GBP/USD Live Trade 08.19.10

Posted by Fetor 10 Comments

This a pretty long trade vid -about 25 minutes, but I think it will be worth your time. I go through a losing trade and then transition into a wining trade as the market shifts. If you have comments or questions leave them below in the space provided.

http://forex4noobs.com Gary Lippmann

Hello Fetor –

Appreciate the videos, but I have a very simple qustion. Why on earth would you be in a trade during a news release??

Gary

http://www.forex4noobs.com/blogfet/ Fetor

Gary,

Well, I knew it was coming up and I did watch the action during the release and thought buyers were going to follow through -they didn’t. It was the Philly Fed Reserve report so though it is upper tier I wasn’t really all that concerned, but that was me personally, and I don’t necessarily think that would be good for new traders to do on a regular basis. As a general rule I don’t trade the bigger news releases. Anyway, it was just my judgment call on this and it went against me.

Frederic

Hi Fetor

My trading day was much longer than your very instructive video !

Thank You .
Daniel

Hi Fetor,

Great video. And not because it had a happy ending, but because watching your thought process, calmness under pressure when the trade wasn’t going your way, and overall psychology when trading live, is very helpful for our learning.

I think I would have bailed out early, at the wrong moments in both trades, ending up with red pips.

Please continue to record live trades every now and then.
Your time and efforts are VERY appreciated by many of us.

Daniel from Costa Rica
Boone

Nice video Fetor.
My EUR/USD trade got stopped out during that same news release. This was a nice example of using multiple time frames, reading price action, and having the perseverance to move the other way with price, when you were initially “long and wrong”.
Thank you for sharing it.
Boone
Sonic

Hi Fetor.
Great video as always. I just have this small question : When you trade with the trendline, will you wait for confirmation ( a bounce at preprojected trendline) or will you jump in right away using pending orders ?. Thanks for all your vids.

http://www.forex4noobs.com/blogfet/ Fetor

Sonic,
It depends. Sometimes I will if the trend is strong and established on higher frames. In those cases I’m much more willing to place a pending order. Lower frames I really don’t use an type of pending order just because the M5/M15 frames have some much noise.

Sonic

Thanks. Is there any way to pinpoint the entry price using trendline and pending orders ?

http://www.forex4noobs.com/blogfet/ Fetor

Sonic,

Pinpoint? That’s somewhat of an ambiguous word when it comes to trading depending on who you talk to. When you say pinpoint do you mean down to the very pip? 10 pips? 50 pips? 100 pips? To answer your question, yes, you can set pending orders at critical price points, but your “stop loss” is going to be the issue because the question is, at what point are you going to cut your trade loose if it moves against you? The more accurate you require yourself to be the greater the chance of you getting stopped out. The more you can let your trade “breathe” the greater the chance you have to win. Now, of course you have to have a breaking point, so just because you set a 200 pip stop loss to give your trade lots and lots of room doesn’t mean that it will eventually go your way; the price may move against you and never return. So there is a skill in balancing entry, risk, and proper stop loss placement. There is a balance between too much room and not enough.

Russell Sparks

Thanks Fetor, great to see the whole process from start to finish. Also good to see the experts getting stopped out for BE like I do far too often, I thought.