Parabolic lines in geometry sound complicated and elusive in detail. But in trading it is very different, it is very much used by traders. Most traders who specialize in opening orders with the Parabolic Sar indicator are the ones who make money. The actual performance of this indicator will be exposed in this article.
Video on earning $138 profit when trading with the Parabolic Sar indicator.
Applying geometry into trading with the Parabolic Sar indicator
If you are a student, understanding the mathematical knowledge of Parabola will yield good academic results. As for financial investors, it brings a stable profit. All the knowledge which you put your effort into studying and researching will yield good results. Learning is a virtue that all successful traders must have. If you want to succeed, cultivate a spirit of self-learning.
Useful knowledge from math, if applied properly to work and daily activities, brings positive things. From there, it helps you complete the goals that you set out easily. Be the one who applies the knowledge learned from books as best as possible. Success will come to you in the near future when you are a wise person.
Be a professional hunter
Be professional hunters waiting for the right time to take action. The probability of success will then be very high when you understand your advantages and the weaknesses of your prey. The indicators themselves all carry an extremely high level of accuracy in the financial markets. But to succeed in trading, you must be patient and wait for the right time to open an order.
While other traders have been successful in trading using their technical indicators, you are still struggling to find a victory even when you have implemented the right strategy. Where’s the problem? Is this strategy not effective? It is the rush that makes you fail. Most good opportunities occur with relatively low frequency in the market. If you do not wait for them to appear, your probability of success is very small.
Methods to help you gain patience in trading
Calmly handle any situation, even the most difficult one. Stay patient until the end however long it takes. This is called patience. The following list will help you to practice patience.
Restrain your anger
Getting angry and rushing will ruin the situation and lose your opportunity. In addition, you will not be able to control many outbreaks and easily make big mistakes.
Immediately, you need to find cool cups of water to help you “cool down” and become calmer. Or simply suspend trading to walk the street or somewhere that you feel comfortable. Eating favorite foods, playing very interesting games, etc. all will definitely help you be less rushed!
Keep your soul relaxed
You feel uncomfortable and worried about a transaction and want to do something right away. But in fact, you should not place such orders when the mood is down. Because they often bring negative things that make your trade worse. Let your soul be truly relaxed, deep, and coherent. It is also time for you to have the opportunity to look back on the problem wisely.
Do not leave yourself idle
Idling in trading is a good thing that is recognized by many experienced traders. But being too idle in front of the trading screen is not recommended. It will make you see more “opportunities” to open orders. Keep yourself busy with other things like exercising, reading, meditating, etc. These will make you no longer too focused on the market. That makes you more comfortable and creative at work instead of sitting there looking at the screen.
Try to learn perseverance
Before each trade, learn to wait by keeping a diary. Because everything always has to go through a process, especially in practice. For the first few times, it will be difficult. You will not get used to it and feel very uncomfortable. But gradually it will become a good habit for yourself.
This is a virtue training for yourself that only you can accomplish the best. Be proactive! Do not let yourself stumble a few times before realizing that patience is indispensable in trading.
Train through the tests
Arrange yourself a surprise during trading to test your patience. After a training process, you will find yourself improving. Patience will come up in your daily work as well as your conduct, not just trading.
There will be other ways to gain patience, just as you see fit. Slow down to feel the value of life.
Trading log of the week in IQ Option with Parabolic Sar indicator from June 29 to July 03
Method of capital management: Classic (balanced investment)
Only trade with the following 3 assets pairs: EUR/USD, AUD/USD, USD/JPY.
Analyze incorrect predictions with Parabolic Sar and find out why it is wrong
Winning orders when opening with correct timing as per the strategy using the Parabolic Sar indicator need not be reviewed. I will focus on analyzing the losing orders to find out why and to avoid repeating it in the future.
3rd order: The price formed an uptrend when the Parabolic Sar indicator was below the candlestick chart. The price touched the support level just passed. It was a safe entry point to open a HIGHER order with an expiration time of 15 minutes. The price did not rebound as expected but pierced through the support decisively.
5th order: The downtrend was stable over time when the Parabolic Sar indicator was above the candlestick chart. Opened a LOWER order with an expiration time of 15 minutes when the Doji candlestick hit the resistance zone. The price fell as expected but unfortunately, it rebounded and made the order lose. What a pity! Right after that, the trend continued to decline as expected.
8th order: The price broke out of the resistance zone forming an uptrend. Opened a HIGHER order with an expiration time of 15 minutes when the price touched the support. But the price exhausted and reversed soon after.
In one word
Timing is something not everyone can feel. We can only practice it through the trading process. Experienced traders will know what to do when the opportunity has come. They are ready to stay out of the game when there is no advantage.
If you want to have good entry points with a high winning rate, please practice patience. Be an alert investor when the crowd is chasing unclear opportunities.