Kolachi Method of Trading - page 6

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Let's clear this up

Cyclesurfer and everyone else

I signed up to Forex TSD just to post a reply to this thread.

Your replies sound so unhappy Cyclesurfer because you obviously have not learned this method and seen how powerful it is. Now that is not an attack on you at all, I understand there are 100,000's of methods, indicators etc out there, indeed forums like this are built on them, as are major con artists, $100 e-books and true cowboys. Newbies come to these forums to lose their money trading magic free systems promising easy money.

Let me put a few facts straight. Mr Kulache is an honest man who doesn't give his mentoring away for free. He has been so kind to me personally and helpful that to say these things clearly means you have never dealt with him.

You do not have to be a genious to figure out why he charges to teach you how to trade successfully for the rest of your life. Anyway, why should he? Wouldn't you charge for your learning services? His forum doesn't cost much to join and you can learn the system probably from the free stuff up to a profitable point IF YOU PUT HOMEWORK INTO IT. If not, you get the reward you deserve. Mr Kulache spent time developing a framework that gives us a great map to trade from. If you have a brain, you can learn a huge part of from these forums.

Now, someone posted (in the KM2 thread) that they were disappointed as his methods are very discretionary. I would say all methods that work are discretionary to a point, and KM/2 is no different. Auto systems fail all the time, been there, worked on that, stay away, trust me, if you're a newbie reading this: forget auto systems, learn to trade yourself.

As Mr Kulache says, success comes from trading a normal method successfully, not trying to find a holy grail method. KM is a a cut above a normal method I have found, I would class it a great method, but it will not trade itself. It is full of nuances. You have to get intimate with it and it takes TIME and EFFORT and WILLINGNESS and a POSITIVE MENTAL ATTITUDE.

It covers most situations on any price chart. It's like learning to read, then you pick up a book and read that book you chose. He cannot tell you what the book you pick up will say in advance (as he wouldn't know what book you decide to read), but he can teach you how to read in general, so YOU can read your chosen book. You see? You learn how to trade KM, so when various setups arise that you like to play (because they fit your personality) then you can trade them confidently... or choose not to.

I personally have been learning KM from beginning of this year and I am constantly impressed by the quality of analysis I can now make on a chart. I am learning and have more to learn. Yes, that's right, I have to learn it, not just wait for a stochastic to crossover or an indicator to turn green!! LOL, you all want a magic get-rich-quick MA crossover system that a robot can trade don't you?! Then when you don't get it, you move onto another system and lose again, and again, etc... and you end up declaring all systems are rubbish. I am guilty of this too. Now I am on the right path.

Yes support and resistance are EXTREMELY important for everyone to learn, like you said Cyclesurfer, that's great advice and I'm glad you mentioned it. And your comment on screen time and choosing just one pair at first - I wholeheartedly agree.

Everybody should learn this basic concept of support and resistance, then impose any good trading method on top of that knowledge. The best method I have found to impose onto a solid bare chart knowledge (after years of looking, testing, creating, crying) ... is simply KM. I don't even really look at KM2 much to be honest, the original KM method is brilliant.

What people don't believe is this: all we need to profit from the chaos of markets/price charts is "structure". That's it!! We just need a framework to work within. I cannot tell you if the EURUSD is going up next week. I just do not have a time machine or crystal ball. But if I impose structure and order into the chaos of price charts, then I have a workable reasonable logic to follow. If I can master discipline (the key factor), then I can follow this framework with a strong heart. The framework will never be correct 100%, but it will, over time, bring me fortune IF I can manage my money like a professional, manage the trade like a professional, and never second guess my entry based on my logical structure I have imposed on the chaos of the chart. If my structure/method/logic says buy EURUSD on Monday then ok I buy it. If I lose $100 then ok, no problem, my money management covered that - I had accounted for it. If I win, I may win $200, or just $50, or $1000 based on my structure, my method. But a positive mathematical expectation comes from a solid framework imposed over a solid education of basic chart reading. The framework that seems best as far as I have seen is KM.

You see? I win, I lose, I advance my trading account using a sound logical trading entry/exit method. KM is that method for me, and for many others. If you find that logic in another system, fine, trade it, make money, good luck to you.

KM is a wonderful system of structure and perspective; go onto Forex Peace Army review site (no I have NOTHING to do with them so you don't have to call me a site-plugger or whatever) and read the reviews to see if KM is a scam. See the praise. Read the various trading forums posts made by successful traders (not bitter loser traders) who used KM to double their accounts in amazingly quick time, and more.

Mr Kulache's own results he posts show his account equity grows predictably by a few % per week. He obviously chooses a well diverse and conservative approach. Others have made unbelievable returns using no doubt higher risk money/risk management models. Can you do that for 5-10 years without losing discipline and focus? Do you want to be a millionnaire?

Discipline is key: discipline projected on to a structure that is projected onto a sound knowledge of basic price chart principles.

Will you need money management? Yes. Will you need screen time? Yes. Will you need to use common sense? Yes. Will you need to take control of your trading? Yes. Hence: discretionery. If you don't want all this in a method, then I believe someone else has the holy grail elsewhere on the internet, search for it, it only costs about $10,000 and will make you rich in a week.

If however you want to learn a method that will set you up for life on the road to profitable trading, please stick with KM. Learn it, love it, you will be rewarded. But please, learn first: what markets you want to trade for cost reasons (spread etc), what timeframes you can trade given your lifestyle restrictions, what broker that wont rip you off, what money management to use (this is SO important), etc... you most have your collective trading method ready to go before risking a penny. Everything must be accounted for.

You will pull your hair out at first. You'll walk away from your PC and go for a cigarette in the garden because of stress. You'll get angry and swear and declare it doesn't work. That's because it takes a little time to "get it". When the penny drops, you will think "hang on, this could be good" then you will immerse yourself in the EMAs. Trust me, recently been there, done that.

Try this all you sceptics: set up the KM chart, forget any indicator (I agree with Cyclesurfer indicators are cr*p), just use the MAs. Turn off your price bars (colour them the same as the background). You are now left with the MAs only. Scroll back in time in any timeframe chart on your favourite FX pair. Tab forward one bar at a time (MT4 users use "F12"). Watch the MAs dance together. Watch and watch and watch. Then, when you get enough screentime, start to say "I think the 5WMA will drop here" or "I think the 5WMA will rise here". The 5WMA is a visual average of price. Price fluctuates around it allowing you to often get great pullback entries. In short, if you can judge the 5WMA, you can trade profitably.

If you can't be bothered, then ok go find that get rich-quick-system and never be a successful trader. I did that for years throughout last decade. Choice is yours.

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