4H trades and daily trades demand a different MM and mindset.
4H is for sure more funny. 4H trades are all about catching the swings. You cash the money and re-enter in the next retrace. You need master tactics.
Daily trades are all about catching the trends. The perfection is to ride a trend from the begining to the end adding positions (and cashing some of them from time to time). You need master strategy.
Jesse Livermore, most talented trader ever, explains in his memories how he did it. After reading "Reminiscences of a stock operator" your approach to trading never will be the same.
I have never achived to ride a trend from the begining to the end. I tried it, but I take profits too early. I read recently and article about the reasons why most of traders lose money. Statistics say that even the worst traders have more winning than losing trades. The problem is that they keep the losers too much time and close the winners too early.
Most important part of daily trading is patience. And some creativity to deal with the unexpected. Six months ago I started an experiment on daily trading with only one rule: never use stoploss. It seemed so dangerous that I called it Black Mamba, just because that snake has so lethal reputation as the non stoploss trading.
First thing I found out. Entries are not the most important thing for daily trading. There is nothing wrong in being wrong. You can enter in the bad direction and win money if you know how to react. It would take too much time to explain the strategy. Practice is everything. You can use the daily chart naked, draw some R/S levels, a couple of trendlines, nothing of this is really important.
If you are winning, keep adding positions until a strong S/R level comes near. If you are losing use hedge or martingale as price action demands. React. Keep the DD hedged! That´s the most important thing. Sooner or later you will have losing buys and losing sells up and down. Relax, keep wining money in the middle as price ranges and wipe some losers with the profits or, if you feel the trend will pass again by both loser zones, just cash them all and wait. At those moments, there will not be too much stacking, just scalping (zooming to 4H) that will unbalance the hedge as price goes up or down.
Good thing of daily trades is that you have a lot time to think and create strategies. No need to rush. Failures will teach you what you can do and what you can´t. I´m still learning this strategy in demo and make a lot of mistakes but I intend to win 1000% a year. In my live trading I´m winning 20% by month (on Edsel basis) because I have not the guts to do just the same things, but, who knows?, maybe some day, if I feel confident, I´ll try it and for sure I´ll blown my account.
10.9 signals are so easy and clear that it will be a great help to enter into the trend at the right moment, and hopefully no much fight against losing trades will be required. But, if you lose, enjoy it, fight! make the losers become winners.
At the end of the day, daily charts can be so amusing as any other one. After months of keeping bad trades you´ll even develop sentimental fellings for them. Foxozgirl, who kept losing AUDNZD trades for two years (!) surely knows what I´m talking about.
Bob is working on a system that only will take positive swaps. I have no doubts that 10.10 will be a milestone for daily traders. |
