A Strong Trading Mind
- Thread starter amitrandive
- Start date
How Long Do Good Trades Take To Play Out ? By Nial Fuller
The market is a slow, cumbersome beast. Today’s lesson is designed to prove this to you and to reinforce the need to hold trades for longer than you might be accustomed to or want to. Let the market do its ‘thing’ and give it room and time to move to your profit target.
Average True Range (ATR)
Let’s begin by looking at some solid evidence that markets move in much smaller daily and weekly pip ranges than you might think.
The ATR or Average True Range is a tool that will show you a moving average of the ‘true range’ of a market for a given period of time. Simply put, a market experiencing a high level of volatility will have a higher ATR, and a low volatility market will have a lower ATR. This is important because it gives us some baseline expectation of how much a market is likely to move over the next day or week. We can use this information to help us determine how long a trade might take to go from point A to point B and also for stop loss placement. For example: you wouldn’t want your stop loss placed within the ATR of a market, because you might get knocked out just by the normal daily fluctuations of price. Ideally, you want your stop loss placed outside the ATR of a market and beyond any nearby support or resistance levels.
The typical value is a 14 period ATR, we will use a 10 period ATR for our examples. Keep in mind, ATR is basically a measure of volatility over X period of time, it does not show direction of price, only the volatility of its movement, or the range of its movement. Our purposes of using the ATR is to show you that most o f the time markets are moving in smaller average pip ranges than you probably think, so that means you need to be more realistic in how long a trade might take to play out. That typically means holding the trade for longer than you want to or might be think you should have to.
A 10 period ATR on a daily chart will show you the Average True Range of the market over the last 10 days. Thus, it will give you some expectation of the pip range for the next trading day and even for the next trading week.
Examples of how long good trades can take to play out…
Now that you are aware that markets typically move in smaller daily and weekly pip ranges than you may have assumed before, let’s look at some real-world examples of good price action trade signals that took longer to play out than we may have liked. This should show you the need to adjust your expectations of how long a trade might take to play out
Source- http://www.learntotradethemarket.co...gies/how-long-do-good-trades-take-to-play-out
The market is a slow, cumbersome beast. Today’s lesson is designed to prove this to you and to reinforce the need to hold trades for longer than you might be accustomed to or want to. Let the market do its ‘thing’ and give it room and time to move to your profit target.
Average True Range (ATR)
Let’s begin by looking at some solid evidence that markets move in much smaller daily and weekly pip ranges than you might think.
The ATR or Average True Range is a tool that will show you a moving average of the ‘true range’ of a market for a given period of time. Simply put, a market experiencing a high level of volatility will have a higher ATR, and a low volatility market will have a lower ATR. This is important because it gives us some baseline expectation of how much a market is likely to move over the next day or week. We can use this information to help us determine how long a trade might take to go from point A to point B and also for stop loss placement. For example: you wouldn’t want your stop loss placed within the ATR of a market, because you might get knocked out just by the normal daily fluctuations of price. Ideally, you want your stop loss placed outside the ATR of a market and beyond any nearby support or resistance levels.
The typical value is a 14 period ATR, we will use a 10 period ATR for our examples. Keep in mind, ATR is basically a measure of volatility over X period of time, it does not show direction of price, only the volatility of its movement, or the range of its movement. Our purposes of using the ATR is to show you that most o f the time markets are moving in smaller average pip ranges than you probably think, so that means you need to be more realistic in how long a trade might take to play out. That typically means holding the trade for longer than you want to or might be think you should have to.
A 10 period ATR on a daily chart will show you the Average True Range of the market over the last 10 days. Thus, it will give you some expectation of the pip range for the next trading day and even for the next trading week.
Examples of how long good trades can take to play out…
Now that you are aware that markets typically move in smaller daily and weekly pip ranges than you may have assumed before, let’s look at some real-world examples of good price action trade signals that took longer to play out than we may have liked. This should show you the need to adjust your expectations of how long a trade might take to play out
Source- http://www.learntotradethemarket.co...gies/how-long-do-good-trades-take-to-play-out
It’s time. It is time for you to make a tough decision. Take a deep breath. Get still. Visualize the worst case scenario. After doing that, see your self having made the decision, stepping into your personal power, becoming more courageous and stronger. It is time! Your mental well being, health and happiness are dependent upon you making this decision. If you do not do it now, you will look at yourself one day and say “Why did I waste so much valuable time?” If you do not do it now, you will regret it, and this situation will continue to take a toll on you mentally, emotionally, spiritually and physically!
