i got burned on friday.
The past three weeks following your strategy i had built my account from $400 to $4500. I thought i was on my way. I withdrew $600 and i was looking good.
On friday i broke all rules, i was selling gbp after that massive spike down on the car news (which i missed) - i mentally told myself well i missed it for today no trade - but no. I placed a short (right near the close of that candle) and then added to this short and for the heck of it i placed a short on the euro too and added to that.
I had five trades of 40000 lots at 100:1, overall $2000 margin, and was eventually margin called some seven or so hours later (at one stage i could of got out at close to break even). The margin call came at 50% of margin.
So now back to $1000 plus the $600 withdrawn.
I have to manage my losses better. I am close to 80% succesful on my trades lately, but my 20% trades wipe me out. must accept losses
i do think SLs are hard, especially at the moment...Not good looking at my account this weekend. Looking forward to monday....back to $1 pips
If a trader is hitting the ball consistently, has a 90% win average (even 70%) they are well on their way to becoming a master trader. But you can still wipe out your stake even with a 90% win average. Perhaps the last piece of the puzzle to becoming successful is learning to cut losses short, letting profits run. It's an old saw, and like most other things about forex, it isn't necessarily easy. I still get tripped up. Reasons: greed, lack of discipline, failing to do better even when I know better Season's greeting!
Final trade, Sunday overnight. Price pulled back (from 4th trade close), then later dropped with momentum below the CPP before spiking back up. Entered trade (1 position) on the momentum, closed just above CPP floor. Summary.
Hi Jutah, I use MetaTrader4 charts. You can set MT4 charts to send alarms to your cell phone. You'll also need to talk your cell phone provider. I have monthly unlimited alerts arrangement with my cell phone provider. Cheers
went short at 7:28am gmt time @ 137.57 after broke CPP lime @ 137.73 with wot i thouight had good momentum, but didnt work out exited 24 pips down after went my way abit then reversed. ur thoughts or advice would be much appreciated.
went short at 7:28am gmt time @ 137.57 after broke CPP lime @ 137.73 with wot i thouight had good momentum, but didnt work out exited 24 pips down after went my way abit then reversed. ur thoughts or advice would be much appreciated.
regards
david
Ignored
i think it was a valid trade and it still looks like it will go to S1, thing was price wasnt moving earlier on when it was up around 138.5 (no mans land) and then it decided to gather some momentum down to CPP (i grabbed 50 pips there taking profit at CPP. Once it hit CPP price tends to overshot sometimes to grab those looking for the shorts once it gets to the CPP and once it gathers all those excited shorts price then retraces and stalls around the CPP until it decides where it will go. Now if it starts making some lower lows and lower highs (which it looks like it might and it breaks through 137.2 and 137 then momentum might gather and send it down to S1.
thats my take..but i did see the momentum you talked about, but i just felt it wasnt going to follow through - though i was ready if it broke through 137.2 to go short again
Sorry, I can't give my thoughts and advice on trades other than my own.
A few considerations:
I discovered that to become a successful currency trader required a lot of chart study. In my case it took years. Demo trading is great for mastering chart analysis, and then a live micro or mini account.
The key is Trending Momentum. Ideally I want to trade off floors or ceilings (support or resistance). I look for opportunities of 100+pips or more, attempt to capture the "easy money" within that.
I consider exiting a trade when there is any evidence the move might reverse on me -- if price is near a double zero area, double top or bottom -- if price is slowing or stalling -- if price is coming up to a barrier (such as a 55 ema, 200 ema) before reaching my target, etc., etc.
Ideally I look to enter a trade near pivot points, but entry can be anywhere price has/is developing a floor or ceiling, e.g., moving averages such as 55ema, 200ema, bollinger band tops or bottoms, channel tops or bottoms, trendlines, etc.
Bottom line: It is most important to understand what the charts are telling me. It helps to write down what I am actually seeing. Where is price (candles) on the chart I am looking at, what is it doing? Where was price (candles) in the recent past, on hrly, daily, 15, 5 min. charts, etc.? Is the currency ranging or trending? What are the various indicators saying, is the market overbought or oversold? What is the upcoming economic news, how might it effect price direction now or later in the session? Do the various time frames confirm or contradict each other, e.g. the 5 min. chart vs. 1 hr. chart? What time of day or night is it, how might this influence momentum (or lack of it)?
Before pulling the trigger I always try to ask myself two questions: (1) Why am I getting into this trade? (2) Is there any reason I should not be getting into this trade?
1) I don't look at other charts. I used to, found it wasn't necessary and perhaps even confusing. I'm not saying don't do it if you find it helpful. In fact it may be helpful.
2) I think the pivots found at ActionForex.com are the best. Just me and my opinion. Also, I like to lay the pivots on the chart by hand each day. With the hands-on approach I can't help but get involved in the necessary analysis, e.g.: "I've just put the CPP, R1, S1 pivots on the chart. Where is price in relation to them, etc.?"
That said, I've become lazy recently and have been using daily automatic pivots. I haven't made up my mind about whether or not this is a good thing. Probably not. There's no room for laziness in this game.
