Never underestimate an idiot.
Uncle, love the title of of your thread.... from one contrarian to another would you care to explain how you define your trades as contrarian.
Also if you are short nzd/usd and aud/nzd at the same time you're essentially making it an short aud/usd..... at least for part of the trade - is there some reason for that?
Loved the Wallace tag.
Thanks for the questions.
Why contrarian?
Do you subscribe to the view that the vast majority of traders lose money? (I don't like to put a % on it) There is so much free and paid for info available on how to trade correctly.
Support and resistance.
Buy pullbacks in up trends, sell rallies in downtrends.
Use multiple time frames, the higher the better.
Trendline breaks.
Don't use lagging indicators.
Learn to read price action.
Risk to reward.
Money management.
The list goes on.
If then, we all follow what is supposed to be right, why do most not make money?
And so this journal was born.
Not to try to prove that convention is wrong, that is not my intention.
It was merely a way of recording my trading. Since I take trades that, more often than not, do not fit the mould, I simply wanted to put them down in writing for all to see. The good and the bad.
Of course there will be times when my entries do indeed fit the norm. But that is just coincidence since my entries take many forms. Some may be considered reckless or foolhardy. Ones which others wouldn't touch with a barge pole. That is why I decided to start this journal. A method thread would probably be of no use. I simply trade what I perceive to be the correct course of action. Not to educate.
As to the 2 trades you mention.
The nzd/usd is nothing more than a 50% retrace of the pinbar of 19th Jan.
A low risk entry which I have seen work out before.
The aud/nzd is again low risk in trying to join an established down trend.
You may well be right about being part short aud/usd but I did not see an entry on that pair.
Regards
Paul
Never underestimate an idiot.
Hi Zen,
Loved the Wallace tag.
Thanks for the questions.
Why contrarian?
Do you subscribe to the view that the vast majority of traders lose money? (I don't like to put a % on it) There is so much free and paid for info available on how to trade correctly.
I don't subscribe to the idea that the market is a zero sum game but in answer to your question it is an empirical fact that most traders loose money. Which is one of the reasons I think, like you, contrarian approaches are profitable!!
I wish it was as easy just to implement the above ideas you've listed but I think you money management above all else - and as many great traders profess take every human instinct and reverse it!!!!
Good luck I might chip in every now and then with some contrarian ideas of my own.
Stu
PS I'm currently long quite a bit of CHF - reason: try and find someone who thinks usdchf is headed for further lows.... we'll see
