[QUOTE=“daydreamer65;513376”]
The markets are 20% fundies, 80% technical.[/QUOTE]
The market are 100% supply and demand, that’s it, nothing else, learn to read supply and demand and you will do well
+1 Stops outside the range is key.
What do you think the technicals are made of?
Now, to the OP. For right now, place a pending order where your stop is, and cut your original stop in half. You won’t get every trade triggered, but your account will last longer, and your p/l ratio will be more likely to be successful.
No more market entries. Sell high, buy low. Or vice versa.
I am sorry for you.
[QUOTE=“ARTjoMS;513453”]
I am sorry for you.[/QUOTE]
Why are u sorry for me?
[QUOTE=“Master Tang;513448”]
What do you think the technicals are made of?
Now, to the OP. For right now, place a pending order where your stop is, and cut your original stop in half. You won’t get every trade triggered, but your account will last longer, and your p/l ratio will be more likely to be successful.
No more market entries. Sell high, buy low. Or vice versa.[/QUOTE]
What do you mean by technicals? If your referring to indicators then I don’t agree, most are made from some sort of averaged out price which to me isn’t really supply and demand, if your talking about price action like support and resistance and candle sticks then yes I do agree but there are ways to read supply and demand using volume as well
Hi
You should make your stop hit to be 50 pips.
Hi Averied,
Read your message and a few of those folowing it and I really feel for you as I know EXACTLY what you’re going through - there is a s*** load of money that could be made in Forex but somehow it just keeps slipping away from your grasp.
IMHO if your posting 10, 20, 30 trades a day it is way too many. Think about the pairings and, frankly, you could find yourself bullish on dollar against the pound but bearish against the euro which, generally, ain’t gonna happen. Similarly, if you’re bullish on both and it goes against you, you lose double!
I am also a relative newbie, been trading since November last year and lost significantly over the first few months (yeah, I should have used a practice account but, like you, when I did, I made loads of ‘money’ - it’s all to do with the lack of pressure). More recently, over the last couple of months, my trading has become better and, whilst I do still have big losses, my win/lose ratio has been getting much much better.
My advice to you?
Firstly, go through Babypips education - you may think you know it but, trust me, you don’t and neither do I.
Secondly, personally I only enter one trade at a time and rarely more than two in a day. This way I can scan the pairings first thing in the morning, pick one or two, look for a set-up and then concentrate on keeping an eye on what’s happening. Right now I’m selling GBPJPY and I’m 18 pips up - hooray! - but if it looks like turning them I’m outta here. Putting pips in the bin is what it’s all about, not hitting your arbitrary ‘target’ particularly.
Once you can consistently make pips, then you can start to experiment more.
Hope it helps somehow.
As a relative newbie also, SL and their application has been a major source of my frustrations. Like this thread, managed to identify many a good set up, set the SL a few pips below the proceeding high or low or a pin bar if available (eg high or low test), and have found that the proceeding candle turned and hit my SL and then find a counter, back to teh trend of direction I seen the setup and move on for some good pips.
No matter how much info one reads about setting SL, TP etc, it’s never enough. For swing trading, teh SL is generally fairly far away to allow for the ebb & flow of the ATR. This is where the SL become much more damaging on teh account than the TP levels.
Any advice anyone has, seasoned or otherwise, is appreciated.
From down under, cheers!
Hey!
I’ve been studying a lot about trade management.
You have two options:
(1) Increase your S/L in order to increase the reliability of your system. (Decreases profitability of any single trade)
(2) Maintain a tight S/L in order to increase the profitability of your wins. (Simultaneously decreases reliability, this is unavoidable.)
It depends on who you are as a trader, do you prefer to be “right” more often than not? Consider a larger s/L. Do you not mind being wrong a LOT, but when you’re right you want to win big? Consider a tighter S/L.
Then, by using position sizing you should be risking 1-2% per trade, size of stop loss doesn’t matter, that only changes how many contracts you trade.
USD/CHF is in a sideways trend…instead of playing the recent high as a stop, you may want to use a higher time frame to select your trades. Just because a single 15-minute bar is “bearish” is not a reason to enter. 15 minutes in the FX market is insignificant and not a reason to enter a trade. Look at the day, 4hr, and then 1 hr. Don’t bother trading time frames that are less because there is not enough “market development” and your eyes will play tricks on you.
put the 200 moving average up…it’s at 94. this trade was confirming 94 as resistance and then sold off. Use the 200 day Moving Average and put your stops above for going short and below for going long. The problem lies in having your stops too close. The ideas are right, but the stops are too tight. That is why I prefer longer time frame for currencies.
