Get started

Losses

AUDJPY (3d) - What a monster! I've often seen head and shoulders patterns that take on strange shapes. It is not common to find a very neat head and shoulder pattern. Well this one caught my eye. It's a weird one. On the left is three humps combining into the tradtional shoulder. On the right is some kind of shoulder that doesn't appear well formed on 3D time frame, though more clearly visible on 1D time frame. Head and shoulders are not predictive and require a lot of skill to play out. There are often times heavy losses, and a retest of the base is not uncommon. I don't suggest that 3D time frame is traded. It's sometimes good to get a steer from a higher time frame. Disclaimers : This is not advice or encouragement to trade securities. No predictions and no guarantees supplied or implied. Heavy losses can be expected. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, or miss opportunity, kindly sue yourself.
by Captain_Walker
JOURNEY SOUTH?The most important part of trading - especially with true trend-following - is stalking your prey very very carefully. The next is controlling loss. Trend followers suffer heavier controlled losses - but also enjoy far greater gains - than those who rely on targets-based methods of trading. It is certainly not for 'everybody'. Only about 20% of all traders are true trend followers. Trend continuity trading is not trend-following. Of high importance with 'stalking' any particular trend - because losses can be heavier - is the entry point. For example the ideal entry point in the chart snapshot would have been close to 26000. Anything much lower than that means risking heavier losses. I'm often asked if A, B, or C instrument is heading north or south. Most traders when they ask this sort of question are not thinking in terms of time frame. They're mainly looking at price and thinking R:R ratio. In trend following all you can do is control the loss. You do not know how much you may eventually gain. That's why it's very scary! But this is not a tutorial on trend following techniques or strategy. Overall though, one just has to pick a trend control loss and follow on that chosen time frame. It could be a lowly 1 min trend to a higher 1H trend - whatever you want so long as you can take the loss without flinching. I almost never get involved with higher than 1H trends these days. For those new to trend-following, from my experience, a simple 5 min trend can take up to about 2 days before it reverses. A 15 min trend can last several days. 1H trends can last a couple weeks. Of course, they can be very short lived too. Trend followers will also use harmonic patterns and other methods to assess key entry points. So 'we' don't have a problem with other methodologies. We'll use anything to get a pound of flesh out of the markets. But following the trend is the big thing. Disclaimers : This is not advice or encouragement to trade securities. No predictions and no guarantees supplied or implied. Heavy losses can be expected. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
FOREXCOM:US30Education
by Captain_Walker
<Education> A PRIMITIVE Reason To Your ID Losses...Hi traders, let's look at a fact so simple you probably never took it into consideration! Most of the traders with at least some experience will acknowledge the key to profit is psychology rather than a magical pattern. Time plays a big role in our thought process. Let's combine time with basic math: Each stock has it's own "tempo" which of course varies, but we can eyeball it. Let's say it moves 1 dollar every hour. Your SL is 50c and you are using 2:1 RRR. See the point? If it hits your SL, it will be much quicker than if you are right but have to endure the hour-long journey to your Profit Target. This is one of the reasons after a few losses you get the feeling "The market is after me!! Every time I enter it kicks me right out!". Thank you for your attention and I hope this little piece helps you rationalize some of your fears. Tom | FINEIGHT
AMEX:SPYEducation
by Fineight
2/19/20 The Week so FarI'm learning to accept these harder weeks as the better opportunities for me to become a great trader. Of course I love it when every position I take jumps out at me and earns me a profit, but I remember a point when I would avoid the charts entirely after a string of either losses or missed opportunities. It's so important to continue to trade with an unbiased approach as you look to identify good trades rather than "profitable" trades. As I always mention, this trading game is all about probabilities and consistency, money is just a byproduct.
by Newsense