This is what i do every day, every week...every month

Beginner Questions
1

Hi guys! I Want to share with you my way of trading! :smiley: I´ve been in forex more than 2 years, I consider myself a day trader, and i usually take 2 or 3 trades a day. This is what i do:

Pair: EUR/USD
Max. Risk: 1%-1.5% per trade.
Type of trader: DAY TRADER.

I have 3 charts:

  • 1H
  • 4H
  • Daily

Every day at 5:00 pm EST, press CTRL + Y and:

In the daily chart identify: High and low of the previous month (blue dotted line). This must be updated only at the beginning of every month.

In the 4H chart indentify: High and low of the previous week (green dotted line). This must be updated only at the beginning of every week.

In the 1H chart identify High and low of the previous day (yellow dotted line). This must be updated everyday at 5:00pm EST. Also update pivot points every day (big red line for the central PP and thin red lines for the rest)

At the end you have 3 charts that show you have the charts look like.

Price most of the time cross the previous day, week, and month high and low. So every day, week and month you can have an idea of where the prices are going. Based on that, the first step is to decide if you want to go short or long for the day.

Take a look at the daily chart to see the big trend and find any signal that tells you where price are going today: up or down. The signals could be:

  • Candlestick patterns: morning star, hammer, etc
  • Gaps to be filled
  • Economic reports
  • If prices where down all the week and today is Friday, then there is a big chance prices will go up.

If your choice is SHORT, then wake up 30 minutes before asian session opens at 7:00pm EST and try to find a good place to enter.

If your choice is LONG, then wake up 30 minutes before London opens at 2:00am EST and try to fin a good place to enter. Pivot points are more reliable during London open. So find a nice support around S1 or S2.

If you miss the opportunity, don´t worry, you can trade during US session. If you want to go short, price usually goes down when NY opens (but I wouldn´t suggest to trade around this time, because of fundamental announcements). The most active hour is from 10:00 am to 11:00 am EST.

So for me, the best times to trade are:

  • London open (2:00 am EST): Nice trends start to develop at this hour. Also because you don´t have release of very important news.
  • US session between (10:00 – 11:00 EST): High volatility.
  • Best days to trade: Wednesday, Thursday, and Friday.

STOP LOSS AND TARGETS

My way of trading gives me a high win/loss ratio, that is way most of my trades have a Risk/Reward ratio of 1. My stop loss is between 15 and 35 pips (depends of the analysis you made). As soon as prices reach the same amount of my SL, then I take half profits and move my SL to break even. This increases my risk/reward ratio.
TIP: My targets usually are high or low of the precious day :slight_smile: The key is to decide which one! up or down? :slight_smile:

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2

Finally I want to share with you my trades on my live account this month. I have nothing to hide, and I want you to see that this works. I have been making 15%-17% every month for the last 6 months, so after two years I finally find myself making money consistently. I divided it in two parts (it was to big):

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Fell free to ask any questions! :smiley:

3

I enjoy when people post their trading strategies and theyre similar to mine:D. Might I suggest adding in the psych levels? (1.4, 1.41 etc). Youd be suprised how many times price reverses on these. Another thing, have you tried this on GBP/USD? It is positvely correlated with EUR/USD (like 89%?) but it moves more so you can grab more pips. Also, because it moves more, the psych levels are hit more frequently which allows for more and higher win % trades. Just some ideas that I use, hopefully they can help you.

Another thing too, the EUR/USD can be used as a legit leading indicator for GBP/USD, just look for divergence between the two near a support/resistance level. Also, the DOW S&P 500, and the Nasdaq can also be used the same way, just look for divergence near S/R. You really dont need these, but they do give higher win % trades every so often, quite frequently actually.

Remember, if its not broke dont fix it. You look like your doing well, dont feel like you HAVE to use anything I said, im just trying to give you some more ideas.

4

The thing is that, i do use some secundary tools, like the ones you mention, and some others like fibonacci, but they are just SECONDARY. I try to keep it simple :smiley:

5

I include fibs as well, I just look for a confluence of S/R and trade accordingly.

6

I´m a day trader, so this is the way i use fibs: If my analysis tells me that price is going down today, then i will draw a fib from yesterday high to yesterday low and find a good retracement area to enter short. The signal is stronger if theres is also a pivot point or a resistance line around that area :smiley:

The same for going long…

7

I use them in many ways, mainly just to spot retracements of the current trend, could be on day, could be a week or more

8

This is my analisys for today. I think price will go down next day because:

  1. There is a gap that need to be filled
  2. The low price for today is 1.3544, and price most of the time crosses previous high or low.

So i will look for a good short opportunity at the Asian open (7:00pm EST). Then i will wake up before London opens and find a good support to go long.If price fill the gap, then the gap will be a very good support, and if there is a pivot point around that area, much better.

If during the asian session price goes up and crosses today high, then i will reavaluate my strategy for today :smiley:

9

I think it will go down simply because R Carters MA crossover technique triggered a short today.:smiley:

10

Price closed to close to the day high, and between the central pivot and R1, so i´ll wait until London opens :smiley:

11

I went short at 1.3640 next to the R1 pivot point and the 15M down trend line. Very good resistance point. I traded two lots, one at 1.3640 and the other at 1.3632,and already closed the first one. My other lot i already moved my SL to breakeven at 1.3632, and price is still goind down!! :smiley:

If i´m going short i like to trade when NY opens, they usually take the EUR/USD down ! :slight_smile:

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12

Closed my second lot at 1.3612 :slight_smile: More than 2% of my account increased today :smiley:

Let the market come to you! :wink:

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13

good job, my short just triggered at R1

14

Be careful with that short…high volatility coming after 10.00 am EST…

15

I told you :smiley:

16

I’m out right now, if its a loser its not biggie, + I think we have different pivots because I set mine at a different time. Ill check on it later

17

I take my pivots from dailyfx: Forex Pivot Points

And so far they have been working great for me. Take a look at my 15min EUR/USD chart, look how the pivot points acted as support and resistance :smiley:

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18

I get mine at 12am EST, and ya im still in the trade, if it goes higher ill close it but for right now it looks like its respecting the resistance, remember I trade gbp/usd, so our charts might be a little different

19

Greetings. I was reading your thread on eurusd which I trade almost every day. Now that the gap is filled I’ll be watching for a bounce up off the filled spot. I won’t trade it until I see it though. I try not to step in front of speeding trains. Have a good weekend.

20

I really like this method of trading. It is very close to what I am trying to pull off. I just swore that I would never rely on any indicators at all, just price levels (S/R, trendlines, pivots, fibo’s), candlesticks, and moving averages (just to get an idea of trend).

A few questions:

  1. How many trades do you average per day/week? Ever go a day without a trade?

  2. Any COT reports or other fundamentals?

  3. What do you do if you’re trading London and there’s European news? That can hurt too, no? You keep CNBC going in the background or have some newsfeed?

  4. Average stop loss size? Average profit target?

  5. How many things do you look to confirm (points of confluence)?

  6. So it took you 2 years, now I don’t feel so bad that I’ve still got a burn rate (this May will be the first anniversary of opening my demo account on FXCM). So how did it go, you had a burn rate, then broke even, then finally profited? How did your peaks and valleys go on the way to where you are now?

Thanks for sharing!