What Every New or Aspiring FX Trader Wants To Know

[hellogoodbye4201]

@Sweet_Pip

Did you ever ask Tymen for proof

I already found Tymen credible. No offence to InnerCircleTrader, though he made a great first post, it was still his first post. Just makes me skeptical for a little while until something is proven. If he had already had a track record on BP I’d be less skeptical. My MMA trainer always says, “white belts dont teach other white belts, because neither of you know what your doing.” It is alot easier to say how to do something then to actually do it. But, as of his recent post, he looks like he has some pretty good knowledge to share.

@InnerCircleTrader

Here is my basic method, I say method and not system because it relies on price action and not mathmatics found in electronic triggers or black box signal generators.

Every night at Midnight (New York) I calculate new day Pivot Points for the Cable (GBP/USD) and post them on my charts. I then note key support and resistance levels from Monthly charts down to five minute charts.

I determine my trade bias for the new session and while I do look for trades in this direction, I’m not married to the notion the market must bend to my expected direction… I am flexible. The market is always right and I can except being wrong every day as long as I can be willing to change my bias based on current price action.

If we are trading in the Pivot levels above the Central Pivot level… I demand a lot for buys. Ideally I focus on trades that show a short term overbought condition and price in the area at or above R1 or R2 for shorts. This is even more powerful if the previous days high is slightly below the R1 or R2 level.

In otherwords, I look for false breakouts above previous days highs at R1 and or R2 levels. I use stops and limits to get me in at the levels and use a 30 pip stop or less initially. As the trade makes the spread up and moves in my favor, I look to reduce the risk and tighten the stop. My exits are predetermined and can be at market if things get hairy.

I use candle formations and basic chart patterns to determine low risk trades and targets are typically 25-30 pips before scaling out some of the position. I generally try to hold for the average daily range in pips before exiting for the remaining portion of the trade.

The reverse can be said for buys. I like short term oversold conditions and price in the S1 and or S2 levels under the the Central Pivot. I like buying Previous days low or a false break under this level given the conditions warrant a bounce.

I like trading at the figure, the markets like round numbers and options get tripped at these points so they are a easy trade multiple times per month. You can trade for a living just doing that as a method new traders!

So here is what I will be doing this week:

I will short previous days highs and buy previous days lows. If I get stopped out and the market finds support above the previous days low, I will buy. If the market finds resistance at the previous days high after being penetrated I will short it.

I take two trades per day max, if I win on the first, I close shop and bank the wins. If I lose on the first I try to capture the trade as described above… if it loses too, I close shop. No emotions, no muss no fuss.

If a Pivot level finds itself at the Figure, say Cable 1.51, I will look to buy it at that point if price has traded down to it and conversely for price trading up to it.

I just found the MeetPips.com site and created an account. I will do my best to highlight trades with this as it apparently gives real time or close to it tracking?

Find me and my method on MeetPips.com Profile InnerCircleTrader

I used to trade the same way with minor differences. I used to use pivots, Stoch, and BBands. If price was at a resistance and PA looked overbought I’d short. Vice versa for longs. Didn’t use too much of S/R, that’s what I had pivots for, and I only used basic reversal patterns that I’d look for at the pivots.