I disagree with longer term trading being less stressful. I personally feel very stressed about holding positions over the weekend or interest rate news.
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DislikedI disagree with longer term trading being less stressful. I personally feel very stressed about holding positions over the weekend or interest rate news.Ignored
DislikedI would say that depends on method being used. If you go to weekly charts and zoom out, you will notice a very well defined trend on most currency pairs. This can be considered to be the overall trend of that pair (bullish/bearish). I am testing a system that places the s/l beneath this which makes it possible to go very high into the negative depending upon your entry. The reward should offset this tho...
Anybody else have a good stop-loss system for position trades??
D.Ignored
Dislikedcan someone give an example of Position Trading, or reference to that type of technique which is position trading?
Ignored
DislikedHey Guys and Gal:
One thing that I have come to understand about the forex market is that if your hooked on just one trading style, it will bite you later on because the market is forever changing constantly. As the market changes you will have to change from a postion trader to a day trader to a swing trader and so on. Lastly, any hourly change in any system will affect how any system will work and cause you to miss out on your profits. You have to test which timeframe works for each trading style. One of my trainer uses all 3 trading styles.Ignored
DislikedYour have an excellent point their. You have certain currency pairs that are good for certain trading styles.
If you try to do a postion trade with the GBP/JPY you will certainly get nailed because that pair is so active. That pair will be up 50 one minute and down 100 the next.
Knowing how each currency pair works has a huge impact on your trading style.Ignored
DislikedI don't know whether this is only my opinion, but i think that most are too fixed on terms. What is position, swing, day-trading?
As you describe it the main difference is the timeframe. In my opinion this is wrong?
For example: You have a strategy which profits from the market's volatility. As price is going up and down, there're times of movements and times of rests.
So what i'm trading? Volatility is the same in the 1h, the 4h, daily and weekly... ? Although you're locking profits in very quickly trades can go over month's, if you trade volatility on the monthly. Is it less risky because of that? NO! It's the same risk, which i would have playing volatility intradaily. Same with trend following. You said that one premise for the definition of trend following is that you hold positions at least more than a day. But what if i follow trends intradaily? Am I a trend follower or a day trader? In my opinion the first one. Risk is the same. Just the numbers are different. With this in mind "day trading" is the only term which is only refering to a timespan. But if you hold a position over one week or moneth would it then be called "week trading" or "month trading". Crap!!!
To sum up i'd say that it doesn't depend on how long you're holding a position absolutely but relatively(!) and how you hold a position, how you come to this position/exit it. I hope you got my main idea.
Open to any critics and comments!
Greetings
-mikeIgnored
Cheers
David
[Note: In trying to catch 50 pip moves, 2 pips is 2.5%. Casinos make a fortune out of a that kind of edge. Moreover, even though the target might be 50 pips, the average result (tallying up both wins and losses) might be +5 pips. In that context, a 2 pip spread is huge.
Myth: trading longer term moves is more expensive, because the stoploss must be placed further away from entry. This is incorrect: the ratio of reward/risk is exactly the same; simply trade smaller lot sizes. Longer term is actually less expensive due to lower relative costs (generates same return per $ at risk, but at a slower rate).]