EURUSD

stocks green now pushing .25 percent..

Well I'm just buying short term dips on the downtrend. I usually hold my longer term trades the opposite way...so I catch nearly the entire spectrum of movements where possible.

I need EUR to move up 100 pips....dunno if that's going to happen, but it would be nice before the end of quarter occurs....that way we have another opportunity to short at the peak again.....

It should risky for short term traders though not for you as trading long term . I will not take any long before below 1.45. anyway all short-longs should be ultimately honoured within the rages of 500 pips.so below lower 100 pips to get 400pips + & those at upper 100pips should also get 400pips + .good opprtunity no doubt.
fontu

Its risky if you don't have an overall trade plan. Whenever I place a trade, I have to make sure it fits in the entire scheme of my existing trades since I am a positional trader, I hold many of my positions for a good while. While I am holding these positions, I will use short term scalps to make small but consistent daily gains.

If any individual trades (I call them investments) does not fit in the larger scope of my overall investments, then it is simply not done.

I perform my investments this way so that I have the ability to manage 98% of my trades to profit. My account grows at a steady rate each month and my goal is to earn merely 500 pips a month....because of this consistency, I am able to grow my account through compounding over time and at the same growth rate. Compounding is the only thing I do better than anyone else I know, in the short term, I am always out-traded by scalpers and short term players. The only thing that changes over time is the lot size to keep up with the consistency of the rate of growth.

My risk per position at anytime is typically 1%....

Nice investmant plan ,risk management & trading success . Hope oneday we will learn how to & follow exactly your path for fearless trading too .
fontu

i would say they wait now for tomorrow.
I wish a good afternoon and night.

This is what I want to become, something like you, seriously, without knowing your trading style this is what I thought a month ago of what I want, 400 - 500 pips per month, holding long term positions, and scalping a little, and with the time, continue doing the same thing but with larger amount of lots. Do you have any blog or thread of your own?

EURUSD M15 chart showing my take on the channel S&R, including fibs.

p I appreciate your sharing your style with us X. I myself am moving beyond just scalping to diversifying my positions & also holding trades longer term. Do you hold opposing trades in a single pair simultaneously - and if so, how do you do that - in separate accounts, or...?

One of the best advices I've read in some time in this thread. As a rookie trader still trading a demo account I would very much appreciate it if you could go into more detail on your trading plan.

eur short looking good tp near green median line which has same frequency as red. worried about the cycles though. could of had a limit order close to upper median line green parallel but oh well sometimes i don't have patience.

perhaps he will decide on a school of thought .. like for example the eur will gain str in X months time.. and he enters a long position.. and in the meanwhile, the price bounds to dip right?

he will scalp those dips too... i think this is what he means.. but he is the best to comment

to add on, proper money management may be one of the best trading "plan" you ever master.. if it pleases you, do read my money management articles over at my blog www.thegeekknows.com

hope it helps.. good pips to u

The best thing is to have an OWN trading plan.

You need a plan/strategie which fits to YOU .

It's a long way

boring boring

Forex4,

The first thing you will want to work on first is to understand price action.
Learn about candlesticks and specialize in one pair.

Second thing is, you have to understand position sizing and how it falls into play with risk management. For instance, I see some folks trading with a 10 pip stop loss and targeting a 20 pip target. That's a fair ratio, but realistically, your stopped out positions will almost always get hit frequently enough to negate any wins you have in place. One thing you could do to keep risk consistent is by determining first what your stop loss should be on the actual trade (ex...trend is down, place stop loss above the last swing high....). So in the example above if the stop loss requires a 70 pip stop, and you only want to risk 1% or less per trade on say a small $500 micro account via IBFX for instance, you first have to know how much 1% of the account is...and if you calculate this, you have $5...if you lose or win $5, you would have earned 100 or loss 100 pips of profit on a $500. Next thing, is, you have to determin your stop loss. If in the above example, your stop is 70 pips, you will be risking $3.50 (70 pips)...this would therefore require a lot size of .05 lots per position.

So if you wanted to risk 1% or under on a trade that required 70 pips in stop loss on a $500 micro mini account, you would only trade .05 lots.....
Each 100 pip trade will earn you $5.

So for folks that say they don't have enough funds to last a wide swing, they probably haven't done the math on the account and may need to reduce the size of their account in order to achieve what a larger funded account would.

yeah like 0.01 cent per pip ! i tried that b4 lol

Thanks for the advice, I'm doing something similar, but have to understand better the PA. I'm studying this pair, but yesterday I took the opportunity on 2 other pairs, with 2 longs, giving me 30 pips each.

Will check your articles out, thanks.

