The Captains Chest - Naked Trading & Other Stuff

[Captain Jack]

Thank You CJ for Your help and patience,
I have one more question,
What with very big pins?Treat them as a new PH or not to pay any attention?

Ignore those...

-CJ-

[Captain Jack]

It is what it is... quit trying to make it something else...

-CJ-

Thanks again for your patience CJ.

I'm not the sharpest tool in the shed, but if I can get the rhythm of market anybody can. As it's been reiterated before, take this knowledge and apply it to your own style of trading.

Absolutely killing it today.

Well done and congratulation!

-Cj-

[Piter80]

Thank You CJ.I think I know everything that I need.
All the best

[Captain Jack]

Thank You CJ.I think I know everything that I need.
All the best

When it comes to marking your charts, do it in a way that best allows you to see the cycle.
Good luck!

-CJ-

[matt_32]

I've been doing quite well trading the levels so far on a demo account, thanks to CJ, sympathy and all of the others here who've generously given their time and effort to help others.

One thing I've noticed though is that I've fallen into a bad habit (at least so far as conventional trading wisdom goes), which is 'averaging down'.

I find that when I'm confident in my level count and trying to enter at a peak high/low in the pins, sometimes when I end up being wrong about the precise reversal timing I hold my trades into drawdown instead of closing them for a small loss. I then continue re-entering the market, stacking trades in the forming pins that I believe are about to reverse. This is effectively 'averaging a loser' which I know many people say is the death of novice traders.

However, it's worked to great effect for me so far as I've ended up being right about the imminent reversal but just slightly off on the timing. I know that with real money on the line I am probably going to want to cut my losses sooner though.

I should say that I don't just blindly average down every drawdown trade I have; it's only when I'm confident in my level count and I can see the reversal structure in formation.

Does anybody else do this or is it better in the long-run just to cut losers and re-enter later? I know that CJ said on the FF thread that he sometimes stacks entries at a more favourable price if he gets a slight move against him, but then again he's much better at reading the patterns than I am!

I have the exact same issue, but I am working on my precision. Mind you that trading like you, ended up badly for me a couple of times since price did not reverse in time thus causing margin calls.

be carefull

Matt

[Captain Jack]

I've been doing quite well trading the levels so far on a demo account, thanks to CJ, sympathy and all of the others here who've generously given their time and effort to help others.

One thing I've noticed though is that I've fallen into a bad habit (at least so far as conventional trading wisdom goes), which is 'averaging down'.

I find that when I'm confident in my level count and trying to enter at a peak high/low in the pins, sometimes when I end up being wrong about the precise reversal timing I hold my trades into drawdown instead of closing them for a small loss. I then continue re-entering the market, stacking trades in the forming pins that I believe are about to reverse. This is effectively 'averaging a loser' which I know many people say is the death of novice traders.

However, it's worked to great effect for me so far as I've ended up being right about the imminent reversal but just slightly off on the timing. I know that with real money on the line I am probably going to want to cut my losses sooner though.

I should say that I don't just blindly average down every drawdown trade I have; it's only when I'm confident in my level count and I can see the reversal structure in formation.

Does anybody else do this or is it better in the long-run just to cut losers and re-enter later? I know that CJ said on the FF thread that he sometimes stacks entries at a more favourable price if he gets a slight move against him, but then again he's much better at reading the patterns than I am!

I have the exact same issue, but I am working on my precision. Mind you that trading like you, ended up badly for me a couple of times since price did not reverse in time thus causing margin calls.

be carefull

Matt

I say it over and over again...people lose their accounts by over trading an underfunded account. Your money is your ammo in this war.... tie it up in margin, on the wrong battle and you have lost the war, not just that skirmish. When you make a mistake... ADMIT IT TO YOURSELF and close it. Save your money for when you have made to correct call, and then use your ammo to best leverage the outcome...

-CJ-

[simcom]

I say it over and over again...people lose their accounts by over trading an underfunded account. Your money is your ammo in this war.... tie it up in margin, on the wrong battle and you have lost the war, not just that skirmish. When you make a mistake... ADMIT IT TO YOURSELF and close it. Save your money for when you have made to correct call, and then use your ammo to best leverage the outcome...

-CJ-

Ok, thanks for your reply CJ.

At the moment my risk per trade is very small compared to my account size, but I think you're right about needing to be efficient in closing losing trades as soon as I realise that I've made a wrong call. Just need to keep building my discipline on demo now.

[Captain Jack]

I say it over and over again...people lose their accounts by over trading an underfunded account. Your money is your ammo in this war.... tie it up in margin, on the wrong battle and you have lost the war, not just that skirmish. When you make a mistake... ADMIT IT TO YOURSELF and close it. Save your money for when you have made to correct call, and then use your ammo to best leverage the outcome...

-CJ-

Ok, thanks for your reply CJ.

At the moment my risk per trade is very small compared to my account size, but I think you're right about needing to be efficient in closing losing trades as soon as I realise that I've made a wrong call. Just need to keep building my discipline on demo now.

Orders are meant to be stacked when the trade is already moving in your intended direction, not in the opposite direction or while it has yet to begin it's move.

-CJ-

[simcom]

Orders are meant to be stacked when the trade is already moving in your intended direction, not in the opposite direction or while it has yet to begin it's move.

-CJ-

Yes - I think I'd become so caught up with the idea of aggressively stacking trades that I started to forget the basic principles. I noticed in one of your posts on the FF thread that you had limit orders in place ready to hop on a reversal but I think I misinterpreted these as being stacking when it was still moving against you, as opposed to the actual purpose which is getting your anchor trade on at the reversal point (then only stacking after that as it moves with you).

Thanks again for all of your help - appreciated.

[Captain Jack]

Orders are meant to be stacked when the trade is already moving in your intended direction, not in the opposite direction or while it has yet to begin it's move.

-CJ-

Yes - I think I'd become so caught up with the idea of aggressively stacking trades that I started to forget the basic principles. I noticed in one of your posts on the FF thread that you had limit orders in place ready to hop on a reversal but I think I misinterpreted these as being stacking when it was still moving against you, as opposed to the actual purpose which is getting your anchor trade on at the reversal point (then only stacking after that as it moves with you).

Thanks again for all of your help - appreciated.

If you understand how the script works that I use in fast moving markets, then you would understand those pending orders.

My script fires out a set number of pendings, but it also fires out an order, behind me. That way, should the MM or those who move price, decide to double dip and go back to accumulate more orders, my pending order will also fill and accumulate more orders for me. Most times, when price trips your stops, and closes your trade for a loss, the trader looks elsewhere for his next trade. In essence, this is what they want you to do, because you have chosen the correct trade and they want you out of it. After you are stopped by a reversal in price, they reverse again and now blow right past your original trade entry zone. The backup order, if triggered will more than cover any SL losses in my orders should they pull this move.

-CJ-