Hi All,
I've lurked here for a long time so I guess I should contribute something.
The concept: If you haven't got much time to trade, then don't stress out too much about timing. Just focus on catching and riding trends on very low leverage(more than 5:1 is probably too much - We're not trying get rich quick here.) Search for patterns in daily or 3-4 hour charts that aren't too common(once a month is probably too uncommon and once a day is definitely way too common) and concentrate on risk management. Scalpers have to get their timing pretty much dead right or they'll be shaken out too often to survive. Trenders only need to get it roughly right so long as their instrument normally trends well and they are not entering into an over-extended market. You are going to be shaken out from time to time. Accept it and get back back on the horse when it eventually canters back into a value area.OK let's get going.
1. Identify your trend direction: Pull up a daily chart of GBP/JPY and put a 21 ema and a 55 ema on it. If you don't know how to determine trend direction from these emas, read no further. Just come back when you have it figured out.
2.Enter in a value area: If long, enter when the pair closes under the 21. If short, enter when it closes above the 21. Until then, wait.
3. Wait.(This is the most difficult part of trading) Your initial stop should be about 160 pips. If you are immediately shaken out then you must wait until it comes back your original entry point and re-enter.(Don't worry, if the trend is strong,the draw down is bearable)
4. Set an initial limit of 300 pips and adjust it's location as the pair moves in your direction(you may wish to drop it to 200 once it's moved a few hundred pips in your direction) This is not an exact science. Mostly it will hit the trailing stop
5. Trail your stop: The low of the previous day if long or the high of the previous day if short.
6.Once you are flat again, wait until you can re-enter via step2.(The value area)
That's it. It's fairly simple but so am I. If you find you are being shaken out a lot, then trend could changing. Wait. The object is to get the trend right 80% of the time and be profitable. Don't chase a galloping horse cause it could turn around and kick your head in. Wait.
No-one ever went broke by waiting.
If you can wait, you'll be ok. If you can't wait, then I wouldn't recommend poker either. You've got to wait for the good hands and fold the garbage. Patience pays.
Good luck.
I've lurked here for a long time so I guess I should contribute something.
The concept: If you haven't got much time to trade, then don't stress out too much about timing. Just focus on catching and riding trends on very low leverage(more than 5:1 is probably too much - We're not trying get rich quick here.) Search for patterns in daily or 3-4 hour charts that aren't too common(once a month is probably too uncommon and once a day is definitely way too common) and concentrate on risk management. Scalpers have to get their timing pretty much dead right or they'll be shaken out too often to survive. Trenders only need to get it roughly right so long as their instrument normally trends well and they are not entering into an over-extended market. You are going to be shaken out from time to time. Accept it and get back back on the horse when it eventually canters back into a value area.OK let's get going.
1. Identify your trend direction: Pull up a daily chart of GBP/JPY and put a 21 ema and a 55 ema on it. If you don't know how to determine trend direction from these emas, read no further. Just come back when you have it figured out.
2.Enter in a value area: If long, enter when the pair closes under the 21. If short, enter when it closes above the 21. Until then, wait.
3. Wait.(This is the most difficult part of trading) Your initial stop should be about 160 pips. If you are immediately shaken out then you must wait until it comes back your original entry point and re-enter.(Don't worry, if the trend is strong,the draw down is bearable)
4. Set an initial limit of 300 pips and adjust it's location as the pair moves in your direction(you may wish to drop it to 200 once it's moved a few hundred pips in your direction) This is not an exact science. Mostly it will hit the trailing stop
5. Trail your stop: The low of the previous day if long or the high of the previous day if short.
6.Once you are flat again, wait until you can re-enter via step2.(The value area)
That's it. It's fairly simple but so am I. If you find you are being shaken out a lot, then trend could changing. Wait. The object is to get the trend right 80% of the time and be profitable. Don't chase a galloping horse cause it could turn around and kick your head in. Wait.
No-one ever went broke by waiting.
If you can wait, you'll be ok. If you can't wait, then I wouldn't recommend poker either. You've got to wait for the good hands and fold the garbage. Patience pays.
Good luck.
