RE: CHARTS -T LINE TIPS27 May 2017 20:56
good evening Tommytink. can’t open your link.There will always be false starts like the jan SXX , ESPECIALLY when price starts trading sideways in a non tradable range.
Yes in and out, or ride it out, or just quit and wait. Main thing is to recognise one is in a non tradable sideways range. easiest way to lose money getting whipsawed in sideway s trading.
SOME sideways trading is tradable dependent on spread, range, size of bet, stop loss and time of day. E.G eur/usd spread on IG is mainly 0.6 but does widen to 1.9 making it ideal even on trading ranges as small as 10-20 pips. FTSE spread is 1 pip between 8am and 4.30pm 2 pips to 9pm and a massive 4-6 pips between 9pm and 8am. At 1 pip spread a trading range of 10 pips is tradable but not when spread is 4 pips.
bigalow says 33 per cent of his trades fail, mine is about 30 per cent. main thing is to cut the losers short AND NOT MAKE ONE’S BET PER PIP TOO BIG. Money management is essential. not more than 2 per cent of fund to risk, divide this by amount of stop loss=size of bet. stop loss can vary from trade to trade. I try to keep my stop losses small by being selective in taking trades .
eg spread 0.6. trading range 20 pips stop loss 5 pips fund 5k. 2 per cent = 100 quid divided by stop loss 5 pips = max bet size 100/5 = 20 quid per pip. risk reward 4/1 = reward 19 pips loss 5 pips. Key here is to STAY DISCIPLINED and ONLY buy at bottom of range and ONLY sell at top of range, nowhere in between, when opening the long and short trades. when all ma are tightly grouped waiting for breakout stop loss should be tight imo.
Tesla scares me as price moves rapidly both up and down that’s why I kept the stake at 1 quid a pip and a very tight stop loss . that was brought about by a very rapid 180 quid losing trade prior to the 800 pip move. In my trade yesterday I had set a target of 1000 pips. Once trade was opened and got going my initial stop loss never got hi t and not using a trailing stop loss, which I don’t like as it can take one out of a long trend too earl y, retracements below ema3 and 8 were ignored. At NY opening, price was very volatile and I came close to being stopped out. just look at that big red candle and long wick so luck is sometimes necessary for a successful trade. A trailing stop may have kept me out of a sweet winning trade, which is why I don’t like them.
I closed the trade at the end of trading with 8/10ths of target achieved as did not want to hold it over the weekend and it’s never wrong to lock in profit.
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