Newtron Bomb
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Currency Trading; October
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Thanks NB
Still it's not a bad thing as it's forcing me to spend more time making sure I understand the instrument and confirm my trading rules. I have had a tendency in the past to jump first and understand as I go a long, which proves to be a costly learning curve
Keep up the good work, it's giving me confidence in see that my TA is not far different from yours.
Cheers
Lard
Still it's not a bad thing as it's forcing me to spend more time making sure I understand the instrument and confirm my trading rules. I have had a tendency in the past to jump first and understand as I go a long, which proves to be a costly learning curve
Keep up the good work, it's giving me confidence in see that my TA is not far different from yours.
Cheers
Lard
Newtron Bomb
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As long as you understand TA you will do fine even if it is only a few aspects of it. You can chart sup & res and trade it as you could have been more profitable with taking advantage of the smaller moves instead of trading the ema but it is a part of the acceptable losses that i take so that i can put my feet up or spend time away from the screen
Newtron Bomb
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Basic TA works fine on the fx's. Better than shares and futures because of the liquidity of fx. Simply put there is more money going into currencies on a daily basis then the other vehicles.
Stick with the majors and you shouldn't go far wrong.
They tend to stay in trends for longer time periods. But the leverage offered is a very sharp two edged sword. You can lose a lot of money very rapidly.
As soon as you place a trade you are 5 pips off, so it's important to get on the right train as you cannot afford to have a trade go too far against you.
I'm still inherently a futures day trader. Tried fx years ago... and got slaughtered. I'm finding it a lot easier second time around.
Stick with the majors and you shouldn't go far wrong.
They tend to stay in trends for longer time periods. But the leverage offered is a very sharp two edged sword. You can lose a lot of money very rapidly.
As soon as you place a trade you are 5 pips off, so it's important to get on the right train as you cannot afford to have a trade go too far against you.
I'm still inherently a futures day trader. Tried fx years ago... and got slaughtered. I'm finding it a lot easier second time around.
Newtron Bomb
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Options
Lovely put... basic TA and you cant go far wrong with the 4 majors
j.40
little concerned with this comment
Try adding it as an instrument for diversification so if one doesnt deliver then another may be in sync. with your chosen trading style
Personally i trade index futures, currencies and recently us stocks this gives me plenty of scope for making money and all my eggs are not in one basket
Lovely put... basic TA and you cant go far wrong with the 4 majors
j.40
little concerned with this comment
Try adding it as an instrument for diversification so if one doesnt deliver then another may be in sync. with your chosen trading style
Personally i trade index futures, currencies and recently us stocks this gives me plenty of scope for making money and all my eggs are not in one basket
Newtron Bomb
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morning everyone
Am looking to reverse long above todays high, i can see a double bottom on the horizontal support @ 1.66 and also trend support from the dec. tri.
If you look on the longer time frames, say hourly, it is a continuation pattern. either way if it breaks north or the continuation breaks south the target it still the same.
Within the pattern there is a down trend and as you can see there is what could be perceived as a squeeze in price so am expecting a move in the next hour
A good example of patterns within patterns :cheesy:
Ive taken a position long on euro/$, but not using this strat, which looks at a more long term view if i see anything worthwhile a mention i'll put up a chart
Am looking to reverse long above todays high, i can see a double bottom on the horizontal support @ 1.66 and also trend support from the dec. tri.
If you look on the longer time frames, say hourly, it is a continuation pattern. either way if it breaks north or the continuation breaks south the target it still the same.
Within the pattern there is a down trend and as you can see there is what could be perceived as a squeeze in price so am expecting a move in the next hour
A good example of patterns within patterns :cheesy:
Ive taken a position long on euro/$, but not using this strat, which looks at a more long term view if i see anything worthwhile a mention i'll put up a chart
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gbp/usd
I took my enrty as stated earlier above teh high at the time @ 1.6660. My next entry consideration is at 1.6735 but this is one of those time where waiting to see what happens is best. The price is at solid resistance RSI adds tothis as it is showing new highs for the day, a pull back her would be nice before a bo.
I took my enrty as stated earlier above teh high at the time @ 1.6660. My next entry consideration is at 1.6735 but this is one of those time where waiting to see what happens is best. The price is at solid resistance RSI adds tothis as it is showing new highs for the day, a pull back her would be nice before a bo.
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got the pullback i was expecting, order at 1.6735 and added to long
goober
your short entry was good from the point of view of trading against resistance and the downside potential was also reasonable (sloping support from the ascending side of the triangle)
Am also glad you ran a tight stop and as soon as it turned you came out for a nice little profit
But put in to context what you are trying to trade, the price has been consolidating into an ascending triangle which will most likely bo and continue north... the price is approximately 2/3rds through the pattern which typically is where a bo would occur... also this morning has seen a nice steady advance which then moved into a sharpish move up so the chances of this just being a pullback before a breakout were and still are high and therefore a low probability trade for a short with a sizeable profit expectation...
