Ahead of the Brexit referendum, my brokers have increased the margin requirements of some of the pairs I trade to between 200 and 400 per cent. As I have a number of of open positions, I will be closing a few of them this week and watch others between now and next week Wednesday. For me, it’s better to stay on the side line until the dust clears over the Brexit ‘conundrum’. Trade safe.
It is important to focus on building a solid foundation for a profitable trading edge. This is a reason why newbies should not focus on the money while starting off in Forex trading. Losses will come but learning from them and developing the psychological stamina to trade without fear or greed are basic for building profitable trading edge.
Trapping the market will require using both high time frames’ S/R zones and your set-up time frame’s S/R zones.
Always remember: The market is not about one day of trading. If you suffer a loss, don’t lose your mind or do something stupid. If you win big, don’t go overboard with joy and excitement. Stay calm, humble, focused and keep learning.
If you would trap the market, learn to wait. Never rush your trade, never chase the price. Trade safe.
Before I commit to any trade this week, I’ll wait for a fill of the gaps created by Brexit last week Friday.
Ever wondered why some FX traders feel the need to always trade - even when their bodies are aching or they are endangering their health? Successful FX trading should give a good life balance but a somewhat endless trading regime/mode is, in my books, ultimately self-destructive.
I don’t hedge but martingale has put me in a lot of mess. If you ask me, each of them is a defeatist strategy.
I see adequate preparation as the heart of successful trading. Thus, as part of my preparation for the week, every Sunday I prepare my charts for all the pairs on my watch list and do a weekly top-down scanning of the pairs to see the 2-3 pairs that have the greatest potential for my successful trading during the week.
My trading model is what I see as trapping the market. Central to trapping the market is defining the boundary and boundary conditions under which you want to watch, stalk and trap the market. In the process of doing this, I use price-turning zones or levels and see how price performs across the time frames within the boundary. Thus, as a short-term swing trader, I often use 4H chart for my set-up time frame, but I scan lower time frames for efficient timing of trade entry and trapping of price action.
Just wanted to say that I really like what you are writing here. You are offering some sound advice about trading here that should be very useful to all who have ears to hear it and minds to observe it…
Appreciated. Trade safe.
To track the market, using a few complementary indicators will help. For example, you will be able to know how reliable a market move is, whether or not there will be a follow-through. Thus, rather than having a lot of redundant indicators, you choose at most three: e.g. one for direction/trend, another for momentum and, perhaps, another for volume. Trade safe.
During each weekend, I do an analysis towards trading in the ensuing week. This weekend, my analysis of the pairs on my watch list showed that only three of the pairs have the potential for the trade I would like to enter. I will be looking for a bearish trade on EURNZD and GBPUSD; although the potential for USDCAD is favorable, I am stepping aside for clarity until later in the week.
To trap the market, track the market with proper analysis first. Then wait for your setup to materialize. Never chase the market, never chase price. Trade safe, trade well.
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If you would effectively trap the market, patience is king. You would need to first analyse and understand the market, define your trading boundaries and conditions, plan your trade and decide the right strategies based on the market - then patiently wait for the best opportunity to strike.
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What is the primary target a trader should have? Consistent improvement in trading for better and profitable results.
I have just concluded my weekly scan and analysis ahead of this week’s trade opportunities. Among the 10 pairs on my watch list, two are clearly trade-able - AUDUSD and EURUSD - but I’m already in the market on them. Apart from that, I have EURJPY, GBPCAD and GBPNZD which I will be tracking for possible trade opportunities during the week.
It is very important to do a thorough pre-week scan and analysis (say each Sunday), leading to clarity on which pairs are tradable and may be traded, the directional bias on each of them, and the trading strategy and approach to adopt. However, it is equally important, in my humble opinion (imho), to do a mid-week update, particularly where fundamental shake ups have taken place or where directional clarity was not mixed or was uncertain at the point of the pre-week scan.
Thus on the evening of Tuesday of each week - latest at the close of the NY close - I check one or two pairs among the few I selected for the week for necessary update in directional bias, trading strategy or market structure/order flow change/clarity.