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The Buy Low and Sell High System, the best way to make money

  • #221
  • Dec 3, 2014 10:20am Dec 3, 2014 10:20am
Quoting farix
Nothing haven't worked today... maybe this: ? {image}
G/U had also a nice setup, see the broken low and right after it had bounced at start of today Lo open:


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  • #222
  • Dec 3, 2014 10:21am Dec 3, 2014 10:21am
I too have been clipped a few pips in this EUR/USD move, but am now
resting, watching & waiting. It is all part of the trading process.
  • #223
  • Dec 4, 2014 3:06am Dec 4, 2014 3:06am
usdchf right now
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  • #224
  • Dec 4, 2014 5:38am Dec 4, 2014 5:38am
It looks like going to heading south..Let's see
Let Market Tell You
  • #225
  • Edited 9:24am Dec 4, 2014 7:56am | Edited 9:24am
Ok so...

It's still one of the most riskious kind of trades we can attempt (trade against a strong trend, and try to pick a bottom/top).

However.. it seems that we may have a buy low.

Let's see.

Anyone with me?
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  • #226
  • Dec 4, 2014 10:06am Dec 4, 2014 10:06am
I'm in on that one too, but a little too late... about the entry....

we look for the sign (this case the exhaustion move down)

now where we enter...??? when we get support/candle goes up?? I mean.. when is the critical moment when we push "buy" or "sell" ?
  • #227
  • Dec 4, 2014 10:11am Dec 4, 2014 10:11am
Great catch on EU! I only got 2 positions. 3rd pending was down at 61.8% looks like it's not gonna get triggered.

Attached Image


Got 4 positions NU. 1 got stopped out at BE, 3 are still running.
Attached Image
Everything you can imagine, is real - Pablo Picasso
  • #228
  • Dec 4, 2014 10:26am Dec 4, 2014 10:26am
Quoting farix
I'm in on that one too, but a little too late... about the entry.... we look for the sign (this case the exhaustion move down) now where we enter...??? when we get support/candle goes up?? I mean.. when is the critical moment when we push "buy" or "sell" ?
Nobody have the exact answers to your questions, the best entry would have been during the exhaustion downspike (the one happened as soon as draghi opened his mouth), however it was soo fast (maybe a matter of seconds) that you had to have a pretty good timing (and balls) and luck to get in at the very bottom.
But ok the signal per se was always the same:

1) slow down of down-momentum (market not going down anymore, the whole day it didn't go down)
2) double bottom/exhaustion move (it was very quick!)
3) buy-low big guys start bringing price up.

The ideal time to enter was as soon as price started going up after the downspike (even better if you can buy the low spike itself), but nobody is perfect!
You see my entries are somehow shitty, i bought all the way up and the average price i have is around 1.2373 (really not low!!), but ok as long as they are below november lows i consider them to be "Low" buys.

Now we got to watch out to understand where to take the profits, the first relevant profit-taking high point is at 1.2530 (last week highs), anything above that is a bonus.
The next one is november highs (1.26), my target is at 1.2633 but i guess i may as well take profits at the first relevant high (1.2530, that would be around 160 pips for me, probably even more for you).

All we can do now is wait and hope things don't go south again (i doubt, but we never know).
  • #229
  • Dec 4, 2014 11:18am Dec 4, 2014 11:18am
Quoting tunera
{quote} Nobody have the exact answers to your questions, the best entry would have been during the exhaustion downspike (the one happened as soon as draghi opened his mouth), however it was soo fast (maybe a matter of seconds) that you had to have a pretty good timing (and balls) and luck to get in at the very bottom. But ok the signal per se was always the same: 1) slow down of down-momentum (market not going down anymore, the whole day it didn't go down) 2) double bottom/exhaustion move (it was very quick!) 3) buy-low big guys start bringing price...

As always to the point answers to ones question. Spot one.
  • #230
  • Dec 4, 2014 1:37pm Dec 4, 2014 1:37pm
Thank you for your answer tunera!

With such big movements you got to be trigger happy behind the screen all the time. I dont have the opportunity, but still.

Now as taking profits. Fortunately I made some pips, though it did went south as you said.
If this happens, what do you generally do? I could have saved +20 pips, if I had taken it on first candle down. I hoped it's just a little resistance and it will rise, instead I got stoploss ~20pips lower. But no worries. Every mistake I make is a lesson learned.

