Caught reversal from support for a nice scalp
082509
First chart, two trades, I was concentrated and patiently waited for opportunities. Then I lost majority of profit on next trade that I jumped in, I wasn't really following market at that time. Then I had more trades, pretty much emotional. I was greedy, all trades showed some small profit even first one but I didn't take it and made losses from it. Day was break even.
082609
Late in the day I tried for reversal at 2B on eur/usd. Size was today half the size of previous days because I expected problems and bigger range trading, not just scalps. Next was eur/jpy short. There was nice probability that 134 support will be broken. It didn't played out well. At one point it was under it but it got back. I thought that lower side is then even more probable but it wasn't easy. Got in averaging trade because price retraced much and added gbb/usd short because of nearing to resistance. I expected that all will revers at that time. The most I got was b/e for that set of trades and I kept profit on first trade in eur/usd.
I don't like very much that longer term trading because I stare at screen as when I scalp and got tired and frustrated when I'm in position and it's not going my way. Also I tend to find reasons why to keep losing trade and add to it.
So last three days small profit of 18 pips ( pips are three times smaller then before the brake two months ago) or 1.3 %.
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Hey pal, just uploaded some info that I think will help you. Go to my channel and download it.
I downloaded it and watched it. My opinion is that it's option trading and not free money. It means you need market knowledge to offset transaction costs and option costs. Only thing that you are getting is opportunity to create some trading strategies more easily then in spot trading.
Also my idea for you is to try parallel demo those spread options and trading same amounts on spot market in same direction to really see what advantage do you get and what is cost differential and profit differential at the end of the day.
The cost differential is that your not getting stopped out! The profit differential is that you can LOAD UP because of the reduced risk and make more per pip SAFELY! I never said its free money, there is no such thing for us like that, we are too small. No offense, but I dont think you are realizing the potential here friend.
Example #1
go long 60k at the break of a new high, for a $6,000 account 1 loss of 10 pips is -1%, if you get stopped out and it continues to make new highs, your missing out on $6 a pip.
Example #2
go long 6 spreads for $60 or less. You have all day to see if you were right about new highs while only risking 1%. For every point you gain your making $6, and the MOST you will lose is your 1% and if you get your spreads for 10 pips each, you stand to make a maximum of $840. You CANNOT LOSE IN THE LONG RUN with proper money management...
In the money spreads follow the underlying pip for pip, you make what the underlying moves, multiplied by how many contracts you have.
I admit that I probably don't appreciate enough fact that you are not getting stopped out and if it's not working maybe it will later and you stand to lose only predetermined amount.
It would be wise for me to demo it a bit and then make judgments :D
Maybe watching a video was just too much information in short time, I need to understand it for myself.
"if you get your spreads for 10 pips each" is that realistic on a new high?
You have to predetermine your position while the spreads are still cheap. The market has to be 37-75 pips away for best pricing. it all depends on where the floors and ceilings are set for that day.
And yes of course demoing would be the best thing before judging its usefulness....
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