Moving Along

Well it’s been another busy day all round and it was looking a bit glum with TUFXP signalling a trade that triggered by 2 pips before meandering right up to -25 or so. Thankfully, the resistance in place at 1.4711-1.4715 kept it in check and around 15 mins before London open, it simply caved in and reached the scalp. Happy days this week!

I did some scalping which I’ve detailed here and I took 5 wins and 1 loss. I set max risk to 0.5% as I feel it’s always better to practice live than demo. So many things can change between live and demo it’s sometimes night and day especially when scalping. You need to get a feel for spreads, execution etc. I started out pretty early (5AM london time) and took 5 wins but caught out with the big rush at 7.45AM  for 10 pips loss. It’s definitely suitable to sideways markets and as soon as you see a trend forming on 15m chart, it’s time to stop. A pretty decent start though overall.

The EU triangle has been blitzed with a lot of movement since London open. It did initially close beneath the rising trendline but the paper SL was soon hit and it has since risen even further. If it closes above the horizontal line, a long could be considered. So much for chart patterns!!!!

    • julie
    • June 17th, 2010

    Hi John
    mmmm,I took this mornings trade & got stopped out at 30 pips,stop loss was 14719,tess reached 14718,but IG stopped me out.Need to move from IG I know! Was also trading in demo to practise letting it run & didnt get stopped out,typical!!
    Hope to end the week with a win..
    Like the look of the scalping,I much prefer getting in & out as quick as I can,good luck on that


    • Hi Julie,

      I did wonder if people would get stopped out with a 30 pip stop. I still use the 35 pip stop and for sure the ask price would have knocked any 30 pip stops out. Did you get the next two winners though?

    • marco
    • June 18th, 2010

    Ifound this on FXPA and i think its fascinating.It really helps with the confiidence of dealing in a business that has a 50/50 chance.

    Limit your risk (this was attributed to a posting by the Elliott Wave group, however, I was not able to confirm)
    If you risk 50% – you will wipe out as soon as you have 2 consecutive losing trades – 1 chance in 4
    If you risk 25% – you will wipe out as soon as you have 4 consecutive losing trades – 1 chance in 16
    If you risk 10% – you will wipe out as soon as you have 10 consecutive losing trades – 1 chance in 1024
    If you risk 5% – you will wipe out as soon as you have 20 consecutive losing trades – 1 chance in 1,048,576 (about a million)
    If you risk 2% – you will wipe out as soon as you have 50 consecutive losing trades – 1 chance in 1,125,899,906,842,620 or about a BILLION!
    Somewhere between 2-5% is the maximum amount you can risk
    The average bank trader or hedge fund only risks 1% to 1 ½ % of the account.
    If you can’t be successful trading a micro account, don’t go up to a mini account. Don’t go up to a standard account if you can’t make a micro or mini account work.

    • Hi Marco,

      1 in a million sounds good enough for me! Nice little find there!

      I wish this trade would make it’s mind up! Stiff resistance on monthly highs.

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