Daniel is going to learn Wwatson1 to trade

[danielc1]

You could use Sierracharts, or you could go with time based charts for now. The principle will stay the same. If you really decide to go for it, you can always look for range based charts software.
Look for an instrument that gives you enough opportunity to have signals to take; when you are setting in front of your computer. I will show you later on, how you can use the same knowledge for swing or longer term trading.

 

[wwatson1]

Do you use stop losses?

 

[unregisterred]

Take it easy, Visaria. English is not my native language, but I can make myself understandable in writing and speaking in the following languages: Dutch, French, English, German, Spanish, Italian and Latin. None perfectly, but who cares? If you are offended by our or mine English, I do apologies in all the languages I know:
I am sorry,
Mijn verontschuldigingen,
Lo siento,
es tut mir leid,
Mi scusi,
je suis désolé,

If you still are offended or will be offended in the near future by my spelling, take the 'wtf' abbreviation somewhere else and stay away from this thread. Thank you.

The beauty of online translators like Reverso.net is that I can speak dirty or cuss anybody out from virtually anywhere.

 

[danielc1]

Yes, always. I'm a firm believer of a hard stop in the market. But not to tell me I'm wrong, but to protect me against connection drops or a sudden un aspect and large move against me. Let me take you step by step how I set a stoploss, sometimes double down on a position, and put the targets in place. I have made replay chart with a simulated trade on it, to show where the stoploss is(First image). Then I double down, but the stoploss stay's the same for both positions. The targets I change to midlle of the pullback move and below the low of the previous move down. (Image two). And then the trade is finished and looks like image three.

Image1

Image2

Image3

 

[danielc1]

The place of the stoploss is not my exit point in case I'm wrong. As soon that I see a change in price behavior or Cumulative delta that proof's that I'm wrong, I'm out of the position before the 'hard' stop is hit. It is even so that cumulative delta warns me a head of time of a change in trend, so that I do not take a position when the pullback occurs; that after the fact is a new beginning of a trend in the opposite direction. I hope I can show you some picture monday or tuesday, when this happens.

 

[wwatson1]

You add to your position at a better price, as it goes against you? Correct?

 

[wwatson1]

Then if price continues against you, you close out the enitre position at your hard stop?

 

[danielc1]

You add to your position at a better price, as it goes against you? Correct?

Yes, but there is a catch. We need to calculate and backtest this with the instrument you are going to trade. I do this to get a better average entry price, if price is not going my direction from the start. For now, just focus on one contract or one position, not two or three.

 

[danielc1]

Then if price continues against you, you close out the enitre position at your hard stop?

If I'm not paying attention or the market goes so fast, Yes both position are exit at the hard stop. Normally I exit both positions sooner, before the hard stop is going to be triggered.

 

[danielc1]

Do you see the keltnerchannel? The dotted grey lines? If prices would closes above the upper keltner channel band, I would definitly close the position in this example. The hard stop is further away...