do you jump the gun once you spot an opportunity? ie. breakout, hitting support/resistance line
do you wait for confirmations first?
by waiting for confirmations first you often miss out some action but you still some piece of the pie
by not waiting, and acting on every opportunity, you’ll lose small every now and then but you’ll get the whole pie once you hit!
which options do you prefer? which do you really you use?
This is a prety discretionary area, and many traders will not have an absolute answer that covers all of their trading, I expect. Personally, I generally wait for confirmation (retest etc.) on my EOD trading (although sometimes will trade a simple break of a low or whatever), whereas for my Intraday trading I will generally immediately trade a touch of a S&R level (as I’m looking for a much smaller move), but again there are exceptions to that. So for me there is no hard and fast option, so I have had to go with the vague ‘it depends’ poll option, sorry.
You don’t react to an opportunity, you plan ahead, work out when and where these opportunities might arise, then stalk them, then if they turn up you don’t need confirmation, you’ve already had it, waiting for confirmations looses is you pips and a whole lot of money with it, so I cant vote, no options fit for me.
What I’m saying in simple terms is, I’d be trading at support/resistance not after the price has moved away from it, then you are chasing the market.
well, im just trying to see the general consensus
trying to see if the general population prefers the aggressive approach (act immediately)
or the more conservative approach (wait, confirm, then act)
Then in general file me under ‘conservative’ - even when trading Intraday directly out of a level, I will have checked that a number of factors are lining up in my favour (timeframe correlation etc.).
There’s conservative and there’s aggressive and there’s pitch perfect, most of my trades now don’t spend much at all in a negative balance, and I’m talking 10 PIP stop a minimum of 30 PIPS profit and anything up to 200 pip profit, can be more. I’ve worked very very hard and been down through many a garden path to get there, but finally what I started out to do I’ve got there, earning a living from from Forex for me was never good enough, I wanted to understand the why’s and what for’s of the market, and eat it, yum - mission accomplished.
It probably depends on what kind of system a trader is using. For example: If he/she is using indicators where you have to wait and confirm before you act , these might be fall under conservative. If he/she uses a Support/Resistance and or a breakout or simply chasing the trend/price, these might fall under aggressive. Granted, you can combine all of these tools to make a trade. I just use this as an example.
Like what you said above, if you act conservatively, you might miss a lot of opportunity because you are waiting for the “confirmations” to act on and you might enter a trade to late. On the other hand, if you act aggressively, you might act to soon. Sure you might hit that good trend but there is also a possibility that it is a “fake out” and turns against you.
I would prefer to be in a middle where I anticipate where the price is heading early on before I place my trade. A directional bias where I know right there and there I will see it forming right in front of me. So I don’t act out of fear that I will miss out or I don’t act out of greed because I know where it will end. This way, trading will be so much fun and easy when you know when to get in and when to get out. No pressure :)…
P.S: There is no right or wrong answer to your questions. The bottom line is if a trader is profitable…