My signature is: "Classified".
- Joined Jul 2010 | Status: Determined | 5,127 Posts
Getting rich in trading has almost nothing to do with your entry points. It has everything to do with exit points, position sizing and position management. Read the FXCM study they did 4 years ago. http://www.dailyfx.com/forex/education/trading_tips/daily_trading_lesson/2011/12/08/What_is_the_Number_One_Mistake_Forex_Traders_Make.html New traders think getting the entry right is the biggest thing...
The amonunt of orders i close is relative to the probability of price NOT exiting through the current area.
How i estimate SR is a matter of both how it looked the last time we where there AND how the PA is turning out this time.
I think you approach is smart. I agree. The thing is also that the exits are the hardest to define.
One thing: I dont EXPECT (with any high degree of probability) that price will exit the current range.
Then you may ask, what is the current range?
Well i hope the picture explains the logic.
The boxes shows that everything that goes on in there is useless info.
So, i following on that: I wouldnt NORMALLY want to place a take profit outside of the range. Because its about 50/50 chance it will turn around there. So only THAT info is not enough to trade. I need something like a 30/70 chance to score some within say the day.
If you see how i define the range, you see how i define the TPs. Safer but smaller TPs are only a small piece of the range. Bigger profits is at the ends of the range.
However, that doesnt mean i DONT trade a breakout. I do. I can SEE that other people are breakout trading. People with A LOT of doe.
My signature is: "Classified".
- Joined Jul 2010 | Status: Determined | 5,127 Posts
By the way, tomorrow i will be trading quite a lot on that demo account. At least a few hours.
Think i will start out from this kind of view tomorrow and explain from there.
Safe to say is: Preferably no trades placed within the gray zones.
Guess i will aim at +1% tomorrow, something like that.
Think i will start out from this kind of view tomorrow and explain from there.
Safe to say is: Preferably no trades placed within the gray zones.
Guess i will aim at +1% tomorrow, something like that.
My signature is: "Classified".
- | Joined Jul 2013 | Status: Member | 1,494 Posts
A trade should be based on an assumption based on facts
- | Joined Aug 2009 | Status: Member | 1,068 Posts
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered
- Joined Jul 2010 | Status: Determined | 5,127 Posts
Cleaning out the books of old crap. Im still +10% if i close open positions. 10% of 10.000.000 $ i still 1.000.000 $ for trading an account every once in a while. Leaving it for days, not even looking. And then one day do it for a couple of hours and then just leave it.
My signature is: "Classified".
- Joined Jul 2010 | Status: Determined | 5,127 Posts
"Sell" mean im gonna sell there.
My signature is: "Classified".
- Joined Jul 2010 | Status: Determined | 5,127 Posts
{quote} Thanks man ....You rock luv your philosophy and PA tips..
Im not right all the time, im not god or anything, but just watch it and see what happens. If it gets there.
If it goes down or up fast that means: IT WAS A GOOD PLACE TO GET IN! Thats why it moved that much! Ok you get your 10 pip loss in a few minutes. But thats just air, its nothing, it havent happend. Doesnt matter. Plunge the highs and lows, tip the scale, swing the winds, tip the scale. How many analogies do i need to use? First come first serve?
My signature is: "Classified".