Price Action Scalping

[DionysusToast]

From now on I am going to post less, I see not much gratitude in some people and also some stupid questions like "how can you make 2% on 7 pips gain"? D'ho? .

Sigh....

It's not a stupid question.

I was merely asking about the sort of leverage and risk management you use to gain a fairly large percentage from a very small move.

For example, on Crude, you could gain 2% from a 7 tick move... You could trade 3 contracts on a $10k account and make $210 from such a move.

On the other hand, crude could easily whip against you 20-30 ticks and you'd be 6%-9% down.

As a fellow trader, I am merely interested in how you mitigate such risks or if your markets are so slow that there is no need to.

I am not sure why you find such questions annoying.

 

[Mike Kshemaraja]

Sigh....

It's not a stupid question.

I was merely asking about the sort of leverage and risk management you use to gain a fairly large percentage from a very small move.

For example, on Crude, you could gain 2% from a 7 tick move... You could trade 3 contracts on a $10k account and make $210 from such a move.

On the other hand, crude could easily whip against you 20-30 ticks and you'd be 6%-9% down.

As a fellow trader, I am merely interested in how you mitigate such risks or if your markets are so slow that there is no need to.

I am not sure why you find such questions annoying.

Because your attitude reflects your persona, you ask questions that are demanding, without saying thank you.

This is was your first post here:
"Where did you short there? At the top of that micro-range or on the breakout?"

I answered you, and you did not have the decency to say thank you. That is bad manners on my planet.

Then you come asking very weird questions in my view, still with the same attitude, it is very clear that I am trading forex and is very clear that you can risk 2% either with one million or one dollar in capital, as I explained you before.

You are not welcome here, this is my thread, unless you change attitude, otherwise I will report you as trolling.

Read my introduction post (below), respect is a must.

The idea is to show your thoughts, how you trade and learn from others visually.

Most of the comments should be accompanied with a visual or chart.

If you like to be part of it, post your visual with motifs and thoughts.

Please post winning and losing trades alike, they are both very important.

This is a visual thread only, scalping any instruments.

I do not believe in concepts, they limit our view.

Only post when is convenient, myself I will not posting while I am trading, I tend to lose focus.

Healthy and honest comments on others trade is encouraged, as are a sense of humor, compassion, altruism and companionship.

Bullying, vulgarities, cheap sarcasms and narrow minded attitude of any kind that could offend others for any reason will not be tolerated here.

The idea is to grow together scalping, sharing what we perceive based on our own experiences (there are not secrets in trading).

Let's see if we can achieve something decent.

“If you want to learn something, read about it.
If you want to understand something, write about it.
If you want to master something, teach it.”

mk

 

[DionysusToast]

Well I am sorry if I offended. This was not my intent.

It is simply that on this forum, and most others, we have a discussion and don't add a thank you for every reply.

So anyway - THANK YOU for all of your replies so far!

What I am doing is certainly NOT trolling. Simply making an inquiry about your risk management.

I agree you can gain 2% per trade. You can do it on Futures but to do it on the ES and to do it on Crude are two very different things in terms of risk.

To gain 2% on a trade with a 7 tick move on crude would involve risking 6-9% because of the volatility.

I am GENUINELY interested in how this plays off with Forex...

 

[Mike Kshemaraja]

Well I am sorry if I offended. This was not my intent.

It is simply that on this forum, and most others, we have a discussion and don't add a thank you for every reply.

So anyway - THANK YOU for all of your replies so far!

What I am doing is certainly NOT trolling. Simply making an inquiry about your risk management.

I agree you can gain 2% per trade. You can do it on Futures but to do it on the ES and to do it on Crude are two very different things in terms of risk.

To gain 2% on a trade with a 7 tick move on crude would involve risking 6-9% because of the volatility.

I am GENUINELY interested in how this plays off with Forex...

Ok, read the thread from the 1st post. I only trade audusd (Asian Session) and eurusd (early European opening). I trade the 70 tick chart (similar to the 30 seconds).

Open a demo account with Oanda or CMC, they do not expire and they both run the 30 seconds TF. They also have all the information available regarding leverage and so on. You do not need to open a live account with minimum deposit and you can trade only one unit if you wish. You do not pay commission but only spreads, seems like CMC have better spreads, but Oanda have a better reputation.

 

[Mike Kshemaraja]

Foxmajster

I replayed to your message, I hope you got it. Let me know otherwise.

