Here are some problems, which was for me difficult. And I learned in many months.
Maybe help to someone else.
1) Always watch News before trading
I often sell or buy any trade without see news on ForexFactory.com. Then very often happen, that I open trade 5 minutes before news.
Then I was very wonder, "what it happend"? :-)
2) No trades before London
Very often I traded many pairs before London open. Accumulated profits in 2 hours...
Then London open. Profits are very quickly gone (in 5 minutes). Very often in Stop Losses. Very often go market to my entry, and then go very quickly in my direction.
I decided, that it is better wait for London open.
3) First analyse, then wait and then maybe trade
I do very long time this bad thing: Run computer, run MT4, immedietely in one minute open some trades :-)
Without analysis, early morning, when market was sleep, and so on.
This is absolutely bad thing. It was long time, than I understood, that it is terrible bad mistake.
I know now, that it is necessary run MT4, analyse (I use Trend Lines), then wait after London open (I am from Europe). Then I will see, if market is tired, fresh, slow, fast, show direction, etc.
4) I started write my "feeling diary" (not trading diary)
Before 12 weeks I started write my "feeling diary". There is always about trading, my tips, suggestions, whatever about my feelings, resolutions, conclusions and so on. Very interesting thing. I recommend it for everyone.
5) I started write my trading diary
Here. This thread is one part of my tading diary.
6) Trading only in main time, not in holidays, or low liquidity
It is important. In holidays (bank holidays, US holidays, summer holidays, night) is not good trading. Low liquidity. Market go only with small retails traders and only a few banks. They have not big capital for big movements.
Very often is price in narrow price channels (20 pips). Or weird spikes and unexpected moves.
7) Less is more
I have problem (even today) not watch on matrix 30 pairs :-)
Very often I want every pips for me. It is very danger. Then I trade almost all pairs, which are moving. Without analysis, impulsive... many SL's in row. Finish: account KO.
It is better select pairs which are the best setups. Wait, and then trade. In conclusion I am more comfortable and even more profits.
8) Every day do same things
Do it all what I write here properly every day. Automated this. After time is it for brain easy do this things, without hard thinking.
It must be naturally for me. Like eating, breathing, sports...
Conclusion for me is:
- Open ForexFactory.com, show News. I watch only red news for my pairs.
- Open MT4. It is ok when it is before London open. Analyse my favorite pairs.
- Choose 2 or 3 pairs for day, which are promised.
- Wait for right entry (obvious some hours).
- Wait for right exit.
- Every day do same things
- Not allowed for me: finding millions trading setups on 100 currency pairs, finding holy grails, special indicators, EA's, etc.
This conclusion takes me long time. It was for me very hard :-)
How I find interesting situations? I use "Black holes theory".
-> Black hole in space: A black hole in space is a geometrically defined region of spacetime exhibiting with strong gravitional effects. Nothing, including particles and electromagnetic radiation such as light can not possible escape from this.
-> Black hole in trading: Black hole on chart are places, where price drop very quickly with very high probability. We see clear direction of price, big movements = quick profit and clear targets, clear SL. Easy for trading. Even for beginners. It is important learn find this "Black holes" on charts.
Benefits:
- Easy determine direction of trend.
- Easy view TP and SL.
- Fast movements.
- Very reliable (depend on timeframe -> higher = more respectable = view over the world).
- Less stressful for trading.
- Faster profits.
- Even in days with low liquidity is very high probability, that price will go "better", than on other pairs in range without "hole".
- We may see holes on some reliable patterns, or places, which I want see in future here.
- Hole is for me opportunity for price movement more than 100 pips. Less is good, if I have not able find any better opportunity :-)
- Black holes are so important for everyone. For scalpers, short and long term traders. This places giving chance for nice movements. This view all world. There are many money. I see them, You see them, retails traders see them (me, You), traders in banks, funds = easy pips. This is reason, why price go fast to this holes.
Disadvantages:
- Not always are interesting opportunities on higher TF's. But do not worry. We have more than 50 pairs (within exotic). Obvious exist in one day one interesting opportunity.
- Need some experiences with charts.
- Need some patience.
Pair: GBPJPY Potential (Black hole): 170 pips Why enter: Double top on H1. Candle and D1 are in same direction (down). Bigger candles, fast moving. But late enter - before London I trade very rare. GBPUSD, USDJPY in same direction (sell). Why exit: Late enter. Almost by lower TrendLine. Very small RRR on lower timeframe. Exit if price change direction. Conclusion: This was bad trade. For small amount of pips. Monday = without news, tired... Bad timing. Wait for another better trade late in the day. Impulsive trade = very bad. Need wait for right Trend Line! Profit: + 10 pips
Pair: AUDCHF Potential (Black hole): On H4 80 pips Why enter: Price channel on D1. H4 and D1 dpwn direction. But late enter - before London I trade very rare. GBPUSD, USDJPY in same direction (sell). Why exit: Late enter. Almost by lower TrendLine. Very small RRR on lower timeframe. Exit if price change direction. Conclusion: This was bad trade. For small amount of pips. Monday = without news, tired... Bad timing. It is very important enter on right setups, not late. Wait for another better trade late in the day. Impulsive trade = very bad. Need wait for right Trend Line! Profit: - 8 pips