Would you please explain a little bit more about your understanding of “supply & demand”
TIA
[QUOTE=“daydreamer65;513556”]
Would you please explain a little bit more about your understanding of “supply & demand”
TIA[/QUOTE]
Yeh of course, please understand that I have only been trading for around a year total so don’t take anything I say as gospel
Ok so in any market you have only to things that move price, supply moves price down and demand moves it up. That bit is very simple to grasp and I think almost everyone will understand it.
What most people don’t know (as far as I have seen anyway) is how to properly spot supply and demand areas (commonly know as support and resistance) and then be able to tell what is happening at those areas, and also what actually causes trends. this is where volume comes into play.
So how to spot an area of supply using volume: usually on the H1 chart you will see a large bullish candle with very high volume and a large upper wick followed by a bearish candle, this is called climactic volume, it shows that for the pros the price has got high enough for them to start closing their long positions and then start distributing these positions to willing buyers. It’s logical to assume they would have very large positions and if they were to dump all this at once it would cause a massive bearish move which is not what they are after at this point, so now they will be trying to sell of bits of their positions at the highest possible price, this is why you will often see an area of resistance (supply) tested multiple times before price eventually drops off, you will also see that volume is higher around the highs then it is around the lows, it’s the smart money supplying the market with long positions until they have sold off their positions and start building short positions, when there is enough supply it will create an imbalance between supply and demand and price will drop off. The exact opposite is true for an area of support (demand)
Also most people seem to think that continued selling causes a down trend and continued buying causes an up trend, this is false what actually causes a downtrend is a lack of buying not continued selling, again the opposite is true of an up trend
[QUOTE=“Wookie1985;513640”]
Yeh of course, please understand that I have only been trading for around a year total so don’t take anything I say as gospel
Ok so in any market you have only to things that move price, supply moves price down and demand moves it up. That bit is very simple to grasp and I think almost everyone will understand it.
What most people don’t know (as far as I have seen anyway) is how to properly spot supply and demand areas (commonly know as support and resistance) and then be able to tell what is happening at those areas, and also what actually causes trends. this is where volume comes into play.
So how to spot an area of supply using volume: usually on the H1 chart you will see a large bullish candle with very high volume and a large upper wick followed by a bearish candle, this is called climactic volume, it shows that for the pros the price has got high enough for them to start closing their long positions and then start distributing these positions to willing buyers. It’s logical to assume they would have very large positions and if they were to dump all this at once it would cause a massive bearish move which is not what they are after at this point, so now they will be trying to sell of bits of their positions at the highest possible price, this is why you will often see an area of resistance (supply) tested multiple times before price eventually drops off, you will also see that volume is higher around the highs then it is around the lows, it’s the smart money supplying the market with long positions until they have sold off their positions and start building short positions, when there is enough supply it will create an imbalance between supply and demand and price will drop off. The exact opposite is true for an area of support (demand)
Also most people seem to think that continued selling causes a down trend and continued buying causes an up trend, this is false what actually causes a downtrend is a lack of buying not continued selling, again the opposite is true of an up trend[/QUOTE]
I will post some charts later
Who said anything about indis, or tick volume?
Technicals the way I use them are usually zones of support, resistance, daily and weekly highs and lows, and a variety of other numbers that have nothing to do with indis.
Look in the “Holy Grail” forum here for a thread called “Alternative Technical Templates”.
If you want to pull a few pips more out of your trade, then use the 5m or 15m just to pull the trigger. As fxgroup pointed out, use the higher t/f to make your decision.
Hi averied,
IMO, your first mistake was determining the take profit level BEFORE the stop loss. You need to do it the other way round because only then can you determine if the risk reward ratio is good enough to warrant entering the trade. You basically tried to force this one to meet your profit target.
Secondly, try using the Stochastic indicator to time your entries, my platform shows the Stochastic at oversold on the 15 minute chart when you entered the trade which doesn’t mean the price can’t drop but I’m always more confident going short when the Stoch is overbought.
Apart from those two things I think you had the right idea so well done.
Kythira
[QUOTE=“Master Tang;513746”]
Who said anything about indis, or tick volume?
Technicals the way I use them are usually zones of support, resistance, daily and weekly highs and lows, and a variety of other numbers that have nothing to do with indis.
Look in the “Holy Grail” forum here for a thread called “Alternative Technical Templates”.[/QUOTE]
Well we just have a different name for the same thing, I would call those areas of supply and demand
My 2 cents…and keep in mind I am fairly new and learning supply and demand. The Entry was right above several small areas of supply. Not all them are good areas but the chart was showing that the road down was the more difficult path. A long position at the supply area at 0.9356 With a stop just below the pivot low at 0.9343 would have offered a small profit. I had a set up to go short planned for entry at 0.9378 with stop at 0.9398, my target was 0.9305. It worked out great, I wish I had the discipline to pull the trigger…I should have made it a set and forget and went to bed, but I didn’t and by my time zone it was over before I got back to my charts :(. Supply and Demand works great, if you have the discipline to follow the trade plan.