I did Pipsology, traded demo, went live and lost half my account, and went back to demo.
I started Pipsology again, and started reviewing books I already read. I’m paying attention to JannaFx’s strategy and Pipsology’s lessons on trading breakouts. Shout out to Pipsology!!! Bo! Bo! Bo!
I narrowed my pairs to EUR/USD and USD/DKK (for now).
I’m looking for some feedback on these two set-ups. They’re both rectangle breakouts.
TP here is one-third of the most recent swing (same as the above trade). Two orders with same SL and TP: one long, if the breakout is bullish; and one short order, if the breakout is bearish.
I expect both trades to last about 7-10 days.
Please, let me know what I’m doing wrong, or right.
If my information about the trades is incomplete, please let me know.
As a swing trader you would trade a wide spread pair very differently than you would a narrow spread pair.
The spread on the DKK can go as high as 300 pips post session. This means that if price goes against you during that time your SL could be taken. This requires you to have very wide stops which increases your risk.
If you can watch the market while in your trade then DKK is good for day trading or scalping. You can then set a wide “catastrophic” stop while your actual stop can be closer to the price action.
Things work smoothly in a demo but when you go live it will likely be a much different experience. The DKK will steal your sleep.
Edit: I love to watch the price action on the DKK. It moves beautifully. I trade the DKK from time to time but I’m considering dropping it from the list of pairs that I trade. Not worth the hassle IMO.
It has. Bro, not long ago it entered a range. As soon as I decided to short the range (live trading), it didn’t go down, it entered a range within a range! It lasted about a week. I was stressed out.
But, yeah, the spread can get wide. If I’m profiting 5% after paying the spread, hey profit is profit.
However, I got stopped out a few times before I learned to widen my stops. It was a rough learning process!
yes, it has a simple movement and is very tradeable.
Anyone else trade the DKK? What do you guys think of the price movement vs the high spread?
Do you guys trade any pair that has a good set-up? That’s what I was doing, and honestly, it was too much for me to keep track of.
I need a better system before I do that again. I used to go through every single pair and look for set ups. But I would take notes in an Excel spreadsheet, forget to follow up on the pair, and miss out on the set ups I selected.
Total mess.
What are everyone else’s method like for choosing what pairs to trade?
Look to trade at most 2 pairs while you’re learning, otherwise you will get overwhelmed. Search the forum for Dennis’ “Currency Strength and Weakness” and bookmark the URLs for the various strength meters. Here are 2 currency strength meters:
@dushimes This does not just apply to the SL, but also your pending orders. Often when the spread widens after 5pm these orders can get triggered prematurely. That has happened to me more than once. I’ve taken all exotic pairs off my list because there are plenty more opportunities out there with the other 28.
@Trendswithbenefits has provided some great intell and strategies. Put trendswithbenefits into the search tool above to and you’ll get some valuable info.
Also, @Lang15 has some great vids on youtube. Search for the scruffy trader and it should get you there.
@dushimes, take a look at your 2 charts in your OP. Overall, what do you see? I’m seeing a negative correlation, a mirror image, which means if EURUSD breaks to the upside USDDKK will more than likely break to the downside. Try and pick a couple of pairs that don’t correlate as much positively or negatively.
With swing trading you’ll find that most pairs correlate to some degree, but so far I have found that AUDUSD (Blue line chart) and EURUSD (White line chart) tend to move independently enough from each other that you’re least likely to be double exposed on your trades. You can still see the correlation on the daily chart.
