Skimming all the information I've come across, there are a few principles/ideologies I consider my core in my thought process. Some might be familiar to you, whilst others, not really.
Price - candlesticks
I understand that fundamentals move the market, even though there's people behind almost every important decision. Algorithm trading is popular... although I'm not saying is profitable (I've played with some backtesting myself). Natural disasters or political turmoils will always threaten us as traders, but beyond all of these, price will be the absolute truth in the markets.
What you see in a plotted chart is not going to change despite any news release or 'talking head' on tv forecasting the end of the world.
Being price the only reliable indicator, any serious trader knows all traditional indicators are lagging from real price action. I seriously doubt there is an indicator that actually works. I have developed some aversion to indicators. They might be useful to see what others are seeing, but never to trigger a trade decision.
Price interpretation is the foundation... Candle patterns and wicks interpretation.
Support and resistance
Second to price, the most representative 'indicator' I consider is a horizontal line. Support and resistance play an important concept in trading, no matter the scale, from 1minute to 1month candle charts. Anyone can easily identify support/resistance zones at a glance, but the most important aspect to consider within these zones, is how price reacts to them.
Fibonacci - retracements and expansions / Harmonic trading
There's enough information about fibonacci ratios on the internet, but all my conclusions were made by observation. I was stumped when I came across to the harmonic trading approach. Some of my own conclusions were actually classified in patterns that I didn't know... ratios I didn't consider... concepts beyond my autodidact and limited experience.
Clusters of fibonacci ratios (retracements and expansions) represent zones of support and resistance.
Hail to Scott Carney!
Elliot Wave Theory
This one has fade away in time. Because I studied it quite a lot, I have those concepts always present. In some extend, they are related to fibonacci ratios so when a elliot wave count develop, I would analyze it. In some sort of way it is also related to harmonic trading as well. Maybe I dedicated too much time to elliot wave theory but I cannot say it was a waste.
I've learnt a lot from Robert Miner's publications. Some of my early elliot wave knowledge was because of Miner's work.
Patterns
This is a tricky one. There are lots of information about patterns, but some are commonly known... pennants, flags, ascending/descending triangles, head and shoulders, double top/bottom, harmonic trading patterns, and so on... they work and don't work.
In currency and futures markets those are common to see in any timeframe at any time, but in my pursuit of knowledge I'm came across with a lot more patterns, more frequently found on equity markets. Thomas Bulkowski is an authority in patterns. I've learnt a lot from his work. I never imagined what 'dead cat bounce' could possibly mean, until Mr. Bulkowski.
Long term trading - position trading / Millipede concept
These was a breakthrough in my trading. When I first start trading, my positions lasted around 1 day to 2-3 weeks, which made me a swing trader. Later on, in my last gasps of air when my account burst, I was a scalper, looking for extremely short-lived trades at over-leverage positions, leading to a margin call.
Due my experience, I certainly was committed to look for answers and start my endless journey, but luckily, I came across with Javid Shaik. Truth be told... I try to contact him for help, but at the time, he told me he couldn't; nevertheless, I've learnt a lot from his free blogs. Basically his concept is trend trading.
Many times I've read 'the trend is your friend' and 'cut your losses and let your profits run' but never really understand or incorporate the long term trading concept entirely.
Then, late 2010 I was lucky enough to come across a thread in a forum. Everything changed. Position building is now my main purpose in trading. Low risk entry for infinite yield chance. I don't have enough words of gratitude for Graeme Samuel a.k.a. pipEASY. I don't know him or even exchange words via email, but I consider him my only mentor.
This is it for now and forth... I'm a position builder. Some words from Graeme are in my head every day... I've read his thread a couple of times and some posts too many times.
Kudos to Master Graeme!
Anticipation, participation, low risk entry and growth. Nothing else is required.
..............................................................................................................................
At the end, it doesn't matter. It's all is relative. All work and don't work. I know for sure that any wannabe trader reading this page will lose money. It depends of each individual to develop their own skills.
.
