Secured Funding

Forex Blog Trading Tips - Forexmospherians.com

WRATH OF THE BRITISH KAMIKAZE

THE WRATH OF THE BRITISH KAMIKAZE

In posting this Forex blog I must say that I am practicing what I preach so to speak and letting go of a trade on this currency pair that I missed. Also reiterating the reason we are here at Forexmospherians is to help eachother and improve ourselves by sharing ideas and trades, the good ones or bad ones. So here is a recent trade showing my approach and outcome of how I eventually left it. I feel certain its a regular set of circumstances which can be shared as a trading tip and will explain the conditions and the lessons to be learned.

Firstly, I consider this trade a good H1 setup and a good execution but a bad stop placement.

After the initial push of the GBPJPY, I generated an outstanding signal, it was one of my best signals, so I exercised patience and waited on the pullback test of the break and re-entered a short trade. 

I placed my stop above the high of the test and called it a night only to wake up this morning to find out that my trade had been stopped out on a retest. Needless to say, my initial feeling was disbelief and I went straight to the price analysing the structure to see if there is another chance to get back in on the move. This is where a lot of traders, including myself, at one time and more, chase the move to get back in.

So with that in mind, here is a list of things I do to keep from chasing a move.

1). First I step away from price and go evaluate my entry and stop, this disconnects me from the urge to get back in.

2). Remind myself this is only one day in the markets and my planned trade is over.

3). Look at the big picture and realize the market is huge and there are going to many more opportunities that I can plan in advance for.

4). Go to the broad market outlook and further disconnect from the loss.

5). Only after I have effectively disconnected from the loss then will I look for and frame up a re-entry trade.

 

As a summary, its important that FX traders see entries and the set up in advance, stick to trading the plan and not jump back in because we missed the boat. If the market pulls away from our grip and gives us no defined planned re-entry, then try to remember;" The Foreign Exchange market is huge and there are going to be many more planned opportunities on other occasions so do not chase"

Reentry short

stopped out on retest. 

E-mail me when people leave their comments –

Genxtrader
Forex Trader, Commodities
Previous Contributor: FXstreet, Forexmosgate, Forexmospherians.com
Currencies: Various: Scalp, Swing, Trend Trader
Technical Market Analysis, Site Administrator, Moderator

Comments

  • Dear Genx,

    Thank you for posting and wonderfully explained Forex Trading tip. We are only human, therefore nothing is going to be absolute nor perfect and as we know getting stopped or waiting is par of the course. Excellent idea though, if the set up is not right then just walk away because you rightfully said there will be another opportunity. When I look at a currency pair I think of it as a business and ask myself how long is this business going to be held. It depends on market conditions. Maybe a moment, a day or a week and so on. Asking intelligent questions of a Business can reap intelligent answers, to scalp or not to scalp, to swing or not to swing and so on. Trade entry does need to be perfect, it definitely helps if it is as near as dammit to best entry position but more importantly is where the stop loss is hidden. So as you say trade plan and sticking to the rules is key.

    Best Regards,

    Sir Gissa

  • Thanks Gissa for that post, i like the way it puts things in perspective.

  • Hi Genxtrader,

    It appears I missed this trading tip as well and great job with sound advice involving signals and the Psychology of trading. I really appreciate these charts and pretty easy for pattern traders to follow the price action. Nice set of rules to follow. Well done for being featured on the front page too. Sir Gissachance seems to have a unique way of explaining market dynamics and where a traders mind set should be, excellent job.

    Holmes

  • Thank you my friend, gritting teeth and sitting on hands can be profitable as well.

  • Hi G

    i am relatively new to the forum so just finding my feet .....thanks for sharing .....the interesting thing is that most experienced traders can get directional bias right 80% plus of the time ......let’s face it it’s not that hard 

    so why do so many screw up on entry ?

    In a nut shell it’s the size of stop loss applied to the trade and the traders  appetite for risk/ reward 

    let’s face it if we are in a hurry and want to be a millionaire in 2 weeks those stop losses are going to be tight in relation to the market conditions .....

    so we as traders have some choices ......give those stops more room and accept less return per trade .....or wear the fact that we are going to Be stopped out more and be prepared for multiple re-entries and resultant increased  transactional costs 

    Swings and roundabouts ........but à traders personality must be aligned to the stratgy they chose ...a lot dont réalise this and therefore eventually fail as their emotional IQ is not pulling in same direction sam their trading 

    N

This reply was deleted.

