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What Really Works for Technical Traders
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phantom, in Technical Analysis
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By David Carter
My broker (Jones Mutual) advised me to use candlesticks when CFD trading, as the simple line graph option does not give you enough information - is this correct?
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By inthemoneystocks
One of the most important reasons why traders take big losses is because they often fail to recognize when a trade has gone wrong. You see, stopping out of a trade is probably the biggest fault of traders and investors. Often, this happens to young and inexperienced traders and investors, but I know many veteran traders and investors that struggle with this as well. Early in my own career I struggled with stopping out of a bad trade myself, so I can sympathize with this problem.
The problem with taking a loss is really two fold. First, the trader has to admit that he is wrong. As you all know, as human beings we all hate to be wrong. The ego simply gets in the way and we all want to always be right all the time. The first secret in this business is to check the ego at the door. The market does not care about your the color of your skin, religion or anything else. It will move in the direction of the money and that is the bottom line. Once a trader or investor goes into what I call 'hope mode' the trade is over. I'm sure everyone has been in this position at one time or another. Simply put there is no room for ego or hope in the stock market. The market is always right and there is no reason to fight it.
Here is the second problem with taking a loss, it hurts. Pain and pleasure are the two reasons why humans do anything at all. As a human being, we are always looking to have pleasure and avoid pain. Well, losing money is painful and many people would rather simply hold a losing equity than lock in a small loss and move on. I cannot tell you how often I see a trader hold a losing trade only to see the position move further out of the money. Many years ago I watched a day trader blow up a $200,000 account in a single day averaging in on a bad day trade. To this day I can remember the look on his face as his money vanished in thin air. Believe it or not, this trader could have exited the position with a $500.00 loss, but instead he kept averaging in and fighting the position until he was wiped out. As a rule, once you have your full position you should never average in on a trade. At that point, it is critical to know where your max loss is going to be and stop out if that level is breached.
Now when should we stop out? The answer to this question is not that simple, but here is what I personally do. I always place my stop loss below an important breakout or pivot on the chart. You see, prior breakout or pivot levels are usually defended when retested. After all, this is usually an area where institutional traders and investors got involved, that is why there is a pivot low or high on the chart to begin with. If that level is breached on a closing basis then I will move out of the position. So If I took a trade based on a daily chart pattern then I will usually check the daily and weekly chart levels. If there is a major pivot on the weekly chart then I will use a week chart close as my stop out level. While this method may not be perfect, it has saved me from much bigger losses when I have been wrong.
Nicholas Santiago -
By LindsayBev
Hello! I am new to this forum. I am interested in learning about candlestick reading. I would appreciate hearing from any that will answer this post WHICH book you found the most helpful?
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By FXTechstrategyT · Posted
GBPUSD Eyes Further Upside Pressure On More Bull Pressure GBPUSD with the pair remaining biased to the upside more strength is expected in the days ahead. Support lies at 1.3100 area with a break below that level turning focus to the 1.3050 level. Further down, support comes in the 1.3000 level where a violation will shift focus to the 1.2950 level. Below here will open the door towards the 1.2900 level. On the upside, resistance is located at the 1.3200 with a break above there allowing for morel strength to build up towards the 1.3250 level. Further out, resistance stands at the 1.3300 level followed by the 1.3350 level. On the whole, GBPUSD retains its broader upside pressure. -
Yes, AMP is a good and reliable broker. Almost all FCM brokers and their IBs provide a similar service (the main difference is commission per side or per round, min deposit. Also, margin requirements, but commonly they are similar) Quantower platform allows to trade futures with AMP via Rithmic technology with full market depth data (!) -
By CrazyCzarina · Posted
I have never asked for any help here. Never expect a person to be good with me or others. But as Market wizard you should show some respect for others. -
By CrazyCzarina · Posted
That is the truth, if you can not accept it then it is not the world problem. Everything you get in this world is having some fees, for that you have to work. -
By HFblogNews · Posted
Date : 4th December 2019. FX Update – December 4 – Risk Off – 4th December 2019.AUDJPY, H1The Yen has rallied on a safe-haven bid as global stock markets turn lower after President Trump, nearly two months after announcing the limited “Phase 1” trade deal with China, said that trade negotiations may be postponed until after the 2020 presidential election. This after announcing intentions to tariff steel imports from Brazil and Argentina. Disappointing Q3 GDP out of Australia, a country that is highly exposed to the US-China trade, was also in the mix. Growth came in at 0.4% q/q in the antipodean economy, against a median of 0.5%. USDJPY printed a 13-day low at 108.43, while EURJPY and AUDJPY descended into respective one-week low territory and is the biggest moving pair today, down some -0.6%. The Australian Dollar has been the day’s biggest loser out of the main currencies. AUDUSD more than reversed gains seen yesterday on the less dovish than expected RBA statement, in making a low of 0.6814. The AUDJPY triggered lower yesterday on the Crossing EMA Strategy, H1 at 13:00 GMT (1) move down to T1 (2), retraced to Entry (3) to close T2 flat. It then triggered lower again (4) and moved to T1 (5) and T2 (6) for a net move of 47 pips for both legs lower.The Dollar, outside the case of USDJPY, has held firm, finding its own safe haven bid. The sharpest in six months drop in the U.S. 10-year T-note yield yesterday was a reflection of this safe haven bid, which is why forex markets haven’t been trading on yield differential dynamics in the latest phase. Both EURUSD and Cable both drifted moderately lower, before a bid on Sterling saw cable breach 1.3000 and trade over 1.3040 and post a new six month high. Elsewhere, EURCHF has dropped for a third consecutive trading day, this time hitting a three-week low at 1.0923. The decline in the cross have correlated with the prevailing risk-off phase that started at Friday’s release of disappointing U.S. manufacturing ISM data.Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.Click HERE to access the full HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
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