Beginner question about ORB

[Silviu 0]

Hello! I am just getting started with using the DAS simulator and I want to practice ORB., but I am having some issues when trying to apply what I learnt from the videos. Any advice on how to improve would be greatly appreciated.

I attached below a screenshot of one of my attempt to ORB (just the first 15 mins). I think most of the indicators were there: it had a decent premarket activity, the volume in the first 1-min and 5-min candle was pretty big and it was not too extended from VWAP (I entered a bit earlier, but it looked good to me). The way I enter for now is by using the hot key in which you click on a level and DAS automatically calculates the number of shares needed for a risk of 50$ (this is what I decided to use for now). I clicked just below VWAP, so my risk was about 0.5$ per share, so I had about 100 shares. However, I realized I was so lost in deciding where to exit my position. I sold 25% at the first red triangle, which happened to be the top of that second candle, but that made me about 0.5$ per share, so in total 25 x 0.5 = 12.5$. Then my stop lost was moved at break even, and I made nothing there. So overall I made 12.5$.

I guess it's not horrible, but given that the risk was 50$, I would need to do 4 trades like this, just to cover a bad one. If I waited for longer before taking profit, I wouldn't have reached the stop loss, and I could have gone to 152.50, but I had no idea when to take profit. And I've noticed this in several other ORB trades I took (today was my 3rd day only, so not a lot of statistics). I make very little money, as I exit too soon (given that I don't have any technical indicators nearby). By little money I mean much less than the risk. Can someone advice me on how to improve (tell me what I am doing wrong)? Should I just wait until I get to at least 1R before taking any profit (assuming there are no technical indicators along the way)?

(Sorry for the long post!)

Thank you!

 

 

 

 

[Angela Kuzeva 23]

As previously said you need not only a set up but also an entry strategy, and trade management strategy including you target ( a level, MA or 3R) where to partial, do you move SL to BE or you partial at 2 or 3 R and then you move your SL or it could be all or nothing ( 3 R without moving SL.). 

The goals at early stage is not how much money you make but getting familiar with the platform,  defining a trading process , get enough screen time, learn price action, L2 and T&S, identify which set ups you trade the best and which you are not good at and scratch them, building a journal and sound review process. Money comes naturally once you master the above. We all start with the mindset of the outcome but in trading the process oriented approach is the way to success. 

You are not doing wrong, it is a learning curve, you enter in a good trade, couldn't manage, so now your improvement goal will be to define exit and partial strategy. Don't expect to be able to hold the entire move, it will take time, we all start scalping and shorter TF and once we get some experience we move to bigger TF and look for set ups there to get the bigger moves. Don't beat yourself. You did it great! I couldn't see any set up for much longer than 3 days when I started.

[Alastair 111]

22 hours ago, Silviu said:

Any advice on how to improve would be greatly appreciated.

In my opinion only.........ORBs are great if u couple it with learning to READ THE TAPE.  Especially ORBs taken before 5 minutes when volume may be sketchy ( in the first minute and limited with only 1 min candles).

Tape reading will allow u to understand the initiation of Bullish/Bearish pressure before it becomes obvious.  With a little understanding and a few weeks of practice u can add this skill to ur arsenal to tackle the markets.

See here to explore more about reading the tape (L2 and T&S):

https://forums.bearbulltraders.com/topic/1916-bookmap-for-learning-level-2-and-ts/?tab=comments#comment-14463