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Good afternoon!
If you are trading stocks, there a ton of stocks out there. Find a scanning
web service you like and learn how to scan for these setups. If you are
trading commodities, at the end of each day, assemble all of the daily
charts of the commodities you follow. Then walk through each chart with a
marker and mark up the charts that have potential trade patterns. This is
your homework every afternoon.
If you are only trading a few items--for example, if you are trying to
concentrate on E*mini S&Ps or E*Mini Nasdaq index futures, you may want to
change the time periods you are looking at. You are using daily charts to
identify major trends and then five minute bar charts of price to set up
trades. You might want to look at 60 min bar charts to set the tone of the
"major trend," for example and then use fifteen minute bar charts for trade
setups. Or 30 min and 5 minute. If you take the time to look at different
time frames, you'll see that each may give you a different perspective on
trend, as well as trade setups. I think daily and five minute may be too
extreme--but that's my opinion.
You also said the trades are high probability--so apparently you are making
money on the trades. Do you "want more action" because you crave the
adrenaline of trading actively? I am asking if you understand that high
probability setups are good thing--there's nothing wrong with waiting for a
trade to happen. You don't have to trade all day, every day. Or make a
trade every day. Or week. Over trading is one of the sins that many traders
make, over and over until their account is gone...If they are quality set
ups, make sure you don't ruin their quality trying to increase their frequency.
Joe DiNapoli--personally, I find all of his materials to be very
educational. For me, he's one of the good guys in this business. I have
Fibnodes software and use it in my daily trading. I have his book, "Trading
with DiNapoli Levels," and I have been known to poke my head in now and
then on his private forum boards. So personally, I recommend all of his
materials.
I use all sorts of fib relationships in my trading. I do use other tools,
but if you learn the fib tools and learn to a draw a few lines, you can
find some mighty good trade setups...day after day.
Last...Trading is about increasing the size of your trading account, not
entertaining you moment to moment every day with adrenaline rush after
adrenaline rush. If your current trade setups are high probability, maybe
you also need to look at how to calculate risk of ruin and what the
consequences of various trade sizes are relative to your capital. Careful!
I am not saying "Trade bigger!" I am saying "Are you trading the correct
size, given your trade setup probabilities and your personal risk tolerance
and your account size?"
Best,
Tim Morge
www.medianline.com
>I would really appreciate some advice please. My current trading system
>is to scan daily charts, look for patterns using fibs and then calculate
>pivots. Then I use 5-minute to enter trade, using patterns and fibs and
>go long only if above pivot or short below pivot.
>
>The problem is that though this gives me a very high chance of success
>it is v. v. difficult to find this combination of events all occuring
>together.
>
>Any advice would be greatly appreciated. Also are there any groups that
>use only fibs and has anyone taken the Di Napoli course that would care
>to comment on it?
>
>Thank you and Good Trading,
>
>Ketayun
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