1. Firstly, how do you know what the trend is? ALWAYS DETERMINE THE TIME FRAME THAT YOU WANT TO TRADE.
a. If the graph on the chart starts in the bottom left hand corner and ends in the top right hand corner, the market is going UP.
b. If the graph on the chart starts in the top left hand corner and ends in the bottom right hand corner, the market is going DOWN.
c. If you are still confused, print it off and show it to a 5 year old...they will get it right EVERY time...LOL
On each time frame, you use 300 candles / bars.
The trend is the BEST friend you will ever have in the FOREX market.
When you trade with the trend, even if you make a mistake, the market will get you out of your problem....If you make a mistake and you are fighting the trend ...YOU ARE STUFFED, BIG TIME !!!
2. Secondly, I think the round numbers (1.2900...1.3000...etc) are valuable. I only use minimal numbers of trend lines and the ONLY Fibonacci number I use is the 50% number....
That's the limit of my T/A...
I like to see a trend line broken (meaning price has closed underneath it) a couple of times, then a "confirmation" rally back to the resistance line and then another decline. However, remember that I use medium to long term time frames, so they don’t happen that often. That’s why I like Forex and the Euro....they are very "trendy" markets.
So, focus only on round numbers, trendlines or fib 50% for entry. So you see, the 50% retracement is a long way from where the market is now. You can enter by using the "round" numbers option ( and to a lesser extent, my trend lines) of my 3 methods.
KISS = Keep It Short and Simple
Note: I do NOT use any moving averages (or any other of the fancy measures). They are historical numbers!!!
The reasons that I use only Round numbers, trend lines, and the 50% Fib number is that the big players ALL use them. The more complex you make your trading parameters; the less number of people will be using them.
FOREX is one of the most "trendy" markets. That is, it trends MUCH stronger than say metals, oils etc in futures markets. The pair that is the strongest "trend" market is the Euro/USD. Trending markets are soooo much easier to trade than choppy, volatile and erratic markets
3. Thirdly, slow down... this market will be here for the rest of your life... DON'T BET YOUR BANK...
It is better to get rich slowly...than to go broke spectacularly fast.
4. Fourthly, a much wiser man than me once said that "If you find yourself in a deep hole, then stop digging”. Do NOT throw good money after bad money...stop and accept the loss... then clear you head so that you can see more clearly...
You should either
a. Close out the trade, and let the market go up/down....but after the market starts to retrace, then put your "short"/"long" position back on at exactly where you closed it out. This ensures that you get back into the trade on the way down (the Jacko "alternative method" to hedging) or
b. Close the position and take the loss. Then look at getting back into a "good" trade next time. This market will be here long after you and I will be dead, so there is no need to rush in and try to get all your money back in one day.
5. Fifthly, the is a tendency for newbie to "PANIC" when the market goes a little against them This is due to:
a. Probably scared to lose money
b. Probably undercapitalized
c. New to industry....therefore probably uncertain about your own abilities
d. Unsure that the trend lines, 50% Fib line and "round numbers" are as reliable as they are in practice.
e. Probably inexperienced in business and investment from a practical aspect
f. Probably unsure who to talk to for guidance
There is a solution to all the above...... It is called "old age"........
6. Finally, you ask why I prefer to use the longer term trades. The answer is that the shorter the time period, the more you are gambling and punting on tiny movements.
The smaller the time frame,the less they will follow the trend lines, Fib numbers and "round number" rules. The longer the time frame, the stronger will be the trend lines etc
Also, short term trading is emotionally much more draining.
a. If the graph on the chart starts in the bottom left hand corner and ends in the top right hand corner, the market is going UP.
b. If the graph on the chart starts in the top left hand corner and ends in the bottom right hand corner, the market is going DOWN.
c. If you are still confused, print it off and show it to a 5 year old...they will get it right EVERY time...LOL
On each time frame, you use 300 candles / bars.
The trend is the BEST friend you will ever have in the FOREX market.
When you trade with the trend, even if you make a mistake, the market will get you out of your problem....If you make a mistake and you are fighting the trend ...YOU ARE STUFFED, BIG TIME !!!
2. Secondly, I think the round numbers (1.2900...1.3000...etc) are valuable. I only use minimal numbers of trend lines and the ONLY Fibonacci number I use is the 50% number....
That's the limit of my T/A...
I like to see a trend line broken (meaning price has closed underneath it) a couple of times, then a "confirmation" rally back to the resistance line and then another decline. However, remember that I use medium to long term time frames, so they don’t happen that often. That’s why I like Forex and the Euro....they are very "trendy" markets.
So, focus only on round numbers, trendlines or fib 50% for entry. So you see, the 50% retracement is a long way from where the market is now. You can enter by using the "round" numbers option ( and to a lesser extent, my trend lines) of my 3 methods.
KISS = Keep It Short and Simple
Note: I do NOT use any moving averages (or any other of the fancy measures). They are historical numbers!!!
The reasons that I use only Round numbers, trend lines, and the 50% Fib number is that the big players ALL use them. The more complex you make your trading parameters; the less number of people will be using them.
FOREX is one of the most "trendy" markets. That is, it trends MUCH stronger than say metals, oils etc in futures markets. The pair that is the strongest "trend" market is the Euro/USD. Trending markets are soooo much easier to trade than choppy, volatile and erratic markets
3. Thirdly, slow down... this market will be here for the rest of your life... DON'T BET YOUR BANK...
It is better to get rich slowly...than to go broke spectacularly fast.
4. Fourthly, a much wiser man than me once said that "If you find yourself in a deep hole, then stop digging”. Do NOT throw good money after bad money...stop and accept the loss... then clear you head so that you can see more clearly...
You should either
a. Close out the trade, and let the market go up/down....but after the market starts to retrace, then put your "short"/"long" position back on at exactly where you closed it out. This ensures that you get back into the trade on the way down (the Jacko "alternative method" to hedging) or
b. Close the position and take the loss. Then look at getting back into a "good" trade next time. This market will be here long after you and I will be dead, so there is no need to rush in and try to get all your money back in one day.
5. Fifthly, the is a tendency for newbie to "PANIC" when the market goes a little against them This is due to:
a. Probably scared to lose money
b. Probably undercapitalized
c. New to industry....therefore probably uncertain about your own abilities
d. Unsure that the trend lines, 50% Fib line and "round numbers" are as reliable as they are in practice.
e. Probably inexperienced in business and investment from a practical aspect
f. Probably unsure who to talk to for guidance
There is a solution to all the above...... It is called "old age"........
6. Finally, you ask why I prefer to use the longer term trades. The answer is that the shorter the time period, the more you are gambling and punting on tiny movements.
The smaller the time frame,the less they will follow the trend lines, Fib numbers and "round number" rules. The longer the time frame, the stronger will be the trend lines etc
Also, short term trading is emotionally much more draining.
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