And it is only the 1st of the month. May 1st 2008
This was the best DIBS trading day I've had in a month. (See Usd/Chf hourly chart below) Regardless of what it may appear, this post is not to gloat, but to show the virtually perfect DIBS trade and why you have to trade the earliest breakouts possible for the greatest possible gains.
Thank goodness I was awake and trading this morning!
While the Eur/Usd and Gbp/Usd both had good DIBS trades this morning, and I took them too-- my most effortless and hugely profitable trade was buying the Usd/Chf at 1.0354. Just 30 minutes into the day, the market took out the high of the previous hour's inside bar, putting me long. Because the bar was so narrow, my protective sell stop was ONLY 6 pips below my entry. Since the risk was so low I was able to multiply my size accordingly, and had 4 times the position I typically have on these trades.
It took off so quickly I didn't even drop off half of my position until 1.0499. Yes, 145 pips later and at the round number: 1.0500. (What a great problem to have!!!)
As I'm writing this the profit from the trade exceeds 25 times the risk taken. The day is not over. And the month has JUST begun.
If you look on a daily chart (also inserted below) you can see that there is a clear breakout to the upside on the Usd/Chf. Having gotten in before the breakout gives us a comfort zone, something that is rare and usually significant this early in a month.
What if this market goes up to 1.0750 or 1.1100 (66:1/125:1 return on risk) or even higher? What if this is the beginning of a serious turn in the dollar for a while?
And remember, this is just 1 trade. If this should be the beginning of a longer trend, profits on this one trade could be enormous. Other add on trades could make a huge pile by the time the trend ends.
If the trade fails, ie: gets stopped out – no problem. There will be others that will work.
If the market doesn't reverse and take out the initial trade stop, I will use the 20 period moving average (displayed) as a trailing stop. I have seen just one trade like this one provide half the year's profits for a good trader, by just following it up with a trailing stop.
Obviously, finding the low risk “place to stand” is crucial. For me, DIBS has proven to be one. It is definitely not a method to "fade".
This trade is an actual working example of how you can, with a simple but durable methodology, expect to make profits from long tails.
There are consequences for trading correctly. Exponential profits!
-PeterCrown-
This was the best DIBS trading day I've had in a month. (See Usd/Chf hourly chart below) Regardless of what it may appear, this post is not to gloat, but to show the virtually perfect DIBS trade and why you have to trade the earliest breakouts possible for the greatest possible gains.
Thank goodness I was awake and trading this morning!
While the Eur/Usd and Gbp/Usd both had good DIBS trades this morning, and I took them too-- my most effortless and hugely profitable trade was buying the Usd/Chf at 1.0354. Just 30 minutes into the day, the market took out the high of the previous hour's inside bar, putting me long. Because the bar was so narrow, my protective sell stop was ONLY 6 pips below my entry. Since the risk was so low I was able to multiply my size accordingly, and had 4 times the position I typically have on these trades.
It took off so quickly I didn't even drop off half of my position until 1.0499. Yes, 145 pips later and at the round number: 1.0500. (What a great problem to have!!!)
As I'm writing this the profit from the trade exceeds 25 times the risk taken. The day is not over. And the month has JUST begun.
If you look on a daily chart (also inserted below) you can see that there is a clear breakout to the upside on the Usd/Chf. Having gotten in before the breakout gives us a comfort zone, something that is rare and usually significant this early in a month.
What if this market goes up to 1.0750 or 1.1100 (66:1/125:1 return on risk) or even higher? What if this is the beginning of a serious turn in the dollar for a while?
And remember, this is just 1 trade. If this should be the beginning of a longer trend, profits on this one trade could be enormous. Other add on trades could make a huge pile by the time the trend ends.
If the trade fails, ie: gets stopped out – no problem. There will be others that will work.
If the market doesn't reverse and take out the initial trade stop, I will use the 20 period moving average (displayed) as a trailing stop. I have seen just one trade like this one provide half the year's profits for a good trader, by just following it up with a trailing stop.
Obviously, finding the low risk “place to stand” is crucial. For me, DIBS has proven to be one. It is definitely not a method to "fade".
This trade is an actual working example of how you can, with a simple but durable methodology, expect to make profits from long tails.
There are consequences for trading correctly. Exponential profits!
-PeterCrown-
Attached Image (click to enlarge)
Attached Image
Indicators show the past. Price Action "Indicates" the future.
