Trading Naked - Part 2

[tenbobtrader]

LOL - if only Vinnie!! TBH I am feeling a bit stale at the moment with cable. It's not the first time it's happened to me and I know that the best thing to do is take a break.

Then again a change is as good as a rest. I've been reading up a lot on the TL Thales thread of late for a number of reasons but mainly because I really like his approach to trading support and resistance. I took some trades this morning using his approach and thought I'd share one.

The level that I traded was pretty obvious but there was a much better entry lower down. As you can see price tried twice to break a level and failed and then produced a HrL (where I have written footprint). A buy on the break of the next high would have got one in nice and early to the new trend.

good post Rob

OK OK ............... you got me ... I get it honest



look ~

 

[Vaco]

I just woke up to find my trade still live and i'm still happy to let it run.

 

[HawkTrader]

Nice going Vin, I notice your stop is is quite wide, about 100 points from what I can see. Would you close the trade early if it turns against you or wait for stop to be hit? Also, looks like you might run into trouble at the 1.6600 area, are you going to simply run or TP?

 

[Vaco]

the stop is 50 pips wich was a logical stop below the low plus a bit of breathing room. I'll probably let it run as i'm expecting some more congestion before it runs up.

Once it runs up a little i'll trail on the 30m. Will post charts of that when/if the time comes.

Have a great weekend,

I'm off to work now

 

[HawkTrader]

Ah sorry, for some reason I thought it was 100 pips and I was too lazy to pull up a chart!

Looking forward to how you manage the trade, you too have a great weekend... and enjoy your time at work? More money = more trading?

 

[tenbobtrader]

circles and lines on a naked chart

charts for the higher timeframe boys and girls

anything can happen - and probably will


The Five Fundamental Truths

1. Anything can happen.
2. You don’t need to know what is going to happen next in order to make money.
3. There is a random distribution between wins and losses for any given set of variables that define an edge.
4. An edge is nothing more than an indication of a higher probability of one thing happening over another.
5. Every moment in [a game] is unique.

The Seven Principles of Consistency

1. I objectively identify my edges.
2. I predefine the risk of every [betting decision].
3. I completely accept the risk or I am willing to let go of the [hand].
4. I act on my edges without reservation or hesitation.
5. I pay myself as the [game] makes money available to me.
6. I continually monitor my susceptibility for making errors.
7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.

 

[tenbobtrader]

Kiss

sorry Rob ~ could not resist temptation


Kiss

a great post from Steve ~~~ imvho anyway



"A simple experiment might help me make my point. Next time anyone gets the ‘urge’ to take a position in the market just stop for a moment. Bring up a chart or two of the relevant instrument.

Now place yourself in two scenarios and answer the following two questions ~

1 ) Imagine that you have recently gone long in this instrument – where would you place your stop ?

2 ) Imagine that you have recently gone short in this instrument – where would you place your stop?

Once you have identified the two stop areas you have identified an area where taking a trade is of much lower risk. It is of lower risk because you have found an area where temporary price deflection is likely to occur. In those areas the 95% are flushed out of their positions purely due to price this is where you can step in. Obviously, if you have supporting volume as well then you are more than likely onto a good thing.

By Steve"

 

[Bloodhound]

Perish the thought that I'd ever buy support Andy but you might like this ;-)

Blue for entry, red for stop.....





P.S. I don't trade the Sunday open so won't be taking this until price has settled down
P.P.S. And there is an obvious short entry as well

 

[Vaco]

Morning, Hope you all had a good weekend.

Moving stop up to just above entry for a 10 point lock in.

 

[HawkTrader]

Nice trading Vinnie.

I was going to enter the same area last night as it's near a zone I drew a few weeks ago, and also confluence with the 61.8% fib... but I wasn't sure what time the market was opening and I was too tired. Could've done a order to open, but I didn't want the marekt to gap and leave me with a massive stop.

 

[Vaco]

this is why its sometimes worth taking a trade going into the weekend.

Thing is when your eye balling the chart for previous set ups you don't see what day it was what or what news came out and so i want to treat my future trades with the same ignorance:cheesy:

 

[HawkTrader]

Very good post Elefteros.

It's true about backtesting, a lot of the time it's pointless in my opinion. I try to take time into consideration though, I mean, I wouldn't be entering a trade at the 4am candle would I?

Don't you have to pay an extra spread when carrying the trade over the weekend?

 

[Vaco]

yes there is an overnight fee

I found this explanation of it useful so did a copy and paste job.

If you hold a spot forex position overnight, that is the position is “rolled over”, then you may pay or receive what’s called the rollover fee.

And the rollover fee is calculated by the difference in the interest rates that apply to the two currencies in the currency pair that you’re trading.

If you buy a currency pair where the base currency has a higher interest rate than the terms currency, then you’ll receive interest, and vice versa. For example if you buy the AUDUSD, and the interbank interest rates are higher in Australia than in the US, then you may recieve a rollover fee. On the other hand, if the interest rates are higher in the US, then you may have to pay a rollover fee. Usually the rollover fee is a relatively small amount, compared to the profits and losses of a system.

What you'll see on your statement, is something like this during the Rollover:

For a short position in 3 standard contracts ($300 000) in the EUR/USD:

14th June 2006 6:18 am : Buy: Rate 1.2542 : Counter amount 376 260 DB

14th June 2006 6:18 am : Sell: Rate 1.25425: Counter amount 376 275 CR

In this situation, the rollover fee as you can see is 0.5 pips, which is $5 per contract.

Because we're in 3 contracts, this is 1.5 pips or $15 for that day.

Currently the trade is 31 pips in profit per contract (profit of $930).'

 

[Vaco]

You guys are quiet today, too busy riding the trend up I hope!

Moved my stop up to lock in 83.

At the same time I've placed another order to buy on the break of the 4h.

Hope you all had a good days trading.

 

[trendie]

hi Vinnie,

have you switched from 1-mins to 4hrs ??

GU was well-behaved today, but I missed it due to being asleep.

 

[Vaco]

yes I have, the 1/5 min was tooo fast for me, the setups are there but i'm not fast enough to react when it starts going pear shaped. (maybe i was just trying to do too much with too little sleep) so i've switched back to the 4h for less screen time, more sleep and a clearer head.

 

[trendie]

yes I have, the 1/5 min was tooo fast for me, the setups are there but i'm not fast enough to react when it starts going pear shaped. (maybe i was just trying to do too much with too little sleep) so i've switched back to the 4h for less screen time, more sleep and a clearer head.

good stuff.
I PMed another trader today, and his perspective was to stay in the market for as little time as possible; grab pips, and get out in a 5hr session.

he trades on the 1/5/15 mins.

interesting to see how KJs 5-mins and your 4hr tallies up.
neat charts and analysis by the way.

have a great week.

 

[Vaco]

out of my long for +83

 

[HawkTrader]

Good trade Elefteros.

Got a short order here on the nice overnight range with a LrL...

 

[HawkTrader]

Have a feeling I might not get triggered here... if not I'll enter on a 1-2-3 reversal!