Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
A bad scalp trade this is, we got as low as 11957.3 but why I am not stressing is the fact we have just like that overly quoted bad trade before, this time I kept in account the fact we opened with a major gap-up, so I would hold on to any short that failed the scalping strategy! I thought about this before entering my first trade today, which is a crucial difference with that other trade that went wrong, because... while there was a gap-up open still... it wasn't an argument for me to keep the trade, or going into that trade. Anyway... there's still a good chance we get out of it today!
I also lowered my contract sizes, so I can just continue trading while this trade will get to its target over time.
Addendum
The BB's 20/2 is incredibly wide at the moment due to fact of this major up move... some consolidation will take place eventually!
On a bigger time frame, 1 hour, we just closed a bit below the resistance level 1.
Well of course these are good arguments to stay in the trade, I bet... someone can find similar arguments to close the trade!
My plan was before I took the trade, no matter what I let it run! And keep on trading in the meantime with more secure opportunities.
I didn't trade on Friday... and currently FXCM has some sort of maintenance not allowing me to log in on MT4, so charts will have to wait... but what I can remember is that I missed 1 opportunity only, and that turned out to be a good one... if I took it! Maybe I will post a picture about Friday in here as well... on Monday!
Anyway... Monday I will start 1 hour later as usual... due to any weekend events that might have happened!
In the meantime there's news that probably a rate hike by the FED in the USA will occur this month, chances are being raised!
Entry at 11965.13, target 11955.13, got to 11957.88 so far
I have to watch out ... these BB set-ups aren't ideal! Hoping for some good volatility when the IFO numbers out at 9:55 CET.
…
But one progress made comparing this second bad trade to my first one, is that I trade 'even' lower contract sizes now, 50 cents a point in comparison to 150 cents per point with my first bad trade.
But, then again... like my first bad trade... there's still a large gap open in our needed direction! There for 'in time' there's a good if not a great chance with these high price levels to get my target filled on a bigger retracement.
But this trade is/was lost for scalping it!
I have put on the MA's you talk about on my 15 minute chart. (since I trade on that specific time frame)
I know what you're getting at, but I see some disadvantages as well, for example...
Here is my chart on Friday... the red rounds were opportunities I would have gone in with... especially the first one since I got RSI back up as well to go short! But as you can see the MA's aren't crossed, yet! And are directed for only long positions, if I follow up what you say... which means I would have missed this great opportunity!
Additionally... how on Earth can you sit behind a monitor without trading for in this case several days?
As I described in my explanation of my strategy, I stated that I use 2 MA's a 155 one and a 200 one. But I use it not specifically for crossovers, but those MA's often tend to be support and resistance as well, you can put them on equal terms as the resistance and support lines created.
MA crossovers tend to be one of the easiest strategies around.
Then again, trading WITH a trend obviously increases your chances, let me be clear about that... I agree on that!
Because both bad trades were/are made while direction was chosen. Not to mention that MA crossovers often happen during openingtimes.
Please, clarify, I don't even see a Bollinger Band on your chart which is what my strategy is based on. Not to mention I don't do 240 ticks, I do 15 minutes... or might that be the same?
So you have an admitted failed scalp trade that didn't work out. You then decided to turn it into a swing trade even though the reasoning for entering in the first place (a quick 10 point bounce) has long passed. Just a quick glance at the DAX and I see three days in Dec that had a gap up that still have not been filled! At prices between 10700 and 11200!
- What rationale do you have for staying short this market with your current position?
- What are the actual chances that gap ups in a up trending market will be filled (statistics; you must have some evidence to back this up)?
- What 'time' horizon are you speaking of for this to take place?
- How far are you willing for prices to continue going against you?
- Are you going to try to manage and scale your position to work your way out? If so, how?
- Are you going to look for a larger swing target with this trade or just another 10 tick scalp?
- Where is your longer term analysis for this trade?
Why?! Why would you be willing to exit for a measly 10 point profit but be willing to let a loss run out of control just because the market "gapped-up"? Your "secure opportunities" comment suggests that this trade might have not been a good one to being with, yet you're willing to hold onto it as it loses you money? Not to mention the only "secure opportunity" that could even exist in trading is knowing how much risk you are taking on. Something that your trading strategy is currently lacking.
Your entries and exits, including your targets and stops, all contradict one another. BB entry for a scalp, target based on points achieved not the analysis as per entry, losing trades you turn into swing positions even though they were taken with no swing analysis in mind. No solid plan for exits/losses at all.. What are you doing man?
Perhaps I am wrong and you have all of this thought out but your journal tells us a different story.
I felt I should address this here and not a PM, as I think it is more important to have this critique as part of your journal. Please take this seriously and I mean all of this with good intentions as I would prefer to not see you blow up your account in the future.