Attachments: Trading Forex is Hard

Trading Forex is Hard

#341
Dec 2, 2021 3:26am Dec 2, 2021 3:26am

Oliver.Twist
| Joined Nov 2021 | Status: Trader | 109 Posts

Here's my take on USDCAD this morning. Could have had a better entry a bit sooner.

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#342
Dec 2, 2021 5:27am Dec 2, 2021 5:27am

JensG
Joined Apr 2014 | Status: Trader | 560 Posts

I would like to give a few tips here, as I was recently contacted privately, but think this information is better kept public for everyone.
General recommendation for all who want to trade like this: Depending on your monitor and field of vision, arrange 3-5 charts from top to bottom on the screen. Jumping back and forth between charts is nonsense, it doesn't work because you lose the feeling for the price action each time. My personal preference: EUR/USD, GBP/USD, USD/CAD, AUD/USD. In addition, there are sometimes small information advantages if you have an overview of several pairs, which often develop rather synchronously. Depending on the situation, you can also switch pairs. During the Brexit referendum, I traded almost only GBP/USD. When Trump started his trade wars, however, I found the price action of USD/CAD very attractive.
The individual chart does not have to be excessively high so that on normal monitors commonly used today there is room for 4 charts on top of each other. The terminal window of Metatrader can also be moved to the side. I recommend a chart width that covers about 4 hours. Personally, I use a normal 32-inch monitor, which also fits in my luggage. I used to have a smaller monitor in portrait mode and a second one for the terminal, news and so on but found the single bigger one to be more practical.
Initially, many people find it difficult to focus on the bigger picture. The macro view, so to speak. For those, I would recommend concentrating on one pair at first and paying special attention to the zones where the price bounces off, not somehow, but recurrently and strongly. With time, a trained eye will develop that can quite quickly distinguish ranges from channels (stairs or diagonal ranges so to say). The latter, as much as they seem to resemble each other, have a completely different market-psychological profile: Ranges thrive on market participants who bet on reversal, channels on those who bet on maintaining the main direction. A range that slowly converges i.e. becomes narrower/develops lower highs and higher lows, will at some point break out explosively. Such a market waits for a trigger like news. The direction of the breakout is obviously not predictable.

#343
Edited 11:58am Dec 2, 2021 6:13am | Edited 11:58am

FourBarsBack
| Joined Nov 2021 | Status: Trader | 94 Posts

trying to get my feet wet on the 1min, tried this, stopped for -3

have had a rough go with it, execution needs to be flawless...still experimenting with my entries, got my work cut out for me...but I have a few good ideas

I'm following four pairs only...EU, GU, AU, and UJ, also trying the 5 min

Most people on FF seem very negative toward trading the 1 min for some reason....

PS, thanks Veni for opening the thread to new guys

PSS looks like us newbies are locked out again on a count of some snide remrks, anyway I will follow with interest as there are some nuggets here to be had....

PSSS Jens, my approach is looking at candles for now and getting a feel for PA....cheers

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Focus on what DIDN'T happen

#344
Dec 2, 2021 7:57am Dec 2, 2021 7:57am

JensG
Joined Apr 2014 | Status: Trader | 560 Posts

Quoting FourBarsBack

Disliked

Most people on FF seem very negative toward trading the 1 min for some reason....

Ignored

I get that a lot, not only on FF. A professional trader I know personally once told me you need superhuman powers to trade the 1m, that was before I told him I'm trading the 1m. However, if you get past the period thingy, it becomes a lot easier. The patterns we trade here, are for the most part also visible on a 5m chart, or a 3m chart (which I traded off several years ago). The 1m is just superior for picking the entry and once you have developed an eye for the bigger picture, or call it the macro view like some do, you do not want to go back to anything higher because you look through individual candles anyway. Veni and I are not really studying candles, we absorb the price action behind the candles to pinpoint our entry within the pattern. The candle is just a compressed form of the past, that is high, low, open and close and a bit of information behind that, like rejected higher prices (wicks) or rejected lower prices (lower wicks) and so on.

#345
Dec 2, 2021 8:40am Dec 2, 2021 8:40am

phoenix777
| Joined Mar 2018 | Status: Trader | 154 Posts

Quoting venividivici

Disliked

{image} {image}

Ignored

Hi Veni, thank you for allowing anyone to comment on your thread.
Please, can you explain why you shorted there when it was directly on support level.

#346
Dec 2, 2021 9:18am Dec 2, 2021 9:18am

venividivici
Joined Jun 2015 | Status: Retired | 961 Posts

Quoting phoenix777

Disliked

{quote} Hi Veni, thank you for allowing anyone to comment on your thread. Please, can you explain why you shorted there when it was directly on support level.

Ignored

Quote

Disliked

I get that a lot, not only on FF. A professional trader I know personally once told me you need superhuman powers to trade the 1m, that was before I told him I'm trading the 1m. However, if you get past the period thingy, it becomes a lot easier. The patterns we trade here, are for the most part also visible on a 5m chart, or a 3m chart (which I traded off several years ago). The 1m is just superior for picking the entry and once you have developed an eye for the bigger picture, or call it the macro view like some do, you do not want to go back...

