I don’t worry about leaving money on the table
The [B]Zurich Axioms[/B] Rule!!
The second major axiom is [B]“Always Take your Profit too Soon”[/B]
PS never a good idea to disagree about making money with a bunch of rich swiss bankers!
Added:
TalonD, Moves much more on the 1m than the 1h…
….kind of like the coast line of Maine and Calif.
If you’re trading retail, the banks don’t even know you exist. Nor would they care about your $4.00 stops.
We are the “off track betting” crew of the markets.
Well, if you can have a way to consistently see the top and bottom of the trend or run then there is not much reason to leave money on the table… Using your fade strategy would help you do that right?
Well here is the thing, itsn not just your little trade sitting there, its because you and thousands of other traders decided to place a stop there as well. thats why they will purposely blow u and them out, its alot of money then
Couple of points…
First, the banks (liquidity providers) can’t see your stops… FULL STOP! LOL Your broker can and does know where the aggregate stops are but if their honest (some are) and ECN this should not worry you as the liquidity providers will not have access to the brokers stats. That said, they know their stuff and even without the brokers help will have more than a good idea of where stops are likely to be placed on the popular TF’s. Notice a spike high or low before a swing the other way and you’ll get the idea.
Second, the OP in another thread does not advocate using Fibs as the banks will have factored this into their trading model. You might want to take a look at the Fib retrace pivot on say the 1h, 4h, day and week… particularly the 0.27, 0, 1 and 1.27. Let me assure you as you mention Floor traders in another thread… they do! LOL
Third, I’d not touch the 1m with a ‘barge pole’. Take the Asian… not my preferred poison… but as were in it as I type this… I’m using 1h and 4h and bagged 20 pips short off the 1 & 4h signal. No way I could have seen that coming off the 1m!
Perpetuating myth is a big reason so many people misunderstand this market.
Read this post.
And it’s NOT a lot of money.
Retail is 3% of the market or so. And not all of that money is in the market at the same time. if everyone used the nominal 2% risk, that would be a pitiful amount in total compared to the actual size of the market.
And BTW, the trader/bank/algorithm on the other side of your trade doesn’t get your piddly chunk of change anyway. Nor do they get any of the money that is lost when “stops are hunted”… They don’t want to exit a trade there. They move the market enough to punch through supply/demand, then go for the ride. It has nothing to DO with your stops. They are incidental.
So have you ever placed a stop, and then the market methodically moves towards, then stops you out, then goes the other way? I have seen that soo much that i dont think its just coincidence.
When I first started trading yes.
Then I started placing pending orders where I was going to initially put my stop, and I then cut my original stop size in half.
My stopouts declined heavily.
It showed me I was less important than I though I was.
so b/c you used tighter stops, that didn’t happen anymore?
Your stops will not affect the market, period.
which pair were you trading?
If all you got out of that post was me using “tighter stops”, re-read it.
There’s a sight more to it than that;)
Well I dont use them b/c i feel that most traders/institutions using stops are placing them the same place most other people are placing them, and that makes you a target.
You know what, thats just how i feel about stops, and i just dont use them or need them… Anyone here trade 1 minute charts? it seems like almost everyone talking on this thread doesnt do that…
I am by no means scared of the one minute chart. I just don’t like being chained to it. It’s a lot easier to use the 4 hour chart. I get a good amount of trades, and it takes a lot less time to manage things. In fact, it’s almost hands free now. It’s amazing what computers can do these days when they are properly instructed…
Edit: Plus, there are only a few times of day worth messing around. A large portion of the Asian is usually to dead to try. Early London is okay, but I don’t dig staying up that late any more.
OK well, would you like to explain how you trade the 1 minute chart, when you do it?
I use an indicator I wrote up for such tasks. No real thinking, just reacting.
No lines, just a few Xs on the chart that show me the most likely turning points.
niice! So i am just curious, being this is the newbie section, would you recommend that indicator to new traders instead of them trying to learn fib. and elliot wave
Well sorry if this was covered in the replies earlier as I have to admit I only read the first post and a small number of replies as i coursed through.
In my opinion, a person can trade the Min 1 chart, but where to enter and what are the entry triggers should be discussed as we cannot trade, say a min 1 chart or even a min 15 chart based on swing highs and lows or candle patterns solely as the smaller the TF, the more false signals appear.
So I think the question of which TF does not really arise.
Its more of how to trade these TFs…
The first system I was thought was based on Min1 SMA 200 trading.
I never had much success with it. On hindsight, I went back to that system a few weeks ago and I demoed an account and surprise surprise, my results were astounding.
The entries were the same, but its no longer a simple trading a bounce or a pullback to the SMA as I have learned alot more regarding the markets since than.
So I guess its not about the TF, but what to look out for in general.
It’s not something you can find anywhere. It’s a one off.