My 5% Trading Understanding with the Market

So if i presumed 1.3157-1.3300 is zone of consolidated range, and i choose to trade on breakout this is what i should see.



There should be s turn r, so if a trader with buy at 1.3157-70, might want to do is he can bet on a buy if 1.3157 is overlappsed by bull candles to trade retracement back, we might have a bigger range. alternative, he can cut and change his buy to sell with very good stop loss and risk reward to trade the breakout to the downside should it happen.

1.3125 is still a r turn s area of concern, once its broken, the probability of it swinging down is very very high.

I don't recommend using limits orders, it can be done but with stop loss after r or s, should be applied to prevent catching a low probability trade. If a R is valid, price should not shoot higher, just like how 1.3299/1.3300 hold yesterday with 1.3307 as our overshoot high. When price is travelling upwards to 1.3299, i am cautious, if a trader want to sell here with sell limits his stop loss should not be after 1.3307 or more, meaning its a very very sharp position should the price be picked up.

What i like to do and favor doing is that, i want rejection, 1.3299 was rejected and swing down to h and s, r turn s at 1.3253 area, so i know there's a valid resistance still in place, what i can do is to place my limits at 1.3280-99 again and bet on the down side with stop loss after 1.3307. Alternatively, what i can do is when price move up to 1.3299 in bull candle, i place sell stops after that 1 hour candle's support somewhere around 1.3275/80, should the down move happens, i can catch it and my stop loss is still after 1.3307, There can be buy stops at 1.3310 with stop loss after 1.3290-99 area as well.

retail trader vs portfolio trader is very dependable, as they seek different thing. A retail trader wants to increase his % gain and make money in the market faster most of the time. Unless the retail trader have an account of 100K and more, and is an experienced and seasoned trader, i won't actually classify him as a retail trader, i would call him a professional trader of his own.

if you understand carefully, most retail traders are leveraging way too much, 2% per trade is not even recommended in the industry unless you are doing swing trading or really really confident with all the breakout set ups with very tight stop to increase the leveraging.

if i am a retail trader of an account of 1000-10000 for example, most people would want to earn few hundreds a day commonly in their mindset, but they are also exposing the risks to the market. For that retail trader comments was mainly found in supertrader's thread, as he's one of the few that are trying too hard and doing too many system hopping.

A portfolio trader have a clear game plan and knows what his objective is, his main objective is not to make money but is not to lose money. Which is why their funds are way bigger compared to a normal trader, as they are also likely to handle other's persons money.

My comments on FF are not fixed, as they are commentary to each thread/topic against the group of traders mainly to provide some views. They should just be read and not taken as educational stuff. Should a proper education stuff be posted, i would write it properly as it suits different category of people/personality/trader. Like swing, intraday, scalper/ long term and etc.

End of day, its always the same question, what are you looking for in this industry? to make money and how u planned to do it.

Some wealthy persons they simply don't trade, they just look for traders and allocate a portion of investment with each traders they can find. and have adjusted their stop loss with them.

For instance, he just pick 5 traders in the market he found online, and give them an account of 100k to trade with, as these traders are performing on their own accounts/pamm. what the this person can do is to manage his profit and loss only like a trader managing other trader.

Once any trader loses more than 20k dd/ losses, he pull out, if a trader can make money for him, he just stay and build and protect his profits and etc.

Accumulation-> Allocation -> redistribution -> regeneration is the 4 main factors of how to generate money in this industry.

100k-> 5 k each trade , 1:2 rr etc, -> winning trade of 10k split into further 2 5k trade - > re generate all probability -> back to accumulation of capital/earnings.

if anyone did notice, eur/usd just pull the stun on the right pic, it retraced and reject down.

All timeframe are the same as long its below daily chart, if u use 5mins or even 15mins one can just zoom out, the horizontal line is still the same. The earlier picture that i posted is an 1 hour TF, even if the price action shows the pull back retracement sell signal of a range of 1.3157-1.3300 on the hour 4. You can still see them in 1hour by zooming out or even 5min by zooming out.

Yes i always refer to eur/usd price action. Price action and the chart itself is the real price we should trade, if support is broken after price has been floating near 1.3157-1.3300 in a range, one should look for failure of pullback after support 1.3157 was crashed.

The earlier lift from 1.3125 was the R turn S which provided a bounce/retracement, as common bids will be placed there technically of how we sees it. Next, the spanish and german employment data released in europe trading sessions gave much lift for eur to go back into 1.3165-72 range before failure to sustain happened, so there was a pull back into 1.3157 area and above. If a trader is not comfortable selling it upon seeing fundamental's news thats look well on eur/usd, he can choose to by then place the sell stops again, at level of interest, it can be 1.3149 again or even lower 40 and etc, because ask ourselves.

If we trade to buy up, we want price to go up right? if price cannot go up? then it will go down. So if price looks like it was going up at 1.3160++ range, to catch a possible trend or breakout, i can always place a sell stops positions lower, if price meant to go down, it will go down.

just like how 1.3125 previously was a resistance and how it break out into 1.3180 before going into 1.3300. So that's trading the breakout price action.

Why breakout price action? With a triple top seen on the range period, do we not think more and more profit taking will take place if it can't goes up? if it can't goes up, the buyer tend to change into seller eventually. And trailing stops will be move higher and higher, and trailing stops get outs -> trailing stops meaning adjusted stop loss of the traders of their own trades. This will also meant the ratio of buyer and sellers will starts to change imminently.

So we have a good support at 1.3157, visually, if i have a buy from 1.2657 our recent lowest, and if i refused to take profit at 1.3300, would i want to trail to 1.3150? and in case price reversed i am still out in profit and look for a new set up again?

Price actions differs, depending on the market. -> Is it trending? Is it ranging? is it breakout? Different price action, s and r reacts differently, and the potential set up differs as well.

if its trending, we look for pullback and enters, if its ranging, we buy lo sell hi. if its breakout, we sell low buy hi.

hi for those, whom may be following some of my earlier posts, and are interested to get some knowledge or information to be shared, pm me. i will let u know the small portal that i am updating, hope u all may learn something there.

I am definitely not the best, but i am there to share .


I am not soliciting here. thanks and bye

Thanks for the update, will send you a pm and let me know on the portal info..will wait for it,

Those interested to learn something different, can visit my site here. i will update more contents and information next month after i return from vacation.

Meanwhile, there are still trades calls that i have made, and methods of trailing and placing orders.