Author Topic: Something for the weekend  (Read 1051 times)

thescruff

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Something for the weekend
« on: June 13, 2020, 11:38:04 AM »
Just a quick one for the weekend as you guys study the basics to gain a foundation of trading here is the link some of you guys have asked for to all the vids on my channel The Scruffy Trader.

All in easy to understand language breaking trading into bite size chucks in real time, hopefully it can help some of the new traders or just give a talking point for the forum.

Do what you love and the money will follow

https://www.youtube.com/channel/UCC5gLHCPz_49xt2CDraKCnQ

Kind Regards

Langers

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eddieb

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Re: Something for the weekend
« Reply #1 on: June 13, 2020, 01:58:58 PM »
Hi @thescruff

Just watching your Dax trade and had to say how much I like not just the trade, but also your layed back attitude. Especially liked the 'balls to the wall' comment  ;D

Is that a North East accent, in which case Magpie or Mackem?
Disclaimer. Posts are just my thoughts,  not recommendations.  Do your own due diligence before trading

thescruff

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Re: Something for the weekend
« Reply #2 on: June 13, 2020, 02:42:25 PM »
Neither its a Durham voice Dunelmian is what we are called ,  :) traded a long time so my emotion level is dialled  down quite a lot
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eddieb

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Re: Something for the weekend
« Reply #3 on: June 13, 2020, 02:45:38 PM »
Beautiful part of the world, went there a few times when I lived in York
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Kaitsu

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Re: Something for the weekend
« Reply #4 on: June 13, 2020, 02:48:24 PM »
Just watching your Dax trade and had to say how much I like not just the trade, but also your layed back attitude
I was inspired by that vid as well. I watched it last week and took my first trades on the DAX. I don't know why I haven't looked at DAX before, I guess it just never occured to me, but it is an interesting instrument! At least, it was Thursday and yesterday! haha!

Mind you, I have been spending some time back-running it on a fast-forward simulator a few years back and it was not quite so "easy" to predict from TA as it has been recently......

But it has caught my interest because I am looking for a substitute for SP500. I am dropping that now that we are back to the earlier highs because the summer months are here and we are starting into the election mud-slinging and rhetoric - I think it is going to be a messy near term for SP500.

But you are right, Langers has an interesting style and a very open and genuine attitude to trading in the real world. There is a lot there for Newbies to learn from even if they trade a different style to Langers.

I believe Langers is the first poster here to have more "likes" than posts!!  ;D That is quite an achievement!  8)
« Last Edit: June 13, 2020, 02:50:19 PM by Kaitsu »
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thescruff

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Re: Something for the weekend
« Reply #5 on: June 14, 2020, 11:12:30 AM »
More likes than posts lol love it
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Kim

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Re: Something for the weekend
« Reply #6 on: June 15, 2020, 04:06:47 PM »
Hiya @thescruff
Love the videos, even if I dont always understand them. I was interested where you said that you look at 2 high time frames and then find your entry point on a third, lower frame. That sounds a lot like the system i was starting out with. How do you choose your exit point, I think Kaitsu said that the exit point was the most important thing a trader needs to know (or something like that)

thescruff

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Re: Something for the weekend
« Reply #7 on: June 15, 2020, 05:48:53 PM »
Exit is a good question, nobody knows hence why I use scale points and a trailing stop on a 34 MA on a hour
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Kaitsu

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Re: Something for the weekend
« Reply #8 on: June 15, 2020, 08:39:40 PM »
I think Kaitsu said that the exit point was the most important thing a trader needs to know (or something like that)
It seems that traders often pay a lot of attention to their entry criteria but are more vague about how and when to exit. The reason why I think the exit strategy is so important is because it affects one's overall profitability whatever the entry strategies are. It is no good just getting into good trades if we cannot also optimise the exits. Many a good trade fails to produce what it should due to a poor exit.

