As usual I left allot of money on the table today. Unfortunately there isn't a simple fix for capturing more of the move. There no doubt is a fix for me but I've yet to resolve the problem to its simple and elegant solution. It's really not a matter of if I'll get there...only when? Keep on keepin' on. WORD.
I can see that you are using limit orders for majority of your trades. I just want to share my view on scalping. For me good entry is always based in interpreting how the market is moving when it is approaching the price point where I consider to enter. If I don't like it it doesn't matter that price got there, I will not get in. So because of that I never use limit orders because I don't know will I like "the dance" let's say in the last 1min candle prior to that point. Not counting especially on the price point like break out, but the feel of it. If anything in this business I consider my edge this is it.
ReplyDeleteAgain there is no right way and wrong way I'm just saying how I look at the things.
FX - I've wondered how you decide when to enter. The price action or "dance" that occurs as price approaches a place I'm considering to enter is important to me too. Often times you'll see a canceled limit order immediately after I've entered the order.
ReplyDeleteGenerally Oanda's platform has made it relatively quick to enter a limit order with the presets that are available. I'd say it takes me about 1.5 seconds to enter the order. Still a limit order is much slower than a market order for sure. However if I can get my limit order placed in time then when my limit order becomes a market order its done faster than if I could have clicked my mouse.
Its all personal preference but I do appreciate you explaining how you use a market order.
I wish to add that I look for momentum which means that when I enter I hope it will move 3-8 pips immediately after my entry, maybe in next 10 seconds. Because of that I developed a skill in interpreting what speed of movements and kind of behavior are promising that. It's like tape reading. I read tick movements inside let's say 30sec or 10sec, whatever.
ReplyDeleteFor example if ticks are following closely each other in same direction, or if they start to move brutally covering 2-3 pips in a jump they are telling me what to do. It's like paying close attention to runner when he is holding still and recognizing small movements in him that happen prior to the start of running.
It's hard to explain in detail those things but I hope that I provided some kind of explanation.
I didn't know that using limit orders can be done such quick. Sometimes I wish I have one in because from time I decide to click and entry market is off for 6 pips and you are already in the profit while I just entered.
I understand what you're saying. I basically do a similar, if not the same, thing. My challenge right now is letting it ride to the 8-10 pips. I've generally been cutting my trades too quickly.
ReplyDeleteOn Oanda's Platform click Tools ----> User Preferences ----> Trading Tab. There you'll find all the customizing options. Even if you don't use limit order's you'll never have to be concerned with 6 pips slippage again because you can set your default bounds to whatever you want. If the trade cannot be executed within those parameters then it won't be placed.
The reason setting a limit order only takes 1.5 seconds is because all I have to do is click on the the screen and then click limit-order to buy/sell. 2 clicks and that's it since I have my order size, bounds, initial stop loss & take profit set up automatically for every trade.