This post is to CPR your day trading FX, if all it is doing right now is losing. This is not a long term method like trend following which holds a position for days or weeks.
In day trading one is not looking at historical supports/resistances, trends, news etc. That's all meta-data it doesn't exist it's just a human way of trying to control something that cannot be controlled. Day trading is to make money off mob pscyhology or the market's sentiment.
The flow of money controls the price. If it's flowing into something the price goes up. If it's flowing out, the price falls.
Using the information posted by FX brokers on the market sentiment gives us an idea of the where the money is flowing. www.dukascopy.com below their FX quote table is a link to "Forex Data & Tools", click this, then on the window that opens up click the "SWFX Sentiment Index". There are two buttons "Liquidity Providers" & "Liquidity Consumers".
The liquidity providers are the big banks that provide the bids & asks. The liquidity consumers are the hedge funds and other traders.
There are six currency pairs. When the percentage is below 60% take the same position as the liquidity consumers. For example if the EUR/USD liquidity consumer is at 53% long (blue colour) throw on a long position for that pair.
If the percentage is greater than 70% take the same position as the liquidity provider. For example if the provider is 74% long (blue) EUR/JPY. Throw on a long position for that pair.
For the in-between zone of 60% to 70%. If you're falling into this zone from the 70+ zone, then retain the position of the 70+ zone. If your entering from below the 60% zone retain that same position.
These are the only currency pairs that you can trade because there's no information on the others. So don't trade them.
The key to trading is not the entry it's the exit. To know when the market is moving against you and to know when the market is stopped moving further in your direction. Think of the waves of the ocean. They progressively reach the shore and stop. If your positions are progressively worsening your in too deep liquidate your positions no questions asked. If your positions initial worsen but then stop like the water line at the shore it goes no further, hold-on for it to reverse and take your profits when the flow stops in the other direction.
Regarding money management, protect the total loss to your portfolio. So let's say if your portfolio is down 2% liquidate no questions asked. That's a hard-stop. Don't hope things will turn around. Come back again another day to trade.
Once you start winning, you'll feel more confident to hone your skills, which is why it's called CPR your FX.
In day trading one is not looking at historical supports/resistances, trends, news etc. That's all meta-data it doesn't exist it's just a human way of trying to control something that cannot be controlled. Day trading is to make money off mob pscyhology or the market's sentiment.
The flow of money controls the price. If it's flowing into something the price goes up. If it's flowing out, the price falls.
Using the information posted by FX brokers on the market sentiment gives us an idea of the where the money is flowing. www.dukascopy.com below their FX quote table is a link to "Forex Data & Tools", click this, then on the window that opens up click the "SWFX Sentiment Index". There are two buttons "Liquidity Providers" & "Liquidity Consumers".
The liquidity providers are the big banks that provide the bids & asks. The liquidity consumers are the hedge funds and other traders.
There are six currency pairs. When the percentage is below 60% take the same position as the liquidity consumers. For example if the EUR/USD liquidity consumer is at 53% long (blue colour) throw on a long position for that pair.
If the percentage is greater than 70% take the same position as the liquidity provider. For example if the provider is 74% long (blue) EUR/JPY. Throw on a long position for that pair.
For the in-between zone of 60% to 70%. If you're falling into this zone from the 70+ zone, then retain the position of the 70+ zone. If your entering from below the 60% zone retain that same position.
These are the only currency pairs that you can trade because there's no information on the others. So don't trade them.
The key to trading is not the entry it's the exit. To know when the market is moving against you and to know when the market is stopped moving further in your direction. Think of the waves of the ocean. They progressively reach the shore and stop. If your positions are progressively worsening your in too deep liquidate your positions no questions asked. If your positions initial worsen but then stop like the water line at the shore it goes no further, hold-on for it to reverse and take your profits when the flow stops in the other direction.
Regarding money management, protect the total loss to your portfolio. So let's say if your portfolio is down 2% liquidate no questions asked. That's a hard-stop. Don't hope things will turn around. Come back again another day to trade.
Once you start winning, you'll feel more confident to hone your skills, which is why it's called CPR your FX.
Attached Image(s) (click to enlarge)
