Some retail traders are better off trading forex from what I call a Absentee Trading perspective. Because many retail traders exit too early, have brokers trading against them, have brokers manipulating their platforms and etc. this particular crowd of retail traders may find Absentee Trading appealing.
Or course broker methods like these will cause retail traders to exit prematurely and be fearful. This is the psychological aspect of trading interfering with the average retail trader's ability to execute properly. In trading your skin must be thick and you must understand manipulation occurs.
Most seasoned traders won't argue with this point however, you can still have winning results.
Seasoned traders know manipulation occurs and they don't walk away and neither should the retail trader. Don't believe manipulation occurs? Ever got into a trade appearing to be dropping like a rock and the second you hop aboard it halts. I bet you had the feeling you were being singled out personally. Guess what! You were.
That's the feeling most retail traders will eventually have when trading thru a broker whom has a dealing desk {market maker}. But repeating, you can still be a winning trader with such brokers. You don't have to leave them and fork out extra dollars opening up accounts with brokers whom don't trade against their retail clients. If you prefer to trade with brokers whom don't trade against their forex retail clients then by all means go for it but the strategy I'll be mentioning could still work for you.
Be not mistaken forex is a very volatile market to trade and volatility in itself can and do wear some retail traders down. Also, for US retail traders the greatest moves are oftentimes happening while their asleep. This is another handicap.
The Absentee Strategy!
Objective: Analyze chart to predetermine where you want to enter, take profits and throw in the towel {stop-loss protection} trading the correct contract size in relationship to your trading capital. If you must watch THEN DO SO WHEN RE-TESTS ARE BEING DONE then if you see pattern swings can't advance any further USE THE ABSENTEE strategy.
Details:
On the hourly chart locate and mark via horizontal line ALL levels where patterns had stalled and reversed {pivot}. THIS IS OUR PRIMARY SUPPORT/RESISTANCE. Our secondary support/resistance will come to us via pivot point and/or fibonacci levels which are wonderful predictive methodologies. So, in essence we're comparing previous hourly pattern tops and bottoms {ranges} to our daily, weekly or monthly pivot point levels and fibs.
Now that we have a price level we can then place our automated entry orders and also define where we want to take profits and where we want to throw in the towel in case things go wrong with the trade.
If you must watch before making entries then check charts every 1hr if you're trading 1hr charts or every 4hrs if you're trading 4hr charts. If you're convinced and see proof the pattern swings {waves} can't advance then use this strategy.
Once orders are placed LIVE with your decision and let the automated do the work while you go play golf or etc. In the beginning you'll find it hard not to look at the charts but remember 2 things. #1. You've been conditioned and #2. The automated orders will handle everything for you.
You want to be part investor / part trader. This approach will force you to trade smart with your trading capital as well as free a lot of your time.
This approach isn't for every retail fx trader and there're many other strategies which also work but it's an alternative IF you're struggling and your nerves are being tested.
Word of advice: Stay on the hourly charts and only use to smaller charts to help you get into trades. Direction is far better on hourly. Target pullbacks on hourly, daily and/or weekly charts using the approach and you'll likely favor it.
Indicators lagged so read the pattern swings and let them tell you when they've gone as far as they can go. Oscillators {rsi, slow stochastic, cci and etc.} help with telling traders how much underlining strength exist behind each swing so take note of this as well.
"This is an aggressive style and with smart money management you can produce a nice win/loss ratio".
Good Luck with your trading
Or course broker methods like these will cause retail traders to exit prematurely and be fearful. This is the psychological aspect of trading interfering with the average retail trader's ability to execute properly. In trading your skin must be thick and you must understand manipulation occurs.
Most seasoned traders won't argue with this point however, you can still have winning results.
Seasoned traders know manipulation occurs and they don't walk away and neither should the retail trader. Don't believe manipulation occurs? Ever got into a trade appearing to be dropping like a rock and the second you hop aboard it halts. I bet you had the feeling you were being singled out personally. Guess what! You were.
That's the feeling most retail traders will eventually have when trading thru a broker whom has a dealing desk {market maker}. But repeating, you can still be a winning trader with such brokers. You don't have to leave them and fork out extra dollars opening up accounts with brokers whom don't trade against their retail clients. If you prefer to trade with brokers whom don't trade against their forex retail clients then by all means go for it but the strategy I'll be mentioning could still work for you.
Be not mistaken forex is a very volatile market to trade and volatility in itself can and do wear some retail traders down. Also, for US retail traders the greatest moves are oftentimes happening while their asleep. This is another handicap.
The Absentee Strategy!
Objective: Analyze chart to predetermine where you want to enter, take profits and throw in the towel {stop-loss protection} trading the correct contract size in relationship to your trading capital. If you must watch THEN DO SO WHEN RE-TESTS ARE BEING DONE then if you see pattern swings can't advance any further USE THE ABSENTEE strategy.
Details:
On the hourly chart locate and mark via horizontal line ALL levels where patterns had stalled and reversed {pivot}. THIS IS OUR PRIMARY SUPPORT/RESISTANCE. Our secondary support/resistance will come to us via pivot point and/or fibonacci levels which are wonderful predictive methodologies. So, in essence we're comparing previous hourly pattern tops and bottoms {ranges} to our daily, weekly or monthly pivot point levels and fibs.
Now that we have a price level we can then place our automated entry orders and also define where we want to take profits and where we want to throw in the towel in case things go wrong with the trade.
If you must watch before making entries then check charts every 1hr if you're trading 1hr charts or every 4hrs if you're trading 4hr charts. If you're convinced and see proof the pattern swings {waves} can't advance then use this strategy.
Once orders are placed LIVE with your decision and let the automated do the work while you go play golf or etc. In the beginning you'll find it hard not to look at the charts but remember 2 things. #1. You've been conditioned and #2. The automated orders will handle everything for you.
You want to be part investor / part trader. This approach will force you to trade smart with your trading capital as well as free a lot of your time.
This approach isn't for every retail fx trader and there're many other strategies which also work but it's an alternative IF you're struggling and your nerves are being tested.
Word of advice: Stay on the hourly charts and only use to smaller charts to help you get into trades. Direction is far better on hourly. Target pullbacks on hourly, daily and/or weekly charts using the approach and you'll likely favor it.
Indicators lagged so read the pattern swings and let them tell you when they've gone as far as they can go. Oscillators {rsi, slow stochastic, cci and etc.} help with telling traders how much underlining strength exist behind each swing so take note of this as well.
"This is an aggressive style and with smart money management you can produce a nice win/loss ratio".
Good Luck with your trading