Sometimes when it happens like that, I may cover half at 900 and move my take profit to see where it'll move further.
Still 53pips ain't bad.
Perhaps the circled green candle is a good second entry. hmm.... more thoughts.
Wednesday, November 26, 2008
Before Obama speaks....
I took about 80+pips today. This one rakes 53pips. The move happened so fast and that perhaps made Oanda hung. My take profit got hit and everything stay frozen.
Sometimes when it happens like that, I may cover half at 900 and move my take profit to see where it'll move further.
Still 53pips ain't bad.
Perhaps the circled green candle is a good second entry. hmm.... more thoughts.
Sometimes when it happens like that, I may cover half at 900 and move my take profit to see where it'll move further.
Still 53pips ain't bad.
Perhaps the circled green candle is a good second entry. hmm.... more thoughts.
Monday, November 17, 2008
Trading System
Trading, to me at this time of writing, is seperated into 3 parts:
Analysis is made up of entries and exits. The final conclusion of an analysis is to give us a signal : Long or short or stand-aside. Not all correct analysis yield correct price movements - it's just how the market is, they obey no fix rule.
Moneymanagemetn is ALL about exit. The famous saying goes: let your profit run, cut your losses short. Both are abouth exits. Your risk/rewards ratio is about exits- where your TakeProfit (exit) is in relation to your StopLoss(exit).
*You should be able to tell now that exits are far more important than entries.
Pschologoly is tricky. I simplify (and assume) it to this: pschology = greed + fear. (This is really over simplifying because pschology also includes loads of other biases that we have). We cannot measure greed and fear per se, but we can measure the effects of greed and fear. Notably this shows up in our trades (but is not limited to) as entries taken too early or late and exits taken too early or late. I also measure my heart rate sometimes- just to tell me how 'clear' I'm thinking. I note that when my HR goes up from 70/min resting to 100/min I'm usually over-trading. Correlation doesn't mean causation though.
Therefore now we have the following equations:
Just remember to keep track of the relevant numbers in your trading journal. The journal will be our map to get from point A to point B.
Good trading.
- Analysis
- Pschology
- Money managment
Analysis is made up of entries and exits. The final conclusion of an analysis is to give us a signal : Long or short or stand-aside. Not all correct analysis yield correct price movements - it's just how the market is, they obey no fix rule.
Moneymanagemetn is ALL about exit. The famous saying goes: let your profit run, cut your losses short. Both are abouth exits. Your risk/rewards ratio is about exits- where your TakeProfit (exit) is in relation to your StopLoss(exit).
*You should be able to tell now that exits are far more important than entries.
Pschologoly is tricky. I simplify (and assume) it to this: pschology = greed + fear. (This is really over simplifying because pschology also includes loads of other biases that we have). We cannot measure greed and fear per se, but we can measure the effects of greed and fear. Notably this shows up in our trades (but is not limited to) as entries taken too early or late and exits taken too early or late. I also measure my heart rate sometimes- just to tell me how 'clear' I'm thinking. I note that when my HR goes up from 70/min resting to 100/min I'm usually over-trading. Correlation doesn't mean causation though.
Therefore now we have the following equations:
- Analysis = entries + exits
- Pschology = entries ( + / - candles timing) + exits ( + / - candles timing)
- Moneymonagments = TakeProfit / StopLoss
Just remember to keep track of the relevant numbers in your trading journal. The journal will be our map to get from point A to point B.
Good trading.
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