yes, yes, yes... I was wrong today. Yesterdays market close told me to short the market today. Well I was listening to my plan. I had to trades which were awful.
What was the problem?
I didn't listened to my strategy. One of the key elements of my strategy is to stop trading when i have loss more than 100$. Today I had loss about 200$. I shorted the market when it was so strong. When it was going upwards I was shorting it. WTF?!
On the other hand i traded my plan. Today I had to short it because my plan was to short it.
Problem was that I had to realize that i have to stop trading after firs 100$ loss. Secondly, I had to check market internal data. TICK, TICKQ, VIX. Right now I'm analyzing it and it doesn't show anything to be bearish of.
To sum up, I was trading with my plan but I didn't stick with my trading rules.
For the future: I have to find the best avarages and charts (5,10,60) to determine the trend. Maybe you can offer something?
I would be careful of "need to find <x,y,z> indicator" to determine trend. Really it is just "need to learn how to determine trend", don't qualify it with needing an indicator or some external tool, its more about experience. For me that primarily means just reading and understanding price action.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
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The following 2 users say Thank You to Big Mike for this post:
This is what Ive been using for trend . 3 line break is not dependant on MAs or algos , only CLOSING prices and price action . Study it a little first and grasp the concept and see if it suits you . Heres a link to some more info and google "3 line break charts" for more , hope it helps .
Im with Mike on the experience is key statement and while gaining that experience it pays to have an objective friend ( like 3LB ) in your corner .
NFP is a biggie . Forex factory is good for news alerts and heres the link . I dont pay any attention to what the news is only when the news is and when its a red flag on the FF list of news events take it as a chance to sideline and watch the aftermath instead of being sucked down in the undertow .
During this weekend I've done some thinking about my trading system. I've decided to edit my moving avarages list. From now on I will use: SMA: 20, 50, 200 (for daily analysis).
EMA 34, 100 ( 15min and 60min timeframe) I just want to make sure I will be trading at the direction of the trend.
I've started learn about price action analysis methods. I hope soon I will have something good to share with you guys.
Started to trade in the direction of the trend. I had 4-5 trades and they were successful. Right now i see one more problem in my system.
When is that RIGHT time to enter a trade? When i see trend upwards where should i buy? Near 34 EMA? near 50, 100, 200 EMA?
I have to find a system which could show me when whether there is more buyers or seller or something like that. Well basically I need an indicator which could show me whether is safe to long or short.
Do you have any ideas?