[joshdance]

Originally Posted by Bombardier »

Enter at the starting point of a trend whenever possible, not in the middle or toward the end.

If you're really a trend follower, shouldn't you know that this goes against the very nature of following the trend? You can't enter at the starting point of a trend if you're a trend follower, because it hasn't started yet. Trend followers are not trend starters. In fact, when a bull trend begins (and cannot be identified as a bull trend yet), trend followers will typically still be short.

Originally Posted by Bombardier »

Before you enter a trade, know when to exit.

This also goes against trend following. Long term trend traders almost always give back at least 20% of profits because they don't know when the trend will end.

[Bombardier]

Originally Posted by joshdance »

If you're really a trend follower, shouldn't you know that this goes against the very nature of following the trend? You can't enter at the starting point of a trend if you're a trend follower, because it hasn't started yet. Trend followers are not trend starters. In fact, when a bull trend begins (and cannot be identified as a bull trend yet), trend followers will typically still be short.

This also goes against trend following. Long term trend traders almost always give back at least 20% of profits because they don't know when the trend will end.

Point taken. I will stand by my stance because what you understood from my post is not what I have meant. Instead of starting a trend (regardless of the fact that a single trader is unable to initiate a trend; he would be engaging in picking tops or bottoms at the very least), I was insinuating to enter a position at the beginning stage of a new trend. You can detect reversals as soon as we shift from a pattern of higher low and higher high (uptrend) to a break of the aforementioned higher low to a pattern of lower high and lower low (downtrend). Take any chart in the 1H or 4H time frame, for example, and you surely spot the patterns I am talking about. We will never be able to know for sure how long a trend will last, but that is not the agenda either. The agenda is to trade in a way as to give us the best risk to reward ratio.

This leads me to your second critique. By knowing when to exit, I was referring to using a stop loss, or another method of limiting your risk. You enter a position after you have elaborated on the potential outcomes; most of all the maximum tolerated loss. Trend followers do give back profits which is a striking characteristic with this approach. What is of significant difference to other approaches is that they know their potential risk in advance and how much potential profit they are going to give away should the trend reverse against their position (trailing stop).

[zdo]

Thank you JoshDance
Readers, be careful of crowds that do not differentiate btwn real trend following and fake trend following...

:bakontopic:
OP, If you have to ask...
(OP, this may seem like a flippant, insincere reply. It's not... it is not necessary, although most still do, for a beginner to join the large loser crowd as part of your initiation!)

Also, peeps, if you have to sim...
(Again - although most do, it is NOT a necessity for a beginner to join the large loser crowd as part of your initiation!)

[zdo]

The optimum individual path to trading mastery is rarely through the typical, consensus, “educational” model… yet almost 100% noobs come in fully ‘conditioned’ to that concept… and, initially at least, are eager to follow that path ...

... when that fails, ...and it usually does fail quickly, ...

... the educational 'system' of the trading world has no more real interest in inducting you into the top than does the current educational 'system' of the larger society...

...

charles hugh smith-The New American Divide

[raul]

JPhillips,
What has really helped me:
1. The Opening Range
2. Using candles
3. Use a stop loss
4. Don't chase the market, usually a huge move means you need to go the other way.
5. Determine the trend and trade with the trend.
6. Learn to identify a choppy market and stay out.
7. Trade something less choppy like Soybeans. If trading futures, start with the Russell, YM or NQ. Identify best times to trade, learn when to be patient and when to act fast.
8. Demo trade but treat it as seriously as if it was real money.
9. Use a system that you like, say Moving Average crossovers, etc. the simpler the better. 10. Don't clutter your screen with more than two indicators.

[khamore1]

The best option for you will be to quit right now and don’t even dream about day trading, even if some kind of a miracle will happen and you will turn into an “expert trader” you still will lose your money, being undercapitalized is one of the biggest reason why traders lose in the stock market

My suggestion to you is to go for a nice vacation some place that you will remember and enjoy the memories for the rest of your life

If you really have the urge to depart from your money sent a check to me, believe you me at the end you will feel much better than giving it to Goldman sucks at least I will not torture you....

[flatbush]

Seems like you *can* post links here... try?

Originally Posted by bonchi07 »

I am interested in the article. Could you please send it?
Thanks

[Everettmick]

Thanks for the useful discussion.... As a beginner i'm looking to learn the direction where to look at... this discussion could guide beginners to get into the trading process!