I was driving home tonight and as I did so my losing GBPUSD trade was still haunting me. It’s been haunting me all day. Why? Why did I lose? I mean, yeah, we all lose sometimes, but losing is particularly something that never sits well with me.
You may or may not have heard of or know the art deemed “trading supply and demand”. If you’re interested you can find many recorded webinars here to watch. The webinars are a good start, but they are not the whole picture when it comes to using supply and demand successfully. I’ve never taken a course on supply and demand analysis. Better yet I should say I’ve never paid for a course on supply and demand analysis. I have seen the course material, exactly where it came from will remain my secret. There are plenty of threads on the subject at ForexFactory, but many of them over complicate the entire thing to the point that it’s just flat out difficult for anyone to understand.
There are certain rules to determining areas of supply and demand. With my GBPUSD trade I in fact broke one of the fundamental rules. The minute I realized this I felt the immediate need to get out of my car and lay on some train tracks as punishment for forgetting this golden rule. What caused me to completely erase this rule from memory? More or less the answer to that question is GREED. I saw a potential opportunity to hop on a long term, seemingly very profitable trade, in the beginning stages of it. Needless to say those beginning stages never materialized and I was punished with a 103 pip loss today.
Supply and demand trading takes patience, and it is about as accurate as an Army sniper if you follow the rules. All of them.
If you enjoy the content at iBankCoin, please follow us on Twitter
I like the sniper analogy/theme. It really is a great metaphor for conveying the qualities of an expert trader.
Good post.
how much is 103 pips ???
Pip value all depends on lot size and account type. On a standard account, one standard lot is $100,000, and the pip value would be $10 per pip.
But can be reduced much more (whilst the spot commissions may, percentage wise, increase).
For learning, I suggest + 1,000-5,000 leverage. This means each tick will equal, roughly – depends on currency pair, a penny to dime a tick. Thus, if you had a 100 pip day, you’d gain $10-50. Not really “a living,” but a decent method to make interest and learning “worth it.”