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  • #4,001
  • Jul 1, 2009 7:38am Jul 1, 2009 7:38am
Quoting AminAS
Time to get back into the swing of things, posting charts and trying analysis with the group. I'm taking the whole week off so starting Monday its back to old times (You ready Dan?).
Welcome back, Amin. Now, this time, treat it like it is a business, YOUR business. If you think and do like this, you should be able to resist the temptation to make mad, reckless decisions and take HIGH RISK trades. This goes for everyone, anytime you feel the urge to break ranks and do something stupid (you already know trading shorter time frames is stupid, right?), send me a post or a PM and I will put you straight.
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,002
  • Jul 1, 2009 9:46am Jul 1, 2009 9:46am
Quoting Alexandra
Amen!

Classical charting would put E/J in the mid 140's in relatively short order. Is this more of a statement about JPY or EUR??? I favor the former.
Hi Alexandra
Would you mind posting a chart of what you mean by this so I and others can see and learn?
Thanks so much ...
  • #4,003
  • Jul 1, 2009 9:56am Jul 1, 2009 9:56am
Quoting strat
Well, for your first post, this is very encouraging and shows good observation skills.

The USDCAD BOSS pattern, on my data, is very similar to that described previously and was one of the reasons, plus the "V" bottom on the Worker, that gave me clues USDCAD was changing to an up trend.

The EURGBP BOSS is much weaker than the USDCAD BOSS by virtue that the bullish candle forming the double bottom has a longer wick meaning that the buyers were rejected at higher levels, at that time. The BOSS is also at the critical 61.8% fib retrace. As you...
The handle - yes I get way too emotional sometimes and that's something I need to work on :-)

EURGBP - I see what you mean. Only the clean patterns that haven't shown that "it stopped going up" yet, right?
Does this also apply to EURGBP weekly candle ending May 8th that the preceeding DOWN weekly candle means the pattern is no good?

As to USDCAD and Dr Joe way of trading:
Does the pattern on weekly chart mean "close your shorts" because the BOSS doesn't want to go any lower BUT go long ONLY after/when Worker June 15 close gets higher than the previous swing high on June 8?

I read your posts on various timeframes and there are some things they I don't quite understand.
Boss controls Worker - ok
Change of longer-term trend shows on Boss before Worker - does this refer to the example you described in the previous post i.e. a pattern at Boss (weekly) support level is the change of trend signal OR the Boss has to make HH - HL to show that the longer-term trend has changed to UP and only then the signal from Worker (close above previous swing high) becomes a valid entry signal?

Timeframes and trend - let's assume that you've entered long position on Worker but your stop loss got hit (the Boss has shown "go-long" pattern and this hasn't changed), does this mean that your entries on Worker would be from long side only as the Boss hasn't shown any signs of Boss trend reversal?

Timeframes and SR levels on Boss - should/shouldn't the SR levels on Boss be traded off Worker or they should be watched from Boss perspective for any Boss trend change signals and once a patterns shows up on Boss at Boss SR level, then an donly then should these SR levels be considered? I mean they do not matter for our trading on Worker or do they?

I've been reading your thread on and off and only when I get the real beating in the market then I come back with my head down to go through it again and again. I suppose lessons are repeated until they're learnt and the time has come for me to start learning....
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  • #4,004
  • Jul 1, 2009 10:11am Jul 1, 2009 10:11am
As an excercise, I have taken the price with the highest volume from the current EUR Futures contract for each of the 22 days in June and from that found the average price, which is 1.4012.

This appears to have been a sticking point (consolidation) area many times in EURUSD and was massive resistance in 1992, 1994 & 1995.

So far, it has been resistance May 22 - 28 and June 17 -19 and support June 26 - July 1.

I'm going to listen to the Animals' "We Gotta Get Outa This Place" to see if it helps!
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,005
  • Edited 11:46am Jul 1, 2009 11:45am | Edited 11:46am
Quoting Berzerk
The handle - yes I get way too emotional sometimes and that's something I need to work on :-)

EURGBP - I see what you mean. Only the clean patterns that haven't shown that "it stopped going up" yet, right?
Does this also apply to EURGBP weekly candle ending May 8th that the preceeding DOWN weekly candle means the pattern is no good?

