Newbie need help

[brutusdog]

hiya, i see your point but this is the problem i have understanding, we all use stops for an amount of error room as such and my entries arnt that good, if the markets oversold then as most would hold for a while like months or so, spose there called investors, to sell back later. what if i done the same thing. the thing is, what is a big stop ect. on ftse if it was potentially oversold at say 3900 and the bottom in nov was 3700 then a 150pt stop with a target of say 200 would stand a good chance of bouncing off the bottom or at least giving me some profit before it goes straight down. i see the markets have done that lately but is only once evry recession so the next time should be at least a decade away

refine your entries to the point where you don't need a large stop this can be done regardless of time frame. until you can do this don't trade. if your day trading ftse with a 1 point spread then you shouldn't need more than a 5 point stop .

 

[0007]

No no no no !!!!!!

Thats a Spanish way of looking at it.

IF you buy it and it starts trading down....cut it, then either sell it or wait for a rally then buy when going up.


If you got on the circle line to go one stop but got on the train going in the wrong direction would you

a get off at the nexgt stop and get o n the right train

b sit there for an hour as it goes round 25 other stations before finally getting to the one you wanted?

A brilliant analogy, if I may say so!

 

[Melissa Finch]

but ig is 2 pts spread...who does 1pt on ftse. your right about the stop thing but i was thinking about the 200pt risk being the maximum, most of the time it wouldnt go no where near it. so what if i was looking at maximium of 200pt to be wiped out but was taking 50pts regularly. so like you say i only need 4 winning trades against one loser to breakeven but what if it gave me 5 or 6 or 10 even before i lost the 200pts. its just a pheory im working on and does have a bit to do with what ive picke up and learnt so far at elite trader

 

[KillPhil08]

200 point risk on the FTSE is a spazstick decision. ODL do 1 point spreads. It is very easy to determine where ftse will turn; in the last 2 days especially.

Stop thinking like spanish. If you have a stop of 5, you can get stopped out say 4 times to find the correct entry. Then aim for +100 pips. Infact most of the time if you pick a turning point you can move it to b/e.

 

[Melissa Finch]

200 point risk on the FTSE is a spazstick decision. ODL do 1 point spreads. It is very easy to determine where ftse will turn; in the last 2 days especially.

Stop thinking like spanish. If you have a stop of 5, you can get stopped out say 4 times to find the correct entry. Then aim for +100 pips. Infact most of the time if you pick a turning point you can move it to b/e.

i'll giv ethis ago, and thanks for infor about odl being 1pt spread. a real help as it halfs my costs of trading. i will look to start trading soon but not for a few weeks yet, still waiting for the other £400 to put into account. then hopefully see how i do.

in the meantime i might ask some strange questions if thats ok. and again thanks for the help, no one has to help me and i find it very uplifting that there are kind people out there , especially when traders have such a mean type attitude being all for them selves and all.

thx. Meli.

 

[brutusdog]

200 point risk on the FTSE is a spazstick decision. ODL do 1 point spreads. It is very easy to determine where ftse will turn; in the last 2 days especially.

Stop thinking like spanish. If you have a stop of 5, you can get stopped out say 4 times to find the correct entry. Then aim for +100 pips. Infact most of the time if you pick a turning point you can move it to b/e.

wot he says.

you want your reward to be a multiple of your risk not the other way round.

 

[KillPhil08]

You can get £200 cashback on odl if you ask to be signed up on it. So if you lose £200 you can get it back to "hedge" your losses...

 

[foredog]

OK thats stops sorted out.

Now a quick question on entries for you...

How are you going to pick when to buy / sell the FTSE?

 

[brutusdog]

OK thats stops sorted out.

Now a quick question on entries for you...

How are you going to pick when to buy / sell the FTSE?

what happened to your inside bar trading? was interesting

 

[foredog]

I had a bad run with my real money trading so i had to get myself back on track with that first. Got to pay the bills etc.


