Get started

Risk Management

How To Trade High Impact Expected USD News (Patience)When USD news comes out before a 4 hour candle closes, I use discipline, patience and wait. A Lot of high impact expected news hits at 5:30 am (PST/USA) when New York session opens. This is London session and New York session overlapping 4 hours which I think is best 4 hours of day to trade. My Rules Area: (USD high impact expected news) 1) Use either a 5 minute or 15 minute time frame to trade on. 2) I use forexfactory.com for my news and results. 3) Use a highly traded USD currency (like Eurusd, UsdCad, UsdChf,Gbpusd or Usdjpy) to trade with. 4) If high impact news hits at 5:30 am---- then EURUSD example on chart (8/12/21 PPI mm) --- comes in---> refresh page and get results. Results were USD positive: actual 1.0% and forecast was 0.6% so was higher then forecast and/or expected, so USD shows strength, if you are trading the following pairs EURUSD , USD,AUD, GBPUSD, should go down, USDCAD,USDCHF & USDJPY should go up- related to USD high impact news results. 5) If high impact expected USD news hits prior (5:30 am PST/USD) to a 4 hr candle--I WAIT for top of hr of 6:00 am -10:00 am candle for any new trades. Why? let both spreads calm down to a normal range and all of the scalper traders clear out, to set up any possible further trades. This gives you 30 minutes to set up whole trade: Entry, Stop Loss and Targets for this. Remember EURUSD only has an ATR of 53-60 for last 5 weeks, so stops/targets are close. Chart set up is: 5 stop loss vs 14 pip target. Note high impact USD expected news was positive, so set up a bearish or sell trade with EURUSD. *Trade was entered on reversal of 5 minute DOJI candlestick right start of new 4 hour/6:00 am (not shown related to short time frame for TV/public to look at). I use both 5 minute time frame and 15 minute time frames to trade high impacted expected news on. Note: Price Action & Risk Management ALWAYS!!!
Education
by Anbat
Trading Psychology Is Worth 95% To Overall Failure or SuccessThe Cold Hard Truth "You Are You're Own Worst Enemy" You will probably develop technical skills required in placing trades and learning money management. But you constantly end up sabotaging yourself. What Is Trading Psychology? Knowing when to quit and when to push Using a stop losses Hitting targets Controlling greed, fear and hope *Discipline, Discipline, Discipline! If you want to be 10% successful FX traders then do the following: Have a trading plan and view, have money management rules, have emotional control, each trade is unique and has nothing to do with last trade, you do not revenge trade, you only trade during certain times not 24/7 & review trade results. Do opposite of above if you are part of the FOMO traders whom do not treat Forex trading as a probability based business but as gambling. Note: If a Forex trade is not doing what and when you want it too, then FIRE it ( get out of it), you are the BOSS. Have a detailed trading plan. More specifically have a detailed set of money management rules within a trading plan to take control over EMOTIONS.
Education
by Anbat
8 WAYS TO IMPROVE YOUR TRADING | Tips From Experienced Trader 🤓 In my years in trading, I’ve been approached by the new and semi-experienced traders for help and advice, and that's how it's supposed to be. Those that «have become» help those aspiring ones. Then I thought that tens of thousands of people are joining tradingview every day, and most of them are beginners and inexperienced traders, So I decided to share some knowledge here with you today. Condensed wisdom of years in trading. 🦉 You see, trading is unique in that it is accessible to people of all walks of life. Your previous education, social status, and other barriers, that might prevent you from entering some industries are completely absent in trading. The only tool you need is your brain, as trading is essentially an exercise in pattern recognition and our cognition is based on pattern recognition and the endless chain of association.🧠 So the CORE is your ability to learn and recognize patterns, and everything else gets added like pearls on the string. Master these KEY points below, and the Gods of trading might smile at you! ✏️🗒️ MAKE A TRADING PLAN - Develop a strategy! This bit seems obvious, yet so many traders arrive to this idea only after losing their first account. Don’t be like that, and you will lose your first account much slower. Research all the main strategies that are out there, and dive deep into the one you found appealing(for any reason). This step might take a year or even more, yet, trust me, this will be time well spent. I would advise simple multi-timeframe top-down technical analysis. I might be biased, as that’s the strategy I use myself, but learning it will give you the basics that you will NEED ANYWAY, whichever strategy you will end up using later. Also, I would choose it because it is intuitive and simple to use. You will be able to identify key levels on the chart after a week of staring at the charts and then work your way up, polishing entries, adding indicators if you like. 