baller, thanks for the reply. yes a “a massive account” is what everyone wants but only few have 
whats your opinion about this: AUDJPY looks set for entry with your strategy (I am just starting with it). you need to go back to 2008 to find the next support level at around 57…but… i would not enter because the last two weeks go trend-opposite. yes that happens often after a break of S/R, but i would wait for confirmation on the weekly first. would you enter anyway?
just decided that if a chart shows a good situation in itself, but both the M1 and W1 show a trend opposite move, to stay out. can always enter next week. makes sense?
(of course on a date like now that would be the same, so doubt then)
u have a fake break on monthly and weekly, daily showing massive buying into that down move(gap down and very high volume) and just broke resistance on medium volume(meaning that it didn t took much effort to break that, sellers aren t there). i would be bullish untill next resist area on daily. could still be a short in the long run(months, years) but i m talking for the next few weeks.this is a good method, but u have to be mentally prepared for the drawdown and have patience to hold for a while.
sure bud, didn t mean to intrude. cheers
i see baller. but if you weren’t already short, would you enter now?
i find the question especially important because many pairs with the NZD are in the same situation. ignore the last two weeks and press ahead or wait for a week in trend direction?
I know a lot of people wouldn’t - personally, yes - I’m always looking at the very bigger picture and then looking to sell into strength and buy into weakness.
As already mentioned on the daily its showing some strength.
All I know is the majority (retail traders) are long. The minority are short.
The minority are usually right, long term. But you have to have the patience and mindset to handle the DD.
If you can’t then you gotta start getting better and timing your entries.
Noted. DD and patience is not a problem - just want to “trade like you” for a start first, before (if ever) changing anything.
Trading like this is easy - in hindsight.
It all comes down to not giving too much of a hoot, not to be confused with complacency.
I don’t consider DD as “losing” or “lost money” or anything else close to that.
To get used to this, I’d suggest scaling in. Find the correct position size based on your account size, and halve it, halve it again if you have to.
Chances are once you enter the trade, it will go against you, might go against you hard - but its an opportunity to capitalise if you didn’t go in whole hog at the very start.
Although I am a bit skeptical, I am also giving The_Baller’s strategy a go on demo. Started 2 weeks ago with a £1000 opening balance.
Current balance is £1180, however I also have 2 open trades (short on AUDUSD) from a week ago that aren’t doing too well (-£250) - see image.
The price is currently hovering at a resistance I set around 2 weeks ago, my SL is a bit above this resistance. Maybe @The_Baller can enlighten me on if this was a good place to place the SL?
Just to add to this, when I say I am skeptical, I mean that it’s a very risky strategy for an inexperienced trader. This is very much a way to lose money quickly if you’re not careful. Not doubting that this works for The_Baller though.
My friend trades 0.1 lot sizes on a £5K account, and I’ve been trading 0.5 lots on a £10K account for this thread, so I’m not sure trading 0.12 lots on a £1K account is a good start.
You either need to reduce your lot size relative to your account size or start with realistic capital.
And I wouldn’t call 163 pip SL a good SL regardless for this kind of trading. Its too tight and where the majority probably have theirs.
I’d either start with a £5K demo to practice on with 0.1 lots and when the time comes to trading with a live account, aim to have a £5K account as the minimum, if you want it to be worth the time and effort.
There is no hard and fast rule that the SL needs to be a fixed 200 pips, it could be 213 pips - it needs to go where it needs to go, not the other way around.
Before the trade you should know where the SL needs to go, how many pips away it is, and the risk if it hits the SL - if too big, simply reduce your position size - or as already mentioned, scale into the trade.
Reflecting on my trades in light of your comment, I guess I was quite aware of the likelihood that the price would go up to the resistance marked as 1 (hence my SL being above it) in the image below, so knowing this I should have moved my SL to the line marked 2, is that correct?
I’m using 0.5l on a 1k live account. SL mostly around 300-400. Got a few AUD and nzd shorts merrily in drawdown right now but not near hitting SL. Most weeks up to now, a few come in and I take profit at 30 to 50 pips.
You shouldn’t have to move a SL - it should have been at the line marked 2 to start with.
Most can’t handle 0.5 lots on a smaller sized account, especially when it comes to DD - if you can handle it, you’ll just make money a lot quicker.
The only other thing to mention is opening too many 0.5 lot positions on a 1K account will also lead to issues.
The key is knowing how many you can open and having sufficient margin.
And for those that think, talking about DD is easier said than done.
Currently.
