I have from time to time see some traders sent me very complicated charts that I feel uninspired to understand more.
Please visit my following charts where you can see we have made more than 400-500 pips profits (each pair) using just trend lines, price action , support and resistance. No indicators, volume, social economic reasons, politics, etc. Just a couple of lines to tell you where the price action would behave following the historical patterns.
USDCAD
GBPJPY
EURCHF
NO, my intention is not to boast about my profits but rather to impress upon you that trading is not rocket science nor require you to pay hefty sums in getting the latest indicators, trade signals, etc in order to make money.
By keeping things simple with just these few tools and practising the fundamentals of chart reading, one can get better and better over time. Now, this is just 20% of the work. The remaining 80% as I have said before lies in the emotions control, execution and money management.
On money management, I have for the longest time stick to the 2% rule for each trade no matter how promising it looks to me. If it is really good like FB and Tencent , then I would average up along the way. Still, it is 2% of my capital for each trade. I do not show hand like you see in the casino.
That way, if I am wrong, I am able to take care of the downside.
And when you do swing trade like this, you will realise you trade less frequent, taking the emotions out of the trade which could affect your performance. Better still, you do not anticipate where is the profit going to be like the 2:1, 4:1 as there is no way you know how it turns out. By leaving the profits to run according to the trend, you ensure your profits is maximised each time you got the trade right.
Then for those trades that you lose out, your tight stop loss will contain your overall losses. The net effect is few bigger gains and smaller frequent losses. You can still be profitable even with a 40-50% win loss ratio.
Please visit my following charts where you can see we have made more than 400-500 pips profits (each pair) using just trend lines, price action , support and resistance. No indicators, volume, social economic reasons, politics, etc. Just a couple of lines to tell you where the price action would behave following the historical patterns.
USDCAD
GBPJPY
EURCHF
NO, my intention is not to boast about my profits but rather to impress upon you that trading is not rocket science nor require you to pay hefty sums in getting the latest indicators, trade signals, etc in order to make money.
By keeping things simple with just these few tools and practising the fundamentals of chart reading, one can get better and better over time. Now, this is just 20% of the work. The remaining 80% as I have said before lies in the emotions control, execution and money management.
On money management, I have for the longest time stick to the 2% rule for each trade no matter how promising it looks to me. If it is really good like FB and Tencent , then I would average up along the way. Still, it is 2% of my capital for each trade. I do not show hand like you see in the casino.
That way, if I am wrong, I am able to take care of the downside.
And when you do swing trade like this, you will realise you trade less frequent, taking the emotions out of the trade which could affect your performance. Better still, you do not anticipate where is the profit going to be like the 2:1, 4:1 as there is no way you know how it turns out. By leaving the profits to run according to the trend, you ensure your profits is maximised each time you got the trade right.
Then for those trades that you lose out, your tight stop loss will contain your overall losses. The net effect is few bigger gains and smaller frequent losses. You can still be profitable even with a 40-50% win loss ratio.
Comment:
It has reached a whole number ,1.14 as the resistance and now we must watch 1.1256 support level.