🔁 Review your plan after every trading session! After you started trading, even on a demo, DO YOUR HOMEWORK, or else all the trading that you do is in vain, and you will NEVER LEARN. Start your day by reviewing the previous day’s trades, as you will have a fresh perspective that isn’t clouded by emotions of the moment. This WORKS WONDERS! Have a diary with trades, write down your thought process of how you arrived at the particular trade. Then write down your assessment of the next day nearby. Several months' worth of a journal like that is a GOLD MINE, where you can mine data, looking at what works, what does not, etc… ⚠️ DON’T RISK MORE THAN YOU CAN AFFORD TO LOSE - Protect your positions! USE STOP LOSS and place it the moment you entered the trade. Don’t let your mind play tricks on you. As your inner voice will tell you «Why SL? I will close that trade manually, If I see that I was wrong» Nah, you won’t. You are kidding yourself. So DO use SL, don’t give your money to the market makers! 💯 Don’t risk more than 5% of the account! Now that we know we need to use SL, I strongly advise you to never risk more than 5% of your account in one trade. In fact, I do not risk more than 1% per each trade myself. Use a lot calculator to help you determine how much you are risking in dollar value per trade. It is a bit boring, but will save you a ton of money! And who said trading needs to be fun, huh? You are a grownup and it's your job! 😌 BE DISCRETE AND DISCIPLINED -Once you have the system, don’t overthink it! After you mastered your system, backtested it on multiple pairs and begin trading on demo, stop worrying about whether the strategy is good or bad. You chose it, it showed results on the backtest, now get out and test it on the market. Time will show if your choice was correct. 📜 Follow the rules and reflect on the results later! Once the system is chosen, make the rules that are as simple and clear as possible so that you could approach each trade with a ready-made algorithm. This will take a lot of stress off your mind. 💢 CONTROL YOUR EMOTIONS - Too much anger or excitement alike hurt your trading! Having a strict algorithm helps massively, and when trading you need to learn to abstract yourself from the monetary values on the screen. These are just numbers, and you are playing a game of probability, so there will be winning and losing streaks. Learn to treat both with indifference. 🌁 Play it cool! Trading is a battle of wills. Whoever has the hardest balls wins. So be cool! ⌛️ BE PATIENT - Keep your eyes on the big picture! When even considering trading as a potential career, please accept the simple fact that there will be losses, a lot of them, all the time. You will NOT be making money for quite some time. Accept it as part of the game and it will be much easier for you physiologically. If you come with the make easy money fast mindset, you will lose! 🏅 Winning takes time! I’ll stress it again, learning trading will take a lot of time, and there are some hard times ahead of you, so prepare for this beforehand, and no, you are NOT unique or special, so you will have to go through the same trial and error ordeal as others. There are no shortcuts. ✔️ ACCEPT YOUR LOSSES AND MOVE ON - Remember that you are in this for the long haul! When feeling down because each trade this week was a losing one, imagine yourself free from the location, from your job, from all the constraints that usual people have, and remind yourself, that that’s exactly what you are working towards, because the moment you can make stable returns, you can multiply your income by a factor of x10 overnight. It might be a factor of an x100, it just depends on how big your balls are. So whenever you want to quit, think of what life could have been like if you persisted! 🚫 A loss is a part of the learning process! You will lose multiple accounts. There is no way around it! This is your way of learning, and no one has created a different one so far. You might be as good as a God on demo, but the moment you enter the real world emotions kick in and you will have to learn a lot again. So when entering trading, be prepared to pay the market a fair price for educating you. And remember that the reward is much greater still! 📰 READ THE NEWS - Current events can affect the markets! This one is certainly not for beginners! If you start doing that from the start, it will be too much info for you and you will get lost in the constant swirl of hot air that surrounds the markets. But once your strategy is good enough and you are beginning to be profitable, you might want to start paying attention to the key events and dates that might have an effect on your trading. I never actively trade fundamentals myself, but who said that you shouldn't? 