Trading For Those With a 9-5 Job

I hope I am able to answer these questions correctly.

(1) I have my own system and I would scan all the pairs I have set up on my watch list. I would then build up a shortlist of the the pairs that have triggered a setup. As I have one bullet I would have to choose one trade to invest in. I might now bring in other filters. For example I would choose long yen pairs if they are in the shortlist as I will be trading in the direction of preference of the major central banks in the world. Why swim against the tide?

(2) I want to trade in such a way that I will be able to trade if this trade doesnt work out. I would also want to trade in such a way that if the trade goes my way I would not regret laying on more stake inthe first place. One way of doing this is to trade depending on the confidence you have in the trade. More confidence - bigger lot size. Less confidence - smallet lot size. The other way is, which is my preferred way is to trade a fixed lot size. 2% risk has been bandied about. If 2% of my account is $1000 and I need a 100pip stop in a eurusd trade then I will trade 1 lot where 1 pip = $10. A lot of fixed risk lots means more oppotrunities to lose and still be able to trade

(3) As I am a chartist the charts will tell the story. I have to find a point where past that point the trade would be considered a loss. This would be a point behind resistance, support , a trendline, a candle pattern. The distance from my entry point to this point is the risk in pips. This also form the basis of calculating the trade size

(4) When to close the trade. This particular area used to be my problem as I took profits too quickly and let my losses ride. The opposite of what should be happening. Some set profit targets others use trailing stops. Profit targets are good because you get the satisfaction of an automatic trade. You also are able to capitalise on spikes in your favour. The problem is there is the possibility of leaving a lot on the table.
I would use a training stop and close out when the opossite of the reason why I entered the trade happens. For example, if I entered because of a MA cross then I will close out if the opposite cross happens. I would also bail out just before what I consider solid support or resistance


There is a lot to write but I hope I have done these questions the justice they deserve.

Olu

BBO,


So you have;

1. a watch list of products on your radar that are forming bottoms, tops or patterns to trade.

2. your trigger is when the criteria of your system gives you an entry to go.

3. you are trading at 2% risk of the account size as per S or R or ATR.

4. you exit trades based off reverse of your entry criteria.



I would say this would be a very good trend following style...it is simple to implement...you have hard set rules which takes emotion out of your hands...and you do not stare at the screen all day.

Would you prefer this on bigger TF's or lower TF's ?


golfer

My preference is a bigger timeframe. However I am still getting to grips with trading off a daily chart and leaving trades for days without taking profits (or losses)

Thanks Golfer for the exercise. It made me think about how I trade.
For me to be fully confident about fully taking on position trading I must improve my percentage wins and also experience more winning longer trades.
Also I personally find it very difficult to babysit 2 trades at the same time.

I bring you back to what I said in a post earlier on I have been influenced by the millipede thread on this forum where trades are put on for the long term. I just know this is the style for me but learning it and converting from momentary 30 pips profit jubilation and euphoria to 1000s monthly pips peace of mind is the hard part

Guys consider gbpnzd. daily Chart uploaded

Price has crossed above the 100sma
bottoming pattern (temporary one) right around the 100sma
stoch has turned up

My trade plan calls for waiting for the close of the daily candle. And for the stoch to move above 20. Stop can also be quite tight i.e below the candle formations about 100 pips or so.

nzd has had a meteoric rise and if we get a good retracement it would be good for this trade...

Trade closed @1.3745 (+50pips)

Pounded the table to own corn futures, DBA, RJI, RJA.

Now, do we break ALL TIME HIGHS...most likely...which is not good for all peoples...but all peoples do not look.

I hope I'm wrong on this one.


golfer

I believe we will go to all time highs...

Guys I present a monthly and weekly chart of the audnzd currency pair

Monthly Chart:
Doji right at the top
Current monthly candle has broken the low of the doji
Seems to be screaming reversal (at least for 300 pips)

Weekly Chart:
Confirmed 123 break
Loads of topping candles
Stochastics firmly downward facing

General Issues
Stoch on the daily chart is oversold so a bounce may be due

Please find uploaded a daily chart and the weekly chart of the above pair

The analysis for this pair is to get short. Fundamental risk factor today is the ecb conference this afternoon

Daily Chart Analysis
Price in a downtrend
Stoch has crossed down
Price sitting on support

Weekly Chart Analysis
Price below the 100sma
stoch firmly crossed and pointed lower
Elliott wise we have had a retracement so now we are in the throes of a final descent

This pair is behaving as analysed and I am short...

Just been blown out of the water for -40pips!

I'll let it cool down and then re-assess. As analysed previously the trend on this pair is firmly down

Olu

The daily eurchf chart is uploaded for your consideration.

Trend line break
Stoch has turned down from lofty heights
Doji candlestick right at resistance
previous trnd line breaks ran all the way down

Find uploaded a daily chart of the gbpchf.

Price is under the 100sma (bearish)
Stochastics have turned down (bearish)

Might be profit taking week

Price under the 100sma
price broken down from the consolidation pattern
Stoch has turned down

Daily chart uploaded

Price under 100sma
stoch has crossed down
price sitting right on support
price has retested the breakdown point and collapsed again
A collapse here could target 1.5170

Personally, I think that daily chart is not for people that have primary job as a non-trader.

Daily chart requires a large amount of research and investing. It requires a large amount of capital and risk exposure also.

I strongly believe that day trading is best for those people. You can select the most suitable time frame for you. For example, I'm Asian so I only trade from 5PM to 12PM (US and UK session). I believe that it is enough for any Asian guys to make a lot of money as a second job.

i dont understand your Post..
what do you mean by " RESEARCH "
and " INVESTING "..
irespective of TimeFrames..you should have a RISK tolerance level and MM plan ...and a R:R...
what more is there to TRADING..other than a Method or System you personalise /trade...and why cant it be on DAILY TF ??..


USD Spot.png

Thanks for your discussion on the thread. Insightful. Visser you are still yet to answer the question Baz posed to you.

I can give you my example. I started this thread in january and since then I have been trading off the daily timeframe. I have my own simple system I follow and I only need to check the charts once daily when I get home from work. If fact most of my losing trades come from trades I put in during my lunch break and the better ones were put on after the day candle has closed. My research is the well thought out system I have plus the emotional stability to trade properly.

Divergence on the 4h

It appears we are in retracement mode. Even the stock market is showing signs of topping.
In retracement mode usually the pair that has had the most meteoric rise falls the most. So fingers are pointing to the aud pairs.

Euraud:
Price is above the 100sma
stoch is pointing up
there was a fakeout breakdown which was bought

this pair has been in a solid downtrend for a long time and this uptrend might not last more than 300 pips