Nov
19
Video Three – Response to your replies to question 3
ByPlease make sure that you’ve watched videos 1 and 2 first. Remember to do all the action items in the videos and to post replies relating to each video in the comments section of each post.
Hi stu
Great initial videos mate, just thought I would give my two pennies worth on one aspect I would like to get a better understanding of, which is consolidation patterns. I have been looking at trading tight consolidation patterns such as flags and pennants and the like, I really think they offer great trading opportunities in trending markets. It would be awesome if you could go in to some of the idiosyncrasies of trading these patterns, I think i am missing a few minor points and my trading has not been as successful as i would like. Maybe you could show a few examples of where to trade patterns and what kind of targets would be sensible. Also outlining other technical indicators that might help me predict breakouts, such as RSI and volume. I get the general idea but i feel i am missing a few pieces of the jigsaw and have been caught out with overall market surges, I need an overall better understanding of exactly whats going before and after tight consolidation patterns and also a better understanding how other influences can effect my trades.
I know it takes a long time to “get you eye in” but if you could help at all it would be much appreciated.
Sorry for rambling a bit hope you get the general idea!
By the way what you doing is really cool, i reckon its worth a few karma points!
cheers
Jeff
Suggestions for the first Video.
Trendlines
Hi Stu
Personally I would like to see an example or two of trades you have taken eg: the entry, why you took the trade , the analysis, what indicators you used what confirmation stop loss position and then how you managed the trade if it went in your favour ie pyramiding and stop loss.
I always seem to spot trades on expensive stocks that have large moves such that the risk with a minimal bet is at times bigger than my account!
Regards
John
Video 3 comments. With regards to keeping a detailed diary I think that this is a very good idea, I am not currently trading but when I resume I will definately keep one to help me progress and improve.
Time crops up on a regular basis and it is an issue with me having a full time job, young family etc but that is something only individuals can manage and get around – there is no quick fix to this game I guess or everyone would be doing it.
I agree with John that for the first couple of videos it would be good to look at in detail trade that you have actually made recently so that you can explain everything that was involved in decideing to enter the trade from the very beginning of why you looked at the chart to the tools you used and the point at which you knew it would be good. Also perhaps you could show a trade that you entered that made you a loss pointing out what went wrong and perhaps what you missed or will do differently next time.
I stopped trading as I was having to enter trades at night on the closed market and was finding I was being stopped out with the volatile market opening swings, invariably I had identified a correct trend that would have given a profitable trade had it not been for the initial large swings. I appreciate you can phone in a trade but being a new trader my confidence was not high so I liked to look at the chart just as I was about to enter the trade as a final check. A change in company internet policy stopped me from looking at trades during the day, which I had been doing, hence reverting to night time opening of trades. I appreciate your comments about buying a laptop etc but even a cheap one would be taking a large portion of my start up trading stake.
So my request for your comments / video would be on how do we get past the initial daily volatility so that I can trade without day time access to charts.
Sorry for the amount of waffle but I thought a bit of background would help.
Stu,
Thank you for the first videos
I am trading daily, as I think that trading with a demo account doesn’t give a real idea about your behaviour in real situations. I am having good success but slower than I would like. Sometimes I make stupid mistakes and would like to create a set of rules that I could follow religiously in the knowledge there will be some losses of course. So setting up a personal rulebook might be a good discussion point I think.
On charting, I would really like to know which indicators work well and under which timeframes and situations ie trending, channelling etc. Is there a way to keep it simple?
Pat
Hi Stu
In response to your E.mail I agree that jumping straight in to trade examples is not the correct way to go. I dont even want to try and copy how you trade, of course I would like to know WHY you place a particular trade and learn from it. I also think that covering basic technical aspects such as “what is a moving average” and “what candle sticks to look out for” is not really necessary. Im sure everyone out there who is serious about trading has already coverd most of the very basics of tech analyisis. What I would find helpfull is for you to maybe begin the lessons by discussing price, after all price is what we are all interested in. I would like to hear your thoughts on price behaviour, the emotions behind the market, what is actually going on when price consolidates and when it charges up and down. Having an understanding of why price moves in the manner that it does must be a good place to start? The lesson could involove the importance of S/R, trend lines, BOE interest rates and anything else that influences the eb and flows of price within markets. I would like to take on board your unique view point on this most fundamental level. If I could fully understand why price moves like it does, in any one market, I reckon I would be bloody rich.
Cheers
Jeff
Hi Stu, I agree with some of the other comments that it would be helpful to cover some of the basics first with some short videos covering such topics as: How to identify support and resistance. Trend lines and channels.
The few basic candlestick formations. Then perhaps Bollenger bands & Fibs. Also how to use the various moving averages. Then after the basics move on to the more advanced tools and how to bring it all together.
A great program.
Regards.
Charles
I think the fact that we are techinical traders and so our main focus is on charts it is vital we know and under stand what we are looking at, Candlesticks for example hammers, dojis, shooting stars ect you need to understand what they are telling you about the market and where it might go and also how do you combine this with moving averages and other indicators that you use i feel this is the first basic you have to completly understand before you even consider trading I feel your first video should deal with this very important subject maybe you could show us a video on how you set up your charts bye for now paddy