I'm going to write here a series of tips for those interested... based in my experience and many of them based in psychological aspects of trading which is something important and sometimes forgotten.
- I have noticed that all the breakouts when the price moves very fast in very few minutes... define a support / resistance level... that almost always is going to be retested, not only retested but hunted. Let's say one is lucky to enter a trade and price moves a lot of pips in 1 minute... then you say. ok let's try to ride this one because I made a good entry! Big traders know this. And will try to give you a little of headache and won't let you ride that so easily because a moment of luck.
- Also if you want to ride a trend without suffering too much you have to enter when price is doing the opposite in a shorter timeframe. Let's say you want to ride a trend down... then if you don't want a big drawdown you have to enter when price is going up and then when you think it is overbought... wait a bit more for another impulse and then try to enter. But this is very risky because you never know if this is only a retrace in current trend or if this is the one impulse that changes the trend...
- Another important psychological aspect in trading is to look at charts and price movement while you entered a trade. If you entered a trade let's say.. in the H4 timeframe... It is better for you to go out, turn off the computer and come back at least 4 or 8 hours later... that's 1 or 2 bars... you can't do anything looking at the charts but suffer.... or maybe if you entered and see that 5 minutes after that.. price has moved against you but you consider that.. oh then this is a betetr price to enter... I'll reenter here again and close the first one at +0 pips.. Big mistake ! You are overrisking your trade then. And it is a sign of lack of Money Management.
will put more things if it is considered interesting.
- I have noticed that all the breakouts when the price moves very fast in very few minutes... define a support / resistance level... that almost always is going to be retested, not only retested but hunted. Let's say one is lucky to enter a trade and price moves a lot of pips in 1 minute... then you say. ok let's try to ride this one because I made a good entry! Big traders know this. And will try to give you a little of headache and won't let you ride that so easily because a moment of luck.
- Also if you want to ride a trend without suffering too much you have to enter when price is doing the opposite in a shorter timeframe. Let's say you want to ride a trend down... then if you don't want a big drawdown you have to enter when price is going up and then when you think it is overbought... wait a bit more for another impulse and then try to enter. But this is very risky because you never know if this is only a retrace in current trend or if this is the one impulse that changes the trend...
- Another important psychological aspect in trading is to look at charts and price movement while you entered a trade. If you entered a trade let's say.. in the H4 timeframe... It is better for you to go out, turn off the computer and come back at least 4 or 8 hours later... that's 1 or 2 bars... you can't do anything looking at the charts but suffer.... or maybe if you entered and see that 5 minutes after that.. price has moved against you but you consider that.. oh then this is a betetr price to enter... I'll reenter here again and close the first one at +0 pips.. Big mistake ! You are overrisking your trade then. And it is a sign of lack of Money Management.
will put more things if it is considered interesting.