Thursday, August 26, 2010

FKLI 26-08-2010

Ok, besides EUR/USD charts. Here is my 2 cents on what trade could have been taken on 26/08/2010 for FKLI. Although i don't trade FKLI, i just want to share my trading ideas and strategy.

As you can see from the chart, FKLI filled the gap at 1390 and formed support in this area.
In other words, price filled the gap, formed double bottom and blew right up.

My trading idea would be to wait for a 15min candle to close above the previous candle.
After closing i would wait for the next 15min candle to pullback and enter buy on the pullback for a better price and a smaller stoploss.

As you can see from the chart, this is a trade with good Risk : Reward ratio in hindsight.

All i want to say is, Trade Naked aka without indicators. You will definitely become a better trader. Remember Price is King. Screw those indicators, throw those MACD, RSI, STOCHS away.

Freshly squeeze quotes

“Every winner needs to master three essential components of trading; a sound individual psychology, a logical trading system and good money management. These essentials are like three legs of a stool – remove one and the stool will fall, together with the person who sits on it. Losers try to build a stool with only one leg, or two at the most.”

- Alexander Elder

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