First I would like to thank you for your time each day to post your ideas and strategic ways of taking on each trade. I have learned A LOT from just reading and watching each day for your new posts, more so than reading from books because I believe prime examples (visually) are far more valuable.
I would like to ask about how you set your targets? I am, of course, a newb and I have been having trouble on setting targets to mark out scenarios and set profit spots. Also when you use Fib retracements and pivot points, which do you use to base your support and resistances? I get confused when I read your strategies and you use many different levels of support and resistance by different indicators because I do not understand why you choose to use certain ones. Anyway, thanks again for your advice in advance and have a great weekend.
From what I know with some good new analysis you can trade the news. As far as I can tell the guy in the video wanted to exit before the news but he got some good analysis so he remained in the market with a 10 pip stop.
I know news trading is dangerous and I do not endorse it. What I see happened here is that this guy had an open trade, he received good analysis and adapted to the situation. To me he seems like a professional trader because he is not scared away by a news report he rolls with the punches and adapts to his situation.
By watching this video I just saw a guy stay cool, calm and collected through a major news announcement. This is a rare quality and to me it shows that this guy knows his stuff.
Anyway I have tracked down who the guy actually was and he made a post saying he is not a news trader but he saw an opportunity and took it. That to me a real trader is someone who sees an opportunity and takes it, somebody who can adapt to market conditions in seconds. He said he was looking to scalp a few pips before the report but then he changed his mind when he received new information.
I may be wrong but I really think this guy made an awesome trade.
Here is the video again for anybody that missed it.
I agree that a true professional is calm during big wins, big loses and can quickly adapt to an unexpected situation. A professional can do that because they have self confidence for one, and because they trade in a disciplined manner. Trading in a disciplined manner, means you possess enough self discipline to stick to your own rules.
With all that said, if a person really does adhere to their self imposed trading rules, they in turn provide themselves with the latitude to make a conscious decision to step outside their little box and snatch a 'just happened to be there at the right time' gold ring every now and then.
I have survived the full blown college of hard knocks in trading FOREX. The biggest lesson I have learned is that to succeed one must be totally dedicated to following a set of proven trading rules. If one isn't disciplined, they are in fact merely gambling. Gamblers don't win nearly as often as professional traders. The gamblers high is gone as soon as the money is gone. I now walk a line that provides me with a professional trader's high, which is KNOWING that you'll always come out well ahead because you have discipline.
Good example was the last two days shorting GBP/USD. It was easy to take the +200 pips one day and another +100 the next. In the past I'd have placed anywhere from ten to 30 lots in one shot on the pair and let it ride. Made big money a time or two doing that with other pairs in the past. Also, lost half my account more than a time or two doing the same thing because of margin calls.
Just found this thread...am excited to learn more about it, and to even try it. Any thoughts or suggestions? Otherwise, I have just been reading everything and am going to follow the latest directions from Elang.