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I Want to be a Trader

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.
 
Seems to be confusion over % of capital risked and % that entry price is from initial stop price (as TH pointed out).
 

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.


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?

If you were to move it "up a bit", could you show us where you would move it to?

Sure! I'll have it up later tonight!
 
If you were to move it "up a bit", could you show us where you would move it to?

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.

 
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.

View attachment 56785

Maybe its a wedge
 

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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....
 

You're right, its called....


Insider Trading
 

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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...
 

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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