Michael618

[Michael618]

Hi,

Newbie here
English not first language.

For the moment I am busy reading carefully the books.
Mind, elliott, then setup, in this order.
Now I'm at the setup book.

Some questions popped up, while reading, but I didn't find a section in the forum to ask these (probably basic) questions.
I tried to avoid cluttering the forum, hence this topic in journal, although trading journal could refer to actual trades

I believe it would be useful, to have such an area in the forum, basic questions, from newbies,
but maybe there is one, and I didn't find it.

Up to now, everything makes sense nicely, it fits with my vision of life and trading.
Personally I believe trading is 90% mind, minimum.

The questions would be:

1. purple on M1 = red line on M5
ok, i see, but the purple MA should be 40, 8*5, right?
or is it more important for it to be 34? (fibonacci)
(i found by experiment, the purple line is 34, not 40)


2. 34 MA purple line again
what was more important about it?
was it chosen to fit M5 red line?
or was it chosen to be 5 time greater, just because?
if one of my preferred timeframes is 1H, which timeframes would be best fit for 1H?
I guess daily, as upper timeframe.
but as a lower timeframe? 5min?

I would be ok with M5-M1, if everything is crystal clear in my head, the method.
I like H1 also.
If I would want to trade H1, and take setups on M5 => what would purple line need to be on M5?
8 H1bars * 12 M5bars = 96 M5bars?
or 5*5 M5bars = 25 M5bars?
or 89 M5bars to fit fibonacci?
or 34 M5bars?

I'm confused a little around this subject.
although, not extremely important now, as i need to finish all the book first.


3. I was trying to understand how dots appear.
let's say blue/green ones.
is it because the candlestick opens below green line, and closes above it?
what i read in the book would confirm this observation on chart.
or there are more conditions involved?


4. i have some questions about mt4 indicators also, but they are still fuzzy, so i will ask them at the right time.
what's certain now, is that there are moments when a bug happens (i guess when mt4 downloads past history, but i'm not 100% sure)
and the whole screen is filled with blue and red dots all over.
the solution right now is to reload the alert indicator.


ps.
while reading, i found typos, and noted them down.
is someone interested in them?

[immy]

Hi Michael

Thank you for starting your journal. It is the best tool we have found so far for enhancing traders performance. Although some people start using it as a blog to interact with others, yet some use it in the strictest for of a journal. We recommend it in all ways. We don't have the Q&A section anymore because we would prefer those questions be put in journals, exactly as you did.

The questions regarding the MA's and settings are of the least importance to me. Saving time, I won't go into detail, purple is 34SMMA with 21 shift why? I care less to explain... does not matter

you can have it 40 and 25 if you like... I don't mind.

The Dots are price close above below the green, alerting us that price has left the gator's mouth or back in it... of course alone its nothing, you have to assemble all information together to create the correct setup.

You see to hae a sharp eye for detail which could be a blessing and curse when it comes to trading. If you start looking for EXACT and ACCURATE setups on your charts chances are you'll never find them. Charts are a product of Chaos. E.g. there isn't a price level , an exact price level that you would target, ratehr it would be "price zone" "area" so if you're looking for say 1.3000 level anything 10 pips up or down (on h1 chart) would mean its HIT THAT AREA...

hope it makes sense.

ps: you're right about fibo and 34.

[Michael618]

Thank you Immy,
for response and more clarity.

"you can have it 40 and 25 if you like... I don't mind. "
well, I mind, if it's not tested
I wanted to understand the principles, very thoroughly, this is always a critical one for me in everything
but then I want tested rules, so if 34 works, great, 34 it is

1. So, if we would take setups on M5,
the upper timeframe would be... whatever?
are we ok to have just the purple line on M5?
(I'm thinking here, watching trend on H1, take setups on M5)

2. I checked my broker.
deltastock.
they don't allow pending orders if they are not 5 pips away from current price.
Their spread is 2pips on EURUSD, 2-3 pips on majors.
So, I guess M5-M1 is a no-no with them (!?)
=> change broker?
do we have a list in the forum with more reliable brokers?
(i found something in archive, but it's old and not informative)

3. What forex broker do you use, guys?
in older Immy's videos I heard alpari, is this the preferred broker today?
(It would be great to have a topic on brokers)

[immy]

simiple answer..

