Help 4 Struggling Trader

[pipsaholic]

Hi,
I am looking for some advice from some more experienced trader to improve on my trading system/rules. I have removed a lot of indicators from my system and I am designing my own based on the past 9 months experience in learning and experimenting.

Please review and add or take away what you feel may benefit my system.

Trading Rules

Morning Setup

Watch or read a motivational trading video or article and visualize your day
Log into your MT4 trading platform and broker account set up your charts
Check & print out news for the day stick on your whiteboard
Analyse forex factory interactive discussions to get a feel/buzz/hype for the day

Pre Trade Checks

Analyse the trend filter and look for multiple red/green circles
Analyse at major & minor pairs trending using the 3 SMA 30, 50, 100 and filter out good/bad opportunities (close down the bad ones)
Write down the pairs on your whiteboard your strongest opportunities in the market and reasons why
Analyze the average true range and projections check the overnight Asian session moves
Decide if market is in a Trend, Range or Breakout phase

Main Analysis

Analyse longer timeframes for the trend ensure they match up approximately
Analyse M/W/D/4/1 candle colors match as many up as possible
Analyse and draw major and minor areas of support and resistance levels on higher timeframes preferable 4/D/W/M timeframes -
minor on the 1 Hour. Use market structure extreme points sharp swings.
Analyse the slope up/down detect harmonic waves bouncing off support & resistance, trend lines
Analyse market supply and demand zones (market turning points over previous few days) on multiple timeframes confluences
Analyse flags, triangles, range patterns vortex points and decide if you will be swinging or breaking out depending on pattern confidence (stay clear of expanding triangles and diamond patterns)
Detect psychological levels round numbers 1000, 500, 100, 20 and 80 levels check if you can match them up with major and minor structure points. Also, check If trend lines start and finish with round number both east and west points.
Match up Fibonacci points on the M/W/D/4/1 look for confluence points to match up on the above on your setup charts
Match pivot points M/W/D/4/1 to major and minor structure points of your own if they do not confirm leave them out
Switch to line chart and look for double/triple tops
Analyse candlestick formations on the higher and current timeframes look for patterns and confluences
Look for ABCD/Gartley/Butterfly patterns measure AB CD legs fall in line with 38-61.8% fib levels. Also, look for possible projections to the 100/127/161.8% fib extension levels.
Analyse MACD/RSI for trend points and divergence levels and extreme overbought and oversold levels
Measure risk/money ratio at least 1:1 or higher reward ratio to enable trade to take place
Write down all your analysis in a trading journal and decide if it sounds good and has multiple reasons 3-10 points to trade

Entry Rules

Keep your mobile nearby and broker phone number on whiteboard
Enter trade on the 15/30 min charts
Look at the clock and session timings!
Wait for a rally or dip
Wait for the close of the candle
Look for double/triple candlestick formation analyse the momentum of the market
Set your stop loss, entry, 2 take profit levels BEFORE you pull the trigger
Hit Buy on a red candle and Sell on a green candle pin bar if possible

Exit Rules
DO NOT MOVE YOUR STOP LOSS LET IT GET HIT
DO NOT MOVE YOUR TAKE PROFIT LEVELS
CLOSE 80% TAKE PROFT LEVEL 1 AT 22 POINTS/20% TAKE PROFIT LEVEL 2 AT 44 POINTS
WRITE DOWN YOUR RESULTS IN YOUR TRADING JOURNAL
AFTER 2 WINS OR LOSSES CEASE TRADING FOR THE DAY

[capsmart]

Oh boy Oh boy !!!
This is not trading. This is a nightmare.
I like the first one. Visualize your day and watch a motivational video
I would definitely keep the last 2. (write down results and after 2 wins call it a day.
For the rest I have very strong doubts.
You are trying to control the market. You want to be 101% certain for your trades. You do not want to miss the slightest possibility/opportunity... but it is not going to work that way.
First you have to decide what is your time frame. If you want to be a 1h trader it is ok to watch the 15min and the 4h.
I would also say it would be good to concentrate on 1-2 pairs.
All we need after all is a 10 pip winning trade per day (every day).
This can also be translated to a 50 pip winning trade per week.

All you need is screen time. Just take your favorite pair and start watching it. But really watching it. Think about each closed candle what is the story it has to tell. How far did it go. Those candles represent people taking decisions. What on earth made them decide to go long and make the price move 100 pips in 5 minutes?
What will they do when price will retrace 60 pips? 80 pips? Think and analyze price action.