I didnt add to my postion initially becasue i thought i would most likely be stopped out of this entry, but i didnt short because i am expecting a bo so far i have saved 30 pips today
next resistance @1.6760 before a bo could happen. we may see a bit of sideways action first
goober
your short entry was good from the point of view of trading against resistance and the downside potential was also reasonable (sloping support from the ascending side of the triangle)
Am also glad you ran a tight stop and as soon as it turned you came out for a nice little profit
But put in to context what you are trying to trade, the price has been consolidating into an ascending triangle which will most likely bo and continue north... the price is approximately 2/3rds through the pattern which typically is where a bo would occur... also this morning has seen a nice steady advance which then moved into a sharpish move up so the chances of this just being a pullback before a breakout were and still are high and therefore a low probability trade for a short with a sizeable profit expectation...
I didnt add to my postion initially becasue i thought i would most likely be stopped out of this entry, but i didnt short because i am expecting a bo so far i have saved 30 pips today
next resistance @1.6760 before a bo could happen. we may see a bit of sideways action first
Newtron Bomb
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Business plan
In business, generally speaking, there are only three questions that you need to ask yourself
1 Where am i now:?:
2 Where am going:?:
3 how am am going to get there:?:
To put them into context with trading with the most recent pattern formation on gbp ie the ascending triangle
1 where am i now:?:
Flat, i have no open positions
2 Where am i going:?:
This market has 3 options up down sideways
Up and down are relative to the target which is approx 220 to 300 pips depending on where you are taking your reading from
sideways may spoil the pattern and will need to be reassessed when or if this happens
3 How am i going to get there:?:
Long - I will enter on the BO of horizontal resistance at 1.6750
My stop is, say, 30 pips (just an example)
My target is 1.6970 (220pips, minimum expectation)
short - I will enter on the BO of sloping support currently @ 1.6640
My stop is 30 pips
My target is 1.6420
Sideways - I will reassessed when new information come in for all 3 conditions
...always have plan B
Instead of saying "i think this is going here" try asking yourself questions "if it goes up what am i going to do?", "if it goes down what am i going to do?" "if it goes sideways what am i going to do?" so when something does happen you will know exactly what to do, and constantly reassess when new information comes in
HTH
In business, generally speaking, there are only three questions that you need to ask yourself
1 Where am i now:?:
2 Where am going:?:
3 how am am going to get there:?:
To put them into context with trading with the most recent pattern formation on gbp ie the ascending triangle
1 where am i now:?:
Flat, i have no open positions
2 Where am i going:?:
This market has 3 options up down sideways
Up and down are relative to the target which is approx 220 to 300 pips depending on where you are taking your reading from
sideways may spoil the pattern and will need to be reassessed when or if this happens
3 How am i going to get there:?:
Long - I will enter on the BO of horizontal resistance at 1.6750
My stop is, say, 30 pips (just an example)
My target is 1.6970 (220pips, minimum expectation)
short - I will enter on the BO of sloping support currently @ 1.6640
My stop is 30 pips
My target is 1.6420
Sideways - I will reassessed when new information come in for all 3 conditions
...always have plan B
Instead of saying "i think this is going here" try asking yourself questions "if it goes up what am i going to do?", "if it goes down what am i going to do?" "if it goes sideways what am i going to do?" so when something does happen you will know exactly what to do, and constantly reassess when new information comes in
HTH
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Newtron Bomb
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Goober said:
Goober
If you dont think it will get there, why did you trade it:?:
NB
Thanks for your comments.
The logic (or illogic) behind this particular trade was to test an entry against resistance, confirmed by a momentum indicator - the slow stochastic on this occasion.
I was uncomfortable with the trade from the outset as it "flew in the face" of a fundamental rule of mine - don't trade against the major trend!
However, as I am trying to develop a system that benefits from minor corrections as well as trend continuations, I decided to test it live. Because of my discomfort of trading against the major trend, I had a tight stop and traded with a small stake.
Sometimes, we need to be disciplined by the market to learn a lesson.
The lesson I learned? If it ain't broke, don't fix it! In other words, don't trade against the major trend!
I also enjoyed your post on business plans. A good trader is a boring animal, who sticks meticulously to his trading plan.
Goober.
Thanks for your comments.
The logic (or illogic) behind this particular trade was to test an entry against resistance, confirmed by a momentum indicator - the slow stochastic on this occasion.
I was uncomfortable with the trade from the outset as it "flew in the face" of a fundamental rule of mine - don't trade against the major trend!
However, as I am trying to develop a system that benefits from minor corrections as well as trend continuations, I decided to test it live. Because of my discomfort of trading against the major trend, I had a tight stop and traded with a small stake.
Sometimes, we need to be disciplined by the market to learn a lesson.
The lesson I learned? If it ain't broke, don't fix it! In other words, don't trade against the major trend!
I also enjoyed your post on business plans. A good trader is a boring animal, who sticks meticulously to his trading plan.
Goober.
