Here is a little bit about how I trade, which I'm sure breaks just about every "rule" you can find on this forum:
1) I don't like to force a trade. I've found that's the easiest way to lose money. If there is nothing that matches my setups available, I just don't trade. I used to feel I always needed to be in a trade; to always be doing something. Then I realized just periodically watching the charts is fine. The best time, for my way of trading< to get into a trade is to do so at the very end of a candle or the beginning of the next. So if i am trading off the 1hr chart, no need to spend the entire hour watching it, just long enough to see if it was going to match my setup or not.
2) I only use "emergency stops" set at 50-100 pips in case I lose power or internet. If a trade moves against me and I still feel it will turn around ad do what is predicted, I just get out of the trade and when it reverses, get back in where I got out. That way there is no drawdown and the only loss incurred is the normal spread.
3) When I believe the price will go down to say, the 10EMA (call it 130.2345), I set my take profit order a few pips above that to account for charting inaccuracies and the spread, as the chart can either show Bid or Ask price, depending on how it is set up. I have no problem leaving some money on the table. My motto is "You won't go broke taking a profit!". I have found trying to get a specific goal can cost you...I was trading with a guy and we both shorted EUR/JPY at the same price and he wanted to make $1500 on the trade. I got out like normal with a profit of about $1400, but he held on just to be able to say he made $1500....and he held on until when he sold it he only made a $900 profit. Because his ego got in between his trade and his bank account!
4) I only trade high confidence, safe trades aiming for 10+ pips rather than 100+ pips.
5) I traded 200:1 or 400:1 leverage, whichever was available. I figured the pair was going to do what it was going to do regardless if I had 0.01 or 10 lots> I also figured if I was confident in the trade, I might as well try to make the most money in the fastest way possible.
6) I paid no attention to R:R or only trading a small percentage of my account. If I was confident in the trade, I would trade it to make the most out of it. But the key was the short term, high confidence trades for 10+ pips. Much easier and safer to make than 50-500 pips. Bragging rights do not buy things!
7) I am a visual trader and have no problem using any and every tool that makes trading easier, hence my indicators. I don't talk about "price action" or volume or any of the normal buzz words associated with forex, because that matters not to my charts and what I see when I look at them. I just see patterns that occur over and over on different time frames and use those to my advantage.
8) I seldom trade 15min and shorter time frames, because most pairs just don't move enough to make 10+ pips safely on them.
9) One thing that has really helped over the years, periodically take money OUT of your account and buy something with it. It really helps keep things in perspective since all of the trading is done electronically. Having something tangible for your efforts makes it real, if that makes sense.
10) This really isn't about how I trade but more of a tip/encouragement: Trading is as full of egos as football is full of testosterone. Don't let anyone tell you you don't know what you're doing because some traders just don't like to admit someone can do something successfully that they can't. That's just how it is, I guess, because it's been that way at least for the last 4 decades. So, don't get discouraged by people that aren't successful telling you why YOU aren't successful.
1) I don't like to force a trade. I've found that's the easiest way to lose money. If there is nothing that matches my setups available, I just don't trade. I used to feel I always needed to be in a trade; to always be doing something. Then I realized just periodically watching the charts is fine. The best time, for my way of trading< to get into a trade is to do so at the very end of a candle or the beginning of the next. So if i am trading off the 1hr chart, no need to spend the entire hour watching it, just long enough to see if it was going to match my setup or not.
2) I only use "emergency stops" set at 50-100 pips in case I lose power or internet. If a trade moves against me and I still feel it will turn around ad do what is predicted, I just get out of the trade and when it reverses, get back in where I got out. That way there is no drawdown and the only loss incurred is the normal spread.
3) When I believe the price will go down to say, the 10EMA (call it 130.2345), I set my take profit order a few pips above that to account for charting inaccuracies and the spread, as the chart can either show Bid or Ask price, depending on how it is set up. I have no problem leaving some money on the table. My motto is "You won't go broke taking a profit!". I have found trying to get a specific goal can cost you...I was trading with a guy and we both shorted EUR/JPY at the same price and he wanted to make $1500 on the trade. I got out like normal with a profit of about $1400, but he held on just to be able to say he made $1500....and he held on until when he sold it he only made a $900 profit. Because his ego got in between his trade and his bank account!
4) I only trade high confidence, safe trades aiming for 10+ pips rather than 100+ pips.
5) I traded 200:1 or 400:1 leverage, whichever was available. I figured the pair was going to do what it was going to do regardless if I had 0.01 or 10 lots> I also figured if I was confident in the trade, I might as well try to make the most money in the fastest way possible.
6) I paid no attention to R:R or only trading a small percentage of my account. If I was confident in the trade, I would trade it to make the most out of it. But the key was the short term, high confidence trades for 10+ pips. Much easier and safer to make than 50-500 pips. Bragging rights do not buy things!
7) I am a visual trader and have no problem using any and every tool that makes trading easier, hence my indicators. I don't talk about "price action" or volume or any of the normal buzz words associated with forex, because that matters not to my charts and what I see when I look at them. I just see patterns that occur over and over on different time frames and use those to my advantage.
8) I seldom trade 15min and shorter time frames, because most pairs just don't move enough to make 10+ pips safely on them.
9) One thing that has really helped over the years, periodically take money OUT of your account and buy something with it. It really helps keep things in perspective since all of the trading is done electronically. Having something tangible for your efforts makes it real, if that makes sense.
10) This really isn't about how I trade but more of a tip/encouragement: Trading is as full of egos as football is full of testosterone. Don't let anyone tell you you don't know what you're doing because some traders just don't like to admit someone can do something successfully that they can't. That's just how it is, I guess, because it's been that way at least for the last 4 decades. So, don't get discouraged by people that aren't successful telling you why YOU aren't successful.
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