Risk comes from not knowing what to do
- #109,281
- May 15, 2020 9:14am May 15, 2020 9:14am
- Joined Oct 2018 | Status: Risk comes from not knowing what to | 2,233 Posts
- #109,282
- May 15, 2020 9:22am May 15, 2020 9:22am
- | Commercial User | Joined May 2016 | 3,511 Posts
FXOpen - International True ECN Broker
- #109,286
- May 15, 2020 12:57pm May 15, 2020 12:57pm
- Joined May 2014 | Status: Full Time Trader | 27,100 Posts | Online Now
H1 Status Update
A typical nonsense Friday
A typical nonsense Friday
- First 1.0819 didn't allow bulls to go up.. we thought that's it and market might turn bearish again..
- But noooooo.. then NY suddenly decided to test monthly resistance area 1.0845 and touched 1.0852 but for what??
- To come back all the way down to GREEN line: 1.0805 area..
- Now GREEN line is simply flat and market doesn't know where to go..
Basically a time wasting "DOJI" like week for EURO.. Picture is still bearish especially while below 1.0819
Stay Green
Focus only on what truly matters!
- #109,288
- May 15, 2020 1:23pm May 15, 2020 1:23pm
- | Commercial User | Joined May 2016 | 3,511 Posts
FXOpen - International True ECN Broker
- #109,289
- Edited 2:47pm May 15, 2020 1:49pm | Edited 2:47pm
- Joined May 2014 | Status: Full Time Trader | 27,100 Posts | Online Now
Food For Thoughts: Fib. Strategy for Dummies
Lately I gave an example on how to target your profits to some guy in my previous post... NOW let me explain further:
On chart below just like I explained before it is often good to buy fib 39/55 area because it often provides good enough entry levels to open trades with hopes that trend will continue towards fib 161.8..
By "good enough" entries I mean of course price will go lower than that zone but even if you blindly enter your drawdowns will often turn back to profit!
By fib 161.8 I mean that it is normally the perfect target and I intentionally stated that I prefer fib 1.55 because often banks don't allow people to take profit at fib 161.8..
Now notice that 2 times price also went down a little bit deeper into my lucky 7 area.. That sometimes happens too and it is also good practice to look for buy opportunities there (actually those are often the best entry locations but if you only wait for lucky 7 you will miss out lots of opportunities)
Notice how banks didn't even allow a touch to fib 155: 1.0903 this time and (that part really pissed me off because I ended up giving back some precious pips) But as you can see market provides lots of opportunities every day.. Even when we think nothing makes sense you still can make decent amount of pips..
I hope it helps some of the newbies here to trade better in the future..
*So with this logic in mind some newbies who constantly nag others: why did you buy in a downtrend blah blah blah now can understand why some people keep buying in "seemingly bearish" situations.. Nothing seems to be the way it seems eh?
*Final question: based on what I just explained here.. Look at the chart.. would you be a buyer or seller? Hmm?
Stay Green
{quote} It has not much to do with fixed or average pips.. It has to do with the size of each "previous swing higher high" (in uptrends) or "previous swing lower low" (in downtrends) which often projects you the next potential target.. I keep it at fib 155 but use something close to 161.8 but not that precisely so you don't miss out your targets (I have the experience not to wait precisely for fib 161.8 not to get stopped out later due to waiting too long for market to hit the target).. I hope it helps..*All you need to do is manually add fib...
On chart below just like I explained before it is often good to buy fib 39/55 area because it often provides good enough entry levels to open trades with hopes that trend will continue towards fib 161.8..
By "good enough" entries I mean of course price will go lower than that zone but even if you blindly enter your drawdowns will often turn back to profit!
By fib 161.8 I mean that it is normally the perfect target and I intentionally stated that I prefer fib 1.55 because often banks don't allow people to take profit at fib 161.8..
Now notice that 2 times price also went down a little bit deeper into my lucky 7 area.. That sometimes happens too and it is also good practice to look for buy opportunities there (actually those are often the best entry locations but if you only wait for lucky 7 you will miss out lots of opportunities)
Notice how banks didn't even allow a touch to fib 155: 1.0903 this time and (that part really pissed me off because I ended up giving back some precious pips) But as you can see market provides lots of opportunities every day.. Even when we think nothing makes sense you still can make decent amount of pips..
I hope it helps some of the newbies here to trade better in the future..
