You should do some testing on the volatility of instruments during Asian hours. I would stick to Asian index futs, if you depend on any form of range expansion to make money you are gonna get chewed up trading FX during Asian hours.
Will have a look,, thanks. AUD during our market hours seems to be ok. but will investigate.
What are you trading?
If price can hold this level then I think we could push up a lot higher, potentially 29150ish. alternatively if we break down from here there could be a nice short opportunity if we retest 845ish.
The last few weeks have been okay for me, pretty much just breaking even. 1.1 steps forward 1 step back lol. Still feel like I'm slowly making some progress on reading the markets.
Today I have this green line that price bounced off going into Fridays close as the last line of defence. I think if this breaks then prices will go a lot lower.
A big retracement of fridays US news up to 27820ish would be nice
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It’s tricky. One of the best things for me is as soon as I enter a trade, having a clear idea about my exit plan.yesterday was quiet so no levels had been invalidated.
Today should have been a great day but I've got back in the habit of micromanaging my trades. I feel like I broke this habit a while back but it seems to be rearing its head again. My levels held up well but obviously exited way too early! I think this stems from giving back profits over the last few days. I find it's a tough balancing act between giving positions enough room and then either locking in some profits or moving stops to break even. Nothing worse than getting positions in profit and then ending up in either nothing or a loss. There was no reason to exit these positions, at the very least I could have just taken one contract off and let the other two ride with my stop at breakeven.
@pavilion103 does someone like yourself who are more experienced have a systematic way of handling open profits? Or is it more around price action and your read on how things are playing out.
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It’s tricky. One of the best things for me is as soon as I enter a trade, having a clear idea about my exit plan.
Some days I will look to exit intraday. Other days to hold overnight, or longer. It depends on the place on the chart.
You really have to look at the risk to reward also. If a trade looks like it’s getting towards a place where the risk to reward is shrinking, then I’m more likely to exit at any signs of potential reversal, or even slowing down.
When a trade has moved 80% towards the target, then it makes less sense to take risk in holding for that extra 20%. But if it’s only 25% towards my target, but already in good profit, I’m more likely to hold onto it because I know what the plan is. I then have no regrets about being stopped out because I followed my plan.
The only time I have real regrets is when I had a plan in place and then micromanaged my trade and did what I never planned to do.
Risking giving back profit, in the right places, is just an essential component to having big winners.
I actually like to walk away from the screen once things are set and I know that there’s no reason to exit in the next little period of time. I might set alerts on my phone, I’ll come back in a little while, but I find when I’m watching the screen it causes me to make irrational decisions.
On this move down on the FTSE from 7500, I have taken a number of positions. I am still holding positions from the very top. I have also taken positions which I’ve exited intraday, and others which I’ve exited after a day or two. Having multiple positions is really helpful because you can exit some and let other ones run.
I get a bit of a gut feeling with how to do this. When I get a niggling feeling that I should be lifting some profits and that holding onto them is probably gambling, it is wise to exit the positions that I want to. When I feel that I want to take profits out of fear because I have too much open profits, I ask myself is this part of the plan?
I’m not sure that that is terribly helpful but that’s the way I think things through. One thing you want to avoid is all or nothing approach. Doing this you will both give back lots of profit, and also miss out on lots of potential profit.
e thing you want to avoid is all or nothing approach. Doing this you will both give back lots of profit, and also miss out on lots of potential profit.
Just make sure you learn from every mistake.Thanks Pav.
I have found sometimes to that the best thing for me also especially once I get my stop to break even is just to walk away and let the trade play out. Unless things are looking a bit choppy then sometimes it is best just to let things played out.
But like you said if a trade is getting close to a target them the risk/reward gets skewed out of our favour.
I have found that my analysis is getting better it is just my trade management that is hurting at the moment. Still a long way to go to perfect analysis but self sabotage is definitely hurting my results so far.
Okay thanks, a few things to work on! I will try and put these into practice.
Have to avoid micromanaging trades while also locking in enough profit
Did/do you (or anyone else?) ever use any commercial journaling tools. There seems to be some good products out there but not sure if it'll be worth it. I've been doing my own but not as flash as commercial ones. They would give a deeper insight into stats i guess.Just make sure you learn from every mistake.
You might lose some dollars but you’ll gain much more in lessons in the long run!