And thanks again for your answers, much appreciated!
  • #231
  • Dec 4, 2014 2:18pm Dec 4, 2014 2:18pm
Quoting farix
Thank you for your answer tunera! With such big movements you got to be trigger happy behind the screen all the time. I dont have the opportunity, but still. Now as taking profits. Fortunately I made some pips, though it did went south as you said. If this happens, what do you generally do? I could have saved +20 pips, if I had taken it on first candle down. I hoped it's just a little resistance and it will rise, instead I got stoploss ~20pips lower. But no worries. Every mistake I make is a lesson learned. And thanks again for your answers, much...
I guess you are not aware about the fundamental reasons of why today eurusd went up, and the apparent "reason" of this recent retrace from the intraday tops, let's say this is really an unpredictable and sometime crazy market, so it can apparently move in any direction at any time for any or no reasons.

We as traders must learn to deal with it, and stay cool.

As for me, to answer you question, i just try to trade the plan, as i see at the moment, the market can do two things:

1) reach the target-area
2) get back to the bottom and stop out my positions

So in the between these 2 extremes i prefer for today to just hold the line and avoid any action (no stoploss to +1, no stoploss at 20pips, no close positions manually, nothing, just wait).

We have to understand that intraday trading (open and close trades within the day, catch 20-30 pips and move on) you have to think and act fast, move stops at +1 at the right time, take profits at the right time, etc.

But on the medium-term trading (when you open a trade and close it days later) it is imperative to have a simple plan (entry, target, stoploss) and stick to it, just wait for the trade to develop.
In this kind of trading we watch the big picture so within this picture price will move up and down, and if you do anything like small stoplosses or early profit taking or stops at +1, chances are that you will just waste the trade, or like somebody said long time ago, "lose your position".
  • #232
  • Edited 2:32pm Dec 4, 2014 2:21pm | Edited 2:32pm
Quoting tunera
{quote} I guess you are not aware about the fundamental reasons of why today eurusd went up, and the apparent "reason" of this recent retrace from the intraday tops, let's say this is really an unpredictable and sometime crazy market, so it can apparently move in any direction at any time for any or no reasons. We as traders must learn to deal with it, and stay cool. As for me, to answer you question, i just try to trade the plan, as i see at the moment, the market can do two things: 1) reach the target-area 2) get back to the bottom and stop out...
About "lose your position".

http://www.tischendorf.com/2009/07/0...a-bull-market/

Edit:
from the link above:
"The reason is that a man may see straight and clearly and yet become impatient or doubtful when the market takes its time about doing as he figured it must do. That is why so many men in Wall Street, who are not at all in the sucker class, not even in the third grade, nevertheless lose money. The market does not beat them. They beat themselves, because though they have brains they cannot sit tight."
  • #233
  • Dec 4, 2014 4:18pm Dec 4, 2014 4:18pm
Tunera,

Do you focus on several pairs. I see you mention the EUR/USD, but what others are
you trading if any. Also when you are trading the EUR/USD, do you ever use gut
instincts from your previous trading experience of trading that pair along with the rules
you have stated on this thread.

After watching the EUR/USD yesterday & today The Buy Low & The Sell High Method
is proven to be a sound method, but you must use sound MM & be very aware of previous
Highs & Lows. I lost a few pips yesterday on the down move, but did pickup some extra
today.

Your views & comments are most valued.

Thank You.
__________________________________
  • #234
  • Dec 5, 2014 3:09am Dec 5, 2014 3:09am
Quoting acetrader
Tunera, Do you focus on several pairs. I see you mention the EUR/USD, but what others are you trading if any. Also when you are trading the EUR/USD, do you ever use gut instincts from your previous trading experience of trading that pair along with the rules you have stated on this thread. After watching the EUR/USD yesterday & today The Buy Low & The Sell High Method is proven to be a sound method, but you must use sound MM & be very aware of previous Highs & Lows. I lost a few pips yesterday on the down move, but did pickup some extra today. Your...
Actually eurusd is the one i prefer, as its huge liquidity (90% of fx traders do trade it) let it behave in a decent way and be respectful of certain rules (most of the time, not always).

I mostly trade eurusd, gbpusd, nzdusd, audusd, usdjpy sometime, but only 1 pair at a time, so if i'm trading eurusd i would not open trades on other pairs untill the eu trade is closed. But it's just a rule of mine

About the gut instincts, what is instinct, it's our guts (subconscious mind) telling us that the market will go up or down, without stating exactly the reasons of such view.
Now, as your guts tell you something, it is your duty as a trader to investigate the reasons of such view, and once you find them, they become part of your conscious analytical mind and not gut instinct anymore (you learnt something new).

