Just a quick rundown, I've been studying trading for almost 2 years and I'm starting to understand a lot but I'm not yet profitable. My style that I like so far is urban forex style, for those who don't know it's basically price action. No indicators, trend trading by finding the pullback. The problem that I'm having right now is figuring out when the pullback ends and the which way it's going to go. Can someone suggest to me a book or course, preferably a book that just focuses on gauging momentum. I haven't read many book s because a lot of them are just all over the place., The last book I actually read the whole thing and really enjoyed it was called the secrets of trading the first pullback. This book was mainly focused on different types of pullbacks, not too much nonsense in it but it didn't actually tell you when the pullback is ending. I'm looking for a book similar for gauging momentum or focusing on when the buyer or seller takes over and why. Appreciate any suggestions and thank you
You can't know where the pull back will end. Your job is to find trades that will offer a good risk to reward setup, then you let the probabilities play out. On a specific trade, you shouldn't really care if it works out or not, as long as it's within the rules. The problem with trading is, that it's really really easy to do stupid shit and lose money. If you want to have the slightest chance of succeeding, then you should only trade specific setups that YOU KNOW has an edge(profitable over a larger set of trades). Keep observing and looking for repeatable patterns that offer a good risk to reward ratio and have a positive expectancy and keep building your playbook. Anything else is almost guaranteed to make you lose money. This means you'll be waiting most of the time. You are unlikely to be profitable either way, so by doing less you are saving money. Reading books on trading won't get you far in my oppinion, waste of time. A good mentor can increase your chances of survival, but good luck finding one. Trading just price action IMO is the best strategy to exist, because you are literally seeing what is happening. Problem is, it's the hardest to learn. If you are trading an MA cross, you see a cross, you press the button, and with price action it's much more complicated and takes a long time to learn. What you should focus on is finding a reliable support or resistance levels(on the left side of the chart and preferrably on higher timeframes) and then a pattern happening in the moment(right side of the chart), on lower timeframes. Buy bullish patterns that you know have an edge at support and sell at resistance. It's simple, but it works. You have to evaluate the market conditions too though and see in which conditions certain patterns work best. Trading should be kept as simple as possible. But trust me, you'll find a way to step on your own d*ck. Even once you have the best, profitable strategy. Without a properly trained mind(or strict rules&discipline), you will still fail.
My simple method, I too struggled for years, always buying to big a pull back, which was actually a reversal. These days....... M1 Index's mainly 12SMA, go with this direction mainly. BB 8sma 2.5Dev. Use this range to enter with 12's direction, exiting on the BB's range failing. Adapts to market conditions, avoid choppy times after market open / news and it kicks ass. 10% of your profits appreciated
Hello Huh u,, You will not know when the pull back will end, so come up with a criteria for you, that tells you when the pull will probably end and reverse and you enter the trade. It will not work all the time. We can never be exact when a pull back will end, we have to use probability even with our entry and assumptions when looking at price. We use a stop loss to tell us that we are wrong in this pull back entry and we be happy with that. But realize you are enter in a pull back because you have high odds price will go back in the direction it is pulling back from. Note: I am currently a non-profitable day trader. Please consider what I say as just my opinion of what I am experiencing so far.