The Mechanics of trading

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graftonian
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The Mechanics of trading

Postby graftonian » Sat Jan 02, 2016 7:48 pm

Today, while paper trading, learning lot sizing, and a myriad of other things, I came upon the EURUSD for 31 DEC.
It looks as though there are opportunities for 5 trades (3 long and 2 short). Total pips = 49. Is this over-trading, mental masturbation, or ?????. Would the spread have "eaten my lunch"? Is there any approximation for the spread on EURUSD?

I am using a rough approximation of TRO's Wick-zone system. It seems to work OK, but I am sure the real thing will be much
easier (and idiot-proof).

Thanx

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TygerKrane
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Re: The Mechanics of trading

Postby TygerKrane » Sun Jan 03, 2016 11:36 am

graftonian wrote:Today, while paper trading, learning lot sizing, and a myriad of other things, I came upon the EURUSD for 31 DEC.
It looks as though there are opportunities for 5 trades (3 long and 2 short). Total pips = 49. Is this over-trading, mental masturbation, or ?????. Would the spread have "eaten my lunch"? Is there any approximation for the spread on EURUSD?

I am using a rough approximation of TRO's Wick-zone system. It seems to work OK, but I am sure the real thing will be much
easier (and idiot-proof).

Thanx

5 trades over the course of one day is not overtrading.
Of course, you don't want to be overleveraged for those five trades! [-X #-o

Average spread on EU would depend on your broker...but since this is the most popular of all the pairs for trading, you could probably just use a spread of 1 for your calculations.

It IS mental masturbation if your pip calculation is based on exiting at the very tip of the wicks you are measuring, (AND if you are expecting your exits to capture this) as exiting at the very tip of the last candle in a trend is NOT possible, except through VERY unlikely luck.

**Krane catches Tyger** !>I'm here to chew bubble gum and make major pips...and I'm all out of bubble gum.<!

graftonian
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Re: The Mechanics of trading

Postby graftonian » Sun Jan 03, 2016 5:51 pm

TK, Thanks for the info. I am trying to be fair with my exit points, using stochastics to trigger the exit. I plan more practice real time this afternoon. Will try to keep a record and post results.
Again, thanx

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