🤏 Keep in mind big political events that can cause big moves! This! If the FOMC meeting is tomorrow, you better close all your positions today, because whatever analysis you made might get invalidated by what the FED minutes bring to the market. We are playing probabilities that we can predict based on past experience, but whoever is trying to predict the FED and the market's reaction to it is fooling themselves, so once such a whale enters the room our ability to predict rationally vanished, thus we need not trade that day at all. And the FOMC is just an obvious example. Important statistical data such as CPI, jobs, etc might affect the pair you are trying to trade, and you better know about it. As a famous trader’s saying goes «Not being in the Market Is a position too» 🆕 UPDATE YOUR TECHNOLOGY - Slow internet connection or an old computer might make you miss your trade! There is a side note yet do not neglect your workstation. Don't let it be dirty or messy, and make sure your equipment, i.e. a computer or a smartphone work properly. Missing a trade because of a bug is SUCH a pain! You don’t want that, right? 📈And not trading update charts is even worse as some level breakouts can happen in seconds. That one is less relevant today thanks to tradingview charts being awesome, yet always make sure that the data on the chart is given to you without a delay. Trading a setup that ain’t there anymore is not good… 🦉📚 These are the «words of wisdom» that came to my head today, and I really hope I helped some of you get back on track, or begin your path as a trader with a slightly better understanding of what is ahead of you. ❗️ JUST REMEMBER: IT IS POSSIBLE! But it will take time, money, and effort, so brace yourselves, and may the odds be always in your favor! 💖Adios, Amigos! Give me a like and comment, if you agree with what I said!💖
OANDA:XAUUSDEducation
by UnitedSignals
21
How to Assess Your Trading Performance|Consistency & Perspective Hey traders, 👨🏻‍💻I am trading forex for more than 8 years. During the last 5 years, I am actively posting my analysis & trades on TradingView. Growing my audience, it was very peculiar for me to contemplate the reaction of my followers to my trading performance. (by the way, we must say thanks to tradingview where the posting system does not allow to delete the posted trades so that each and every author is easily backtestable). 👩‍👩‍👧‍👧👨‍👨‍👧‍👧Those who follow me at least a half a year know that occasionally I have winning streaks when 9 out of 10 of my forecasts play out nicely. Sometimes, however, I face the drawdowns and catch a sequence of losing trades. And sometimes the performance is mixed with the probabilities being on my side slightly. 🥇While the reaction to winning streaks is quite predictable: I am praised by the members and get nice tips. The reaction to losing streaks is worth discussing in detail. It turned out that quite a huge portion of a trading community has a completely wrong understanding of a trading nature. 🤬The single loss is considered by them to be a failure, a mistake. Facing the sequence of losses, they quickly become negatively biased to the person that they have just recently praised. With the continuation of a drawdown, they blame the analyst and launch a barrage of criticism towards him. 🔍Then they are in a search again. They are looking for a trader that will be constantly right. Catching the new one during a winning streak, the cycle repeats. At some moment such people become disappointed in trading and drop this business... ❗️Losses, losing streaks and negative days/weeks/months are inevitable. If you want to become a full-time trader, you must be prepared for the fact that trading won't give you a stable income. Your equity curve will be in constant fluctuation. Your goal in this game is simply to lose less than you make. You must become disciplined enough to keep following the rules of your trading strategy no matter what. You must learn to be consistent in your actions. You should learn to perceive losing trades not as a failure but simply as the moment when the market takes its share. Feeding you, giving you the opportunity to make money out of thin air, the market definitely has a right to claim its dividends from you. ⭐️Change your mindset, learn to lose and the magic thing will happen. ❤️Please, support this idea with a like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
28
High Impact Or Medium News? Use Patience I have seen high impact news strategies from 1 minute to 1 hour online, if you are interested in this kind of trading please investigate further. Always use great risk management and stop losses on every trades- when high impact news hits, that currencies BASE pair will determine what direction its goes, negative down and positive up. If I trade high impact news, wait for at least 5 minutes or maybe to end of that 1 hour or 4 hour candle that news is coming out on too trade. Like example of USDCAD on Friday high impact news was positive for the USD (base currency) NFE, Unemployment Rate while while CAD impact news was negative Employment Change and Ivey PMI. Per chart, for next 3 to 4 hrs price action was one sided with bulls controlling pair- it there a way for you to have gotten a piece of this? Per chart example: 13 pip stop loss 60+ pip target/profit with right risk management would have worked great. Please look on forexfactory.com for other high impact news events then look at Trading views charts and mark them up on how you could have made a news related trade and profited. Best way to trade medium or high impact news is wait at-least 5 minutes or until end of that hour or 4 hour candle is done, too set up a possible trade. When your set up is with right pair, price, session & time- trade it.
