You can’t succeed on Forex without sharpening your professional skills constantly. To improve your qualification, keep a trading diary analyzing your deals. The diary could be a simple notebook, a text document in your computer or a print screen with notes saved in any graphic editor.
For example, let’s analyze an entry in EURJPY made on Tuesday. A Wolfe Wave was formed on the H1 time frame:
On EUR/JPY we have a bearish Wulfe wave on ТF Н1. Currently the price has come out of the sweet zone and goes to 2-4 line. I recommend to enter in short positions from current ones and it's better to transfer short positions to break-even while tested 2-4.
Stop loss levels:
sl_1 - 141.05;
sl_2 - 141.50
Hello dear friends.
I think that each of you has placed a position in the breakeven zone at least once in the life. However, may be not all of you know this method of capital management. Let’s start from the definition.
Breakeven is a level at which you place stop loss so that in case of its execution a position will be closed with zero profit and loss.
You can often hear the following expression: “to place a position in the breakeven zone +1 pip”. It means that when the stop loss order is executed, a particular position will be closed with the profit of 1 pip.
On AUD/USD at Н4 the Wulfe bearish wave is formed. The price has come out of the sweet zone which is the signal for long positions opening.
You can place stop loss both under 0.8950 and sweet zone 0.8590. On this chart you can see stop loss under sweet zone.
Because the 6th point is only 20 pips higher than 4thtake profit is placed on 4th point's level.
This night, a two-week New Year’s marathon has been completed. Firework displays are over. Kids are back to school. It’s time that we resumed trading.
Let me introduce you to the intraday Wolf waves for gold. I’ve been closely monitoring this pattern since December 2013.
Last week, during the thin market the price managed to leave the sweet zone. To enter the market, you are recommended to wait until the breakout of the resistance level of $1,267, which is found at the crossing point of the latest high and a declining trend line going through points 2-4.
On these weeks with EUR/USD a bearish wolfe is formed. Also there was formed a ”falling star” model (still without approving). The enter is not about pips, sweet-zone is stretched up to 45th figure. I'm gonna enter in long-term trade with 1,4600 stop loss and 1,2050 take profit. At 1,2750 I'm planning to fix half of profit. Because it's the long-term the risk will be 20%.
May the profit be with you!
Dear Traders,
Let me introduce you to the trading system, in which market entries and exits are determined on the grounds of Fibonacci ratios. We are going to enter the market with pending orders (sell limit/buy limit) when the price is corrected to the key ratios of 38.2% and 61.8% from the momentum. Stop loss is placed above the following value: high/low + 5 pips + spread. The risk of 2% is allowed per deal. The maximum number of deals on Forex is 2. Therefore, the utmost loss per one entry is 4%.
So, we have defined the main elements. Now let’s go!
When I ran away from Singapore, they started to understand that something was wrong. The main reason for the bank collapse was its poor money management system.
Nick Leeson. 10.11.2007, Moscow.
Dear friends, last time we discussed the necessity to put stop orders, one of the main tools for limiting losses. Today, I would like to touch the issue of money management and look at it in detail. Besides, we should decide whether the system is useful for forex trading. Let’s start from the definition.
