'm sure It's out there though, Mulder....
I'm convinced that answer to real profitable trading (as opposed to punting and sometimes getting lucky) lies somewhere else.
Something that is never discussed out of the fear of letting 'cats out of bags'.
(nothing to do with DOM /t+s / Charts etc etc)
I'm sure It's out there though, Mulder....
CanOz
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You're right, its called....
Insider Trading
that would be even better
But I think there's something available to those not privvy to insder info, that isn't discussed.
Maybe John1 (a fellow aussie, begins posting at around post no. 66 i think) alludes to it in this thread:
http://www.trade2win.com/boards/home-trader/72058-trading-without-charts-9.html
CanOz
Home runs feel good, but base hits pay bills!
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that would be even better
But I think there's something available to those not privvy to insder info, that isn't discussed.
Maybe John1 (a fellow aussie, begins posting at around post no. 66 i think) alludes to it in this thread:
http://www.trade2win.com/boards/home-trader/72058-trading-without-charts-9.html
lol...he sounds like Rambo...could very well be too as from what i know of him he didn't use charts either. He's an ex-Chicago pit trader that did well trading the SPI electronically, from far north QLD.
I agree with most of what he says, although even the prop guys glance at a chart. Its just a way of visualizing the past price action...If you're not reading a chart then you're reading either a time and sales, or a DOM. Otherwise you might just as well be burning your money ... lol...
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that would be even better
But I think there's something available to those not privvy to insder info, that isn't discussed.
Maybe John1 (a fellow aussie, begins posting at around post no. 66 i think) alludes to it in this thread:
http://www.trade2win.com/boards/home-trader/72058-trading-without-charts-9.html
He's not referring to insider trading, he is referring to trading being a zero-sum game and to win you need to have a loser on the other side of your trade.
Rather then just taking a trade because it is an obvious looking head and shoulders pattern or something, you need to think who could be on the other side of this trade and why? Until you are able to establish some type of idea of who could be some of the most likely participants on the end of your trade and why when you take it, trading profitably long term will be unlikely in my opinion. Look up game theory
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