How To Manage Your Trades For More Profit

When I sent out the survey last month, along with short term trading being a focus, a number of you mentioned trade direction as a key thing to improve on and letting profits run. There were of course many more things mentioned which I will address over the year, but I'll just say a few things about these two.

In terms of direction, whether long or short term, I always recommend starting with higher time frames.

Higher time frames are king.

Levels on these time frames take longer to form so they are stronger. Given that they are stronger, price travels much further from them. Big trends start and end at higher time frames levels so it makes sense to use them to get an idea of direction. Whether you like it or not, you are all trading the higher time frames. You are either trading with them or against them and personally I would rather trade with them.

You don't have to conduct all your analysis including entries on the large time frames but they offer significant clues as to where price might be headed. Let's look at some trades from last week.

If you haven't read last weeks post then you can find it here. In short I said to watch for a potential rally on AC and price rallied from daily demand. I said to watch for a rally on GJ and price rallied. I didn't take trades on all the others pairs as I like to pick and choose the best ones. I'll run through a couple to give you a better idea.

GBPJPY - Long

Before:

This should be familiar to most of you by now but here goes. Daily demand and profit potential identified so look for longs. (This was also demand on the weekly which was very important)

2016-02-28 GJ Long D1 v01 2016-02-28 GJ Long D1 v02During:

Daily momo seems to confirm direction

2016-03-01 GJ Long D1 v02

After a slight retrace, the 15m gave us demand to trade from. If I'm not at my laptop, I use my phone.

img_5579 resize

2016-03-03 GJ Long M15

Trail the stop to hold for the trades potential

2016-03-04 GJ Long M15

After:

When you see something different, get out.

2016-03-04 GJ Long M15 result

EURJPY - Long

Before:

This one was from weekly demand.

2016-02-29 EJ Long W1

2016-03-03 EJ Long W1

During:

Then we saw the direction confirmed.

2016-03-03 EJ Long D1

An engulf on the lower time frames added confluence

2016-03-04 EJ Long M15

After a little stop out, I re-entered in time for this:

2016-03-04 EJ Long M15 result

CADJPY - Long

I think you get the picture so I won't comment on this one.

Before:

2016-03-01 CJ Long D1

2016-03-01 CJ Long M15

After:

2016-03-01 CJ Long M15 v02

2016-03-01 CJ Long D1 v02

I hope you found this useful.

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4 Comments

  1. neville on March 7, 2016 at 07:17

    hi Joe
    good stuff thanks
    just curious when identifying SDL levels for trailing stop there are some SDL ‘s everywhere it is hard to decide which ones to be used

    • Joe Wright on March 13, 2016 at 13:05

      Hi Neville,

      That can be a challenge and identifying them gets easier over time. You won’t always get it right. I had a stop out on the EJ trade I mentioned before I was able to get in for the rest of the move. Try to look for ones with a solid SD base to put your SL behind, that can help. The SDLs are always great but you have to go with what you have.

  2. Dan on January 16, 2018 at 14:56

    Hi Joe,
    Just stumbled across your analysis on you tube and it compelled me to seek out your website. Just wanted to say this information is great!
    I have just started training on a live account after learning and reading for a year whilst trading on demo accounts.

    I love the supply and demand strategy you talk about and am keen to learn more abou5 how to spot those areas on charts. Can you point me in the direction of more of this info?

    Best,
    Dan

    • Joe Wright on January 28, 2018 at 14:31

      Hi Dan, the traders checklist should help. Also, just drop me an email if you need any help.

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