I have watched hours and hours of videos regarding trading and I must say, your videos have been some of the most helpful and easily understood videos. You know your "trade" so well you can easily explain it. thank you sincerely
Nicholas, you are so logical in your thoughts, clear in your descriptions, and well mannered in your words! I started listening to your videos only a few days before and I have certainly added significantly into my forex knowledge. Thank you.
🔹 Get FREE access to the Duomo Trader Development Program: duomotrading.com/FreeDuomoTraining 🔹 Add us on Instagram: instagram.com/duomoinitiative/ 🔹 Our second channel for financial news and analysis: th-cam.com/users/MarketMoversFinancialNewsandAnalysis
Holding on to the winners is the most difficult thing yet for me. Up to now, I've learned to do well. But one look at my past trades on the charts and the theme is quickly clear. I need to stay in my trades longer, sometimes much longer. I have a very unique thing I do with the markets, but I didn't have an exit strategy before now. What this video has done for me is make me realize what I am missing. Thank you!
Good day, sir, I have noticed that when the candle moves very fast the break even doesn't work instead it makes far more losses, especially during the news hour.
I learned a lot about trading from you, I did then switch primarily to cryptocurrencies where it is slightly different, however a lot of your principles still held through. When I'm picking an entry point I'll have 3 profit taking levels and a stop loss decided on. My first profit is 40%, second is 30%, third is 20% and then the last 10% I let ride in case I was wrong about the high, my stop loss will is also moved up to break even when we pass the first profit point and it continues.
Awesome 👏🏼 info - soft and hard stops sound essential (in certain situations). I’ve eventually become a full course member with the Duomo and it’s absolutely fantastic!
Hey Nicholas! I'm loving the content. Please also consider making a video about the Elliot Waves' Theory or the proper way to surf the trends. Thank youuuu!
and.... the Last ten minutes or so were''''' The Bang""'.. The very Best Example.. of Bigger Profits... and Larger Waves... I know My Students First have to take Smaller and Quicker Profits and build there accounts up to feel secure in Riding The Waves Like Your Teaching... Excellent Job... Can't wait to show them... and Di-sect Your Video in Smaller Parts so they Really Get It... again... Excellent Video...
Thank you so much for valuable video, the hard and soft stoplosses are very helpful for me and it allows me to take on more opportunities and profits in the market yet smartly protecting myself from severe drawdowns!!
I wish brokerages would have an auto profit taking feature based on dollars of profit & allow you to set it as a default. That way every time you entered a position it would automatically set a limit sell at a price that would net your designated profit amount such as 50 dollars. 50 dollars here and there adds up over time with small accounts.
8:21 How do you know if that is the all-time high for that candle until it closes for that duration? But if you wait till the candle for that duration closes you pretty much know whether the trend if reversing or not.
Would moving the stoploss to break even when the trade hits half of full Trade Move Potential be ok or would that be cutting out a lot of decent potential higher profit trades?
It it moves above 50% of your target there is high likelihood of it going negative if it comes below that, and so that is the time to move to breakeven.
How do I adjust my stop loss ...do I just type in a higher dollor amout in the stop loss at it trends up.........also do I keep the take profits tab off
Great video, Nick. What about if you find yourself stuck in a consolidation after you've entered a trade? Is there a strategy to catch a breakout or do you just sit on the low volume movements until it breaks outwards either with or against your position?
I just came up with this idea, and now that i think about it its weird it doesnt exist. Im talking about a Diagonal SL/TP! It would be perfect for following the trendline and picking breakouts! What do you think?
You can use ATR, average true range, to set the distance for a trailing stop. Very handy for trend following swings where you have clear price movement where price moves up or down a sloping trend line.