 

[splashy]

Hi Mike, as i mentioned on the other thread, I'm just trying to get my head around your money management too. Can i ask how much % of your capital you risk on any trade?

 

[Mike Kshemaraja]

Hi Mike, as i mentioned on the other thread, I'm just trying to get my head around your money management too. Can i ask how much % of your capital you risk on any trade?

Yes, of course. I trade only audusd and eurusd.

I risk at the moment 2% per trade. I have a standard SL and TP of 7 pips when I trade audusd during Asian session and SL and TP of 10 pips when I trade eurusd during European opening.

My averages losses are about 5 pips for the 7 pips SL and about 7 pips average for my 10 pips SL.

My TP (target profit) is always set to either 7 or 10 pips.

So when I trade audusd as soon as I enter the trade, my SL and TP is set to 7 pips risking 2% of my capital, if I gain 7 pips I make 2%.

Lets say that my capital is $10000, I risk per trade $ 200 (2%) that buys me 285.114 units, (200/0.0007). If I lose 7 pips I lose 2%, if I gain 7 pips I make 2%.. My leverage is 50 to 1 and I only take one trade at the time.

Every day I take about one to 5 trades.

Oanda is a decent brokers in my view, also check CMC.

Which Instrument do you trade and how things are doing?

 

[foxmajster]

Ok, although I am just learning scalping, especially this super-low TF (30 seconds) I will post some of my trades, encouraged by Mike. Currently demo trading and will continue for some time before I might switch to real.
This one was taken on Friday on EURUSD, channel being formed, middle resistance (middle yellow line )was broken, pulled back, broken again, entered trade at candle start at A, SL 5 pips, first TP was taken at the resistance point B (half of trade closed for 6 pips win), SL moved to BE and let it run to TP2 for 10 pips win.
Don't know really if it was smart to not close all at TP1 but had feeling that it might go lower.
Comments?

PS: kudos to Mike for starting this excellent thread and sharing his ideas, hopefully it will attract other traders to post their trades.

 

[Mike Kshemaraja]

Ok, although I am just learning scalping, especially this super-low TF (30 seconds) I will post some of my trades, encouraged by Mike. Currently demo trading and will continue for some time before I might switch to real.
This one was taken on Friday on EURUSD, channel being formed, middle resistance (middle yellow line )was broken, pulled back, broken again, entered trade at candle start at A, SL 5 pips, first TP was taken at the resistance point B (half of trade closed for 6 pips win), SL moved to BE and let it run to TP2 for 10 pips win.
Don't know really if it was smart to not close all at TP1 but had feeling that it might go lower.
Comments?

PS: kudos to Mike for starting this excellent thread and sharing his ideas, hopefully it will attract other traders to post their trades.

Foxmajster,

Thanks for your words.

Regarding your trade, BRAVO, I can see that you are serious about your work, and taking a trade in the direction of the least resistance is the way to go, do not forget that (after the triple top, she formed lower tops). The setups are just a way to get in. In this case I would enter the same way. That middle line has been touched several time and before the break, prices were squeezed between the line (signal line) and the average, meaning a pre pressure with an exchanges of contract and price going not where.

In this case prices formed another mini range and then went, and that is a fair indication to why trades need to be taken in the direction of the least resistance.

Now regarding the SL, I think 5 pips during European session could be to small, just reduce your amount and take it to 10.

Did you do the right think taking half profit at the next support? Well looking in hindsight is much easier, but only speculation. Technically you need to be aware of next support and also of the length of the bars before you took profit.

I am not sure that moving the SL to BE is a good idea, best in my view is to move it above/below the previous swing high/low.

Demo is the way to go, but not for long time (lets say a month), as soon as you feel comfortable, open a live account with only $10 and treat it like an $100000 account, trading real money is different, mr ego is coming to play, and he will make it difficult to you at any opportunity

I spend about 8 hours a day on the screen, (and I love it). Spend as much as you can as well and be selective with your trades(Friday I took 4 trades), do not worry if you miss trades.

Monitor yourself and how you feel, are you getting anxious in getting in? out? inpatient? revenge on your last losing trade? overconfident? Those are just feeling created by having concepts in your mind, just be aware of them and they will disappears, focus on your chart, trade what is there, not what you want to see.

Follow the dance and trade with your heart no with your mind.

Post as much as you can, (but only when convenient, you do not want to be distracted) with all the logic behind it.

Posting will help you to understand more about yourself.

And once more, BRAVO.

