Piter80 » Fri Oct 30, 2015 5:05 pm wrote: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?

Madmoney » Fri Oct 30, 2015 12:02 pm wrote:

Captain Jack » Fri Oct 30, 2015 2:34 pm wrote: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.

Piter80 » Sat Oct 31, 2015 2:27 am wrote:Thank You CJ.I think I know everything that I need.
All the best

simcom » 30 Oct 2015 19:26 wrote: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!

matt_32 » Sat Oct 31, 2015 4:26 am wrote:

simcom » 30 Oct 2015 19:26 wrote: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 » Sat Oct 31, 2015 12:06 pm wrote:
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 » Sat Oct 31, 2015 8:23 am wrote:

Captain Jack » Sat Oct 31, 2015 12:06 pm wrote:
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 » Sat Oct 31, 2015 12:54 pm wrote:
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 » Sat Oct 31, 2015 9:51 am wrote:

Captain Jack » Sat Oct 31, 2015 12:54 pm wrote:
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.