Am I wasting my time?

[mEmmerrr]

Sup folks,

I am here looking for advice on day trading, Ive been working hard at it and am becoming bogged down and at a bit of a cross roads.

I am not exactly an experienced trader, but have been trading my live account for small amounts of money (dont really rate using demo accounts) for about 4 or 5 months and am really struggling to be consistently profitable, even though I think I have a good knowledge of trendline analysis and price patterns.

Currently my plan is trading the 2 min using "price action", but my rules say that I will only take a trade if the 5 min slow stochastics is sloping in the right direction. In terms of profits/losses, I look to lock in +8 tick profit as soon as possible, and try to make a stop loss thats fits with the charts but is around this value, but the candles are more important than a numerical stop.
My overall goal for trading (goal for the next few months at least) is to CONSISTENTLY be able to turn over +20 points a day, and this is on the FTSE/Dax futures. I know this should be very achievable, but I am struggling.

I am at uni, so am constantly in and out all day and this is what made me want to trade short term, because the idea of being able to sit down, see what has been happening and what major levels are in play, and then trade accordingly and then dissapear an hour later.

My major problem in becoming profitable is without a doubt the psychology, if I miss a big move then I either panic and jump in at a bad time, or end up taking my next trade at a non-perfect time, in fear of missing another big move I guess.

Now, my questions I would appreciate any input on:

1) For someone who isnt massivly experienced, is trading these time frames destined to fail? I like to idea of shorter time frames, as in a standard 10 min bar may be hidden a perfect setup on the 2 min, and I feel that trading this may miss lots of opportunities. When I look back over a days price action, there appears to be reasonably sparce price action setups on the 10min. But also there is more noise.
Also, I think that 20 points should be more easily achieved on a small scale, because 10 minute candles cover too much ground and are more for big moves?

2) Is multiple time frames a waste of time? And in particular, the idea of using a higher time frame stochastic, as a filter?

3) Is the idea of locking in a particular numerical profit when its availble a really bad idea? Related to this, is it a bad play to move stop to breakeven when soon into profit?

Thanks for reading, I hope to hear some input.

Cheers

 

[Rhody Trader]

I am at uni, so am constantly in and out all day and this is what made me want to trade short term, because the idea of being able to sit down, see what has been happening and what major levels are in play, and then trade accordingly and then dissapear an hour later.

My personal view is that if you cannot dedicate several consecutive hours to day trading then you probably should be looking at a longer timeframe. An hour here and an hour there interupted by non-market related stuff (like classes) doesn't strike me as being the best path for consistent performance.

 

[Crap Buddist]

Yeah agree with what Rhody says, but communicated through the use of baseball bats.

Thats is one Big Ballsy ask mEmmerrr.


If you are doing this all by your self then you will likely go "walk about" for 3-6 years.

If you have full time available (80 hours a week study) perhaps 1-2 years.

What would likely happen if you give Uni the 2 min price action treatment ? In fact whats stopping you doing that ?

I'll just oil up the bat while you think about it

 

[ektrader]

Hi mEmmerrr,

In my humble opinion, there is a plethora of problems with what you're doing. I suggest you stop trading and learn more technique and develope a strategy that fits your schedules. Sound like you're all over the place.

"Currently my plan is trading the 2 min using "price action", but my rules say that I will only take a trade if the 5 min slow stochastics is sloping in the right direction. In terms of profits/losses, I look to lock in +8 tick profit as soon as possible, and try to make a stop loss thats fits with the charts but is around this value, but the candles are more important than a numerical stop."

You say you're trading price action (which I do), then you say you're looking at a stochastic (??) If you're trading price, you should know exactly were to place your stops.

First thing to master is loss control, try to trade and not lose any money. (Even if you don't make any money).

 

[mEmmerrr]

My personal view is that if you cannot dedicate several consecutive hours to day trading then you probably should be looking at a longer timeframe. An hour here and an hour there interupted by non-market related stuff (like classes) doesn't strike me as being the best path for consistent performance.

I agree totally.

