Another day’s trading. More negative results. The chart and results are below:
Trade 1/2: Divergence between CCI and price at a psych level provided two good reasons to go short here. Which I did. However, devoid of any kind of plan I quickly closed the trade after some volatility and missed out on a maximum potential downswing on 49 pips. How many times do I need to tell myself: A well-reasoned entry is 1/3 of the required info to actually enter a trade. Stops and targets also!! Second trade was a frustrated attempt to re-enter and catch some of the pips my first trade should have garnered. So an absolutely classic noob error. Of course the result was a loss.
Trade 3: I like this trade slightly more. At least it had a reasoned entry, stop loss and profit target. I think I got a tad unlucky here as I set the order at roughly 14:30 and the second pass at the 13200 level missed my entry price by less than 2 pips, and then retraced by 27. Perhaps the lower low of the second retracement from the 13200 level should have made me reconsider leaving the order active for the third approach. I don’t know. Regardless my order was finally taken and I was stopped out.
Thoughts from the day:
I still lack a trading plan.
I have been caught between two very different trading styles(OTA S+D approach and 4Xbird approach). I still do not understand either fully.
I have been trying to apply the concepts of supply and demand based trading on the time frames that scalpers use. I think the amount of market noise on these charts makes S+D trading less effective. I will be using higher time frame charts from now on.
Think I should try to learn one at a time. OTA S+D approach will give a better grounding imo so I intend to learn that one first.
Will probably spend a day or two trying to mark supply and demand levels on higher time frame charts than I am currently trading.
Tomorrows Goal:Reasearch writing a trading plan and place some SUpply and Demans areas on various different currency pairs-YOU DO NOT HAVE TO TAKE ANY TRADES TOMORROW!!!
On Wednesday February 1st, 2012 at 03:19PM by Brad - Like - 1 Person
I find what you are doing interesting. Each time frame provides a piece of the picture. But, disregarding the higher time frames, I tend to think, stops most short term traders from succeeding. Taking a look at what is going on below in UsdCad. The green lines are the weekly. The orange lines are the daily. The red lines are H4. Take a look how the weekly broke out of the bottom of the weekly lines. Then, it went back up and hit the lines. Then, it broke lower. Is that a coincidence? The point is that, I believe, that all time frames provide a piece of the picture. Say you were very high on top of a mountain in which you could see the ground. If you saw a bird, it would be right there. If you were to try to see an ant on the ground, would you be able to see it? So, let's see the 1 minute time frame as the ants. And the weekly as the bird. Aren't they all a part of the total picture? Anyway, just some thoughts.
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