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Chapter 8, Part IV. How to apply all these lines in trading? Page 3

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 15, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Commander in Pips: Hold on, son – I’ll show you. Now take a look at the #2 chart. In fact, this is the same chart, but let suppose, that we intend to sell from resistance. See – “Gamble entry” has taken place and very quickly turns to loss, because the market has hit the stop-loss order. The “Proper entry” hasn’t taken place at all – there was no bouncing, i.e. confirmation of this trend line, so you just did not entered into this trade and saved your money!

    Pipruit: Cool stuff. I see.​

    Commander in Pips: And now just imagine these two ways of entering with multiple times – who do you think, who will gain more – a trader that uses “proper entry” or “gambling trader”?

    Pipruit: Ok, I’ve got it, Sir. Now, I’m sure that I have to rely on “Proper entry” and “Gamble entry” will be beyond the law for me. Please hit my hands, if I’ll break this rule.​
    Commander in Pips: Delighted!

    #2 EUR/USD 60-min
    [​IMG]

    Pipruit: But only one question, Sir – even when we see the bounce and confirmation with close price after it, how we could be sure that this is a true bounce and that the market will not return to the downside again?​

    Commander in Pips: Well, later we will learn more tools and how to use them to increase our confidence around support and resistance levels. Second – use the rules that we’ve discussed in previous chapters about different line types. Third – the probability of a breakout always exists. Remember this one – “The market is always right”. It means that although our tools are significantly increase our chances of success, still there could be failures and losses not because you’ve done something wrong, but because this is a probability. Losing trades is a part of this business.

    A good trader is the person who makes less mistakes but not the person who never makes mistakes at all.
     
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