StockFetcher Forums · General Discussion · MONEY MANAGEMENT article in SFO magazine Jan 06<< >>Post Follow-up
TheRumpledOne
6,358 posts
msg #40055
Ignore TheRumpledOne
1/8/2006 12:53:36 PM

Did you see the MONEY MANAGEMENT article in SFO magazine Jan 06?

"...Whenever I focused on the setups and not the results, I did fine..."

"...Once I was able to follow my setups consistantly, exactly the same way each and every time,..."

"... I stopped looking for the next great indicator and started looking for repeatable market patterns based on human nature."

Thoughts? Comments





alf44
2,025 posts
msg #40056
Ignore alf44
1/8/2006 1:14:05 PM

"... I stopped looking for the next great indicator and started looking for repeatable market patterns based on human nature."

--------------

This is where I'm at and why I spend the majority of my time these days with my Range Contraction/Expansion Filter.

PRICE is the best indicator ! In the here and now...what's PRICE doing ?


Regards,

alf44





limestar
79 posts
msg #40060
Ignore limestar
1/8/2006 10:03:45 PM

Agree completely with article and alf. Trusting patterns on what you have studied and found to work is something though that comes with alot of experience. I mean everyone looks for the next indicator, but its only after you have gone through everything within your capacity do you realize this. Not only that, but once you have achieved this level 1 of stock trading "grasshopperism" you then continue to look for the next indicator, but compare it to what has worked for you already.


jclaffee
81 posts
msg #40079
Ignore jclaffee
1/10/2006 10:16:28 AM

RumpledOne, I did read that article and was struck by the author's epiphany about concentrating on setups rather than outcomes. . .this is where THIS trader is in development right now.

My focus has evolved away from indicators to a large extent: I do print standard Bollinger Bands on all my charts; I do refer to Directional Movement for numerical definition of trend; and I do refer to RSI(2) -- thank you! -- as an overbought/oversold oscillator.

My process begins, though, with the identification of a market truism -- for instance, "In an uptrending market, every new high will be tested and/or exceeded" -- and then employs an amalgam of patterns and indicators to define entry and exit points which permit me to take advantage of that underlying, repeating market characteristic. I do have two plays which are based on the statement above: one is a "buy the dips" play and one is a "continuation" play. Both are swing trades which result in (about) 65% winners with the individual winners producing (about) $2 in gains while the individual losers produce (about) $1 in losses.

Jim


alf44
2,025 posts
msg #40083
Ignore alf44
1/10/2006 11:31:02 AM

...GOOD STUFF, jclaffee !

The market is ALWAYS "testing" !

That's what Markets do !!!


Is it "testing" yesterday's HIGH ?

Is it "testing" yesterday's LOW ?

Is it "testing" a recent Swing HIGH or LOW ?

Is it trading ABOVE yesterday's CLOSE ?

Is it trading ABOVE today's OPEN ?


This is the essence of "Tape Reading" and should be the sorts of questions Technical Traders try to answer when evaluating a potential trade entry !

All in my opinion of course !


Regards,

alf44





TheRumpledOne
6,358 posts
msg #40086
Ignore TheRumpledOne
1/10/2006 1:38:28 PM

"jclaffee [Ignore] 1/10/2006 10:16:28 AM

RumpledOne, I did read that article and was struck by the author's epiphany about concentrating on setups rather than outcomes. . .this is where THIS trader is in development right now.

My focus has evolved away from indicators to a large extent: I do print standard Bollinger Bands on all my charts; I do refer to Directional Movement for numerical definition of trend; and I do refer to RSI(2) -- thank you! -- as an overbought/oversold oscillator.

My process begins, though, with the identification of a market truism -- for instance, "In an uptrending market, every new high will be tested and/or exceeded" -- and then employs an amalgam of patterns and indicators to define entry and exit points which permit me to take advantage of that underlying, repeating market characteristic. I do have two plays which are based on the statement above: one is a "buy the dips" play and one is a "continuation" play. Both are swing trades which result in (about) 65% winners with the individual winners producing (about) $2 in gains while the individual losers produce (about) $1 in losses.

Jim"

Thanks.

Please, tell us more!


nikoschopen
2,824 posts
msg #40113
Ignore nikoschopen
1/10/2006 8:47:25 PM

TRO,

With all due respect, you have published countless filters over the years with a zeal not known to right-minded traders. Just kidding. But they're filters that have earned the kudos of your Stockfetcher peers nonetheless, including myself. But do YOU "consistently follow" your own filters? Obviously, with so many filters under your belt, this wouldn't be such an easy task, at least not without some incoherence.


StockFetcher Forums · General Discussion · MONEY MANAGEMENT article in SFO magazine Jan 06<< >>Post Follow-up

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