Running on the spot

[danpayne]

By the way, my risk:reward ratio is based on day-trading and scalping. I only try to take 10 pips out of the market at a time, Even if its a breakout on the daily chart that i'm playing on a 5-minute chart... I only want 10 pips. This is due to my personality, i'm impatient. I'd prefer get my 10 pips and move onto looking for the next setup than sit watching whether i make profit or not in a trade.

I think in terms of swing trading, risk:reward should be 1:2 + - Simply because you should be trying to catch larger moves, all depends on your strategy... But for example, if you swing the FTSE100 using a trendline, buying the bottom and selling the top of the trendline... Then your target should be significantly more than your stop loss but you will be trading less probably. All depends what you like

I daytrade/scalp for 1:1 and 1.5:1
Swing trade (3-7 days ish) Uk shares for atleast 1:2
Also long-term holds (which for me is 1 month +) which i am looking to get a risk reward of 1:10

All depends on the strategy your using. 1:10 can work because i am trying to enter momentum, enter a breakaway, predicting market direction not just going into the volatility... So the momentum will carry me in huge trends, or will close me out very quickly the minute it stops, even for a small pullback and i'll look for re-entry.

I agree that traders should be able to change strategies the next day. Personally i find setups which frequently work, apply discpline, my own rules, money management and trade them. If i find another setup i will add this to my trading too - Recording the results of specific setups so that i know which are performing or not.

Risk 1 : Reward 3 is fine especially if you are trading reversals... For example a support line you could enter long with a 10 pip stop and the resistance 30 pips away - Its all about your strategy

Personally though, i just take my 10 pips off the support and leave. Because i find that even if prices don't reverse, 10 pips can easily be attained through volatility at such areas.

I will pm you my three SMA strategies if you like, i use them quite uniquely - My dad taught me and he uses the strategy for Daily and hourly, i use it for 5-minute and 1-minute charts... Its very high probability and can catch some very big moves, however personally i just take 10 pips a time My psychology is better when i win more, i know thats bad but...

Best thing about the strategy is you don't need to be too smart about the market conditions, if its ranging it simply won't generate a setup.

Evening Halo trader

That would be great if you post me your sma technique i await with interest
I admire your honesty about your impatient personality I am similar (impatient) but the last 5 momths or so have remained constantly aware of this it as helped alot with my trading . A while back I started writing down the things I wanted to control about myself when trading
trading style and would include going over the list as part of my trading criteria I found it actually helped .
Sounds like you are managing to use knowing your personality to your advantage
Do you trade full or part time ?
How long you been trading ?
As we speak I am looking at a couple of potential set ups (did not take any new trades last week) still have 2 open positions going my way
Have been looking at autonomy my self recently I noticed you are still long ?
Do you think its getting a bit heavy ?
Ive been patiently waiting to short it , could be soon looks like a possible h\s forming ?

 

[danpayne]

For last few months I have exclusively traded the FTSE100, both daytrading/scaslping and swing trading. Have given up the daytrading as it took up too much time compared to profits - which were zero anyway. At leat I have taken time with a few days off and a lot of evening sessions to prove to myself that I can follow and enhance a daytrading method, though I still can't recommend scalping.

The swing trading makes money around my day job. If you can be long or short, only one market is necessary. Eventually I will be trading two non-correlating markets so that if one is ranging I can trend-trade the other, but its not essential or urgent.

Managing positions is a key skill - I like to apply the simple approach to any open position on a daily basis - would another trader looking at the same charts as me open a position here in the same direction as me? If the answer is no, question 2 is what am I waiting around for?

My goal also is to escape the salary treadmill. There is nothing unrealistic about this. I have broken the ambition into realistic and (hopefully) achievable stages -
Phase 1 – consistent return of minimum living expenses over consecutive 2 month periods
Phase 2 – increase capital, make salary in each of 6 consecutive months
Phase 3 – increase capital, make double salary in each of next 6 consecutive months
Phase 4 – resign job, trade, enjoy life more
Of course, I am still in Phase 1 - but if a person can't visualise where they want to be and how to get there, they probably will never set off.

Thanks for info alot of what you say makes me feel like Im heading in the right direction Ive looked at you journal interesting stuf will follow and if ya up for some input , I will ,,well,,input
as your a ftse trade have a look at this chart on intrady 15 min a head and shoulders
wirhin an head and shoulders, looking for re entry tomorrow
would value your opinion ?
also check out a recent thread I posted at the weekend called "ukx where from here"
any thoughts on that would be cool

 

[tomorton]

Hi danpayne - Its always healthy to get other opinions on a chart, and if they are diverging, so much the better. FTSE certainly in range/rectangle as per your weekend UKX thread - 5 weeks now! Even the deeply negative day today did not break out of the rectangle. Of course, the usual break-out direction of a rectangle is the same as for the trend that led to formation - upwards in this case.

I'm no judge of intra-day TA, and I haven't a clue where tomorrow goes - probably down at first, but after that????? I will be especially looking out for a whiplash pattern where we gap down on the open, then recover to a strong finish for longs.