kate682 wrote:Lets talk about those dark cloaked people on the other side of your trade. The ones that have to take the other side, or the market could not exist, the ones that do not like being offside, for long, and will fight with huge cavernous pockets to fill their own. Ask yourself this, when you see a pattern that is so obvious in a chart, that surely everyone will trade it, supporting your entry and giving you an amazing pip range to bank. Who is on the other side, and are they happy, or plotting.
example big movement up, and then another, and then range / consolidation. You have no idea which way it will break, up or down. And - neither do they. However the side that is the most heavy, the cloaked ones will take it the other way. Even right up to the last moment, there could be an at market order that tips the balance, and instead of it going up and away from the range, it will go down. And that is why you can never bet the farm or trade without stops, because it will never be known. No indicator on the planet, no insider knowledge, nothing can change that . . . in my view of course, we all see our own truth in the market.
And this is how I finally managed to be happy with stops. The markets teacher. So I smile and try and learn from my stops. Close enough not to hurt, with entries placed carefully enough not to be mainstream. But before that, I wait for the clues. If I watch candles long enough, I start to feel it. Candle by Candle. What is the previous candle telling me. So this thread 'never lose again' doesn't include me, because my space does get eaten, and my first 5 trades can be stopped out for peanuts, but then, often enough to keep me in the game, i win and win big.
I trade three different ways.
(1) scalp what I see on M5, htf framed in diamonds and megahorns, then its all about candle colour and size.
(2) Trade space at pointy bits, my size in 5 or 10 chunks. I enter full size 1, which is divisible by 10. It goes against me, I close a chunk 2/10, so I am now short 8/10, my space is larger, price continues against me, I close another chunk, so I am now short 6/10, my space is bigger, my carry forward loss/margin/risk smaller. And again, till and if my box is spent, my stop eaten. Carefully placed and then managed, 5 chunks of 2 lasts a long time, and suddenly, often without warning, my original idea works, and I can re-sell those chunks I closed. That to me is space. And then I add, 2/10 at a time, where my breakeven is far enough to support the 5% adr 30 stop. Moving my space, till it's tiny and at the biggest size I can get it to before that gets zapped into my bank, eaten up, by me, not the cloaked ones.
(3) Glass of wine during fomc and nfp, tiny size, fun and hit the button, my sl tp based on 5% each way. 50 50. me against the market. With a ££ i'm allowed to lose. Because trading should be fun.
So this is me, and i'd love to hear about you.
I like your explanation on space....it just makes sense.