Hello Guys.
This Monday was a Holiday in Canada, so I decided to spend the full day trading.
And here is the results
Now, that's a proof, if I can achieve my goal if I spend a full day trading, even though I did this, I do not recommend people to do a full day trading.
Because that will make someone else angry #MyWife #AngryBird
lol
This makes it 5 weeks done 10 more weeks to go and the investment amount will be $7.60 per trade.
Next stop, $114
Just to let you guys know, I started writing this on Monday, and now your reading it.
Sooo, please leave me some feedback as these blogs do take a lot of my time, and they are focused on what I think "It will help them".
"Them" is you the reader.
ALSO, I know I an not the best Writer her, English is my 2nd language, if I do misspell something or something is not in the right place please let me know so I can fix it.
Yes I can still edit this blog long after I post it.
Also, If you want to subscribe to the blog RSS feed,
Here is the link:
http://www.binaryoptionsedge.com/blog/rss/85-krakkons-blog/
Hope that helps, for the 1 person who asked for it, please let me know if it works.
====================================
Krakkon's Talk
Hello guys and gals, Welcome to another blog, now before we start I will assume that you read my previous blog "Week 4 - Patterns and Indicators? and The team work element."
If that blog did make sense to you and you think you should follow it, then this blog will take toward the 1st stage of it.
If it did not make any sense to you, then I am sorry, there is nothing for you to read here today and i will try to make it up for you.
I will expand on that topic because I saw a lot of views there, sooo I will assume people want to learn more.
I want to talk to as a stranger, not worth of your trust and idiot. As a matter of fact I want you to assume that everyone here is an idiot and they do not know what they are talking about, and of course that includes me
Please do not take this personal, as I want to stir your head and brain a bit and get you start working on your own trading style.
All the strategies you saw and read do not work, they all SUCKS and others are SO DAM HARD to follow.
And because of that, its time to trust your own work, your own efforts and start blaming yourself for any mistake instead of other people.
Starting on the 1st stage, I will not talk about patterns that are out there, because there are A LOT. you can do your own homework.
But, I want you to pick one pattern and help you on the decision of picking one, literally, open your chart, Clean Chart no indicators attached, right now
Remember, almost all patterns on their raw form have about %50 ITM/OTM ratio, some are a bit lower others are a bit higher, but in average they have %50,
When picking a pattern, we need to answer few questions:
- Which Chart do you prefer, Line Chart or Japanese Candlestick?
- If its Line chart:
----- How many points are included in your pattern?
----- What is the amount of Pip movements between each point?
----- Are you using this pattern to predict reversals? or is it part of the trend movement?
----- Can the pattern used for both "Calls" and "Puts"? or only one of them?
- If its Japanese Candlestick:
----- How many candle are included in your pattern?
----- What is the amount of Pip movements between each point? or the Candles shape?
----- Are you using this pattern to predict reversals? or is it part of the trend movement?
----- Can the pattern used for both "Calls" and "Puts"? or only one of them?
- What time frame?
- And for how long you will be on the trade?
Please when answering these questions, STICK WITH IT, YOUR HERE TO LEARN, THAT PATTERN.
I have seen so many people jumping around from one pattern to another simply because they gave up, do not get stuck there, stay with what you selected.
And remember this process takes about 4 to 6 months, so give the pattern the time needed to be develop.
Also, I know most people are familiar with the Japanese Candlestick, and they will immediately look for patterns there, there is nothing wrong there, but please do remember, that line charts and it's points patterns are no different then the The Japanese candlestick chart and candles patterns.
I would agree with you that the Japanese Candlestick chart represent the price movement better then a line chart, but in term of searching for patterns they are the same.
Hmmmm, now that I think about it, I think I will start looking for my next system since, I am pretty much confident on the E.N. V3.
I will use The Japanese Candlestick chart to choose my pattern, why? because I do not really use the Line Chart, and all of my systems that I am using on my main, are based on Japanese Candlestick patterns.
Now that I know which chart i will use, let me answer the questions.
- How many candle are included in your pattern?
For this part I really do not have the holy-grill of how many candles you should have on your pattern, i mean i have a system that uses 5 candles, and E.N V3 uses 3 candle pattern.
But, for me I like my patterns involved with 3 candles at lest and max of 5 or 6.
For the sake of what I am doing here, I will choose 3 Candles pattern.
And now I open the EUR/USD and ..... here it is
Its the 1st thing I saw, soo this is what I will use.
What is the amount of Pip movements between each point? or the Candles shape?
If you not familiar with the term "Pip Movement" PLEASE STOP HERE do not read any further, You need to learn it, come back when you do.