Education
by Anbat
The 5 Steps To Becoming A TraderThe 5 Steps to becoming a trader Step One: Unconscious Incompetence. This is the first step you take when starting to look into trading. You know that its a good way of making money because you've heard so many things about it and heard of so many millionaires. Unfortunately, just like when you first desire to drive a car you think it will be easy - after all, how hard can it be? Price either moves up or down - what's the big secret to that then. Step Two - Conscious Incompetence This is where you realize that there is more work involved in trading and that you might actually have to work a few things out. You consciously realize that you are an incompetent trader - you don't have the skills or the insight to turn a regular profit. Step 3 - The Eureka Moment Towards the end of stage two you begin to realize that it's not the system that is making the difference. You realize that its actually possible to make money with a simple moving average and nothing else IF you can get your head and money management right You start to read books on the psychology of trading and identify with the characters portrayed in those books and finally comes the eureka moment. Step 4 - Conscious Competence You are making trades whenever your system tells you to. You take losses just as easily as you take wins You now let your winners run to their conclusion fully accepting the risk and knowing that your system makes more money than it looses and when you're on a loser you close it swiftly with little pain to account. Step Five - Unconscious Competence Now we’re cooking - just like driving a car, every day you get in your seat and trade - you do everything now on an unconscious level. You are running on autopilot. You start to pick the really big trades and getting 200 pips in a day doesn't make you any more excited that getting 1 pips.
Education
by Anbat
The 10 Golden Rules Of Forex TradingForex markets can be volatile and uncertain at the best of times, and inexperienced traders can easily end up chasing their losses. Yet it is precisely this volatility that gives you the potential for major profits. These 10 rules of Forex trading may give you the best chance of landing on the winning side. Please remember, however, that trading carries a high level of risk to your capital and profit is not guaranteed. The 10 Golden Rules Of Forex Trading: 1) Avoid Forex trading software that claims to guarantee returns. No Forex software can assure you of winning trades. 2) Always use a demo trading account. We have all heard that practice makes perfect, and it is true. 3) Forex trading can be highly stressful- avoid emotional trading. Whenever real money is changing hands, the risk of loss is ever-present. 4) Invest in a solid Forex education. Knowledge is power-we all know that. Forex tools will improve your trading performance. 5) You can learn to trade Forex successfully. Learn from reliable Forex strategist or mentors, you tubers, your success is far greater. 6) Manage your Forex capital wisely. Forex markets change hourly, session or daily characterized by high volatility. Use stop loss, entry and exits always. 7) Manage your investment-per-trade wisely. This is a crucial aspect of Forex trading. Never invest more than 2% of your account on one trade. 8) Use common sense. Strong currency against a weak currency. Major news. Use common sense when judging the effect of current/upcoming events. 9) Ensure you use risk management strategies at all times. Limit your amount you trade per position. Using knowledge, signals and technical strategies. 10) Be especially cautious about overextending yourself with leverage. Leverage is a two sided coin- can magnify profits and losses. By following these 10 golden rules to Forex trading, you should find yourself in a much better position over the long term. Your focus should always be on trading currency pairs that you understand, in a way that does not expose you to too much risk. Read up about market conditions likely to impact upon the currencies you’re trading, limit your leverage to an affordable amount, and use a demo trading account to understand the market dynamics.