I am going to trial trading purely off the 5 min as a sort of mid way point, hopefully reduce a bit of the small nuances but still be applicable to a 1/2 hour sit down.

 

[mEmmerrr]

Yeah agree with what Rhody says, but communicated through the use of baseball bats.

Thats is one Big Ballsy ask mEmmerrr.


If you are doing this all by your self then you will likely go "walk about" for 3-6 years.

If you have full time available (80 hours a week study) perhaps 1-2 years.

What would likely happen if you give Uni the 2 min price action treatment ? In fact whats stopping you doing that ?

I'll just oil up the bat while you think about it

Not quite sure what you mean here!

 

[mEmmerrr]

Hi mEmmerrr,

In my humble opinion, there is a plethora of problems with what you're doing. I suggest you stop trading and learn more technique and develope a strategy that fits your schedules. Sound like you're all over the place.

"Currently my plan is trading the 2 min using "price action", but my rules say that I will only take a trade if the 5 min slow stochastics is sloping in the right direction. In terms of profits/losses, I look to lock in +8 tick profit as soon as possible, and try to make a stop loss thats fits with the charts but is around this value, but the candles are more important than a numerical stop."

You say you're trading price action (which I do), then you say you're looking at a stochastic (??) If you're trading price, you should know exactly were to place your stops.

First thing to master is loss control, try to trade and not lose any money. (Even if you don't make any money).

Again, not really sure what you mean here. The stochastic has nothing to do with stop placement, I treat it as a measure to stop me shorting into a short term push to the upside.
From 'backtesting' this filter, it is fairly effective and there is a lot of trades that you could think look like legit price action set ups, but do not work out and the stochastic has a fair result with picking these.
Now clearly, there may well be another price action reason why it would not have been a decent trade, but from what I can this would also work reasonably.

 

[ektrader]

Again, not really sure what you mean here. The stochastic has nothing to do with stop placement, I treat it as a measure to stop me shorting into a short term push to the upside.
From 'backtesting' this filter, it is fairly effective and there is a lot of trades that you could think look like legit price action set ups, but do not work out and the stochastic has a fair result with picking these.
Now clearly, there may well be another price action reason why it would not have been a decent trade, but from what I can this would also work reasonably.

You're right, the stoch has nothing to do with stop placement, nor did I say it did. Sorry for the misunderstanding. Let me offer some opinions to your questions one by one.

Answer to question#1- you are not destined to fail trading this time frame, but it does take more skill with your entries and exits. i personally use tick charts instead of time based charts because what you see is real. Time based charts skew the price bars and throw off your analysis. (just my opinion)

Question#2- I use 2 tick charts and an hourly. different people use different things. you just have to figure out what works for you. This is why I mention in the other thread to tighten up your technique and strategy.

Question#3- I think that's a great idea! That's what I do. I like to take a few trades, lock in some profit, then when a larger play sets up. I can loosen my stops a little bit and go for it. manage your money the best way you see fit. Sure, you're gonna get stopped out on some trades early while your trade keeps going the desired direction. Its okay. There will be more trades.

Ektrader

 

[Rhody Trader]

I agree totally.

I am going to trial trading purely off the 5 min as a sort of mid way point, hopefully reduce a bit of the small nuances but still be applicable to a 1/2 hour sit down.

Ummmm....I don't think you're following me.

I wasn't saying go with a longer timeframe day trade chart scale, but rather skipping day trading all together and moving out two something more like swing trading.

 

[mEmmerrr]

I see.

Whilst I respect your more experienced view, I am sure that swing trading is not for me.

I am not the sort of person to give in to things, I am just more in the process of learning and modifying to find something that fits, and I am nowhere near to giving up on this yet.

Regards

 

[mEmmerrr]

Thanks for the input ektrader.

