Monday, August 9, 2010

Little Contribution To Community

After 24 consequtive winning days, I want to share for all of you who interested with my style of trading. If you see my trades, you will notice there's lot of in-out trade. Enter - Stopped Out - Re-entry at same or worse price.
Today's last trade happened like this again.

Maybe some of you think how stupid I am stopped out and re-entry at the same price. Why don't enter and not having or further SL so the first trade will succeed. The reason I was doing that all the time because of:

1. "I DIDN"T PREDICT THE MARKET MOVEMENT, I GO WITH THE MARKET"

If there's a consolidation, I entered every breakout of it. I got out on small loss so I can bet the winning side. I never predict today's market direction. I don't even care where the market will go today. All I know I want to be in it when it move.

2. "I WON'T PICK THE TOP/BOTTOM OF THE MARKET"

I only enter if there's some confirmation from breaking out. Most of the time it's a fake and I have to cut loss. But still, most of the time I will make profit.

3. "STOP LOSS AT THE LEVEL OF NOT HURTING MY MENTAL"

If there's a setup but the SL is too far away, I won't enter it. I'll wait until the SL is at reasonable spot. Because my winning ratio is not so high so every trade I took, there's big chance to being Stop out. Stop out doesn't mean fail. Get ready for the next setup.

4. "NO BIAS = EASY TO FLIP POSITION"

Consolidation mean there's a fight between buyer and seller. If a buyer seemed having an upper hand, I'll go long and vice versa. Sometimes the upper hand suddenly losed by his opponents, I'll go with the opponent. It happened many many times South, North, South, Back to North. But when the true winners showed, I'll have a good profit in it.

Summary : I suggest you search the best trading setup. And IMO, the best trading setup so far is the setup of breakout consolidation. Why?
1. You entered early.
2. Every MACD, Stochastic, etc will enter after you. They will give you more profit in your direction.
3. Breakout if suceed means one side is loss. The loss side will give up and hand more booties to the winning party aka Stop Loss.

Hope this posts help :)

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