It’s been said that people delay making tough decisions ~ not because they don’t know what to do. They do not make the tough decisions because they know what to do, but lack the courage and will to deal with the emotional consequences. You can do this!! See it done. You are now operating from a higher place of integrity and personal power and going to the next level in your life. You have something special. You have GREATNESS within you!
Les Brown
It’s been said that people delay making tough decisions ~ not because they don’t know what to do. They do not make the tough decisions because they know what to do, but lack the courage and will to deal with the emotional consequences. You can do this!! See it done. You are now operating from a higher place of integrity and personal power and going to the next level in your life. You have something special. You have GREATNESS within you!
Les Brown
Meditation Can Be the Medication for Your Trading
http://www.tradingacademy.com/lessons/article/meditation-can-be-the-medication-for-your-trading/
Some Excerpts
Over the years, the usefulness of meditation has been scientifically documented in hundreds of studies with regard to physiological, mental, emotional and behavioral benefits. Some of those benefits include:
With consistency, this powerful practice supports the entire system of mind/body and spirit.
So often while trading you are thinking about what happened in the last trade, the last hour, yesterday or what is coming up in the next few moments or tomorrow. In other words, you’re everywhere but where you should be, that is, focused on what is taking place right now – the “what-matters-most” of the trade.
Distractions can come in the form of negative emotions like fear, greed, and anxiety, all of which can distort perception and make illusions seem real. Consistent meditation hones an appreciation for just “being,” without timetables, goals or effort. The central idea is to be mindful and aware of your internal/external environment by surrendering to the moment and letting things be.
Your trading requires the best you can give while activating and accessing all of your internal and external resources. Trading is tough and as you meditate, with consistency, you will develop greater capacity for patience, calm, sharpened focus and being less distracted by negative emotions. Diligent and consistent meditation will help you to reduce distorted judgment by building emotional strength and a level of detachment. Trading is almost exclusively a mental art. During your trading process you are preparing, analyzing, processing or executing a trade; all of which require mental and emotional tools. You’ve got to have mental and emotional tools in your tool belt, otherwise it’s like driving without a steering wheel; you will lose your way and crash and burn without them. Put the steering into your trading
Article too lengthy to post here.
Read the entire process here
http://www.tradingacademy.com/lessons/article/meditation-can-be-the-medication-for-your-trading/
http://www.tradingacademy.com/lessons/article/meditation-can-be-the-medication-for-your-trading/
Some Excerpts
Over the years, the usefulness of meditation has been scientifically documented in hundreds of studies with regard to physiological, mental, emotional and behavioral benefits. Some of those benefits include:
- Sharpening attention
- Lowering heart rate
- Lowering stress levels
- Easing anxiety
- Increasing patience
- Inducing calm
- Reducing susceptibility to fear and greed.
With consistency, this powerful practice supports the entire system of mind/body and spirit.
So often while trading you are thinking about what happened in the last trade, the last hour, yesterday or what is coming up in the next few moments or tomorrow. In other words, you’re everywhere but where you should be, that is, focused on what is taking place right now – the “what-matters-most” of the trade.
Distractions can come in the form of negative emotions like fear, greed, and anxiety, all of which can distort perception and make illusions seem real. Consistent meditation hones an appreciation for just “being,” without timetables, goals or effort. The central idea is to be mindful and aware of your internal/external environment by surrendering to the moment and letting things be.
Your trading requires the best you can give while activating and accessing all of your internal and external resources. Trading is tough and as you meditate, with consistency, you will develop greater capacity for patience, calm, sharpened focus and being less distracted by negative emotions. Diligent and consistent meditation will help you to reduce distorted judgment by building emotional strength and a level of detachment. Trading is almost exclusively a mental art. During your trading process you are preparing, analyzing, processing or executing a trade; all of which require mental and emotional tools. You’ve got to have mental and emotional tools in your tool belt, otherwise it’s like driving without a steering wheel; you will lose your way and crash and burn without them. Put the steering into your trading
Article too lengthy to post here.
Read the entire process here
http://www.tradingacademy.com/lessons/article/meditation-can-be-the-medication-for-your-trading/
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