Useful Trading Tips

  • Useful Trading Tips

    Posted by Laurenz Edama on July 26, 2022 at 8:37 pm

    Trading is an art, and the only way to become increasingly proficient is through consistent and disciplined practice.

    One tip I can give is, You have to understand your role in the market. Identify yourself and set some goals. When trading, work on your risk management and psychology. The battle is in there. You may have a better edge than others but if you can’t work on your risk management and psychology, you won’t be able to survive the market. The problem in trading is not about how you started, it’s all about how you finish. It’s not about how you enter a trade, its about how you exit. Did you follow your rules or not?

    At the end of the day, it’s a matter of self discipline and a right mindset. Also, never ever give up!

    How about you guys? Any useful trading tips for our trader friends here?

    Mihaly Kriminal replied 1 year, 2 months ago 3 Members · 11 Replies
  • 11 Replies
  • Mihaly Kriminal

    Member
    December 15, 2022 at 12:44 pm

    This is a very good place to share useful thoughts.

    But you don’t always have to invent something new.
    In the last 100 years, almost everything has been invented and tested, what is needed for successful trading.

    I will try to collect some of them.

    • Mihaly Kriminal

      Member
      December 15, 2022 at 12:47 pm

      1.
      Did you know that Andre Kostolany was Hungarian?
      Perhaps his most important teaching is the Kostolany egg, which shows market cycles.
      Buy – in accumulation
      sell – in distribution
      hold – in trend.

    • Mihaly Kriminal

      Member
      December 16, 2022 at 7:28 am

      2.

      Nicolas Darvas was Hungarian too.
      He was economist, but lived in America as a dancer.
      Then he made 2 million dollar on the stock exchange with his method named Darvas box.
      He bought when price did new high. He said new high means new force of buyers.
      He sold when price fell out from the box in a lower low.

      • Samuel Junghenn

        Organizer
        December 16, 2022 at 8:42 am

        I remember seeing an analysis of data over about 20 years. They compared buy the retracement to buy high highs and buy high highs outperformed it by Mike if I recall correctly.

        • Mihaly Kriminal

          Member
          December 16, 2022 at 11:42 am

          It is really interesting…
          Because retracement is very fashionable nowadays (for example Inner Circle Trader / Smart Money Concept)
          But tell you the truth, I prefer using complex market view to a single strategy.

    • Mihaly Kriminal

      Member
      December 19, 2022 at 7:40 am

      3.

      George Soros is perhaps the most famous Hungarian trader.
      He says “the market is always wrong”.
      He looks for situations where the price is overrated and there is a divergence.
      He likes discretionary decisions, optimal SL, and position building.

      In 1992 he earned 1 billion USD during 1 day against GBP (position size was 10 billion USD).
      It is not too difficult for traders: he saw that GBP had still high price before decisions of BOE.
      This picture shows it (it is very interesting, I found it recently).

    • Mihaly Kriminal

      Member
      December 21, 2022 at 8:04 am

      4.

      Richard Demille Wyckoff was the one of the five “titans” of technical analysis.
      He founded „The Magazine of Wall Street”, wrote a lot of articles, researched the market and made interviews with famous traders.
      He created his own theory about the market.

      I think the fashionable Smart Money Concept is very similar nowadays, only the designations are different.
      Do you see the similarities?

    • Mihaly Kriminal

      Member
      January 12, 2023 at 11:47 am

      5.

      Benjamin Graham was father of quantitative fundamental analysis.
      His number is one way to calculate the fair value of a stock.

    • Mihaly Kriminal

      Member
      January 21, 2023 at 8:36 am

      6.

      Warren Buffett’s method ( as Warren said “85% influenced by Benjamin Graham and 15% by Philip Fisher”) is very simple: buy a good stock cheaply, below its intrinsic value, and hold it.

      There is no necessery to use stop loss in value investing, because there is a margin of safety.

    • Mihaly Kriminal

      Member
      January 23, 2023 at 2:49 pm

      In investments (e.g. investment funds, shares), it may be more beneficial to buy regularly instead of using a stop loss.
      It is the cost average effect.
      If the price cheaper, we can buy more shares for the same money.

    • Mihaly Kriminal

      Member
      January 25, 2023 at 5:54 pm

      Do Seykota’s 5 rules help you?
      Which one can you use in your strategy? Which one is most difficult to apply?

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