Dislikedi find the trades very fast to move in my favor if I'm in the right direction..as you can see last trades were in the right direction but with no momentum at that time...i just closed them as they were ranging and making closes above my 5 min entry..and as i got better opportunity i just re-entered..this how i like to do..
but its all up to you.but since i was already "not bad" at low risk entries i implemented this from Graeme's idea easily...Ignored
And I promise this be my last post as I do tend to get carried away when talking about trading.
For myself, I trade 5min when I see red aura in the market. It doesnt happen all the time but enough times to get my pulse running.
I do not wish to stay in a trade, not 1 minute longer than required if its going against me or something is amiss. And how do you know that? It is very simple. You execute and no one else does...
When I enter on 5min chart I expect to see at least 'few' of the following:
1. It has recently come out of range that had more than 5 candles at the least. (if im trading breakout)
2. Stall before 5/10ema crossover. Small candles that has almost same open price and close price in a row and then price moves out and ema crosses. (if im trading breakout)
3. The candle I enter has less than 33% retrace or maximum 50%. Alarm bells start ringing if a) retrace goes to 50% and stalls and goes up further b) price closes against me; I enter sell and the price closes above the open price of the previous down candle (this is a big no no and I would really hesitate to stay in the trade)
I focus on point 3 heavily.
The most important thing I observe is the retrace and the size of it. Why? This is gauging at the oppsite side's strength. If I sell I want to know for a certainty that there are much less buyers than sellers. I do not wish to turn up at the party all dressed to find no one there.
I enter and price stops? I judged the momentum incorrectly. Correct definition of momentum? Your position goes to positive as soon as you enter. 5 star.
Personally I choose to use small 5 pip, 7 pip ammos when probing the 5min chart and have no remorse to losses (unless I overrisked myself and gambled more than trading). It is necessary part of trading to lose some. It amuses me to know that in a few weeks one trader will be cashing out a big cheque of few thousand pips and he stops to worry 100 pip loss this week? Yes it will concern you if you are playing with lot size above your current financial level. And these type of traders worry me as they try to rush and market doesnt like getting pushed around. Most often these traders will see their capital bust out before the inevitable profit arrives. Very poor money management.
Believe me when I say that a 5000 USD account on 0.1 lot size ($1 per pip) will be more than enough and you are looking at few tens or hundreds dollar per week on average calculated over few months period.
Thank you all
Graeme