Slow and steady

eur aud...


seems to have thoroughly broken through the resistance line which has held for a while now.

I would wait for a rebound down to, and move up off the line and then go long...

Hello John,

Dont anticipate the movement. React on what you see happening, not what you think will happen. You entered the gold trade before having had a confirmation of a new down-swing having been started. Also, your price target is too large. Dont look for full home-runs, meaning the whole swing. Also pay attention to MAs, you put them there to obtain info off them.

Hi WTB,

Hmmm, one of my big weaknesses. I have it in my plan to wait for confirmation of the movement rather than only anticipating it, and entering based on that. I agree with you...should probably have waited for more of a downturn. I prefer having biggish limits and moving stops to b/e. But perhaps you're right, this is reaching too far...?

Thanks for the input. Its great to get commentary on my trades!!

Main thing to remember is to not try to exploit the entire swing's lenght, which is basically trying to pick tops and bottoms and which doesnt work. The trick is to try to make your pips off the middle sector of a swing. By waiting for the movement to be initiated rather than anticipating it, you make sure the swing has built already some downward inertia, which is usually visualized by Moving Averages crossing over each other, counter trendlines to break and indicators such as MACD to cross. So wait until the tech indicators (whichever you use) start telling you that the down move is confirmed and in place, and from there start drawing down trendlines and search for a short entry at the pull backs.

Once in a trade, dont abuse it and dont give in to greed. Remember, you gotta exploit the middle sector of the swing. Dont wait for the move to start getting over-extended to exit out your positions. Be conservative with your profit targets.



J.H.

Thanks JH. Wise words indeed.

It seems the gbp/jpy has broken down...so now to wait for a bounce down off the green line, or until it gets to the blue line and turns around...

Again, to take the advice above. One needs to see the turnaround first, before opening the trade !!

A question ... would you use whatever tech indicators on the same time frame, or look for MACD/MA crosses etc on shorter time frames ?

Thanks

Update on Gold trade

Stop moved to b/e

USD JPY...


Bounce off upward green trendline...support becoming resistance, and 50% fib. Confirmed 'bounce' down (or so it seems to my "objective" eyes).

Open 112.13
Stop 112.57
Limit 111.42

Closeup of short usdjpy trade...

Gold trade.


A question to you all out there...should I move my take profit up from 618 to 628. Already have stop ahead of break even, so its a risk free trade right now...

Am I being to greedy or impatient ? OR should I stick to my original limit ?

Update.


Many suggestions etc given up to now, but only 3 trades taken.

chfjpy gave a 10 pip profit (but had I stuck to the plan, would have been at least 50

gold now at breakeven, up quite a bit. Waiting for limit to be hit.

usdjpy down a bit, but still not stopped out.

usdjpy stopped out.



Remember, risk is small, and its all about probabilities. Its impossible to NOT have losing trades. On hindsight, still a trade I would have taken.

Gold looking good.

Update...

Gold is looking really good. Moved stop to 627. Thinking about moving limit further down to 615...or even 610. Banked 1500 pips - only 750 really as I use half normal risk with gold.

audusd...


hmmm.....look at this daily trendline that might do some serious bouncing. Also 50% fib hanging around there. Sort of needs gold to soar (again) as Aud is big responder to gold, or dollar to tank. Hey, anything's possible. Needs to bounce up to show reversal. Nice one to watch...wonder what so-so thinks of this ?

cheers

Which broker do you use to trade gold and what is the spread?

Thanks,
soso

Hi so-so...busy replying to your other message, but might be good for others to know about this too, so will answer this here.

I would love to one day describe my rite of passage up to this point...its been hairy !!! but suffice it to say that right now I'm trading real money but almost as a demo acc. I am not trying to make money to live off trading right now, so the broker I am using is not necessarily the one I will use when I put up serious capital and do income generating trades.

However, I am also not saying I won't use them...just getting the current context in place. I am using Oanda which, for the type of trading you and I do (4 hour/daily trends), not high risk news generated adrenalin producing stuff at all, is just fine. So there's no 'taking out stops' issues at all (NOT that I'm implying they do!), and the varied spread which does get huge at news times is also not an issue. Quiet times gives great spreads, and gold varies too. Currently 90 pip spread. Due to the big moves in gold, especially lately, and especially the way I trade it, the 90 vs 1500 move is irrelevant.

I use metatrader for graphs, and they also have gold, so no doubt some of the brokers that work via them also offer gold ?

Cheers

Ah ok, I am using Oanda too for trading. When my account really grows I'll to look at other brokers too but now I really like it.

-soso

A question for anyone out there using trendlines..

How often do you wipe out your trendlines and start again...drawing them that is...else one either has too many, or old ones that no one else is using that you're basing your trades on....mmmmmm - having just written that, I suppose that's the key...its what the big boys are doing...and I think they redraw quite often....cause what one really wants is the same trendline as the bulk of folks out there.....

Gold stop moved to 623. Limit to 615.

Gold stop moved again...620