TRADERguy, Thank you. I think we all learn a ton reading your comments. But you must get a lot of small losses, when you go flat if the price moves 1-10 pips against you? Do you use any indicators? How did you trade the news Friday?
I'm primarily a S/R (support and resistance) trader. I attempt to get an overall picture of what's going on based on larger timeframe charts (daily, 240 minute), and then translate areas of support and resistance (in the form of price points, trendlines and channels) into tradeable strategies. If I find an area of support or resistance that has held successfully in the past, I'm often willing (depending on market volatility) to go against a prevailing trend at that point, in the hopes of catching the bottom/top. If that support/resistance area is broken, then I'll stop out and consider a reversal. Usually, I try to set up the reward/risk equation so it's at least 3:1 in my favor (I feel more comfortable with R/R at 5:1). Then it's a matter of patience waiting for the opportunity to materialize, discipline on stops, and trade management (each of which is, of course, difficult in its own way). Knowing if/when to get out of the trade (prior to it reaching the target) is often the hardest part for me. Ideally, you want price to cross the channel, or hit your target price, but that's not always the way it works. I've had some success scaling out of trades, but I find that often I limit a successful trade's profitability by doing the safe thing and taking profits on part of my position at pre-set points. So this is still a work in progress for me.
Where do you place s/l? I know you are a kind of computer genius: Why do you not construct your own system?
\ Traderguy, Thanks for the interesting suggestions. I also trade the ES. I might just have to give up the pre-US EUR session. Are you trading EUR from the US? Chinook
The best trading books ever written? I love the old books of Baruch, Darvas and Livermore, but the best of the best is: Dickson G. Watts: "Speculation as a Fine Art and Thoughts on Life". It' s a very old book - "Old Dickson" was President of The New York Cotton Exchange between 1878 and 1880 - but they don't write them better today. In fact it is two books - one about speculation and one about life. But what is difference? Life is speculation. Both books were so short that it is believed they were privately printed and given away. Today the books are very rare.
"Rollo Tape" (Richard D. Wyckoff): "Studies in Tape Reading". Richard D. Wyckoff: "Stock Market Technique". Humphrey B. Neill: "Tape Reading & Market Tactics". Humphrey B. Neill: "The Art of Contrary Thinking" Humphrey B. Neill: "The Ruminator" "Horatio Alger": "Getting creamed on Wall Street".