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Trading Made Simple

  • #10,141
  • Aug 16, 2011 3:00pm Aug 16, 2011 3:00pm
Quoting dcginc
I have been getting a lot of PM’s lately about how many pairs to trade, which pairs to trade, what times to trade, etc., etc.
Yes - nicely done. The one thing I would add for the newbies - don't jump form pair to pair, focus on the ones Big E outlined, I'd say start with the most liquid and easy one, play with it , practice with it, sim it, learn it's movements, then perfect it then add another if you must. When money is on the line it's hard to let multiple pairs run especially if they are influenced in the same direction.

From the Big E - PDF/Word Docs....
Pairs on my main screen I monitor.
e/u, g/u, e/j, u/c,
a/j, a/u, e/g, u/j

Note they are in a specific order so when they are layed out you will see how they move in concert or against each other, makes it easier to figure out which to take or practice with, as well if you are overloading to one side of the market.

Hope this helps
  • #10,142
  • Aug 16, 2011 3:04pm Aug 16, 2011 3:04pm
Hi,

I entered long on EURJPY yesterday as the daily chart showed (according to my understading) a clear sign of bullish euro on this pair.
Stoch was confirming direction and was clearly moving out from an oversold condition.

I entered at the very beginning of the second daily candle (see white arrow), past 0.00 my time.

Now it is 10.pm my time and the daily candle I entered has still 2 hours before closure. All seemed good (good TDI angle crossing, strong first candle that closed above EMA, stoch confirming and bouncing from oversold) but I am losing roughly 40 pips at the moment.

Any ideas about this entry? Why I was wrong?

Thanks
Attached Image (click to enlarge)
Click to Enlarge Name: try5.jpg Size: 88 KB
  • #10,143
  • Aug 16, 2011 3:16pm Aug 16, 2011 3:16pm
Quoting Nacho
Hi,

I entered long on EURJPY yesterday as the daily chart showed (according to my understading) a clear sign of bullish euro on this pair.
Stoch was confirming direction and was clearly moving out from an oversold condition.

I entered at the very beginning of the second daily candle (see white arrow), past 0.00 my time.

Now it is 10.pm my time and the daily candle I entered has still 2 hours before closure. All seemed good (good TDI angle crossing, strong first candle that closed above EMA, stoch confirming and bouncing from oversold) but...
Hi Nacho

I have experienced the same problem 3 times this week but on a 4hr chart, (see my earlier post) I have looked at the 3 trades and they were against the daily trend. In your case the trend obviously looks Bearish, I have made this mistake before & stupidly keep doing the same thing. I personally will be doing the following - looking at the daily trend first for direction & then confirmation on either a 4hr or 1hr chart. The most important point is to try & learn from our mistakes & move forward. Hope this helps..

Regards Craig
  • #10,144
  • Aug 16, 2011 3:23pm Aug 16, 2011 3:23pm
Quoting Nacho
Hi,

I entered long on EURJPY yesterday as the daily chart showed (according to my understading) a clear sign of bullish euro on this pair.
Stoch was confirming direction and was clearly moving out from an oversold condition.

I entered at the very beginning of the second daily candle (see white arrow), past 0.00 my time.

Now it is 10.pm my time and the daily candle I entered has still 2 hours before closure. All seemed good (good TDI angle crossing, strong first candle that closed above EMA, stoch confirming and bouncing from oversold) but I...
I wouldn't necessarily say you're wrong...yet...
You have to give the trade some time to breath. 40 pips on daily isn't anything.
  • #10,145
  • Aug 16, 2011 3:35pm Aug 16, 2011 3:35pm
Quoting Nacho
Hi,

Any ideas about this entry? Why I was wrong?

Thanks
You're on a Daily - ATR is 200 pips so 40 should be somewhat expected. With a large range if you used small lot size then the 40 should be nothing, if you used standard lots then I can see your pain. If demo no worries it's practice.

What was your thought process for trend, the Weekly is down TDI weekly looks like it's near a cross up but you still have 3 more days before it closes.

The 4hr looks like it's taking a breather at the previous swing point.

Always consult one TF higher to see what you are really up against.