Got myself back on track last month so hopefully have a bit of time to start looking at that again soon.

 

[Melissa Finch]

OK thats stops sorted out.

Now a quick question on entries for you...

How are you going to pick when to buy / sell the FTSE?

hiya foredog. this is the tricky bit. i would have to look at daily timeframe and judge when i feel the market could be at a stress level that it could rebound on, like say if we hit the lows of last year again then i could use this as a possible bounce back up but with a large stop if needed. if not then keep stabbing at it until i get it right. theres only so low the market can go, i mean, realistically the ftse cant go to zero. it works a bit like its own portfolio, if one company gets weak then another takes its place and even in recession times there are strong companies out there. i would look for support and resistance but need badly brushing up on these as it seems so many poeple have different opinions on it and on different timefreames as well. so will use only daily charts to define an entry and see how it goes.

 

[foredog]

If you're looking to trade a reversal/bounce then read up on PIN BARS. If you get them at the extremes of moves then they often show the market has hit top/bottom.

 

[brutusdog]

hiya foredog. this is the tricky bit. i would have to look at daily timeframe and judge when i feel the market could be at a stress level that it could rebound on, like say if we hit the lows of last year again then i could use this as a possible bounce back up but with a large stop if needed. if not then keep stabbing at it until i get it right. theres only so low the market can go, i mean, realistically the ftse cant go to zero. it works a bit like its own portfolio, if one company gets weak then another takes its place and even in recession times there are strong companies out there. i would look for support and resistance but need badly brushing up on these as it seems so many poeple have different opinions on it and on different timefreames as well. so will use only daily charts to define an entry and see how it goes.

if you want to try and do this read t_ds threads you have a lot of info there and it will put you on the right track cos you dont have a plan at the moment.

 

[Melissa Finch]

if you want to try and do this read t_ds threads you have a lot of info there and it will put you on the right track cos you dont have a plan at the moment.

yeah you could be right here, i wouldnt say i dont have a plan. i do, but maybe the plan is flawed or not quite right yet. i will take all your advice and see what i can do with it. i've seen some of trader dantes stuff, i guess thats who you mean and there is soooo much. i will chomp through as much as i can. my basic plan is somewhat flawed i know but if i stick to the simple things like going with the trend ect then this is like jumping on the train in the direction i want to go in, if that makes sense

 

[foredog]

Here's a chart showing how i'd trade the FTSE. I usually do individual stocks but this method should work on anything.

Although, it looks like it's may bounce now so no trade, but it'll give you an idea of how someone else trades.

 

[minime69]

get yourself a demo account and test out all of your theories, stick to your strategy and do nothing else.

thats how i learned and how i worked out new strategies for myself.


good luck

 

[foredog]

And a chart of two Pin bars in the stock RIO.l to give you a visual idea of what they are.

THe suggestion about demo accounts is a great one, even if it's just for a few week to play around with different methods and get used to the trading platform.

 

[Melissa Finch]

get yourself a demo account and test out all of your theories, stick to your strategy and do nothing else.

thats how i learned and how i worked out new strategies for myself.


good luck

thx foredog for that, bit baffled as to where my target would be though, if im risking 30 would i not need to get 60pts from that trade, thats the bit i get confused about. hopefully it goes in my favour and i bring stop to breakeven, a free trade is always good


hi minime, see you on big brother, you were greeat, lol. do you know where i can get a demo account from? and is it free.

 

[Claudia123]

Did i read a 200 point stop on ftse ??? - no no no. Go trade some forex eur/usd 25 pip stops or gbp/usd 50 pip stops. Much easier to trade, more profitable, and they trend very well. Thats what I do - hate the ftse is so SSSSSSSSSSSSSSSSSLOW.

 

[KillPhil08]

Yeah go trade bunds oil stocks forex metals energies softs indices, just not ftse. THEY ARE SO MUCH EASIER.