There are four basic ways to exit a trade and we should evaluate these levels very carefully for each trade:

1) Stop level: should be at a point that, if reached, invalidates the reason for having entered the trade (this could be a hard stop order or a mental "zone"). If this level is too far from the entry then the trade should be ignored.

2) A pre-determined target level, This may be a fixed pip value or an indicator like Fibs, or an S/L. I.e. a reasoned level that the price could reach.

3) A trailing stop. An open-ended trade that is only closed out when the market retraces sufficiently to suggest the move has expired. Usually this means the stop has to be a fair distance away from the price in order to avoid accidental stop-out from a spike.

4) A reversal signal. If the market gives a signal for a trade in the other direction then there is little reason to keep the existing trade open.

In general terms, I would suggest short-term trades are better suited to fixed stop levels and target levels. These can also be scaled at various points with larger position sizes. Trailing stops are better suited to longer term range trades that generally seek/offer bigger rewards, or with the last remaining tranche of a multi-position trade.

I think the importance of exits in trading is emphasised by the often-mentioned problems of prematurely cutting profits and running losses, both of which destroy the overall profitability regardless of the trade success rate - but neither of these issues is concerned with the actual entry, they are both exit errors!     :D
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Caesar

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Re: Something for the weekend
« Reply #9 on: June 15, 2020, 08:47:27 PM »
@Kaitsu and @thescruff
Would you suggest that, as a new traders just starting out, it is recommended to choose your stop position (and your take profit position) before you enter a trade?
Perhaps leaving scaling, trailing stops, reversal signals until one has a bit of experience under ones belt.
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thescruff

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Re: Something for the weekend
« Reply #10 on: June 15, 2020, 09:01:06 PM »
Any trade should have pre defined reasons for entry and for exit as part of a check list. The stop is the easy part as from the moment the trade is entered you know the cost of trade if it goes wrong something that the trader has total control of , with that said if worried about the trade the position size is to high.

The next part is a little more tricky as no one knows how far a market will go. A good starting point is a target to the next key level based on solid structure with a slow trailing stop as many traders pull the stop to break even to quick and find the the wicks take out the trade before its begun.
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Kaitsu

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Re: Something for the weekend
« Reply #11 on: June 15, 2020, 09:32:40 PM »
@Kaitsu and @thescruff
Would you suggest that, as a new traders just starting out, it is recommended to choose your stop position (and your take profit position) before you enter a trade?
Perhaps leaving scaling, trailing stops, reversal signals until one has a bit of experience under ones belt.
Do you think this is worthy of its own thread? I think there are many angles here for newbies to be aware of. Stips should certainly always be pre-determined but some readers believe in mental stops and not hard stops but, again, with possibly an "airbag" safety stop far from the likely range of a spike.
Another issue is whether a trader's strategy is mechanical or discretionary. A mechanical system will always have a pre-determined exit.
I think a key priority specifically for newbies is aiming for overall consistency in their trading and therefore a simple fixed stoploss/fixed target is probably a sensible approach in encouraging discipline and patience and easy to analyse later.
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Caesar

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Re: Something for the weekend
« Reply #12 on: June 16, 2020, 08:00:48 AM »
Do you think this is worthy of its own thread?
It may well be. Its one of those topics that can grow legs of its own as people realise the options available and the potential pitfalls. Scaling is something barely touched on in other forums I've visited,  experienced traders occasionally mention them but noone ever goes into detail.
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Kim

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Re: Something for the weekend
« Reply #13 on: June 16, 2020, 09:59:11 AM »
All I have been doing so far is setting stops and take profits when I enter the trade.
I have not been moving them later or changing them to trailing stops. Keeping it as simple as I can.

Kaitsu

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Re: Something for the weekend
« Reply #14 on: June 16, 2020, 10:57:41 AM »
. Keeping it as simple as I can.

That's very sensible, afterall, take the example of Adam and Eve - when they first thought about starting the clothing business they kept it very basic, but look where it has led to today...... 8) ;)
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