To cut the long story short, I'm writing this post because I feel responsible to "caution" any readers regarding any other posts I've written in the past. No doubt trading is a continual journey of learning, and all traders start somewhere and pick up various things along the way, some good, some bad. I went through the same process, and my learning will never stop. However my entire view of price action changed after studying Mark (owner of LJ Forex Group)'s material, it is price reading in the purest form and makes total logical sense.
As such, I just want to inform any readers to ignore any of my previous technically related post, be it strategies or vendor recommendation. In hindsight they're all crap. I'm particularly concerned because many of my top visited posts contain very amateurish material and recommendations to vendors which I no longer endorse. I just want to say this: candlesticks patterns are meaningless, it is ridiculous to only trade the higher TFs (H4 and above) with the excuse that the LTFs are just noise, claiming you only need 3-5 trades a month to trade for a living is also a senseless inefficient use of time. Gosh I'm tempted to state so much more, but I shall leave it at that, and shall avoid citing names.
In summary, I think in any craft it makes sense to seek out the best and learn from them. As far as trading is concerned, Mark is by far the best trader I've come across (and I do patronize quite a number of forums/sites). Add generosity, willingness to share, and a gift for teaching to that and he is really a gem. These days I devote entire days and wk ends solely on his material, and really hope to be able to achieve the kind of price reading proficiency and success that he is enjoying now.
Mark often tells his students that it is very important to research, back test, practice, and work things out for themselves. That is the way to improve and gain confidence. A good trader should always have an inquisitive mind. I'm trying to live out that advice, and guess that is also the advice I would like to offer to any reader.
All the best!
hey myst nice nice. Hope you are doing good
ReplyDeleteDoes this mean you no longer agree with any of the James16 strategies?
ReplyDeletehi, Myst1z, i've actually noticed and followed your posts and comments from RTM to your blog here. I do agree that LJ is a wonderful course/service. However, seemingly you are no longer favoring RTM's stuff? I do know IF is indeed a great trader, but the materials on RTM are misleading? or not worth focusing? Also, Red's "Price is Everything", what about that thread? really love to hear your opinion. we traders should be free to express honest opinion and maintain decent respect, please don't refrain doing so. Thank you.
ReplyDeleteH Yellow Submarine, thanks for the comment :) To be honest I've not truly dedicated enough time to fully understand RTM's and PIE's material, so it wouldn't be fair for me to disprove them. Personally I felt that RTM's concepts seemed to make sense, but they were multiple pieces of a puzzle which I never did manage to put together. Perhaps the new academy would help to serve that purpose, can't be sure. I guess it also has to do with trader personality. If I'm not mistaken (and I might be!), RTM traders will hold on to trades even through huge draw downs, and that didn't really click with me. For etc a trade could be 5R in profit, they'll stomach a 4R draw down from there just to make an additional 1R. It didn't make sense to me from an ongoing risk-reward perspective, and its psychologically very hard to do so too. Also, there were many engulf trades that didn't work and I never did figure out why. Of course I might have found the reason if I had the diligence to keep studying and asking.
ReplyDeleteLJ is a momentum trader, and thus most of his trades move to the TP very quickly, that really clicked with me. I must say though that the real meat is in the PA course and ongoing support, the free strategies are nothing compared to it.
Chris12: Yes I no longer agree with J16. I would say it is a decent source of education for beginners, but there are many misconceptions and erroneous beliefs in it and I feel it might be hard for one to shake them off once he is grounded in them. Some food for thought:
1) Do you think a true professional trader is sitting in front of the screen whole day just waiting for D1/H4 BEOBs/Pin Bars?
2) What actually is a BEOB/Pin bar and why do they sometimes work but other times don't? A H4 pin bar on a NY close broker might not be one on another broker, how does one reconcile that? Isn't a HTF pin bar/BEOB just a strong rejection on a LTF? If so, why is there a need for there to be a physical HTF pin bar/BEOB in order to take a trade, why isn't the LTF strong rejection enough (coupled with other factors of course)?
3) With only a handful of small R trades each month, how big must your account be in order to make a decent profit monthly? A 80-90+% win rate means nothing if it is at the expense of trade frequency and the R profit per trade.
The thing with J16 is that they're well intention-ed (Mike is a very helpful and nice guy), but the level of skill and PA understanding just isn't there. The returns are as such meager compared to what a true professional full time trader can make. Sometimes I wish I could just get them to study supply/demand so they'll know what they're missing out on.
All just my two cents worth, no bashing intended and I've come to realize that differences between traders will always exist due to different personality and trading style, hence what clicked with me might not click for others and I totally respect that!
very helpful, thanks for your insights! i actually feel the same thing about J16, too many unfounded beliefs there...... nowadays, I'm more interested the path of successful traders, and what they believe (and not). Thanks again for sharing yours.
ReplyDelete" it is price reading in the purest form and makes total logical sense."
ReplyDeleteInteresting. I wonder what do you mean by pure. Is it the right way to analyze the chart?
And you said you've crossed chart pattern off the list. What about the old S/R and S/D?
"LJ is a momentum trader, and thus most of his trades move to the TP very quickly,"
That's nice. So I guess most of his trade use hard TP.
Gotta agree with the back-test part.
Hi Sapiktor, its hard to explain in a comment so I've written a post to illustrate what I mean: http://myst1ztradingblog.blogspot.sg/2014/07/usdjpy-trade-typical-pa-vs-true-pa.html
ReplyDeleteAnd yes he uses hard TP but might manually TP if price starts stalling close to his TP and the ongoing RR is poor. He will also trail his SL.
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