Education
by Anbat
Compounding "Most Powerful Force"★ Compounding interest is a powerful investment tool. By reinvesting your trading earnings, you can significantly boost your returns over the long term. Compounding refers to interest which is calculated not only on the initial principal but also the accumulated interest of prior periods. Compound interest differs from simple interest in that simple interest is calculated solely as a percentage of the initial principal deposit. As a result, compounding accelerates returns as you are earning not only interest on your principal, but interest on your interest. Anyone can benefit from compounding interest. The longer your money compounds, the faster it grows. For example, if you had a $5,000 Forex trading account earn 2% per day for one year (260 business day) and just let account grow, you will make over $800,000.00 US within the 1st year. You can accelerate your earning power even more by contributing principal payments to your accounts periodically. Even small deposits will realize significant benefits with compounding over the course of time. This is just by trading Forex, if you contribute additional monies, then account will grow quicker. "Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it."- Albert Einstein Note: There are free daily compounding calculators online- for you too put your own account size in, % in, days for see how much compound interest would substantially and quickly increase your Forex trading account- just let your account account, with having a plan, risk management and patience.
Education
by Anbat
The 80/20 Rule (Work Less Make More)The 80/20 Rule: 80% of your Forex results (profit) will come from 20% of your setups (work). This is why in Forex you should only trade high quality setups with the right pair, at the right price, in the right session and at the right time. The 80/20 Rules applies to work, life, business and trading. Question is: In Forex scalping or day trading> What will make the largest difference for your increasing profits? Then do more of that in trading. The 80/20 rule can change your life! Focus on what give you the most results (80%) while not focusing on useless activities (20%). Here are some examples of The 80/20 Rule: (You can make your own 80/20 rules- which will help you in life, work, play and trading) 80% of the effects come from 20% of the causes. 80% of results come from 20% of effort. 80% of Forex profits come from only 20% of all trade setups. 80% of profits come from trading 20% of all setups in London NY overlapping session. Financial markets moves 80% are technical and 20% fundamental. If you have a plan, have a routine, have a journal, have right physical frame of mind (emotional, focus, discipline, patience control), use right risk management & only trade high quality setups in Forex, this will give you best risk reward and win rate% and give you more profit & time to enjoy life. Focus on trading only your best setups. It is a way of thinking about your time as well, it applies quite well focusing on time management. If you think about it, if you can work out what the most important 20% is for what you are trying to achieve you will probably get done 80% quite rapidly. Applying a simple tip to make bigger profits by applying the Paretto Principle or 80/20 Rule to increase profit potential and reduce risk. The rule is simple, works and helps you, focus on the best trade set ups for long term Forex trading success.
Education
by Anbat
Risk On-Risk Off (FX Retail Trader)Risk On Risk Off: This is often abbreviated as 'RORO': *Note: Every session can change from risk on risk off (Sydney-Tokyo-London-New York) What Is Risk-On Risk-Off? Risk-on risk-off is an investment setting in which price behavior responds to and is driven by changes in investor risk tolerance. Risk-on risk-off refers to changes in investment activity in response to global economic patterns. During periods when risk is perceived as low (greed), the risk-on risk-off theory states that investors tend to engage in higher-risk investments. When risk is perceived to be high (fear), investors gravitate toward lower-risk investments. 'Risk On':*GREED This refers to periods when there is more confidence in the general market and investors want to pursue more risky or progressive trading instruments. An example of such a currency in Forex is the EUR, NZD, CAD, GBP and the AUD. During periods of confidence investors will often sell their 'safe' USD to buy the more risky or progressive instrument, such as the EUR or NZD etc, in the hope that they will benefit from a surge the latter's value. Selling of the USD results in over supply and a fall in its value and the purchase of the AUD results in a demand and consequent rise in its value. In 'risk on' periods, USD usually declines in value relative to many other currencies such as the AUD or CAD. Risk Off':*FEAR This refers to periods when there is more fear in the market and investors want to pursue, or invest, in safe-haven type of trading instruments. Examples of a safe haven currencies include the USD and JPY. During periods of economic uncertainty the USD is viewed as a relatively safe-haven trading instrument and when traders buy the USD then the value of the USD increases. 'Risk Off' periods, USD usually rallies relative to most other currencies. As a consequence USD index, the USDX, increases as well. Euro dollar index, the EURX, usually declines in 'risk off' periods. Yen is viewed, as a safe haven instrument as is Gold. Knowing risk-on/off concept gives traders a competitive advantage. Very helpful when trying to avoid over trading, as correlations should help to do that.
