forexgreenland
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Paulfx said:Satlion, I made a trade today and got stopped out. Shorted GBPUSD time
16:33 GMT@ 1.4620 SL 1.4650 looking at either a major retracement or even trend reversal.
From my charts it looked like it was a solid trade on my part. This last call you posted
seems similar to mine with different resistance levels. Was mine just a bad trade or did
the market go against the charts? How is your trade better than mine? Thank you for your
response.
Greetings, Paul..from your chart above, we can do some prognosis and have some ideas in the
process...
First,from your 1 hour chart, we can see a 1-2-3 bottom, which in forex, involves a reversal
signal that gives us a clue that the bearish(downtrend) movement is turning around into a
bullish (uptrend) movement.. The break of the 2 level triggers the upward movement..but you
were in the middle of it, @ 1.4620..tsk tsk tsk... 1.4620 was supposed to be applied as a
BUY STOP, so as to catch the bullish drive..
And the way you placed your fibonnacci lines were distorted..like putting the cart before
the horse.. The fibonnaci drawn below at the replica of your chart that was sent in, was
what you should have plotted and waited for price to move convincingly downward.. All
candles preceeeding the 1.4620 bar were bullish candles, except a bearish candle and a cross
on the 5 min chart.so bullish momemtum was still strong...
It is maybe when price has shown exhaustion signs like falling prices in a row leading to
bearish candles,that you would commence the 2ndstep.... That would've entailed you drawing
your fibs from the most recent high to your most recent low..
ohh,before I forget, MACD was still above the 0.0 equilibrium line, which is also price way
of saying ''I'M STILL OVERBOUGHTAND MOMENTUM DOESNT LOOK LIKE ITS EASING VERY SOON"...
What else?
hmmmm....
By applying the CHART PATTERN PROJECTION STRATEGY, you would have sensed, to a considerable
extent , that price is reversing upward on the 123 bottom, THEN calculating your target
point or where you want to exit the trade.
1.4573-1.4446=0.0127
1.4585+0.0127=1.4712(target point)
Price made a high of 1.4743 that Wednesday,more than 30 pips above our target point of
1.4712..You would've known where you were exiting,BEFORE entering the trade..you missed 92
pips for triggering the wrong order. Ohh, and your stop loss, an integral part of risk
management, is too tight at 30 pips..
Hope you understand
[quote author=Vickywebworld link=topic=981.msg5646#msg5646 date=1240675879]
Welcome ForexGreenLand! Your write up really shows that you are a forex guru. We will look
forward to getting more of such wonderful lectures from you.
Thanks and answer my question?
Can one really make money by trading forex? Personally, I see it as more of a gambling
business. You make money today and lose money tomorrow. Is it really a gambling business?[/quote]
Helloo Vickywebworld, thanks for your welcome..
When you enter any business without proper knowledge of its operations and strategies, you
are gambling.. if you reduced any activity to a mere game of chance, without bothering to
apply skills, knowledge and discipline to it, is gambling..if you are trading with no risk
management,mental/manual stop loss, and no strategy, then you are just playing Russian
roulette..
Trading is not lotto..heads or tails..mini..mini...maini..moo..or you get an addictive motto
in a grotto..You must understand the individuals that make forex a gambling business to
themselves, are the 80% that lose. It is more of the person than the strategy...The 20% that
win DONT take it as a gambling because they treat it as a business...income, costs,
revenue,etc..
So you have choices...either learn and practise well before trading and succeeed, or gamble
your earnings today n tommorrow cause you dont bother to make the necessary sacrifice to
win..your mindset determines how you take it...
As you follow this thread, you might find out for yourself, mon ami...Please feel free to
ask questions or make comments
On Sunday/Monday opening of the Asian session, if you check your GPUSD charts, price is
currently at 14677..
[19:28:11 24/04/09] Stalion : okay....we put a buy stop @ 14680..1st target @ 14715...2nd
target @ 1.4745
[19:29:28 24/04/09] Stalion : sl @ 14645
Where we at, when we trading forex in a pronto, swimming in pips pool like
breaststrokes..next stroke, net stroke was the best stroke..best stroke turn on down deep
throath..