I'm aware that I have gotten away from specific trading talk since I've been writing this series but I feel as if my experiences down there may be well worth it people in the same boast as myself.  However while I've been writing I've been using a new system to trade. Actually I take that back, not a new system, but the same ratio trading system on a different time frame.  My mentor Jason has recently held another 2 week free trial for the introduction to his new class that he's teaching.  While sitting in on this class he used "Range Bars" to demonstrate his ratio trading system since a 4hr chart would present may examples for the trial. So I loaded up some charts and decided to follow along and use what he had previously taught me on this smaller time frame.  To my surprise I liked it a lot. The main reason I like it was because of the risk/reward ratios.  Usually I (and I still do) swing trade on a 4hr time frame. However two things bother me about using this large of a time frame. First, unless your watching a bunch of pairs, there can be instances where you go weeks without getting a single signal. This is hard for me because I often get into the habit of trying to "create" trades, by telling myself that something is what it isn't. Secondly, the stop losses have to be put so far away in order to be safe.  For example, i'm in a trade right now where the target is about 400pips away and the stop was about 200pips.  Not only does this mean that I have to be willing to take a 200pip loss, but I also have to watch hundred's of pips sit there on the table when waiting to get to my target.  This may not be difficult to a trader with a large account. but when yours in small like mine, you get in the habit (and yest i know its wrong) of seeing money on the table and wanting to grab it asap.  On the smaller time frame the targets and stops are much more manageable. the only downside is that when trading a smaller time frame you must be in front of your computer at all times or you risk the chance of missing one.
3/23/2011

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