yeah its hard but u need to practice to do that ....n its good also that u never move ur stoploss wider.... n if u can predetermine ur take profit from the beginning... mainly u need to train ur self to be a robot... everything mechanical n do not let ur emotions to interfere...
for intraday trading.. consider volatility n every pair daily range as basic frame to trade with...
ok so I am transitioning from daily/weekly trading mode to intraday trading mode, normally my strategy is this - 1) my system gives me a signal for a currency with average range x pips for n days, i go long and subsequently add positions and move stop-losses close as time goes by. By n days I am either stopped-out (hopefully with a profit) or taken profit or out of the trade.
2) could i use the same system but for smaller mins intraday? Meaning - my above system gives me a signal a) say sell then i risk 1% of capital and go short with x pips stop loss b) say my equivalent system for 60 mins say gives me a signal short as well then I take 0.5% of my capital and I go short with stop loss at x pips equivalent of 60 mins and take profit 2x pips c) if my equivalent system for 60 mins say gives me a buy signal i dont do anything d) now say my equivalent system for 30 mins say give me a sell signal i can risk 0.25% of my capital and with stop-loss x equivalent pips and take profit at say 1.5pips .. and then same for d) 15 mins and beyond that i dont go as for e) i have 1 return for 1 risk ....
You have made a good work and i tell you congratulations. From what i can read in your post, i think that you are a new trader.
Well your fear might lead you directly to a margin call and indeed you should deal with it very seriously and carefully.
These are some of the most important reasons for fear while trading :
1 - Not having a clear and pre tested strategy. What i mean here is that you need to have a written strategy. 2 - In case you have a clear strategy, then you just simply don't trust it. 3 - I think that you don't have a trading plan ( like a business plan ) Which will tell you what are your targets and how you should achieve them 4 - One of the most important point is a money management policy. If you have a clear money management policy then you don't have to worry about the losses that might occur because if your R:R is 2:1 or higher, then you can lose 50% of your trades and will still profitable ( You should know that making 1 to 2% a month will put you at the high of the trading industry) 5 - The problem might be the confidence in yourself. You might lack confidence in yourself and you should work on this point.
N. B : If you don't put stop losses, you will get a margin call and you will make of yourself a minnow so the sharks can eat you. Why i am telling you so ?? Just remember the 7 July 2005, The terrorist attacks on london . The trading statiosn stopped working and nobody was able to close the trades which resulted in a lot of marging calls while those who had a stop loss, it was triggered. Remember the EUR/CHF ( november 2011 ) 1200 pips in just 1 minutes, those who had not stops, got killed. Always use stop losses and not very tight so the big sharks don't hit them.
Watch out when you trade and don't risk more then 0.5% on a trade as you are a beginner. Forget all the hype and scam of the get rich quickly and manage your account as pro.
Say to yourself that having an account that is making between 12 and 15% a year with a drawdown of no more then 5 to 7% is extremly excellent and having such a record for only 2 years can make you get hired in the best banks and companies in the world.
Trade well and stay safe. Good luck.
On a 5 Minute chart, do you think 10 PIPs is a tight SL, if you are holding positions for 1-2 hours max and looking for rewards between 20-30 PIPs? If it hits 10 PIPs so be it, but if it doesn't hit your target of 20-30 PIPs then you let the trade run so be it if it hits your SL. What's your take?
First of all thank you for asking me your question. I think that you are a beginner and you are trying to find your way in the trading industry. That's why, i will tell you from now, stop trading the 5 minutes chart because it has no sense if you don't know what you are doing. The floor traders will eat you and you will be ending losing your account. As a beginner, you need to trade not even 4 hours chart, you need to trade the daily chart. ( I know that it could be annoying and there will be less opportunities, but i assure you that it is more accurate and extremly safe :) if you are only risking 0.5 to 1% of the overall trading positions you have in the market. If you have other questions don't hesitate in asking me :)
I have just started trading (well spread betting) and I started with gbp 80 in november and now I am at gbp 600+; I am a newbie and I think i got lucky by being in and out of some good trades.
Now I am getting slightly nervous of taking new positions. I dont want to feel too cocky and open new/bad positions and at the same time I dont want to be scared and not open any good trades (i think i am over-analyzing new potential trades...)
How do you guys deal with this? any ideas?
I trade on breakout patterns and normally hold on to my trades until the pattern is broken.. thats it, very simple strategy..
Learn about the world trade takes several years You need to study and analyze the market And know to trade any market condition The fear is because you do not know the market well enough Spend time preparing the market And less trade
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