Hello guys,
I decided to share my wisdom with you and help you to become a profitable trader. I will share my trading setups, ideas and articles. I hope it will be helpful. I will appreciate your feedback.
I will focous on entry location, entry patterns and on the most important part of this business- trade management. Trading is a business as every other business. Be patient and you will learn it if you love it.
Adam Ondrejicka
I will focous on entry location, entry patterns and on the most important part of this business- trade management. Trading is a business as every other business. Be patient and you will learn it if you love it.
I have heard and read many negative opinions about scaling out. “You are limiting your profits”, “it is a total nonsense”, and so on. It so negative, and it is my favourite money management trick which increased my profitability a decreased my drawdown. What is scaling out and why it brings so many different opinions?
Everybody is telling us about scaling in and nobody cares about scaling out. I want to show you this very powerful method.
We have entered a position according to our 2bar reversal pattern at green line. On the first S/R level we had taken a partial profit. If market decides to go down, we have made some money and we are risking smaller part of position to take our stop loss order. Many trades will tell you that you were limiting your profits, but… Is it true? Do we know market will continue to rise? No, we don’t. We are traders; our job is to limit the risk. Risk is the only parameter we can manage. We can’t manage our profits. In this case we have decided to limit our risk by taking partial profit. We have actively managed our RISK.
On other S/R level we had taken another partial profit. I hope you have understood the principle of scaling out.
Why others criticize this money management method?
The problem is that everybody shows you historical data as I did above. We can see that the price is going up and we can say that taking profit with full position is more profitable. But do we know what will market do when we are in position? It is easy to say: “Do you see how it went up? You should stay in market with larger position”. But the reality is different. We have to limit our risk.
Another advantage: we decrease our fear by scaling out. It is another ignored factor. When we take partial profit we can be sure our position will be a winner (or at least, it won’t be a big looser; depending on your trade management).
Scaling out is an ego booster. You will decrease the number of losing trades and increase the number of winning trades. You can, for the first time, let your winners run with no fear of losing your big unrealized profit. If you want to understand this concept more deeply, check my trades.
Remember, the risk is the only parameter you can manage. Mastering this skill is a real knowledge and brings you better results than learning new trading concepts or trying new indicators. I have tried to keep this lesson as short as possible. I don’t like very long articles and therefore my goal is to make all articles as short as possible.
As I always say: Practise makes perfect!
In previous articles we have learnt how to identify pin bars and support/resistance level. It is time to put it all together to learn the most powerful Forex trading strategy. I will show you some examples of pin bars traded from support and resistance levels.
We trade pin bars only from S/R level to increase our chance of success. Not every pin bar is worth risking our money and we should be picky about our trades. Take a look on our GBPUSD (also known as “cable”) pin bars.
All marked pin bars (I didn’t marked them all) was formed on S/R level. This setup can be your best when you master it. The winning rate can very very high when traded correctly. You can trade this setup in every market condition. It is successful in trending and ranging market. It can show you the turning point of trends.
First pin bar was formed on the previous high level. The pin bar is very small but market Is not trending against our intended direction and therefore we can trade it. Successfully.The second pin bar was formed on previous high levels too but this time pointing to the other side. Do you remember lesson about S/R levels? We have been discussing that resistance turns into support. It happened this time. Successfully again.The third pin bar was discussed in our real trade section. You can check the trade here. Resistance turned into support and we have taken profit from market as it was offered.
Another chart I will share with you is AUDCAD H8 chart.
Firs pin bar is perfect setup. Price attacked previous low levels and then price bounced to the upside and we could take our profit. Another great trade.
I think you got it and you don’t need my commentary on other setups. You can master it and so you have to master identifying supports and resistance levels. You can draw much more levels and trade it. I have marked only few levels again.
Remember this: “No article will teach you how to trade. You have to practise. Open your chart and enjoy this business.”
Adam Ondrejicka
If you have some question, feel free to ask. I have created this theread for everyone, don’t hesitate to share your price action setups and ideas.
I have decided to open short audnzd because of rejection of previous S/R zone.
When the actual candle closed I have moved my SL above it’s high price. TP is placed only for half position.
I will update the post later.
Adam Ondrejicka
