How I Trade

In looking for a trade, I primarily examine the four-hour chart and always look to “trade with the trend”. I will sometimes confirm the trend direction on the one-hour chart as well. I use several indicators to decide when to enter and insist on most of them aligning before I do so.

I will typically be in a given trade for between two and twelve hours. Some will run for days. Be happy if you are not getting a lot of signals – quickly moving in and out of trades only makes your broker rich. Staying in winning trades is the way to avoid paying spread and commission time and time again.

Since projecting when a trend will end is often anyone’s guess, I use a number of methods to preserve gains. Generally, these will include a chandelier stop, a parabolic SAR, or even a simple trailing stop.

I will usually move my stop to breakeven or a few pips positive relatively early in any trade. This sometimes costs me money but also often saves me from losing money. You will hear people say “choosing not to take a trade keeps you from losing money on it” and I view being stopped out with a slight gain much better than being frazzled by a drawdown.

I generally trade the USDJPY, the EURUSD, and the GBPUSD. However, my free trade signals will be EURUSD only.