One suggestion I read that really helped me was to remember to always let the market come to you.
on another note I made this really crazy trade today on GBPUSD and it was a mess when the markets closed today, So here is what I am thinking to do on Sunday when they open keep my two sell stops in place but raise the stop loss because I have put a buy stop two pips above the resistance in case it breaks out long. Then when the bears come in I will lower the stop loss to a more reasonable point. Any thoughts?
Itās hard to comment on a traderās thoughts when there isnāt a chart or no specific prices are mentioned. From what I can gather though, make sure you have a definite plan for how you hope to conduct these trades (concerning entry, during the trade, and exit) before you enter the trade. Itās hard for me to tell from your post, but in my years of trading, I have never heard of a long-term, profitable strategy that focuses on taking trades in opposite directions based on a difference of a few pips. Also, taking a long trade based on the pure break of resistance is not a good idea. The market constantly creates fakeouts, which target traders taking those kind of trades.
small trader fail just because of the manipulation of big players. This market is now so much manipulated that only luck can give profits to small traders. The major banks are just feeding on the money of those new retail traders and this is the biggest cause of failure.
The most common confirmation Iāve seen of a legit breakout is if the price breaks the level and closes at least 50 pips past. In that scenario, itās likely to continue in that direction.
You should never get in the habit of moving your Stop Loss back; you either move it forward or you donāt move it. If you have it placed incorrectly or donāt like the way itās set up- just cancel the trade an reevaluate the situation and whether or not you should be in it.
Well said. Iāve never really thought about how many pips past it usually takes to constitute a breakout move, but 50 pips seems quite accurate. Great observation!
Yeah. Itās an easy thing to overlook though if youāre not accustomed to always trying to find the details. Thatās part of the reason I spend so much time reading forex material. Never know when a sentence will come out of nowhere and clarify a point you didnāt realize you had wrong. Definitely a great benefit of community sites like Babypips too.
[QUOTE=āstonecoldmichael;492488ā]Yeah. Itās an easy thing to overlook though if youāre not accustomed to always trying to find the details. Thatās part of the reason I spend so much time reading forex material. Never know when a sentence will come out of nowhere and clarify a point you didnāt realize you had wrong. Definitely a great benefit of community sites like Babypips too.[/QUOTE]
I agree all learning style not equal when it comes to forex. In fact I was just telling someone that I learn a lot from my mistakes I need to know what went wrong, and why to understand better how not to make those mistakes again. I read everything I can get my hands on!
Youāre right, and the point about quality is also right. Just make sure you donāt make the mistake of thinking that everything you read will be applicable to the way you trade. When I was first learning, I made the mistake of trying to integrate things as I learned them even if they had nothing to do with my strategy. So yeah- that didnāt end well at all.
Lack of knowledge, experience and low accounts ae the mainreasons for failure of traders. We can not get profits with low amount invested in forex. It can just give us real tradig practice with low margin trading. If you will try to take ood profits you will soon loose your actual money.
That is a very good point and I agree with you. A lot of newbies try to integrate everything and apply those things as they learn regardless if it is compatible with their trading strategy.
I havenāt read the thread but hereās the reason.
When uninformed traders buy, they are creating demand so the professional traders can sell to them. When uninformed traders sell, they are creating supply for the professionals, who are buying. The smart money is [B]one step ahead[/B]. Uninformed traders to act like sheep, mainly commit to one direction, then get run over.
The best way for pros to create an up move in the market is to have the market go down FIRST so that who ever is willing to sell has done so and is locked in a bad trade, and they can easily move price up now without active selling coming in against them. They understand supply/demand and I donāt mean Sam Seiden crap.
oh yea a few more reasonsā¦big stops, small targets, lack of discipline and bad information.
Well, I guess itās psychology. Trading is zero sum, so in order to win, someone has to loose.
The market is just not made for the average personās thinking winning, itās made for the crowd loosing.
Thatās just how the market develops of all itās participants.
Some one has to loose in market because every one cannot be a winner. In forex trading more than 70 percent traders are fail due to many reasons as they are in hurry to make profits . They had low deposits and high expectations , Low learning and trading practice is also a reason for their failure.
Having high expectation while the trader just do deposit in low amount of capital make them be a greedy trader , then with this reason they do trade with high risk methods , any best skill if do high risk methods sooner or later its will reason to fails
