CrystalMethod
Newbie
- Messages
- 1
- Likes
- 0
The only thing more useful than a tight stop is a disciplined exit. This would need to be at equal to or better than the tight stop on average. Since this takes years to master, and requires great discipline and understanding you are advised to keep a tight stop. How tight is tight? It is vol dependent and instrument dependent, but for EURUSD you should aim for maximum 20 pips and generally closer to 10 pips under normal circumstance. You can trade with a 4 pip stop at times. Don't aim for fixed targets, take what the market is offering you. Fixed stops and fixed targets are will most likely keep your account fixed or worse.
Always trade with the short term trend. Before it moves the way of the long term trend, it will be trending on the short term, and why trade before then. How short is short term? Between 5 mins and 1 hour. How do you define trend? HH's HL's will do, moving average is fine, trendlines are acceptable.
There is no entry that requires a larger stop because it is on a larger timeframe. There is no larger timeframe, there is just price movement in continuous time, and various reference points. A daily move will have several price points and signals in which you could enter with stop of 20 pips or less.
You will be told a multitude of nonsense that short timeframes are noise. There is no noise, there is just lack of understanding. In the short term price is more predictable than over the longer term, with good reason.
Price rules, therefore technical analysis rules. Wait for confirmation. If you're willing to enter at a level with no confirmation, you're a sitting duck. If your move is known ahead of time, then your next move is easily manipulated, and it won't be to your advantage. Don't be a puppet.
Markets change in character but not in nature. Let those who say the market is impossible, has changed or is run by algos continue to fail. There are always chances to profit. If it moves you can **** it.
Be aware of long term levels. This is not a contradiction of trading with the short term trend, it is vigilance.
If you enter and soon after you're feeling pain, start exiting part of your position at the best price you can get, or near breakeven. Don't wait for your stop to be hit. You already know when you're wrong. The market is kinder than you think, will whisper "you're wrong" and offer you the chance to get out for little pain. Don't expect it to ask twice, it is not your mummy.
It IS as simple as buying when it is going up,and selling when it is going down. You can keep doubting this, to your cost.
More useless paragraphs to come...
Always trade with the short term trend. Before it moves the way of the long term trend, it will be trending on the short term, and why trade before then. How short is short term? Between 5 mins and 1 hour. How do you define trend? HH's HL's will do, moving average is fine, trendlines are acceptable.
There is no entry that requires a larger stop because it is on a larger timeframe. There is no larger timeframe, there is just price movement in continuous time, and various reference points. A daily move will have several price points and signals in which you could enter with stop of 20 pips or less.
You will be told a multitude of nonsense that short timeframes are noise. There is no noise, there is just lack of understanding. In the short term price is more predictable than over the longer term, with good reason.
Price rules, therefore technical analysis rules. Wait for confirmation. If you're willing to enter at a level with no confirmation, you're a sitting duck. If your move is known ahead of time, then your next move is easily manipulated, and it won't be to your advantage. Don't be a puppet.
Markets change in character but not in nature. Let those who say the market is impossible, has changed or is run by algos continue to fail. There are always chances to profit. If it moves you can **** it.
Be aware of long term levels. This is not a contradiction of trading with the short term trend, it is vigilance.
If you enter and soon after you're feeling pain, start exiting part of your position at the best price you can get, or near breakeven. Don't wait for your stop to be hit. You already know when you're wrong. The market is kinder than you think, will whisper "you're wrong" and offer you the chance to get out for little pain. Don't expect it to ask twice, it is not your mummy.
It IS as simple as buying when it is going up,and selling when it is going down. You can keep doubting this, to your cost.
More useless paragraphs to come...
