Hi, I don't know where this belongs but I will start it at Trading systems.
As you might already know the stock market/Forex market etc. has been called gambling of some sort.
This might be true, why? Because you might have noticed the ads you've been getting about gambling sites on your browser after you first started trading forex and all your searches were about forex and stock market.
So lets say that forex is gambling; you must have heard the term "The house always wins". Most of you probably already know this comparison so I will cut to the chase. The casinos are rigged to have an advantage over the players by about 5.4% So the more players the more bets equals the house will win in the long run.
This I call "statistical advantage". We translate this into forex in a very simple way, we rig the game in our favor by following trends and as a second less preferred option sideways channels for entries. Also we can enter trades using news or we can use news to completely stay out of trades, this is up to you. Secondly we use 1:2 risk reward, that is 1 risk 2 rewards.
That's it:
Why did I say that's it? Because just like the casino example the more trades we take using above rules, we will end up winning in the long run.
So how do we take trades? Like I mentioned above we use trends, sideway channels and optionally news.
It is said that there is a 60% chance that the price will bounce from an established trendline giving you a very good R:R. Same with sideways channel, price has at least 50% chance of bouncing from channel. When you add 1:2RR to this you will have success in the long run.
You can open a chart and plot a trendline use your TA knowledge to start trading this way. I usually use the third bounce of a trendline as entry. So I draw a trendline using 2 bounces and when price touches the line third time I take the trade with SL right below the trendline and TP double the SL.
But I prefer to check out a professionals opinion and chart for entries.
The "CHART ART" section in BABYPIPS.COM is a great place to look for possible trade entries everyday. The person that handles the chart art also gives caution about upcoming news, sentiment etc. But you will get 1 or 2 max trades from there per day.
Also don't forget to risk no more than 5%. Of course 5% is very aggressive. But what ever you choose 1%, 2% etc. Just stick to max 5% per trade rule.
You have to let the trades run until TP or SL for this to work properly. The only time I will manually close trades is on Fridays before end of day or if I have forgotten about it and there is strong news coming up.
I will try to post trades here as much as I can. I work fulltime so its hard to do that. But Ill try.
tnx.
As you might already know the stock market/Forex market etc. has been called gambling of some sort.
This might be true, why? Because you might have noticed the ads you've been getting about gambling sites on your browser after you first started trading forex and all your searches were about forex and stock market.
So lets say that forex is gambling; you must have heard the term "The house always wins". Most of you probably already know this comparison so I will cut to the chase. The casinos are rigged to have an advantage over the players by about 5.4% So the more players the more bets equals the house will win in the long run.
This I call "statistical advantage". We translate this into forex in a very simple way, we rig the game in our favor by following trends and as a second less preferred option sideways channels for entries. Also we can enter trades using news or we can use news to completely stay out of trades, this is up to you. Secondly we use 1:2 risk reward, that is 1 risk 2 rewards.
That's it:
Why did I say that's it? Because just like the casino example the more trades we take using above rules, we will end up winning in the long run.
So how do we take trades? Like I mentioned above we use trends, sideway channels and optionally news.
It is said that there is a 60% chance that the price will bounce from an established trendline giving you a very good R:R. Same with sideways channel, price has at least 50% chance of bouncing from channel. When you add 1:2RR to this you will have success in the long run.
You can open a chart and plot a trendline use your TA knowledge to start trading this way. I usually use the third bounce of a trendline as entry. So I draw a trendline using 2 bounces and when price touches the line third time I take the trade with SL right below the trendline and TP double the SL.
But I prefer to check out a professionals opinion and chart for entries.
The "CHART ART" section in BABYPIPS.COM is a great place to look for possible trade entries everyday. The person that handles the chart art also gives caution about upcoming news, sentiment etc. But you will get 1 or 2 max trades from there per day.
Also don't forget to risk no more than 5%. Of course 5% is very aggressive. But what ever you choose 1%, 2% etc. Just stick to max 5% per trade rule.
You have to let the trades run until TP or SL for this to work properly. The only time I will manually close trades is on Fridays before end of day or if I have forgotten about it and there is strong news coming up.
I will try to post trades here as much as I can. I work fulltime so its hard to do that. But Ill try.
tnx.
