On Tue 08/03/16 morning, I took a short trade on EURJPY after the confirmation of the 3 pin bar. It was a good trade but I think my entry can be improved. Waiting for the formation of the 3 pin bar was good but it took away most of my profit. I feel it wasnt a good entry as I missed out most of the move. The trade even went against me for a while before becoming profitable. I feel that this trade can develop better but I wasnt so comfortable about my entry so just took a small profit.
Then I read somewhere is that we can put our order at the high/low of the pin bar (centre candle) so that we can get a better entry. Less stressful and more profitable. Let's see how.
Trading Plan:
1. Trade with the trend
2. Trade when there is a price action reversal with the trend continuation
3. Place SL on previous high/low candle or 150 pips max (Limit my loss)
4. No TP. Let market decide when to exit (Let my profit run)
Jimmy,
ReplyDeleteIf you want me to stop, just say the word.
Not many traders to banter with so I can't help myself ;)
1) Your max stop loss is 150 pips.
2) You don't have a profit target. Since most traders use a risk/reward ratio of 2:1 or 3:1, that means when your trades are profitable, they "should" make at least 300 pips pips ;)
3) You are definitely not a intraday trader; that kind of stop loss will wipe you out when you take too many profits below 300 pips...
Pls continue to comment
DeleteI am working on daily weekly chart not intraday
That's why stop limit is higher to let my trade breathe
But if I put stop loss at peak /trough of a chart, the stop loss is even higher
This stop loss limit not sure what's the 'best'?
Jimmy,
DeleteI am assuming you are familiar with the 3 Ms. If not, HELLO!
The 3 must work in harmony.
1. You have already sensed something is not "right" in your post above:
"Waiting for the formation of the 3 pin bar was good but it took away most of my profit. I feel it wasn't a good entry as I missed out most of the move."
a) You entered into a trade when there's not much meat left... That's where my hint about intraday trading comes in. If you are just making 20-30 pips for this trade, stop loss can't be 150 pips!?
Risk/reward not balanced or in your favour.
b) Even if you had entered this trade at your IDEAL entry point, would you be able to get at least 300 pips from this trade?
And that's just a conservative 2:1 risk/reward ratio.
2. Let profits run. That's what we all want as traders! But chanting this mantra all day won't bring home the bacon.
Maybe see things from another angle instead - Protect our Profits first?
my previous biggest win was +484pips. thats when i sit through only 1/2 way the trend. it happens but its not so common. if u put TP, you will only get TP and not the max of the trend allowance. not sure in the long run will it be good? its like going for the home run which is not easy
Deletethe next trade was a better entry for me but it got BE because of a sudden reversal. i will share it later