Believe me or not long term trading is one of the BEST way how to earn some money and make some constant results per 1 month !!! Let me explain everything to you. I have understand this lately during my "way of trader" ... and im still hitting my head on the wall ... "why i was so blind ! "
Each trader at the beginning want to trade as much as possible ( am i right ? - i think i m !). You know it is up to each trader what sort of trader he will be (as i said we develop each day to that kind of a trader) but my opinion is that for beginner the long term trading at the beginning is the most "safest" way hot to start . Why ? lets talk about advantages and disadvantages:
Advantages :
- not under a such stress- the speed of reaction on situation must not be such fast.
- clear technical analyzis
- greater TP and SL
- the most important : " you will teach how to be disciplined!"
Disadvantages :
- low number of trades- inner war with yourself like ( " I Wanna trade kmon fast fast fast)
- time ,...it took very long time
All these points are relevant but lets explain them little bit. Advantages are on the half way to disadvantages . When i write the technical analyzis is very very clear that is true ,... The long term trading does not require fast analyzis ( turbo 5 min analyzis ) but you can take a time ,...find the right signals for buy or sell and otherwise the reaction for exiting from the trades is also slower ! You can slowly decide when and how you will exit the trade.
What is more worst is that you will want more and that is the point of this : how to be disciplined - ....If you can hold this you can congratulate to yourself , you can move to the next level.
Try to understand this little bit more because most of beginners are trying to analyze instrument on lower TFs and mainly they are wrong because :
- they are under stress that they will miss the trade
-their reaction on the situation are very slow ! and that is why their entries and exits are wrong = they dont use SL or TP
Realize if you will be able to analyze trend on H4 or D1 and you will be able to enter to the trade clearly and exit from the trade clearly with SL and TP ,...Also for all advanced traders here ....if you have problems with your trading ,... try THIS ONE ! it is not a shame you can only improve yourself ! ,...Wish you all luck !
Did you know we have 3 types of trading ?
- long term trading (D1)
- mid term trading (H1 -H4)
- short term trading ( lower tfs)
This shows some kind of levels which you should accomplish before lower Tfs. Just go step by step - the trading will not run away
Now i will show you how to make such a trade on D1 Tf ,...attaching two pictures with entry and exit point .
To show you how our system which we have built here is working perfect on each tf i made a such trade with that system ,... so here are the comments to the pictures.
1 picture - opening ,...
Many thing which you will see on the pictures maybe you will not
understand but i will try to explain them. So we have
here EUR/USD with our two moving averages :
MA 15 shift -15
The red line named open is the level where we have opened our short position the place is signed with green rectangle . The green rectangle shows us all aspects of signals that we need so lets named them :
* moving averages are for now irrelevant because they are in congestion
* stochastic is in downtrend as it shows our picture. We sell on the level 80 and buy on the level 20
* the blue lines shows us the sequence of our triangle ( pink arrow)
which is also a great signal for short. The sequence of triangle is
A,B,C,D and the E letter is pointing down.
Without any hesitations we have entered to your trade
2.Exiting
As we can see the proces of our trade also the MAs have cleared and gone to sell signal . What now :* the moving averages are too far from each other and there is unwritten rule the lower MA is trying to be closer to higher MA (that is how they work) . so first sign of that we will exit our trade
* stochastic have also changes his possition and the constalation of the lines are getting to buy signal
* the question of our TP and SL is very easy .we can use trailing stop so we wont loose our already earned money. Isnt it easy ?
I will not count here how much money it is !!! do the counting yourself with your lots that you use and you will see what you can earn ! ....
STUDY try STUDY try ,...etc. Make it EASY not HARD!
wish you all luck
