Trading around the world

Hi Rolf, please look at my screen:
what do you thing about those two levels in yellow:

- Short: SFP - I`m wondering if it`s good entry due to time price spend on this level, I expected violent reaction
- Long: is it good level for long, does the level isn`t too week?

Hi Rolf,

Is it possible to post your blank journal to see how you keep track of all your past trades and to see your overall journal setup. Many Thanks in advance

Hi TraderRolf,
I have been reading your thread with great interest.
I congratulate you on your endeavour to share and educate other folks.I must say that as a 74 year person who has been trading for approximately 7 years I feel most envious of your lifestyleYou have the world at your feet so enjoy.!!!!!!!
Regards,
Ronald

Hello,

You mentionned you could provide more videos in the future, here are an "area" that I would like to learn more about, this is about How price is approching our Level:

From this PDF found on this thread : http://www.forexfactory.com/showthread.php?t=86429
It is explained in Page 13, the quality of a S&R:

"
If price has already undergone a significant retracement not too far away (20 or less
pips appx.) from the level we want to trade. For instance, EUR/USD is in an uptrend. You
mark a level at 1.5715. It hits 1.5700 and then retraces down to 1.5670, and then starts
coming up again, taking out 1.5700. Your chances of price then making another retracement
from 1.5715 have now declined. Look for good spacing between pullbacks, usually anywhere
from 40-60 pips on majors."

In order words:
What does it changes to our level when price have been going straight into it for 200-400 pips without retracement --> Certainly better level ?
What if price have been consolidating 10-20 pips from our Level --> Better chance to being Broken ?
What if price have got a decent retracing before reaching or level --> Better chance of being broken ?

But of course, please go step by steps with your videos whenever you fill like doing it and have enough time to do it

Hello Sandman,

I am already preparing a whole Video about trading journals and will share mine there. I don't just wanna post a pic because I think there is much more to it and I believe a good trading journal can make a losing into a profitable Trader quite fast. I am planing to have it done by next week. Please be Patient a Little more

Ewen, I would no longer consider a short a premium Setup. I think there has already been a quick short move and the time we spent hovering at this level, doesn't make it more interesting. The Long Setup Looks far better imo.

Thank you very much Ronald. I am humbled by all the positive Feedback I receive. I certainly did not expect it.

Feels good to be back in Bangkok - one of my most favorite cities in the world. After landing yesterday, we went straight to get some AMAZING streetfood. After traveling Japan, Prices in Thailand seem ridiculously low.

I just added a new Video where I analyze my GBPUSD trade and what I see for the next 2 trading days this week.



Wishing you a good trading day!

what I learned traveling asia...

Privileges no one sees

I have been traveling for the past 7 months and in that time I have been to countries such as Cambodia, Myanmar and Laos where, according to western standards, people are considered less wealthy or poor. But at the same time, the majority of the local people in these countries are the most happy and grateful people that I have ever met anywhere in the world.

It is inspiring to see that, people living such ‘simple’ lifes, far away from the buzz and, in the eyes of Western people, high life standards are so much more happy than the average European or American.
I often come to the conclusion that it is the ‘living in the now’ thinking and the general gratefulness for the, seemingly, little things that makes people who seem to have nothing (in a material sense) so happy.

‘We’ are living such a privileged life, having all the advantages of the modern world that make life so comfortable and easy for us. 24/7 we can just hop into our car, turn on the AC and drive to the next close by grocery store, choose from a vast variety of foods that have been flown around the whole world just so that we don’t miss out on anything.
We can walk in the streets without the danger of getting shot and we can send our children to schools and universities that offer them a great education. They don’t have to work in the fields or sell stuff in the streets so that we might be able to have just enough food to make to the next day.

When we are sick we can chose from a variety of highly educated doctors and take the newest medicine. We even have the freetime to choose hobbies and go to the movies, the theater or enjoy a night in a fancy restaurant with our friends and family. We have the freedom to choose the job we do, the country we live in and the way we live our lifes.

