B.S. Trading with Kenneth Lee | Page 95 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

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

Attachments: B.S. Trading with Kenneth Lee
Exit Attachments

B.S. Trading with Kenneth Lee

  • #1,881
  • Jan 4, 2012 9:45am Jan 4, 2012 9:45am
boubafx,

I know what you mean & I agree. I have heard that all of my trading career, but at the same time I understand where bootsyjam is coming from. For me I look at all time frames from monthly - 5M & try to see if it all makes sense to me in accordance with what trade direction I am considering. Kenneth sums it ups quite well with his post #1880. Does everything line up in one direction?

I mean NO disrespect to anyone by my views, but trading the lower tf's from 1H-15M just works better for me, but the higher time frames are always taken into consideration before I trade.

Noise to one trader maybe direction to another. Its all about what works for each trader.

Happy New Year to all & may the pips rain down on everyones account this year.
  • #1,882
  • Jan 4, 2012 9:57am Jan 4, 2012 9:57am
Stopped out of EURUSD long posted earlier. Am ok with that, exited eurusd short too fast, should have stuck to my guns and my 4hr chart levels for profit taking but understand my erroneous assumptions (I looked at shorter tfs) so I (hopefully) have learned!!

Thanks for your explanation Kenneth, and your feedback too acetrader. A lot of people can trade those shorter tfs well, I just know that I can't, so I'll let you fellas tell everyone how you do it because I know I can't

EDIT Have decided to sit back and wait r.e. EURUSD. While my entry earlier was at a fresh demand level, the current price at the 1.2900 level has been hit a few times, and as I understand it we only look for first touches as they have a higher success rate. I think I'm correct on my analysis but does anyone else have an opinion on that?
  • #1,883
  • Jan 4, 2012 10:22am Jan 4, 2012 10:22am
Quoting acetrader
boubafx,

I know what you mean & I agree. I have heard that all of my trading career, but at the same time I understand where bootsyjam is coming from. For me I look at all time frames from monthly - 5M & try to see if it all makes sense to me in accordance with what trade direction I am considering. Kenneth sums it ups quite well with his post #1880. Does everything line up in one direction?

I mean NO disrespect to anyone by my views, but trading the lower tf's from 1H-15M just works better for me, but the higher time frames are always taken...
Yes, acetrader.

I just say that for a currency with lots of liquidity the chart look the same.

-If you trade the H4 , you can use H1, M15 for LTF analysis and Daily/weekly for HTF analysis.

-If you trade the M5, you can use the M1/30second chart for LTF analysis and M30/H4 for HTF analysis.

I don't see the difference in the M5 and H4 trading, you can use HTF and LTF for your analysis in both.

The problem is the spread, which eat a big part of your profit and you must tighten your stop to have a decent profit and RR.

When i began tading, i always heard: stick with the higher TF in order to learn and go at lower timeframe when you will be profitable on daily and H4.

In my point of view it's a mistake to advice higher TF to the newbies

On H4 the setup appears very not often, you learn faster on M5 bcs more setup. You learn to recognise the setup faster.

yes, you made lots of mistakes and loss trades, yes the spread kill your profit, , but you learn to feel the market, you learn to put the stop and the TP at the best aera faster than on a higher TF.

Especially, when you are a newbie, you are impatient, and you want to have setups bcs you want to trade.

With HTF and her little setup appearance often you finally have not the patience to wait the higher probability setup, and you tend to take weaker setup.

In addition, when you are newbie, it's difficult to manage your emotions especially greed and fear, and often as the trade make lots of time to go to the TP, you tend to cut the winner too fast, bcs of the fear.

With M5, you are more patient to wait for A+ setup, bcs they appear more often, and you know that each day they are severals setups and you will be able to trade each day.

When you have your entry on M5, the trade go often fastly to the stop or the TP, and you are less dominate by the fear and the greed, bcs the time in the trade is very short more often.

Emotions are very hard to master, we all must learn to dominate fear and greed. And imho it's easier on m5 where you are just a few minutes in a trade than in a H4 trade where you are in the trade since severals hours and sometime with stomach pain.

Often i heard that emotions is 50% (and sometimes more) of the success in trading. Personally H4 fight my emotions and especially my fear very hard.

it's just my point of view and as i feel it, i'm not saying i'm right.

Each must stick whith what suit him.

There are no right or wrong answer.
I hear and I forget. I see and I remember. I do and I understand.
  • #1,884
  • Jan 4, 2012 10:34am Jan 4, 2012 10:34am
Quote
Especially, when you are a newbie, you are impatient, and you want to have setups bcs you want to trade.

With HTF and her little setup appearance often you finally have not the patience to wait the higher probability setup, and you tend to take weaker setup.

