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Monthly Archives: October 2012

Counter Trend Trading

Today we have been counter trend trading. Counter trend trading is basically trading against the trend. Now depending on what time frame you trade you could be counter trend trading without realising it. For example if the daily trend is down, and you are trading the 15 min time frame, and that is in an uptrend you are counter trend trading the daily trend.

Trading against the trend is very risky, and should only be undertaken by very experienced traders as you can lose a lot of money very quickly trading this way. I like counter trend trading myself and often trade this way. I don’t encourage my students to do this though, but i can teach you how to do it very successfully. Its not something i do every day, but today was a good opportunity to CTT, so i did. 🙂

OK so here are my counter trend trades for the day.

We took 6 trades in total, for a profit of 58 pips. It does not sound a lot for 6 trades, but when you are countering, you cant afford to hang around waiting for big pips, you have to take what you are given.

The first trade of the day was a Euro short entry at 12953, exit was at 12939 for 14 pips.
At the same time we had an EJ short trade which did not really play out as expected so we closed that one for 4 pips profit.
The second trade of the day was a Cable short trade. Entry was at 16151, exit was at 12986 for 14 pips again.
Then we had another Euro short for 4 pips followed by another Cable short at 16170 exit at 16158 for 12 pips.
Last trade of the day was Euro short at 13003, exit was at 12993 for 10 pips.
6 Trades 6 winners.

I also have another Cable short at 16181 that is still running. I may get this off tonight for a small profit, or i may let it run until tomorrow. We should have a decent move down tomorrow in dollar pairs as the dollar has been pretty weak today but i expect it to come back tomorrow so i will be adding short trades on tomorrow, trading with the trend. 🙂

If you want to learn how to trade Forex like a pro please consider my Forex training and mentoring program. Its well worth the investment. When you know what the chart is telling you you can trade in any direction and make money. For more info please click here.

How To Enter A Forex Trade. Don’t Chase Trades

Don’t chase trades.

This is a good tip for you if you are struggling, don’t chase trades. The pros do not chase trades. When you start chasing a trade you pay more to get into the trade, and you tend to get out at the wrong time as you are trading emotionally. Set up your trade in advance so you are ready to go when the price comes to your entry, you can then trade with less emotion, and you are more likely to exit the trade at the right time, as your head is clear of emotion.

Emotional traders have a real hard time making consistent profits from Forex trading. You have to trade as mechanically as you can. If you see a set up you take it, its as simple as that. Don’t force trades either. If a set up is not there don’t trade. I have seen a few good trades pass me by in the last couple of days as i have been busy with other stuff, and i have been itching to take a trade, but i just compose myself and be patient and wait for the right trade to come along.

Some Forex traders will take 20 or 30 trades per day. This in my opinion is just gambling, you can’t possibly have 20 or 30 good set ups per day. This type of trading is very stressful and can be very costly. I much prefer a laid back approach to trading.

The correct way to enter a trade in my opinion is to do your analysis, set up your trade and wait to get filled. Jumping into a trade because you think you are missing something will cost you big time. You may get lucky and jump on a good trade, but long term you will lose with this style of trading. Also when you are in your trade try to manage it correctly and try and find a logical exit for the trade rather than just going for 10 pips, or 20 pips. If you can find a logical exit at 14 pips take it. 4 extra pips can add up to a lot of money over the course of a week.

2 Trades For Yesterday And Today 53 Pips.

We took 1 trade yesterday on the Euro Dollar short. The entry was at 12962 the exit was at 12930 for 32 pips profit.

Today we took a short on EJ for 21 pips. Our entry was at 101.27, and our exit was at 101.06.

We missed a good long set up on Euro today, which would have netted us around 30 pips, but we don’t chase trades. If our orders are not filled at the price we want to pay then we let the trade go.

I am just writing a short article on how to enter a trade. You can read it here.

3 Trades Today. 78 Pips Profit.

Not massive pips today but 3 solid trades.

First trade of the day was an EJ short at 10058 exit at 10042 for 16 pips.

Second trade was a Euro short at 12918 exit at 12905 for 13 pips.

Last trade of the day was another Euro short at 12939 exit at 12990 for 49 pips.

Good start to the week. Not bad pips for a Monday. 🙂