There’s no argument that the majority of new traders fail and leave trading in very short time periods. There is very little information on why they fail. No doubt, poor money management is a key factor.
There is alot of information on why they fail. Money and emotional management are the main factors. entering a trade to early because they fear missing the trade, entering to late because they’re scared to lose money. Using high leverage because they want big money fast or using small leverage and playing it to careful and never making money. I mean Im no awesome trader but I know alot of legit ones who let you know straight up that if you fail then it’s only your fault. Im just learning myself at the end of the day.
As a noob I’d like to jump in this one. It both those questions, it would be high risk to go with the trend correct if it’s been week after week after week, correct?
No this is a fallacy. Unlike other patterns such as H&S, trends have no natural inherent end point. They continue until they end. In any trend, at any point after which it is established, there are 7 things that price can do next. The most likely of the 7 is simply continue the trend. Obviously all trends end but there is no way to calculate whether that will be after 6 days, 6 weeks or 6 months.
In any case I think Newgenfitness was suggesting that there can be no low risk patterns at all when the trader’s risk / money management is a far more important factor in total risk calculation. That’s his suggestion not mine.
Aw man. I was confident in my answer too. So basically, “the trend is your friend” is what applies here?
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I still have a pending order from the previous post but its not even close to being hit. In the meantime, I just entered into a trade I believe will be bullish. It’s Eur/Jpy on the daily chart if anyone wants to check it out. I took this trade because it touched what I believed to be significant support. Either way I’m comfortable with the small amount I’m risking. Im looking for consistency from myself more than profit at the moment.
Currently in a short position. Only downside is I entered only to realize this pair might be a bit of a slow mover. So I may have to hold it for two weeks.
Also have a pending order for some GJ buys. Alot of news for Germany this week so I may be extremely aggressive in leveraging (while being okay with the risk) if it were to go my way. If not then move on and wait for another set-up.
UCad currently in profit. In the next coming hours I’ll be moving my SL to break even. At that point worse case scenario is making a smaller profit vs a large profit, which is not a bad place to be. Ialso may add another position depending on how the market structure plays out.