I try not to move the SL to breakeven because I think this is a waste of time and confusing because in a volatile swing you can get closed out after having an open position for a while, then you still have to open it because it's still a good setup, so you pay the money to open the trade again to the broker, which is pointless. My rule is open the trade, set it to either 1:2R or 1:3R. When the trade is moving towards its TP and is 2/3 of the way there I move the SL above breakeven to 1/3 of the way. For example, if my TP is 300 pips I move the SL to 100 pips after the trade reaches 200 pips.
100% what I Teach My Students... but I say it S L O W E R... as they can have time to Adsorb It.... I often Stop and rewind Your and Other peoples videos I watch as I really Want to Fully Understand and KNOW in My Heart and Head what Your Saying... I too am like You Totally 110% Dedicated to Making Money... and Helping others ... Keep up the Good work... Your Awesome... and My Favorite Instructor... ( I have like Seven others.. also Very Good)... .
I haven't watched the entire video yet, so this may be mentioned or I may be proven wrong. However, I just wanted to mention to anyone reading that once you enter a trade... please, please, please set it and forget it. You've set your take profit target (at least 1.5:1/2:1) and you've set your stop loss (max 3% but in larger account 1% or less is best), for the statistics to work you need to take losses. If you have a 40% win rate and when you win you make 2% and when you lose you lose 1%, you're in profit. Think about that. In 100 trades you'd have made 20%, even with 60 of the trades being wrong! Do not be scared of losses. Just follow your pre-trade rules STRICTLY and ADHERE to them during a trade too.
No, you can use whichever time frame you trade on. It can be any time frame but it's also best to look at the one above and one below for confirmation of trend.
You base your stop loss on the previous low or high. If that stop loss is hit, it means that low/high is broken and therefore inevitably the current wave is lower/higher. This is not just in theory, we actually use this all the time.
@@Duomoinitiative that's not what I meant, I meant the second scenario where you said the price haven't created a HH so we move to break even, if it hasn't created a HH/LL then you can't know your entry point was actually the HL, it could come down pips below that entry point and go back up and break through and the trend would still hold and the HL would be the second time it went down and broke through the entry where you thought was the HL and went up and broke through. So I'd say you can't move SL to break even since as long as HH isn't broken you can't know if that's the structure breaking point
You have to know which time horizon you are following, which will allow you to monitor the correct waves in the market. You can tell it's a higher low, because the wave still completes after that point. Although in that case, it completes as a lower high than before. When we get that lower high, you can visually see that the previous bottom of a wave was a higher low. At this point there is weakness in the structure, as there is a mis-match between the highs and lows. However, a lower low will now put that market in a downtrend structure (lower high followed by a lower low). Of course, sometimes it will go below our entry and hit our stop loss before continuing with the trend, but we aren't aiming to be correct 100% of the time, that's not possible. We're aiming to have a systematic approach based on the context of the market that allows your wins to overshadow your losses in the long term.
@@Duomoinitiative yeah that's a good point! But at least for me in my approach, I'd rather be taken out when the trend actually reverses so even though it does look like a downtrend most of the times if it hasn't created a HH the market tends to change its mind and will go back down, move that HL lower without breaking the previous HL and go back up and continue again, but you're right that there's uncertainty in the trend and It makes sense to be out at that point but I'll rather stick with the initial SL, since when I entered I based it on the point where trend would reverse and be taken out when market is either reversing or choppy. I'd say it depends on your risk tolerance, whether you don't want to be out when there's uncertainty or or you'd rather be out when you're proven wrong. Thanks for the reply! I always love seeing/learning different perspectives!
Also for a recent example look at EUR/USD, Aug 2nd 7:55 am GMT on the 5m chart, it pulled back on 10:15, went up then came back down and moved the HL lower on 12:45 and if you ignore the candles after that it looks like the markets reversing into a downtrend but it went up, broke through the HH and continued
Too much volatility can break usual norms for traders. For instance, fundamental news can create a lot of volatility. But with that volatility is a lot of uncertainty. Because the technical analysis is hurt by uncertainty, as it bases all of its trades off of patterns, traders usually don't want to trade the market. Technical analysis traders like it when everything follows patterns moves like it always moves, and does what the indicators say. Too much volatility can mean risk. And you know how we all feel about risk
No, there is no max but it depends on the size of your position/how long you are planning to have the trade open, etc. Opening too many trades that can potentially go negative could result in your account getting margin closed by the broker. Check the margin close % on your broker's site as each one is different.
