SniperForexTrader

Hello Traders,

Max Ramirez
sniper@sniperforextrader.com

I’ve done it!, the month of January comes to its end and it is time to make a small summary.

In December, I made a score of 170 pips. I was quite pleased with this performance. The month of January was even more successful since I have re-focused my trading strategy and it allowed me to do more than 560 pips. I admit that achieving such a result was a real surprise for me and a source of stress to try to maintain the result obtained.

In my case, I have moments of stagnation in my trading and I find it hard to win. This creates a strong pressure and spychological stress, usually if not managed, the result is always negative. There is not an obvious solution at these times to pass the gap and go even further! Maybe some times I lack patience or I am not enough rigorous. Conclusion losses can come very fast.

This month has been interesting, from an economic point of view : the euro has had many weaknesses. I also benefited from the weakness of the Australian dollar.

From a technical point of view, I improved my strategy which has finally paid off. Initially, it was not evident. It’s cool to obtain this kind of result but I must remain humble because the next month is coming! I do not know if I will still be able to achieve such results. that is the challenge of the month of February!

December : + 170 pips
january: + 560 pips

Evolution of the cumulative number of pips won / lost during the month

Regards,
Loïc Richard

Why is it difficult to follow the advice that is issued on the internet?

This article aims to show that when there is a small sum to invest in the financial market, it becomes very difficult to follow the recommendations.

Why?

A first explanation lies in your money management. Generally, the proposed stop loss is so enormous that it is impossible to follow.

The following example from a leading provider of service is the perfect example.

Here are their recommendations

EUR/USD

Strategy: Short at 1.4881, Targeting 1.4422
We initially sold EURUSD at 1.4881. Prices have now taken out support in the 1.4346 – 1.4479 congestion region and overcome our initial soft target at 1.4422. We remain short, moving our stop-loss to the break-even mark (1.4881) and revising the soft target lower to 1.4143.

Returning to our money management, you have $ 1600 in your wallet. If we apply a significant risk (approximately 6% of your money management), your margin is 96 pips on 1 lot. If you follow the recommendations of the provider then your risk increases to 34%  (x6 !),  It’s suicidal, no?

So what can I do if I want to go on the market?

The first point is to rely on intermediate supports and resistances to enter the market and take into consideration your favorite technical indicators to examine the trend in the short / medium term. What is the trend in Daily, 4 hr, 1hr, 15 min. This will help you position. The long term trend has prevail over always the short term trend!

The second point are the differents informations on internet (your provider, site specialised …) and to analyze your charts to verify the informations that you found.

In this case, it is on downward trend with a target at 1.4143  (203 pips). Depending on my risk management, do I have to be less greedy and I set goals closer to my reality: 20 to 100 pips up ?

The third point is to consider the news. It can have an important impact and very quickly put a risk on your strategy. Never forget!

Finally, never forget to put your stop loss, and moving your training stop if the price change (downward course) or use the trailing stop.

Regards

Loïc Richard