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  1. #1
    Senior Member vulgartrendkill's Avatar

    Candlestick watching, Patience and the quest to Profit-Vulgartrendkill's Diary !!!

    Hi All.

    Thought I'd start a diary of my trading journey, with a little bit of description of what I've done so far in my quest to profit, as well as my strategies and methods as well as my failings.

    When I first started to learn, it was all indicators, indicators, indicators. RSI this, Stocastic that, Overbought, Oversold etc etc. I started comparing Moving Averages and Stocastic crossovers. I would have a good run of say 6 wins 2 losses and another 5 wins.

    Of course with these wins comes a hunger for more, and I must have forgotten about the systems and just gone on a gut feeling and it just took a dive. My demo account went from 10k to 3k in a matter of 2 weeks as I tried to figure out what I was doing wrong, trying different techniques etc.

    Then I realised that I was reading the indicators and not the charts. The indicators are a derivative of the charts and so, are more important to understand. So recently, I have stripped back most of these indicators and am learning price action properly!

    Thank you for reading, and I will try to keep this updated.

  2. #2
    Master Member SeasaltMcFish's Avatar
    Good move!

    It's part of the learning process to read the charts. Indicators can be a help, but understanding price action will make you understand the charts.

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  4. #3
    Senior Member vulgartrendkill's Avatar
    It was a Aha! Moment I must admit. It was like looking at the charts through frosted glass.

    Anyway, this now presents me with another problem. There are so many approaches to price action reading that its hard to decide which is best for me.

  5. #4
    Master Member SeasaltMcFish's Avatar
    Not easy to say, since everyone has his own approach, I guess.

    However, there are some traders here that are trading price action, so maybe they will respond to your question.
    I learned reading the charts by simply trying to understand what's happening on the charts.

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  7. #5
    Senior Member vulgartrendkill's Avatar
    I'm starting by setting up S and R lines informed greatly by among others, our own Okane via the youtube tutorials. Thing is, I dont see "Price Action" as "Naked Trading". its just a case of understanding what the candles are doing and general market feelings. If I can use indicators as confirmation, then great, but I want to understand what is beneath the indicators!

    Onwards and upwards. Every day is a school day!
    Last edited by vulgartrendkill; 04-21-2016 at 10:29 AM.

  8. #6
    Legendry Member Okane's Avatar
    Quote Originally Posted by vulgartrendkill View Post
    I'm starting by setting up S and R lines informed greatly by among others, our own Okane via the youtube tutorials. Thing is, I dont see "Price Action" as "Naked Trading". its just a case of understanding what the candles are doing and general market feelings. If I can use indicators as confirmation, then great, but I want to understand what is beneath the indicators!

    Onwards and upwards. Every day is a school day!
    Hey, glad you opened a diary here!
    If you keep looking in our youtube channel, I did make
    a video about price action and that's exactly what I say too.
    Using an indie or two is ok but only if you understand reading the charts first
    THEN confirming what you concluded with indies.

    I will give you some links to videos you should watch

    (you might have seen some already?)

    https://www.youtube.com/watch?v=1LpriJFelmQ Why and how to keep a diary.

    https://www.youtube.com/watch?v=EnMHff1SV0M drawing trendlines and finding trending patterns

    https://www.youtube.com/watch?v=UT0XNSZDXvA what's price action and how to learn

    https://www.youtube.com/watch?v=PQGASp6Qsm4 On moving averages

    https://www.youtube.com/watch?v=hcrPQWhrJ6w Example of how what I base my trades on.
    Live Webinar: Hidden Content
    Join My Skype Group: Hidden Content

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  10. #7
    Senior Member vulgartrendkill's Avatar
    Thanks Okane, very helpful.

    At the moment I'm still losing even when using trendlines etc because i'm choosing the wrong direction, because I am reading the charts wrong. I realise nothing is a silver bullet and 100 percent accurate but I want to get into the 75 to 80 percent range consistently before diving (again) into live trading.

  11. #8
    Master Member SeasaltMcFish's Avatar
    I think that is not realistic. You don't need 75-80% consistently.

    Even the best traders have trouble getting that percentage long term.

    Normally you can be satisfied when having a steady ITM% of about 65-67% and you'll need about 56% for break even.

    The rest is a matter of money management, not the 'system'.

    Trading live gives you the opportunity to make mistakes and learn and yes, they may cost you money. However, if you use a very safe money management of 1% per trade of your account, it's simply learning money. Trading in demo can teach you a lot (nothing wrong with practice in demo!), but it will not put the pressure and stress on you to only take the quality setups.

    Take time to learn and don't be too afraid to lose some trades in the beginning. Learn and you'll turn the tide.

  12. #9
    Senior Member vulgartrendkill's Avatar
    Thats my main worry, that i`m not finding (or have the patience to wait for) " proper" setups. I`m trying to get better at that.

  13. #10
    Master Member SeasaltMcFish's Avatar
    Try understanding candlesticks first.

    A CS is just a small picture of a lower time frame action. So if a CS has a long wick, you could ask yourself if there's a reversal coming. By studying the upper and lower charts, you can see if there's a big S/R present, if there's a Fibonacci level that's interesting, if there's a SMA/EMA that could be interesting etc...

    F.i.: if there's a Fibo level reached and it's supported by a SMA, it could be of interest. Same with a Fibo retrace and a support line.

    By connecting these signals, you can find at least a decent chance to get a solid entry. Study some more and you'll see.

    GL!

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