So i like instinct but i don't follow its advice without first figure out the exact reasons behind each of them.

  • #235
  • Dec 5, 2014 3:14am Dec 5, 2014 3:14am
How writed acetrader. I must say the same. I watched few days markets and there is really some benefit in this method. Mainly in EU and GU. Next question is to choose right MM and learn how work best with that. In every way big thanks to tunera for this thread. I'm looking forward to his next posts. It's big logic in this entries. So many newcomers comming every day with new money and what they doing? They buying high and selling low.
If i will in green numbers two months in the line, then i begin live. Any opinion on that? I think two months enough. Because you must quickly learn how to control your psychic with live account, not stuck in demo one year. Because live is little bit another game.

I'm still holding one position in AU. I have target 0.2 pips under low. Do you think it's reasonable target or i should be more adventurous and move target lower? I can't babysitting that and take best price, so target is important for me.
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  • #236
  • Dec 5, 2014 3:27am Dec 5, 2014 3:27am
Quoting tunera
{quote} Actually eurusd is the one i prefer, as its huge liquidity (90% of fx traders do trade it) let it behave in a decent way and be respectful of certain rules (most of the time, not always). I mostly trade eurusd, gbpusd, nzdusd, audusd, usdjpy sometime, but only 1 pair at a time, so if i'm trading eurusd i would not open trades on other pairs untill the eu trade is closed. But it's just a rule of mine About the gut instincts, what is instinct, it's our guts (subconscious mind) telling us that the market will go up or down, without stating...

The EUR/USD is the pair I trade the most along with some of the others you mentioned. I agree about
the insinct. Thank you for sharing. I look forward to more of your post. May many pips come your way.
  • #237
  • Dec 5, 2014 3:47am Dec 5, 2014 3:47am
Quoting Robie
How writed acetrader. I must say the same. I watched few days markets and there is really some benefit in this method. Mainly in EU and GU. Next question is to choose right MM and learn how work best with that. In every way big thanks to tunera for this thread. I'm looking forward to his next posts. It's big logic in this entries. So many newcomers comming every day with new money and what they doing? They buying high and selling low. If i will in green numbers two months in the line, then i begin live. Any opinion on that? I think two months enough....

Demo no doubt has it merits, but once you are sure you know how to trade the method you chose, then
a live account is next. What Tunera is shaing is very sound when combined with sound money management.
I kill the losers quick, fast & furious & move on to the next trade. There is always another trade, so there
is no need to hold losers letting them become bigger losers. To me this thread is one of the BEST, IF NOT
THE BEST at Forex Factory, but it is slow to take hold with most new traders because most are seeking many indicators
& EA's so they move one in search of all the bright colors these will provide. I will tell you after many years trading forex
& other markets keeping it simple is the best & this information Tunera is sharing is simplicity at its best. Will you always win
with this? NO & you want always win with any other method either. The Market never beats the Traders, the Traders
beat THEMSELVES. That is enough rant from me. These are just my views & nothing more. In NO WAY is this to be considered
trading advice. I wish you the best in your trading ahead.
  • #238
  • Dec 5, 2014 4:07am Dec 5, 2014 4:07am
Look at that. Interesting chart! But guys, what do you think about trading pairs with 6 pips spread?
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  • #239
  • Dec 5, 2014 4:40am Dec 5, 2014 4:40am
Quoting Robie
Look at that. Interesting chart! But guys, what do you think about trading pairs with 6 pips spread? {image}
You should not really care about spread at all, what you should care is the adr (average daily range, i use the average daily range of the past 5 days) and the spread ratio, for example i have 3 pips of spread in gbpcad and it have an average daily range of 118 pips, so the adr/spread ratio is around 40, not one of the best, but overall i consider anything above 30 to be tradable.

Eurusd right now have an adr/spread ratio (to my spreads) of around 80, pretty good! Gbpusd 80 too.
Gold around 90.
The current adr/spread ratio of the major pairs range from 40-50 to 80-90, the higher the number, the less your trading costs are.

In the recent months the average adr/spread ratio used to be around 30, but nicely now we have some volatility back!
  • #240
  • Dec 5, 2014 9:14am Dec 5, 2014 9:14am
My eurusd trade has ended in loss, nothing big, but really a surprise (yeah i know, the trend).

I'm a little bit pissed off right now from to the eurusd action of this week, so go for a holiday, the thread is all yours for a few weeks.

Always feel free to post anything, be careful because december is always a crazy month, and take care!

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