As to USDCAD and Dr Joe way of trading:
Does the pattern on weekly chart mean "close your shorts" because the BOSS doesn't want to go any lower BUT go long ONLY after/when Worker June 15 close gets higher than...
“”Does this also apply to EURGBP weekly candle ending May 8th that the preceeding DOWN weekly candle means the pattern is no good?””

First, I don’t think it is a standard candle recognition pattern – just something I saw.

If you go back two candles you can see the BUEB. This is THE controlling bar. We would be looking to go long above this candle. The following week was an IB which didn’t trigger buy orders above the BUEB, however, the BUEB is STILL the controlling bar because as yet, it has not failed. The IB does give us cause for concern because it is in a downtrend and usually, but not always, an IB in a confirmed trend is just a PAUSE bar where, in this case, the sellers took a breather. The hammer looking candle ending May 8th is not the same as I previously identified as, although it tested support, it did not test resistance. BUT, it was very important because it broke the low of the BUEB thus making it a failure and taking away it’s control AND confirmed the IB as a continuation bar. The following week produced a re-test of resistance and a chance to add shorts at better prices although a safer and lower risk entry is below the low of the hammer looking candle on May 8th.

Where we are now is an unconfirmed swing low produced by another (so far) IB.

“”As to USDCAD and Dr Joe way of trading:
Does the pattern on weekly chart mean "close your shorts" because the BOSS doesn't want to go any lower BUT go long ONLY after/when Worker June 15 close gets higher than the previous swing high on June 8?””

The bullish bar week ending June 5th produced an unconfirmed swing low. The hammer looking candle on June 12th took out the previous candle’s high thereby confirming it as a swing bottom plus it tested resistance and showed that buyers were able to maintain these higher prices. A buy order above this candle was the entry on the BOSS

The Bond hammer on June 1st on the Worker is an indication to pull in your stops to protect profits, NOT to go long. The huge BUOB on June 3rd which created a double bottom AND took out two previous candles was the sign that something’s a foot Dr. Watson (What’s a foot then, Holmes? 12 inches my dear Watson!). This alerted us to start looking for signs of a trend change.

“”I read your posts on various timeframes and there are some things they I don't quite understand.
Boss controls Worker - ok
Change of longer-term trend shows on Boss before Worker - does this refer to the example you described in the previous post i.e. a pattern at Boss (weekly) support level is the change of trend signal OR the Boss has to make HH - HL to show that the longer-term trend has changed to UP and only then the signal from Worker (close above previous swing high) becomes a valid entry signal?””

I was wondering when someone was going to ask this question. This shows you ARE reading and understanding – well done!. Let me answer this in general rather than specifics and then you can apply it to everything.

This may be difficult to grasp but think it through. The Worker is on a shorter, faster, time frame so it will REACT to out of balance forces (buying and selling pressure) FASTER than the BOSS – it has to, it has no choice. This will create HHs or LLs which in turn will show up on the BOSS. The BOSS, being on a longer, slower, time frame can absorb price aberrations without affecting it’s trend. The point where the Worker exceeds the existing BOSS swing, is when we know the trend may be changing. Continued change in the Worker prices will show up on the BOSS as either a trend change or continuation of the existing move (trend or consolidation). Once the BOSS has changed trend, it CONFIRMS the Worker trend and from there on, will govern the Worker.

This is a hot point in many technical circles as some believe, because of this situation, that the shorter time frames lead the longer time frames. While it does only at this turning point, it does not from thereafter.

If this is still not clear, switch to a BOSS chart and draw the highs and lows of each BOSS bar then switch back to the Worker and observe how it behaves within those highs and lows

“”Timeframes and trend - let's assume that you've entered long position on Worker but your stop loss got hit (the Boss has shown "go-long" pattern and this hasn't changed), does this mean that your entries on Worker would be from long side only as the Boss hasn't shown any signs of Boss trend reversal?””

