This is also practical advice. My main method is biased to the left side. Going heavy on the left side can easily end in a miserable death; if you guess correctly, then one trade can make you incredibly rich. Light positions on the left side, however, don’t really need to be too worried about—there’s basically no big risk. What matters is setting the stop-loss and betting purely on the risk-reward ratio. But you do need to patiently wait for the position and make just 1–2 trades per day. Life can be pretty relaxed.
Trading is basically gambling. It all comes down to whether the entry point has an advantage—whether the position has an advantage, where the defense line is, and finally where the take-profit point is. You need all of this. When you reach the entry area, can you, through position management, get out at your cost (or take a small loss) and leave? Generally, if price reaches the entry point, then retraces, or moves up without breaking the most recent minor structure, you concede.
If you trade intraday, you have to watch the screen for 10-plus hours—it’s exhausting. If you want to take a higher-timeframe trade, enter on a lower timeframe, then keep holding until a smaller structure breaks. That might require 2–3 days of continuous staring at the chart. Your life might even feel like it’s on the line. If you want a higher win rate, it’s simply waiting for the right spot: once it reaches that place, you enter. Think about the altcoin bull market—if you can understand a rough structure, and then use a Martingale strategy, making money really isn’t for just a few people. Trades that capture structure are like this: until the structure breaks, your stop-loss cannot be changed.
Here’s a small tip for the right-side approach. Say you can’t find a good spot on the left side—but this is very close to the biggest overhead pressure mentioned above. The problem is: if the stop-loss above is too large, you don’t know where to place the stop. Then just take the highest point’s 1-hour candle. If it breaks down, place a pending short order above that level. Your stop-loss is exactly this small. If you’re afraid the order won’t get filled, place it a bit lower. But the stop-loss must be based on the highest point: once it breaks down, put the stop at the short pending order above. Set stop-loss and take-profit, and you don’t even need to watch constantly. This uses the 1-hour timeframe; many times it uses 5 minutes, 15 minutes, and sometimes even 1 minute. The smaller the timeframe, the more experience you need.
Trading is basically gambling. It all comes down to whether the entry point has an advantage—whether the position has an advantage, where the defense line is, and finally where the take-profit point is. You need all of this. When you reach the entry area, can you, through position management, get out at your cost (or take a small loss) and leave? Generally, if price reaches the entry point, then retraces, or moves up without breaking the most recent minor structure, you concede.
If you trade intraday, you have to watch the screen for 10-plus hours—it’s exhausting. If you want to take a higher-timeframe trade, enter on a lower timeframe, then keep holding until a smaller structure breaks. That might require 2–3 days of continuous staring at the chart. Your life might even feel like it’s on the line. If you want a higher win rate, it’s simply waiting for the right spot: once it reaches that place, you enter. Think about the altcoin bull market—if you can understand a rough structure, and then use a Martingale strategy, making money really isn’t for just a few people. Trades that capture structure are like this: until the structure breaks, your stop-loss cannot be changed.
Here’s a small tip for the right-side approach. Say you can’t find a good spot on the left side—but this is very close to the biggest overhead pressure mentioned above. The problem is: if the stop-loss above is too large, you don’t know where to place the stop. Then just take the highest point’s 1-hour candle. If it breaks down, place a pending short order above that level. Your stop-loss is exactly this small. If you’re afraid the order won’t get filled, place it a bit lower. But the stop-loss must be based on the highest point: once it breaks down, put the stop at the short pending order above. Set stop-loss and take-profit, and you don’t even need to watch constantly. This uses the 1-hour timeframe; many times it uses 5 minutes, 15 minutes, and sometimes even 1 minute. The smaller the timeframe, the more experience you need.