Thread: L4P Traders: Stocks, Options, Futures, FX

Originally Posted by Go Getter

As you know already, there are two forms of market analysis. Technical analysis, and fundamental analysis. Traders, such as myself tend to like technical analysis because it's more focused on the price action of a Stock rather than the pointless information of P/E ratios, and all other forms of fundamental analysis. It's pointless because as Traders, we tend to have a short-term outlook rather than a 5 or 10 yrs outlook which is really what fundamental analysis is good for.

Technical analysis is also rather subjective. You and I may not see the same things, such as support/ resistance levels, eventhough we're looking at the same chart. Because it is a subjective art, its not right all the time, so its one of those things where, "it works until it doesn't" if that makes sense.

Books on the subject are important, but the problem I have with these books is that they show you what happened AFTER the fact. They show you these perfect text book examples, and they mark on the charts "buy here", "sell here", and it all looks deceptively easy. I rarely see these perfect examples the authors post in their books, and I've been trading for some time now. It's easy until you sit in front of a live chart, and its jumping around like crazy and you're saying to yourself "What the hell do I do?"

I'm not a day trader thank god (its a dead industry now), so I have the luxury of time to study a chart, but when your day trading, things happen quickly, and many times the technical analysis on 5min charts simply doesn't hold up, and its frustrating, because you read in a book that the markets "supposed to go up when price falls, and it reaches a double bottom (a support zone)" , and yet price continues to fall...

Remember a stocks going to do what it wants to do. The market cannot be held to anyones rules. The markets are made up of millions of people who buy and sell for all kinds of reasons. Having proper money management techniques in place will help you stay alive though for sure!.

Thanks for the respond Go Getter, your respond made me feel more confident toward technical analysis. But I think reading books on technical analysis still have it's good use. Since I still need to understand more concepts behind technical analysis such as indicators and etc. I'm going to go through the links you posted in your previous respond and see what I can pick up from there. Any more information you can share where I can learn more about it? Thanks!

Here is some advice, that I wish I was told when I started, and that is you dont need indicators to trade. In fact they can make your trading more difficult. I use a 200ema (ema = Exponential Moving Average . link --> Exponential Moving Average (EMA) ) but thats all. I would also say that when you have some spare time, go read the thread here at forex factory Andrews Pitchfork (Median Line) @ Forex Factory . It's 155 pages long, but it will give you some good knowledge and background. Some of the posters on the thread you need to keep track of are: justcatalin, forktrader, and eaglestar to name a few..these guys are some good traders and you can learn a lot from their charts.

Also watch this. A good intro from the man himself that teaches these things.

YouTube - Mscomvid09's Channel

Originally Posted by Go Getter

Here is some advice, that I wish I was told when I started, and that is you dont need indicators to trade. In fact they can make your trading more difficult. I use a 200ema (ema = Exponential Moving Average . link --> Exponential Moving Average (EMA) ) but thats all. I would also say that when you have some spare time, go read the thread here at forex factory Andrews Pitchfork (Median Line) @ Forex Factory . It's 155 pages long, but it will give you some good knowledge and background. Some of the posters on the thread you need to keep track of are: justcatalin, forktrader, and eaglestar to name a few..these guys are some good traders and you can learn a lot from their charts.

Also watch this. A good intro from the man himself that teaches these things.

YouTube - Mscomvid09's Channel

Thank you!!

earning season is in full swing
Any stocks you recommended to buy

Are we looking in double-dip ???

Originally Posted by johnbsk32

earning season is in full swing
Any stocks you recommended to buy

Are we looking in double-dip ???

I've tried to trade the earnings reports, and failed more than I won. Trading these is tricky because even if the company does report higher revenue than last quarter, the stock can drop like a stone for a multitude of reasons, like if the revenue forecast for next quarter is expected to be lower.

If I was to recommend a stock to you, it would be based off what I see on the charts, more than the fundamentals, but I will say that I'm bullish on FCX (freeport mcmoran..the worlds largest copper and gold producer ) The stock hasnt performed that well lately, but as China continues to grow at record numbers, they will use more and more copper, and gold. In fact most of the worlds commodities will be mostly consumed by the chinese in the next couple of years.

Go Getter,

Please pardon my noob question, so I've spent the last few hours researching the Andrew's Pitchfork trading method. I noticed that most chart used in examples are currency charts. My question, is Andrew's Pitchfork method only used for trading currency? Thanks!

Woohoo! Fellow Traders!
-I trade FX.
-Part time, planning on going full time in another 2-3 years with sufficient equity and when profit consistency has been achieved.
-Learning./trading for about 4 years now.
-Im a Technical Trader.
-Use Price action, support/Resistance and Moving Averages.
-My Main Platform is Metatrader, as its simple and easy to use.
-I hang out at forexfactory or if anyone wants to have some trading discussions Im on skype. "ahsanfx"

Originally Posted by 1fastm

Go Getter,

Please pardon my noob question, so I've spent the last few hours researching the Andrew's Pitchfork trading method. I noticed that most chart used in examples are currency charts. My question, is Andrew's Pitchfork method only used for trading currency? Thanks!

No, it can be used in ALL markets, but because that's a Forex forum, all the charts there are currency related. I trade stocks, and it still works just as fine.

Closed out the trade I had on FSLR + 538.80. Nice. I didnt mean to sell all my shares at 132, I wanted to sell only 1/2 and let the rest ride, with my stop at my breakeven point, but oh well.

Originally Posted by sidells

Woohoo! Fellow Traders!
-I trade FX.
-Part time, planning on going full time in another 2-3 years with sufficient equity and when profit consistency has been achieved.
-Learning./trading for about 4 years now.
-Im a Technical Trader.
-Use Price action, support/Resistance and Moving Averages.
-My Main Platform is Metatrader, as its simple and easy to use.
-I hang out at forexfactory or if anyone wants to have some trading discussions Im on skype. "ahsanfx"

What time frame do you trade from? Also whats your method for trading price action? Fibonacci's..forks..what? Thanks, and welcome to the thread.