Why is hard to make money? Find trend, stops above previous/high low, TP @ next highs/lows
- Thread starter iamnewuser911
- Start date
It's a tricky game, find a trend, wait for a pull back to enter, the issue here is the pull back isn't a pull back it's likely a a new trend, which means your likely to get slapped.
More of a pull back, the happier you are to take the trade as it's cheaper, but the more likely it is that it will be a trend change.
Then wait for a profit, get some profit, wait too long price drops, then your waiting for the highs again then trend change and SL hit, you've lost again.
What you want to do........
Find a Trend, just jump on it, don't watch it happen while waiting for a pull back.
When you see a pull back, think likely a trend change, wait for a small reversal then trade the upcoming trend change.
Don't get greedy on profit, wait for a sign trend will likely change or just take the next stall area, it really could go either way.
None of these things above are easy to do live, I keep slipping back to the newbie top stuff to
More of a pull back, the happier you are to take the trade as it's cheaper, but the more likely it is that it will be a trend change.
Then wait for a profit, get some profit, wait too long price drops, then your waiting for the highs again then trend change and SL hit, you've lost again.
What you want to do........
Find a Trend, just jump on it, don't watch it happen while waiting for a pull back.
When you see a pull back, think likely a trend change, wait for a small reversal then trade the upcoming trend change.
Don't get greedy on profit, wait for a sign trend will likely change or just take the next stall area, it really could go either way.
None of these things above are easy to do live, I keep slipping back to the newbie top stuff to
Why is hard to make money? Find trend, stops above previous/high low, TP @ next highs/lows
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It's not enough to simply trade by looking at the current (or past) chart. -- 'You're walking blind without a cane, pal.' ...as Gordon Gekko would say.
You have to look at the whole collective picture...Have an endgame or goal or expectation,...and see how that unfolds, and play and manage that trade accordingly,
Because you sometimes will be wrong, obviously. But being wrong can still turn out to be a hugely profitable trade if you are open-minded and nimble...and not stubborn with your conviction,
It's up to you to determine what's a relatively meaningless small storm or gyration, and what's the real deal overall shift,
You have to understand your market or game you're playing or trading in. What makes it tick. What are its potential support/resistance levels,
Trading is truly a craft, a skill, or intuition.
And by the way, you said nothing about yourself....What do you trade, and how, risk tolerances, acct size, etc etc variables.
I trade/watch the daily SPY/DOW charts, -- Different lessons or wisdoms can apply to each different person's scenarios,
(it's best to master something; don't attempt to trade everything under the sun)
And to quote Gordon Gekko again:...Read Sun-tzu, The Art of War. Every battle is won before it is ever fought. Think about it.
...if you enter a trade like a chicken with its head cut off...how will that end...
____
It's not enough to simply trade by looking at the current (or past) chart. -- 'You're walking blind without a cane, pal.' ...as Gordon Gekko would say.
You have to look at the whole collective picture...Have an endgame or goal or expectation,...and see how that unfolds, and play and manage that trade accordingly,
Because you sometimes will be wrong, obviously. But being wrong can still turn out to be a hugely profitable trade if you are open-minded and nimble...and not stubborn with your conviction,
It's up to you to determine what's a relatively meaningless small storm or gyration, and what's the real deal overall shift,
You have to understand your market or game you're playing or trading in. What makes it tick. What are its potential support/resistance levels,
Trading is truly a craft, a skill, or intuition.
And by the way, you said nothing about yourself....What do you trade, and how, risk tolerances, acct size, etc etc variables.
I trade/watch the daily SPY/DOW charts, -- Different lessons or wisdoms can apply to each different person's scenarios,
(it's best to master something; don't attempt to trade everything under the sun)
And to quote Gordon Gekko again:...Read Sun-tzu, The Art of War. Every battle is won before it is ever fought. Think about it.
...if you enter a trade like a chicken with its head cut off...how will that end...
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What techniques do you use or suggest to determine bias?
Mostly a sense of trend. You must have the correct bias to trade successfully. It isn't ALWAYS correct to BTFD. It's mostly been a one-way street in recent years, but when the market actually turns bearish the correct bias will to be to the downside.
If you had a bullish bias, you'd know to BTD. But if you keep BTD, as you would in a uptrend and keep getting stopped out, you should have been selling the bounces. Vice versa.
A trader friend of mine years ago... convinced the market was overbought, overextended, and was "due for a big decline"... kept selling into strength and got stopped out on 14 consecutive trades. His "bearish bias" was wrong. He should have been BTD and chasing strength.
If you get a string of losses and most/all are on the same side, it's most likely your bias is wrong.
Yes I agree, I find that it happens. What does BTFD and BTD mean?
Right Now I am just selling retracements in downtrends and uptrends. It's not like the market always trends anyway, mostly on the hourly chart so I can get enough setups every week.
How do you determine trend technically (e.g. 2 higher highs etc) or its just a "sense" kind of thing?
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Bias is always bad, I used to read the news, form a Bias, market would move the opposite way and I'd keep adding positions and fighting it until eventually my thankfully small account is margin called.
Focus on what's it's doing currently, join it, take it for a ride, exit safely!!
Means your bias is wrong, no? Lol.
They often will be wrong, so better just not having any Bias in the first place.
Can you share the most recent trade you took with a chart?