So I have been trading live but a “cent” account.
I have been trading bounces from support and resistance.
A lot of people have told me about indicators and how to read charts and things that seem complicated.
I haven’t done anything other than plot S&R look for a few strong candles heading towards either support or resistance and if a doji forms I then take a reversal trade at the low of that doji for around 150 to 350pips depending on how close the opposing support or resistance is.
Since I am trading a cent account the most I have ever risked on a trade was $.09 (No where near 1% of my account) but that trade won $.20.
I have lost probaly 55% of my trades but winners have been plenty to cover loses and provide profit.
Does this seem sound to you guys? Can simpler be better?
I don’t think I have the holy grail or that I know it all. I may just be having some luck…
I only trade the Daily chart and any and all major pairs and their cross pairs if they meet my criteria at a support or resistance level.
There is nothing wrong to trade using simpler methodology like you did. It all boils down to money management so to speak. Any methods can be used for trading and all of it are equally effective. What makes the difference is the psychological level of the trader & money management. That’s what distinguishes successful trader and the failures. However, from what you have said, I might well assume that you are a swing trader, entry by using reversal candlestick pattern right? This is effective when the markets is in range. When the markets picks up momentum and trend develops, It may be harder for you I would say. That’s where money management kicks in. So do your trades cover you more than 3:1 than you risk or more than that? Like for my strategy sometimes I will get 10:1 trades. Which means if i have a losing streak of 10 times, i can easily cover it up. Backtest your strategy, gauge the average risk reward of your strategy and you will know how many losses you could take in a row and how many winners can breakeven and even better profit.
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This gives me some good insight. Thank you!
I am going to write down the solution of this problem, so that one day if I have the same case could be resolved.
A 45% win rate can be very profitable if you’re using a good risk to reward. If your stats hold up after a few hundred trades you’re really on to something here. If it isn’t broke don’t fix it!
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