 

[Charlton]

Sup folks,

Currently my plan is trading the 2 min using "price action", but my rules say that I will only take a trade if the 5 min slow stochastics is sloping in the right direction. In terms of profits/losses, I look to lock in +8 tick profit as soon as possible, and try to make a stop loss thats fits with the charts but is around this value, but the candles are more important than a numerical stop.
My overall goal for trading (goal for the next few months at least) is to CONSISTENTLY be able to turn over +20 points a day, and this is on the FTSE/Dax futures. I know this should be very achievable, but I am struggling.

I am at uni, so am constantly in and out all day and this is what made me want to trade short term, because the idea of being able to sit down, see what has been happening and what major levels are in play, and then trade accordingly and then dissapear an hour later.

I agree with Rhody Trader and from your replies it seems you don't like us to say this. You are talking about entries and exits based on a 2 min chart and direction based on a 5 min chart, but at the next moment you talk about monitoring this an hour or so later. I know you talk about stop-lossses and mention them being based on the candles - is this the 2 min candle ? I just think that part of your problem is with the level or monitoring at each timeframe. It seems to me that you should be expanding your timeframes and looking at direction based on at least hourly TF and with entries/exits at say 10 mins. These could be longer still as Rhody suggested.

My major problem in becoming profitable is without a doubt the psychology, if I miss a big move then I either panic and jump in at a bad time, or end up taking my next trade at a non-perfect time, in fear of missing another big move I guess.

Now, my questions I would appreciate any input on:

1) For someone who isnt massivly experienced, is trading these time frames destined to fail? I like to idea of shorter time frames, as in a standard 10 min bar may be hidden a perfect setup on the 2 min, and I feel that trading this may miss lots of opportunities. When I look back over a days price action, there appears to be reasonably sparce price action setups on the 10min. But also there is more noise.

Yes rethink your TFs - you have to find good potential setups with low risk. Forget "I like the idea of shorter time frames" - think what can I reasonably managed and monitor given my other commitments. Forget 'miss lots of opportunities' - they are not opportunities if they are high risk and you cannot control them. You can also make money from longer TFs when you pick high probability trades

Also, I think that 20 points should be more easily achieved on a small scale, because 10 minute candles cover too much ground and are more for big moves?

Forget about the size of the move - work on a trading plan that provides low-risk, high-probaility setups, following the plan to the letter and including money management. When you do this the points will surely follow. Get your emotional kick, if you must, from successfully following your plan regardless of points gained.

2) Is multiple time frames a waste of time? And in particular, the idea of using a higher time frame stochastic, as a filter?

They are absolutely not a waste of time. Higher TFs provide direction and lower TFs provide entry and exit points. Look at overbought/oversold conditions, trends and S/R levels and the market cycles that follow these at different TFs.

3) Is the idea of locking in a particular numerical profit when its availble a really bad idea? Related to this, is it a bad play to move stop to breakeven when soon into profit?

Thanks for reading, I hope to hear some input.

Cheers

It is fine to lock in a profit. I mentioned this recently on another thread, where you might wish to take 75% of a position off the table, when it has reached a predefined profit target. The profit target should be based on the price action telling you that the reason you entered the trade is now showing a high probability of reversing. Leave the rest on the table with a break-even stoploss and you may gain further, but at least you will not lose as you have already banked profit.

Finally I would add that the irony of being at university age is that one year seems an enormous amount of time, yet you have all the time in the world. So don't be impatient with your trading.


Charlton

 

[Splitlink]

Sup folks,

I am here looking for advice on day trading, Ive been working hard at it and am becoming bogged down and at a bit of a cross roads.

I am not exactly an experienced trader, but have been trading my live account for small amounts of money (dont really rate using demo accounts) for about 4 or 5 months and am really struggling to be consistently profitable, even though I think I have a good knowledge of trendline analysis and price patterns.

Currently my plan is trading the 2 min using "price action", but my rules say that I will only take a trade if the 5 min slow stochastics is sloping in the right direction. In terms of profits/losses, I look to lock in +8 tick profit as soon as possible, and try to make a stop loss thats fits with the charts but is around this value, but the candles are more important than a numerical stop.
My overall goal for trading (goal for the next few months at least) is to CONSISTENTLY be able to turn over +20 points a day, and this is on the FTSE/Dax futures. I know this should be very achievable, but I am struggling.

