No Brainer Trades

Quoting seattlerust

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Perhaps stepping back a moment and recalling what this thread is all about, will help. By that I mean that the basis of all we do here is Support and Resistance.

So. The \"inside\" of the bucket wants to be either a recognizable support level or a resistance level. And as always, this level is stronger when it is confirmed by another S/R level, especiually one that can be seen on a higher time frame and has historical significance. A Fib retracement or extension level that coincides with this inside of the bucket would also be a plus. Some confirmation, then, will increase the probability that the level will be respected by price, when price next encounters it.

The bottom line, IMHO, is that not all buckets will give an edge to our trading. Only those that truly are legitimate support and resistance levels.

Seattlerust

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Quoting aSandman

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Billy Ray,

I saw this on my way out the door for supper. It looked like an \"A\" grade trade if I ever saw one. Would give this one a 9 on a 1 to 10 scale for setups?

It had multiple fibs lined up with good horizontal S/R and was a bucket pattern and price was choppy before it hit the level.

Thanks man.

Jason

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Quoting pj9100

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BRV

You are among a few who love to give away. It was just like that for all of us when the Internet was born. The Internet evolved rapidly as a medium of free knowledge and still is.

Since I am following the principle of resistance and support for my trading purpose, I thought I would share one tip with you that has really helped me to control fear factor. I normally watch the chart during Asian hours to spot Resistance points at which Euro is likely to give up and then sell/buy frequently on its descent and amass pips. I am a day trader and used to scalping only.

In short, I look to start the day with at least 100 pips in my account, taken from the market, and not out of my pocket. Until I don't spot such a resistance point, I won't enter any trade at all.

I have made it as part of my system to enter the first trade this way. It makes life easier and the observations skills sharp. I watch both ticks and 15-minute chart candles and the average pip ranges for 15-minute, 30-minute and one hour to see where the probable move may happen. It is chosen intuitively and arbitrarily. Stop loss is 25 points.

Greed is a factor which I am not able to fathom. At times, it helps. Another time, I curse it. Fear is gone the moment the first trade goes my way.

Sticking to just one pair also helps a lot in controlling fear. You feel you are on a familiar territory. I have lost a lot of earned pips by getting involved in 5-6 currencies and then losing concentration.

I came across this piece of advice from an experienced trader. Since I and invariably all of us go through same experience it will be worthwhile to listen to his views. Again the emphasis is on simplicity (KISS), which you and I like very much.


http://www.babypips.com/blogs/art-of...tips_to_m.html

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Quoting Inzider

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Yeah i'm in, no big drawdown for now, SL @round 1.3292, waiting for rebounce. And don't beleive in a new low td, since Bernake will speak tm. We'll see.

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For now, to follow BRV thread, here some usefull psychology already propose:
Mark Douglas: trading in the Zone

http://www.forexfactory.com/showpost...8&postcount=20

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Quoting aSandman

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Hi Grath and Willow to, I can't stand it anymore so I have to respond. I posted 179.00 level for a short. I took a small loss. I realized I got out to soon and got back in. See chart below. Nothing magic, just watching the tape and recognizing that I had been shook out. I have watched markets obsessively for 8 years. I am just now coming into my own. Listen to Billy Ray and BirdT. THERE ARE NO SHORT CUTS. You are either willing to put in the work or your not. You are either willing to treat this as a business or your not. If it takes two or three years 6 to 16 hours a day 5 days a week before you are profitable is it worth it to you? Also your on M5 and M1 the hardest time frames on earth to trade. Trade the weekly's and daily's. But odds are you won't because your in a big HURRY. Do you know who your trading against? The sharpest minds on earth. Not only that the most well capitalized minds on earth. But as new traders we think that \"hey! I read \"xyz\" and been looking at charts for 3 months and now I'm going to beat hardcore processionals with 1000 times more money and years and years of experience and not only that I'm going to make a million in year with my little 5k account!\" I'm not trying to be ugly, because I was once JUST LIKE THAT. I'm trying give you a moment of pause. Why not trade with a mini account ... you all ready have psychological damage , its why your afraid to pull the trigger. So... new plan , if you plan on trading 10k then open a 1k account. Set limits. 3 trades a week. Thats it. Risk per trade .005%. ie you will risk only $5 on each trade. Further you will not go to the full account until you have months of consistency( profitable trading). Does not sound much fun does it? Sounds like it would take a lot of discipline to follow that plan. If you don't have the discipline to follow a $5 plan.....what are the odds you will be able to manage a $50 dollar trade or a $500 trade?
The markets will be here forever, take your time.

Best wishes
Jason

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Quoting Willowgal

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Hi Jason,
I appreciate what you are saying, but I am sure NO-ONE is looking for short-cuts, just advice to help the learning curve become a trend.

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Quoting BillyRayValentine

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Hi Jason - I hate to ask - this was a picture perfect trade today....why (or better yet how) did you take a loss? Drawdown? GBP/JPY you have to look out for.....50 pips drawdown can be normal with that pair. I move leverage way down if I ever choose to trade it.

Also one thing that pops in my head - people like this pair because it can be more volatile (provide more pips, better payout), but they dont adjust their leverage to make up for this volatility. Just something I've noticed / where the focus normally goes.

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Quoting aSandman

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Hiya Steve,

Thanks so much for responding. I took a loss because Set my draw down way to tight, only 20 pips. Thanks for the \"picture perfect trade\" call I practice what I preach, I normally risk 1/2 a percent but on GBP/JPY I risk only 1/4 percent. After being shaken out I realized my arrogance of using such a tight stop, and re- entred with a wider stop and even less position size. Bottom line, I let my ego set the stop and not commen sence. I will use 50 pips min for drawdown in the future. Thank you for your wisdom. I mean that from the bottom of my hart. I have wondered for years and years who really takes those trades right at support or resistance?? Now I know thanks to you, You have inspired me.

Best Wishes,

Jason

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Quoting Rialto

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Navin,

Your chart makes it look so easy! I do believe that many of us are making this much more complicated than necessary. Thanks.

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Quoting BillyRayValentine

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What I have found with most traders is that theyre right many times more than theyre wrong, they just dont take the trades.

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Quoting aSandman

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Hello all, just wanted to post a trade I took before leaving the house today.
Its after the fact but I think is a good example of a BRV style trade. I found the trade of the 4 hour chart, entered on the 15M, set a 50 pip sl and left it alone. On the 4 hour you have a level that has been support and resistance. Also it lines up with a bucket. Also lines up with trend line. Also lines up with a 618 fib ret ( called \"range low\" on the chart) of the current up swing.

Willowgal and all, I didn't mean to sound rude. I know you want to learn as fast as you can. You guys are SOOOO lucky. There was no J16, No BRV thread when I started. There was a lot of pain and self discovery. I just want to spare you the \"pain\" part. On this example I used ZERO \"gut feel or whatnot\". stuff lines up pull the trigger. The fastest way to learn is right here. Buying 10 years of historical data or more might help to. Go threw it one bar at a time. Write down your rules. Then go back and test them. Rinse and repeat. I still do that and still learn everyday. Also intelligence is a huge handicap because we over complicate this. Hope that helps some.

Best Wishes,
Jason

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