However, when you walk in the streets or get into the subway, people look depressed and talk negatively 90% of the time. We should pause a minute every now and then to really observe the amazing privileges and possibilities that we have and should not take then for granted. Billions don’t have what you have and would do everything to exchange places with you. Be grateful!

Hey Rolf..nice to see your thread..i have a simple question for u...

What is the difference between Supply/Demand and Support/Ressistant

Thx 4 the asnwer

What I do if when I have a trading capital of EUR 100'000, I would only put 20'000 EUR on my trading account

Risking 100'000 of trading capital --> 1% risk per trade = 1'000 per trade

I would then risk 5% on my trading account --> 1'000 per trade

So whenever I approach low on my trading account I can refund...
and get some Juicy 0.00001% on my traditional bank account where my 80K are left sleeping hahaha
and it would avoid some trouble with my broker's bank as I wouldnt trust them as much as my traditional swiss bank.

Hi Einswaltz, thank you and thank you for subscribing to my thread!

The concepts of S&R and S&D are different from each other, however, often you find both fall into the same or close by areas which makes a combination of both a very interesting way of trading.
In a nutshell, you will find good S&D areas at the beginning of a strong move. So, if demand exceeds supply, you will find a bullish move. When price then comes back to this demand level, and if you identified a strong demand level which is defined by a variety of criteria, you will have unfilled orders left and when these orders get filled, price moves up again. As always, there is more much to this and it involves a lot of different criteria and signals which separate a good S&D level from a bad S&D level. But I hope you get the idea.

The concept of S&R is pretty basic. Where price bounces up from a level, you have a support level. Where price bounces back down, you will have a resistance level. This is the typical way of looking at levels.

The attached screenshot show some Demand levels on the Cable lately

Thx for the very quick reply..

Can u please elaborate more step by step about how you take a trade?

-Time frame?

-Trend line?

-do you need a confirmation once the price come to your level?

-What to do if the S/D area is located near a S/R level?

Thanks a lot for the answers really appreciate it..

After numerous tries, I managed to finish this video on the problems of trading a small account. Many people messaged me that I am wrong about the difficulties of trading a small account after writing the article a few weeks back. This time, I took a mathematical and statistical approach to get my message across and illustrate why trading a small account is hard and a great reason why so many people fail.



have a good day everyone!

I often get mails where people ask me who many trades I have per week. When I tell them that, on average, I have 3-4 trades and there are weeks where I only have 1 or even not a single trade, they give me that weird look.

But when I ask them in return how many trades they have per week AND on how many of these trades they violated their rules and jumped in prematurely just to see that they were wrong again, the conversation usually stops.

If you have the patience to wait for days without taking a trade, just to wait for this single setup that matches your entry criteria, you are on the right track. Being a trader does not mean that you HAVE TO trade. With every trade you are risking money and if you want to trade for a living you have to take it serious. When you have to tell your spouse that you had a losing streak and lost a couple of hundred (tousand) bucks just because you were jumping the gun, you might be in real trouble. Plus, you are not trading at this point in time, you are gambling.

Both, Kiwi and Aussie hat some (almost) textbook setups. Aussie hitting a supply zone, whole Kiwi testing previous resistance. On both trades, my main targets have been hit! Taking profits at the first problem area these days is key! Don't be greedy!

Very nice stuff TraderRolf. I have already got many good things from this thread in just a week.
My question is about playing supply and demand areas like you did in Aussie today, do you look for some type of PA on lower time frames or you touch trade on these areas? Thanks in advance for your answer

Hey Zohaib,

thanks for the feedback. Iam so happy to hear that people actually find this thread of value and helpful.

The way I play the sup&dem zones depend on the kind of setup. Usually I trade them with basic touch trades, however, there are times when I require a price-action confirmation. Always depending on the setup.

Nice. I'm in the Aussie trade as well, but my pending order was set a little lower so I entered on the first peak to the left of your entry. Price retraced on me a little, but my stop was sufficient as to let me stay in the trade. Up until US news this morning it was travelling nice down.

Hi,
I just made this short video on how to find take profit areas for your trades. Therefore, I took my Aussie and Kiwi trades from today to show you how I managed them as I got quite a lot of questions how to manage my trades

Have a good weekend all.