Education
by Anbat
ATR indicator (Always Use This)The ATR (average true range) indicator is the single best indicator that all FOREX traders should be using for all trades (use it or lose it). You can put ATR indicator on your chart always and/or just glance at number (in upper left) and take it off your chart, just have it handy always. What is the ATR: (Default setting (14) works fine for me in FX trading. It tells you how many pips the currency pair has moved, on average, in the past X amount of candles. Why you should be using ATR 100% of the time on every trade: 1) The ATR is crucial for Money Management 2) Money Management is crucial to winning *Know that money management is what will separate you from the losing traders. How To Use ATR In Setting Up Trades: (Never Trade Without It) 1) To know how far back from entry price away your stop loss, which is either ATR x 1.5 (works mostly) or ATR x 2.0 (if you want larger stop loss) 2) To know where to place profit targets and/or targets, 1st target is same as risk or stop loss is and 2nd target is double what the stop loss is. When you are describing Forex RISK, instead of saying unit size or dollar amounts, instead say How much are you trading per pip? Using the ATR will prevent you from getting stopped out of more trades, will keep in more trades. The professionals use ATR for stop losses and targets. ATR can be used on any time frames, but look for other evidence like price action at support and resistance areas, fib ret (golden zone) 50%-61.8%, pivot points, doji candles, harami setups, and engulfing setups to use ATR indicator for possible trades.
Education
by Anbat
4
15 Min Chart (ATR + BB indicator) Part 4 of 4Please practice using the Forex position size and risk calculator on all trades you make. Noted on EURUSD 15 minute chart are: Four possible entries into a sell trade on Friday - Low volatility EurUsd has last 5 weeks or 56 ATR [er day. (Hard to scalp or day trades with low volatility pairs) - I used minimum of 10 stops on low volatility pairs, but consult with ATR and either use 10 pip stop loss and/or X 1.5 to get stop loss to use This is a scalping or day trading trading strategy, quick trades. Please practice using position size and risk calculator to get: 2% risk, trading lot size, stop loss and target(s) on 15 minute time frames, I look for 1:2 risk reward over higher, how much profit you made and how much one pip move is worth? You need to know this so you can manage risk and set appropriate stops and targets for low volatility and high volatility pairs in Forex. IF you have a need to be part of the masses and trade EURUSD, then put your efforts into when both London session opens to London session ends. Why, this covers Tokyo/London overlap and highest most liquid and volume 4 hour time which is London/New York sessions overlapping period.
Education
by Anbat
2
1 Hour Chart (ATR + BB indicator) Part 3 of 4On 1 hour and 15 minute time frames, I would be looking for minimum of 1:2 RR setups. Both noted examples on EURUSD chart of 1 hour charts you both: 1) Setup at end of Tokyo session (use last 1 hour red candle open) for entry into buy trade of next candle, using ATR x 1.5 for stops and targets, risk 18 pips vs 36 pip reward setup. 2) Setup at end of Tokyo session (use last 1 hour red candle open) for entry into buy trade of next candle, using ATR x 1.5 for stops and targets, risk 12 pips vs 24 pip reward setup. These trades are either scalp and/or day trades, using both BB indicator and ATR indicator for timing purposes and stops and targets. If price is above BB 20 ema (yellow line), then look for buying trades and if price action is below BB 20 ema (yellow line), then look for selling trades. NOTE: From Chart set up of both trades: Please find a position size and risk calculator: Your account size, 2% risk- using noted stop losses and targets- How much profit did you make? What is your trading lot size? How much USD money is one pip move worth? Do this on all trades you do for risk management. PRACTICE on Sell trade noted on right side of chart, using 10 ATR, find stop loss, targets, RR setup, trading lot size, 2% of your account, etc...
