RE: CHARTS -T LINE TIPS18 Oct 2016 08:43
Good morning emblaze1,
I’ve been up since 4.15. Combination of prostate trouble, non cancerous, and insomnia.
I know you are starting with the FTSE but Nick has a unique strategy he uses to trade forex using no indicators just candlesticks and support and resistance. I tried conversing with him about the two ema’s but he just wasn’t interested.
However, I believe his support resistance approach is ideal for combining with the three ema’s and keeps things really simple with uncluttered charts. With regard to your query on stop losses he also has a very good approach to setting stop losses which has been the subject of various newbies’ queries that he explains during his video, together with the rationale behind skipping trades , or playing a waiting game if risk reward ratio results in too big a stop loss. Suffice to say stop losses vary according to the proposed trade. One just has to adapt them to one’s risk reward ratio. There is another mentor, Hector de Ville that I use who has a stop loss policy for fake breakouts. I’ll try and locate it for you.
As I said in an earlier email I don’t always day trade with the stop loss embedded in the deal ticket but use the IG chart display to add them after the trade has been actioned or rely on my reaction to close a winning trade in the case of a stop profit limit or close a losing trade.
I like Nick’s cautious approach to taking trades as my biggest concern is preserving capital first then consider profit.. The biggest cause of losing trades in my experience is pulling the trigger too soon and accepting too big a stop loss, or pulling the trigger too late resulting in too bigger risk being taken on. This is especially so with AIM shares that are spiking. If the train has left the station let it go there will always be another one especially on the FTSE and Forex.
Link to webinar below. Ignore the specific advice on individual trades as it is out of date.
https://www.youtube.com/watch?v=Ata1ljXp6As
I will be posting some of my replies on my chat board as they will hopefully benefit the viewers of that thread so look out for them.
I won’t be trading today as got a headache.
Good luck investing and trading always.
Lefkosia
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