Hi Masonhlsy
We only need to join the Big Players and keep our trades short with a target or build a basket of trades with the big players on the Day Chart but keep our stops 200 pips away. There is plenty of money with 5 trades at 0.05 lot size on a good 450 pip run.
1000 pip win = 5 trades spaced out on just a 450 pip trend.
As traders, we really think we are smarter than the market and try to take REVERSAL SETUPS
When the price starts to trend, the psychology action by many traders is to jump on the trend and place their stop loss underneath the trend.
So we have order pools behind us but everyone makes a few dollars. This explains pullbacks so the big players can turn around and catch those orders.
It only takes one pullback and traders start to short the market.
Now the Big player has some orders to Buy into so they move it up some more.
Again when the orders are getting thin, they turn around and catch those stop loss orders.
Now the Herd really start to short heavily so the Big player climbs again but this time with purpose and greater speed.
We are now getting towards the running stage.
Here's where they can really make big money. They sent one big candle upwards and 50% of traders start to short.
We are talking lots of short orders.
PANIC - higher it goes. Panic more Shorts
They short again and again because this trend cannot continue surely much longer. They add trade after trade till they get caught with a margin call.
Its finished now - margin call everywhere and blood on the street.
Large Trends is the Capitulation of Traders Accounts
FEAR moves the Market when traders are losing their accounts
So how would I trade this trend - two ways
1.. On the 1 minute chart and just trade towards the nearest accumulation zone with the Big placers - 10 - 30 pips . That is Long or Short.
2.. On the Day Chart with a large stop, small lot size trade under a comfirmed swing low or high and just turn the computer off for a week and go fishing.
On a more serious note, after the first trade I would place a second Buy or Sell limit order at each accumulation zone below the current price to see if price reaches down and opens the trade. It shouldn't be closer than 0.5 ADR100 with the goal being to build a basket of trades safely.
The beauty of the Day Chart is it takes 20 minutes in the morning and your'e finished trading for the day.
The real question is as a trader, do you have the GUTS to trade the Day Chart
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