Money is made by sitting, not trading. Jesse L. Livermore
- #223
- Feb 7, 2018 4:37am Feb 7, 2018 4:37am
- Joined Aug 2009 | Status: Just trade it! | 1,230 Posts
Money is made by sitting, not trading. Jesse L. Livermore
{quote} A closed bar not being crossed by the line is not necessary although in many cases it is wise. A couple of things to note with this entry. This is the confirmation of wave 3. Price crossed the line yesterday Today price rose, failed to cross back through the line & more importantly failed to rise above yesterdays high. Price then dropped below the entry of the day showing clear intention to keep going. {image}
Hi Ralffe just subscribed and thank you for this system.
Am I on the right track here. Ignoring all news and SR lines and keeping my chart clean as per your instructions, I have entered a short on the EUUS.
Thank you.
- #236
- Feb 7, 2018 11:22am Feb 7, 2018 11:22am
- Joined Jul 2016 | Status: Trader | 2,534 Posts
A quick word on money management & wealth accumulation. I like to take 2 trades on each pair traded. The first is never closed until the trend is over. The 2nd is closed at every pull-back & another opened when the pull-back is deemed over. For example, I closed one AU trade this morning then opened another at 0.7865. 127 pips in the bank & still 2 trades running.
This makes me think you could do something at a line break that I call 'underhill-overhill'-ing. This is something I do in my more active trading.
So you have 2 trades open. The very first one that I'll call the 'anchor'. Let's say that trade is now long in the tooth and the line is broken for good, and so you close the add-on trade.
However you leave the 'anchor' trade open while you open a trade in the opposite direction. If it's a long trade, for example, you now have a very profitable long trade, at the bottom of your 'hill' and you have a short trade open at the top. Now suppose things don't work out, and the reversal turns out to be a fake-out. You still have one big trade and one comparatively tiny loss. Close the small trade and continue on with your anchor trade. If the new trade works out for a while, put a break-even stop to lock in your profit, and then if it still proves to be a fake-out in the end, close it and you've incurred no loss and still have your anchor making gains.
If the reversal proves itself to be real beyond a doubt you 'pull up' the anchor and add-on in the new direction.
Although this would slightly reduce the value of your anchor trades, using this method you would never be underwater in any position except at the very first trade of a new instrument. Think of how much more easily you'd sleep while shorting SP500 for example, if you'd been holding the bull run for some time. If this correction turns out to be yet another one-off, you've really risked nothing.
Only for non-US traders, sadly.
- #238
- Feb 7, 2018 4:10pm Feb 7, 2018 4:10pm
- | Joined Jan 2018 | Status: Trader | 1,108 Posts
{quote} Wow, EXCELLENT entries on those trades!!.
Thank you very much sir
