Yea I can see why you and other people choose not to. It just works for me and reminds me to think of support and resistance as an area, as opposed to drawing strict lines across the tops and bottoms of candles.
I basically look at the monthly timeframe, see where the market is trending and draw support and resistance lines using horizontal rays. I also do the same on the weekly timeframe. As you can see from the yellow lines, I also mark dynamic support and resistance areas to identify any patterns etc.
If I feel like the market has hit an area of support or resistance and looks to reverse, I’ll enter. I rarely use the RSI but, on this occasion, it just provided me with extra reassurance it was coming in from an oversold zone.
areas of support and resist, agreed, but how come it looks like might reverse? should u have a trigger or u go in on a hunch? i was looking at some trades u posted, may i suggest keep a % on any given trade? like say 2% risk on any trade, no mattter the circumstances…that way u can be concerned with the actual triggers, main directions and where exactly u enter as that counts a lot depending on how u wanna trade and if u have a risk tolerance like some with bigger accounts. u can tottaly grow that account, there s no limit, just go about it right and set a fixed % loss per trade, cos there are gonna be losing trades. make a dollar and KEEP It, and then make another 1 and keep that 1 2, if u manage to do that and not give back what u earned then ur gold.
if u do that and u split the risk per trade, opening multiple positions, like let s say pound cad, u open 3 position, but theyr total is equal to 2% risk, then my bad(mind u 2% risk per trade and pair) something like that i meant.
It looked like it was going to reverse because the price had already bounced off that dynamic area 3 times prior (photo below). When I looked down on the 4hr chart there was a strong bull pin bar while also oversold in RSI. That was my trigger and I took it - it worked.
I understand risk management, but tight stop losses don’t work for me. I prefer to use a 300-500 pip stop loss, risking 5-10%… that’s just what works for me.
It has worked wonders for me since I made those tweaks so I want to continue experimenting using that method.
ur strategy is ok mate, the biggest issue u have and u ll have is ur risk tolerence. with such a wide stoploss, u must either have a 90% plus winrate so ur winners outweight ur losers, or, a way bigger account then 2 or 3 k euros to be able to risk that much per trade and still survive. u have guts, i ll give u that, i d never risk so much lol, anyways, i hope i m wrong, but think about it in this way, if u enter around support or resistance areas, why the heck u need such a big stop? just set ur stop where u think the trade is no longer valid if it reaches that certain point, and that s it. i get that u wanna give it room, and it s ok, but for ur account i personally think it s just 2 much room, anyways, it s just my opinion, doesn t mean i m right
my initial stop was 18 pips, mind u that s the 1 hr tf, i set the stop where i think the long is no longer valid if price goes against me. then i just trail the stop or set break even etc
if price goes against u, depending on the tf u trade ofc, will break some areas of support resist along the way, at a certain point, u shouldn t hope that will finally go ur way and pull back… that s gonna kill u if u trade with that impression, cut losses faster and trail ur winners
Mate absolutely, and I really appreciate your feedback. I know that my strategy is far from perfect and understand it never will be.
I agree regarding your point with support and resistance but, they have proved me wrong so many times. We both know they’re not gospel and price sometimes travels to higher or lower levels and then finally reverses into the pattern I anticipated but, by then I’m stopped out kicking myself haha.
You’re clearly a much better trader than me with very good entries (looking at the picture you’ve attached) - nice trade man!
i m the best trader I KNOW lol. and i say that cos i have to be to keep the confidence and be sure of my analyses and not second guess myself. not better then u! ur strategy is ok mate, u just need to work on risk reward ratio and timing ur entries,rsi is lagging, using price action is the way to go. i wouldn t trade of daily or 4hrly with 2k in my account, or have such stops, not cos i m smarter or better, just i wouldn t feel comfortable to risk that much. try and set for every trade u take a risk %. that s what u should care about. cos for example if u have 10 trades, 5 are losing trades and 5 winning, then u broke even( and that s just a coin toss). but if u can have 6 winners and 4 lossers, like 60% accuracy u ll start to see progress way faster then u doing right now imo. i m just sharing my thoughts here hoping might help u, don t wanna sound condescending or anything, i was right in the spot where u are now, second guessing what s best and how to deal and cope with risk vs reward. u can have a crappy strategy, and still be profitable, it s all in the risk vs reward mindset and plan. anyways, keep up the good work and don t let bleeders kill u
another trade i m in, where was my innitial stop around 40 pips, and where is it now, and i let it run.u also could have certain points to take profit along the way, meaning taking half or a 3rd of the trade off the table when in profit. there are ways to go about it.
this is how it looks without heikinashi candles which i use cos makes the chart cleaner and smoother, but i m still trading off levels and waves, in this case my stop was 40 pips right bellow support few pips accounting for the spread and a possible stop hunting which brokers often do, but still 40 pips is 40 pips not 300. anyways hope this helps u, just try and let me know how it goes, cheers
forgot to say, don t trade during the news events lol. unless u really know what u doing and ur good with fundamentals. ussually that s when market makers hunt stops. and as a rule lol, u buy on bad news and sell on good news lol. don t know if u ve noticed but often when news are bad for a certain currency, price goes up and viceversa… that s the stop hunting and pre/positioning of large operators, so stay away lol
Nice this is rare case when I agree with technical analysis. Gold has very good chances to continue rally because of strong fundamental reasons, I’m talking about worsening outlook for the US economy and respective demand for safe heavens. It’s not a one-day or one-week long sentiments they will stay considerably longer because we are heading to downward leg of economic cycle.
As BabyPips has kindly mentioned this journal in their email shoutout, I thought it would be best I upload my transaction report again to show my +5.84% gain since opening this topic.
Hi mate…
I only saw the first prints about your trades and I think you’re doing wrong the tp and sl…
Why you do the Stoploss so long and tps so short?
Did you see the correlation about your tps and sl?
Yes we have to cut losses short and keep profits as long as possible. Most of us fail at this step because of psychological constraints (low tolerance of losses or overconfidence in your trading approach).
I congratulate you on your success. However, keep in mind that this might only be temporarily. You should be more focused on your previous lose deals instead of yachts and cocktails. See what you have exactly done wrong previously and try to improve it
