Hey all so as I trade the 15 min time frame, just wondering how long when I have open position should I hold them for, when I enter a trade I enter 2 half trades one with a risk to reward of 1/2 and then when that tp has been hit I move my stop to break even and ride the rest of the trend. When I was going through the course on this website it said that day Trader’s close there positive position at the end of the trading day. Is that something I should do or can I just trade as I will if that makes sense. I don’t usually go bed too early either so could I open trades when the UK market is closed for the day too. And the trade during the other trading sessions. Thanks again appreciate any replies
First off, I would say that technically day-traders close their trades - BY - the end of the day, that does not necessarily mean - AT - the end of the day.
But the second issue is, what is the end of the day? For all practical purposes, the bulk of trading ends when New York office hours end. Yes, forex continues to be traded through Asia and Australasia through the night but the volume has dropped to very small levels until London re-opens.
Maybe a more fundamental question is, how did you decide where your TP should be, before you even saw the trade TA?
When plotted my Higher time frame s/r levels when I get my signal I see if the trade can get a 2/1 risk to reward up to or down to that next zone.
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It all depend on your strategy. The main rule is that you shall not leave your intraday position opened overnight unless you planned it in advance (before opening it). In other words, you shall close all intraday positions in the end of the day even they haven`t reached neither stop loss nor price target. Many traders, especially newbie ones, make a huge mistake leaving loosing intraday position overnight hoping that it would move in favorable direction. This approach is wrong and often leads to losses. So, it is important to close all traders in accordance with trading plan.
It seems you are trading support and resistance? You should know your trading system just as you know yourself. This include knowing where your TP and SL will consistently be anytime you detect your trading system formation. So I ask again, what is your trading system? All your questions revolve round it. We can also give you a reasonable TP and SL with that information.
Well with my strategy I’m currently testing. I put on 2 half trades one with a tp an the other one I leave running
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Ok my system is plot s/r levels on 1 hour time frame, look for a trend on the one hour using the 200sma, 50 ema and 20 ema. If all three are moving fanned out and pointing higher that’s my signal for a uptrend on the 1 hour, once I’ve established that I drop down to the 15 minute, all the moving averages must also be pointing higher and fanned out. The zig zag indicator must plot 2 higher highs and one higher low, drag my Fibonacci tool from the bottom of the impulsive move up to the top. Price must then correct to Either the 38.2, 50.0 or the 61.8. To add confluence price must also be at the 20 ema, 50 ema or inbetween them. Using my stickastics as my entry trigger once it crosses from the over sold area. I then use my higher time frame s/r levels for where it could potentially go to so I pace 2 half trades, one with a 2/1 risk to reward. The second I move stop to break even once the first trade hits my tp then leave the other trade running moving my stop under each new higher low made. This also applies to a down trend. Thanks
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I see that sometimes you trust your system so well not to set TP, you feel it will keep riding on to your direction, you clearly have a system so be very discipline enough to set SL and TP, no one is to be trusted not even your system. Your system is not bad at all, always keep your mind open to improvement and adjustment.
Just concentrate on your trading system, it should tell you when to close your position. Your trading system was well layout by you, you should know when a trade would no longer favour you. This information should help you set SL. You should know the safe point to TP from your trading system too.
Oh forgot to mention I place my stop loss just below the next fib level so my trade has enough room to breath