If I understand your question correctly, you may be caught in trading two time frames. You have to decide which time frame you are going to trade. If you are trading the Worker, you would look to the BOSS for direction but use the Worker for timing your entries and exits.

If you are entering on the BOSS then this is your trading time frame and you should be using the BIG BOSS for direction and the BOSS for timing your entries and exits. If you are entering on the BOSS and then using stops from the Worker then you are trading the Worker, not the BOSS.

“”Timeframes and SR levels on Boss - should/shouldn't the SR levels on Boss be traded off Worker or they should be watched from Boss perspective for any Boss trend change signals and once a patterns shows up on Boss at Boss SR level, then an donly then should these SR levels be considered? I mean they do not matter for our trading on Worker or do they?””
This all comes down to your style of trading as I answered previously. There are many traders who “scalp” the Worker by buying at support and exiting at the next level of resistance.

To do this, you need to identify the S&R levels on the Worker. As an early poster remarked, I showed Worker S&R lines where the Worker stopped at the exact pip (pure luck!). I have traded this style and do it occasionally on my “ATM” trades. It is very profitable and more so if you have the personality (read trading psychology) to trade high $/pip for small pip moves.

Many traders make a very good living by trading this way with high $/pip values. For example, Jacko trades 200 + lots per trade which is $2,000+ per pip. If you can do this consistently, then a 50 pip move from support to resistance is a nice way to trade. For me, I cannot handle trading high $/pip contracts, my personality and style makes me a nervous, stressed out wreck. I much prefer to trade trends which, for me, is enjoyable, rewarding and stress free.

For a longer term trading style, you have to use longer term S&R levels. Again, this comes down to styles within styles. If you are a swing trader, you will need Worker swing levels whereas if you are in a trend for the long haul, you will need both BOSS and BIG BOSS S&R levels while watching out for the yearly levels.

“”I've been reading your thread on and off and only when I get the real beating in the market then I come back with my head down to go through it again and again. I suppose lessons are repeated until they're learnt and the time has come for me to start learning.... “”

This tells me that trading is a game to you and that you are only in it for the adrenalin rush which is the absolute wrong reason. Go out and buy yourself some computer games as it will be much cheaper and less emotion – draining.

Like I said to Golfer, you have taken a Ferrari and written it off on the first bend – READ THE MANUAL FIRST, practice until the cows come home, take lessons under supervision, trade demo or micro lots first, learn how to handle FEAR and GREED, then, and only then, gradually ease yourself into real, live trades with your hard earned money.
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,006
  • Jul 1, 2009 4:29pm Jul 1, 2009 4:29pm
For the first time in a long time there looks to be a short opportunity in crude. Todays daily candle looks like a lower high (on closing prices) and the candle tails have made a double top.
I see a possibility that crude may pull back to the 23.6 fib level at 61.80 if it can break the support at 66.00

It seems to me that whether you are trading FX, commodities, or equities it is all the same trade at the moment and when the S&P changes direction (one day up, one day down, or up in the morning down in the afternoon) everything changes direction at the same time.
So there is a risk here, like everything else, that this could just go sideways but one to watch ...

Here are daily and weekly charts for US crude
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  • #4,007
  • Jul 1, 2009 4:35pm Jul 1, 2009 4:35pm
Strat,

First let me thank you for your patience and will to help the beginners like me.
It's just great to be able to learn from someone with such experience...

What I'm trying to understand is the BOSS role when I trade the Worker.

as you wrote:
The point where the Worker exceeds the existing BOSS swing, is when we know the trend may be changing.

Going back to the example with USDCAD daily (Worker) and weekly (Boss) -the existing BOSS swing high is the high of the candle ending May 22nd and the Worker hasn't exceeded it yet - unless I get the BOSS swing wrong and by that you mean the previous week high/low?