Mike

 

[Mike Kshemaraja]

Yep, looks like he means $285,000. You can trade in quantities of 1k with some brokers, and no they don't only quote in pips, but one tenth of a pip, as I'm confident you're aware.

And "how much leveraged this is" is clumsy English. Put more thought into your posts, it's not becoming of a vendor :cheesy:.

Mike, looks like you're about to get hit by the order book stasi. To save you some trouble, your method definitely doesn't work, and you need to start using the order book and quit forex. Mug's game, apparently/obviously.

Shakone

LOL, now I understand, I did not see your recommendation post comment.

I did not get it that you were joking and I was surprise that was coming from you to be honest in which I read very insightful posts. Keep it up.

Mike

 

[Mike Kshemaraja]

Ok, did not trade much today for various reasons, but took this trade:

Range (bigger box), did not like the way it broke, kept aside, then another little range (small box) . I am in @ 1.3226, target reached without touching the average.

Note that all this developed just above the 1.3220 which acted as support also together with the two blocks.

 

[The Leopard]

Ok, did not trade much today for various reasons, but took this trade:

Range (bigger box), did not like the way it broke, kept aside, then another little range (small box) . I am in @ 1.3226, target reached without touching the average.

Note that all this developed just above the 1.3220 which acted as support also together with the two blocks.

Looks OK to me. I'd call this a with-trend breakout pullback set up, nice and simple.

 

[The Leopard]

Prices reaches major bottom (A), bounces, breaks, I am in 1 pips below the low.

+7 pips 2%

I quite like this one as well - I often trade along similar lines. I like the fact there was enough of an up move before you sold because there will be trapped bulls in there who will liquidate where you enter.

 

[Mike Kshemaraja]

Second trade of the day.

Range, did not like the break, not pre pressure, kept cool, not easy today, I feel my blood is running wild (too much good food during the weekend, including a nice bottle of Australian wine from McLaren Vale).

She pulled back, forms a nice doji just at the above barrier, ( Note that the range is providing support with the round number, I am in, bears trapped, they need to cover becoming bulls pushing the trade in my direction, took just a few minutes.

Take care.

 

[The Leopard]

Second trade of the day.

Range, did not like the break, not pre pressure, kept cool, not easy today, I feel my blood is running wild (too much good food during the weekend, including a nice bottle of Australian wine from McLaren Vale).

She pulled back, forms a nice doji just at the above barrier, ( Note that the range is providing support with the round number, I am in, bears trapped, they need to cover becoming bulls pushing the trade in my direction, took just a few minutes.

Take care.

Another good trade I think. It seems we approach things in a similar way. I would actually have entered earlier (thirteen bars before, the green bar just below the moving average would have been my signal) although I think your entry was better in many ways).

Are you using a 30 second chart? There is no way I could think that fast - 5 minutes is the absolute lowest for me.

 

[Mike Kshemaraja]

Another good trade I think. It seems we approach things in a similar way. I would actually have entered earlier (thirteen bars before, the green bar just below the moving average would have been my signal) although I think your entry was better in many ways).

Are you using a 30 second chart? There is no way I could think that fast - 5 minutes is the absolute lowest for me.

Yes we do, because the Al Brooks school is there.

Yes you would get in there, is that because of the double bottom?

Myself I would have like to get in much before (see chart) Why? brokes, nice long bars, nice pull back, bounced from broken line and round number, that is just screaming "buy me, buy me". But I did not, because I was posting and arguing with the barbarian. Darn

You should also post your charts, there are some good people here that monitoring the thread, and they will learn so much from you me included.

 

[ChocolateDigestive]

short on the euro coming shirley

 

[The Leopard]

Yes we do, because the Al Brooks school is there.

Yes you would get in there, is that because of the double bottom?

Myself I would have like to get in much before (see chart) Why? brokes, nice long bars, nice pull back, bounced from broken line and round number, that is just screaming "buy me, buy me". But I did not, because I was posting and arguing with the barbarian. Darn

You should also post your charts, there are some good people here that monitoring the thread, and they will learn so much from you me included.

"HERE" would be too early for me, although I can perfectly well see why you would enter there.

The place I chose:

Strong up move followed by a decent pullback, double bottom, and it is pulling back to where it broke out above a prior high.

 

[ChocolateDigestive]

euro looks exhausted

 

[Mike Kshemaraja]

"HERE" would be too early for me, although I can perfectly well see why you would enter there.

The place I chose:

Strong up move followed by a decent pullback, double bottom, and it is pulling back to where it broke out above a prior high.

Nice one.