Scalping is great if it works for you. I have been trained to scalp, swing and positional trade. To be honest, I am a very impatient trader. However, over the years, I have learned to be a little lazy in my trading to earn the most pips. The rewards come when you close the position and are sitting on top of a large range of pips. It is the most satisfying feeling in the world (for me).

The style of trader I am is, I am a mix...I have to win consistent profits and I have to always be in a trade. As such, the long term positions serve my purpose and allows me to check on those positions a couple times per day. Scalps keep me active in playing the markets for short term satisfaction. Its the way I'm built.

The scalp trades I take to ease an edge I have for trading. I think I am obsessed with it. You almost have to become obsessed for a bit in trading to become good at it, as with anything. I think most traders have a type A personality by nature anyway. However ironically, it is the patient traders that stay in the game a long time.

I cannot really disclose my specific methods in detail because I trade on a professional level for a private firm. Also, contrary to what some longer term traders on here may say about Hedging being dangerous and that Banks do not use it. I beg to differ. Banks have used hedge style investments for decades. I know because I have met many coming from an institutional environment myself, plus my mentor worked in the investment/banking industry for years before he became a retail trader for himself.

I could not think of a safer method or style of investing than hedging. Most would say that a hedge is a flat position which cancels out the other and that it is only for those that cannot accept a loss. Part of it is true, but with any style of trading, it can be dangerous if you do not know what you're doing.

One of my weaknesses as a trader in the past was to scalp the markets with short term positions and hold losing trades. I think we all did this at one point of our trading lives, one way or another.

I needed to find a way to harness my weaknesses and make them my strengths. Over the past 2 years, I learned how to swing trade very well. i also learned about stop placement and the example I provided in a few posts back about how to utilize a stop, was part of my learning experience. It works very well. I learned methods of money management that made all the difference in the world, because when you know money management, you can literally take any trading system and make it a profitable one.

Another weakness of mine is the short attention span I have. I could not stick to any one method of trading for very long.

So what I did was came up with a way to hedge trades that went against me to sustain them in such a way that allowed me to wait for a better opportunity to to capitalize on the stronger of the two positions. In this way, the hedge neutralizes my bad decision and allows me a 2nd opportunity to enter a new position and work my original back to profit.

Hedging is probably one of the most complex styles of trading and therefore, I would not recommend it right of the bat to green pea traders who have not yet learned the basics of trading. There are also various forms of hedging. Do your research, that's how you learn best.

I became a good swing trader before I learned to hedge well. I learned to hedge before I became a good swing trader. Once I learned how to swing trade, I incorporated hedging into the concepts I've learned to capture major market moves.

To become a good trader, you cannot do what most traders do. Which is to try and learn a system. My mentor once told me that systems never work.....because the markets are always changing. Concepts work. With concepts, you can always rebuild a style of trading to fit the markets and to fit your personality.

If I taught you a long term style of trading, you may not be able to execute it because of impatience and because of the style of personality you are...you may be impatient and a short term trader. You may be used to taking 10 lot positions on a single trade and scalp for very short term 2-5 pips trades. Thus my style would not fit your personality and would not work because you would break the rules everytime.

On the other hand, if you were a long term trader where you used fractional lots instead with low risk and were more patient to hold on to your trades and have very large stop losses my style may not fit you because I may be a short term scalper.

The best advice I can give you guys is, learn how to position size your trades to withstand larger market moves. Once you are profitable in a position, move your stops to 1+ break even. At the peak of the move, for instance, if price becomes stagnant or peaks out (You will know this by a doji bar in the form of a hang man), then take half the position off the table. Many times, you will be faked out by a weakening of a momentum trade, only to find the position continues after you close out your trade. By taking half off the table, you essentially pocket a profit and the rest of the trade becomes "risk" free because you've now reduced your risk to Break Even +1 which covers the spread and now you are playing with what people call...."house money". The only thing you cannot get back is time spent managing these trades.

From here, you can ride this position and on the next price dip, if price comes out of the dip and continues in the original direction of the trade, you can now ADD to the Risk Free position. This new position essential becomes a NEW trade and your existing profitable trade which you've already banked for half the profits provides your new position a "RISK FREE" trade. Risk free because you've already banked a profit and you've also accumulated additional profits on your open position. You continue this method until you are stopped out. Simple.

Finally, instead of focusing on entries, focus on how to work your way out of a losing trade......use the method above to protect yourself as a trade goes your way. Use hard stops to gain another chance to re-enter the market when a better opportunity presents itself.

My last piece of advice is, while you are learning, use the smallest pip size possible.... this protects you from losing your hard earned capital while you learn, plus it teaches you what most traders do not have....patience.

Hope that helps some of you out. Trading does not have to be complicated...and when all else fails, walk away and come back when you have a clear head.