This all comes down to your style of trading as I answered previously. There are many traders who “scalp” the Worker by buying at support and exiting at the next level of resistance.

To do this, you need to identify the S&R levels on the Worker. As an early poster remarked, I showed Worker S&R lines where the Worker stopped at the exact pip (pure luck!). I have traded this style and do it occasionally on my “ATM” trades. It is very profitable and more so if you have the personality (read trading psychology) to trade high $/pip for small pip moves.

Many traders make a very good living by trading this way with high $/pip values. For example, Jacko trades 200 + lots per trade which is $2,000+ per pip. If you can do this consistently, then a 50 pip move from support to resistance is a nice way to trade. For me, I cannot handle trading high $/pip contracts, my personality and style makes me a nervous, stressed out wreck. I much prefer to trade trends which, for me, is enjoyable, rewarding and stress free.

For a longer term trading style, you have to use longer term S&R levels. Again, this comes down to styles within styles. If you are a swing trader, you will need Worker swing levels whereas if you are in a trend for the long haul, you will need both BOSS and BIG BOSS S&R levels while watching out for the yearly levels.

Trading high pip value for short/powerful moves is not for me as I get too emotional when I take too much leverage, so going with the flow/trend is the thing which I see in many aspects of my life.

I've got one more question regarding the current USDCAD daily chart - today's BEOB low took out the swing low from June 26th (at least with my data) - as it hasn't closed below the previous swing low, this makes the current retrace a good occasion to go long, correct?
Now if the next day closed below the swing low from June 26th, would it be the signal that we should look to short this pair?

This tells me that trading is a game to you and that you are only in it for the adrenalin rush which is the absolute wrong reason. Go out and buy yourself some computer games as it will be much cheaper and less emotion – draining.

Like I said to Golfer, you have taken a Ferrari and written it off on the first bend – READ THE MANUAL FIRST, practice until the cows come home, take lessons under supervision, trade demo or micro lots first, learn how to handle FEAR and GREED, then, and only then, gradually ease yourself into real, live trades with your hard earned money.[/quote]

Yes, I know I need to understand what I do and your approach shows a lot of common sense. That's why I started posting and asking questions. :-)
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  • #4,008
  • Jul 1, 2009 5:01pm Jul 1, 2009 5:01pm
Going back to the example with USDCAD daily (Worker) and weekly (Boss) -the existing BOSS swing high is the high of the candle ending May 22nd and the Worker hasn't exceeded it yet - unless I get the BOSS swing wrong and by that you mean the previous week high/low?

The BOSS swing high is the candle week ending June 26 with a high of 1.1638 which was made with the Worker candle on June 25.

I've got one more question regarding the current USDCAD daily chart - today's BEOB low took out the swing low from June 26th (at least with my data) - as it hasn't closed below the previous swing low, this makes the current retrace a good occasion to go long, correct?

Definitely not! There is no swing from June 23 to now – it is all chop and slop – directionless.

You recognized it as a BEOB yet you want to go long? You obviously have not understood the main candle reversal bars. Do not do anything further until you understand the main candle reversal bars!

Now if the next day closed below the swing low from June 26th, would it be the signal that we should look to short this pair?

NO! Again you do not understand PASR. Go back to the beginning of The Path and learn PASR. When you learn PASR you will be able to answer your own questions.
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,009
  • Jul 1, 2009 6:17pm Jul 1, 2009 6:17pm
Has everyone seen this:

A major new National Futures Association (NFA) rule goes into effect on August 1, 2009. This rule affects all U.S. regulated Forex Dealer Members. Forex traders will no longer have the ability to place stop-loss or limit orders. Nor will traders be able to modify or close trades from the “Open Positions” window.
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,010
  • Edited 7:41pm Jul 1, 2009 7:39pm | Edited 7:41pm
Quoting strat
Has everyone seen this:

A major new National Futures Association (NFA) rule goes into effect on August 1, 2009. This rule affects all U.S. regulated Forex Dealer Members. Forex traders will no longer have the ability to place stop-loss or limit orders. Nor will traders be able to modify or close trades from the “Open Positions” window.
Yes, FXCM is notifying their customers.

