Periodic review of your trades, trading strategies and techniques would lead to better trading results. During the week, I did a thorough review of my trading system and decided to streamline the technical items I use in order to obtain better market tracking and analysis. What about you? When last did you do any review regarding your trading? What did you learn from such a review? Trade safe.
I agree with you. I review every one of my trades and I often go back over the last few to determine how I would have done it differently and whether I stuck to my rules. Also looking at levels to make sure I had them in the right places. If people want to take trading seriously then auditing yourself is a critical process that cannot be ignored.
If I may ask, what did you change to improve your analysis?
Good points and rather apt. As I do a weekly scanning and analysis of the pairs on my watch list, I need to have specific criteria that help facilitate my trading based on my trading techniques; those criteria were re-evaluated and streamlined. Also, I adopted one specific EMA on my 4-H time frame, my set-up timeframe, and ensure that it is aligned with the weekly and daily trend direction. I was using three EMAs initially which had little bearing to the effective synergy and trading analysis I needed for my short-term swing trading style, only for the fact that they were popular. But I now know better. Trade safe.
[B]Just my 10 cents:[/B]
Donât use too many technical indicators or technical indicators that donât perform complementary roles. Use a few (for me a max of 3) complementary technical indicators as part of a few significant confluence factors to track, stalk and trap the market/price action.
'The hard work in trading comes in the preparation. The actual process of trading, however, should be effortless.â Jack Schwager , Author of Market Wizards
Do you subscribe to the above principle?
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To be honest, I donât know. I work hard both when I prepapre and when I do trade. Maybe I just donât have enough experience yet.
I like your candour. The hard work, for me, is the preparation I do when not trading - primarily on Sundays - when I do the weekly scan and analysis of the pairs on my watch list. The process takes about 4-5 hours and at the end of it I have a very clear idea of the few pairs (2-4) I should attempt to trade and in the most probable direction, levels, and zones; and also the techniques I should adopt. During the rest of the week, I just watch the market a few times a day and track the price action to see whether the pairs are already at my zones/levels and whether the signals are in line with my biases or I need to update my biases. Trade safe
I rarely trade on Mondays. In fact, I prefer to watch the market on Monday and see how my analyses for the week are shaping up. What is your take-away from yesterdayâs trading? Did you notice or learn anything of any significance? Share it here! Trade safe.
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Mostly just the fact that it was Labor Day, so not a trading day (even if some markets were technically open).
Did you notice or learn anything significant in your trading yesterday? Trade safe.
âGive me six hours to chop down a tree and I will spend the first four sharpening the axe.â â Abraham Lincoln
A fantastic principle to apply to Forex trading. Do you agree?
Hereâs one application of this quotation. If you have have, or are given, six hours to trade. You will not just jump into the market. You will spend a good amount of time, for example, to do proper market analysis, market reading, price tracking and wait for best trade set-ups. If you didnât, youâd be a big loser and blow your accounts in no time. Trade safe.
One of the things I have been doing in the past 3-5 months is to better learn to read and understand the market - particularly in regard to market structure, order flow context and price action - because it is key to my strategy of tracking and trapping the market. What about you, what have you been working on recently to make you a better trader? Trade safe
[B]Tip:[/B]
Be patient, let the market decide what it wants to do.
Everyday Iâm telling myself the same thing but itâs so itchy to intervent my own strategy and to do everything in the other way. But logic tells to keep on going along the strategy.
The long-term result of patient trading is far more important than short-term gains. Trade safe.
Hi TrapTheMarket can you elaborate on what you mean by âorder flow contextâ and how you use it in your trading?
Hi, m8! Order flow context is the nature of market situation influencing the relationship of buying and selling of a pair. What is happening at the moment and what is the quality of the price action on the side of selling vis-a-vis the quality on the side of buying? Size, number and sharpness of, say, the candlesticks will give me an indication of who is in control - buyers or sellers. There are many things involved. Let me give an example. For example, I use an EMA across the weekly, daily and 4-hourly time frames to guide how the relationship plays out. If price is above the EMA but the bulls are weak, then the pair is not tradeable to the upside with confidence; but if the bull candles are strong but the bears are weak and few then the northward trade is more likely to be profitable. Trade safe.
During this week I learnt much more about the value of patience. I never traded since the beginning of the week; just tracking the market to see how price action relates to the zones and levels I identified during my weekly scan and analysis on Sunday. Since the beginning of the London open today, I have seen two clear cut trading opportunities which I gladly took without any sweat of time and emotion, making handsome pips to boot.
Mmm very interesting. Thanks for sharing.