The attached learning curve is the one most traders, including me, go through when they enter the world of trading. And I started out just like this as well, riding the learnign curve up and down for quite a while, losing money consistenty.

After I discovered fx I went looking for a system and eventually found one that offered great returns without any effort. I signed up, paid some money and after studying hard for one year I could not find any money so I quit and started looking for a new system. I found another one that consisted of 3 indicators, 4 different MAs, Pivots and Bollinger Bands - it was sometimes so hard to see the candles but for me it seemed that the more tools I use, the easier it should be to find a 'good' trade and avoid the 'bad ones'. Guess what, I did not make any money and kept losing. After leaving this system, I started studying fundamentals and went to higher timeframes to avoid the stress and the noise on the low timeframes. Luckily, I did not blow up any accounts but I kept losing money and, in hindsight, it was pure luck that I did not lose much more than I did.

It seemed to me that trading is not the get-rich-quick way that I thought it would be. I quit fx completely for almost 1 year before I dove back in. This time, after talking to a pro trader that I met and became friends with, I abandoned all the indicators and MAs and just started studying price action and horizontal support&resistance. My trading improved significantly but I was still only trading around Break-even. My majors in university by then were quantitive finance and statistics, and studying these things at that specific time was the best that could have happened. I quickly realized that trading is all about statistics and risk-management. I started playing around with different risk-models and crunching numbers. The risk-management that I developed for my own trading by then helped me, finally, to make the jump from a break-even trader to making money consistently and being able to live off trading.

What I want to say is, and you might have heared it hundreds of times already, trading is not solely about entries and that special system with a 85% winrate. No trading system alone can make you profitable. However, you need to have a way of identifying a setup that, together with a tested risk-management model, will give you an edge over the long term. For this it is important that you chose one trading approach, study it rigorously and don't alter your system or jump to another one after having 5 or 10 or 20 losing trades. Any trading system can make you money, if you know how to develop your edge. But jumping from system to system will catapult you back to the beginning of your learning curve.

As boring as it might sound, trading is all about numbers, probabilities, and risk management. Trading should be a 'boring' and repetitive task. You find and study your 'setup' and day in and day out you just look at your instruments, waiting until you see the exact same pattern, then you apply your money- and risk-management. Day after you, you stare at the screen, trading pattern after pattern, doing the exact same things over and over again. You don't have any influence on what is going to happen, but you know that over 100, 200 or 1000 trades, you will end up having more money than when you started.

Wishing you all a great weekend!

So true and amazing... Happiness, being depressed, unhappy, and so on is only in our heads. I live in central europe I see so many unhappy people. To be hones, I was one of them. I saw it is the only one approach to the life and therefore the correct one. Then I moved to another country and saw very different apporach to life. And made me think about it a lot. Maybe we can choose if we are happy or not. I started to work hard, to re-programm my mind. It took so much time and still there is so much room to improve.
People decided to focus on everything bad what happens and don't care about good things. Our standard is being perfect and things and people which don't meet our standard are bad. The problem is that nothing is perfect for people. We decided to be unhappy. There are many people who started to realize that something is wrong with that kind of thinking and a life approach.

I'm glad you brought this topic to us, traders. Many of us achieve income but it doesn't bring happiness to our lives. People see money and what they can buy for it. New car, better car, bigger house and so on. Some people realize it doesn't bring hapiness at all. When I started to trade my dream was to buy Aston Martin, go to Spain and buy an amazing house. I'll maybe do it one day but this kind of thinking was very wrong. My new dream is to enjoy my life, enjoy every second I spent with my family, girlfriend, friends, colleagues. It brought real happiness to my life. It wasn't money, good trading results, job, moving to another country or anything like that.

It makes me happy you realized it as well Rolf. I hope it makes you a happy person who enjoy every single second of life. And for all you guys: Trading can make you feel freedom and hapiness, but you will have to change your thinking and enjoy it. Because it can make you really unhappy as well if your mind is bad-programmed.

I wish you the best of luck.

Adam