Sounds like non-US brokers will be getting a lot of new business.

This may be a good time for me to become an IB to my Swiss broker?

I could fund an account with the profits and trade in a stress free manner that Strat probably never thought of.
  • #4,011
  • Jul 1, 2009 8:11pm Jul 1, 2009 8:11pm
One can get around it - and get some rest - via an OCO order.
  • #4,012
  • Jul 1, 2009 8:29pm Jul 1, 2009 8:29pm
here is something i read on babypips.com

This was posted by ThePhoenix at babypips




First the no hedging thing. I didn't hedge, but I can see how if you are good at it, it would work out well.

Now I just read a message at IBFX and then spoke to a customer rep. The NFA is imposing a, "first in first out, FIFO," regulation on my broker IBFX, and I guess everyone else.

What I was told is this:

"Client Services 30: Hello, this is Mick. How may I help you?
: I just saw the new FIFO rule the NFA is imposing on IBFX. What does that mean, when entering and exiting trades, whoever enters first and hits the exit button first is supposed to get serverd first?

Client Services 30: It applies only to trades with the same lot size...

Client Services 30: The only time this is going to effect the client is when they have the same lot size on the same currency pair. When they do have two identical orders they will only be able to place a stop loss/take profit on the order that was placed first. The second order will not be able to be closed or have a stop loss/take profit until the first order is closed. (holy ballz!!)

Client Services 30: Now, if the client closes 0.01 of the order that was placed first they may close the second order or add a stop loss/take profit because the lot sizes are no longer the same, allowing them to close out whichever order they want.

: Ok, so it will only effect a trade if it's a duplicate trade placed on the same pair with a trade already open?
Client Services 30: Yes, correct

: so if I'm trading two different currencies at the same time I can put a sl and tp on both of them with no problem?
Client Services 30: Yes, correct.
6002215: ok thank you.
Client Services 30: You're welcome"

I can see this making problems for multiple lot stratagies where you let one ride further than the other (to try and catch the trend) and both have SL and TP that are different.

Sure you can just make different lot sizes, but WTF is with the NFA, it seems like every rule they make is to make it harder for traders.

What asshat is telling them hedging and multiple lot stratagies is bad for the market and economy?
  • #4,013
  • Jul 2, 2009 1:04am Jul 2, 2009 1:04am
If you think about it, the NFA is trying to put an end to the big money "stop hunting". This could significantly affect the ebb and flow of the market. I think its kind of cool.
Bang.
  • #4,014
  • Jul 2, 2009 4:53am Jul 2, 2009 4:53am
You are in a position and Target 1 is 200-250 pips. You do your daily check of the charts at NY close and price is say 15-20 pips away from your target. Let's say you are over 90% of the way to your target.

Would you intervene and take the (slightly smaller) profit then or wait another day to see if you either reached the profit target or perhaps retraced 100 pips or more?

You could say - depends on what your trading plan says...
So the real question is: would your trading plan allow you to do this?

Anyone care to comment on this?
  • #4,015
  • Jul 2, 2009 5:05am Jul 2, 2009 5:05am
Quoting Surfer
You are in a position and Target 1 is 200-250 pips. You do your daily check of the charts at NY close and price is say 15-20 pips away from your target. Let's say you are over 90% of the way to your target.

Would you intervene and take the (slightly smaller) profit then or wait another day to see if you either reached the profit target or perhaps retraced 100 pips or more?

You could say - depends on what your trading plan says...
So the real question is: would your trading plan allow you to do this?

Anyone care to comment on this?
Over 90% of the way is a win Surfer!
In this market I would take some profit off, it is too choppy. I would also double check my levels to see why it stopped where it did, if its something I did not see before I would decide based on that.
In a big trend (if they ever come back) it might be different. If my size allows me to close part of the position I would do that.
Nic
  • #4,016
  • Jul 2, 2009 6:13am Jul 2, 2009 6:13am
Interesting chart this one.