In addition, when you are newbie, it's difficult to manage your emotions especially greed and fear, and often as the trade make lots of time to go to the TP, you tend to cut the winner too fast, bcs of the fear.

....and that is why 99% of noobies die in forex.

Sorry to say ,but that is the truth.
  • #1,885
  • Jan 4, 2012 10:50am Jan 4, 2012 10:50am
IMHO higher time frames in general provide more reliable signals and offer newbies more time to analyze. Trading on 1 min, 5 min is basically scalping and I know few who are able to turn consistent profits trading exclusively such time frames. I do know one individual who trading these time frames but even he is reverting to higher time frame S/D style trading because of stress associated with trading LTF. For those who like LTF check out Al Brooks. He trades off the 5 min charts and offers amazing analysis in his books. But I warn you they are a tedious read but offer a great deal of knowledge and wisdom.

I use S/D levels in combo with BB bands and MACD to identify the trend and pretty much trade with the daily trend. I enter on the 1 hour chart and I am looking for 100+ pip trades. For me trading against the daily trend results in more stop outs.

Attached is my first trade of the year using my method. On daily TF MACD is below zero line. I wait for 1 hour MACD to retrace. In this case it did so and PA hit a supply zone. But I wait for confirmation by the MACD turning red. I then enter on the break of the 1 hour candle to the downside. Yeah I know indicators and such. But they help me with confiramation. Green hashed line was entry and red hashed line was exit.

Good luck, Happy New Year everyone!
Attached Image (click to enlarge)
Click to Enlarge Name: eu2012.gif Size: 25 KB
  • #1,886
  • Jan 4, 2012 11:05am Jan 4, 2012 11:05am
Oz trades
Attached Image (click to enlarge)
Click to Enlarge Name: chart 175.JPG Size: 266 KB
Good Trading To All ; Ken Lee
  • #1,887
  • Jan 4, 2012 11:10am Jan 4, 2012 11:10am
I feel OZ is going higher but was happy with the gains and now I can go do something else.
Good Trading To All ; Ken Lee
  • #1,888
  • Jan 4, 2012 3:23pm Jan 4, 2012 3:23pm
Hoping for a second bounce on NSDUSD.
First time uploading image , so go easy on me.
Attached Image (click to enlarge)
Click to Enlarge Name: nsdusd.jpg Size: 262 KB
  • #1,889
  • Jan 4, 2012 6:32pm Jan 4, 2012 6:32pm
Quoting Cun
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.
Sorry so late getting back to you. I have been out of town working.

You are correct you can enclose the swap you were speaking of and I usually do this. It will give you a more precise location for where your stop should be placed.

Positions like the one we are discussing I do not normally set a pending order on as it had seen a lot of activity there. But at times I will set what I call a "semi pending" Where I set the order and move on to other pairs to look for other potentials. Then check on it occasionally to see how all is doing. Usually if I leave the computer I will reevaluate whether or not to leave the pending on. More of a hands on pending.

Great question and first post "ta boot"
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #1,890
  • Jan 4, 2012 10:08pm Jan 4, 2012 10:08pm
Hi guys,

Here you have a 5mins EU chart.

I have selected the S/D i see... which one would you choose for a short trade ?
The first and the third one (starting from the top) are R-B-R the 2nd one isnt.. would you give more importance to the 1st and 3rd to it due to this ?

The orange one isn't valid as its not fresh anymore.

Thanks !
Attached Image (click to enlarge)
Click to Enlarge Name: eusd5mins.jpg Size: 57 KB
Trade Smart
  • #1,891
  • Jan 5, 2012 12:17am Jan 5, 2012 12:17am
Quoting iak
awesome mate! are the blue areas on your chart just areas you have filled in yourself or is this a indie of sort?
iak,

Those line is manually draw by myself.
Previously i used indicator to draw but i found not so accurate. or maybe someone have created good indicator maybe can share here.

Attached others trades close yesterday.
I bring my SL to trailing after +40pips unfortunately hit SL too early so out with small profit only. But still better than loss...

Maybe Zamfir can comment on how to set SL on these trade.
Attached Image
Attached Image
  • #1,892
  • Jan 5, 2012 2:06am Jan 5, 2012 2:06am
Quoting Rufus
Positions like the one we are discussing I do not normally set a pending order on as it had seen a lot of activity there. But at times I will set what I call a "semi pending" Where I set the order and move on to other pairs to look for other potentials. Then check on it occasionally to see how all is doing. Usually if I leave the computer I will reevaluate whether or not to leave the pending on. More of a hands on pending.
Thanks for the clear explanation, Rufus.

