49 of 51 people found the following review helpful
Too much trading going on,
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This review is from: Channel Surfing: Riding the Waves of Channels to Profitable Trading (Paperback)
This book has some excellent information in it, and I would not hesitate to recommend it for intermediate-level traders. With one caveat: It ultimately encourages you to trade everything that moves.
The channels soon turn into webs, and as we know, the nature of a web is that everything ends up connected to everything else. If you connect every high and every low in sight, price is sure to bounce off something. Unfortunately, you won't know what, where, or when until after the fact. If you try to prognosticate, you'll end up over-trading, and best case, nibbled to death by commissions or spreads, and tight stops.
I've been trading full-time for 6 years now. I've tried a lot of strategies. The best all-time performer by far is to trade with an obvious trend until it reverses enough to break the pattern or starts drifting sideways. I use trend lines, support and resistance, and simple channels. With the addition of money management, that's it and that's all.
It's been my experience that when you try to get too fancy, you shoot yourself in the foot.
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Showing 1-3 of 3 posts in this discussion
Initial post: Aug 31, 2010 11:17:33 AM PDT
Cameron J says:
Posted on Apr 14, 2016 8:46:55 PM PDT
H. B. Baker says:
A few examples of getting "too fancy" would have been helpful.
In reply to an earlier post on Apr 15, 2016 5:06:34 AM PDT
IMO, "too fancy" would be anything that isn't based on a simple trend line, the presence of which is explained by fundamentals.
My original post was in 2010. In the years since, I have dropped every technical analysis except the simple and obvious trend line.
I've also stopped playing with my trades. I place an alert near where I expect the trend to end, and I check daily to see if I want to move my stop loss up. A short-term trade for me now involves days rather than minutes. My ROI has improved significantly by trading trends based on fundamentals. Instead of staying glued to a 15-minute chart, I'm spending my time evaluating the global economy.
Having watched thousands of trends play out, I've learned the best strategy in most cases is to keep my hands to myself and my eyes off the chart.
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