The shooting star may even have been too good for Bond.
62% retrace on the Weekly and quite extended so not surprising to see it reverse there. Anyone take that counter-trend short? It paid off quickly.

I have support at 1.87 and there is stong resistance at 1.94.
Will be looking for a retrace to 1.87 and then for PA for a long. It should meet up with the 20EMA around there somewhere. A little test under there could bounce off the 38% on the daily.
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  • #4,017
  • Jul 2, 2009 7:10am Jul 2, 2009 7:10am
Quoting Surfer
You are in a position and Target 1 is 200-250 pips. You do your daily check of the charts at NY close and price is say 15-20 pips away from your target. Let's say you are over 90% of the way to your target.

Would you intervene and take the (slightly smaller) profit then or wait another day to see if you either reached the profit target or perhaps retraced 100 pips or more?

You could say - depends on what your trading plan says...
So the real question is: would your trading plan allow you to do this?

Anyone care to comment on this?
I posted my "quickie" USDJPY trade on this some time back. I think I was agonising about being 10 pips away from the target I had set when I was already rich in profit. I was beating myself up wondering what would happen when it dawned on me that I had let GREED overcome me. As soon as I realised I was running this trade on emotions (GREED) and not my PLAN, I closed the trade and took my profits. Then after, when I got back to "normal", I couldn't understand why I was beating myself up for a measly 10 rotten pips!

Whenever you are near your target and price stalls for whatever reason, lock in, or take your profits. Trading is not perfect, we don't always have to have 100% of our target. These days, any profit is a good profit. Don't worry that price took off and went beyond your target, forget it, let it go, be happy with the profits made. When you start thinking of lost profits, GREED has overcome you. Instead, think of how lucky you were to make a profit and what it would have been like if you had LOST the same amount.

There is always another trade being set up somewhere and since history repeats itself, there will be trendier times.
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,018
  • Jul 2, 2009 7:23am Jul 2, 2009 7:23am
Quoting strat
I posted my "quickie" USDJPY trade on this some time back. I think I was agonising about being 10 pips away from the target I had set when I was already rich in profit. I was beating myself up wondering what would happen when it dawned on me that I had let GREED overcome me. As soon as I realised I was running this trade on emotions (GREED) and not my PLAN, I closed the trade and took my profits. Then after, when I got back to "normal", I couldn't understand why I was beating myself up for a measly 10 rotten pips!

Whenever you are near your...
First post here, but I here Nicola talk about you all day (Hi nicola if you read this).

The above is so very truthful and we have all been there done that, more often than just the once. We react to our pleasure and pain emotions in these situations, but it is funny (well not really but bear with me) that we do the same thing when we are staring down the barrel of our SL coming close to being hit. We agonise over it at times, and we play it pip by pip, 10 , 9 , 8 and wow Stopped out, gee I wish I closed it earlier.

There is trading your plan, which needs to be mechanical, however you also need to understand that there are times when things are not right and taking a SL earlier is just as rewarding as taking profit. The market will not always do what you want, but in saying that there will be times when your plan begins to backfire but you just take the loss. Accepting risk is not the same as saying "ok I have a 30 pip SL IM not going to do anything to stop it hitting that". Taking action before hand, when things just are not playing out at all is just as important as locking in profit.

I love this thread (and the addition).

Take care

Razor
  • #4,019
  • Jul 2, 2009 7:24am Jul 2, 2009 7:24am
Quoting Surfer
Interesting chart this one.

The shooting star may even have been too good for Bond.
62% retrace on the Weekly and quite extended so not surprising to see it reverse there. Anyone take that counter-trend short? It paid off quickly.

I have support at 1.87 and there is stong resistance at 1.94.
Will be looking for a retrace to 1.87 and then for PA for a long. It should meet up with the 20EMA around there somewhere. A little test under there could bounce off the 38% on the daily.
My broker doesn’t have this pair, thank goodness!

This pair illustrates how you need to be “in tune” with the pair you are trading.

