Good info, thanks.
The second link you posted is the one I use in parallel with a visual assessment.
Your paragraph regarding AUDCAD risistance has given me more to investigate… thanks, I might have to shout you a pint one day at this rate!
I hope others are learning something from this discussion too.
No worries mate.
I remember how frustrating [among many other things] it was learning to trade, so if I can make the journey a bit easier, then great.
I would say probably the most common mistake newbies make when trading after poor risk management [risking too much], is not taking enough price action into account.
When looking at the 15 minute chart, 3-5 days worth of price should be visable.
For the 30 minute chart; 1-2 weeks
1 Hour chart; 2-3 weeks
4 hour chart; 3-6 weeks
Daily chart; 1 Year
The above are minimums, really the more the better if its relevant to the long term trend.
A good example of price action view is XAU/USD [gold in dollars] at the moment. IF you were to look at too little you would probably think that gold is going to get stronger in the medium term and push past $1800. I do beleive it will push past 1800 and probably past 2000 and eventually who knows I wouldnt be suprised if it went past 5000 in the next 10 years, however I think it will probably come back down past 1600 first, because that is what the longterm price action suggests.
ps. I think a lot of newbies think there is a quick fix, crystal ball that will make them millions over night and ultimatley thats why most fail.
Hi hope your doing well and so is your FX account. by any chance can i follow you on tweeter? which i find quite quick to communicate. do you still offer signals to newbie?
Hi,
I am doing well and so is my account, thanks.
I dont have tweeter but I have emailed you.
Feel free to ask any questions.
Thanks.
Josh
Fasmail???
Guess not. Lol.
How’s your trading nick?
Bit slow… far too busy with work lately to give any new trades enough respect… maybe I could use a signal service!!!
My eur/aud short closed on my trailing stop for a 250 pip profit last week - how to best trail stops is something I’m still working on, but I’m happy enough with the profit from that one. Will re-enter if aud shows signs of picking up again.
Hi I am kind of new to Forex and I was wondering if I could get some tips with short term trading. I am shorting EUR/USD currently from 1.2825 and will be closing at 1.2783. I was wondering how to handle trailing stops with short term trading and see if there is any strategies I can benefit from learning.
It must be hard to do it in addition to another job.
Well… just so happens I know a good signal service! lol.
Trailing stops is an interesting one. I personally don’t use trailing stops, but I dont believe for certain systems they can be benificial. It really depends on wether your system is valid or invalid due to price action primarily. What I mean by this is, if a system is based on price action, support and resitence etc etc then a trailing stop doesnt really make sense because despite locking in potenial profit really its counter productive. The only thing that should shut a position based primarliy on price action is the price and the original stop or limit as these are the points of validity. Trailing stops can also be victim to spikes when price is volitile.
If however, a system is based more on moving averages, indicators etc, then a trailing stop may be a good idea as the indicators and trailing stop may work in tandem to help secure profits.
Trailing stops are a personal thing really and basically if the trader is unsure then test periods are a good idea.
Hello and welcome.
Your entry at 1.2825 in my opinion is very good!
Did this trade come in?
As said in the previous post trailing stops are a trial and error thing really.
What made you take the short?
Anyone shorting gold at the moment??
I think gold could see below 1600 in the next few weeks, which would be a great buying opportunity.
Then after, really the skys the limit!
Hi I am a new trader. Have just tumbled across this thread. I do like core price action trading. No indicators. I am short eur/usd @ 1.2960 with tp @ 1.2873. Gbp/usd short @ 1.6003 with tp at 1.5950. Any one short on these pairs? Reason for entry was a double top completion at weekly resistance level.
Hi Panchal,
Yes I am currently shorting both and your trades seem to be good. I think they should be profitable as long as the stops aren’t too tight and nothing unexpected happens today with the german numbers a 1pm [gmt].
Nice work.
Eur/usd stop @ 1.3012 & gbp/usd @ 1.6061 both above the double top. I am really hoping for the gbp/usd to reach 1.5750 over next couple of weeks. Hopibg to see a bearish pin bar at 5950 to take the trade further. How do u deal with such outlook? As in would you take profit @ 5950 n re-enter or let the position run by trailing stops?
Those stop losses are relavant and have been placed with regard to the last valid resistance in price, so thats good, some newbies just use a random monetary number ie im willing to risk £100 so my stop shopuld be here… which makes no sense. But yours are valid, good work.
They are reasonably tight with regards to your belief that the GBP/USD will continue lower, as I also agree with this.
Its really a toss up based on how confident you are that price wont pass that most recent high before it hits your PL.
I think thats a reasonably safe bet but the other option would be to either change your position or to have taken a larger pip position [still the same risk percentage] and go for the further away target along with a larger stop.
This is potentially safer but there is the risk that price wouldn’t go that low and you miht get stopped out at break even etc.
Its really a personal thing.
I prefer to go for slightly larger postions that are potnetially less risky and there of a more realistic regular return than smaller quicker trades taken more often that can be victims of news realises etc, especially at the moment.
I hope that makes sense.
I did consider shorting gold last night but didn’t. Hmmm… if only!
I dont think you should kick yourself too hard. I wouldn’t worry about missing a short. However I would definatley consider buying if it does come down past the 1600 mark.
Ive said it before but it will be very interesting to see what gold does over the coming years. I really think it could become a real bubble and the price could just sky rocket.
Guess we’ll have to wait and see.
ps. hows trading nick?
Not kicking myself at all… always look ahead, there’s no regrets in that direction!
I don’t like trading gold anyway, I can never figure out what it’s going to do, although I do think the next couple of years will see it past $2000. If it gets to $1600 then like you say, I will consider buying in for the long run.
Trading this week is a bit of a non event! Closed two position this week - one for +25 pips another for -25 pips.
I’ve opened my eurgbp short that I’ve been toying with for a few weeks. Stuck a stop just above 0.81, but no fixed target as yet. If it finds a daily close below 0.79 then I’ll set stop to b/e and target 0.775 or less.
Hi motormadj,
Thanks for your advice. Got out of the shorts yesrerday for mere 20 pips profit on both trades as the correction was coming too strong.
After looking at the daily candle I am forced to chance the outlook to bullish from besrish…
I use 10 & 20 ema for dynmic s/r… and both the pairs created nice bullish op in bar after touching 10 day ema…
Whats your outlook on it… flat on the market at the moment…