Where financial traders gather
The infographic below shows a big fish on the hook. Well, big fish are probably harder to reel in but they’ll supply more protein – innit?!! They’ll compensate for most of the losses on small fish thrown back or lost. Yes, my line may be snapped – no problem – cuz I know there are ...
The answer to this question is ‘no’ – if you’ve been trained in some system of rules, which you’re meant to follow rigidly. The beauty of trend-following methods, is that it allows for a degree of common sense. Indicators are there to help paint a picture. Trend followers are not chained by indicators or rules. ...
Nobody likes to lose – I can safely say. It’s been hardwired in us as part of the survival instinct, that we need to win. Financial trading is a very different ‘game’. You have to expect to lose, in order to win. This is not to say that we have to like losing. Instead we ...
Important in trend-following is to know your time frame and which trend you’re following. It’s easy to forget. Sometimes a trader may start off on a 4H time frame and then see and opportunity on a 1D time frame. The initial acceptable loss (the stop-loss) would have been determined on the 4H. Switching to a ...
The chart below shows an ideal situation. In this example the trend was entered quite late. Caution: ideal does not mean representative of all trades. To learn more study the chart, where it is accepted that a very high percentage of setups will fail/lose. This is a game about losing but it’s not for losers! ...
The nature of what ‘prediction’ means came up a couple days ago, in one of my online discussions. The words that caused me to look into this were, “What’s harder to predict? 1 pip movement or 1000 pip movement?” – in the course an exchange of ideas on different methods. This question was partly rhetorical and somewhat argumentative (not that ...
Trend following trades are worlds apart from the usual trading you’d find out there on the net. This is about the big money. The big boys do this cuz they want the big money! They’re not interested in jumping in and out of markets with a few harmonic trades here and there. They want the ...
This is my latest analysis on EURUSD. This is based on combining a number of indicators to find a probability estimate of where the trend may go. In this analysis a trend is identified. No prediction is made. A strategy for entry and following of the trend is worked out. Probability estimates based on standard ...
The following thoughts came to me in the middle of the night. The natural human tendency when we see a pattern is to predict/expect what may happen next. This is a powerful ‘unconscious’ urge. Markets are chaos. We may see patterns in the chaos. All chaotic systems form patterns. The patterns are meaningless to the ...
Trend following is where the money really is! Why? Because you’re not bobbing in and out of the markets trying to catch a few quid. Instead you’re finding established trends to ride for quite a long way. There are several ways to catch trends. See: Trading with Guppy and Revisiting the Williams Vix Fix . The technique ...
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