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I will be discussing the way I trade in a discretionary manner.

But firstly I dont use oscillators. I do consult at times a stochastic but it is not used as a stand alone tool.
I certainly find some oscillators handy in design of Trading systems but to me trading a system is vastly different from trading in a discretionary manner.

We design systems so we have a re occurring structure which when adhered to over a long period of time will return a positive expectancy.It will have a blue print we can refer to to give us the confidence that the method is not experiencing conditions which are outside of those used in its design---often a prolonged period of out of sample condition can break a system or indeed see it out perform!

We (or at least I) trade in a discretionary manner so I have the flexibility to relax or increase importance of signals and their combination---to have infinite control over my Risk management rather than a set and forget set of parameters I would use in a System. I am for ever working at increasing my Reward To Risk. My portfolio is (Currently due to market conditions) being Rotated/Increased/Slashed/Stopped/Started revised and monitored in the hope of minimisation of Risk and Maximisation of Profit.

So from a mental point of view I have become very comfortable with.
(1) Being able to make a quick and binding decision based upon the evidence (technically) I have in front of me.
(2) Being WRONG.
(3) Being out of the market without a portfolio IS a POSITION.
(4) Being able to trade short (I only use INDEX FUTURES).
(5) Taking a loss --- what many cant face doing!
(6) Taking a profit---what many fail to do!

But above all-- I want it to be easy--Not all consuming--I need it to be super flexible--
I'm often out of the office---Over seas-- Running a Company---Living Life!

So what is the structure of my Discretionary trading.

(1) Risk Mitigation. I actually embrace risk but I will above all mitigate it at every chance I get. In the short term it has taken me out of profitable positions too early.
It has stopped me out too early and seen me pass up trades which dont add up as good Reward to Risk candidates.
BUT without doubt it has slashed my Risk to Reward. It has protected my capital base.It has allowed me peace of mind with larger positions which at worst break even. Of all the tools of trading THIS is by a country Mile the Most important aspect of trading you can learn.--EMBRACE IT

(2) Momentum I want to identify potential momentum either BEFORE or DURING its development. I want to be in front of it before it hits either short or long.
I want to protect myself from the negative effects of being on the wrong side of it.
I want to be able to see it BUILDING--MOVING--CONTINUING and STOPPING.

(3) Profit

So now we come to TOOLS

(1) Background
(2) Cycle _--As explained in Initial post. And VERY Basic Elliot!
(3) Pattern--Both Single and Multiple Bar.
(4) Price --Range position of close in Range. Reaction to factors
(5) Support/Resistance
(6) Trend lines
(7) Gaps
(8) Volume---encompassing VSA
(9) Position sizing.

I generally trade small caps --- but if opportunity stares me in the face with blue chips then they will also be traded. I make no targets and allow the chart to tell its story. My interpretation and application of my discretionary trading is the determining factor to profit. I am forever working to skew it in my favour.
Many would disagree with my decisions and I offer up the following understanding that.
I'm not here to convince you that the way I trade is the be all and end all--it isn't.

What I'm hoping is that it will help those struggling to turn a profit see how they can apply a working methodology which I have developed and is profitable---into their own trading.

Take the thinking-- the tools and the application and use it to develop--or improve their own trading. This is simple---un ambiguous (If you become a Black and White trader!) and FUN!!!

I dont trade full time--Dont have too dont want to.---Yes it returns more than an average wage a year!

Next we will get straight into it looking at charts and explaining the ANALYSIS and APPLICATION. We will look at the tools and the subsets in the TOOLS.

I sincerely hope this thread finds those who need it most---those who Guess/Gamble and HOPE!.

<blockquote data-quote="tech/a" data-source="post: 671397" data-attributes="member: 257">I will be discussing the way I trade in a discretionary manner.But firstly I dont use oscillators. I do consult at times a stochastic but it is not used as a stand alone tool.I certainly find some oscillators handy in design of Trading systems but to me trading a system is vastly different from trading in a discretionary manner.We design systems so we have a re occurring structure which when adhered to over a long period of time will return a positive expectancy.It will have a blue print we can refer to to give us the confidence that the method is not experiencing conditions which are outside of those used in its design---often a prolonged period of out of sample condition can break a system or indeed see it out perform!We (or at least I) trade in a discretionary manner so I have the flexibility to relax or increase importance of signals and their combination---to have infinite control over my Risk management rather than a set and forget set of parameters I would use in a System. I am for ever working at increasing my Reward To Risk. My portfolio is (Currently due to market conditions) being Rotated/Increased/Slashed/Stopped/Started revised and monitored in the hope of minimisation of Risk and Maximisation of Profit.So from a mental point of view I have become very comfortable with.(1) Being able to make a quick and binding decision based upon the evidence (technically) I have in front of me.(2) Being WRONG.(3) Being out of the market without a portfolio IS a POSITION.(4) Being able to trade short (I only use INDEX FUTURES).(5) Taking a loss --- what many cant face doing!(6) Taking a profit---what many fail to do!But above all-- I want it to be easy--Not all consuming--I need it to be super flexible--I&#039;m often out of the office---Over seas-- Running a Company---Living Life!So what is the structure of my Discretionary trading.(1) Risk Mitigation. I actually embrace risk but I will above all mitigate it at every chance I get. In the short term it has taken me out of profitable positions too early.It has stopped me out too early and seen me pass up trades which dont add up as good Reward to Risk candidates.BUT without doubt it has slashed my Risk to Reward. It has protected my capital base.It has allowed me peace of mind with larger positions which at worst break even. Of all the tools of trading THIS is by a country Mile the Most important aspect of trading you can learn.--EMBRACE IT(2) Momentum I want to identify potential momentum either BEFORE or DURING its development. I want to be in front of it before it hits either short or long.I want to protect myself from the negative effects of being on the wrong side of it.I want to be able to see it BUILDING--MOVING--CONTINUING and STOPPING.(3) ProfitSo now we come to TOOLS(1) Background(2) Cycle _--As explained in Initial post. And VERY Basic Elliot!(3) Pattern--Both Single and Multiple Bar.(4) Price --Range position of close in Range. Reaction to factors(5) Support/Resistance(6) Trend lines(7) Gaps(8) Volume---encompassing VSA(9) Position sizing.I generally trade small caps --- but if opportunity stares me in the face with blue chips then they will also be traded. I make no targets and allow the chart to tell its story. My interpretation and application of my discretionary trading is the determining factor to profit. I am forever working to skew it in my favour.Many would disagree with my decisions and I offer up the following understanding that.I&#039;m not here to convince you that the way I trade is the be all and end all--it isn&#039;t.What I&#039;m hoping is that it will help those struggling to turn a profit see how they can apply a working methodology which I have developed and is profitable---into their own trading.Take the thinking-- the tools and the application and use it to develop--or improve their own trading. This is simple---un ambiguous (If you become a Black and White trader!) and FUN!!!I dont trade full time--Dont have too dont want to.---Yes it returns more than an average wage a year!Next we will get straight into it looking at charts and explaining the ANALYSIS and APPLICATION. We will look at the tools and the subsets in the TOOLS.I sincerely hope this thread finds those who need it most---those who Guess/Gamble and HOPE!.</blockquote>

