Yeah, totally hear that. I was very reactive the first few months I traded forex. Constantly doing stuff like this. I have found what works for me is to start in with a small lot size relative to account size. If the trade moves towards me I take my, relatively small profit. If it moves otherwise I can sell/buy again the further away it moves and then still close in profit even if it doesn’t retrace fully to my original entry point.
Selling GBPAUD giving a lot of opportunities for me this week. Volatile but with overall downward movement over the weeks. I’m about 20% up this week on my 2k live account. I’m figuring that it’ll drop again by Monday night, which would pay for my Audi’s new turbo and be cool.
I also like clean charts. I only use support and resistance, fib on higher timeframes for entries and tp and I recently started using supply and demand indicator, given by my broker for upgrading my acc to 10k. works like magic !
Sometimes a little patience is all you need to appreciate you can make in a day what the humble man cannot earn in a week here in the UK, and just kick back with a pizza and an ice cold one.
Hey @The_Baller, so doing my best to try and figure this out.
Alright, so you said you take trend lines into account on the monthly. I think I may have found a good example for analysis, let’s see.
if we take a look at EUR/AUD on the monthly, it appears that it is ranging/in a consolidation phase. It’s popped the top lagging line and inching up towards the trend line. It is in a upward trajectory but based upon the monthly trend line, would you short?
Yeah definitely many different ways to read a chart.
I think reading a chart properly is one of the most fundamental aspects to trading but it is not always straightforward or so easy.
I see it as it is ranging between the two yellow trend lines since around 2015. But does it break the trend and continue to #1 or make a correction and head to #2?
You make the wrong call here and you will be in the red for a long time trying to ride this back out.
Related question for @The_Baller, how do you determine when the chart is ready to make a change in direction? The monthly yellow S/R trend lines below?
Then color me confused brother. You said you look at trend lines on monthly. Doesn’t monthly trend show it may take a downturn once it hits the top? I must be missing something, where do you consider the trend lines to be?
