Hi Nikita,
I like your trading styles. its simple. set and forget it. so, can you help me to understand your style.
first, we check the Daily TF. for example, EU at ±9am GMT+8, try to spot the yesterday candle. then we start entry at London session open 3pm +GMT8.am i right?
what if i cant see the trend on EU DTF,whether its BULL/BEAR. meanwhile at AU DTF shows bear, and GU shows bull. which one should i follow?
about the HH and LL plus reversal CS pattern, we spot it at TF1H or TFDaily?
That’s the problem with being a price action trader, you have a higher chance of losing a lot of money, very quickly.
More money is lost this way, then with any other strategy, big lump sums of capital, rather than small risk since that is how price action sabotages one in when setting up trades.
Price action should not be used without an indicator
I disagree with your statement… Price action works alone without any Indicator.
You have no Idea about what she said. She had hit a big loss that day because she took high risk. (I remember that I read somewhere here that was a $6000 and saw many times about her risks per trade (7%, 10% etc. etc.)
Don’t Judge anything if you don’t know them completely.
Any approach to trading will lose a lot of money very quickly if poorly executed. In my view, indicators can have their place - I use one from time to time - but I completely disagree that PA traders are more likely to lose money quickly, and that PA should not be used without indicators. A combination of PA and S&R can be traded very effectively.
Price Action should not be used without understanding would, in my view, be a better form of words.
Well, she might have took a high risk but the main thing was that she din’t use any SL which is precisely the reason she lost that wholesome.
Even if you take 5% or 10% risk, you could limit it to a certain point using SL but you need not bet the whole euqity on a single trade.
Everyone has got their own trading style. May be you good at using PA along with an indicator. But saying that PA doesn’t work without an indicator is just lame…!!
You dont see whats going to happen, than you dont have a trade. One of the basic rules.
Newbies have this thing that they have to get rid of.
The need to be in trades.
The need to take the next trade that would bring in more pips.
Mature traders who have been around on the other hand trade very few set ups, if compared to when they started out.
Correlation all haywire? Cant decide? AU is contra to what GU is showing and EU is just ranging? Than leave it and just watch it play out.
Remember, the name of the game is to protect equity at all cost, not to be profitable at all cost. Its very easily said, but it takes alot of practice and discipline to reach that stage.
I have stopped dragging the cursor from a point that I wanted to enter but did not and to where the price is now, cursing at the pips I could have had. Use to do that every other week. What has been missed has been missed. Period. Nothing comes out of smacking ourselves on the forehead. If all, it only increases our emotional state and makes us to commit mistakes.
We see yesterdays D TF candle. Than we anticipate todays price hitting yesterdays resistance which is now technically our support for a buy and the other way round for a sell.
I put my pending there, If it hits, than im in a safe trade. If it continues up, than its not meant to be my trade. I dont guess my entries anymore. I wont enter thinking its going to keep going up now and not hit that low point. The reason is because now I am speculating, guessing, thinking. Two hours later you see the entire floor drop and price plunge 50 or 60 pips to the support.
When this happens, your trading is now pure and pure an emotional one. So avoid this at all costs, especially if your risk is more than 1 or 2% of your capital.
Big lump sums of capital is lost not because of a lack of an indicator.
Its lack of discipline, lack of strategy, lack of understanding of risk and reward ratios, lack of practice, lack of knowledge, and the biggest reason is lack of an idea of MONEY MANAGEMENT.
You might be profitable because you combine your PA trading with one or more indicators. But let me assure you that your profitability and capital protection is not because of your Indicator. Indicator has nothing to do with it.
If loosing money can be explained simply as a lack of indicators than there will be only three logical outcomes.
Everyone who trades with Indicators do not loose money, big lump sums as you put it.
Everyone without Indicators do not make money.
Indicators will be as popular as price action trading is.
We all know none of the above three is true.
So that sort of puts a dent on the validity of your statement.
In a move like the AU pair, If you miss a entry where do you enter If there is no retrace.
What I mean to say, price sometimes just does solid bull or bear candles for a few days in a row without any retracement.
Do we just not take a entry in such a case.
On Oct 1st, I missed an entry from the pin bar at 9am in AU and have waited for a retracement ever since which never happened.
Wanted to enter at retracement around 1.0300-1.0335 area
Currently, it gets me mad for missing a trade like that… Then I look we are already in Thursday and I have no trades for the week. This is when I start thinking about taking the trades with lower probability.
I am learning to stay calm while I wait.
Also, if one has confidence in the overall move then one can trail that original Stop to BE and then enter smaller, intraday trades along the way to the overall target. So even when missing the original Entry, that can still be one’s mindset. I might spot a big move on, say, AUD/USD, and enter a trade off the Daily. I might then trail Stop to BE once Price has started to move, and look for smaller, intraday retracements within the overall move to take shorter trades targeting just 20-40 pips or so. That has worked well for me this week, I have taken smaller trades for +1% each on three separate days this week, having already banked a 115 pip down move. Timeframe correlation is, in my opinion, a very powerful way to go from making, say, 5% a month to 15% a month without having to spot any further overall moves.
It takes practice but is well worth the work, in my view!
I am baffled by this statement. Maybe because I myself use fundamental day to day approach as much as technical. I presume that you Nikita use mostly technical analysis to determine your entries and exits?!
Just wanted to say, I don’t always understand what you’re saying (because I’m still very new and much of this is still way over my head) but, I always ‘like’ what you say - you always sound so measured and so sensible (in a trading kind of way) - please take this for the compliment that it is
Agreed, what they don’t understand is price action traders are scared to use stop loss, it ruins their whole strategy of trading blind, without an indicator.
If you want to be profitable with price action, you must use an indicator, because that helps to place SL.
That is why price action traders lose the most money, when the time comes, as opposed to other traders that use indicator with Price Action.
Awwh, thank you, that’s really very sweet of you. I was already having a great evening - just got back home from a Chris Isaak concert! - and that just made it a little nicer, so thank you for that.
And to strike a serious note - I’m just a one man band, a retail trader who trades from home alone, and I started out knowing nothing whatsoever about trading, having come from an entirely unrelated career, trying this was my wife’s idea, she thought it might suit me. So if ever I sound as though I know what I’m talking about, it just came about through hard work and time invested, and I’m only three years or so further down this path than you are - so let that give you hope that even if it sometimes sounds like gobbledygook now, the day will come when it suddenly all clicks.
And if I ever say something super-confusing - for which apologies, I ought to express myself better if that ever happens - do please feel free to pm or email me and ask me to explain myself! I mean that - we were all beginners once, so just shoot me a message if I ever make you think ‘huh?’.
But thank you for the compliment, I appreciate it.
