Trade with the Trend
Posted: Mon Sep 14, 2009 9:38 pm
Hello Edward,
I check the different period charts daily to ascertain the prevailing market trends and determine trading approach for the day. The conclusion is from the indicators of the EMAs (10, 25, 50 and 200), Parabolic SAR (default), and MACD (default) on respective charts.
The current EUR/USD overall picture displays the positive uptrend in the longer time frames (weekly, daily, 4 hours and 1 hour). Those < one hour charts, especially the 5 mins and 1 min. periods, show more erratic (unpredictable) candlestick movements, but also moving towards the positive uptrend direction.
However, as an intraday trader using the 1-hour chart as guidepost, and trade on the 5 mins chart with entry and exit orders, my difficulty is to obtain winning trades successfully. On many occasions, the BUY Orders were forced to close prematurely due to trend reversals resulting with reduction of the usable margin quickly.
Now at a dilemma assessing my past inexcusable trading performances, and would appreciate your professional advice to the following:
1. Should I trade according to the “big” picture trend and discard the erratic and inconsistent candlestick movements on the < one hour charts despite the attraction of earning some pips by chasing the erratic trades, and later end up the net loser.
2. Should I wait and concentrate for the right trend emerging from the breakouts of ranging situations and then make an entry position? That is to trade when the circumstances and time are right.
3. Should I neglect the short-lived opposing trend reversals and whipsaws, knowing that the future market performance moves towards the “big” picture positive trend direction as indicated by the weekly, daily and 4-hour charts?
4. Should this be the adopted approach, what is the possibility of gaining more winning trades after discounting the lost trades?
5. Should the take profit position be left opened until the opportune time necessary to close the position, or pre-set a profit target as LIMIT while making the Entry position. Alternatively, is there a method to determine the take profit position from the continuing market trend?
There is an explicit meaning towards THE TREND IS YOUR FRIEND, and is left to the traders' interpretation.
After going through all these trading uncertainties and nightmares, it has come to my understanding that Forex trading is not so easy as A, B, C, that has been advocated by many marketing companies promoting their state-of-the art forex trading systems or trading techniques able to win in the Forex market successfully.
If so, I need not have to learn forex trading strategies diligently to trade with the trend.
Thank you.
Regards.
George FXtrades.
I check the different period charts daily to ascertain the prevailing market trends and determine trading approach for the day. The conclusion is from the indicators of the EMAs (10, 25, 50 and 200), Parabolic SAR (default), and MACD (default) on respective charts.
The current EUR/USD overall picture displays the positive uptrend in the longer time frames (weekly, daily, 4 hours and 1 hour). Those < one hour charts, especially the 5 mins and 1 min. periods, show more erratic (unpredictable) candlestick movements, but also moving towards the positive uptrend direction.
However, as an intraday trader using the 1-hour chart as guidepost, and trade on the 5 mins chart with entry and exit orders, my difficulty is to obtain winning trades successfully. On many occasions, the BUY Orders were forced to close prematurely due to trend reversals resulting with reduction of the usable margin quickly.
Now at a dilemma assessing my past inexcusable trading performances, and would appreciate your professional advice to the following:
1. Should I trade according to the “big” picture trend and discard the erratic and inconsistent candlestick movements on the < one hour charts despite the attraction of earning some pips by chasing the erratic trades, and later end up the net loser.
2. Should I wait and concentrate for the right trend emerging from the breakouts of ranging situations and then make an entry position? That is to trade when the circumstances and time are right.
3. Should I neglect the short-lived opposing trend reversals and whipsaws, knowing that the future market performance moves towards the “big” picture positive trend direction as indicated by the weekly, daily and 4-hour charts?
4. Should this be the adopted approach, what is the possibility of gaining more winning trades after discounting the lost trades?
5. Should the take profit position be left opened until the opportune time necessary to close the position, or pre-set a profit target as LIMIT while making the Entry position. Alternatively, is there a method to determine the take profit position from the continuing market trend?
There is an explicit meaning towards THE TREND IS YOUR FRIEND, and is left to the traders' interpretation.
After going through all these trading uncertainties and nightmares, it has come to my understanding that Forex trading is not so easy as A, B, C, that has been advocated by many marketing companies promoting their state-of-the art forex trading systems or trading techniques able to win in the Forex market successfully.
If so, I need not have to learn forex trading strategies diligently to trade with the trend.
Thank you.
Regards.
George FXtrades.