Comment by Lisa on February 28, 2013 at 3:33pm

We must always keep in mind who is on the other side of our trade.

If we take these corrective type trades (on the BUY side), ...

the big money is on the other side of our trade and we’re trading against *their* flow ...

*with* the uninformed traders that aren’t assessing the sentiment of the true order flow.

The money that is moving the markets had / has *said* to us that they are / were SELLing.

They allowed this corrective BUYing because ...

that is the money they are taking-out of the market.

Those that were BUYing were on the "wrong" side of the sentiment ...

and that is the money being transferred from the losing accounts ...

to the accounts of those that make consistent profits.

SELLing today, who was on the other side of the SELL trade ?

The uniformed, non-directional traders.

Who do you want to be trading *with* & who do you want on the other side of your trade ?

This is the question we need to ask ourselves when taking a trade.

Those that move the markets allow large corrections because the more (traders) that enter

against the sentiment, the more they are accumulating profits from the accounts of those that

are on the other side of their trade ...

on the other side of the trades that have the money to move the market.

~~~~~~~~~~~~~~~~~~~~~~

~~~~~~~~~~~~~~~~~~~~~~

Are you really trading your capital responsibly taking trades in the BUY direction ...

of this order flow ?

Multiple trades against the order flow only benefits the brokers ...

and taking trades against the institutions moving the market is only transferring the capital

from your account into theirs.

You can see those still trying to BUY against the order flow, above (?) 

yes ~ this is how the markets work, but the constant question asked is why 90% are losing ?

This is why.

90% aren’t reading the sentiment for the day and are trading *willy-nilly*

Not asking themselves, “who is on the other side of my trade.”

Those that have the money to move the price are extremely patient.

They will often allow the uniformed to retrace the market a substantial amount

before they come in, and in this case, push the pair back down ...

and take all that profit off the table.

We have to be as patient as they are.

We want to trade with them.

(they & them referring to the institutions, the fortresses than move price)

Comment by Lisa on February 28, 2013 at 3:36pm

Upon the BEAR cross I’ve been finding the ATR & mapping it out on my chart ...

judging the volatility & managing the trade :

We’re trading below the lows of the day and in 5 hours have moved twice ATR .  

(based on the 1-hour timeframe) 80% of the Daily ATR at this time / screen capture :

Comment by miro on February 28, 2013 at 3:41pm

hi lisa ,i like your comment br

Comment by Lisa on February 28, 2013 at 3:59pm

thank-you miro  (✿◠‿◠) ‏

Comment by Peter jcp on February 28, 2013 at 5:33pm

Hi Lisa - a quick question - could you post your latest 1 hr EU chart as of now again if possible - ie 5.30pm UK time and 12.30pm NY and any chance of you making it larger as I cannot blow up enough to read price and time - Thanks Lisa - regards Peter

Comment by Lisa on February 28, 2013 at 8:10pm

Lets take a look at the correction that occurred during the lunch hour of NY ...

and London close :

~~~~~~~~~~~~~~~~~~~~

~~~~~~~~~~~~~~~~~~~~

Now lets look at the price action on the 1 minute timeframe for the given period of time

(3 hours of correction) :

The reason the sideways drift is difficult to trade is that there is no rhyme or reason to it.

It’s simply separate orders in the market i.e separate individuals placing orders ...

that have no baring on market direction.

It’s guessing at best and burning-up your capital at worst.

Mark Douglas asks, how good are you at reading others peoples minds ?

Probably not very good, especially when you consider it’s the minds of people all over the world

behind computer screens that you can’t even see.

Trying to time irrationality is not a good idea.

The trend may change direction, but let the money / order flow tell you when.

Don’t try to be a mind reader, trade with the path of least resistance.

Is this big enough for you to see, Peter ? :

Comment by Lisa on February 28, 2013 at 8:27pm

I assessed upon the BEAR cross on the 1-hour timeframe the Daily ATR was 112 *pips*

We’ve completed 109 from high to low currently :

Have a good night everyone ~ talk at*cha later Ƹ̵̡Ӝ̵̨̄Ʒ

Comment by Peter jcp on February 28, 2013 at 11:58pm

Hi Lisa - thank you - that large one hr blow up nicely and time and price was not blurred as with the other smaller charts. Right where do i start again ;-)) 

1. Mark Douglas - yes well know author - but what's 1000's of people minds got to do with trading lol - Trading is not controlled by the thousands or the millions of traders all taking different decisions - it all in the hands of a few with the big bucks - and generally they have a common theme - to mislead and set you up the wrong way - as they want your money. 

2, I am glad you showed a one min chart - as it shows a trade with a RR of 6 half way through it.

Can I just repeat that RR of 6 - ie 2 % of capital would have become 12% within 33 pips ;-))

I appreciate with yourself you have said I dont want to be stuck at my charts all day etc etc - funny enough I dont - normally actual time trading is under 3 hrs and normally I might cover a 8 hr day - but have gaps of 30 -90 mins when I am out or doing other house jobs

3. I think the hour frame is OK for you - and if it is giving you good results with RR's over say 2 or 3 per trade - that's good enough for sure.

