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Day Trading vs. Swing Trading vs. Position Trading 86 replies

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B.S. Trading with Kenneth Lee

  • #1,841
  • Edited 9:17am Jan 3, 2012 9:14am | Edited 9:17am
Quoting bootsyjam
Look at the 5 min chart for EURUSD today. If that line at 1.3060 wasn't drawn in, what clue is there in the price action that this is a good place to enter a short? My point is, as far as I can tell, that there is no clue. And if there is, what is it!

Another question I have is profit taking. Do people scale out, taking 25% off here and there, or do you all stay all in until the 2.5 or 3.1 RR ratio is achieved?
In this case you didn't have to go down to the 5 minute to see where to enter. I'll go down to the 5 minute to see what it looks like so i can set a smaller zone and thus reap a high risk reward.

I used to just do 2:1 profit taking but i've adjusted to taking profits at the next opposing level. I'm now toying with the idea of taking 50% profits at the closest opposing level then taking the rest at a higher timeframe level. I don't know how well that would work but i'm gonna demo it along side my regular trades and see whats what.

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  • #1,842
  • Jan 3, 2012 9:19am Jan 3, 2012 9:19am
Quoting bootsyjam
But as stated, the 'arrival' criteria is worth 1 point. By what criteria is 'arrival' judged at. What is 'good arrival' and what is 'bad arrival.' Should I care about 5 minute price action and how it arrives/looks on this when I'm picking levels off 1 hour/4 hour charts?
Hell I don't know...
My thought
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I hear and I forget. I see and I remember. I do and I understand.
  • #1,843
  • Jan 3, 2012 9:26am Jan 3, 2012 9:26am
Quoting bootsyjam
Price came close to the weekly demand levels on 4th October 2011 as well as 14th December 2011so it could be argued that it has already approached that weekly level already and soaked up orders. Although it's an arguable point, and with big news coming up then who knows what will happen.

Anthony, thanks for the replies but I'm still no closer to understanding what you look for when watching the price and then entering manually. You've printed the same checklist as me so it's all good, and despite my coment above I also agree that the proximity...
=.=" Just take more practice, buddy I'm somehow still in learning stage too. If you get annoyance, just take a nap or do something that can refresh your brain, this is what I always do. Cheers
  • #1,844
  • Jan 3, 2012 9:31am Jan 3, 2012 9:31am
Watching the approach is very difficult I find. Sometimes I think the approach looks bad and the level still holds and the opposite, approach good and level doesn't hold.

What I tend to do is wait for price to hesistate at the level then enter, then if price forms a flag or doesn't react very strongly, move my stop to break even....this is what I did on EU today.
  • #1,845
  • Jan 3, 2012 10:59am Jan 3, 2012 10:59am
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  • #1,846
  • Jan 3, 2012 12:03pm Jan 3, 2012 12:03pm
If you wanted too, you could have actually held in both of those trades on the 2nd chart and tp'd at the Daily Demand level at 1.3321.
Base 2 would have been stopped out and base 1 would have made it.

10.18:1 RR on Base 1
-1 on Base 2.

So over all 9.18:1 rr for that days trades if you felt the need to hop in on both vs waiting for a safer entry and just taking base 1.

Only problem is its easy to get shaken out of the trade if you consistently monitor it. Just trust your levels and after some time set them to break even. Just keep your eye on the prize and stay away from the what ifs. Once you plan your trade then its time to trade your plan!
  • #1,847
  • Jan 3, 2012 1:04pm Jan 3, 2012 1:04pm
Quoting anthony_tzw
Hi Zamfir, I'm fine. Thank you. How about you?

Happy New Year to everyone and wish all of you catch great pips in this year Zamfir, how is your view about those AUDUSD daily chart levels that I posted.
My view of Audusd Daily...We are going into weekly demand level. The Weekly demand level is pretty big.

I would wait and see how it reacts at this level.
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  • #1,848
  • Jan 3, 2012 2:55pm Jan 3, 2012 2:55pm
Quoting zamfir
My view of Audusd Daily...We are going into weekly demand level. The Weekly demand level is pretty big.

I would wait and see how it reacts at this level.
I'm totally disagree with your analysis Zamfir .

My thought is that we are not going in a demand, but in a supply level
I hear and I forget. I see and I remember. I do and I understand.
  • #1,849
  • Jan 3, 2012 3:14pm Jan 3, 2012 3:14pm
Quoting boubafx
I'm totally disagree with your analysis Zamfir .

My thought is that we are not going in a demand, but in a supply level
  • #1,850
  • Jan 3, 2012 3:18pm Jan 3, 2012 3:18pm
Happy New Year to all, i wish you all the best

My first trades since holidays...i am sure you guys took these too

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  • #1,851
  • Jan 3, 2012 9:36pm Jan 3, 2012 9:36pm
Quoting boubafx
I'm totally disagree with your analysis Zamfir .

My thought is that we are not going in a demand, but in a supply level
You are quite right. My mistake. I actually meant Supply , but wrote Demand.

One side of your brain is thinking supply, the other side demand. lol.