You need to be a member of Forexmospherians - Forex Traders Social Network to add comments!

Join Forexmospherians - Forex Traders Social Network

Helpful Hints

Share a Trading Tip, Trick, Knowledge or Technique with the Community. Try to avoid just simply posting a link or video and saying this is great. Explain what makes it great or how this was useful. Sometimes things are simply entertaining but still useful and so explain in detail with diagrams, photos or charts. Descriptions with as many details are always interesting to read and so say what could be useful to know here. Community members are welcome to comment, ask questions or add to a post.

"Keep a Record of the Business or Currency Pair Traded. Reasons why the Trade was taken. When was the Exit. How and why the Trade turned out the way it did"

"It's my pleasure to be part of this forum, which is always different than other places & with a friendly environment. Glad to be in this team"

"Yes, the truth requires neither our belief nor understanding. However to harness truth and apply it for our benefit we must at a minimum allow that it is possible".

"We all know we will never be 100% Accurate with 100% win rate over 100's or 1000's of trades - but as long as your winning pips and money - add up to a lot more than your losing pips and money - then "Bingo" you are successful winning FX trader"

"I figured this was a legitimate break, so I went on the hunt for evidence, so here in succession is the list of clues I used to make my decision:

Rejection of market and weekly pivot at ema confluence.

Complete and broken head and shoulders on 1hr time frame.

Broadening formation on daily with test and rejection of 200 day ma

Bull hinge on daily and Renko stochastic.

Positive momentum on 5min, 1hr, 4hr and daily chart"

"Remember that all models are wrong; the practical question is how wrong do they have to be to not be useful" - George E. P. Box

"Sometimes You Win,

Sometimes you Learn".

"Forex Market analysis relies on two types of analysis much like Stock Markets:

Technical Forex Market Analysis views the data on a chart and considers that the News and Data is built into the Price already (economic, political, social, sentimental and psychological). Various tools and indicators will be used by technical traders, for instance MACD, Bollinger Bands, Moving Averages and more.

Fundamental Forex Market Analysis also uses indicators, for instance reports, Gross Domestic Production (GDP), Retail sales, Consumer spending, Industrial Production, Consumer Price Index, Commodities, Economic Calendars, Balance of Trade levels which could identify Trends between other Nations and more."

"Short rapid bursts and quick glimpses of an entry, trigger activated, trail in place and exit strategy and plan already set. Within a blink of an eye, instinctively the buy/sell button is pushed. The hammer falls and clanks decisively, echoing, sparking, like steel upon steel and the trade is executed. A Traders heart beats on with perfect set up, closely aligned with strict parameters, ready to continue the attack or recoil on a wire. Wrap the profit and then stand down, ready for the next hunt"

"When we are talking about sentiment it is very hard to say that this sentiment will prevail another 6, 9, 13 hours. Sentiment is not a constant line. Main trend is bearish, tech picture on daily is bearish, even intraday neutral. Nobody restrict to play long eur short usd position with the target at 1.12 or even 1.1361, this is every traders individual choice as always"

Activity

Viktor posted a blog post
yesterday
Viktor commented on Viktor's blog post Doodling
yesterday
Forexmospherian commented on Sandy Smith's blog post How to trade like a robot?
Saturday
Sir Gissachance commented on Sandy Smith's blog post How to trade like a robot?
Saturday
Sir Gissachance commented on pixta's blog post Cheerful FX Alternator
Saturday
Viktor commented on Viktor's blog post Doodling
Tuesday
Viktor commented on Viktor's blog post Doodling
Tuesday
Viktor commented on Viktor's blog post Doodling
Tuesday
Viktor commented on pixta's blog post Cheerful FX Alternator
Tuesday
pixta commented on pixta's blog post Cheerful FX Alternator
Tuesday
pixta commented on pixta's blog post Cheerful FX Alternator
Tuesday
pixta commented on pixta's blog post Cheerful FX Alternator
Tuesday
This is great Daniel. Happy that it helps you a little. Thank you vm.
pixta commented on pixta's blog post Simple Forex
Tuesday
Daniel Stasziek commented on pixta's blog post Cheerful FX Alternator
Tuesday
pixta commented on pixta's blog post Cheerful FX Alternator
Jul 9
pixta posted a blog post
Jul 9
pixta commented on pixta's blog post Simple Forex
Jul 9
pixta commented on pixta's blog post Simple Forex
Jul 9
Paul McDermott is now a member of Forexmospherians - Forex Traders Social Network
Jul 9
More…