Jul
1
Siv Vaidhyanathan
Day trade set up is determined by longer version of the chart and not in minutes or hourly charts. You need to give sufficient room for price action and whipsaws, therefore the stop loss limits are large in order to accommodate the price action and its movement. When you deal the Daily charts, do not expect the trade to be over within the same day, it could take even three or four days, price action may vary from 1 to 3 percent or even a little more, therefore ensure your account is sufficiently leveraged.
When the Equated Moving Average for the 100 period is below the price action and atleast one candlestick has closed above the EMA-100 levels, you must look for the Buying opportunity, then you need to switch over to 1 Hour chart to appropriately place your Buy orders. This will ensure that you are trading along the trend.
The order size is most important, especially when you trade with a small equity. You need to use only 10 p.c. of your equity and not more for any one trade. The Risk to Reward ratio should be 1:3 for effective trading. When you put your Stop orders at 3 p.c. your Profit orders should be atleast 9 p.c. Once the setup is made, never adjust the stop or profit orders and you allow the system to close the orders for you.
Once in a while, say between 4 or 6 hours, see the direction of the price movement. At some point say in a day or two when the price action is well above your entry price, say around 3 p.c. you can adjust your stop loss to the breakeven. This will ensure that the remaining trades are free trades and you can focus on other trade setup.
We need to pay some attention to our emotions. When the price action is against our direction, we need to hold our nerves, because we are trading the Daily charts. The movement of rates will be very wide and since we are following the EMA-100 levels, we can expect the price action to settle somewhere near the entry price. We are also moving along the major trend and therefore, hopefully we can see the prices move towards our entry price. It is at this point, some traders, after having seen a long downtrend, become restless and quickly book their meagre profits and come out of the trade, breaking all the Trade Setup rules and take a sigh of relief. This is the emotion we are talking about that frustrates even the experienced traders. This emotion triggers a panic in the stomach and makes the trader emotionally weak thereby making him indicipline.
Keywords:
money, management, risk, emotion, greed, discipline, tips, truesignal
Day trade set up is determined by longer version of the chart and not in minutes or hourly charts. You need to give sufficient room for price action and whipsaws, therefore the stop loss limits are large in order to accommodate the price action and its movement. When you deal the Daily charts, do not expect the trade to be over within the same day, it could take even three or four days, price action may vary from 1 to 3 percent or even a little more, therefore ensure your account is sufficiently leveraged.
When the Equated Moving Average for the 100 period is below the price action and atleast one candlestick has closed above the EMA-100 levels, you must look for the Buying opportunity, then you need to switch over to 1 Hour chart to appropriately place your Buy orders. This will ensure that you are trading along the trend.
The order size is most important, especially when you trade with a small equity. You need to use only 10 p.c. of your equity and not more for any one trade. The Risk to Reward ratio should be 1:3 for effective trading. When you put your Stop orders at 3 p.c. your Profit orders should be atleast 9 p.c. Once the setup is made, never adjust the stop or profit orders and you allow the system to close the orders for you.
Once in a while, say between 4 or 6 hours, see the direction of the price movement. At some point say in a day or two when the price action is well above your entry price, say around 3 p.c. you can adjust your stop loss to the breakeven. This will ensure that the remaining trades are free trades and you can focus on other trade setup.
We need to pay some attention to our emotions. When the price action is against our direction, we need to hold our nerves, because we are trading the Daily charts. The movement of rates will be very wide and since we are following the EMA-100 levels, we can expect the price action to settle somewhere near the entry price. We are also moving along the major trend and therefore, hopefully we can see the prices move towards our entry price. It is at this point, some traders, after having seen a long downtrend, become restless and quickly book their meagre profits and come out of the trade, breaking all the Trade Setup rules and take a sigh of relief. This is the emotion we are talking about that frustrates even the experienced traders. This emotion triggers a panic in the stomach and makes the trader emotionally weak thereby making him indicipline.
Keywords:
money, management, risk, emotion, greed, discipline, tips, truesignal