Hello,
Good day mentor, i just bought your 3 books to read on.
The two books on how banks and institutes trade and zero sum fun enhanced my view to charts on what has been happening. For pin bars book, it shown me the proper trading method.
Some questions which is hindering my trading progress…i am using demo now.
U mentioned the trade placing swings are still valid if they are not more than 50 pips apart.
For example, If i identified a supply or demand zone which is about 20 pips, stop wriggle of another 30 pips, and entry wriggle 50 pips, my total risk area is 100 pips.
If my risk:reward is 1:1,only some of the time i am able to get it and let the other half position running for profit. Even if i got it, my reward will be diminished or breakeven due to my another half position being stopped out. Is a risk area of more than 100 pips too wide?
The instructors from ota had been teaching us to look for minimum 1:3 risk:reward will u agree this is the fact in the market?
Another issue i had is looking for evidence of banks’ actions.
Sometimes i have a zone, the price swing and shown me that is a trade placing area but it never came back anymore. This way of analysing is correct but also reducing alot of my opportunities.
Is it because i had been too immersed with supply/demand stradegy, using wrong timefrane or i’ve been analysing charts wrongly?
Thanks in advance. I am desperate for success because i need cash.
My Answer:
Hey there,
Here’s the thing:
When it comes to zones that are roughly 20 pips wide, there’s no need to get hung up on strict rules like needing a 30-pip buffer for your stop-loss or a 50-pip range for your entry. It’s all about adapting to the situation.
Let’s say you’re trading a demand zone with a pending order.
You could set your entry right at the edge of the zone and place your stop-loss about 10 pips below the other edge.
That’s perfectly fine, especially on the 1-hour chart.
Honestly, I don’t see the need for a rigid 30-pip buffer in every scenario.
As you gain more experience trading these zones, you’ll start to notice that rally-base-drop (RBD) and drop-base-rally (DBR) zones tend to be the real winners. Sure, they might not pop up as often as those rally-base-rally (RBR) and drop-base-drop (DBD) zones, but they’ve got a much higher success rate, no matter the timeframe. So, keep an eye out for those!
Hopefully, this helps clear things up a bit.
Happy trading!
PAN