[QUOTE="tech/a, post: 671397, member: 257"] I will be discussing the way I trade in a discretionary manner. But firstly I dont use oscillators. I do consult at times a stochastic but it is not used as a stand alone tool. I certainly find some oscillators handy in design of Trading systems but to me trading a system is vastly different from trading in a discretionary manner. [B]We design systems[/B] so we have a re occurring structure which when adhered to over a long period of time will return a positive expectancy.It will have a blue print we can refer to to give us the confidence that the method is not experiencing conditions which are outside of those used in its design---often a prolonged period of out of sample condition can break a system or indeed see it out perform! [B]We (or at least I) trade in a discretionary manner[/B] so I have the flexibility to relax or increase importance of signals and their combination---to have infinite control over my Risk management rather than a set and forget set of parameters I would use in a System. I am for ever working at increasing my Reward To Risk. My portfolio is (Currently due to market conditions) being Rotated/Increased/Slashed/Stopped/Started revised and monitored in the hope of minimisation of Risk and Maximisation of Profit. [B]So from a mental point of view[/B] I have become very comfortable with. (1) Being able to make a quick and binding decision based upon the evidence (technically) I have in front of me. (2) Being [B]WRONG.[/B] (3) Being out of the market without a portfolio IS a POSITION. (4) Being able to trade short (I only use INDEX FUTURES). (5) Taking a loss --- what many cant face doing! (6) Taking a profit---what many fail to do! But above all-- I want it to be easy--[B]Not all consuming[/B]--I need it to be super flexible-- I'm often out of the office---Over seas-- Running a Company---Living Life! [B]So what is the structure [/B]of my Discretionary trading. (1) [B][COLOR="blue"]Risk Mitigation[/COLOR].[/B] I actually embrace risk but I will above all mitigate it at every chance I get. In the short term it has taken me out of profitable positions too early. It has stopped me out too early and seen me pass up trades which dont add up as good Reward to Risk candidates. [B]BUT [/B] without doubt it has slashed my Risk to Reward. It has protected my capital base.It has allowed me peace of mind with larger positions which at worst break even. Of all the tools of trading [B]THIS[/B] is by a country Mile the Most important aspect of trading you can learn.--EMBRACE IT (2) [COLOR="blue"][B]Momentum[/B][/COLOR] I want to identify potential momentum either BEFORE or DURING its development. I want to be in front of it before it hits either short or long. I want to protect myself from the negative effects of being on the wrong side of it. I want to be able to see it BUILDING--MOVING--CONTINUING and STOPPING. (3) [B][COLOR="blue"]Profit[/COLOR][/B] So now we come to [B]TOOLS[/B] (1) Background (2) Cycle _--As explained in Initial post. And VERY Basic Elliot! (3) Pattern--Both Single and Multiple Bar. (4) Price --Range position of close in Range. Reaction to factors (5) Support/Resistance (6) Trend lines (7) Gaps (8) Volume---encompassing VSA (9) Position sizing. I generally trade small caps --- but if opportunity stares me in the face with blue chips then they will also be traded. I make no targets and allow the chart to tell its story. My interpretation and application of my discretionary trading is the determining factor to profit. I am forever working to skew it in my favour. Many would disagree with my decisions and I offer up the following understanding that. I'm not here to convince you that the way I trade is the be all and end all--it isn't. What I'm hoping is that it will help those struggling to turn a profit see how they can apply a working methodology which I have developed and is profitable---into their own trading. Take the thinking-- the tools and the application and use it to develop--or improve their own trading. This is simple---un ambiguous (If you become a Black and White trader!) and[B] FUN!!![/B] I dont trade full time--Dont have too dont want to.---Yes it returns more than an average wage a year! Next we will get straight into it looking at charts and explaining the ANALYSIS and APPLICATION. We will look at the tools and the subsets in the TOOLS. I sincerely hope this thread finds those who need it most---those who Guess/Gamble and HOPE!. [/QUOTE]

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