[thalestrader]

Originally Posted by Gabe2004 »

Pick you pick

Gabe

I picked.

Thank you,

Thales

[thalestrader]

Weekend Reading

Hi Folks,

I was thrown off my game a bit this week so I'm both late and light on this week's weekend reading edition.

Here I have attached an interview with Linda Raschke entitled "The Rituals of Trading," from Active Trader Magazine's August 2000 issue.

I would also recommend along with this interview, that you all dust off your copy of Market Wizards and read the Mark Weinstein and Tom Baldwin interviews in Market Wizards and Raschke's interview in New Market Wizards. If you do not have these two books, get them.

You can find Linda Raschke's New Market Wizard interview on page 113 at this link:

http://www.beursplaza.com/ebook7.pdf

and you can access a download link to Market Wizards for the Wienstein and Baldwin interviews at this link:

4shared.com - free file sharing and storage - download

Now, here is what you should be monitoring your reactions for: If you read these interviews and think to yourself, "No flippin' way! These folks are full of it! No way anyone can do that!" then hang it up. You're never going to eb a winner - not at this game, at any rate. You will never do as well at this game as you should. Howeevr, if instead your reaction is, "Yes! That's it! That's where I want to be!" then let's get to it!

After all, if you do not believe others can do it, then on what basis do you believe that you can?

Best Wishes,

Thales

[forrestang]

Lately, I've been feeling better about trade management, and have begun to stop fretting over the possible future outcome of each of my trades. I think this is due to a conversation in this thread.

Since the inception of this thread, I have kept a word document with a lot of the finer points from things in this thread from various posters. I would post this document, but it would take a bit of organizing so that it is really coherent to a reader other than myself. Eventually I will get this organized and posted.

But for now, here is an exert that I have taken from my document and put into a pdf. This exchange right here shown in the pdf has at least temporarily completely changed my trading for what seems to be the better, at least temporarily. As mentioned above, at the very least it has allowed me to focus on not worrying about every trade being a winner, because I am at least a bit confident that I have a pretty solid way of management.

I have only pasted one example in here. But that example is one of the few scenarios I see over and over.

These scenarios are basically:
1.) Price stops you in and immediately moves in your favor by a lot or a little.
2.) Price stops you in, and either moves a tic or two before retracing on you
3.) And of course, anything in between or possibly even some 'V' type behavior (rare case)

This example is focusing on #2.

[thalestrader]

Originally Posted by forrestang »

These scenarios are basically:
1.) Price stops you in and immediately moves in your favor by a lot or a little.
2.) Price stops you in, and either moves a tic or two before retracing on you
3.) And of course, anything in between or possibly even some 'V' type behavior (rare case)

This example is focusing on #2.

If you find yourself frequently being stopped out to the tick, you should have a re-entry plan. Also, if you find yourself frequently being stopped out by a tick, you might need to consider a 2 tick range chart, especially if volatility continues to expand.

Best Wishes,

Thales

[forrestang]

Originally Posted by patrader »

15m ES chart(lite blue support line from daily chart 1067.00)

Pa,
What is your view of using RTH vs. AH for looking at larger trends?

For example I usually draw tcls and tls on my 60 minute NQ chart, do you find that the RTH chart puts something into perspective that the 24hour chart does not?

[patrader]

Originally Posted by forrestang »

Pa,
What is your view of using RTH vs. AH for looking at larger trends?

For example I usually draw tcls and tls on my 60 minute NQ chart, do you find that the RTH chart puts something into perspective that the 24hour chart does not?

Actually i find using globex gives me a better perspective on all timeframes.Sometimes price makes a LL or HH in afterhours and i want to have them on my charts to draw my wedges and for S/R levels.On the15m chart i will sometimes switch to a rth chart for a quick comparison and to see a little further back in time without having to bunch up the bars too much.HTH

[forrestang]

Originally Posted by thalestrader »

If you find yourself frequently being stopped out to the tick, you should have a re-entry plan. Also, if you find yourself frequently being stopped out by a tick, you might need to consider a 2 tick range chart, especially if volatility continues to expand.

Best Wishes,

Thales

The idea should still hold all the same right, no matter what bar interval one uses to manage the initial pa after entering, in that we're just monitoring the micro swings develop? That if we buy, and we are barely stopped in before it moves against us, a LH should make us a bit cautious about letting our initial stop be exercised?

Do you think volatility would change anything in this regard?

[Mr_black]

Originally Posted by Marko23 »

Perhaps I should underline this: I do not critizise the MA on your chart. But the obvious success of your efforts comes from your understanding of price action, not from picking the right moveing average.

Please excuse any irritation my comments may have caused.

MA's are like a mirror with delayed reflection for PA