You followed your plan. Big E has said the runs should be 3-8 candles so let it play out.
  • #10,146
  • Aug 16, 2011 3:45pm Aug 16, 2011 3:45pm
So lets check out this GU chart for a short?
- 1st thing I see is a VERY strong resistance (6471). It has turned price back 6 times in the past 2 weeks.
- 2nd thing is the TDI cross
- 3rd thing is a pretty sharp TDI angle down
- 4th thing is stoch is way over sold
Attached Image (click to enlarge)
Click to Enlarge Name: gu short.jpg Size: 187 KB


Problems:
4H and Daily are in an uptrend position
5 ema has not been crossed and closed
  • #10,147
  • Aug 16, 2011 3:56pm Aug 16, 2011 3:56pm
Thanks everyone for your replies - I re-checked and at the time of my entry on daily TDI green lines for H4 and H1 were flat indeed and weekly was somehow down.

I am sometimes easily misled by higher and lower TF because most of the time they are in contrast with each other.

I'm on demo so I will just let it go tomorrow and see what happens

thanks

nacho
  • #10,148
  • Aug 16, 2011 3:57pm Aug 16, 2011 3:57pm
Quoting Fitness09
So lets check out this GU chart for a short?
- 1st thing I see is a VERY strong resistance (6471). It has turned price back 6 times in the past 2 weeks.
- 2nd thing is the TDI cross
- 3rd thing is a pretty sharp TDI angle down
- 4th thing is stoch is way over sold
Attachment

Problems:
4H and Daily are in an uptrend position
5 ema has not been crossed and closed
nice observation
  • #10,149
  • Aug 16, 2011 3:57pm Aug 16, 2011 3:57pm
Attached Image (click to enlarge)
Click to Enlarge Name: gu short longer.jpg Size: 296 KB
  • #10,150
  • Aug 16, 2011 4:06pm Aug 16, 2011 4:06pm
Quoting Fitness09
Attachment
seems to be a strong resistance level, will see what happens in 8 hrs time
  • #10,151
  • Aug 16, 2011 4:18pm Aug 16, 2011 4:18pm
Quoting dcginc
I have been getting a lot of PM’s lately about how many pairs to trade, which pairs to trade, what times to trade, etc., etc.

I also notice the amount of trades and pairs many folks post on this thread. I am amazed. It is a talent I have not acquired. For me, trading a multiple pair portfolio provides a chance to sort for the best trade set ups, not necessarily to increase the frequency of my trading.
I totally agree. I personally only trade four pairs... but, I'm never in all pairs at the same time. I will pick the one with, what I think, is the best setup.

As I've stated before, I have a specific goal in mind every day/week/month.

You really only need 10 pips a day to make this work.

Donovan
  • #10,152
  • Aug 16, 2011 4:31pm Aug 16, 2011 4:31pm
Quoting Fitness09
So lets check out this GU chart for a short?
- 1st thing I see is a VERY strong resistance (6471). It has turned price back 6 times in the past 2 weeks.
- 2nd thing is the TDI cross
- 3rd thing is a pretty sharp TDI angle down
- 4th thing is stoch is way over sold
Attachment

Problems:
4H and Daily are in an uptrend position
5 ema has not been crossed and closed
I think your tdi angle is giving you trouble. Zoom in all the way then zoom out twice. I think you have your chart zoomed out three time so the angle looks a lot better on the tdi
  • #10,153
  • Aug 16, 2011 4:34pm Aug 16, 2011 4:34pm
Quoting dean
I think your tdi angle is giving you trouble. Zoom in all the way then zoom out twice. I think you have your chart zoomed out three time so the angle looks a lot better on the tdi
It currently looks about 5 o'clock at the moment.
  • #10,154
  • Aug 16, 2011 4:38pm Aug 16, 2011 4:38pm
5th thing is there is a Double Top
  • #10,155
  • Edited 5:38pm Aug 16, 2011 5:27pm | Edited 5:38pm
I got up this morning and opened the charts and noticed that if I would not have had a trailing stop, I would have been stopped out last night on Gbp/Usd.