Too bad the predatory algos in the market know all this already and are designed to take your stop for liquidity accumulation. The stop system or entry logic needs a second layer of complexity to actually work.
Daniel The definition of ‘gambling’ is taking a risky chance in the ‘HOPE’ of a desired result. Now this can apply in anything you do, be it business or any risky decision you make. In FOREX, a newbie without building the right mindset and skills in this industry may use ‘gambling’ like techniques in the ‘hope’ of a trade going their way to achieve a desired result. Like everything, EDUCATION & Understanding is THE most important factor no matter what it is that you are doing in life. Now Forex or any type of investing can only be done successfully is if most importantly the research, education and understanding has been applied. A professional trader/investor before placing a trade needs to apply technical analysis on specific charts & fundamental (eg: economical news etc) analysis before deciding to place a trade. Although it’s a 50/50 chance of a trade going your way, implementing the right skills before placing a trade, a trader will be 90% confident that a position will go their way otherwise a trade will not be placed.
Daniel yes and no. It has nothing to do with trading, it is a game. They call it trading, to hide the fact, that they play a game. Guys in banks againts guys in hedge funds againts retail guys.
If you got a real edge, then you win long term. If you don't you are gambling. Edges are VERY hard to find-create, there are data miners and market geniuses behind them all the time
I think body language is pretty important during these videos with regard to communication? I've watched some TH-cam tutorials (not necessarily trading tutorials) and people just sit and talk blankly at the camera...it gives the whole video a very 'mono' feel and I start to struggle to maintain attention? I'm sure I read somewhere that body language makes up for up to 50% of communication. The rest is obviously the words themselves and a large part is tone of voice (again, not just a dreary mono sound).
I agree. Body language is good. Waiving the hands around in front of the face is distracting. Controlled body language can be used in a positive way to enhance the performance of the reporter.
I'm just being myself, I'm not a professional reporter. Some people will like the hand gestures, some people wont. Sorry that you find it distracting, it's the first time I've had someone bring it up. Thanks for the feedback
I don't mean anything bad about it. Just saying it was distracting for me on this video. I'm just thinking you would like the feedback. I like your videos and will continue enjoying your content.
Nicholas, I have watched many of your videos over the past 8 months. This is the best one you have ever done. Very good!
I have watched hours and hours of videos regarding trading and I must say, your videos have been some of the most helpful and easily understood videos. You know your "trade" so well you can easily explain it. thank you sincerely
Thanks Christian, that sort of feedback means a lot.
Nicholas, you are so logical in your thoughts, clear in your descriptions, and well mannered in your words! I started listening to your videos only a few days before and I have certainly added significantly into my forex knowledge. Thank you.
🔹 Get FREE access to the Duomo Trader Development Program: duomotrading.com/FreeDuomoTraining
🔹 Add us on Instagram: instagram.com/duomoinitiative/
🔹 Our second channel for financial news and analysis: th-cam.com/users/MarketMoversFinancialNewsandAnalysis
Holding on to the winners is the most difficult thing yet for me. Up to now, I've learned to do well. But one look at my past trades on the charts and the theme is quickly clear. I need to stay in my trades longer, sometimes much longer. I have a very unique thing I do with the markets, but I didn't have an exit strategy before now. What this video has done for me is make me realize what I am missing. Thank you!
