Help 4 Struggling Trader

[braveheart2009]

Hi,

 

I am looking for some advice from some more experienced trader to improving on my trading system/rules. I have removed a lot of indicators from my system and I am designing my own based on the past 9 months experience in learning and experimenting.

 

Please review and add or take away what you feel may benefit my system.

 

Trading Rules

Morning Setup

 

Watch or read a motivational trading video or article and visualize your day

Log into your MT4 trading platform and broker account set up your charts

Check & print out news for the day stick on your whiteboard

Analyse forex factory interactive discussions to get a feel/buzz/hype for the day

 

Pre Trade Checks

 

Analyse the trend filter and look for multiple red/green circles

Analyse at major & minor pairs trending using the 3 SMA 30, 50, 100 and filter out good/bad opportunities (close down the bad ones)

Write down the pairs on your whiteboard your strongest opportunities in the market and reasons why

Analyze the average true range and projections check the overnight Asian session moves

Decide if market is in a Trend, Range or Breakout phase

 

Main Analysis

 

Analyse longer timeframes for the trend ensure they match up approximately

Analyse M/W/D/4/1 candle colors match as many up as possible

Analyse and draw major and minor areas of support and resistance levels on higher timeframes preferable 4/D/W/M timeframes -

minor on the 1 Hour. Use market structure extreme points sharp swings.

Analyse the slope up/down detect harmonic waves bouncing off support & resistance, trend lines

Analyse market supply and demand zones (market turning points over previous few days) on multiple timeframes confluences

Analyse flags, triangles, range patterns vortex points and decide if you will be swinging or breaking out depending on pattern confidence (stay clear of expanding triangles and diamond patterns)

Detect psychological levels round numbers 1000, 500, 100, 20 and 80 levels check if you can match them up with major and minor structure points. Also, check If trend lines start and finish with round number both east and west points.

Match up Fibonacci points on the M/W/D/4/1 look for confluence points to match up on the above on your setup charts

Match pivot points M/W/D/4/1 to major and minor structure points of your own if they do not confirm leave them out

Switch to line chart and look for double/triple tops

Analyse candlestick formations on the higher and current timeframes look for patterns and confluences

Look for ABCD/Gartley/Butterfly patterns measure AB CD legs fall in line with 38-61.8% fib levels. Also, look for possible projections to the 100/127/161.8% fib extension levels.

Analyse MACD/RSI for trend points and divergence levels and extreme overbought and oversold levels

Measure risk/money ratio at least 1:1 or higher reward ratio to enable trade to take place

Write down all your analysis in a trading journal and decide if it sounds good and has multiple reasons 3-10 points to trade

 

Entry Rules

 

Keep your mobile nearby and broker phone number on whiteboard

Enter trade on the 15/30 min charts

Look at the clock and session timings!

Wait for a rally or dip

Wait for the close of the candle

Look for double/triple candlestick formation analyse the momentum of the market

Set your stop loss, entry, 2 take profit levels BEFORE you pull the trigger

Hit Buy on a red candle and Sell on a green candle pin bar if possible

 

Exit Rules

DO NOT MOVE YOUR STOP LOSS LET IT GET HIT

DO NOT MOVE YOUR TAKE PROFIT LEVELS

CLOSE 80% TAKE PROFT LEVEL 1 AT 22 POINTS/20% TAKE PROFIT LEVEL 2 AT 44 POINTS

WRITE DOWN YOUR RESULTS IN YOUR TRADING JOURNAL

AFTER 2 WINS OR LOSSES CEASE TRADING FOR THE DAY

[Jonathan Groff]

Hi,

 

I can understand your problem, Forex market is a vast market and all the functions take place on the market is also very vast therefore trader should aware of all the strategies terms and tactics of Forex. Always try to initiate your trading with the Demo account. It will help you the basic terms required for the successful trading and when you are sure to trade the switch to the real account otherwise you will face some trouble in your trading.

[braveheart2009]

Yes, I am way past the demo phase of my forex career. I am at the stage of making my plan simple and effective do you know much about backtesting?

[ForexMike]

One extremely important point you're missing is that you need to watch your trading during news times which can make or break you. Edited December 30, 2011 by ForexMike

[dannydon786]

Braveheart....looking at your analysis and method.....I would not have any time for trading....all my time will be used up in analysing the market.....make it simple.......only 1 0r 2 rules THATS IT???

[braveheart2009]

but that is suicidal you can rely on just the trend and a break off support or resistance it cant be that simple.

[dk1aussie]

Trading is simple and the so called gurus would like you to believe it is not easy - as they keep telling us

it is simple and it is easy ... what makes it hard is ourselves .... we make trading hard .... it is not rocket science ...!!!

[dannydon786]

braveheart as dk1aussie said trading is simple......if you lose 7 out of 10 times that is not bad....you still make money????

[braveheart2009]

In my experience so far following 1 or 2 simple rules like go with the trend and support and resistance is not enough you need to learn so much more and be very cautious. Someone once said its about resisting to trade than trading.

[shabz]

Analysis Paralysis

[maddman]

Braveheart2009, I agree with you. I my opinion with a trained eye going over charts to see if they qualify for an entry is fairly quick. Sure your list is long, but if some rules didn't qualify it cancels out others for the trade, if you know what I mean..? Never be in a hurry to jump in, just to see the trade go against you. Your on the right track in my opinion, stick with it. I suggest you read "Time Compression" by Jason Jankovsky.