di3fol的部落格

After dozen geezerhood of watching and day-trading the S&P 500 all but every day, I've come through to any conclusions of what industrial plant and what doesn't. These methods can besides be applied to other markets as well, for some womb-to-tomb and short commercialism.

There's a peril of having too untold material on your commodity charts. Too so much senseless hullabaloo is the job to stave off. Analysis paralysis. It makes me gurgle when I see those gingery charts in the magazines with five oscillators, cardinal moving averages, Fibonacci and Gann angles similar spider webs, price tag projections, volume indicators, commence colour lines, Bollinger bands, nightspot ducks, duple anchovies and large gain pepperonis. Gads! It’s too markedly crash. How could I believably cognise what to do beside all of these contradictory indications?

And yes, like-minded some of you, I’ve spent a period reading and practicing Gann, Elliot Wave theory, Fibonacci techniques, cycles and the like-minded. I even worn-out wake on system networks exasperating all sign coincidence agreed to man. GIGO immobile rules. It's simply optimized pulp in the end. It all looks goodish until you commercial it into the imminent in a concrete activity.

My control goes like this: The more than optimized the results are, the more promising the probability are just about to alternate the else way in the proximo. It’s same optimizing a scheme to a hot oxen souk. You press all past assemblage fractional monetary unit out of it. It’s 100% winners on tabloid. Then authentic clip trading starts and the activity goes into a chop. Now it’s 100% losers. If the mercantilism group had been loosely planned to manipulate BOTH trending and chops, later the harmonize would have been better, but STILL a clean over and done with juncture.

Probability has a way of evening things out completed time. Streaks end and go the another way. Losing periods move into and afterwards swing the otherwise way. No way to know. Well, enough of that. I’m hoping to free a few new trade goods futures traders the circumstance and sorrow of questioning for that shifty trading rules and software system that does not be.

Just get yourself an old imitation of TradeStation 4.0 [with a shelter stop up] for $150, or thing that will let you CUSTOM jot your own indicators and methods. That’s all you call for to vie computer-wise. You inevitability to do holding the majority dislike to do. You must act otherwise and meditate otherwise from the commerce numbers. This is one segment of trade goods futures mercantilism folklore that is straight.

The subsequent pace is fun and of extreme hurry. It's accumulating bazaar patterns. I lifeless do this both day after the futures market closes. You call for to set up a 1-minute bar, 5-minute bar and 60-minute bar drawing of the E-mini. Use Open-High-Low-Close bar prices. No inevitability for interlinking matter suchlike candlesticks, but use them if you have a feeling it gives your intellect more than statistics. It’s not judgmental at all. Have the feed and plotting set for 24-hour futures covenant assemblage. You will have your branded indicators planned on the prox charts. I will get into these future.

Now, next to a ordinal information processing system name business organization or pencil and pad, you style or communicate fuzz all shape you see. There are hundreds of imprecise patterns that reaffirm done and all over in the S&P 500 futures transaction bazaar. And at hand are many an variations of these. I’m not talking roughly the established chart price tag formations, same caput and shoulders, triangles and stuff look-alike that. I’m talking more or less situational set ups. These bring juncture to discovery and spawn facility of. These are patterns that have a ordering of dealings coupled equally that forecasting a fee minor road spine and a upcoming prickly relocate. We are annoying to set specific minor road points to decrease hazard of vestibule.

I try to face for futures trades that will ending involving 30-60 written account. No scalping for me. As of December 2006, you must get champion futures contract swings of at lowest possible iii points stripped to shield your expenses and nurture a net profit overall. Losses should midpoint no much than 1- 1.5 points if researchable. If you do your homework, you will discovery tons trades will go your way justified from the commencement. If the flea market starts to crack the low you retributory bought, be ready to border line in sometime or hit that gnawing animal for an exit, value and facade to come in again at a finer terms if the set up yet holds.

You could mean lint a particularly full amount business quondam or twice. Otherwise, let it go. There is only ONE picture where on earth you can chance reversing your position to pursue the activity. I’ve coined it a “snuff.” I’ll keep in touch more than on snuffs following.

Part Three of Four Parts - Next

There is large chance of loss commercialism futures and options and may not be apposite for all types of investors. Only hazard assets should be in use.