* Still keeping my long positions until 1.101, then turn the short lights ;-)
Mind well, speculation is very risky venture. Always follow your own intuition, and always take responsibility for your own ideas, risks and mistakes ;-)
*Disclaimer: I am sharing just some of my trading views and techniques that evolve with the progress in time, while using some conventional charting tools. I am not on that site to give advice to anyone. If you have fun with following my charts, you are very welcome. If you don't like my ideas, then you may simply ignore my shared work. We are on a social media. I make use of that media in order to improve my knowledge of the market, and my knowledge of the traders' techniques, insights, ideas, knowledge, innovations, expectations, and mistakes. In return to this, I also share some alternative ideas of conventional technical analysis that really has fed me up in the past years. I look forward to find out new approaches for analysis of the market development and to improve my individual performance on Forex. Forex is not just about your technical analysis mastery, Forex is about your psychic preparedness to face risk and control your appetite! Cheers to everybody. Thank you! And wishing you a very successful and profitable trading session!
And it does that continuously, at every different time-dynamics, no matter whether we prefer to trade 5M, 15M, 30M, or we would enjoy trading following up our 1H, 4H or 1D market watches ;-) Enjoy life, and never feel afraid to solve confusing challenges! Cheers
I'm trying to solve the following question. Let's abstract ourselves from our successful trades, when we have hit the jackpot, and when we see our equity grow, when we may set some minimum requirement for tp, and just enjoy our day watching the fx rate. The problem comes, however, when we are on the other side. We've made a trade, but we see that the fx rate goes gradually into the opposite direction. How long should we wait in that situation, should we hurry to sl, or we should think of something more flexible, we should keep that position, no matter that its negative, and open another one, an opposite one, that will compensate the momentary fluctuations we experience. If we manage to hit the right proportion between the sizes of the "mistaken trade" and the "opposite trade", we may not only manage to escape from unpleasant losses due to the unpleasant behaviour of the market, we may also not only manage to compensate to a great extent the negative result that tortures our "mistaken trade", but we may successfully wait safe and sound until the reverse, and then finish out "mistaken trade" on the right side, and finish our adventure very pleasantly.
Actually, I have the feeling that many people think that technical analysis makes their profits. Technical analysis is just analysis, it is not the real trade. Technical analysis and all other market analysis used for trading should give just general directions, meaning general ideas about possible trends, general ideas about possibility and relativity. After we've considered the analyses, however, it's time for the real trade, where ideas may bring or may lose money. Important is that we are as careful and technical with our trading sessions, as with our technical analyses. Actually, analyses are build on assumptions, while our trading is based on actions - buy and sell. While we cannot say we can be 100% precise when we make assumptions - and that's why we always speak in broad terms (also quite vague sometimes), drawing some channels, using different subjective interpretations about history-based statistical indicators, and relatively remote support and resistance lines, and etc.; our trading session is precisely conditioned in accordance to very strict trading rules, that work with very clearly defined mathematical equations...
We don't sell and buy our technical analysis. We only may use it to improve our trading session in the continuity of time, as it may give us ideas of the bigger picture, or the consecutive waves, as described by Elliot. Nevertheless, as most of us trade intra-day, we usually don't have the time and also the financial resources to wait until our expectations for the bigger picture get true, because sometimes this may happen in 1 month, even in 1-2 years. And even if we can wait until then, a momentary volatile caprice of the market, due to some market shock, financial or economic crisis, may kill our trading session just a moment before reaching our final destination.
Everybody is welcome to share ideas, recommendations, criticism, and scepticism.
You have access to history so you can check your trades and I can bet you you are going to see an improvement in performance if you trade against the herd only, wish you a good trading journey
In fact, this is also stop-loss strategy. But it is more dynamic and more flexible. You can correct your stop-loss algorithms in accordance to market situation and in accordance to your risk appetite ;-)
But this will materialise only in very extreme situation, because you have 100 long and 130 short. So, while one is losing, the other is winning.
If you close the 100 position (e.g. if this is your total capital), then you remain with the position at 130. This means that if you have around 95 remaining capital, your margin level is around 73%, and you can accept losses until reaching capital 84.5. This means that your maximum loss will be 10 more (95-84.5).
This is what I am trying to figure out and apply in real time. I am building some mathematical matrices here and try to adjust the best scenarios and ratios for changing long/short trades in given unfavourable circumstances.
Technical analysis and indicators are games for the kindergarten ....
Thanks for the discussion, this really helps over here! ;-)