Cheers.So you're mostly a Currency Trader,then ? Someone did tell me once that Currency Trends are far more reliable than Stocks,hence easier plot-and-planning.Anyway, I'll put that in my back-pocket.Always learning...
currency and indices....shares are a complete waste of time and very high risk when using ssf's or cfd's. I have just looked at the ozzie / gbp and jpy....all 3 have triggered very profitable trades on the 5 min trend system....hope you making loads of moola.
at 10 points profit i move stop to breakeven.....from there on I will stop on a close out of SD1/2 or a close above 10 ema or if only a small move a close back above 20 ma. When I say trade the price i mean ignore all news etc etc....the price is telling you where its going.....follow it.....eg - a break through res or supp, the completion of a pettern, a move through key ma's......making a new high or low....price is always talking yet most traders are only listening to themselves, the news or their indicators....all are useless.
As ninja says trade the price, ive been trading for over 4 years now and have day traded the alsi and the dow and now my favourite Forex,I much prefer forex but thats just my opinion, now it took me a while to understand what TRADE THE PRICE means, so ill elaborate , when i look at trading the price it does not mean a figure as in say a R100, that means absolutely nothing. When someone says trade the price you need to look at resistance and support levels and if youre trading forex also pivot points. once price reaches one of these Support/resistance levels it will in most cases react, so how do we determine what the price is telling us at those levels, its quite easy i use candlesticks, ill set out an example lets say on a 1 hour chart we have our support/ressitance lines drawn and when the price reaches the S/R levels and forms a juicy shooting star i start to take notice if the next candle closes below the body of the shooting star then ill look to go short, that is what is meant by trade the price.You need to understand support and resistance, you need to understand candlesticks, you need to look at at least 3 time frames when trading, and you need a lot of trainning, but its not all that difficult if you aply yourself, i only trade price action on support and resistance, if the price is in between support or resistance i sit on my hands until it reaches those levels. of course all of this is my opinion, but it works wonders for me. cheers.
chartist also uses pivot points and S/R in his trading, price reacts at R/S levels and that is the point where price is the easiest to interpret, anywhere in-between is much more difficult, where talking day trading here. when i trade i look for confluence, if 2 or more signals line up then im in, example price comes to a support level and forms a hammer and STC is oversold , for me thats a signal to go long, keeping in mind where the higher time frame S/R levels are. For day trading forex i use signals on the 15m charts. So in the example above you have 3 signal, oversold, support, and the price signal in the form of a hammer.