Day trading on the gbp/usd. help...

[welshsteven]

Hey everyone,

I have been trading live for about 6 months and theoretically for a year prior to that. I currently define levels of support and resistance, double tops/ bottoms etc, i have specific entry rules for trading breakouts and bounces of these support + res trendlines. I also place emphasis on prevailing trends, MA's and fib levels as well as news reports released that could effect the market, all in a bid to whittle out the good trades from the bad... My main time frame is the 15min chart, but i keep an eye on the 30min, 1hr, 4hr, daily, for larger trendlines and confirming breaks.

The reason I write this thread is because, i feel like i'm on my own, I dont know anyone who does the same thing as me, and everyone I talk to on here has completely different strategies, which all seem interesting and exciting, but i'm new to this so i feel i should master what i do now. I would love other peoples opinions on my trading strategy and if possible, to talk to someone who uses the same strategy!! maybe share trades, thoughts and resutls, as when I make a mistake or realise something, I have no one to share with.

Thanks for reading guys,

Steve

 

[ffsear]

Yes I trade in the same sort of way. I look at the 15 minute to identify fx pairs that are trading in a range. Once established, I wait for a breakout of this range and then use a fib retracment as my entry signal. Stop loss is set at the bottom of the range. I use the daily charts to look for potential movment and trends, I only enter the trades that have a potential to move a greater distance then the identified range and thus provide at least a 100% return.

Of all the different strategies I have tried and tested over the last 5 years, this one is by far the simplest and most effective. Obviously money and risk managment are the key here.

Don't be fooled into thinking that a trading plan has to be over complicated. It took me years to realise that support and resistance are by far the most important thing.

You not alone my friend. Why do you only look at GBP-USD?

 

[welshsteven]

hi ffsear,

well i was trying hone my skills, and i've noticed that the cable seems quite volatile with regards to larger moves in general, so i figured stick with that one, do you recomend any other pairs in paticualr or do you follow them all.

How come you only trade a rangeing market (am i correct in thinking this is sideways movement?) and with regards to the fib retracement you use for entry signals, where do you "stretch" your fib from/to and whats is your entry signal. I have read and re-read many strategies and I didnt realise how over complicated they can become, i like keeping it simple and plenty of people have said that it's the best way.

I do have a money management strategy in place and now realise (after a loss) that it is just as important as the trading strategy. haha.

many thanks for replying mate. appreciated

steve

 

[Rossini]

Hi matey

hi ffsear,

well i was trying hone my skills, and i've noticed that the cable seems quite volatile with regards to larger moves in general, so i figured stick with that one, do you recomend any other pairs in paticualr or do you follow them all.

I would stick to just a handful of markets, one is fine, there are always plenty of opportunities just trading one market.

How come you only trade a ranging market (am i correct in thinking this is sideways movement?) and with regards to the fib retracement you use for entry signals, where do you "stretch" your fib from/to and what's is your entry signal. I have read and re-read many strategies and I didn't realise how over complicated they can become, i like keeping it simple and plenty of people have said that it's the best way.

It depends what TF you are looking at a sideways move on one TF can be a trend on another.

I do have a money management strategy in place and now realise (after a loss) that it is just as important as the trading strategy. haha.

many thanks for replying mate. appreciated

steve

 

[Black Swan]

to be honest you sound pretty sussed to me, there are IMHO in excess of 50 strategies that will work depending on you and what you want. One of the lonliest spaces to be in is being self employed, being a self employed day trader can take it to the outer reaches of that feeling of isolation.
Have you considered trading with Dan Arm? You'll find him over on the "all about the pips thread" in the journals section. It wasn't for me, I've got my thing going OK atm, but I know a lot of folks are doing well with the guys there and have gone from novice to making good pips each /most days. Only 90 quid a month for the membership lots of live chat and a good craic (as the Irish say).

 

[Black Swan]

sorry meant to add, today I've been mostly trading the following forex pairs; EUR/JPY, EURO/USD, USD/JPY and cable. I moved up/on from just cable and EURO/USD and indices a month or so back. TBH my view (fwiw) is that one graph looks pretty much the same whether it be Mr Spock's Vulcan currency versus the Klingons, or cable. Only thing matters is all the signals being right for entry and exit...most of the time...

 

[Rossini]

If you find it so isolating, why not find someone to trade with and trade with them in a office?

 

[Technically Fundamental]

I'll trade with you... Just give me capital

 

[Rossini]

I'll trade with you... Just give me capital

Lol, I think I will continue to trade my own capital, being a control freak and all that;-)

Where do you trade from?

 

[ffsear]

How come you only trade a rangeing market (am i correct in thinking this is sideways movement?)

I look for 2 touches of a support and resistance before I declare a range, so I guess this could be called an area of consolidation with a trending market. The range itself may only be a few hours old.

 

[Technically Fundamental]

In bed on a laptop or when I'm supposed to be working.

I remeber I lost £30 during a 5 minute meeting with my boss cos I clicked to enter when he walked over and called me away. I wanted to punch him.

 

[ffsear]

and with regards to the fib retracement you use for entry signals, where do you "stretch" your fib from/to and whats is your entry signal.

Its depends on the size of the range and the price action. But generally I draw the fibs from the top of the breakout move, down to the bottom of the range it broke out of. My entry point is anywhere between the 23% and 38%.

 

[Technically Fundamental]

Trader Dante shouted at me for using 28 fibs...

 

[Black Swan]

Trader Dante shouted at me for using 28 fibs...

Trader Dante shouted at you for telling 28 fibs?

 

[Technically Fundamental]

lol no he said 28 fibs were b*ll****

 

[welshsteven]

sorry meant to add, today I've been mostly trading the following forex pairs; EUR/JPY, EURO/USD, USD/JPY and cable. I moved up/on from just cable and EURO/USD and indices a month or so back. TBH my view (fwiw) is that one graph looks pretty much the same whether it be Mr Spock's Vulcan currency versus the Klingons, or cable. Only thing matters is all the signals being right for entry and exit...most of the time...

yeah i can see what you mean, as long as they act the same way, thats all that matters. Maybe the less volaatile one's will provide a more relaxed trading experience so to speak, they seem to move so much slower during the london session than the cable. cheers

 

[welshsteven]

Its depends on the size of the range and the price action. But generally I draw the fibs from the top of the breakout move, down to the bottom of the range it broke out of. My entry point is anywhere between the 23% and 38%.

ahhh right ok then, interesting. my entry point is generally a set distance above the high point of the breakout candle, dependant on market range and volatility though! what do you think? i may road test the fib levels tho! cheers

 

[welshsteven]

In bed on a laptop or when I'm supposed to be working.

I remeber I lost £30 during a 5 minute meeting with my boss cos I clicked to enter when he walked over and called me away. I wanted to punch him.

haha, i've done that, panicked and hit the touch pad and entered a trade going the wrong way. lol. was gutted.stupid touch pads!!! :-@ lol