Support and resistance areas is key. And after s/r money management. First you define your stop loss. Then you define your take profit. Those are not fixed numbers like 30/60. It depends on the market. If your risk/reward is better than 1:1 (risk 20 pips to make 20 pips) that is ok.

So take it easy. For me trading is like an art and not an exact science.

[Trade Spotting]

Hi pipsaholic,

I'm with Capsmart here! Chill out a bit!

By the time you just got to read through your 'to do' list you will have missed the day's trading and be needing to brush your teeth and head to bed!

I have a Science background so, I love procedure, methods and rules too though but, you've just got way too many.

I'll do a cut'n'paste revision of yours later and send on to you. Will be just my humble thoughts though!

Mary

[pipsaholic]

Oh boy Oh boy !!!
This is not trading. This is a nightmare.
I like the first one. Visualize your day and watch a motivational video
I would definitely keep the last 2. (write down results and after 2 wins call it a day.
For the rest I have very strong doubts.
You are trying to control the market. You want to be 101% certain for your trades. You do not want to miss the slightest possibility/opportunity... but it is not going to work that way.
First you have to decide what is your time frame. If you want to be a 1h trader it is ok to watch the 15min and the 4h.
I would also say it would be good to concentrate on 1-2 pairs.
All we need after all is a 10 pip winning trade per day (every day).
This can also be translated to a 50 pip winning trade per week.

All you need is screen time. Just take your favorite pair and start watching it. But really watching it. Think about each closed candle what is the story it has to tell. How far did it go. Those candles represent people taking decisions. What on earth made them decide to go long and make the price move 100 pips in 5 minutes?
What will they do when price will retrace 60 pips? 80 pips? Think and analyze price action.

Support and resistance areas is key. And after s/r money management. First you define your stop loss. Then you define your take profit. Those are not fixed numbers like 30/60. It depends on the market. If your risk/reward is better than 1:1 (risk 20 pips to make 20 pips) that is ok.

So take it easy. For me trading is like an art and not an exact science.

I am not trying to be perfect in the market I know I am guranteed to lose. My main anaylsis points are just for reference IF the market meets 3 or 20 or so point the more the merrier but I do scan down my list to see if I can add confluences. People who say use only S&R and trendlines and nothing else sorry but its not enough imo. You need to check the range, spread costs and news etc. I think I should of made it a checklist before I trade rather than this is exactly what needs to be in place to pull the trigger. My trigger charts are the 15 min and do all my analysis on the hours and 4 hours. The only thing I pay attention to on the daily is trend and colour of current /type candle. The 20 and 80 numbers I have found helps more than guessing where your support or resistance lines should be great. A successful trader from a successful trader who is very profitable told him that the 20 and 80 levels where his edge in trading. I disagree with concetrating on 1-2 pairs as you could be in a range for days/weeks and end up not trading which I was doing now I am looking at about 8 majors and 12 minors and I am learning a lot more on how price waves about. I disagree with only have a 10 pip winning day as 1 big news/unexpected whipsaw can wipe out last 4 days profit and work. I go with the view take a small 10-20 pip scalp exit 80% and ride the market by 20% and move to break even safest way I dont care if price comes back to hit my stop I will renter as usually price hits your stop and reverses seen this so many times.

Thanks for the advice, but I am still struggling and thinking I may need 1-2-1 tution or work for a trading firm or sumthin.

Hi pipsaholic,

I'm with Capsmart here! Chill out a bit!

By the time you just got to read through your 'to do' list you will have missed the day's trading and be needing to brush your teeth and head to bed!

I have a Science background so, I love procedure, methods and rules too though but, you've just got way too many.

I'll do a cut'n'paste revision of yours later and send on to you. Will be just my humble thoughts though!

Mary

I do not feel overwhelmed with my plan Mary to me trading is all about a filtration process weeding out the bad info from good when your either trading or learning and thats what it is.

Thanks.

[capsmart]

This is excellent pipsaholic.
I see that you are determined to follow your plan and this is a good point.
You know a lot about indicators and systems and are willing to learn more. It is my fault that I did not read clearly your first lines. You are looking for "some more experienced traders to help you" and that made me believe that you are a novice in trading. Usually 9 months is not enough time but it depends on the way you spend them and it looks like you did a lot of homework during this time.
Each of us has his own style and there is not a "correct" way of doing it. Some make money just by watching the lunar cycles and some need some extra confirmation.
Concerning the 10 pips is just an example of not needing to trade a lot and this is why I said 10 pips every day. So one day you make 100 and the other you lose 80. As long as the result is positive it is fine.
I wish you good luck and would be interested to follow your progress.