Jens said it nicely, I'll try and explain briefly why I took it there, first of all I don't recommend taking those trades unless you've been doing it a while, the main reason I took and take some trades breaking back into support levels is because when you're watching the charts live its a completely different story to a still image, and I think that's a major problem people don't understand.

When I took that trade the momentum was moving fast and gave me a 'feel' of what price wanted to do, so I took it, for me trading especially scalping is a game of adaptation. The minute chart is probably the only timeframe that will give you this luxury, you can get in fast and you can also get out fast, It can take you a split second 'to get the feeling' the trade is no longer working.. to me this feeling is acquired by live chart watching and hours spent watching chart behaviour/momentum and getting fluent with it, this took me a while to learn but only thanks to Jens I did.

You will see some latest trades I've posted where price goes my way and then goes against me briefly but I don't get out why? Because I'm watching it live and I can see the counter move doesn't have any speed or strength to it. (But if I suddenly saw that changing I would be out).

Actually we try and pick the most perfect static image trade examples but the reality is scalping trading is never perfect, there are no perfect trades, the candles and wicks exist but the bottom line is this: is the price moving one way or another? has it changed a different direction? watch the price live, watch how it speeds up and slows down and soon you will see that you will take many trades that would make no sense on a screenshot, but makes perfect sense in your live trading and works out well.

#347
Dec 2, 2021 9:36am Dec 2, 2021 9:36am

phoenix777
| Joined Mar 2018 | Status: Trader | 154 Posts

Quoting venividivici

Disliked

{quote} {quote} Jens said it nicely, I'll try and explain briefly why I took it there, first of all I don't recommend taking those trades unless you've been doing it a while, the main reason I took and take some trades breaking back into support levels is because when you're watching the charts live its a completely different story to a still image, and I think that's a major problem people don't understand. When I took that trade the momentum was moving fast and gave me a 'feel' of what price wanted to do, so I took it, for me trading especially...

Ignored

Thank you,
Sometimes i am wondering that this live movement is highly depended on broker feed tick update, internet connection, server location, etc. Movement or speed that i see from my screen may be different with yours, doesn't it?

#348
Dec 2, 2021 9:48am Dec 2, 2021 9:48am

venividivici
Joined Jun 2015 | Status: Retired | 961 Posts

Quoting phoenix777

Disliked

{quote} Thank you, Sometimes i am wondering that this live movement is highly depended on broker feed tick update, internet connection, server location, etc. Movement or speed that i see from my screen may be different with yours, doesn't it?

Ignored

In my opinion it would only be miniscule differences, unless you have a major issues like still using dial up 56k internet lol, charts across different brokers mostly all look the same the thing to be aware that will mostly affect your scalping is spread, slippage or crappy platforms, that might have technical issues.

#349
Dec 2, 2021 9:51am Dec 2, 2021 9:51am

slb
| Joined Nov 2019 | Status: Trader | 1,170 Posts

Quoting venividivici

Disliked

{quote} {quote} Jens said it nicely, I'll try and explain briefly why I took it there, first of all I don't recommend taking those trades unless you've been doing it a while, the main reason I took and take some trades breaking back into support levels is because when you're watching the charts live its a completely different story to a still image, and I think that's a major problem people don't understand. When I took that trade the momentum was moving fast and gave me a 'feel' of what price wanted to do, so I took it, for me trading especially...

Ignored

you were lucky with your "feeling" this time, be careful
it was not a support, was a resistance and was a stop hunt

cheers

Uncertainty of the market must be embraced and accepted.

#350
Dec 2, 2021 10:03am Dec 2, 2021 10:03am

venividivici
Joined Jun 2015 | Status: Retired | 961 Posts

Quoting slb

Disliked

{quote} you were lucky with your "feeling" this time, be careful it was not a support, was a resistance and was a stop hunt cheers

Ignored

Thanks for the comment, I will consider taking advice from someone who trades like this:

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cheers

#351
Dec 2, 2021 10:23am Dec 2, 2021 10:23am

venividivici
Joined Jun 2015 | Status: Retired | 961 Posts

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#352
Dec 2, 2021 10:49am Dec 2, 2021 10:49am

venividivici
Joined Jun 2015 | Status: Retired | 961 Posts

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#353
Dec 2, 2021 11:36am Dec 2, 2021 11:36am

venividivici
Joined Jun 2015 | Status: Retired | 961 Posts

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#354
Dec 2, 2021 12:12pm Dec 2, 2021 12:12pm

JensG
Joined Apr 2014 | Status: Trader | 560 Posts

Quoting phoenix777

Disliked

{quote} Thank you, Sometimes i am wondering that this live movement is highly depended on broker feed tick update, internet connection, server location, etc. Movement or speed that i see from my screen may be different with yours, doesn't it?

Ignored

Only if your internet connection has a very unreliable latency, which is rare these days but could be the case with a wireless network and bad signal strength. Of course, it is a good thing to be as physically close to your broker as possible, especially if you're getting in and out of trades using market orders (i.e. clicking the buy or sell button), but a general high ping shouldn't change the visible movement, it would only delay it by a couple hundred milliseconds. I've traded from Thailand with my London and Swiss-based brokers without any noticeable difference to my home in Malta or my previous homes in London or Düsseldorf.

#355
Dec 6, 2021 3:10am Dec 6, 2021 3:10am