Here is an overview of (to me) why support and resistance don't work (at a successful enough rate).
If you feel like this is the case be honest with yourself. And maybe try something new. please remember the 90 90 90 rule!!!
90% of traders Lose 90% of their account In the first 90days
Have a little think as to why?
For the majority of newbie traders that enter the market.. the first thing they are taught to understand? Support and Resistance, Trendlines, Fibonacci (does work if used correctly)
So just be mindful of what the banks are doing and understand from their perspective that if they know the MAJORITY trade Support and Resistance... Don't you think they know where the majority of the people stop losses are going to be? ...
Which is why i don’t use stop losses. Pointless. The market almost always comes back after the drawback. Just need patience and good margin
BenFxLDN
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@jjelarancuent, i couldn't disagree more, i mean if u have a system in place and it works for you by all means carry on. but I wouldn't suggest ever risking more than 1% of your equity per trade.
@BenFxLDN, Okay thanks, but you're saying by this post that you should not trade like a retailer.. So for example you take an entry where retail put their stoplosses?
AlexTime
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You are right !! I do not use stop loss too and whenever we use proper risk management everything will be fine but when I let greed took over me, I blow up my account :( then all price come back to me :(
BenFxLDN
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@ChhearyChem, yeah thats exactly, if your risk management is bad then you will never be successful
s6ixfiv3
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When you said: "they know the MAJORITY trade Support and Resistance ... Don't you think they know where the majority of the people stop losses are going to be?" I had a heart attack. It really hit me
BenFxLDN
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@s6ixfiv3, Well if you think about what the first thing is that people are taught/come across in trading.. its generally support and resistance, trendlines, candlestick patterns etc. the majority of the time it fails or people end up with the same amount of capital they started with for a very long time. Simply because it doesn't work