Tuesday, January 27, 2009

Heat in the start

Not so nice trades, I would say hard ones because there was pain in the start of the trades. I was right so I made a profit, but I didn't want to take a loss if things didn't go my way. It's hard for me to judge should I stay or should I go :D when things don't go in my direction immediately. First one I shorted because gbp/jpy on third chart didn't look promising for going up. I got 0.7R on that one.
Later in eur/usd 0.9R win, I shorted because I expected that stop levels circled on 5min chart will be cleaned.

I'm not a trend trader yet. Before I was just reversal trader, now I'm also "break out in the direction of the trend" kind of trader. It would be much easier if I could trend trade but I'm not on that level yet. But for now it always was profitable to stay in my niche of competence. If I look at my new monthly target of 5R it's enough for achieving it and avoid trouble.
+16 full size pips

There were two very nice posts lately from bloggers that I read, so check them out if you missed them.

Proprietary Trader




Bro, there is nothing wrong with those trades at all. Yes for one of them you did not wait for a pullback before going short, but by the looks of price action neither would I have waited. You caught another break down and got out right where the limit buy orders were.

Also, In my opinion its not necessarily going to be easier if you become a trend trader, because on days there are no real trends its gonna suck. Instead, just try to be a price trader. Hope that makes sense. You are doing well in my eyes. Although ones own judgment is the most important.

FX said...

The problem as I see it is with leaving trade room to breathe. I did this time and it worked, but sometimes I get stuck in situation like that and give it too much room and get let's say -2R. It's tricky when it's not immediately in your direction to judge when your view is invalidated.

StockHunter said...

I agree with orion, you did good.

You are right though, it's hard to know where to stopout at in forex (at least for me it is).


Very true FX, probably the hardest thing for me know is when the trade has been invalidated.

I have somewhat started implementing in my thinking that if its not immediately profitable, its probably not going to work.

After in a trade, If I'm long and price is making lower highs, that is generally a signal that things are over. I try and combine all things at once to tell me whats going on like: If I were not in now, when would I enter and would it be long or short, Is price hitting an area of resistance or support that will be significant? Is news coming up soon that will add volatility to the market? Is the overall trend up or down?

All that crap man... its hard to be aware of it all at once, but it seems to help me. My only problem is having the discipline to follow my gut. I am right very often about my analysis, but prefer to just not act... not good.

4x For Life said...

There is nothing wrong with 16, i staid out because i saw the chop chop chop.