And of course, here is the adjustment to the stop. Note that I eyeballed the stop up to 1/2 the distance to the entry and to put it right below a recent support, so it may not be exactly reduced by 1/2. No math is required really. I'm not sure how ...

Trend Trading

Well, I can hardly wait to get into money and risk management, so I'll post just a quick note on it. Please feel free to comment on trend spotting as you like. Suppose a trade looks good with a 50 pip ADR and you think it can probably run for 200 ...

Trend Trading

I guess I could continue posting these charts, but I think I've made my point. To trade a trend effectively, one must first spot the trend. That's actually fairly easy to do when you simplify your charts and get back to basics. Not all trends look ...

Trend Trading

Another live example. This is the 1 Hour chart of the CadJpy. The last UJ chart I posted had a fairly smooth trend climb up with a few small retracements along the way. Here we see a fast thrust up, then a long period of consolidation, then another ...

Trend Trading

Personally, I now to strive for simpler trading. Even putting 3 moving averages on a chart seems a bit much for me, but by all means, do what works for you. Best success. - G

Trend Trading

Hi again. Sure, there is a point where the pair is just so volatile that I cant take the trade. So for instance, if price is moving up 100 pips, then down 200 then up 200, it has totally moved up 100 pips, a decent move up, but if I were to take ...

Trend Trading

Hi AG. When I'm trying to identify a trend, I only usually look at 1Hr, 4Hr and Daily charts. I don't really trade the very short timeframe charts since they don't offer the big swings I need to make the big profits. I do occasionally check the ...

Trend Trading

OK, I have a party to attend, so I'll wrap this up faster than intended. Looking at the same UJ 4 Hour chart above, note the almost straight line up on the 50 MA after Sept 12th. Note the steady increase in distance between the 50 MA and the 200 MA. ...

Trend Trading

First of all, I'll stipulate that every chart I post is live. I'm not cherry picking old charts to make a point. I'll post some other pairs going forward. Second, I'm not selling signals for others to follow. My goal isn't to feed my readers fish, ...

Trend Trading

i want to initiate a discussion on risk and money management at some point, but that's a more generic subject. Really, risk and money management are probably the most important ingredients of successful trading. I don't know of a single trend trader ...

Trend Trading

And another thing. Stops. Stops can be a pain. If we set them too close, we'll almost always get stopped out quickly by volatility. If we set them too wide we lose more than we need to on bad trades. So we try to start out with something in between, ...

Trend Trading

So while waiting for more discussion, I'll ramble on about risks and returns. We've all heard that something like 90% of retail traders in Forex lose money. It's probably going to surprise a few people that most of those people who lose in Forex ...

Trend Trading

Just one thing? Ok. Limit trades to no more than 0.5% risk of your account balance.

What Would You Do Differently Today for Better Trading Results?

Nivad, you are correct. I'm currently running about 2 losses for every win, and I've gone long periods basically trading the same and generating 4 losses for every win. I like to win. I like to be right. Unfortunately this business isn't about me ...

Trend Trading

OK Ren, let's take a simple example. Let's suppose you were risking 2% of your account per trade and made 3600% in 400 trades. If you dropped your risk to 0.5% you'd probably reduce your 1st year profit to 900%. The next year you made nothing. So ...

Trend Trading

Wow, that was exciting. And I'd like to point out the entire lively discussion was carried out without personal insults or profanity. How very well mannered of the posters on this thread. I'll jump in to answer a few questions and point out some ...

Trend Trading

Thanks for the input Ren. I can't really disagree with much of what you said. Though trend following is a proven method to make significant returns, it comes with a drawback, or we should say many drawdowns. As the chart below indicates, a major ...

Trend Trading

Good comment. Depending on the price action, there may be a wide range of variation between the points where we want to add to good trades. For instance, the ADR of CAD/CHF is around 45 pips per day. The 10 day ADR of GPB/NZD is about 135 pips per ...

Trend Trading

That's an excellent question. I'm sure it depends on the market and probably the instrument. For Forex, there should be a statistical analysis of that somewhere. If anyone knows the answer, post a link? Oh, it would also depend on when you exit. One ...

Trend Trading

Most of the trading methods I've studied over the years don't work. I can pretty much tell right away that any system that tries to predict the future wont work over the long term. Unfortunately, that includes most of the systems one will read about ...

Trend Trading