Here are some thoughts and how I look at trade setups and a chart, I’m no professional and this isn’t the only way to approach trading. It’s just how I approach it.
First one is how I view support and resistance and how I find it.
OK, I’m done for now lol mostly cause I’m tired.
And of course it’s an easy chart to show support and resistance after the fact and yes they’re both winning trades. It’s not to fool anyone into thinking trading is easy but with patience, practice, experience it does get a little easier to spot the setups. Doesn’t mean you’re not going to ever be wrong, cause you are. But remember don’t blow up after one lost, look at your trading over a series of trades and backtesting. If you’re profitable through that then just know it’s a lost and part of the game. Please don’t fall for these advertisements of 90-95% win rates and blah…blah…blah. Not saying it can’t happen, but all the professional traders that I have studied none could careless about win %, they just want to know if they’re making money. Why you want to do it right?
But what to do if you’re not profitable? Well may be several things.
- Did I keep my emotions under control during my trading?
- Was I subjective during my backtesting phase? Did I cheat and know the outcome and thus skewing my results.
- Did I trust some random person to give me a strategy without backtesting it first? Thinking if I just did what they did I could make money too. Not really knowing if they even did any testing or if their only showing you the wins and not the loses.
- Did I backtest my strategy far back enough to know if works when the market is changing. I always go back 6 months at the least. That usually gives me a good series of trades I can judge from.
- Did I let my bias of the market effect my trading view point, not seeing the market for what it’s really doing but more of what I think it should be doing.
Just some thoughts… but really I’m off to bed now.