Friday January 11, 2019 - 19:37:55 GMT
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How to Make a Difference in Your Trading
Here is a trading tip that can make a difference.
If you are looking to be a successful trader you need to avoid the low probability trades that take a toll on your account. I am speaking from experience as to this day I still need to fight the temptation to pick a bottom or top based on gut and emotion rather than using discipline and patience.
Look at this 15 minute Amazing Trader chart from January 11 for an example. When you see a straight line move down (or up), it suggests real flows driving it and if you look to pick a bottom or top during it, you are simply acting as a liquidity provider with unlimited risk.
This is especially true if you see no Amazing Trader red lines (in a down move) or blue lines (in an up move) in a one way market.
So the question is, how to trade in a one way market?
1) Hopefully, as the chart shows, be positioned on the right side ahead of the move
2) Close your eyes and go with the flow or use a shorter time frame to find a retracement to enter a trade with the flow.
3) Be patient and wait for th4 Amazing Trader to give you a sign of a potential bottom (or top). – see chart
In any case, trying to outguess the market is a trade based on hope (that you timed it right) is a low percentage trade that can kill your account if repeated.
Take another look at the chart and study it as following the logic of the Amazing Trader can be crucial in instilling the discipline necessary to avoid the temptation I described above.
P.S. In the illustration, I did not show the other side of the trade, which was the market buying EGBPUSD as EURGBP fell sharply. If you want to learn more about how to use the clues given by crosses, such as EURGBP to trade spot (e.g. EURUSD, GBPUSD), Contact Me.
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