Fail Better

I would like to share my first try in rounded retest trading Demo of course.

AUDNZD short @ 1.3188
CHF/JPY long @93.93

Good morning, madboy,

This is a really good question.

I'm going to talk about this in the webinar as it's going to be difficult to sum this up in a post.

Speak to you on Sunday.

Tom

Hi Daft,

No, levels do not need to be PPZ's for me to trade them. I am happy to take areas that have been just support or resistance.

Hi Jon,

The concept is good but I did not have a level there.

Mine was down at 1.4382.

fxlan,

Can you please tell me how you have managed this trade?

Tom

cheers

jon

I know this wasnt a great setup but a man has to start somewhere. If you look at the second Eurosilver chart, the same level was take out without hesitation.

And i mostly agree with you on the BE thing but at the moment i am just worying about the entries.

Thank you

These are a couple of areas i am watching:

one i didnt see coming...

jon

Hey fxlan,

I think you handled yourself pretty well for a first trade so well done, mate!

I know it's all hindsight now but I think you needed to be looking at the orange dashed line that I have marked with the red arrows as your target. I know it wasn't the LAST low as you indicated but there were a greater number of lows at that price.

When that was reached you wanted to either;

a) Take full profits

b) Take 50% off the table and keep the stop where it was. This is then a winning trade overall. You could then look to move your stop up if price manages to take this level out or it it creates bearish PA here.

What you don't want to do is just leave it, gamble with the level and move to breakeven. This will damage your account overtime.

Personally, I think the right thing to have done here is point A : taken full profits.

The reason I say this is that the orange dashed line marked with the arrows is a D1 level to me (you will clearly see it if you switch to that TF) and the level you bought at is an H1. As a result, you are buying after price has broken and closed through a higher time frame (and therefore more significant level) which indicates weight in the market. The level you bought at is a good one but is an example of what I would call a short term bounce trade rather than a longer term swing because the higher time frame action is decidely bearish.

REMEMBER: There is no need to gamble with a target level like this. You can always get in again if it breaks it, closes above and then comes back for the retest.

People don't like doing this but this is what the professionals did in the proprietary trading firm I worked at.

The advantages of getting out here is that:

a) If it does turn here (which is high probability) then you have got out at the optimum location, banked profits and can then re-assess with a clear and objective head

b) If it does push on up though, you can then put in a bid to buy in again at the level on the rounded retest back to it. Most often you will get EXACTLY the same price (as if you had never got out if you see what I mean) but then you will have the ADDED CONFIRMATION that the market is trending in your favour.

Great post Tom...

I'm looking forward to it

When managing my trades i usually look at the recent levels as more important but yes the dashed line looks good. And i agree with the no BE thing with you. I have made a spreadsheet of my trades tracking what would happen if i closed on my target, left on BE,... After 10 trades i would be much better of taking profits but we will see what will happen in the future.

Thank you for the reply. In the future i will try to look for the rounded retest of the rounded retest - how many times does it happen,.. But you probably have to go to a low TF to see and manage it correctly. Will have to do some work.

Here are a couple of stocks waiting for a retest:

the AU/NZ missed my entry by about 6 pips today :/
pulling my order off for the weekend.
Wiz, what size buffer do you use for your orders?? i had my level at 1.3200, if you had the same price where would your sell order have been placed??
i had mine at 1.3180 which covers the 4 pip spread also.

cheers

jon

BTW do you pull any unfilled orders at the weekends??

Tom im not sure you saw my original message a few pages back, i don't want to miss the webinar tommorrow and i cannot PM you due to my low post count, i did message you with my e-mail address on Skype but never really know if you are there or not as your so busy even though you was showing as online. lol. Let me know what to do before tommorrow please?

Hi Tom.

I noticed this on Cad Chf weekly but same on Daily really. Broke the low and closed above. So if we get an up day now then good chance we could see further movement up, possibly to around 8870?

Is this the scenario/pattern you have described recently?

Leon

First Webinar attented today for me, it was great! Thanks Tom. Rupesh.

A nice bounce on the open of the markets. Had that level marked but what can you do.

Another one today but i didnt like this one as much as natural gas. But this one gave an opportunity to enter unlike the gas.