06. Monitor And Execute Trades Archives

Using Momentum To Manage Your Trade Exit

 

This is a trader question from the Fibonacci Trading Forum.

What causes me the most difficulty?
Confidence/ Trust in the Fiblevels/ Analysis Paralysis. I recently pulled the trigger on a $500 profit even though it wasn’t near any Fiblevels because it was a solid positive profit. While I believe any gain is positive, and I’m happy with the profit I made – if I don’t trust the Fiblevels then what’s the point!

Neal responds:
Some traders have a strong urge to exit when there is any profit. This limits your opportunity, we are supposed to let our profits run!

I may misunderstand you, but it seems that you are nervous once you are in a trade. At that point you are really depending on momentum and trend to continue. That is where your confidence should be, in the likelihood of a move continuing. At that point you should be more focused on your belief that the move continues, than the Fibonacci levels. Let’s discuss this in a live Fibonacci Trading Forum webinar soon.

-Neal

Trading Shorter Time-Frames When You Shouldn’t

 

This is a trader question from the Fibonacci Trading Forum.

Bert says:
Trading smaller time-frames for a larger time-frame gives me the most difficulty. It sometimes works out for proper entry but real problem is I’ll keep watching the smaller TF and get lost in the squiggles of the market.

Neal responds:

Once you have your trade entry, and your stop-loss is in place do something else! Your success depends on executing your trading plan, not on entertaining yourself with the small market swings.

Your trading plan does not allow for fiddling with every twitch of the market.

Here are some suggestions..

Go for a walk, mow the lawn, ride your bike, do something productive, or look for another trade setup. The more trade setups you find, the more you can trade, so don’t get over-committed to just one position.. The more trades you have that conform to your trading plan, the better your result will be, the more you can profit.

-Neal (FOREX Fibonacci Trading)

The Trouble With Shorter Time-Frame Trading

 

This is a trader question from the Fibonacci Trading Forum.

Bert says:
I need to improve my commitment to higher time-frame trades. I would do better to avoid shorter time-frame trading.

Neal responds:
Ask yourself what is causing you to focus back on the lower time-frames? Sure the lower time-frames can be very helpful, they can give you clues to refine your entries and refine your exits and stop-losses.

The lower time-frames must be viewed in context of the overall trade. The lower time-frames should influence the way you consider a trade, but it is your main trading time-frame that rules your decisions.

If your setup is still in play, then you don’t have permission to exit. If your setup has not given you permission to enter the trade, the lower time-frame does not make any decisions for you.

Sometimes it helps to have a partial entry or exit based on a lower time-frame trigger. Only if your trading plan allows you to trigger based on the lower time-frame, should you allow that decision. If not, stick to your trading plan.

-Neal (FibMaster’s Fibonacci Trading Course)

The Best Way To Learn Fibonacci Trading

 

Here is a typical email question from a trader.

Dear Mr. Neal Hughes

Thank you very much for your video seminars.

Excellent course. I was aware of Fibonacci levels but the wonderful SK levels are new to me. The methods you explain are simple and awesome. I tried in different currency pairs in demo account and found excellent result. I keep practicing some more time with stop loss and money management as you guides.

If you have any advance training CDs, please let me know. Please also send me TRSI indicator to try with Metatrader 4 platform.

I also need one more advice from you. As per your knowledge & experience, please suggest me few names of Forex brokers who are clean and straight forward in their dealings.

Once again thank you very much Mr. Neal Hughes for your straight forward and open hearted teaching.

Regards

S.N. Suren.
 

Neal’s response;

Suren,

Thank you for your kind words. Yours is a common theme, many traders rave about my seminars, and their email pleases me greatly.

You have all 5 of my recorded seminars now. I may make some more in the future and will let you know, but for now you have them all.

There are some live seminars/webinars that may interest you. I only have these a classes few times a year, and there are a couple of seats left, see here;
http://www.fibmarkets.com/training-workshops/

Trade carefully as you move from a demo to a real account, manage your risk to ensure that you will survive the learning process.

The TRSI for MT4 is on the way to you in a separate email. Please keep this indicator confidential, it is proprietary.

As for brokers.. At this time I am not comfortable making a recommendation. All brokers have their down-side and most have their positive aspects too. Unfortunately there is no perfect broker!

Best wishes,
-Neal.

Advanced Fibonacci Stop Loss

 

The following is an extract from an original post I made on the TraderZine Forums.

On the subject of stop-losses…
 

Novice traders will place a mechanical stop-loss that does not take into account market action, momentum, volatility. A Fibonacci based stop-loss takes all of those into account. Also, a novice trader will blindly cling to hope when the trade is not working out, wishing that the stop-loss will not be reached.
 

It doesn’t take much skill to realize that a trade is not working out. Watching price action and minor (lower-time-frame) Fibonacci levels, you can tell whether momentum is going against you. Why wait for your stop to be hit? You can exit well before the Fibonacci stop loss is hit, and you can re-enter if you like.
 

As traders improve their loss management, the Fibonacci stop-loss will be merely a “disaster-stop”, but the actual losses will be much smaller, because the Fibonacci stop-loss is not hit all that often.
 

-Neal Hughes “FibMaster”

Managing Profit Exits and Stop-Losses

 

This is a trader question from the Fibonacci Trading Forum.

Kim says:
What causes me the most difficulty?
Where to take profits and managing the stop loss.

I have several specific strategies to help with this. Most traders focus first on entry technique, ignoring the problem of exits. It is a comment on your advancement that you are giving attention to the problem of exits. We can cover some of these strategies in our member webinars.

We’ll discuss this in a future Fibonacci Trading Forum webinar.

-Neal (FibMaster’s Fibonacci Trading Course)

Pulling The Trigger

 

This is a trader question from the Fibonacci Trading Forum.

Martin asks:
I seem to be waiting for the optimum trade and then do not pull the trigger, but then see it go the way I thought it would.

Neal responds:
There are several primary causes of this problem;

Lack of confidence.
Fear/Risk.
Over analysis/indecision.

We’ll discuss this in a future Fibonacci Trading Forum webinar.

-Neal (FibMaster’s Fibonacci Trading Course)