I am at uni, so am constantly in and out all day and this is what made me want to trade short term, because the idea of being able to sit down, see what has been happening and what major levels are in play, and then trade accordingly and then dissapear an hour later.

My major problem in becoming profitable is without a doubt the psychology, if I miss a big move then I either panic and jump in at a bad time, or end up taking my next trade at a non-perfect time, in fear of missing another big move I guess.

Now, my questions I would appreciate any input on:

1) For someone who isnt massivly experienced, is trading these time frames destined to fail? I like to idea of shorter time frames, as in a standard 10 min bar may be hidden a perfect setup on the 2 min, and I feel that trading this may miss lots of opportunities. When I look back over a days price action, there appears to be reasonably sparce price action setups on the 10min. But also there is more noise.
Also, I think that 20 points should be more easily achieved on a small scale, because 10 minute candles cover too much ground and are more for big moves?

2) Is multiple time frames a waste of time? And in particular, the idea of using a higher time frame stochastic, as a filter?

3) Is the idea of locking in a particular numerical profit when its availble a really bad idea? Related to this, is it a bad play to move stop to breakeven when soon into profit?

Thanks for reading, I hope to hear some input.

Cheers

Hi, there,

I've seen your posts on the FT thread and, IMO, frequent trading for a few points will kill you on a spreadbetting account if you are new to it. There is an uncountable number of people scalping, like you, for a few points. you have to make sure that you are not getting into a trade just when they are getting out.

I've only had three trades this week and only trade in the mornings. My profit so far is 105 points and, this morning I went browsing around a bookshop. Lots of good people make good money scalping but my question is, for the extra amount they make, is it worth the effort? Maybe, it is and there those who like trading like that, as there are those that try to run from one peak to another and take hours doing it.

Horses for courses.

Stochastics, and all the other stuff at the bottom of chart is, believe me, for those who love looking at charts instead of doing the actual trading. Most of it is based on averages and, therefore, is lagging, anyway. What's the matter with averages? They are up there, moving around your bars and you can do all manner of things with them. Tell when the price is looking peaky, when the momentum is weakening, use them as trendlines.

Linda put her finger on it when she said that trading is just a numbers game. Try to spot what happens time and time again over a period and, when you think that it could work in your favour, act on it.

Split

 

[Rhody Trader]

I am not the sort of person to give in to things, I am just more in the process of learning and modifying to find something that fits, and I am nowhere near to giving up on this yet.

There's a massive difference between giving up and making adjustments to find something that works. My suggestion is the latter. You are going to struggle being a day trader/scalper if you can only trade an hour here and an hour there. Breaking your day up like that won't allow you to be in the flow of the market action.

 

[Mr. Charts]

Concentrate on your degree and stop treating the market as if it merely deserves an occasional glance. It's NOT a casino or some sort of game to play as most think, it's a place where rank amateurs great crucified.
If in the future after you have your degree you find you have the time required, learn properly and apply yourself. You are up against professionals with abilities, knowledge and skills you have no conception of - and you have to beat enough of them to earn a living trading.
Personally I have traded profitably for a living full time for almost ten years, so at least don't dismiss outright what I'm saying, even though you don't like it.
Richard

 

[GCC]

Hi,

I think this is a very interesting post that highlights some problems many beginners face. However, instead of giving you general advice, which people above have done, I want to talk about your trading style, scalping, in particular:

Currently my plan is trading the 2 min using "price action", but my rules say that I will only take a trade if the 5 min slow stochastics is sloping in the right direction. In terms of profits/losses, I look to lock in +8 tick profit as soon as possible, and try to make a stop loss thats fits with the charts but is around this value, but the candles are more important than a numerical stop.

I think your method is well-established. Some members have already questioned why you are using stochastics when you are trading price action. I think it's not a bad idea to use stos as an additional reference, but I also think you might not be worse without it, especially with such a short TF.