================ Marks where you stop to learn "Pip Movement"
Even though I just made you learn it, I will not use it here, and I know you will hate me for that, but please understand this is one of the basics that you MUST Learn, A BIG MUST TO LEARN.
For this pattern I will focus on the shape of my candles.
In regards to this subject this is what I recommend to you:
- If your using Line Chart, use Pip Movement to distinguish the pattern, and build a ratio between these points. And when your looking for other set up with similar pattern do not use the Pip Movement as your indicator but the ratios you built.
- If your using Japanese Candlestick Chart, looking at the shape of the candles is much easier and faster, or you can use the Pip Movement ratios method.
Form the pattern that I just picked, I can totally see that: "looking at it from the left to the right"
- The 1st candle is smaller than the 2nd candle.
- The 2nd candle is smaller than the 3rd candle.
- The 3rd candle can cover both the 1st and the 2nd in size.
Quick note, before we move on, If you have a zero movement point or candle PLEASE DO NOT USE IT as a part of your pattern, Why? because its an indication that the traders did not make decision in which way should the price go.
Next.
Are you using this pattern to predict reversals? or is it part of the trend movement?
From looking at the pattern that we picked, I will say it seem like a pattern that will follow a trend movement, meaning that the next candle is on the same direction of the 3 candles pattern that I chose.
And because of that I will say the next candle will go with the pattern direction and trend movement
Now, before we go any further, at this point it does not really matter which direction your entry candle will go to, but you need to chose the direction.
Remember, "all patterns in their raw form have about 50% ITM ratio" that means your not wrong if you chose this pattern for a reversal.
Can the pattern used for both "Calls" and "Puts"? or only one of them?
as for this question, even though i posted here with the other questions, i do not really recommend you to answer it now.
Why? because you need to focus on one direction trading.
Before you get to the other side of trading, in my case "Call trades", I need to study this pattern on its raw form that we found it on,
I found this pattern on the Put form, so I need to study it on that form.
If you decided to use the other side of trading, then you need to understand your working with 2 patterns, not one, and that's A LOT OF INFORMATION TO STUDY
Once I gather enough information on this pattern, I will transfer it to the Call set up, and keep studying. I will say its mostly a matter of observations, noticing trend locations and setups.
What time frame?
For new people out there, please do not start with 60 sec, I know its appealing for a lot of people to start on 60 second and everyone loves the idea "I can make money every 1 Minute, That rocks".
But you need to understand, Its not easy to predict the 60 second chart monster.
Why? why I do not recommend people to use the 60 Second chart?
Because of the factor of Change, what do I mean by "The Factor of Change" or The Rate of Change?
The chart changes in behavior everyday, sometimes it shows new habits, and sometimes it goes back to old habits, that's why Monday is not like Friday, and the same goes with the other days.
To help you understand this i need to put it in perspective with another phenomena "The Growth Rate"
The Blue whale, this animal grow about 90 kg (200 pounds) every 24 hours. if we toke the Blue Whale Growth Rate as a Chart, you will never be able to trade or even try to update your own strategy, because in the next 24 hours there are new factors that you need to consider.
Now I am not saying that 60 second chart changes every 24 hours, but I can almost guarantee you it changes every month and with that change new habits, or old habits, will show up, you need to be able to notice them.
For the pattern that I picked today, I will be using 60 Second Chart, now if your asking me "Why Your Using it?" because I have spent enough time looking at charts to feel comfortable to start looking at 60 Second Charts.
And if your asking "When is it enough for ME?"(You)? is when you master your pattern, that's in my opinion, and I am petty sure many people disagree with me on that point.
There is also another reason why you should not do 60 Second trades.
When trying to study your loses, most of the time traders would like to know the bread down of the candle, if its a losing 5 minute trade the break down of it will be on the 1 minute chart.
Doing this will help see and collect information in regards to the price movement, I will go more in-depth on this topic on a different blog, but for now keep it in mind
And for how long you will be on the trade?
This depend on you, for me I like to stay in the trade for the next candle.
There is no rule of thumb that will tell you how long should you stay on a trade, it could be for 5 minute , 15 minute or 30 minute.
But I will say, for me, if the pattern is recognized or based on 3 candle set up or 2 price points, referring to support/resistance lines, the trade should be 1/3 of the time.
That's only for me, see where are you comfortable.
Now, before I let you go, I want to point out a quick thing I think new people may not notice.
When I ask you to find a pattern, it does not need to be 3 candles or 5 candles in row, it could be based on price points that are away from each other by 15 or 30 candles, it could be anything you learned or studied.
I am only using the pattern above for example, and to guide you throughout the blog.
I hope that this blog helps you go to the next stage and go further in your education
Also, I do understand that I have used few big words to your trading vocabulary, so please take the time to learn them, as they will help you improve your trading skills.