Disliked...
There is no need for 'cut your losses...' by using stop loss orders for Market Makers to take advantage of. If you have to use SL, using it at a higher TF than the TF of your entry is a more logical approach. This should keep the level of frustration in check, make fewer trades and have a defined 'strategy' to take profits as well.
...Ignored
Nice to see some good posts from you guys. Excellent indeed.
If I am to add a few words from my experiences, I would say that having a plan and following it is the most important, but when I say a plan, not one of those things on 100 pages, just a simple if-then.
For example: Let's say I am interested to trade 50% of the previous Daily candle. I would think in advance:
- if price reaches 50% of the previous Daily candle, ONLY then
- if on the 1h chart I would get any weakness, like a pinbar, dojis etc then I would be looking to go short, with SL above the hourly candle that triggered my setup... like if it was a pinbar the SL would go 2-3 pips + spread above the pinbar
- if however on the 1h chart the 50% Daily level is broken with momentum, then I would wait for a retrace to try to enter at a better price (if no retracement, I would not take the trade)
The above is just a fictive scenario, but I think that visualising in advance what you are about to do helps you settle your thoughts. If you think that's stupid, remember how many times you lost money on entries because you got emotional, thinking you were missing the train
Kindest Regards,
Cam