My overall goal for trading (goal for the next few months at least) is to CONSISTENTLY be able to turn over +20 points a day, and this is on the FTSE/Dax futures. I know this should be very achievable, but I am struggling.

I think this is a reasonable goal... only if you can catch the right time.

I'm not saying you have to sit in front of the screen all day, but my experience as a 1 min chart trader (I used to, but I have swtiched to higher TFs) is that a true opportunity does not come very often, even if you are using super-small TFs. For example, on average, there may be 2-3 good entries in first hour or two during the OPENING TIME in the European session. After that, consolidation begins and you may have to wait for a long time before volatility begins again.

My point? If you have a TP of 8 pips per trade, and want to make 20 pips a day, then you will have to catch MOST of those opportunities during the RIGHT period of time. If you missed those, you may be better off forgetting about the rest of the day. This is what all good intraday traders do: they trade in the opening time of the session, and after that they are off to do whatever they want.

Scalping is like playing a bullet game of chess, in which each side has only 1 min. You have to react fast and it takes a lot of energy. This is another reason why good scalpers only limit themselves to trade at a specific period of time which is the most profitable.

I am at uni, so am constantly in and out all day and this is what made me want to trade short term, because the idea of being able to sit down, see what has been happening and what major levels are in play, and then trade accordingly and then dissapear an hour later.

Not a complete sentence, but I can guess what you mean. Actually, scalping in such small time frames requires a lot of skills, which may not be suitable for new traders like you. I don't think you've developed all those chart reading skills as you claimed, as you are talking about poor entries like "jump in at a bad time", as below:

My major problem in becoming profitable is without a doubt the psychology, if I miss a big move then I either panic and jump in at a bad time, or end up taking my next trade at a non-perfect time, in fear of missing another big move I guess.

Well, you are not alone, everyone, when they were new, experienced that. No one is an exception. It also shows that you are unable to read the chart consistently correctly.

Now, answering your questions:

1. I am afraid scalping, as stated above, is not really for new traders.

2. It does not matter which TF you use, big or small, as long as you have a system that suits you, you can make reasonable profits everyday.

3. I don't think a fixed TP is bad, in fact it is essential when you are scalping, since everything changes quickly.

My suggestion:

To become a profitable trader, you have to spend more time trading to gain experience. Unfortunately, you may not yet be able to scalp in mini TFs because, judging from what you said, I don't think you chart reading has developed to a reasonable extend. I think you may have to sacrifice a bit of your personal life, try to sit longer in front of the screen at the RIGHT time (like market opening, closing, etc). Trading is a skill and it takes time to practice, it may take you another year or two before you become truly profitable.

I also suggest you to keep a trading journal, like this one:

Ganglion's Trading Blog
(A blog from a Hong Kong part-time trader)

Writing gives you the chance and time to reflect what you have done in your trades, what you were thinking and what mistakes you made. Keep a blog like that, be honest to write down ALL your mistakes and you will improve soon.

 

[mEmmerrr]

Hi,

I think this is a very interesting post that highlights some problems many beginners face. However, instead of giving you general advice, which people above have done, I want to talk about your trading style, scalping, in particular:



I think your method is well-established. Some members have already questioned why you are using stochastics when you are trading price action. I think it's not a bad idea to use stos as an additional reference, but I also think you might not be worse without it, especially with such a short TF.



I think this is a reasonable goal... only if you can catch the right time.

I'm not saying you have to sit in front of the screen all day, but my experience as a 1 min chart trader (I used to, but I have swtiched to higher TFs) is that a true opportunity does not come very often, even if you are using super-small TFs. For example, on average, there may be 2-3 good entries in first hour or two during the OPENING TIME in the European session. After that, consolidation begins and you may have to wait for a long time before volatility begins again.

My point? If you have a TP of 8 pips per trade, and want to make 20 pips a day, then you will have to catch MOST of those opportunities during the RIGHT period of time. If you missed those, you may be better off forgetting about the rest of the day. This is what all good intraday traders do: they trade in the opening time of the session, and after that they are off to do whatever they want.