I wish you could update us on your progress
its not hard after you set position to b/e
Great Exit Strategy Just Improved my trading 10x
This is exactly what I’ve been needing to learn based on where I’m at.
thanks for your best training course
Omg, thank you! This video is just extremely useful, honestly you have no idea
Good day, sir, I have noticed that when the candle moves very fast the break even doesn't work instead it makes far more losses, especially during the news hour.
I learned a lot about trading from you, I did then switch primarily to cryptocurrencies where it is slightly different, however a lot of your principles still held through. When I'm picking an entry point I'll have 3 profit taking levels and a stop loss decided on. My first profit is 40%, second is 30%, third is 20% and then the last 10% I let ride in case I was wrong about the high, my stop loss will is also moved up to break even when we pass the first profit point and it continues.
Awesome 👏🏼 info - soft and hard stops sound essential (in certain situations). I’ve eventually become a full course member with the Duomo and it’s absolutely fantastic!
Hey Nicholas! I'm loving the content. Please also consider making a video about the Elliot Waves' Theory or the proper way to surf the trends. Thank youuuu!
Thank you
and.... the Last ten minutes or so were''''' The Bang""'.. The very Best Example.. of Bigger Profits... and Larger Waves... I know My Students First have to take Smaller and Quicker Profits and build there accounts up to feel secure in Riding The Waves Like Your Teaching... Excellent Job... Can't wait to show them... and Di-sect Your Video in Smaller Parts so they Really Get It... again... Excellent Video...
Thank you so much for valuable video, the hard and soft stoplosses are very helpful for me and it allows me to take on more opportunities and profits in the market yet smartly protecting myself from severe drawdowns!!
luv you nicholas, wish i could be around you for those positive vibes, straight from heart.
I wish brokerages would have an auto profit taking feature based on dollars of profit & allow you to set it as a default. That way every time you entered a position it would automatically set a limit sell at a price that would net your designated profit amount such as 50 dollars. 50 dollars here and there adds up over time with small accounts.
8:21 How do you know if that is the all-time high for that candle until it closes for that duration? But if you wait till the candle for that duration closes you pretty much know whether the trend if reversing or not.
Would moving the stoploss to break even when the trade hits half of full Trade Move Potential be ok or would that be cutting out a lot of decent potential higher profit trades?
It it moves above 50% of your target there is high likelihood of it going negative if it comes below that, and so that is the time to move to breakeven.
Are you actively trading Crypto? More precisely the Alts?
Thanks
Very good detailed description
How do I adjust my stop loss ...do I just type in a higher dollor amout in the stop loss at it trends up.........also do I keep the take profits tab off
Set and forget. 2:1
May be 1:1, 1:5:1 or 2:1, always target as per ATR
Great video, Nick. What about if you find yourself stuck in a consolidation after you've entered a trade? Is there a strategy to catch a breakout or do you just sit on the low volume movements until it breaks outwards either with or against your position?
Kill the trade
I just came up with this idea, and now that i think about it its weird it doesnt exist. Im talking about a Diagonal SL/TP! It would be perfect for following the trendline and picking breakouts! What do you think?
Hmmm seems ideal that does! So tp/sl when the line you drew is hit!
Yeah! Pretty much like drawin a tp/sl trendline
Thought of this when I first started as well. It's just a matter of adding a simple function on MQL5, a lot of people do this!
You can use ATR, average true range, to set the distance for a trailing stop. Very handy for trend following swings where you have clear price movement where price moves up or down a sloping trend line.
Good lesson!
On which timeframe do you set a stoploss ?
I try not to move the SL to breakeven because I think this is a waste of time and confusing because in a volatile swing you can get closed out after having an open position for a while, then you still have to open it because it's still a good setup, so you pay the money to open the trade again to the broker, which is pointless. My rule is open the trade, set it to either 1:2R or 1:3R. When the trade is moving towards its TP and is 2/3 of the way there I move the SL above breakeven to 1/3 of the way. For example, if my TP is 300 pips I move the SL to 100 pips after the trade reaches 200 pips.
