Phillip's motto is: "I would rather miss a good trade than be in a bad one.
As a dog, my motto is: If I am in a pile of garbage, I would rather be out. If I am out of a pile of garbage, I would rather be in.
....nice motto old dog! You have really had some nice posts too. Thank you for them!!
Ok i got stopped out on my euro long, WHY WOULD I BUY OR SELL WHEN IT WAS TIME TO REST. Maybe we all need to read our mottos again. I might be out until there is some clear direction. HOnestly when i entered the trade it seemed like a valid setup , price had been channeling and then a breakout, But then price came back as fast as it had gone up . Volatility. i wonder who warned earlier to stay out today. Was it PIPS. why was i not listening. Maybe i should have taken care of the THINGS TO DO list. anyways, all trades cannot be perfect. I had one short from yesterday and one long from today not working out. So maybe it is time TO REST.
Yes, I agree...Time to rest!
E/U has been hugely affected by the E/J moves lately -- Cable by G/J...the carry trades are confused right now...go down more? Move up some? They are reacting to every little thing w/choppy moves and causing the european pairs to chop too (but the chop is rangebound for now!). If you do take trades...they most likely will range w/in an area....if you stick to your plan w/stops outside the range, prices will most likely go back to near entry point....
That is for now at least....Now...if your stop is hit....Don't re-enter! reason...a directional move is probably in play w/the high yielders....Oh...these are interesting times!
To the other posts on how long should a trade run:
The best way to determine how long you should leave a position open revolves around your testing! I have found trades can take 8 - 12 hours to develop. Why would you change your plan if the market conditions haven't changed? It is important to reassess the market, but it is also important to give your trade time to work out. Trades planned on a 4 hour TF can take longer to develop than those planned on shorter TF...the things to ask yourself are: Is the market still behaving the same way as it was when I originally planned the trade? Is my TP reasonable? Is my stop reasonable? When should I take partial profit and move my trade to BE? Did I read the market correctly originally? Or did I make a mistake in my original plan which invalidates the trade? IF CONDITIONS HAVE CHANGED OR YOU HAVE MADE A MISTAKE IN YOUR ANALYSIS -- CLOSE THE TRADE. If not, then let it have a chance to run. I know from experience how frustrating it is to close early because of fear and doubt (price has retraced but is still w/in the boundaries of my analysis, yet I'm negative quite a few pips. Yikes what have I done! Yikes, I can't stand this....I'm out! Manually close trade at a loss...stomp my feet...write up my stupid move..think about the lousy woulda/shoulda coulda crap)-- only to see a few hours later, price hit my TP and my stop would have been fine (that means taking a realized loss for absolutely no good reason other than I couldn't stand the heat...which means I shouldn't have entered where I did -- should have waited -- or let the trade go as PLANNED). If you can't take the heat of a trade -- you are trading too big a position. Don't do this!! Follow your money management rules when developing your plan -- be comfortable with the amount of money risked. The only reason we close a trade early is because we are scared to lose more money. If you are comfortable with the amount risked, you can not be scared -- it is impossible.
Phillip does advocate closing as close to BE or at BE after a few candles. Now, you need to do some work....go back in time, look at the charts...take some historical trades....see how long they take to develop....now formulate what you are comfortable with.
Hope my psychological babble makes sense.
Happy planning & trading!!
Pips
hey pips,
thanks for the explanation on the how long should a trade run...i have had that scenario happening to me many many times ...closing out few pips negative and only to find out 2-3 candles later, hit my TP and went further.
i agree with what you've said, money management. although i'm on demo now...still very much a newbie here...i'm trying to incorporate my trading plan into demo (that is not to open more than 2% per trade of the demo equity)...
i hope to learn from more from all of you here...i'll share my thoughts and trade plans when there is any.., market is pretty slow the last 2 days.
by the way, just a thought, has anyone ever thought of a hedge system...ok sorry to be a bit out of topic, i was trying this since early this month (started during the NFP).
I would long and short the same pair (eg EUR/USD) just before a news release (at the same price) but i set a stop loss say 50 pips and TP of 100. It worked several times (eventually hit TP or about 80-90% of it).
Just wondering ,...has anyone tried and tested this for a certain timeframe to see whether this works...realised the R:R and how much SL and TP set is the key to this and also banking on a breakout to happen (usually around newstime)..doesn't work well when market is ranging (but SL on long and short were hit)
CHeers,
Mike
). All kinds of weird emotions arise w/real money in the market. Keep up the great job w/learning the market!! I look forward to seeing your future posts!!!!!
(both sides taken out w/a quick spike one way and another quick spike the next...TP's don't execute in the volatile market -- but stops get slipped to top of spike). I'm also a bit wary of hedge b/c the brokers are really pushing that functionality of platforms lately....makes me think...hmmmm...who does the strategy ultimately benefit? Again, you need to ask someone who makes their bread and butter by hedging...and that def. isn't me.Hi all! I've got 15 + 9 pips (2 minicontracts) in this rangebound day taking the signal short e/u (candle 10-14 GMT) with little take profit inside of the range limits ... who did the same? Do You think was too risky? ciao ciao
Yes, I agree...Time to rest!
To the other posts on how long should a trade run:
The best way to determine how long you should leave a position open revolves around your testing! I have found trades can take 8 - 12 hours to develop. Why would you change your plan if the market conditions haven't changed? It is important to reassess the market, but it is also important to give your trade time to work out. Trades planned on a 4 hour TF can take longer to develop than those planned on shorter TF...the things to ask yourself are: Is the market still behaving the same way as it was when I originally planned the trade? Is my TP reasonable? Is my stop reasonable? When should I take partial profit and move my trade to BE? Did I read the market correctly originally? Or did I make a mistake in my original plan which invalidates the trade? IF CONDITIONS HAVE CHANGED OR YOU HAVE MADE A MISTAKE IN YOUR ANALYSIS -- CLOSE THE TRADE. If not, then let it have a chance to run. I know from experience how frustrating it is to close early because of fear and doubt (price has retraced but is still w/in the boundaries of my analysis, yet I'm negative quite a few pips. Yikes what have I done! Yikes, I can't stand this....I'm out! Manually close trade at a loss...stomp my feet...write up my stupid move..think about the lousy woulda/shoulda coulda crap)-- only to see a few hours later, price hit my TP and my stop would have been fine (that means taking a realized loss for absolutely no good reason other than I couldn't stand the heat...which means I shouldn't have entered where I did -- should have waited -- or let the trade go as PLANNED). If you can't take the heat of a trade -- you are trading too big a position. Don't do this!! Follow your money management rules when developing your plan -- be comfortable with the amount of money risked. The only reason we close a trade early is because we are scared to lose more money. If you are comfortable with the amount risked, you can not be scared -- it is impossible.
Phillip does advocate closing as close to BE or at BE after a few candles. Now, you need to do some work....go back in time, look at the charts...take some historical trades....see how long they take to develop....now formulate what you are comfortable with.
Hope my psychological babble makes sense.
Happy planning & trading!!
Pips
oh palmer , you are kidding. Just as i found a picture of you with phillip, you had to spoil the surprise. I see you are second in command on this battle ship. Just trying to figure out who the 3rd guy is. Oh yeah i think that is OLD DOG typing away PHillip's lesson. i wonder where Richard is???.
This is all in good humor people. Picutre provided courtesy mike1349.
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