Scalping is like playing a bullet game of chess, in which each side has only 1 min. You have to react fast and it takes a lot of energy. This is another reason why good scalpers only limit themselves to trade at a specific period of time which is the most profitable.



Not a complete sentence, but I can guess what you mean. Actually, scalping in such small time frames requires a lot of skills, which may not be suitable for new traders like you. I don't think you've developed all those chart reading skills as you claimed, as you are talking about poor entries like "jump in at a bad time", as below:



Well, you are not alone, everyone, when they were new, experienced that. No one is an exception. It also shows that you are unable to read the chart consistently correctly.

Now, answering your questions:

1. I am afraid scalping, as stated above, is not really for new traders.

2. It does not matter which TF you use, big or small, as long as you have a system that suits you, you can make reasonable profits everyday.

3. I don't think a fixed TP is bad, in fact it is essential when you are scalping, since everything changes quickly.

My suggestion:

To become a profitable trader, you have to spend more time trading to gain experience. Unfortunately, you may not yet be able to scalp in mini TFs because, judging from what you said, I don't think you chart reading has developed to a reasonable extend. I think you may have to sacrifice a bit of your personal life, try to sit longer in front of the screen at the RIGHT time (like market opening, closing, etc). Trading is a skill and it takes time to practice, it may take you another year or two before you become truly profitable.

I also suggest you to keep a trading journal, like this one:

Ganglion's Trading Blog
(A blog from a Hong Kong part-time trader)

Writing gives you the chance and time to reflect what you have done in your trades, what you were thinking and what mistakes you made. Keep a blog like that, be honest to write down ALL your mistakes and you will improve soon.

Excellent reply, thank you for taking the time.

I do spend a reasonable amount of time reading the market, particularly at open, and I completely agree about the time frame, it is noticeably more "smooth" in the mornings, and I have no doubt that this is the time when many scalpers can dominate.


After reading all the replies, I have taken it on board and will be adjusting.
I think it was quite naive to expect to be able to get back from a lecture, sit down and make 10 points then go back for a lab or something.

One particular point that hit home (dont know how to multi quote) is how I am, effectivly, in competition with a lot of professionals out there who can be there all day, and probably have been for many years.

So, changes are a coming. Thanks for the punt in the right direction.

 

[ceydababy]

Sup folks,

I am here looking for advice on day trading, Ive been working hard at it and am becoming bogged down and at a bit of a cross roads.

I am not exactly an experienced trader, but have been trading my live account for small amounts of money (dont really rate using demo accounts) for about 4 or 5 months and am really struggling to be consistently profitable, even though I think I have a good knowledge of trendline analysis and price patterns.

Currently my plan is trading the 2 min using "price action", but my rules say that I will only take a trade if the 5 min slow stochastics is sloping in the right direction. In terms of profits/losses, I look to lock in +8 tick profit as soon as possible, and try to make a stop loss thats fits with the charts but is around this value, but the candles are more important than a numerical stop.
My overall goal for trading (goal for the next few months at least) is to CONSISTENTLY be able to turn over +20 points a day, and this is on the FTSE/Dax futures. I know this should be very achievable, but I am struggling.

I am at uni, so am constantly in and out all day and this is what made me want to trade short term, because the idea of being able to sit down, see what has been happening and what major levels are in play, and then trade accordingly and then dissapear an hour later.

My major problem in becoming profitable is without a doubt the psychology, if I miss a big move then I either panic and jump in at a bad time, or end up taking my next trade at a non-perfect time, in fear of missing another big move I guess.

Now, my questions I would appreciate any input on:

1) For someone who isnt massivly experienced, is trading these time frames destined to fail? I like to idea of shorter time frames, as in a standard 10 min bar may be hidden a perfect setup on the 2 min, and I feel that trading this may miss lots of opportunities. When I look back over a days price action, there appears to be reasonably sparce price action setups on the 10min. But also there is more noise.
Also, I think that 20 points should be more easily achieved on a small scale, because 10 minute candles cover too much ground and are more for big moves?

