I love interacting with fellow traders.
I guess we are a different breed. Although I have been trading for years, it has only been the last 7 or 8 years that I started achieving consistent success.
There are many different setups that work, some with indicators and others with a naked chart. You can have success with either and anything in between. I know because I have.
When I first started trading years ago, I would buy every book that came out. I went to trading seminars more than a few times. As the years passed, I started searching the internet for every new trading system that would come along. I was going to find "that system" one way or the other. I'm very sure many of you on this forum have been there. In fact, I'm 100% sure some of you are there now.
I'm going keep this thread going with a very good and very effective method. I use some moving averages but you can trade with the same logic with a naked chart if you choose. I think the SMA's help me see things quicker so I can sift through all the pairs quickly.
The trade will always have an initial hard stop. This will always be 1% of my balance so position sizes will change accordingly. Take profits will vary as I am always looking to get that runner. I usually move the stop to break even once the trade is ahead more than the initial risk.
The timeframe is very important to me. I have had some success trading on lower timeframes but I have found it does not suit me. I do not like the way I feel when trading small timeframes. That said, I mainly trade the daily charts.
It is a good idea to be aware of news and news events. Of course, with President Trump things can and do change on a dime sometimes. But do be aware.
The pairs I look at are all the major and minor crosses. I do not look at exotics. This is not to say you cannot. I just don't.
So here is my method. I use 3 simple moving averages. The 200, 50 and 20.
The 200 will determine the direction I will trade. Prices above, I'm looking to go long. Prices below, look to short. Pretty simple.
For a long trade, I want the 20 and the 50 going up with a nice slope. When they are close together and criss crossing all the time, I'm not interested. The short trade is just the opposite with the averages going down. The idea here is to avoid non trending markets.
The entry setup is something most of us have seen many times before. I look for a pullback or relief rally into the area of the 20 SMA. Here you simply look for a reversal setup. You will get a nice stop loss area which would be the high or low of the rally or pullback. Here you determine your size based on the PIP risk.
Once in the trade, the fun begins. I normally just leave it alone until my profit exceeds my risk. At which point, I will often move stop to break even.
As I said at the beginning, I am looking for runners or huge moves. Sometimes, however, your trade will com in to a strong support or resistance area. Depending on how I feel and the situation presenting itself, I may take 1/2 off or on rare occasions pull the plug on the whole trade.
In most cases, I let it run by moving stops to daily fractals that form along the way. If you go back and look at daily charts you will see that some of these runs go a long, long way.
So now what? What will I be doing on this thread? Although I do enjoy helping others, I like the idea of running this thread to keep my trading relevant.
I am going to make posts explaining what I am looking at and why. I am hoping others will do the same. Collaboration is a great thing. Hopefully some of you will post your thoughts and ideas based on the straight forward concepts mentioned in this post.
It is also helpful to post or talk about things that we all just need to get out or vent. An example would be getting your stop hit by 1 PIP and then see the market roaring in the the direction of your original trade. I say vent! Yell, scream, bitch and moan. The key, however, is to QUICKLY, forget about it and let it go. This may be the most important thing we need to learn if we want to have success trading.
Finally, let me answer the question as to why the name 6200trading. I move to Toronto from NY a couple of years ago. The address of my place has the street number of 6200 and I trade mostly from there. Thus 6200trading.
I guess we are a different breed. Although I have been trading for years, it has only been the last 7 or 8 years that I started achieving consistent success.
There are many different setups that work, some with indicators and others with a naked chart. You can have success with either and anything in between. I know because I have.
When I first started trading years ago, I would buy every book that came out. I went to trading seminars more than a few times. As the years passed, I started searching the internet for every new trading system that would come along. I was going to find "that system" one way or the other. I'm very sure many of you on this forum have been there. In fact, I'm 100% sure some of you are there now.
I'm going keep this thread going with a very good and very effective method. I use some moving averages but you can trade with the same logic with a naked chart if you choose. I think the SMA's help me see things quicker so I can sift through all the pairs quickly.
The trade will always have an initial hard stop. This will always be 1% of my balance so position sizes will change accordingly. Take profits will vary as I am always looking to get that runner. I usually move the stop to break even once the trade is ahead more than the initial risk.
The timeframe is very important to me. I have had some success trading on lower timeframes but I have found it does not suit me. I do not like the way I feel when trading small timeframes. That said, I mainly trade the daily charts.
It is a good idea to be aware of news and news events. Of course, with President Trump things can and do change on a dime sometimes. But do be aware.
The pairs I look at are all the major and minor crosses. I do not look at exotics. This is not to say you cannot. I just don't.
So here is my method. I use 3 simple moving averages. The 200, 50 and 20.
The 200 will determine the direction I will trade. Prices above, I'm looking to go long. Prices below, look to short. Pretty simple.
For a long trade, I want the 20 and the 50 going up with a nice slope. When they are close together and criss crossing all the time, I'm not interested. The short trade is just the opposite with the averages going down. The idea here is to avoid non trending markets.
The entry setup is something most of us have seen many times before. I look for a pullback or relief rally into the area of the 20 SMA. Here you simply look for a reversal setup. You will get a nice stop loss area which would be the high or low of the rally or pullback. Here you determine your size based on the PIP risk.
Once in the trade, the fun begins. I normally just leave it alone until my profit exceeds my risk. At which point, I will often move stop to break even.
As I said at the beginning, I am looking for runners or huge moves. Sometimes, however, your trade will com in to a strong support or resistance area. Depending on how I feel and the situation presenting itself, I may take 1/2 off or on rare occasions pull the plug on the whole trade.
In most cases, I let it run by moving stops to daily fractals that form along the way. If you go back and look at daily charts you will see that some of these runs go a long, long way.
So now what? What will I be doing on this thread? Although I do enjoy helping others, I like the idea of running this thread to keep my trading relevant.
I am going to make posts explaining what I am looking at and why. I am hoping others will do the same. Collaboration is a great thing. Hopefully some of you will post your thoughts and ideas based on the straight forward concepts mentioned in this post.
It is also helpful to post or talk about things that we all just need to get out or vent. An example would be getting your stop hit by 1 PIP and then see the market roaring in the the direction of your original trade. I say vent! Yell, scream, bitch and moan. The key, however, is to QUICKLY, forget about it and let it go. This may be the most important thing we need to learn if we want to have success trading.
Finally, let me answer the question as to why the name 6200trading. I move to Toronto from NY a couple of years ago. The address of my place has the street number of 6200 and I trade mostly from there. Thus 6200trading.
