While i'm at it I want to publicly give my thanks and shown my appreciation to Tom for everything he has been so kindly doing on this and his other threads here for the last year (this month actually) that i've started trying to learn to trade and been having around here. I have been trading forex with micro size and am up 25ish % which is not great but atleast im learning and haven't blown my account yet!! I find myself trading breakouts with the trend more so for the last few months but try to watch the levels as Tom has been teaching.
Tom, your both a gent and a scholar! thank you :clap:
25% is a fantastic return, mate. Remember, it's not about the money you make, it's about the pips. You can up the size when you are experienced and confident and you know your expectancy.
Keep your risk management tight and keep taking high probability setups.
And always try and watch the levels.
If you start at the right hand side of the chart, look at each swing high and each swing low and follow it back to the left with your eye...you are trying to see if price has reacted to that level previously.
Look at chart 1 of the GBP (hourly). Your eye starts at the right hand side and you can see the swing low (marked with the red arrow pointing up).
Follow this to the left with your eye and you will see that it lines up with a swing high (two in actual fact) that are marked with the red arrow pointing down.
Now look at chart 2. Once this level has been put in, you wait for the price to come back and react to it (blue box). You know when it is falling into it that you are looking for a long signal. Look how this rockets when it hits this area.
If it should break, it is NOT a signal to sell, it is a chance to sit up and take notice what happens next. You should then see it come up and test the level from the other side. In this case it would be from below if it had broken.
Wait for the levels and study the price.
Price will almost always react off a good level. If you are long and you have a strong level above, maybe you could take some partial profits and re-enter later if it goes through and you get another signal...or maybe you can tighten your stop (I like to move to the low of the candle that pierces and CLOSES above the level. The secret of this exit strategy is that it keeps you in a good trend because it allows price room to come back and retest the level and then continue on up. (reverse all this if you are short)
But don't HOPE it will go through levels. React to what the market is telling you.
Find your comfort zone and a way you like to trade.
That is what this game is about.
And remember: when you are in a trade or thinking about taking one - make a BUSINESS decision.