4, Can I mention a little exercise for you to do - on any pair any day of the week - although a busy day is better. Note when you see a daily top or a daily bottom - and it reverses say 70 - 120 -300 pips - ask yourself - WHY?? 

It was in a trend and as you keep saying the trend is your friend until it bends or it ends. Well every trend whether just 5 pips or 500 pips ends at a point and its time to dump and go the other way.

The hr cross costs you between 30 -50 pips on every main trend - and normally 2-5 hrs wasted.

That in a week on one pair with 2 moves a day is say 60 pips x  5 - 300 pips and at least 20 hrs wasted energy and normally one of the moves will be in your key time ?

As a "fly lady" you need to tune up and see how you can improve efficiency and earning time - then you can write your own book - ie the 3 F's - Fly Female Forexer's ;-))

First day of the new month and a "fun " Friday 

Have a good one 

Regards 

Peter

Comment by Lisa on March 1, 2013 at 3:24am

Hey ~ good late evening, Peter …

my favorite heckler ~ you’ve had a busy day !

1.) Clearing you didn’t understand what I was addressing, which is ...

the myriad of traders that place orders at random during non-directional drift.

You are correct, in that, these traders do not control the market.

They place orders counter to the institutions during low volume times ...

trying to pick-up nickels in front of the steam roller that’s idling, waiting to *squish* them.

2.) Risk / Reward alone won’t bring the results we need.

We have to take advantage of those times when a pair keeps going-up & up & up.

(or down & down & down) letting those big winners run.

I won’t risk 2% on 5 *pips*.

Say on $10,000.00 that’s $1,000.00 loss ...

if the market moves against my position by just 5 *pips*.

~ No way ~ somebody out there could accidentally hit the wrong button on their platform,

move the market by 5 *pips* and my 2% is gone in a NY minute or second.

I don’t believe that’s a wise use of capital, in my humble onion.

3.) I prefer the Daily the timeframe and it’s always my anchor for all my trades, but ...

the 1-hour, for me, is not to hot & not too cold, but just right.

4.) You’re speaking of market reversals ~ yes

and “WHY” ~ because there are more BUYers than SELLers or vise versa (?)

I don’t waste any hours (well, hardly) ~ time is the most precious commodity.

I think it’s a waste of it sitting at my computer staring at ticks, throwing my capital into the

market over & over again trying not to die a death of a thousand cuts ~ ehhhh.   ٩(×̯×)۶

The best thing to do, the way I see it, to ultimatly reduce risk is take fewer trades

and maximize winners.

Every enter is the most dangerous risk to your capital.

Once you’ve entered and you're out of the danger zone, let 'er run.

Taking your capital out of the market on a winning position, just to turn around

and expose it to new risk is taking the biggest risk on your capital.

throw away losers & hold onto winners.

The other efficiency to trend trading is the ability to diversify, and not spending time on a pair

that simply isn’t trading on a particular day, because that changes from day to day.

Like the JPYs were trading *wild* on Monday and today not so much.

Today’s range on the EUR/USD was 109 *pips* (?) ATR had been 112, ...

hit SUPPORT and now we’re looking at BUYers here.

I am more cautious with my trends when I see these levels.

I've closed-out for the day anyhow :

I have made my charts larger upon your request.

I know, I’m not seeing very well at night anymore to drive.

I stopped by the grocery store tonight & the girls working didn’t want to help me out.

Here they pack your groceries and help you to your vehicle.

Well, it’s cooled off tonight and I knew they probably didn’t want to go out in the cold.

I mentioned it to my daughter & she says, “that’s not right, ...

they should help elderly people in the cold.” !?!?!?! ~ lol

Can you believe that !?

One more thing.

I’ve been reading that trading is a testoterone-producing activity ...

and diminishes my oxytocin levels.

In order for me to operate at peak-performance I need to boost my oxytocin ~ got any ideas ?

Have a good *fun* Friday morning c[_] ☼   

                                                                     ◞❀⊱╮Lisa╭⊰❀΄՛

Comment by Peter jcp on March 1, 2013 at 8:17am

Morning Lisa - ;-)))  yes I have got a few ideas on how to assist - but I could not print them here in this post - as unfortunately they are not connected to trading and instead could be looked upon as very rude ;-)

With regards to you charts - even though I am old enough to be your Father - my eyesight is not quite 20/20 - but still very good and I don't need glasses for driving or reading - or even for any other activity ;-)) - but every time I blow your charts up - they dont go like other traders charts  - to a larger scale they just get fuzzy and even with a magnifying glass - figures are un-readable ??

I like it when your children said - they should help "elderly people" - lol - stop their pocket money and make them clean the toilets for a month hehe  - don't let them get away with it - your not ancient just yet ;-))

Finally - there is more risk with a 30 or 50 pip stop trade than a 5 pip stop. You have to be accurate with a 5 pip stop - experienced focused and know what you doing - where as most traders stops - are just hopeful guesses - that it might keep them in the game - not for me - learn to be with the 5% who can hack it - you could do it Lisa - but I will admit it would not be good for a elderly Ladies' Oxytocin's level ;-))

Enough jovial banter - have a great day!! 

Regards 

Peter

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