I have really tightened my trading, evaluating different combinations of indicators and I have a total grip of where I have my support and resistance levels.
I use slow stochastic (8,3,3) + 2 exponential moving averages ema(4) and ema(10) on a 15min EURUSD chart. When the ema(4) crosses the ema(10) from above and the stoch is heading down and hasn’t yet passed the 50 line I sell. And of course, when my ema(4) crosses from below and my stoch is rising strongly but hasn’t crossed the middle, I buy.
My goal is #1 Not to lose money, therefore once I have 10 pips I move my SL to the +/-0 line. #2 Make money, I try to lock in 20 pips with my SL and if it continues, I just hang on.
When evaluating the charts one can see that these indicators for the most part is right. Not always but there is a overwhelming probability that the price will continue at least 10 pips after the conditions met above.
Now to the problem. I can get 5-7 pips but only for a few seconds. This can happen several times during several hours. For most of the time my +/-0 line appears as an unpassable wall. I think that I should have well over 50% probability on my side unless the entire world has gone upside down since I entered the trade.
Why is the price bound to go against me and take my stop loss with about 101% certainity? It feels like I’m fighting plain bad luck making myself look stupid messing with indicators.
Why is it so hard? Looking at history indicates that I should be right more often than not but if I trade I’m wrong every single time. If I say that I should have done this or that but for some reason stay out then I’m right of course. Every time!
You’re trading indicators and not price that is the main problem with alot of people.
Price should be your main concern, price action creates S&R and patterns. however S&R and Patterns are not tradeable just by their apperance on the chart, the current action of price after the pattern has formed has to be valid as well. I am talking on the tick level. However…
to keep it easier, trade S&R or patterns, candles not triangles and stuff.
Do not worry about fib levels, channels, ema crossovers…
you won’t need to worry about those when you are scalping off the 5min charts or less, you can enter a trade and instantly be in profit 3-10pips, close the trade and be up 3-10% on your account.
if all the trades seem to hit your potential take profit then you’re problem is your stop loss. Try setting a larger one. Depending on the time frame there could be a 40 - 50 pip retrace before continuing on the perceived course which would eventually hit your take profit.
Try that for a while. If that doesn’t work then I’d suggest trying a different trading plan.
Personally I never use moving averages. I never liked them and have never had good results while using them. But again, what works or doesn’t work for me might be the opposite for you. Just keep plugging away.
This is my first post here so I hope I don’t say the wrong thing but here it goes.
I will try and forward the coaching I have obtained from my mentor.
In the past (which is less than 12 months), when I said the same sort of question to my mentor he would mention too me the language that
I was using saying “be careful in what you say as the words that you are using are greating your world”.
The question I had asked was “why is it that all the other guy’s you are teaching do so well and I am finding it so hard, how stupid am I.”
He then took me into a conversation about belief systems for an hour or so, basically saying that the conversation that I have running in my head is ruling my trades with an iron fist. Then we went through my trading results and analyzed every trade and he pointed out where I was believing that I was following my trading plan but actually I was not, I kept missing things along the way.
Now what I am suggesting is keep a dairy about your thoughts as you trade as this will give you a insight in how you are approaching your trades and identify area’s in your pyschology which you may need to work on to allow you to trade with freedom and ease, because as my mentor kepts telling me and I’m finally starting to understand what he is talking about now and that is “Trading is a game, a very simple game its only difficult because we tend to believe that it should be difficult, the only challenges we have as traders is dealing with the 6 inches between our ears”
Balto, I think I wrote to you in another forum, but let me ask you kind the same, what is the problem with trading indicators and no price action? Thanks
This is just my take on the market. But indicators should only be used to help define direction. Price should be what gives you the signal to go long or short. I hate buying/selling off indicators because you often get in way too late and get out late as well. Hope that helps
It’s difficult because the setup works when price is trending but when it’s choppy look out. You’re going to get frustrated. Maybe now’s the time to learn to trade without using lagging indicators.
Also remember you are trading with or against HUMANS not indicators.I keep telling people you can’t just learn forex and indicators,you got to understand the financial system/markets.Nobody should use more than one month to learn forex or charts.Successfull traders/investors are normally economist or people with degree in buisness/finance/accounting.Ask yourself,are you trading forex to take advantage of your own country’s currency appreciating or hedging against depreciating or are you a speculator? If you really understand the forex market you will not trade it,to me forex is pure gambling.I will suggest watching a lot of CNBC, Bloomberg and other financial network or websites to pick the crooks/wallstreet brains to help you know what mood the streets are in.GOOD LUCK