I always move my stop loss after a pullbacks to breakeven to mitigate losses as well as other things before hand always secure your money..
You have become my hero
100% what I Teach My Students... but I say it S L O W E R... as they can have time to Adsorb It.... I often Stop and rewind Your and Other peoples videos I watch as I really Want to Fully Understand and KNOW in My Heart and Head what Your Saying... I too am like You Totally 110% Dedicated to Making Money... and Helping others ... Keep up the Good work... Your Awesome... and My Favorite Instructor... ( I have like Seven others.. also Very Good)... .
Excellent video.
Wow thanks
love this nick!!
I haven't watched the entire video yet, so this may be mentioned or I may be proven wrong. However, I just wanted to mention to anyone reading that once you enter a trade... please, please, please set it and forget it. You've set your take profit target (at least 1.5:1/2:1) and you've set your stop loss (max 3% but in larger account 1% or less is best), for the statistics to work you need to take losses. If you have a 40% win rate and when you win you make 2% and when you lose you lose 1%, you're in profit. Think about that. In 100 trades you'd have made 20%, even with 60 of the trades being wrong! Do not be scared of losses. Just follow your pre-trade rules STRICTLY and ADHERE to them during a trade too.
Hi there, thank you for a detailed video. One question though - then looking at creation of new lows and highs, should we look at M1 candles ?
No, you can use whichever time frame you trade on. It can be any time frame but it's also best to look at the one above and one below for confirmation of trend.
Thank You.
pratically not possible but good points to go through.
Hey Yusuf, what makes you say it’s not practical? This is something we actually do with our trades. Maybe there is something I could explain better?
thanks for sharing
I do enjoy your videos
Is xtb a good broker?
Bitcoin.. I mainly short, that way I'm accumulating and I'm always in the game which is bullish.
So to summarize... never put order SL to breakeven :) I think this is a mistake I made for last 6 months without realizing...
Exactly..... logic 👍always enjoy your advice. Thank you
Does this apply in a reversal zone or do you take it more lightly.
The point should be turning complex to simple not opposite.
Which part did you find complex?
thank you! extremely useful!
the problem with this video is that you cant identify the HLs and LHs until the HH/LL is broken through
You base your stop loss on the previous low or high. If that stop loss is hit, it means that low/high is broken and therefore inevitably the current wave is lower/higher. This is not just in theory, we actually use this all the time.
@@Duomoinitiative that's not what I meant, I meant the second scenario where you said the price haven't created a HH so we move to break even, if it hasn't created a HH/LL then you can't know your entry point was actually the HL, it could come down pips below that entry point and go back up and break through and the trend would still hold and the HL would be the second time it went down and broke through the entry where you thought was the HL and went up and broke through. So I'd say you can't move SL to break even since as long as HH isn't broken you can't know if that's the structure breaking point
You have to know which time horizon you are following, which will allow you to monitor the correct waves in the market. You can tell it's a higher low, because the wave still completes after that point. Although in that case, it completes as a lower high than before. When we get that lower high, you can visually see that the previous bottom of a wave was a higher low. At this point there is weakness in the structure, as there is a mis-match between the highs and lows. However, a lower low will now put that market in a downtrend structure (lower high followed by a lower low). Of course, sometimes it will go below our entry and hit our stop loss before continuing with the trend, but we aren't aiming to be correct 100% of the time, that's not possible. We're aiming to have a systematic approach based on the context of the market that allows your wins to overshadow your losses in the long term.
@@Duomoinitiative yeah that's a good point! But at least for me in my approach, I'd rather be taken out when the trend actually reverses so even though it does look like a downtrend most of the times if it hasn't created a HH the market tends to change its mind and will go back down, move that HL lower without breaking the previous HL and go back up and continue again, but you're right that there's uncertainty in the trend and It makes sense to be out at that point but I'll rather stick with the initial SL, since when I entered I based it on the point where trend would reverse and be taken out when market is either reversing or choppy. I'd say it depends on your risk tolerance, whether you don't want to be out when there's uncertainty or or you'd rather be out when you're proven wrong. Thanks for the reply! I always love seeing/learning different perspectives!
