Showing posts with label Traders Friend. Show all posts
Showing posts with label Traders Friend. Show all posts
HOW I TELL I AM LOSING MY ADVANTAGE
When trading the 1 min time frame it is essential for You to be able to recognize when You have lost Your trading advantage. These are ways that I can tell that I no longer have the advantage that I believed that I did:
If price moves above/below the previous candle even though it may not close there, I don't have the advantage.
A good trade should run in your favor almost immediately !
If you are not in a decent profit in 7-10 mins , then You may want to consider getting out with a tiny profit or at break even, because chances are high that price is going reverse on You.
Wacky MA's- Pay attention to the order of Your MA's, it is very important, they will tell You if You are in a good trade or trade hell. If your moving averages are 1, 2, 3, 4, 5, then they should be in order 5, 4, 3, 2, 1, or 1, 2, 3, 4, 5, not 4, 2, 3, 1, 5.
Lastly a flat 50 period strongly suggest that You may not have the advantage that You thought.
YOU CAN DO THIS (^_^)
Get 10 Trading Lessons FREE
KEEPING RISK SMALL
Keeping risk small and rewards big is what a good trader is always attempting to do.
How can we do that???
How can we gain that kind of advantage??????
One way I have discovered is by trading off of the 1 minute time frame.
Why is that an advantage??????
It keeps your risk small when you find yourself on the right side of the trade and within a matter of minutes, you will see that you can secure a very nice profit.
The advantage that it has over larger time frames is that you are able to get in on a move quicker, giving you access to more profit with a smaller risk. Many times when you are trading off of the larger time frames by the time you get your confirmation, the move is almost over, the reward is smaller and the risk bigger, especially if you day trade.
One of the problems that comes as a result is that you find yourself in a nice profit briefly before price reverses strongly on you again, then you find yourself hoping and waiting for price to come back in your favor, kicking yourself all of the time, thinking 'I should have got out when I had a profit.'
Now I do need to mention that while you get many more trading opportunities off of the 1 min time frame, You also get many more false trading signals.............
Let's put the odds in your favor a little more. I don't use a trend line on the 1 min chart, just on my longer time frames, so there is always a trend line available, but it comes off a larger time frame. On your 1 min chart, you may want to consider a moving average, right now I am experimenting with the 8, 10, 14/15, 20 and the 50 period SMA.
Though your SMA is a lagging indicator, it can still give you some clear trading advantages by showing you the times that the odds are the most in your favor.......
The real sweet spot.......
TIME, time is the magic ingredient to pulling off a successful and profitable trade. There are market sweet spots, times when your pair is the most active. Those are the times that give you the biggest opportunity for profit. You want to capitalize on these times. Two good trades at these sweet spots will make your trading day.
Here is a chart that will give you an idea when your pairs are the most active:
http://www.mataf.net/en/tools/02-01-volatility.
The most important thing to remember about the 1 min chart is to get in, get your profit and get out. You can not ride a 1 min trade all day.................On the 1 min chart it iS imperative that you cut your profits when things are no longer going in your favor, because price can soon engulf your profits if you don't.
So in closing the things you want to keep your risk small are:
The sweet spot in time:
A proper trade set-up
Speed of execution.
YOU CAN DO THIS (^_^)
Get 10 Trading Lessons FREE
FINDING THE PERFECT ENTRY
While finding the perfect entry is the fantasy of every trader. There is no such thing. It is pure myth. If you get an exact top/bottom it is more luck than science. We have many indicators to help us to do this, but finding a good entry point can still be a challenge.While there are no perfect entries; there have to be entries that put the odds of success in our favor
I think the secret to getting a good entry is the waiting. I get more profitable trades than losses because I am willing to allow the trade to come to me. As a trader I do more waiting than trading. Many people don't get that, but the secret to getting your best market entry is in the waiting.
Here are some things that might help. Mark Yesterdays support and resistance , if you are near yesterdays support when you enter the market and price is moving in a bullish fashion, there is a high percentage that you can take your trade long for a good ride. If you exceed yesterdays high and you get a reversal, then you are probably in for a sweet ride to the down side.
If you are at a midpoint, you might want to wait for a pullback or bounce for a better entry. If you have enough distance from your support or resistance, then most of the time you are safe to follow that short term trend. This works best on a non trending or slightly trending market. In a trending bull market, sometimes you will dip down to just below the high of the previous day all the way down to the low of the previous day before price continues on in it's bullish pursuits. In a trending bear market, price might rally above the previous day's close and in rarer occasions all the way to the high of the previous day before reversing.
Never buy near yesterday's top or sell near the bottom unless you are in steps. If You sell near the previous days top or buy near yesterdays bottom, you are much more likely to get a break even trade if the market doesn't do what you expect.
Here is a great link that will show you roughly what your pair is going to do hourly and daily. It also shows you the times that your pair is most active:
This is only a guide, compare it to your charts to see how accurate it is overall.
Guys, you can do this and play with the big dogs, but you must educate yourself and employ the kind of discipline that puts you in the winners circle.
YOU CAN DO THIS (^_^)
Get 10 Trading Lessons FREE
http://www.ino.com/info/447/CD4033/&dp=0&l=0&campaignid=6
MarketClub BONUS, 2 FREE MONTHS! Click Here
Subscribe to:
Posts (Atom)
