Immy's Corner [The Setup The Hunt - T20's and more]

[immy]

EJ had a 5th wave that did not quite hit TZ1. I missed but glad to miss it now as I would have closed for BE. (But perhaps I could have let broker make some money haha)

[immy]

I have just finished documenting a candle by candle trade I took on EJ, to show how to manage a trade. Sadly, police knocked at the door about a vehicle parked in disabled bay in front of neighbour's house, I had to go out. So I went and left the trade as is. It hit 20pip TP nicely. Here is a series of pics.
Some Gif Art Skilled were required.... nicely done. I just wish no one knocked at the door then I would have caught the whole thing and exited slightly differently. oh well NEXT..

[immy]

I just realised I could have used screen capture video.... 8-} never mind NEXT!

[Tomi]

I wish police would knock on my door before taking the next rent :ymdaydream:

[immy]

It never stops when it starts moving, but it never stops when its not moving!
In this post above: the peak was shown as Wave 5, however soon it turned int a Wave 3 and so we could have targeted one more Wave 5.
http://www.itradeaims.net/forum/viewtop ... 9593#p9590" onclick="window.open(this.href);return false;

31-01-2013 18-23-29.png

ps: I hope you're all finding this informative and helps you trade better. Trading is all about Discipline, Patience and Consistency. But all these things overlaps and you cannot work on each thing alone, it is a confluence of the two that creates the third.

[Tomi]

Hope you don't mind if bombing you with questions... In the example above, if someone misses break of AIMS level for any reason (like police knocking on the door), would you consider taking an ITB trade later: in the long candle around 18:33 (price retraces and makes a new AIMS level/support in the previous resistance level)?

Edit: and actually the same thing on 19:29?

[immy]

Hope you don't mind if bombing you with questions... In the example above, if someone misses break of AIMS level for any reason (like police knocking on the door), would you consider taking an ITB trade later: in the long candle around 18:33 (price retraces and makes a new AIMS level/support in the previous resistance level)?

Edit: and actually the same thing on 19:29?

The whole purpose of incorporating a second or third entry technique is to increase your chances of hitting the moves. ITB will specially be useful in this case. Its all based on the concept of "Be Conservative during chops and aggressive during trends" In other words, once the trend is confirmed, price is out of range - "Trade the Shit out of it" btw its a technical term! lol.

Note: An Entry Technique must be objective in nature and must provide you with a proven confirmed edge. BDC is a but one 2 candle pattern entry technique. WE can also look into taking entries based on certain other similar price patterns such as , my favourite Inside Bar , doji or pin bars. Most of the time you'd see BDC that is also a pin bar. Powerful stuff. These are reversal patterns.

[Tomi]

Because I usually try to take only picture perfect setups and it really seems that I miss a lot of big moves. Usually it's the case that I see that W3 started but there's no way to get in. Meaning that there's no good S1 available (long entry candles, too far away of SL etc etc). The entry techniques you presented were awesome and are the answer to my problems. I try to take these into use. At least I feel comfortable with these already but time will tell!

You asked if these are helpful.

Yes

[immy]

Tomi!

one way to approach the market is to be very careful and scared, which is common to all and its ok. So what we do is we try to take only a few trades and perfect looking ones. But the drawback is exactly that. Once you miss the perfect initial entry you find it hard to join the strong moving trend. If you suffer from this, like me and a few of my close trading buddies, then this is the answer. As long as the trend is confirmed the importance of the following filters lessens.
1. "M5 level or historic levels to the left too close" or "taking the outer most levels"
2. Wave/AO too old (Steve would say AO too old is just BS haha i know)
3. AIMS Box too big (still valid but sometimes its better to take a bigger risk because probability of bigger gains is present.

I'll try to explain in further detail some other time I'm looking into permanently include the following entries in to my trading plan.
1. Balance Line Trade
2. ITB
3. BDC
4. Inside Bars

The reason I want to do that is because now I want my trading to go to next level. I'd like to focus on properly letting it run and do that with add ons. I believe that 1 add on can really take your trading to the next level but patience is required. You do not want to start adding on until and unless you consistently keep hitting good trades I'd attempt explain in more detail below.

