Never Lose Again

[eudamonia]

cfabian,

Look on your chart at 14:40 or so. Do you see where price hit resistance and bounced?

Also look at the 5 minute candle that closed right before the new hour. What was it telling you (screaming really)? Price moved down during that candle but then bounced significantly (also known as a hammer). This is a clear sign to me that selling is all done - for now.

If you want to maximize any trading methodology you must get an idea of what price is trying to tell you. Not just go leaping into a trade without a parachute.

Look at it this way. When you are playing golf and you get to the first tee you typically take out your driver. But this must be done in context. For example, what if you are John Daly (when he was good o.k.) and this is a par 3? Hmm, maybe time to get out the 7 iron. Also what if there is a strong wind blowing, or several bunkers ideally placed at your driving distance, or a dog leg left (and you are slicer), etc.?

Playing golf/trading isn't just about having a good driver shot. It's about knowing when to use it. Just because these drives/setups are simple doesn't mean that understanding the golf course/markets and the context to use those drives/setups is easy.

Does this mean that you must understand the market context before using these setups - no. But if you want to use them to your maximum advantage - yes.

Edward

[cfabian]

cfabian,

Look on your chart at 14:40 or so. Do you see where price hit resistance and bounced?

Also look at the 5 minute candle that closed right before the new hour. What was it telling you (screaming really)? Price moved down during that candle but then bounced significantly (also known as a hammer). This is a clear sign to me that selling is all done - for now.

If you want to maximize any trading methodology you must get an idea of what price is trying to tell you. Not just go leaping into a trade without a parachute.

Look at it this way. When you are playing golf and you get to the first tee you typically take out your driver. But this must be done in context. For example, what if you are John Daly (when he was good o.k.) and this is a par 3? Hmm, maybe time to get out the 7 iron. Also what if there is a strong wind blowing, or several bunkers ideally placed at your driving distance, or a dog leg left (and you are slicer), etc.?

Playing golf/trading isn't just about having a good driver shot. It's about knowing when to use it. Just because these drives/setups are simple doesn't mean that understanding the golf course/markets and the context to use those drives/setups is easy.

Does this mean that you must understand the market context before using these setups - no. But if you want to use them to your maximum advantage - yes.

Edward

Edward,
Thanks a lot for your insightful comments. As you suggest, yes I was "blind" and "thought" it was a good setup. The retrace is there, and so hammer. I've should wait longer for this trade due those facts.

However, all this is considering we are looking m5 in detail while trading with H1 setups for a buzzard.

As a golfer, I know exactly what you mean... everything is there and we have to learn and know how to deal with each course. This was a good lesson, thanks a lot.

[razorboy]

did your entry extend into the go short region of the buyzone? If it did, that could be some excuse for taking the trade

[eudamonia]

cfabian,

Yes it took me a long time to understand the "course" market flow. Yes the macro direction M60 gives you wave, but the M5 tells you where in the wave you are. Just because a wave sets up doesn't mean you aren't early/late jumping on the wave.

razor,

Yes it did go into the short-zone I believe. But that isn't really my point. The point is that you must be aware of the market environment as well as your setup.

Remember the setup is the golf club, but the market is the golf course. Both must come together successfully by your interaction win the hole.

Edward

[TheRumpledOne]

Hi TRO,
Since you're an IB for MBT, I wondered if these new regulations would affect you. Forex Savior on BP posted this:

The forex market has long been known as the Wild West of Finance due to its unregulated nature. But the frontier is being tamed and it now appears the day of the unregulated Introducing Broker is drawing to a close. While the CFTC has not yet released its new Forex Dealer rules to the public the NFA just issued a preliminary set of guidelines for all introducing brokers who are now required by law to be licensed: http://www.nfa.futures.org/compliance/f ... erview.asp National Futures Association | Compliance

Among the rules, IBs must maintain net capital of $45,000. Aside from other requirements like proficiency exams and disclosure documents the NFA is doing background checks which require finger printing

Yes, unfortunately it does.

There is very little "freedom" in the "land of the free".

[eudamonia]

Avery,

Yeah no surprise there. This country hasn't been free in a very long time - if ever.

BTW posted at the T2Lose on your Never Lose Again thread. Hope I didn't feed the trolls too much

Edward

[TheRumpledOne]

Remember my TRO TREND MAP?

I made it to show you trend in a new way.

Talking about H1 and M5 is NOT reality.

Only a 1 Tick chart is reality. All the rest are CONCEPTUAL.

Remember geometry? A line is defined by 2 points.

Draw a line from price to the open 5 minutes ago.

Draw a line from price to the open 60 minutes ago.

Which way it price moving - UP or DOWN?

Isn't UP or DOWN RELATIVE to some previous point?

How many times have I said PRICE is the SAME on ALL CHARTS?

[pierre23]

http://www.babypips.com/blogs/pick-of-the-day/pick_of_the_day_eurusd_50.html

Babypips pick of the day, exact opposite of my EUR/USD trade. If you're reading this now/time of post, what are your comments on this? Long or Short?

I still think LONG. We'll see how we go. So far I'm +20pips up and they're -36.

He does have a pretty convincing chart there over at bp.com though.. Perhaps I should take my profit and exit?

Well pierre,

The trade is declared at the beginning of the week. If ppl who took the trade locks in their profits at 50 pips and not be greedy, it will be a profitable trade. Like what TRO said, grab whatever you see. Greed is a great enemy of traders.

Sorry, the trade was declared yesterday, as the post date was december 11. Also this is not a pick of the week trade, but pick of the DAY. Go back to the link, you'll see he's even posted his loss of 200 pips. In the meanwhile my eur/usd trade is continuing with a 320+ pip profit =D

Who needs trade signals when trading is so simple to just learn where price is going and how it reacts at certain points.

While im at it I would just like to thank Tro again and others for everything. Reading through everything I have learnt and STILL learning about forex. It's really opened my eyes and has helped my trading ten fold. I am still in the process of trying to fund my real account (having some problems), but these trades you see I'm posting, if I had my real account they would have been on them as well as my demo. Thats more than 600pips in just a few days. Thanks again.

[razorboy]

trust me, I agree completely - I wouldnt have touched that trade with your account

cfabian,

Yes it took me a long time to understand the "course" market flow. Yes the macro direction M60 gives you wave, but the M5 tells you where in the wave you are. Just because a wave sets up doesn't mean you aren't early/late jumping on the wave.

razor,

Yes it did go into the short-zone I believe. But that isn't really my point. The point is that you must be aware of the market environment as well as your setup.

Remember the setup is the golf club, but the market is the golf course. Both must come together successfully by your interaction win the hole.

Edward

[razorboy]

Price the same..........the trend isnt though
Im trying to get to the point where I can play two different and opposing trends on the same currency and come out a winner on both sides.

Remember my TRO TREND MAP?

I made it to show you trend in a new way.

Talking about H1 and M5 is NOT reality.

Only a 1 Tick chart is reality. All the rest are CONCEPTUAL.

Remember geometry? A line is defined by 2 points.

Draw a line from price to the open 5 minutes ago.

Draw a line from price to the open 60 minutes ago.

Which way it price moving - UP or DOWN?

Isn't UP or DOWN RELATIVE to some previous point?

How many times have I said PRICE is the SAME on ALL CHARTS?