[USDJPY] How to trade the Coil...[Part II] It went out!

Is this the Breakout ?  :)

Related Post: [USDJPY] How to trade the Coil...

[Trading Psychology] Greed is good! But...

Greed is good! But being too greedy won't make you a successful trader. Greed is one of the main reasons for a novice trader to lose money in the markets. 

Why don't I try to catch the exact top or bottom?

Well. Because, I'm not that greedy! :P 

Real reason is that I don't know what's going to be the exact top or bottom. :) 

I know I can make more money if I try to catch the highest point or the lowest point of a price move. I tried to do that few years back & learned my lessons. I've lost more money than you can imagine due to this single trading error. It's normal when it comes to human instincts to go for a higher return in every possible time. It's not sustainable & you'll lose more money than you make if you try to catch the exact top or bottom in the long run.

What'll happen if you wait till the exact Top or Bottom? 

• Missing out huge number of good trade entries because you're waiting for the exact Top or Bottom of the previous price move
• Your profitable trades will end up as big losing trades
• You'll have a great chance to be blinded by the volatility   
• And you only realize what exactly happened after hitting your stop-loss or busting your entire account. Then you'll feel miserable, and ask these questions from you! 
  Why didn't I fell in love with such a losing trade?   
  Why didn't I see that big move coming?

Sounds familiar? Am I talking about you? ha ha!

How did I know that?

Yeah, every trader in this world goes through a similar learning curve in macro level. There can be so many changes in individual trader development processes when it comes to the micro environment. Good thing is that everything can be corrected once your trading mentor clearly recognized & addressed the route cause of your issue. But you have to truly accept your mistakes. Learning how to "let it go" is also a very important attribute of your inner development process.  

"When the student is ready, the teacher will appear."

How to get rid of that urge to catch the exact top or bottom?

There's an only way. 

You have to convince your subconscious that you don't need to catch the exact top or bottom in order to be a consistently successful trader !!! 

Stay in touch for more updates. .

Good Hunting to you!

Sachith Sumanathilake

[Support/Resistance] How to stay ahead of the pack?

This is going to be the second post on Support/Resistance Zones. Click here to read about the difference between looking at Support/Resistance levels as Lines or as Zones.

In this post I am going to talk about how I use 2 simple techniques to stay ahead of the pack when I trade the markets.

1. Using Equidistant Channels to mark slanting Support/Resistance Zones

 

2. Using Rectangle Tool to demarcate Horizontal Support/Resistance Zones 

It's a very simple technique. But it gives you a powerful visual signature on what's going on this specific trading instrument at the moment. 

This is how you can use this technique only if you love to trade in a range bound trading environment. 

If you're a Breakout Trader, you can use rectangles to demarcate sideways price action & make your entry after the breakout.

And this is how I use both of these simple techniques together to stay ahead of the pack when I'm trading the markets. 

Start using them from today itself. And don't forget to comment your experiences, views & feedback.

Good Hunting to you!

Sachith Sumanathilake

Support/Resistance Lines vs Zones

Every trader in this world loves or hates Support & Resistance levels simply because they play an important role in any kind of trading system. Fact is that most of the traders lose money at Support & Resistance levels. Why? Just because of GREED! < You always want to catch the exact top/bottom? Don't ya?

I used to trade with age old Support/Resistance lines for a long time & after going through a lot of hardships, I found a new way to demarcate support/resistance levels in charts! Not as lines but as Support Resistance Zones.

How to mark Support/Resistance Zones in your charts? 

This is how I roll! :D
I use Trend Channels in my trading platform to identify Support/Resistance Zones!

Start to see Support/Resistance levels as Zones! You'll be amazed by the results!

Stay in touch for more updates, new techniques & trading strategies!

Cheers!

Sachith Sumanathilake
Sri Lanka