Apr 27 2015 at 06:55
The emotional aspect is also a very important element .
On a personal level I find this element a lot easiar to manage when I've got a fundamental reason behind my pair choices - it gives me more confidence to leave a trade to run until it hits my pre-designated tp knowing that there is logic for the pair to move my way.
It's like anything in life - if you know something is generally good or healthy, you worry less about it and let life take its course with a lot more comfort
On a personal level I find this element a lot easiar to manage when I've got a fundamental reason behind my pair choices - it gives me more confidence to leave a trade to run until it hits my pre-designated tp knowing that there is logic for the pair to move my way.
It's like anything in life - if you know something is generally good or healthy, you worry less about it and let life take its course with a lot more comfort
HOLY GRAIL: Fundamental Analysis to chose your pairs/direction, Technical Entry/SL/TP for consistent Management of those decisions
I am a little worried over the opposite problem, which is basically succeeding in spite of my ignorance :)
Apr 30 2015 at 06:31
If anybody tells you there's only one way to trade, don't believe him.
There's only one way to fail though, that is to fall prey to crowd psychology and deviate from your trading plan. All failure stem from either not having a proper plan or deviating from said plan.
If you are failing, and you have a plan and you are sticking to it, that means you need a proper plan.
If you have don't have a plan, get one.
If you have a plan, but are not sticking to it, it's called shooting yourself in your own foot. Someone once said, 'As long as we stopped shooting ourselves in our own foot, we will start looking like geniuses to others.'
There's only one way to fail though, that is to fall prey to crowd psychology and deviate from your trading plan. All failure stem from either not having a proper plan or deviating from said plan.
If you are failing, and you have a plan and you are sticking to it, that means you need a proper plan.
If you have don't have a plan, get one.
If you have a plan, but are not sticking to it, it's called shooting yourself in your own foot. Someone once said, 'As long as we stopped shooting ourselves in our own foot, we will start looking like geniuses to others.'
May 26 2015 at 16:13
In my opinion, trading is always related to psychology. It's your mind that takes decisions. Either you observe the market, read the charts or follow news, your thinking is biased by all these things. You take decisions believing this is the right thing to do. How can you get rid of your emotions? No one enters a bad trade on purpose with the mindset to lose money. It's human nature to make mistakes and psychology is responsible for your trading, either you realize it or not.
Positivity
I have a trading strategy, which needs modifcations. with 3:1 and trailing stop management i think the win rate is around 30 percent. if its 1:1 risk reward, there will be less drawdowns and around 70 percent winning rate. Which do you think is better guys? Please help me nick too!
May 28 2015 at 14:41
Back to the topic on hand: Fundamentals...
If you have a decent service that can spit news at you, and you have had enough experience to digest that news and place a trade on it 9/10 times you will be profitable. The key to fundamentals is make sure the event will be high impact and have enough momentum to swing the market. Interest rates, GDP, employment, and NFP are all great examples.
Use a moderately high lot size, with SL placed above nearest resistance (Technicals play a part).
Then over time you will see a pattern on how the market reacts to news, set a pip target, and exit every time on your target. Never place another trade, never change the SL. Over time you will be able to trade 3-5 news events a week and pull in a steady profit.
If you have a decent service that can spit news at you, and you have had enough experience to digest that news and place a trade on it 9/10 times you will be profitable. The key to fundamentals is make sure the event will be high impact and have enough momentum to swing the market. Interest rates, GDP, employment, and NFP are all great examples.
Use a moderately high lot size, with SL placed above nearest resistance (Technicals play a part).
Then over time you will see a pattern on how the market reacts to news, set a pip target, and exit every time on your target. Never place another trade, never change the SL. Over time you will be able to trade 3-5 news events a week and pull in a steady profit.
I dont have a problem picking profitable trades, but I do have a problem knowing when to exit and take the said profit. It is always a dilemma, as I think if I get out of it i will need to re-enter it as fundamentally it is doing what I need it to do. I have very very wide stop losses to allow the trade to move, knowing fundamentally it should react how I intend it to.
dave131@
Same here, sometimes when i just exit the trades will go back up to 3:1 reward risk and i end up only taking 1:1 or less with trailing stop.
