Here is a technique I am developing to a) preserve capital and b) catch the big moves with large position sizes when they occur. Price Action (PA) is at the centre of the technique, and there are many abbreviations in the outline that come from other threads on this forum, if you don't know ask
I'd like to offer a discussion on the pros/cons and effectiveness of this technique, which I am using to great success, and the ingredients that make it.
The aim as always is to refine/improve the techniques used in my/your trading. Anybody else trading in a similar fashion? I will post some charts shortly.
Thanks for stopping by.
TOYBOY’s TAKE ON TRADING
BACKGROUND CHECK
- CHECK MONTHLY/WEEKLY CHARTS FOR TREND, PRICE ACTION & MAJOR S/R
- CHECK DAILY FOR PRICE ACTION & S/R CONFLUENCE WITH WEEKLY/MONTHLY DIRECTION
- STAY INFORMED FUNDAMENTALLY: NEWS, ECONOMIC PERCEPTION
- STAY INFORMED TECHNICALLY, PA, PPZ, OB/OS, DIVERGENCE
ENTRY
- SCOUT (SMALL EXPENDABLE POSITIONS) VALID SET UPS AND DO NOT ADD TO THESE POSITIONS UNTIL PRICE MOVES AS ANTICIPATED & EXPECTED MOVE CONFIRMS WITH PA.
- SET SCOUT LIMIT ORDERS AT TREND/CHANNEL BREAKOUT POSITIONS
- IDEAL ENTRY IS WHEN PRICE HAS MOMENTUM IN ANTICIPATED DIRECTION AND MULTIPLE TIMEFRAME PA AND TREND AGREE
- PLACE STOPS ABOVE/BELOW MAJOR PPZ/PBs/PA, OUTSIDE OF DAILY RANGE i.e LET THE TRADE BREATHE, YOUR STOP IS NOT THERE TO CUT YOU OUT THE TRADE, ITS THERE TO PRESERVE YOUR CAPITAL FROM THE UNEXPECTED
- AGAIN, ONLY LOAD UP IF PRICE MOVES IN ANTICIPATED DIRECTION AND BACKGROUND CHECK STILL SUPPORTS TRADE
- USE LOWER TIMEFRAMES FOR PRECISION ENTRY
IN THE TRADE
LET IT BREATHE, BUT USE STOPS TO PROTECT FROM ANYTHING UNEXPECTED
BACKGROUND CHECK REGULARLY, DOES PA, S/R, PPZ, STILL SUPPORT THE TRADE?
MOVE STOP TO B/E AT THE EARLIEST OPPORTUNITY, BUT LET IT BREATHE.
TRAIL STOP, BUT LET IT BREATHE
EXIT
USE SAME TIMEFRAME YOU ENTERED ON
TARGET IS REACHED, GET OUT & DON”T BE GREEDY
PRICE ACTION CLEARLY INDICATES A REVERSAL (REVERSE YOUR POSITION)
S/R, PPZ, HALTS PRICE MOVEMENT
BACKGROUND CHECK NO LONGER SUPPORTS TRADE
IF YOU ARE NO LONGER SURE, GET OUT
I'd like to offer a discussion on the pros/cons and effectiveness of this technique, which I am using to great success, and the ingredients that make it.
The aim as always is to refine/improve the techniques used in my/your trading. Anybody else trading in a similar fashion? I will post some charts shortly.
Thanks for stopping by.
TOYBOY’s TAKE ON TRADING
BACKGROUND CHECK
- CHECK MONTHLY/WEEKLY CHARTS FOR TREND, PRICE ACTION & MAJOR S/R
- CHECK DAILY FOR PRICE ACTION & S/R CONFLUENCE WITH WEEKLY/MONTHLY DIRECTION
- STAY INFORMED FUNDAMENTALLY: NEWS, ECONOMIC PERCEPTION
- STAY INFORMED TECHNICALLY, PA, PPZ, OB/OS, DIVERGENCE
ENTRY
- SCOUT (SMALL EXPENDABLE POSITIONS) VALID SET UPS AND DO NOT ADD TO THESE POSITIONS UNTIL PRICE MOVES AS ANTICIPATED & EXPECTED MOVE CONFIRMS WITH PA.
- SET SCOUT LIMIT ORDERS AT TREND/CHANNEL BREAKOUT POSITIONS
- IDEAL ENTRY IS WHEN PRICE HAS MOMENTUM IN ANTICIPATED DIRECTION AND MULTIPLE TIMEFRAME PA AND TREND AGREE
- PLACE STOPS ABOVE/BELOW MAJOR PPZ/PBs/PA, OUTSIDE OF DAILY RANGE i.e LET THE TRADE BREATHE, YOUR STOP IS NOT THERE TO CUT YOU OUT THE TRADE, ITS THERE TO PRESERVE YOUR CAPITAL FROM THE UNEXPECTED
- AGAIN, ONLY LOAD UP IF PRICE MOVES IN ANTICIPATED DIRECTION AND BACKGROUND CHECK STILL SUPPORTS TRADE
- USE LOWER TIMEFRAMES FOR PRECISION ENTRY
IN THE TRADE
LET IT BREATHE, BUT USE STOPS TO PROTECT FROM ANYTHING UNEXPECTED
BACKGROUND CHECK REGULARLY, DOES PA, S/R, PPZ, STILL SUPPORT THE TRADE?
MOVE STOP TO B/E AT THE EARLIEST OPPORTUNITY, BUT LET IT BREATHE.
TRAIL STOP, BUT LET IT BREATHE
EXIT
USE SAME TIMEFRAME YOU ENTERED ON
TARGET IS REACHED, GET OUT & DON”T BE GREEDY
PRICE ACTION CLEARLY INDICATES A REVERSAL (REVERSE YOUR POSITION)
S/R, PPZ, HALTS PRICE MOVEMENT
BACKGROUND CHECK NO LONGER SUPPORTS TRADE
IF YOU ARE NO LONGER SURE, GET OUT
Money & Pain
Respect the market, protect your capital, be patient