How many times does that happen
  • #1,852
  • Jan 4, 2012 12:56am Jan 4, 2012 12:56am
Quoting anthony_tzw
USD/CHF, I set my pending long order at the demand level.
My SL at 0.9314, the price go through my SL by 1pips (0.9313) and shoots up...

Hi Anthony

If this may be of some help.

One consideration would be to look at the green zone marked as a retest of the yellow zone. With this kind of scenario I will at times lower my stop to under the lower zone.

Trading this time of year can be tricky also. Many do it and are succesful.

Rufus
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Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #1,853
  • Jan 4, 2012 1:46am Jan 4, 2012 1:46am
Quoting Rufus
One consideration would be to look at the green zone marked as a retest of the yellow zone. With this kind of scenario I will at times lower my stop to under the lower zone.

Trading this time of year can be tricky also. Many do it and are succesful.
Rufus
Hi Rufus,

My first post here in the forum.

Is there any reason you do not want to extend the yellow box a bit to the left to about Dec. 20/Dec. 21 region where it later becomes swap zone? Sorry I am quite new to this S/D concepts if this question just sounds stupid.
  • #1,854
  • Jan 4, 2012 4:39am Jan 4, 2012 4:39am
Are we still in holiday mode? EU has been at this supply zone for 24 hours!

When will the markets be back to normal?
  • #1,855
  • Jan 4, 2012 5:03am Jan 4, 2012 5:03am
@ Bullzeye
I took those trades yesterday, along with a long on USDCAD.

One thing that concerned me is that those large drops in the eurusd and gbusd took place over the xmas break, when a relatively small amount of volume could cause a price move like this.
But still, if those aren't examples of a area of excess supply/demand then I don't know what is.

I have exited the eurusd trade at 1.3008 as my 1 hour chart shows a good area and possible swap level round there.
In retrospect it wasn't a great trade as I don't think it ever showed a clear 3.1 RR ratio from the supply to the demand zone.

I have exited the USCADtrade for a 3.1 RR as I entered on a short term idea-it panned out but looking at the 4 hour I don't see it as a great trade so am out with profits. No more short term charts!

I trade off 4 hour and 1 hour charts and also look at 30 min charts for intraday but no longer look at lower tfs.
If you have a strong area set on the 4 hour chart, I fail to see how watching the 5 min chart can help you make a decision on whether to take the trade or not.
Happy trading all!
  • #1,856
  • Jan 4, 2012 5:19am Jan 4, 2012 5:19am
there I was yesterday, in EU short 10 pips from the high and closed at break even......now look at it! So annoying.

Why did this happen? Why did it take so long to react? hmmm
  • #1,857
  • Jan 4, 2012 5:41am Jan 4, 2012 5:41am
Hello bootsyjam,

May I know at what price you sold EU yesterday. As the price went down, did you not move your position to BE?

I asked because I also shorted at 1.3067 yesterday. From the hourly I saw that the price could drop to a BRN 1.3000 and so TP was set right there. Unfortunately, there was a spike up today and I end up at BE.
  • #1,858
  • Jan 4, 2012 5:43am Jan 4, 2012 5:43am
@ Ultimatus
I think it's a good idea to move away from the mindset of a day trader, expecting to make profits in the London and/or US sessions each day like clockwork.
Certainly it's the case if looking at 1 hr/4 hour charts, it can take time to move. If you're shorting based on a 15 min chart then yes you can expect a quicker move, but in my experience you'll lose more than you win (but that's just me).

One of the reasons that I'm moving away from lower tfs is that there is just too much noise, even on the 1 hour chart to be honest. If you look at the 4 hour chart on the eurusd, where is your tp on the short?
I would have it at at 1.2970 (demand area+on trendline+near recent highs), but the noise on even the 1 hour chart blinded me to that fact.

I'm annoyed I exited USDCAD so early too, but then my reasons for entering were not so strong on the 4 hour.

Am still short GBUSD from 4 hour but that looks like a far stronger price move higher than eurusd as it reached that sell zone in a very steep upward move.
My tp for that trade is conservatively set at 1.5575. Again-not a good trade as the 3.1 RR wasn't really there.
  • #1,859
  • Jan 4, 2012 5:50am Jan 4, 2012 5:50am
Hi bootsyjam,

You are right about loosing the mindset of a day trader, and its exactly what I'm trying to acheive at the moment. I have been doing this a few years now and I'm slowly realising more and more that higher timeframes are the way to go. Unfortunately, I've picked up some bad 'day trader' habits that are hard to shake off, like adjusting my stops too early!

The thing is, sometimes adjusting my stop to break even like that saves me from a loss, but as you can see also stops me getting a winner, something I need to work on.

I had the 1.2970 area in for the first target as well. I like to look at m30 and 4h charts.

Cheers
  • #1,860
  • Jan 4, 2012 5:53am Jan 4, 2012 5:53am
Quoting bullzeye
Happy New Year to all, i wish you all the best

My first trades since holidays...i am sure you guys took these too

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both targets were hit...E/U now long on m30 supply
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