Ingot54 wrote:I'd just like to add that when trading, we will all look to anything that will give us assistance.
In the past it was indicators. And now, we are disciples of Naked Trading.
But there is always the grey area ... and always black and white.
When I asked the question above about the Global Trend Indicator, I didn't hesitate to want to find out more. How far should we go with this? We could put so many things on charts that can help, but for each item added, we lose a little more, because there is just one more object to focus on rather than price.
It's not quite that clear, I know - because not everything is a distraction from price. Personally I still use (and probably will always) the Weekly Pivots. It's NOT because I take my entry or exit from them, in any way. It's simply a "heads-up" to myself to be wary of getting in to moves around those places, because price does tend to consolidate, pause, reverse at those kinds of levels.
Pure Naked Trading does not require any of this - volume, trend analysis, pivots and even trend lines.
So how far can we go in using "aids' to prop up our view of what the market is doing, and how much does the market maker depend on us continuing to use these kinds of tools?
Are they a fatal distraction?
I have a feeling that the influence is so subtle, that, like a magnet, we soon get drawn back to following the squiggly lines, instead of actually following price itself. I'm sure I don't want that ... though I still struggle with NT in its pure form.
Thoughts?
First, here's what I refer to for a volatility gauge (thanks Baluda). Comparing the volatility around the first of June to now reveals a BIG difference. To Pedigree's point, the currency movements in relation to one another has decreased significantly. This doesn't make trading any easier. This is perhaps what traders more experienced than I refer to as the doldrums. Being the novice that I am I can't say that this is the same or any different than any other year. Others here much more experienced can properly speak to that issue. I can only say that I see fewer good setups than I did back around the first of the summer.
Second, as I have stated before, I have traded equities and options for a long while but have only traded FX for about 8 months. To me it's like any other endeavor; what is the objective measure of success. I believe that is measured in pips (or dollars, or euros, or yen; whatever you fund your account with). If after measuring your result you have gained enough pips that you consider it a success then the tools you use to trade are effective. That can be with all the indicators in the world or none.
I have tried it all and have deep respect for everyone that trades FX with success regardless of their tools. As I have also said before, after trying it all NT makes the most sense to me and has been the most effective for me. I've been back and forth and in my early days would add "just one indicator" that I thought would give me an edge. The next day I would add another and so on until I (once again) had the chart full. Each time I would come back to NT.
Now NT is all that I trade and I find that the longer I go the better I get at finding good setups and really understanding the PA. I do use a volume indicator and a spread indicator. I find these come in handy at key levels and help gauge price reaction to those levels. In simple terms I believe this would be looking for the fox to tip his/her hand on his/her intentions.
I believe that everyone should trade using anything they can to achieve objective measures of success. For me that is NT. And it is not easy, it just looks easy. I have to, in my mind, reinforce certain beliefs everyday. I have to remind myself that I know certain things when I watch the PA, mostly things I learned on the thread for some great traders (thanks again). I am sticking with NT, the charts I post on this thread are exactly as I trade them, nothing else added.
By now I'm sure everyone wishes that I would stop writing, but I have to say one more thing. I have said this before and I will say it again. I believe that looking across the time frames confuses many. In a three day up move on the daily chart there can be several up and down moves on the 15min with good pips to be had. It is easy to get confused. I have to slap my wrist from time to time and remind myself to stay focused; keep things in perspective. I see examples of this every day and it is still challenging for me, but I believe this to be a key to successful NT.
Wishing all a nice evening/morning/day/night....
Ray |