Education
by Anbat
4 Hour Chart (ATR + BB indicator) Part 2 of 4On daily and 4 hour charts, I would only be looking for 1:1 Risk Reward setups using ATR and Bollinger Bands. This is if you are day trading or swinging within the same week time period. 1st example trade (on chart): Uptrend/Bullish trend this past week 1) Look for price action to swing low (make a 4 hour red candle) that hits BB center 20 ema line (yellow), set up a 33 pip stop loss at open of that red candle related to a 22 ATR x 1.5 pips = 33 pip stop loss, entry would be at open of that same red candle and exit/target would be 33 pips above enter. 1:1 RR set ups are great, especially because they win get you high win rate %. This trade would have been done in same day for a 33 pip profit. 2nd example trade (on chart): Uptrend/Bullish trend this past week 2) Look for price action to swing low (make a 4 hour red candle) that hits BB center 20 ema line (yellow), set up a 36 pip stop loss at open of that red candle related to a 24 ATR x 1.5 pips = 36 pip stop loss, entry would be at open of that same red candle and exit/targets would be either at 1st target of 36 pips next day or during two days 2nd target at 72 pips (noted on chart). 1:1 RR to 1: RR set ups are great for 4 hour and daily time frames, because they will get you a high win rate %. 4 Hour Time frames are mostly for swinging at least for one to three days, if you close out all of your trades within the same trading week. Your should practice calculating lot sizes and risk on these two noted trades, using your account balance, 2% risk and atr/pips noted on trades.
Education
by Anbat
2
Use ATR (To Set Stop Losses & Targets)ATR (average true range) is I think the best indicator(period)- related to setting your stop losses and targets. This ATR indicator should be part of your plan, trading edge and strategy to utilize on every trade you do. This is 1st article of four articles related to this subject: Note: Will be doing three more articles on using ATR on lower time frames: 4 hour, 1 hour and 15 minute in the future. Using ATR On Daily Chart (see example here) On chart notice the following: 1) Doji (undecided daily candle at support, low volatility candle) - happened on a Friday 2)Notice 9 day bearish trend prior to daily doji candle 3) This daily doji candle had an ATR of 60 rounded up (fyi). On daily I keep ATR and Stop Loss & Target the same for any daily trade setups 4) Stop Loss/Risk: 60 pips 5) 2% of $5000 account is $100 USD risk on trade 6) $1.66 PER PIP MOVE on EURUSD or trading lot size is: 0.16667 6) This trade would have made you from $100 to $200 USD within this last week (conservatively), by Thursday and/or Friday. (4 to 5 days). Can you wait? Do you have patience to trade daily? Larger time frames are easier to trade then lower time frames, but it is all relative to personality.
Education
by Anbat
How To Use Position Size & Risk Calculator (On All Trades)Use Position Size and Risk Calculator to easily calculate recommended lot size, using live market quotes, account equity, risk percentage and stop loss. What are Lots: Standard 1.0 Lots: 100,000 Units Mini 0.10 Lots: 10,000 Units Micro 0.01 Lots: 1,000 Units Nano 0.001 Lots: 100 Units In Forex a Lot defines the trade size, or number of currency units to be bought or sold in a trade. One Standard Lot is 100,000 units of base currency. Most brokers allow trading with fractional lot sizes down to .01 or even less. Fractional lot sizes are sometimes referred to as mini lots, micro lots and nano lots. How To Use Position Size & Risk Calculator: (Select and/or impute your particular details of any pending trade)* THEY ARE FREE ON LINE!!! Currency pair: Traders can select from Major Forex crosses, Minor pairs. Stop loss (pips): Traders should input the maximum number of pips they are willing to risk, or lose, in a trade, to protect the account equity in case the market goes against their position. Account balance: Pretty straight forward, traders just need to input their account equity. Risk: The crucial field of this Position Size and Risk Calculator! In this field traders can select from a risk percentage or any amount of their account base currency ($2, $20, $40, etc). As a guideline, professional traders do not risk more than 2% of their account equity per trade. This technique will allow for traders to last longer with their trading careers, and eventually, also to recoup from previously losing trades. Now Hit the "CALCULATE" button The results: The Position Size and Risk Calculator uses a market price live feed with the current inter bank rate (in a 5-digit format) and it will display the selected currency pair price Calculator displays the amount of units that that a lot represent; how many trade units and finally the portion of the account equity at risk, or the value of the position, in this case $100 USD.
Education
by Anbat
5