I believe we can break down the process of becoming a better trader in to the following steps/objectives.

Objective 1. Learn to understand the Entry Setup, Correct Money Management, Trade Management Rules, Written format of trading plan with yearly,monthly weekly and daily goals.

Objective 2. Work on trading exactly as planned in your trading plan and work on "Self Discipline". This is a fact that "People Don't Plan". So work on planning and putting it in writing. If its not written its NOT a plan. And its not a plan unless you at least attempt to act upon it. This will lead to overlapping and connected 3rd objective. If you think of something and make an image of it, it becomes a part of the "Reality inside your brain and mind" If you feel it and stay in that feeling long enough you increase your chances of manifesting it into physical reality. But research suggests that if you put it in writing you increase those chances by further 50% and then if you share it with others, you're gonna get feedback, you're gonna get affirmations and that would further improve the chances and most importantly it will boost your confidence in your self, your trading and your future. In trading Confidence is everything.

Objective 3. Know yourself. Know your Brain and Mind. Know how the mind works in general and in specific your own mind. WE are all unique yet similar. Only you can find out how your mind works and how to deal with it the best possible way. It includes Working and understanding/recognizing and managing mental aspects of trading/living. Following are certain aspect of the mental side we need to work and learn to deal with effectively

a. Managing Fear (work on how to develop Courage. Courage to take the steps to achieve your objectives, courage to take the trades when you see the setup, courage to remain in the trade when you need to etc.)
b. Managing Greed (work on how to develop contentment and staying calm and following your trade management plan)
c. Managing Stress (work on maintaining healthy levels of stress. You may not be able to trade completely stress free and some may even need a healthy level of stress present in order for them to be able to achieve peak performance)
d. Being in the Now ( work on remaining focused yet relaxed in the current moment. In trading staying in the now is very important.)
e. Depression/Sadness/anxiety and Anger ( Managing these mental states is also very important. Work on techniques to get you out of these emotional states of mind. e.g. if you are feeling sad, consciously decide to think about something that would make you happy and joyful. The thoughts would activate the feeling and thus allow for entering and maintaining a better happier joyful state of mind which is absolutely important because it allows you to achieve peak performance. A stressed/Sad/angry/negative state of mind does not allow you to perform at your peak levels)

You may even want to take help from professionals if you find it too hard to remain "Self - disciplined" in general and specifically if any or combination of the above issues are affecting or reducing your chances of Peak Performance. The 15min mediation technique in the Mind Section is really useful for all of the above.

Objective 4. Consistency: as a result of successfully achieving the above objectives you will be able to consistently trade according to your plan and consistently grow your account on a day to day or week to week basis and it would put you in an upward spiral.

Objective 5. Increasing Your Return on Investment: once consistency is achieved work on increasing your profitability. There are 2 ways.
1. Using the power of compounding consistently keep increasing your lot size.
2. Use the power of Adding on to ONLY Trending markets with correct lot sizes and thus squeeze more pips out of exactly the same trades you took in the past that helped you achieve objective 4. In fact this bit can be divided into two parts
1a. Start adding on one or two times with same lot size as the first entry. If you like you can set a 20 pip TP and add on 1 more time using any of the entry technique only once your first position is in +5 profit. Now use 15pip target for 2nd entry. So you'll pull 35pips out of 20 pip move. But this should be done for a period of time and then do not use TP rather use the red/green line close explained earlier in a different post.
1b. Start adding on using reverse pyramiding.



more on this later.

cheers

[Tomi]

Nothing to add here! Completely understood and agreed. You said earlier that you will present "some stuff and that we would love it". I definitely loved all the techniques you presented and those are the answer to the problem that I have faced many times - how to get in to the moves more often. Thank you Immy for your efforts!