Am I on the right track?

Ok interested. How the heck???

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They’re trading simply from the DoM (depth of market). It’s a “known technique,” I think more widely used by pro’s than by amateurs.

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Are you in Singapore? I’m at Changi, waiting for my flight :smiley:

Yup I believe it. Most discretionary trader will use PA. PA is the real king. :slight_smile:
By trading single pattern doesn’t mean not profit.
For example: double top and double bottom. If you can trade this one with discipline, I will make money. About making profit, it depends on instrument.

For example, you use single pattern Double Top / Bottom. The instrument is EURUSD, TF is H1. If you can analysis the trend, let say you use H4 or D1, you can have 2-3 position in 1-2 weeks. That means min: 4 - 12 trades each month. Target in this TF can be 20-50 pips.

When your win rate is 50% and RR is 2, the profit probability is around 60-300 pips.
Time to calibrate into your living cost.

For example you live in singapore, we need at least 3000 USD.

If we use 0.01 lot, 60 pips mean 6USD. To cover 3000 USD we need 3000 / 6 * 0.01 equal to 5 Lot each position.

By having account with leverage 1:100, you need at least 5000 USD. Having 2RR, meaning your Buffer have to be 2500. We need 50% for Margin Call, that will be minimal double the buffer. At least another 5000.
So the balance for this performance is 10 000 USD.

These are the example of formula to cover our living cost. :slight_smile: The formula itself is simple, the hardest part, how to be consistent :smiley:

Like I say, single pattern for succeed is possible, but can it be profitable and cover you living cost? That will be another story.
Next question do yo have 10k to trade? Or dare you trade using 10k? That will be another issue :grin:

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Hello everyone, sorry for the delay. My work takes up a lot of my time sometimes (something to consider if I really want to get into this trading field).

Thank you all for the valuable tips. I will study more about what was said here, and of course, I will make many trades and take notes on each operation.

On my end, I don’t have any more doubts for now, but feel free to share more knowledge—I’d really appreciate it.

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Liquidity. Limit orders that have yet to be hit… market orders to be hunted… liquidity vacuums where no one has placed orders yet… Exotic options with defenses… Vanilla options to be hedged. Stuff like that.

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It highly possible. Specialisation is the way to profitability.
You don’t need to be a jack of all trades to make money in the markets.

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Wow, cool. Thanks for all the math! I need to do some calculating on my end to see what’s possible.

USA east coast.

I gotta look some of that stuff up to better understand it. Know nothing about options.