Look to this thread sometime this weekend, it will be completed with charts and images. For now I'll keep this brief as it's hard to figure out what I mean without the charts anyway.
I feel like sharing my recent breakthrough (Q2/3 2013) on what I consider the best way to trade is (lowest risk, highest reward)
and I also believe this to be the way that market makers trade.
It requires EXTREME patience and psychological fortitude, which is why it is so difficult to do.
Just because I know how to do it, doesn't mean I am able to do it. But I am working on mastering it. I've done it a few times and it felt really good.
Initial risk reward is often 5 or 10:1, but when we pyramid the trade the end risk/reward can exceed 100:1
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First off, let me just say there is a conservative and an aggressive way to do this.
1) aggressive --- You try to take profit at the intraday swing highs and lows, and re enter on a correction with a stop just below/above where you think the correction has ended, or a nearby support level you think will hold.
2) conservative --- You don't take profits intraday because you aren't that skilled of a trader, or you simply DO NOT want to miss the rest of the move (the big part). In this conservative approach, wait for the market to correct, and enter your pyramided position with a stop loss for BOTH positions above/below where you think the correction has ended, or a nearby support level you think will hold.
I feel like sharing my recent breakthrough (Q2/3 2013) on what I consider the best way to trade is (lowest risk, highest reward)
and I also believe this to be the way that market makers trade.
It requires EXTREME patience and psychological fortitude, which is why it is so difficult to do.
Just because I know how to do it, doesn't mean I am able to do it. But I am working on mastering it. I've done it a few times and it felt really good.
Initial risk reward is often 5 or 10:1, but when we pyramid the trade the end risk/reward can exceed 100:1
-------------------------------------------------------------------------------------------------------------------------------------------
First off, let me just say there is a conservative and an aggressive way to do this.
1) aggressive --- You try to take profit at the intraday swing highs and lows, and re enter on a correction with a stop just below/above where you think the correction has ended, or a nearby support level you think will hold.
2) conservative --- You don't take profits intraday because you aren't that skilled of a trader, or you simply DO NOT want to miss the rest of the move (the big part). In this conservative approach, wait for the market to correct, and enter your pyramided position with a stop loss for BOTH positions above/below where you think the correction has ended, or a nearby support level you think will hold.
Be hopeful in a winning position, and fearful in a losing position.