Hey Tom,
Do you avoid any specific times of day to enter a trade, like the Asian session?
Grant
Ignored
Grant,
It's not so much I avoid any particular time of day but I'm aware of what I call the dead zone which is 5pm - 12pm BST (end of London - start of Tokyo) for foreign exchange.
If I see a setup occuring at this time, I'm always aware that if I do take it, it's probably going to be held overnight as FX movements slow down drastically during this period.
So, although trades can still work you have to be aware it will normally take longer to reach target.
If you are a trader that doesn't like sitting on their hands, I would advise avoiding this time window.
Incidentally, I know there are people out there that like reporting only the winners when they take trades and avoid mentioning the losers, like its an embarrassment to lose!
Those two trades are both excellent ones so if you lose on a trade like that, never be afraid to show it.
Sometimes the best levels will not work. Remember my trade in Barclays...?
Now that I've mentioned Barclays (BARC) let's quickly revisit that stock.
I sold it on the rounded retest of 252 (very significant prior support in the stock).
The entry was at the circled area and the squeeze which was pretty violent, was enough to take my stop out.
You can see that it later turned and came back hard through the level.
Now, see how on the second test from below the level is being respected again with the market moving back into it and this time selling off it perfectly.
Levels can go from being respected to being unrespected to being respected again. This is why I will keep some levels in that might have been very strong historically but may have been washed in recent trade.
Eckhardt offers the rather provocative proposition that the human tendency to select comfortable choices will lead most people to experience worse than random results. In effect, he is saying that natural human traits leads to such poor trading decisions that most people would be better off flipping coins or throwing darts. Some of the examples Eckhardt cites of the comfortable choices people tend to make that run counter to sound trading principles include : locking in sure winners...
The implied message to the trader is: Do what is right, not what feels comfortable.
That's a proven winner right there telling you moving to BE is BS :-)
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Joined Aug 2006
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Status: Thanks james16group
|283 Posts
Tom, what do you do when there is a fast and unexpected profit? Do you bank it? Or hold?
Let's say that you are long eurusd and it goes 50 pips up in one minute. I usually bank because this not seems natural, but I want to learn this from you
Now that I've mentioned Barclays (BARC) let's quickly revisit that stock.
I sold it on the rounded retest of 252 (very significant prior support in the stock).
The entry was at the circled area and the squeeze which was pretty violent, was enough to take my stop out.
You can see that it later turned and came back hard through the level.
Now, see how on the second test from below the level is being respected again with the market moving back into it and this time selling off it perfectly.