Also for a recent example look at EUR/USD, Aug 2nd 7:55 am GMT on the 5m chart, it pulled back on 10:15, went up then came back down and moved the HL lower on 12:45 and if you ignore the candles after that it looks like the markets reversing into a downtrend but it went up, broke through the HH and continued
Why would you not want to be in a volatile market?
Too much volatility can break usual norms for traders. For instance, fundamental news can create a lot of volatility. But with that volatility is a lot of uncertainty. Because the technical analysis is hurt by uncertainty, as it bases all of its trades off of patterns, traders usually don't want to trade the market.
Technical analysis traders like it when everything follows patterns moves like it always moves, and does what the indicators say. Too much volatility can mean risk. And you know how we all feel about risk
Hi what timeframe was your diagram based on please?
Its really helpfull to decide stoploss
hey is there a max for how many times i can trade a day / week / month if i have like 1000 dollars in my account?
No, there is no max but it depends on the size of your position/how long you are planning to have the trade open, etc. Opening too many trades that can potentially go negative could result in your account getting margin closed by the broker. Check the margin close % on your broker's site as each one is different.
this a chart that u never see in reality!
Of course it is! Why do you think that?
Too bad the predatory algos in the market know all this already and are designed to take your stop for liquidity accumulation. The stop system or entry logic needs a second layer of complexity to actually work.
Isn't this trading thing like gambling?
Daniel The definition of ‘gambling’ is taking a risky chance in the ‘HOPE’ of a desired result. Now this can apply in anything you do, be it business or any risky decision you make. In FOREX, a newbie without building the right mindset and skills in this industry may use ‘gambling’ like techniques in the ‘hope’ of a trade going their way to achieve a desired result. Like everything, EDUCATION & Understanding is THE most important factor no matter what it is that you are doing in life. Now Forex or any type of investing can only be done successfully is if most importantly the research, education and understanding has been applied. A professional trader/investor before placing a trade needs to apply technical analysis on specific charts & fundamental (eg: economical news etc) analysis before deciding to place a trade. Although it’s a 50/50 chance of a trade going your way, implementing the right skills before placing a trade, a trader will be 90% confident that a position will go their way otherwise a trade will not be placed.
Daniel yes and no. It has nothing to do with trading, it is a game. They call it trading, to hide the fact, that they play a game. Guys in banks againts guys in hedge funds againts retail guys.
If you got a real edge, then you win long term. If you don't you are gambling. Edges are VERY hard to find-create, there are data miners and market geniuses behind them all the time
dont feed the troll
Trading is a skill. Gambling (especially casino where the house always wins) is just addiction for those who don't know statistics.
Try not waiving your hands around while talking. It's distracting.
Just constructive criticism. Take it how you like.
I think body language is pretty important during these videos with regard to communication? I've watched some TH-cam tutorials (not necessarily trading tutorials) and people just sit and talk blankly at the camera...it gives the whole video a very 'mono' feel and I start to struggle to maintain attention? I'm sure I read somewhere that body language makes up for up to 50% of communication. The rest is obviously the words themselves and a large part is tone of voice (again, not just a dreary mono sound).
I agree. Body language is good. Waiving the hands around in front of the face is distracting.
Controlled body language can be used in a positive way to enhance the performance of the reporter.
I'm just being myself, I'm not a professional reporter. Some people will like the hand gestures, some people wont. Sorry that you find it distracting, it's the first time I've had someone bring it up. Thanks for the feedback
I don't mean anything bad about it. Just saying it was distracting for me on this video.
I'm just thinking you would like the feedback.
I like your videos and will continue enjoying your content.
Thanks, feedback is always welcome.