Best of the Best

[Tradewinds 12]

When I read a really good post, I wish that all the best posts were put together into one place. I'd like to suggest standards for what a really good post is:

 

• Another person's post. Not your own.
  
• Something you would like to have memorized.
  
• Something you would consider printing out as a personal reminder.
  
• Something that could have saved you a lot of trouble.
  
• Something you now know for certain, and have seen countless times.
  
• Something that you think is fundamentally critical to know.
  

 

If you see a great post made by someone else, and it meets the above standards, re-post it here with the appropriate reference. Please don't post your own comments. Only quote posts from other people, and make sure their username is in the quote. If we are referencing other people, that gives more legitimacy to the post. Recognizing another person's contribution will hopefully make the thread 5 star quality. The goal is to have the best of the best advice and information for a real quality thread. The subjects don't need to be related except by quality of the information.

[Tradewinds 12]

You should only stop trading if you are making mistakes.

There are only 4 trading mistakes:

1 Getting in when you were not supposed to.

2. Getting out when you were not supposed to.

3. Staying in longer than you were supposed

4. not getting in when you were supposed to

It doesn't matter if you make or lose money when you commit one of the above 4.

 

Losses from trading are not mistakes; they are part of the game.

 

You shouldn't be thinking about your wins and losses when you are trading. If your set up appears, take it as if it were the first trade of the day. If you are affected by wins and losses, your mind is not yet where it should be to trade.

 

Post #20

http://www.traderslaboratory.com/forums/62/daily-stop-loss-profit-targets-3024-2.html

[Tradewinds 12]

>It doesn't matter if you make or lose money when you commit one of the above 4.

 

not understand the above,

and the inability to discern the difference between lucky win from true win,

will eventually separate the wannabies from the long term survivors.

 

Post #21 In response to MM's post.

http://www.traderslaboratory.com/forums/62/daily-stop-loss-profit-targets-3024-3.html

[Tradewinds 12]

You are right about volume analysis - it's all that really matters. After all it is volume that motivates price - Price doesn't motivate price and the passage of time does not motivate price, it is the occurrence of trade (buying and selling) that motivates price.

 

Knowing that it is not the passage of time but rather the occurrence of buying and selling that drives price makes one wonder why anybody would ever base their trade on indicators with price as the prime input (EMA, Bollinger, RSI, Candlesticks, Stochastic, CCI....) and to further compound the error, apply those indicators to time constant data vessels.

 

Three decades ago I was taught that the best indicators of future price don't have price as any part of their calculation.

 

As I have mentioned I run a small PRIVATE trading and technology company and the first thing I teach our new traders is that it is buying and selling that drives price. That none of our intra-session charts are time constant charts and almost none of our indicators have price as ANY part of their calculation.

 

Post #3

 

http://www.traderslaboratory.com/forums/f34/why-market-depth-useless-indicator-5501.html