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Old 08-22-2007, 08:24 AM
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Re: Finding Basic Setups For Discretionary Trading

Hi timokrates,

My style of trading at the moment has become more and more discretionary reading purely order flow off tape, level 2, and candlestick spreads relative to volume. By no means is this style something that can be taught 100%. I think each trader needs to really develop a branded style of their own. This is the key to success. In the beginning we end up following another traders style we learned from. I am pretty hard headed when it comes to alot of things in life including trading. This is the reason why I believe personally that price action through volume and tape is the only way to make money when trading discretionary. Obviously this is not the case, but I can not seem to profit when applying any other methodology. Even candlestick patterns are hard for me to apply in trading. I am pretty confident in understanding order flow and betting on future price movements of up to 1-30 minutes. But, I am probably the last person you want to ask for market direction when swing trading. (longer timeframe) I have no clue. No matter what technicals tell me, I understand that fundamentals can throw a counter blow easily. Therefore my edge lies in extremely short term trading.

Work hard on finding your style and being extremely good at it. You should start seeing things that most traders do not see or find patterns which you can profit from. Also it is important to act when opportunities come. You might see a profitable pattern over and over again and pat yourself on your back. However, just observing it and recognizing when it occurs is not going to make you a trader. Good luck.

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