My suggestion to you is to not trade any USD pairs, the banks feast on the USD and it is much easier to book profits on the lesser traded majors. Just my opinion.
1 Like
I understand totally what you are going through I think every one has been there at some point. I think you might find this little blog film very help full . I had herd of this before but it is made very simple and clear to understand. There is a blog as well and many more pod casts .
enjoy
all the very best
personally I no longer even look at anything lower than the daily chat any more . But it takes a while to scale up slowly slowly
Mr_Softee, no way I agree with that sentiment, no way at all.
USD is king and the most easy to follow along with the DXY,
We are traders ebb and flow, volatility is were we make out bread and butter.
The USD crosses are for the most part predictable.
Just my opinion.
Revenge trading is a psychological issue.
Extremely tight stops can also a psychological issue in some cases.
It’s all about loss avoidance and you’re trying to cover up those losses or you believe that you will definitely be right on your trade so then there’s no need for a large stop loss.
If you get stopped out then it’s just the market spiking and now you can get an even better price.
Naturally because you’re always right on your trades, you have an extremely high win rate but your losers seem to always cost you lots of money, you then get back in the market in your original direction.
The market goes against you further and further and you remove your stop loss or you keep adding onto the position and suddenly you have a very wide stop for a trade you didn’t exactly plan.
Learn to lose well. “Always ask, where am I getting out?” before you get into a trade.
Process over outcome
Stop scalping and try to trade longer term. Do not be concerned with making money every day.
3 Likes
I think you are using a bad strategy… maybe you should try day trader because scalpping it can be good but only for experience traders.
I’m gonna talk about my strategy:
4h frame
- I set one pair and then I look for resistance and suport.
Then I set for 1h and 30m:
- I look if the pair looks like what I saw in 4h frame
- I use rsi, MA (8; 20 and 200) and stochastic
- then if I like what I see I’m going to look for 15m to
Set my enter-position
I usually open 2 trades both with 25 Sl but with different takeprofit (remember the position that you open it’s really important to set your Stoploss always above/under the resistance/support). First takeprofit with 30 pips and the second with 40/50 pips.
If I won the first position, I move sl from the first to the breakeven.
If I won 3 trades= (40+30+40+30+40+30)= 210 pips
- I can loose now 4 trades and I’m willl winning 10 pips.
Your strategy needs to be about your winning trades not about your losing trades.
(Always protect the profits)
3 Likes
tjm, good for you!
Nyad, you got that right!
Zhadow, accept responsibility for you poor trading and fix it!
1 Like
Clearly you have a problem of stop loss, increase that bro, but dont make it a random number. instead, go as back in time as possible and do back testing and see how much your system is doing retracements before hitting the take profit.
Usually a 20-30 stop loss is a good number for the time fram you are using,less than that is too tight.
Also check in your back testing what is the average that your system can go, so you can also set a good take profit.
And use at minimum a risk reward ratio of 1:1 never less than that.
Have a good one!
Wow that’s awesome to hear.
I hope you are still demo trading?
How long have you been trying this particular strategy?
Don’t be discouraged, forex is not easy but if you master it you are set for life!
thank you for sharing your strategy…
use pending buy/sell stop orders instead of market order.
Let say u want to enter on 1h chart bullish engulfing u gonna have to place 10 pips above the high of that candlestick just in case the price doesnt move in its intended direction.
I do little forex, more CFds and indices but a chart is a chart!! I think the irony of technical analysis is that support & resistance is page 1 chapter 1… 1st thing everybody learns!. over time we start to look at support/resistance as the ‘simpler’ form of chart analysis.
The irony for me is that it is this ‘simple’ form of TA that the institutions use to fleece the retail trader - with false breakouts, S/L hunting etc…
i considered myself a patient and consistant trader butbhad the same problem - trade amost imedietely went against me.
Still rely mainly on sup & res… however I look for a trending sup/res line 1st, look to see a ‘match’ with a dynamic sup/res also and then see if any correlation with previous horizontal sup/res. get all 3 then I’m really keen but happy to enter a trade with a least 2 of the previous (sometimes I check out Pivot Points for further correlation - or confluence as I have seen the experts call it)… get all 4 lining up?? then I make sure the Stop is not too tight and I’m in. but as i said, normally happy with 2. a sup/res line approach or break on it’s own is not to be trusted…
apologies - probably too much of a mouthful…
Then, I’m sure you are trading against the market trend; just follow the trend! Use support-resistant levels properly.
It is normal thing face every trading . If you think trading easy you are mistaken. It needs more practice and training when your strategy works or you are enough experienced to think where strategy need to change. No one is perfect as a starter , have a patience to understand trading detail . Need to do more demo trading so that you will work smoothly.
If someone wants to learn a skill or sharpen it he will need to invest time and practice it.
This fellow colleague, trader, must:
- invest time in practicing and learning
- read a lot from experience and listen to others what they have done to improve their trading skill
- think about what others have done wrong and not to repeat by him self
Reading a book or someone comments gives you one level of understanding but you need to practice it.
Without practicing good trading you will not reach higher levels and eventually you will lose your money.
Supports, resistances, flags, channels…how many and all this is subjective. How do you define support and resistance? It is necessary to implement it programmatically, to write indicators so that you have a unique trading signal that can be tested on the history of quotations.
1 Like
Exactly, many miss this point. They just risk too much and end up losing much, basically you should invest what you can afford to lose at the early stages of your trades, this helps you monitor your strategies in a safer way.
Jenny while that is the thought, its really all about gambling and understanding the odds of how to play the game.
Again, a stellar answer, in my view - it’s key to be systematic with no discretionary input involved. If you’re using S&R then this needs to be derived from a fixed quantified set of arguments or rules. This approach can then be used on all potential trades; what i’m trying to get at is that consistency is king.
I’m sure that some discretionary traders make a killing by the way, but this is down to a massive amount of skill, experience and knowledge. I also feel that discretionary trading is not actually discretionary trading in a true sense - what it actually is, is your neuro learning network (your brain) recognising quantifiable repetitive procedures in the market (which completes the circle and brings us back to the importance of quantifying your trading approach). It really is the bottom line, you have to define everything into a set of “yes” and “No” rules whilst including ranges of numerical outputs that adapt to the volatility that the market is currently experiencing, without this adaptation your variables are remaining static in a dynamic market which is not smart at all.
I’m a massive fan of building trading systems that revolve around one key concept, and that’s adaptation. When I first learnt the importance of moving with time whilst aligning your system to the market my success immediately improved. The problem however, is that many of the ‘high street’ trading methods out there do not take this into account, they are static, they work in a specific phase of the market cycle and then lose everything - we’ve all seen the questions “why did I make money for six months and then lose my edge”… It’s a real issue, and one that is perhaps overlooked from time to time, although why would it be looked at when everything is rosy? It’s only afterwards when you’re scratching your head after losing everything that you start to look outside of the box
Save yourself the hassle now, take a step back and look at the bigger question. The market comes first, make sure you can quantify when a market is range bound or trending, when a market is in a boom or bust phase or a sideways phase…when a market is expanding or contracting over time - identify these key foundation building blocks and build a system around these individual phases; because I can assure you that not one static system will work on all of them, and that’s guaranteed.
If you want to make a shed load of money from this, then this game is not easy - I think it’s underestimated big time just how much work and effort it takes. But hey, with the usual sorts of advertising that we all see from brokers, on TV, on news channels and sports team sponsorships…I can understand why it looks like passive fun…
that is so awesome to hear!! But did you not read the stop loss lesson?