shahzad0171's Blog

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March 1st, 2016

Hello dear followers,
It’s been a long time since I was here to test my skills in dukascopy trader competition. The main reason for my absence was that in my previous instants I could not have a great time here due to lack of experience in forex trading, I was making some really very good entries but could not managed my trades very well. I was using way too much leverage to earn bigger sums to get on top of the competition, hence resulting in big losses.
This time my moto is to make sure that I…
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The advantage of setting stops

The advantage of setting stops using a technical formula, is one way to move your stops away from the clusters where the majority of market participants set their stops at. This way, you can achieve better executions on your exits and lower the probability of a stop run.
The method of taking those profits which are on the table works best when you are trading counter trend since the anticipated amount of profits is relatively limited. However, to take quick profits in a trend is usually frustrat…
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Channel Exits

Hello dear followers
In continuation of my previous articles, Another method of trailing the stop is commonly referred to as a “Channel Exit”.
A channel exit is extremely versatile and can work equally well with weekly bars or five-minute bars. Also, keep in mind that any examples referring to long trades can be equally applicable to short trades.
The implementation of a channel exit is very simple. Suppose we have decided to use a 20-day channel exit for a long trade. For each day in the trade,…
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ATR For Trade Management

Hello dear followers
I hope all of you are enjoying a good trading week. In continuation to my last blog, today I'm going to talk about an other Exit strategy used by many pro traders.
Stops and targets can also be managed with the Average True Range indicator if you prefer to set stops, trail stops, or set objectives based upon volatility. You can even use this tool to assist you in position sizing.
For details about this strategy, I advise every one of you interested in this setup should goog…
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Importance of Exit Strategy...Part3

Hello dear followers
Today I'm going to share with one of the most effective and widely used exit strategy in intraday trading.
Pivot Points and their medians have long been a favorite of the biggest institutional players, and since they are the ones who move the markets, once you know the likely places for their pending orders, you also know the most likely levels for reversals. But too many traders calibrate their Pivots incorrectly since they lack an understanding of their meaning and how the…
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Importance of Exit Strategy...Part2

Hello dear followers
I break the elements of a trading methodology down into 50% money management and 40% psychology. Guess how the remaining 10% is distributed?
I give 8% to the exit techniques and the last 2% to entries. Stops, taking profits and managing the position makes up the 8%.
Usually, when we think about a strategy or a trading system, we think in terms of entry criteria, whereas exits are the levels where we actually gain or lose money. This is one of the reasons so many people fail,…
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Importance of Exit Strategy

It is easy to get into the market, there are so many different techniques...but what about getting out? There is a vital difference between a trader who has an exact exit plan or none at all. It doesn't matter if the positions are in a profit or going down in flames, as a trader you really need two exit strategies: one to handle profits and another to handle losses. And when dealing with profits, you also need to know how to protect them.
Therefore, exit planning covers a stop-loss strategy to g…
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Flexible Tactics

The objective of the trader who wishes to profit from every market condition is to adhere to a directional price movement while taking advantage of the possible corrections or breakouts. However, profiting from a trend or price thrust is far more difficult than most participants admit. Especially for a neophyte, it's easy to fall under the spell of a fast price movement. A large Marubozu candle formation, for example, awakens the greed of potential gains and clouds any risk-control measures. But…
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Believing in your trading plan

Hello dear followers
In my opinion believing in your trading plan is more important than actually creating it. Many a time people have a very impressive plan but could not execute that properly. We don't believe in our plan and keep looking at others most of the time thinking their plan would be better than ours. It is proved time and again that even a strategy with 30 percent winning ratio can be profitable if executed properly. We waste plenty of time in search of Holy grail rather focusing on…
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Support/Resistance

There are many different methods of denoting support and resistance levels besides the horizontal levels, diagonal trendlines and trend channels, like pivot points, Fibonacci levels, moving averages, among others. Which one is best is a question of personal preference. But the fact is that the same principles apply to all of them. This common principles, if well understood, will give you an excellent ground on which to build your trading knowledge and will represent an ever accompanying edge for…
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