2) Is multiple time frames a waste of time? And in particular, the idea of using a higher time frame stochastic, as a filter?

3) Is the idea of locking in a particular numerical profit when its availble a really bad idea? Related to this, is it a bad play to move stop to breakeven when soon into profit?

Thanks for reading, I hope to hear some input.

Cheers

If you're trading price action why do you need to look at a 5min stochastic ?? Surely you can see from the 2 minute chart if you are going with the trend or against it.

I would also advise sticking to one t/f when you're first starting. Furthermore in my humble opinion the 5 minute chart is to close to the 2 minute to be of any relevance. I also think (because I found) that by looking that different time frames confused me rather than helped me.

 

[fibonelli]

Sup folks,

I am here looking for advice on day trading, Ive been working hard at it and am becoming bogged down and at a bit of a cross roads.

I am not exactly an experienced trader, but have been trading my live account for small amounts of money (dont really rate using demo accounts) for about 4 or 5 months and am really struggling to be consistently profitable, even though I think I have a good knowledge of trendline analysis and price patterns.

Currently my plan is trading the 2 min using "price action", but my rules say that I will only take a trade if the 5 min slow stochastics is sloping in the right direction. In terms of profits/losses, I look to lock in +8 tick profit as soon as possible, and try to make a stop loss thats fits with the charts but is around this value, but the candles are more important than a numerical stop.
My overall goal for trading (goal for the next few months at least) is to CONSISTENTLY be able to turn over +20 points a day, and this is on the FTSE/Dax futures. I know this should be very achievable, but I am struggling.

I am at uni, so am constantly in and out all day and this is what made me want to trade short term, because the idea of being able to sit down, see what has been happening and what major levels are in play, and then trade accordingly and then dissapear an hour later.

My major problem in becoming profitable is without a doubt the psychology, if I miss a big move then I either panic and jump in at a bad time, or end up taking my next trade at a non-perfect time, in fear of missing another big move I guess.

Now, my questions I would appreciate any input on:

1) For someone who isnt massivly experienced, is trading these time frames destined to fail? I like to idea of shorter time frames, as in a standard 10 min bar may be hidden a perfect setup on the 2 min, and I feel that trading this may miss lots of opportunities. When I look back over a days price action, there appears to be reasonably sparce price action setups on the 10min. But also there is more noise.
Also, I think that 20 points should be more easily achieved on a small scale, because 10 minute candles cover too much ground and are more for big moves?

2) Is multiple time frames a waste of time? And in particular, the idea of using a higher time frame stochastic, as a filter?

3) Is the idea of locking in a particular numerical profit when its availble a really bad idea? Related to this, is it a bad play to move stop to breakeven when soon into profit?

Thanks for reading, I hope to hear some input.

Cheers

1. The lower the TF, the less time to make a decision to buy, sell or ignore.
2. Using more than one timeframe gives context to your entry timeframe. Learn about the "Triple Screen Trading".
With regard to indicators, I'd recommend that you learn about identifying areas of demand (support) and supply (resistance) on price charts.
Any indicator *follows price, often with a lag.
3. I'd recommend that you learn about position sizing to minimise risk and maximise reward (aka risk management and money management respectively).

As previously mentioned, the indices have a specific volatility pattern. Therefore, you should avoid trading during the "quiet zone".

And, finally, why the FTSE and Dax?

*excluding divergences which are suggestive of future price direction.

 

[mEmmerrr]

If you're trading price action why do you need to look at a 5min stochastic ?? Surely you can see from the 2 minute chart if you are going with the trend or against it.

I would also advise sticking to one t/f when you're first starting. Furthermore in my humble opinion the 5 minute chart is to close to the 2 minute to be of any relevance. I also think (because I found) that by looking that different time frames confused me rather than helped me.

The 5 min stochastic thing was just something I had pulled from bnaimys thread, and applied in my own way in that you only trend with the direction of the higher stochastic, and when I looked back through it it seemed to work very well so kept it.