Last thread creation today, I swear! XD
So I've been getting back into the old habit and so far, I've been doing pretty well with VSA. Most of my success has been changing my loss/profit taking strategies, but perhaps an equally or slightly less direct cause is my discipline in trading. For me, a detailed plan explaining exactly what I do, exactly how to take profit and exactly when to cut my losses, has made remarkable difference in my trading. I hope to go live once again soon. If things go as they have, I may very well.
So the plan. THE PLAN. Put it on an altar, kneel before it before every trading session. Follow it exactly, do nothing that isn't in the plan, do everything that is. It's a metaphorical altar and I metaphorically kneel. Technically I just run a computer simulation and don't actually trade (yet) so this thread is pretty much a lie. XD
Ok, so the plan. VSA is difficult to hash into a plan because so much depends on context so my plan is rather elaborate. Do I go long because I see a small down bar on low volume indicating no demand? Maybe. I will try to do a workup of everything I have put together so far (for my own benefit.) In short, I use VSA to analyze the market and then use indicators on smaller timeframes to actually enter the market. I only use moving averages, volatility and volume indicators. I trade the Daily, 1 hour and 5 minute charts, though I do occasionally peek at the 15m and weekly charts for context or a different perspective. I also trade futures, but will focus my analysis here on FX.
As far as money management goes, I calculate the first profit target based on the volatility of the short/medium term volatility and the second based on the medium/long term volatility. Once I hit the short term, however, I lock in partial (50%) profit and begin trailing my stop manually. For losses, if I will accept no more than .5% loss, though I will take a partial (50%-75%) exit early at signals that the market is about to change directions. This limits how much I can lose without getting out of the trade completely, while maximizing how much I can earn while still taking some profit.
One of the most important things: If I am in a trade and manually watching for stops, I will under no circumstances just let the market go where it will. If I cannot stay in front of my PC, I will set alerts (I have used alertfx for many years now) to text my phone at higher and lower price points so I can stay on top of what I need to do. I lost many a trade because I went to bed in profit and woke up stopped out.
Anyhow, without further ado, I will be posting analysis shortly.
So I've been getting back into the old habit and so far, I've been doing pretty well with VSA. Most of my success has been changing my loss/profit taking strategies, but perhaps an equally or slightly less direct cause is my discipline in trading. For me, a detailed plan explaining exactly what I do, exactly how to take profit and exactly when to cut my losses, has made remarkable difference in my trading. I hope to go live once again soon. If things go as they have, I may very well.
So the plan. THE PLAN. Put it on an altar, kneel before it before every trading session. Follow it exactly, do nothing that isn't in the plan, do everything that is. It's a metaphorical altar and I metaphorically kneel. Technically I just run a computer simulation and don't actually trade (yet) so this thread is pretty much a lie. XD
Ok, so the plan. VSA is difficult to hash into a plan because so much depends on context so my plan is rather elaborate. Do I go long because I see a small down bar on low volume indicating no demand? Maybe. I will try to do a workup of everything I have put together so far (for my own benefit.) In short, I use VSA to analyze the market and then use indicators on smaller timeframes to actually enter the market. I only use moving averages, volatility and volume indicators. I trade the Daily, 1 hour and 5 minute charts, though I do occasionally peek at the 15m and weekly charts for context or a different perspective. I also trade futures, but will focus my analysis here on FX.
As far as money management goes, I calculate the first profit target based on the volatility of the short/medium term volatility and the second based on the medium/long term volatility. Once I hit the short term, however, I lock in partial (50%) profit and begin trailing my stop manually. For losses, if I will accept no more than .5% loss, though I will take a partial (50%-75%) exit early at signals that the market is about to change directions. This limits how much I can lose without getting out of the trade completely, while maximizing how much I can earn while still taking some profit.
One of the most important things: If I am in a trade and manually watching for stops, I will under no circumstances just let the market go where it will. If I cannot stay in front of my PC, I will set alerts (I have used alertfx for many years now) to text my phone at higher and lower price points so I can stay on top of what I need to do. I lost many a trade because I went to bed in profit and woke up stopped out.
Anyhow, without further ado, I will be posting analysis shortly.
Currency is a joke. And that's precisely why I trade it.