Monday 2 July 2012

How I trade


Seeing as its the start of the month and quarter Im gonna sit on my hands today and see how the market wants to play out for the coming month.
Ive decided to blog about how I trade. Im a discretionary price action trader. What you see on the pic above is pretty much what you get. Im not interested in indicators like bollinger bands, macd and moving averages. Dont get me wrong in my past I have used and played around with these indicators but for some reason I always come back to pure price. I like things to be clean and simple.
I do use things like trend lines, horizontal lines and sometimes fibo's.
When I say Im a price action trader it doesnt mean that I look for pin bars or candle formations though they can sometimes support my idea but rather I mark key areas where I expect buyers or sellers to come back into play. I generally always try to think continuation as it suits my personality better as I rather be right more often and take trades with good risk vs reward but this also means taking less trades which is what Im still learning to master and thats where I also think this blog will come in handy.
As WMD always says if price is going up it can go higher and if its going down it can go lower and when its going up think "where can I buy" and when going down think "where can I sell". I really think this way of thinking can keep you out of a lot of trouble and generally keep you on the right side of the move. I know when I changed my way of thinking to looking for continuation more often it had an immediate impact on my trading. I didnt realise how often I was actually fighting price and trying to pick tops and bottoms. I have never ever heard anyone say picking tops and bottoms is a profitable way to trade. Dont get me wrong most people including myself love to do it but in the long run I think you get yourself in more trouble than its worth and that because you are always on the wrong side of the move trying to play counter trend.
If your interested in learning how to trade price action there really is only one place and that at  http://www.wmd4x.com/  and you can also get some great info from http://www.forexfactory.com/showthread.php?t=206723

J

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