Don't trade Currencies on M5/M1... currently volatility don't support that
and yes, that is a shit broker (not that I know them, but for that spread and the buffer there are better ones)
Trade the Hourly time frame in the direction of H4... Best combination...
Whatever is written about m5/m1 in the setup ebook, replance M1 with H1 and M5 with H4. hope this is simple enough to understand...

GKFX for UK and Pepperstone... I use them, (i used IGindex but that is for daily and weekly time frames not mt4).
the more famous ones, oanda, fxcm, etc are always reliable...

hope this helps... (if you're in the US its a total different thing then)

[immy]

Check the archived section. I took away all those older sections for simplicity...

[Michael618]

H1-H4 didn't even cross my mind.
Thank you for point it out,
it sounds logical.

Although, H1-H4 means trading around 8 big pairs (am I right?)
(I like more being invested into one pair, fully invested)


I'm in europe, romania, gmt+2
from what i know, deltastock is FSA regulated, and Euro regulations
although, I'm attracted to an UK broker, regulated.


Another question keeps tormenting me.
I see in the forum, hunt, seeds, fruits.
are these required on H1-H4? (i'm thinking there are not many signals on H1)
I'd like to focus on Setup1 and setup2, nothing else, at least in the beginning.

[immy]

I'll only comment on THE most important thing in your post. "Not many signals"... The scarcity mentality of a beginner. (with due respect)

I find that there are WAY too many "trading signals" and way too many "signals of my choice"... If you're looking for signals that world is full of it.

Many thought H1 is Too Slow... until they find out that its actually pretty fast... lol... it will take time to sink it... for now Trust my word.... Trade teh H1 time frame if you have 6-8 hrs a day, 2 min per hr to spare ...

[Michael618]

Thank you for pointing out "scarcity mentality"
I like adjustments, so, no worries about respect and stuff
truth is always best

I browsed H1 history (not thoroughly)
trying to find the acceptable max risk in pips, like 15 pips on M1, in the book

I find that it should be around 30-40 pips on H1
what is your recommendation?

[immy]

Check out Jasmiens journal, that will give a fair idea... i hope

[Michael618]

Reading bits that hit me hard:

[mark douglas - trading in the zone]

[pg 23]
If we aren't aware of, or don't understand, how our beliefs and attitudes affect our perception of market information,
it will seem as if it is the market's behavior that is causing the lack of consistency.
As a result, it would stand to reason that the best way to avoid losses and become consistent
would be to learn more about the markets. This bit of logic is a trap...

...So, if you are afraid of being wrong or losing money,
it means you will never learn enough to compensate for the negative effects these fears will have on your ability to be objective and your ability
to act without hesitation.
In other words, you won't be confident in the face of constant uncertainty.


[pg 24]
The hard, cold reality of trading is that every trade has an uncertain outcome.
Unless you learn to completely accept the possibility of an uncertain outcome,
you will try, either consciously or unconsciously, to avoid any possibility you define as painful.
...
However, market analysis is not the path to consistent results.
It will not solve the trading problems created by lack of confidence, lack of discipline, or improper focus.
...It will feel like you can't trust the markets; but the reality is, you can't trust yourself.

...learn how to redefine your trading activities in such a way that you truly accept the risk, and you're no longer afraid.
When you've achieved a state of mind where you truly accept the risk,
you won't have the potential to define and interpret market information in painful ways.

...you also eliminate the tendency to rationalize, hesitate, jump the gun, hope that the market will give you money, or hope that the market will save you from your inability to cut your losses.
As long as you are susceptible to the lands of errors
that are the result of rationalizing, justifying, hesitating, hoping, and jumping the gun,
you will not be able to trust yourself.
If you can't trust yourself to be objective and to always act in your own best interests,
then achieving consistent results will be next to impossible.

[pg 25]
...In any case, what you currently hold to be true about the nature of trading
will argue to keep things just the way they are,
in spite of your frustrations and unsatisfying results.