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Question about trading plan

  • #1
  • First Post: May 10, 2012 10:20pm May 10, 2012 10:20pm
Hi,

I want to hear from your experience. What will you do if price action not like your plan ? You will close your position or still open it ?

Let me give example:

Yesterday i opened a short E/U 1.2939 after i see a high and low-high. My plan yesterday is price may touch 1.2970-1.2972 support zone (my own view) and fall back, but it must have high-low high to enter short. You can see in my chart below. I entered short with sl 1.2980 and tp 1.2880.

After that, price moved down a bit and up, but my sl had not been hit yet (1.2978) and now down to 1.292x.

I closed my order with +15 pips.

Of course, my SL haven't been hit, but price moving is not like my plan.

Should i close my order or let it run untill it hit my tp ?

I'm also a daytrader, i do not like to hold my order more than 1 day.

Sorry my bad english.
Attached Image
Keep Simple...!
  • #2
  • May 12, 2012 5:26am May 12, 2012 5:26am
anyone pls???
Keep Simple...!
  • #3
  • May 12, 2012 7:37am May 12, 2012 7:37am
Good day kotlt, correct me if I misunderstood something please, you went out when price action was not the way it should have looked like but price did get to your desired TP right?, that might have been a good decision, the more experience you get, the more you know what to expect from price. I myself was told when I was starting in the Forex business to respect my initial plan and let the market decide... so you may do well doing that same thing as I did, place your SL and your TP, let the market go its way and learn from the results first, do not go out over anxiety, make a hundred trades and then analyze them, you would be surprised by all you learn from yourself if you record all your trades.
You may feel comfortable later to stop a running trade before it gets to the SL or TP levels but that will come with experience, this is what I did, hope it helps.
  • #4
  • May 12, 2012 4:13pm May 12, 2012 4:13pm
If you can't follow your plan, then you don't have a plan in the first place.

You can't control what price can do, but you can control only your own actions. Study more & work on your plan.
It never gets easier, you just get better
  • #5
  • May 14, 2012 10:27am May 14, 2012 10:27am
I am having issues with to. I am putting a plan together for each trade, but i either let it run to hit my SL or cut it short of my TP!

I can see this is a floor in my plan but dont know how to alter it.

Reduce TP or sitck to initial plan and learn from it all?
  • #6
  • May 14, 2012 6:44pm May 14, 2012 6:44pm
2nanycharts: Fear is common to all traders; we all started doing the same thing... Letting your losses run and cutting your winners short (the opposite of what you want), fear stops the trader from doing the best thing for him and his interests, a mentor of mine told me once to start by practicing execution, you are right in what you said last, plan your trade then execute it without a doubt, let price do its thing and reach the SL or the TP, at first do not rethink the strategy, keep firm and learn... It surely will strengthen your discipline and help build confidence hence diminishing fear, yet again that is only my opinion...
  • #7
  • May 15, 2012 2:16am May 15, 2012 2:16am
Quoting Eric D
2nanycharts: let price do its thing and reach the SL or the TP, at first do not rethink the strategy, keep firm and learn... It surely will strengthen your discipline and help build confidence hence diminishing fear, yet again that is only my opinion...
pretty much this.
Stick to your plan. Why did you close your trade at +15pips ? Did it have a 15pips TP ? If not, you did not follow your rules. If you won't follow your system, you don't believe in your system. If you don't believe in your system, you start doubting yourself. And from here it goes downhill.
Twitter: @forexpokerpro
  • #8
  • May 19, 2012 2:37am May 19, 2012 2:37am
Thank you guys for your help and advise, many many thank to you .


Quote
2nanycharts: Fear is common to all traders; we all started doing the same thing... Letting your losses run and cutting your winners short (the opposite of what you want), fear stops the trader from doing the best thing for him and his interests, a mentor of mine told me once to start by practicing execution, you are right in what you said last, plan your trade then execute it without a doubt, let price do its thing and reach the SL or the TP, at first do not rethink the strategy, keep firm and learn... It surely will strengthen your...
I will always remember it in my head
Keep Simple...!
  • #9
  • May 19, 2012 4:36pm May 19, 2012 4:36pm
Quoting kotlt
Thank you guys for your help and advise, many many thank to you .



I will always remember it in my head
in order to also do this, you have to know how a certain currency behaves. you cannot have a mechanical system and apply it to all equities. It will not work the same on all equities. You have to know how that particular equity beahaves, study it's price action
Twitter: @forexpokerpro
  • #10
  • May 20, 2012 9:15am May 20, 2012 9:15am
"What would you do if price action does not like your plan ?"

Price action is not human, it does not care what you want or wish.

And you must follow your plan.

If according to your plan price must have high-low high to enter short, but it does not happen, then your trade is failed.

Accept it and move to another trade.

So close the order.

Wishful thinking will ruin you.

How long you would wait until it hit your tp ?

Week, Month?

If you are right, you are right fast.
If trade failed, you were wrong or your trading strategy is bad or it was affected by fundamental events etc.

Question is on how many trades did you backtest your strategy?
Backtest it in demo.
If it fails to often, make other trading strategy. Better.
  • #11
  • Last Post: May 26, 2012 3:03am May 26, 2012 3:03am
If i were you, i will do the same thing as well, close the trade and move on, if it is not in my plan. Because if i have a strategy, i must follow it strictly. When i see something is not right, for example, the candle pattern is not according to plan, i will close my trades immediately.

I believe in one rule, there are unlimited chances in forex trading, but i have very limited capital. haha...but sometimes emotion (greed) kill me!!!

Jessie
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