Trading challenges

I had been busy with life and trading recently since I created my own thread  'TMS for M30 charts' to share my trading on ForexFactory.com (ff). I have been really enjoyed posting my trading experience and also receiving many sharing from others who have followed my trading style from TMS thread. 

My trading stepped into another level where I am now looking at chart on a different angle by focusing on price actions rather than any indicators. I became one of the top 1% on ff. Big thanks to those who supported me on my trading journey. I hope I am going to be  more consistently successful. 

Money management is one of challenges most traders find it really hard to do it right. I read a few comments from other seniors who advised to take partial profits and let the rest running and cutting our losses if the trade goes wrong.What if you could only have one shot to be in and out due to small capital?

In my opinion from what I have learnt and experienced, I would set R:R at 1:1 , that means if I were happy with my analysis, I would get in a trade with my stop loss at 50 pips and the same for my profit target,  I would let market do the job to either give or take if I was not able to monitor my trade.

What if I were monitoring the trade and it went in negative 30pips? I then looked at last recent swing low/high and current candle close and re-assess the market condition to see if market had just changed or it were a minor retracement by looking at if a lower high or lower low had just formed, etc., or was it facing support/resistant that I overlooked before entering the trade? If you trade on M30 chart like I do, you have time to do such thing and make your decision whether to leave or to stay. 

I heard a lot of traders stumbling up and down when they were in a trade before Frankfurt or London Open (FO/LO), then FO/LO came with a big wave up and down and shook those trades out...unless you entered with solid reasons or you could not stay with the trade. I was there many times. If that is your issue, think about why you entered the trade in the first place and stick with it if your reasons are solid and still valid and within your trading rules, provided you have a trading plan which is a must have.

Over trading is another big challenge when we have a few losses in a roll where it happened very often on a choppy day (Mondays during Asian session with no news or on Fridays during US market). My best advice is you should take a rest and come back to see the chart when our mind and our heart are in a calm condition. Any decision made by emotional drive is usually not a wise one.

Here is a snapshot of a set up of short sell on EUD/AUD on M30 chart before FO/LO where price created divergence (DIV) and had a pullback  (PCRF) which is my favourite set up I combined my trading style (DIV) with Phx62's style (PCRF) who is one of the top traders we all followed on ff. If you got out when FO/LO  pull back, you would have only +30pips, if you stayed in since you trust the setup, you could bag +100pips. 

Happy  trading and greens to all.