Ya.. I only got 27 pips.. and could have exited with 35 but my goal is only 20 pips a day so. That's why I moved my stop up EDIT: DOWN to 20 pips, locking it in, then set my Trailing Stop so that IF it continued, I would pull out even more. As it was, I only got a few more pips.. big deal, I don't care!

Why?

Because I was only shooting for 20 pips.

Sometimes, the key is to not be greedy.

Happy pipp'n


Donovan
  • #10,156
  • Aug 16, 2011 5:30pm Aug 16, 2011 5:30pm
  •  GT_Pips
  • | Joined Jun 2011 | Status: Dont hate what you dont understand. | 71 Posts
Quoting ForexSam
No, I prefer 1H. However, you are onto something. So, while posting a trade for everyone to see, a little bit of pride creeps and you go back to making those rookie mistakes.
You dont have to post screens to prove anything.
If you say you made 10 pips as far im concened you made the 10pips.
If someone thinks you didnt, then thats their problem.
Cause in the end, its growing your account or making a good living as a trader the matters.
He who wanders, never gets lost. No good deed goes unpunished.
  • #10,157
  • Aug 16, 2011 6:01pm Aug 16, 2011 6:01pm
  •  GT_Pips
  • | Joined Jun 2011 | Status: Dont hate what you dont understand. | 71 Posts
Quoting Nacho
Hi,

I entered long on EURJPY yesterday as the daily chart showed (according to my understading) a clear sign of bullish euro on this pair.
Stoch was confirming direction and was clearly moving out from an oversold condition.

I entered at the very beginning of the second daily candle (see white arrow), past 0.00 my time.

Now it is 10.pm my time and the daily candle I entered has still 2 hours before closure. All seemed good (good TDI angle crossing, strong first candle that closed above EMA, stoch confirming and bouncing from oversold) but...
Since your trading a daily chart, did you look forward to a weekly chart to determine the longer term trend?
Then look back at the 4h,1h to determine the best entry?

Also if your trading a daily chart, being down 40pips is really nothing.
Even on a 4h chart 40 pips is nothing.

If your account can't handle a 100, 200 pip stop lost on a daily, then you need to move to a faster time frame.

Even on a 4h chart, two candles back for a stoploss can sometimes be over 100 pips.
He who wanders, never gets lost. No good deed goes unpunished.
  • #10,158
  • Aug 16, 2011 6:15pm Aug 16, 2011 6:15pm
  •  GT_Pips
  • | Joined Jun 2011 | Status: Dont hate what you dont understand. | 71 Posts
Quoting ForexSam
Does anyone use the 4H signals only? I would like to trade longer TFs to reduce m time in front of the chart. Any input would be greatly appreciated...
FS
One very important thing to think about is.
Can you stand the pain of being down 100pips in the 4h trade and not sweat bullets?

I only trade the 4h with the Big E system.
Some of my stoploses has been over 100pips.
Mainly because I set my stoploss 2 to three candles back.

When I trade the 4H, I also look back at the 1H, 30m, 15m, 5m and even down to the 1m for the correct entry point.
Doing this will assist you in entering the trade at a sweet spot.
Doing this can sometimes prevent a 100pip drawdown since you would still be on the sidelines waiting for the other time frames to line up.
He who wanders, never gets lost. No good deed goes unpunished.
  • #10,159
  • Edited 7:02pm Aug 16, 2011 6:25pm | Edited 7:02pm
Quoting handy148
5th thing is there is a Double Top
Yep, forgot to put that one down. Seems like a lot is on the short side, but you really never know!

I did take a short position when I posted those charts at 6445
  • #10,160
  • Aug 16, 2011 6:52pm Aug 16, 2011 6:52pm
Quoting Fitness09
Yep, forgot to put that one down. Seems like a lot is on the short side, but you really never know!
A bit less chop and serious resistance - PA starting to pull back - new candle in 12 mins for H4.

With that said there is still a strong upward momentum on H4 - patience for that TDI cross , or conversely breaking the resistance. No matter how many times I predict or read the news and interpret, the PA always wins out!
Attached Image (click to enlarge)
Click to Enlarge Name: gu h4 8-16.gif Size: 30 KB
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