When I look at this, all I see is volatility. Look at all those long tails and wicks – a trader’s nightmare. When candlesticks were introduced, they stressed the importance of the “body” and the close being the most important part of the candle.

If you look at this pair, you will see that at most turning points, the candle is more wick and tail than body. This also causes far too many dojis, shooting stars and hammers which I would imagine would drive Bond around the bend!

This pair is definitely not for the feint hearted and beginners!
15 YEARS OF PASR ON FOREX FACTORY!
  • #4,020
  • Jul 2, 2009 10:27am Jul 2, 2009 10:27am
Quoting Razor_trader
First post here, but I here Nicola talk about you all day (Hi nicola if you read this).

The above is so very truthful and we have all been there done that, more often than just the once. We react to our pleasure and pain emotions in these situations, but it is funny (well not really but bear with me) that we do the same thing when we are staring down the barrel of our SL coming close to being hit. We agonise over it at times, and we play it pip by pip, 10 , 9 , 8...
Razor, thanks for your post and I hope this will be the first of many.

While I agree with everything you say on SL, please remember we are teaching all levels of traders on here, most of whom are new or "old" unprofitable traders. This being the case, I am teaching a very conservative, safe, low risk version of my methods and styles which focus on discipline, patience and common sense.

As you know, EMOTIONS are our biggest battle, not the market, and as such, we have to first learn how to control them. The only way I know how to control emotions while trading is through a self accepted and trusted PLAN which includes the SL.

Once accepted and trusted, we stand by our SL whether it is hit or not. We must have the DISCIPLINE to trade our PLAN no matter what the market is doing. So for, those on The Path, stick to your PLAN and do not change it in any way shape or fashion during the trade including your SL. If the market goes against you then it's just a loss, a part of doing business which you have already accepted in your PLAN.

When you have a consistent equity growth over at least 3 years and feel you have accumulated sufficient experience, patience, discipline and are in CONTROL of your emotions, then, and only then, can you consider monitoring your SL.

The deciding factor is CONTROL: Are YOU in control of YOUR emotions OR, are your EMOTIONS in control of YOU. I can tell you with 100% certainty that the first time you trade LIVE with your own, REAL hard earned money (not demo crap), your emotions will be in control of you.

I will say it again. Trading is not about charts, technical skills and your ability to read charts, it is about EMOTIONS (Fear and Greed). Learn to control these and you will be the success you dream about. Ignore them and you are doomed to the poor house.

Now, when you get to the stage that you feel YOU are in control of your emotions, you must still trade your PLAN. I very rarely interfere with my SL as I know, for me, it opens the door to my emotions and from then on, I am trading on emotions and not my PLAN. Learning how to CONTROL your emotions is far more important than learning PASR. "Did I read that right?", I hear you say? Damn right! Our trading psychology accounts for 90% of our success in trading.

I used to ignore all the psycho stuff as I thought it was PR to sell their books. As I continued to ignore it, the more I lost. It was only when I had been beaten up, turned inside out and hung out to dry with what was left of my stomach in my mouth many, many times, that I realised I needed to learn about ME and MY trading psychology.

I still struggle with this as I have shown in some of my posts but I am at the stage now where I recognise pretty soon what is happenning and who is in control and then get out of Dodge as fast as I can.

When you get to the point and the time that you feel YOU are in control of YOUR emotions and you feel you have the experience to monitor and adjust your SL, don't forget that it is a DOUBLE EDGED SWORD!

What I mean by this is that while you feel good that you may have saved yourself some $ by getting out of your SL early, it can also prevent you from continuing the trade, and maybe one which would turn out to be a 4 figure pip haul. Then how would you feel? I have lost count the number of times when I closed my SL prematurely only for the market to come within a few pips of my SL and then launch itself into outer space! I feel much worse doing that than saving a few $ by early SL closure which is why I don't dick around with my SL once set.

Damn, I didn't realise I had got on my soapbox again. Sorry!
15 YEARS OF PASR ON FOREX FACTORY!
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