Wednesday, 27 July 2016

Thinking Like a Dealer

On the day trading course I attended last Friday my coach said, you've got to "think like a dealer".

prep 


This morning I've been watching the EG after the UK GDP figures. The GBP sold off despite good figures (probably due to the imminent BoE policy shift) and  EG rallied into supply printing an M15 pin.

plan


Thinking as a dealer and where orders (and stops) will be placed; I think I would try and trigger those stops first (dealers only get paid when orders are triggered). Perhaps if I had a tick chart and an ECN I could get long into the highs for 5-6 pips but the current the plan is to wait for a stronger short, probably on the M30 chart at the current level of supply or more towards 0.8415 where yesterday's high, the ATR high and D1 supply are...

EG M15

update

Below is the EG M30 chart. You can see it  printed a bearish pin with a long wick that took out the highs (and probable stops) of the M15 pin I mentioned above. (1st chart in this post).
I set a sell stop around the M30 pin. 1:1 Target and 80% stop. Only traded small, I've earned myself a pint and a packet of crisps (which I shall enjoy later).

EG M30


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