*So with this logic in mind some newbies who constantly nag others: why did you buy in a downtrend blah blah blah now can understand why some people keep buying in "seemingly bearish" situations.. Nothing seems to be the way it seems eh?
*Final question: based on what I just explained here.. Look at the chart.. would you be a buyer or seller? Hmm?
Stay Green
Focus only on what truly matters!
- #109,292
- May 15, 2020 2:45pm May 15, 2020 2:45pm
H1 Status Update A typical nonsense Friday
"Picture is still bearish especially while below 1.0819 " =
If opportunity doesn't knock, build a door .
- #109,293
- Edited 4:18pm May 15, 2020 4:07pm | Edited 4:18pm
- Joined May 2014 | Status: Full Time Trader | 27,100 Posts | Online Now
{quote} ============================================================ "Picture is still bearish especially while below 1.0819 " = {image}
That being said, still you can see how they actually correlate: Left shoulder high: 1.0819 on H1 is almost identically located with fib 39: 1.0820 on my fib chart.. As you can see both are in sync and it is not wrong for me to say that while price is below these levels picture is bearish.. AND then I stated and tried to prove that just because picture is bearish it doesn't mean you can't buy solely BASED on my fib logic.. The core of my advice to newbies is "that it is ALWAYS better to wait at least for a fib39/50 retracement before buying".. These are all "food for thoughts" one should carefully study.. My brain produces useful ideas.. How to make use of them is up to members here.. Not my job..
*If you want to hide your order id and lot size then don't forget to do it also on your order list at the bottom.. just saying..
Stay Green
Focus only on what truly matters!
- #109,295
- May 16, 2020 1:42am May 16, 2020 1:42am
- Joined May 2014 | Status: Full Time Trader | 27,100 Posts | Online Now
{quote} Ata Brother give me your advise how do you feel when you lose and what do you do after you lose? your comments and advise will perceived as moral building for me. thank u lcky
- What amount of risk will I take for my next order based on the equity I have and based on market conditions for the instrument being traded? (The answer to this question will define your lot size and stop loss level),
- At what price level will I execute the order? (entry price)? (The answer to this question should come from your technical knowledge which is based on your system elements that you built based on candle patterns, S/R levels, fibs, indicators, market sentiment and other best practices),
- At what price level will I take profit? (The answer to this question should come from fib targets or based on the average range of a specific pair along the timeframe you are trading).
These 3 rules is all what your system needs. Nothing more!
Now, once you have your working system and you follow all 3 rules without any distraction you still will have losses. These losses are inevitable. BUT of course you will keep fine-tuning your system because you want to squeeze the most juice out of it. Fine-tuning will also help you eliminate as many losses as you can in the longer run.
And here comes the core: During this process you shouldn't get frustrated by losses because you are following all 3 rules and your system makes consistent profit. In other words since you are naturally embracing losses there won't be anything emotional triggered in you.
So.. that being said, one can still ask: Then where does all the frustration of traders come from? The answer is either one or all of the problems listed below:
- Their system doesn't work but they keep forcing it to work!
- Their system works but they don't stick to the rules or don't trust it from the bottom of their hearts!
- Their system works but traders are not disciplined or don't get enough sleep, have weak concentration or don't pay enough attention, or are greedy, pick wrong trading hours, or are over-trading, or use some shady broker and so on and so forth.. You get the idea..
Yeah my friend, that's basically my take on your question.. Your job as a trader is to make sure to use a reliable broker and a profitable system and then consistently following all 3 rules. Master to do these things automatically like breathing and I promise you any losses you face here and there will never be a problem again. And one last thing: Nobody is perfect.. You never will be perfect.. So allow yourself to do wrong and don't beat up yourself from doing silly things here and there. We are human and our mistakes are part of life!
I hope it clarifies.. Wishing you a healthy weekend!
Stay Green
Focus only on what truly matters!
- #109,298
- May 16, 2020 6:58am May 16, 2020 6:58am
- Joined Oct 2018 | Status: Risk comes from not knowing what to | 2,233 Posts
Risk comes from not knowing what to do
- #109,299
- May 16, 2020 6:59am May 16, 2020 6:59am
- Joined Oct 2018 | Status: Risk comes from not knowing what to | 2,233 Posts
{image} must wait
Risk comes from not knowing what to do
- #109,300
- May 16, 2020 7:20am May 16, 2020 7:20am
it's been a week the price only moves inside the price of 1,077 - 1,089. it is better to wait for prices to break through this limit, even though the trend still looks bear. I will only scalping
There is no perfect system