gangsta1 wrote:Stopped out fair few times before catching a runner.
You are over trading.
And it looks like you are letting small winners turn into losers.
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TheRumpledOne wrote:gangsta1 wrote:Stopped out fair few times before catching a runner.
You are over trading.
And it looks like you are letting small winners turn into losers.
bredin wrote:gangsta,
I think TROs point is that you can grab a couple of pips on almost every trade. Your chart shows that too, the thing that I had to learn about reading PA is that I needed to "think opposite" to what was natural- the tendency is to get in a trade and wait for the market to prove the trade wrong (hit SL) when the thing to do is get into a trade and "not wait" for the market to prove my trade right. By which I mean price has to cross the spread ALMOST IMMEDIATELY and be in profit very quickly if it doesnt do this then I am only looking to take a couple of pips or even get out at b/e.
Cheers
G
bredin wrote:gangsta,
I think TROs point is that you can grab a couple of pips on almost every trade. Your chart shows that too, the thing that I had to learn about reading PA is that I needed to "think opposite" to what was natural- the tendency is to get in a trade and wait for the market to prove the trade wrong (hit SL) when the thing to do is get into a trade and "not wait" for the market to prove my trade right. By which I mean price has to cross the spread ALMOST IMMEDIATELY and be in profit very quickly if it doesnt do this then I am only looking to take a couple of pips or even get out at b/e.
Cheers
G
TheRumpledOne wrote:bredin wrote:gangsta,
I think TROs point is that you can grab a couple of pips on almost every trade. Your chart shows that too, the thing that I had to learn about reading PA is that I needed to "think opposite" to what was natural- the tendency is to get in a trade and wait for the market to prove the trade wrong (hit SL) when the thing to do is get into a trade and "not wait" for the market to prove my trade right. By which I mean price has to cross the spread ALMOST IMMEDIATELY and be in profit very quickly if it doesnt do this then I am only looking to take a couple of pips or even get out at b/e.
Cheers
G
The point is NO ONE KNOWS WHAT WILL HAPPEN NEXT - YOU HAVE TO TRADE IN THE MOMENT.
If price is at the LOW OF THE DAY AT THE TIME, one of 2 things will happen:
1) It keeps going down making new lows
2) It reverses.
Those are the ONLY TWO OPTIONS. Price is NOT going to just sit there.
I know from running a frequency distribution that 66% of the time, price reverses more than 20 pips off the low of the day. During the day, I don't know if the current low of the day will be THE low of the day. It may or may not be. I'll take my chances because when it happens, it should be a lot of cheese for this green rat. In the meantime, I'll take the nibbles that I can.
I enter the trade and price only goes up a few pips and stalls, I'll take 2 or more. Sooner or later, I'll get a 10 or more pip run and I am done trading for the day.
The people that have the most problems with this are YALE STUDENTS. There is nothing more to figure out. That doesn't mean you can forget about common sense. Price is either going to bounce hard and fast, or it is going to linger at the bottom. Usually, there is an "equal and opposite reaction". If price drops fast, it usually bounces back fast. If it slowly drops, it will rebound slowly.
Don't be in such a hurry. Let price move away from the daily open. If W1, H4 and H1 are red. Let the red rats get some cheese. Let the red H1 close. Then see what the next H1 candle is doing. Is it going up or down?
Price is like a rubberband ... it stretches and snaps back or it breaks.