I am a full time Forex trader who is always trying to look on how I can improve my own way of trading with the main objective of making more money. All types of trading can be stressful and lonely at times and we all question at times what are we doing in this market. So I dont really want to work 80 hrs per week stressed out - but i dont mind working 30 - 50 hrs a week and enjoying myself at the same time as earning a good return. So - how do we get there ??
If you are full time you should have at least gone through a few years of learning and studying your market and have various methods of making a consistant return. This might take 2 years - it might take 4 yrs plus - but once you are there you will know. You have done your 10k hours of studying and watching the charts you should know enough to know you will never be 100% correct - but to aim at 70%+ probability is achievable in an intraday market.
The number of pips you make per hour / day or month is also not so important as a consistent profitable P & L account. We all know how important money management is and we know we should be trying to improve our risk to reward ratio etc etc. - so how can we improve ??
In my own case - I prefer a shorter term intraday trading plan - but to become a top trader which we would all like to become you need to be able to trade all different ways - ie "sweet spot" scalping - 35-100 pip swings and longer term 200 + pips runs - and then when you do get to that position - you are then top trader - ie in that special 2% of the tens of thousands of traders who can read the market. That might take ten years plus to achieve - and does not just come with time as so many other factors then come into the equation.
Right lets pick a normal day ( ideally not a Friday ) and lets pick a pair - keep it simple lets say the Euro / Usd and lets say you are going to spend 5 hrs on it to ideally cover the key periods ( you should know them really ). In the day the pair might range 100 -150 pips - but will actually move 300 to 400 pips including the noise. I like the noise and earn my key money in it. So after checking all my time frames - I start trading the eu.
Now i am not going to tell you all my tips etc I have learned ( why should I ?) but I will tell you I trade all ways with no bull or bearish bias. I want to become completely unemotional - (I am British and would like the pound strong - but i will sell it if my time frame says sell).
The "trend is your friend" - well what is the trend - the trend is your time frame !!!. So on the eu chart - if it it bullish for 30 mins or one hr - I will buy and take 10 - 30 pips - simple - its does not matter if the yearly monthly weekly daily 4hr is all bearish - is there a law to say you cannot buy it ??
However - if the whole yearly monthly etc etc etc is bearish and my tick chart is saying sell - i will sell and take my 10 - 30 pips and then leave anything from 35% of my original stake on and let it run.
My "meat" comes in a "sweet spot scalp" with a very small stop (10pips or less) and my "cream " can then come on the knowledge that trade might go to 50 pips - or 80 pips - or even 200 pips ??
Keeping it simple - lets say you put a 10 lot trade on the eu. Your stop is 10 pips or less and your first target is say 12 pips - at 12 pips you collect 70% or 7 lots as profit - and leave 3 lots still on. You have $840 dollar profit so far and you think i want to keep $500 of it - so you have $340 you risk on your 3 lot trade stop - ie say 11 pip stop. The trade continues and it goes to 22 pips in profit and you think i need to now take the rest of my profit as its coming back on me - Decision time - do you take out all of your 22 X 3 lots profit - ie $660 - or just take out 2 lots ( $440) and leave one lot on with a 30 pips stop and leave - not bothering what might happen ?? That one lot might go on to make you 80 pips - or it might go all the way back and is stopped out - so what you still have $ 1000 profit - but if is not stopped out and you pull it at say 39 pip profit - your end result is 840 + 660 + 390 = $1890.
I generally know within 5 minutes if i will reach first profit target.
Traders might think - you have not hit a R ; R of 2: 1 - thats not good - even though the trade i just mentioned - might have taken place in under one hr. I am not going to get 5 more like that in the day - Wrong - I will get another scalp trade during my 5 hrs which will have a 7pips stop and a 28 pips result all within 15 minutes - giving me a R ;R of 4 :1. I will also have one or two trades were i lose 7 pips or even worse 10 pips. But at the end of the day my target is 40 pips and anything above it is more cream
One year ago my target was 20 pips a day - I have improved and knew i was achieving the target too easy. My logic on the eu pair is i have a very good chance of earning 40 pips in a day on 2 - 10 trades in 5 hrs - than the probability of earning 80 - 100 pips per day - Am i correct??? - as i see a lot more 10 -25 pip trades in the day then 50 - 150 pip trades ???
I do have losing days - very rare - I have had 4 trades go wrong one after the other and I have also had 22 trades go correct consecutively. I have read that it is possible even when you are experienced to have more than 10 trades go consecutively wrong. If that does ever happen i will ensure i do not lose more than 15 % of my account.
Love to hear some inputs on this subject from long term guys and even scalpers - new and old - i am willing to listen and learn fron anyone