This is a trader question from the Fibonacci Trading Forum.

What part of my trading do I need to improve?
Analysis, Entry & Exit – I think that about covers every aspect of trading.

Neal responds:
Entry and exit are just the start, how about managing the trade, you know-adding to a losing position? LOL
-Neal

This is a trader question from the Fibonacci Trading Forum.

Justin says:
I need to develop trust – once I do the analysis, find an entry point and make the trade – I don’t trust the levels I’ve come up with and pull the trigger to exit right when it starts to go against me.

Neal responds:
It seems that you do not trust your entries? Or are you nervous about taking a loss?

There are two issues that come to mind… The first is the distrust of your triggers. The second is the question of how much room you should allow a trade to go against you, before it continues to your profit exit.

Traders who distrust their triggers should study past trades, and keep a log of current trades. Work to determine whether the trigger has a positive result over time. If you had not distrusted the trigger, and allowed the trade to continue, would it have been profitable? How many times would it be profitable vs unprofitable? Perform this analysis on historical charts, and current ones too. Calculate some statistics, and also plan a viable exit strategy on the losing trades. If you trust your ability to exit bad trades with a controllable risk, you may have less urgency to exit quickly.

On the topic of allowing a trade some room to move, we should discuss that in one of our live webinars. Since we are generally entering when a trade is moving in the right direction, we don’t want to allow too much of a move against our position, but some risk is inevitable.

-Neal

This is a trader question from the Fibonacci Trading Forum.

Justin says:
Hi Neal,

I appreciate you continuing to work to help us become better traders by helping us hone our skills. Here are the biggest things that affect my trading:

What do I struggle with the most?
Overanalyzing – I add Fiblevels on monthly, weekly, daily, 4 hour, etc to try and find the Fiblevels to ensure I don’t miss a level – Then question if the probability of the price action getting there so I slip into “analysis paralysis” and watch the trade slide right on by.

Neal responds:

Analysis Paralysis can be a real problem! If there is doubt about price reaching your profit objective, how about giving it a try, then exit if there is a trigger against your position? That way you are in the trade all the way if it gets there, and you exit with a smaller gain or loss if the trade stalls earlier. If you have enough confidence in the trigger, at least give it a chance?

Also, this issue about the minor (lesser) Fibonacci levels getting in the way, stopping your trading, we should discuss this in a live member webinar soon. This is a common error, I can help you with that.

-Neal

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This is a trader question from the Fibonacci Trading Forum.

Kosta says:
What part of your trading do I need to improve?
Clearly defined rules of a strategy (not a mechanical though…)
proper mindset and flexibility in analysis.

Neal responds:

This is achievable, but requires a little discipline. You can either stop trading, document your strategy, then trade your plan, or you can document your plan according to your existing trades. Every time you make a trade, document the setup, the rules, the strategy. After the trade, make any edits to refine the strategy.

You’ll need to expand beyond your trade setups for a complete trading plan, but the strategy above will get you started.

It will take some time, then you will have clearly defined your strategy, Start today!

-Neal (FOREX Fibonacci Trading)

This is a trader question from the Fibonacci Trading Forum.

Kosta says:
What do I struggle with the most?
In a micro view: when working out chart analysis, I am getting bogged down and paralyzed by too many details of Sup/Res on a lower time frames, and as I realize, it happens when you announce a chart “messy” and here comes a problem of ” sitting on my hands” when this situation mandates not trading.

Neal responds:

OK, you have identified two problems. Here are a couple of possible solutions…

The first is to keep a clear perspective of the trade setup. It may help to write down the context of the trade, the setup and the objectives (exit). That way, the lower time-frames can be seen in context, you can maintain a focus on the overall setup. Barring any major events, while the setup keeps you in the trade, the lower time-frame issues are not allowed to take you out.

The second issue of taking trades when you are not supposed to. Again, that is an issue of not following your plan. If you do not have a setup, or the markets are not trending etc, find something else to do! Maybe you need a hobby, or a girl-friend. I recommend the latter, it’s quite enjoyable, and will keep you plenty busy!

-Neal (FOREX Fibonacci Trading)

Today we had a 50 minute webinar for members of the Fibonacci Trading Forum, on the topic of “Pulling The Trigger”.

This webinar recording is packed with solutions to several other trading problems, as well as the “Pulling The Trigger” issue that many traders struggle with. The recording is available to members, for only $9.95 you can view it, and other recordings too.

Below is a free preview of the webinar, on YouTube;

FibMaster video Pulling The Trigger

This is a trader question from the Fibonacci Trading Forum.

Bert says:
What is not working for me now?
Mental discipline of when to stay out of market and when to halt the trading. The patterns I was taught work there is no question but sometimes they don’t… So many times I’ll re-enter only to get stopped again. And of course once that happens I may hesitate on one that works. Blending the Higher Highs or Lower Lows and TRSI triggers is very helpful but I struggle with trusting a continuation of a trend.

Neal responds:

If you have confidence in your system, and your risk is within tolerance, it will be easier to stick with a trade, and to take the triggers.

Review your strategy, review the results. Check that your risk is acceptable, and whether your setups are reliable. Sure sometimes there will be losses, and some days it will be stressful. But over time you should come out ahead. With that knowledge, your profitable outcome, you should be able to trust the trend execute your plan.

-Neal (FOREX Fibonacci Trading)

This is a trader question from the Fibonacci Trading Forum.

Bert says:
What would make the biggest difference to my trading?
Being consistent, staying with trade to completion and minding the trend.

Neal responds:

That’s great, you know how to boost your profits! Make a solid trading plan and stick with it.

What if you can’t stick with your trading plan? Every time you break your trading rules, stop trading for the rest of the day. If that doesn’t help, stop trading for a week. That should give you some incentive to stay with your trading plan…

-Neal (FOREX Fibonacci Trading)

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)