May I ask how far from the current candle do you usually look to the left? In MT4 I often find myself having to go to the chart's property and tick the "Offline chart" box so it does not keep moving back to the current candle's position. This is of course not convenient and sometimes I forgot to turn it back online. Do you think I am going too far with this or is there an easier way of doing this? Thanks again for this newb question.
  • #1,893
  • Jan 5, 2012 3:28am Jan 5, 2012 3:28am
Osman,

All of those levels are offering short trade opportunities. Lower highs & lower lows are what I am seeing. They look good to me. Clear trend in place & progressing along.
________________________
  • #1,894
  • Jan 5, 2012 3:31am Jan 5, 2012 3:31am
Quoting Android38
iak,

Those line is manually draw by myself.
Previously i used indicator to draw but i found not so accurate. or maybe someone have created good indicator maybe can share here.

Attached others trades close yesterday.
I bring my SL to trailing after +40pips unfortunately hit SL too early so out with small profit only. But still better than loss...

Maybe Zamfir can comment on how to set SL on these trade.
Attachment Attachment
When you trade S/D on 4H or higher TF. you know the SL is going tobe the range from 50-100. So what i generally do is I have reduced my leverage to 1:100 from 1:500 and i reduce the lots. This way i find i comfortable to set SL on a 4H chart.

Now, most people trade with high leverage 1:400 or more. I guess you will have to keep lot size to a minimum or zoom in smaller TF for taking smaller movement when we enter into higher S/D level.

There is just no way to risk just 20-30 pips on a 4H chart. Most of the time you will get the SL hit.

Hence first decide what time TF and how you are going to trade.
What will be your leverage and lot size?.

In short, build a plan and MM should be part of it with your targets.

Everyone's plan will be different.

Good luck!!
  • #1,895
  • Jan 5, 2012 3:36am Jan 5, 2012 3:36am
Quoting pickinpips
Hoping for a second bounce on NSDUSD.
First time uploading image , so go easy on me.
Hey pickinpips
If you read Kenneth's booklet again you'll see that the best trades occur on the first hit of those areas you have highlighted. As Sam Seiden explained, it's like having a visual stack of orders next to you-a lot of those will have been used up on the first foray into those levels. The second reaction won't be as strong as the sell orders have already been used, and by tge third time it reaches there it will normally bust through.
So to increase your chances, only take that first return to the sell zone you indicated. If anyone sees it differently then please correct me-I'm no expert.
  • #1,896
  • Jan 5, 2012 3:42am Jan 5, 2012 3:42am
Here's what I'm looking at-USCHF 4 hour chart.
Attached Image (click to enlarge)
Click to Enlarge Name: uschf supply.gif Size: 16 KB
  • #1,897
  • Jan 5, 2012 3:42am Jan 5, 2012 3:42am
Osman,

On the chart you posted I did join in that short from the third level you have marked, but decided to close the trade at just under the fourth level as I had to leave the screen for the remainder of the day & did not want to leave the trade running. As I usually do, I tp too soon, but still made a few pips. I was not in the trade for the second touch of the fourth level which offered another good short trade. Only five candles in that touch & a quick move down. The short term trader in me just will not allow me to hold a trade long enough to catch the big moves, but doing ok anyway.

Just thought I would share that with you for what its worth. Tks for posting the chart & good trades to you in 2012 & beyond.

_________________________
  • #1,898
  • Jan 5, 2012 3:49am Jan 5, 2012 3:49am
bootsyjam,

That is spot on & everyone should adhere to that as it will keep them out of trouble. Tks for the reminder.
  • #1,899
  • Jan 5, 2012 4:58am Jan 5, 2012 4:58am
Quoting zamfir
When you trade S/D on 4H or higher TF. you know the SL is going tobe the range from 50-100. So what i generally do is I have reduced my leverage to 1:100 from 1:500 and i reduce the lots. This way i find i comfortable to set SL on a 4H chart.

Now, most people trade with high leverage 1:400 or more. I guess you will have to keep lot size to a minimum or zoom in smaller TF for taking smaller movement when we enter into higher S/D level.

There is just no way to risk just 20-30 pips on a 4H chart. Most of the time you will get the SL hit.

Hence...
Zamfir,

Thanks for reply.

Actually those trades i have put my SL 100pips each.
After profit in 40pips i will bring my SL to BE.
SL get hit after BE.
Maybe need to set more profit before SL to BE.

Do you use BE after profit?
  • #1,900
  • Jan 5, 2012 5:32am Jan 5, 2012 5:32am
Quoting Android38
Zamfir,

Thanks for reply.

Actually those trades i have put my SL 100pips each.
After profit in 40pips i will bring my SL to BE.
SL get hit after BE.
Maybe need to set more profit before SL to BE.

Do you use BE after profit?
you are talking about Trailing SL. I generally don't use trailing SL , for exactly this reason.you don't know how much the price will move against you. Even 50 pips is not good enough on 4H. Just let it run to your target.
you still have plenty of time to react if you want to close it.
3 traders viewing now