Newbie with some questions

Hey all,

I've recently started "practice" trading forex while I wait for real money to transfer to my broker. Over the past week or so, I've read a lot of guides and tutorials on this site and have been somewhat successful with the 3 Duck's Trading System and Phil Newton's breakout strategy.

My main issue with trading so far, is that I have no experience or idea how far trends will generally continue, if they ever do. What I mean by this, is that I'll set, say, a 10-20 pip profit goal and then a stop loss. Often times the trend will only continue by 5-8 pips before reversing (ending up in a loss) or the trend will continue way past my original profit goal (proffiting but not by as much) .

Not to say this isn't expected, but I'd like to know if there's any way I can generally gague how far a breakout/3 duck line up will go. Right now, every "take-profit" price I set feels like pure guesswork and I have a feeling I'm doing it wrong.

Any advice, links, tips, input would be appreciated,

JeseRavi

jeseravi said:

Hey all,

I've recently started "practice" trading forex while I wait for real money to transfer to my broker. Over the past week or so, I've read a lot of guides and tutorials on this site and have been somewhat successful with the 3 Duck's Trading System and Phil Newton's breakout strategy.

My main issue with trading so far, is that I have no experience or idea how far trends will generally continue, if they ever do. What I mean by this, is that I'll set, say, a 10-20 pip profit goal and then a stop loss. Often times the trend will only continue by 5-8 pips before reversing (ending up in a loss) or the trend will continue way past my original profit goal (proffiting but not by as much) .

Not to say this isn't expected, but I'd like to know if there's any way I can generally gague how far a breakout/3 duck line up will go. Right now, every "take-profit" price I set feels like pure guesswork and I have a feeling I'm doing it wrong.

Any advice, links, tips, input would be appreciated,

JeseRavi

Click to expand...

Hi JeseRavi,
I really don't know about those methods you are talking in particular.... but regarding the exits, TP's and trades management, I can tell you that it is one of the hardest things to achieve in this game.....

regarding to quantify a trend or move duration, imho, nobody can tell you how long a move is gonna last, or when it is gonna reverse.... the only thing you can do is to go with the educated guess or probabilities...

I really think that if you focus in only one or two markets (as I interpret for your post that you trade a small tf), you are gonna really get to know them and all their nuances, and that is gonna help you a lot to get the feel for the right time to bail your trades (positives or negatives)....

Apart from that, and this is a personal thing, I would take a look, and make some work of studying, backtest, etc, towards the next S/R as for the TP, being this, round numbers, previous S/R on the price, Pivot points, dynamic S/R as moving averages.....or whatever you like the most...

Hope it helps you a little