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95% of traders don’t follow rules

  • #1
  • First Post: Jun 22, 2008 1:01pm Jun 22, 2008 1:01pm
Hi Traders

Know the personality of currency you are trading. Each currency pair has its own individual "personality". This can be in terms of volatility, spread, average daily range, liquidity, specific patterns etc. Use trading strategies that go hand in hand with the characteristics of the currency pair....

P.s. Your success will come faster than you think.




Drastically Boost Your Trading Profits....
  • #2
  • Jun 22, 2008 1:52pm Jun 22, 2008 1:52pm
Yes good tropic . If you know anything about please share us . Thanks in advance .

fontu
Not understand?better not follow my analyses!doubt clearer first, risks ++
  • #3
  • Jun 22, 2008 1:53pm Jun 22, 2008 1:53pm


sounds like an obama speech.... can we get some substance please?
  • #4
  • Jun 22, 2008 2:26pm Jun 22, 2008 2:26pm
Nice point Delijaworld! I think too many traders see all the action going on around them amongst all the currency pairs and they don't know where to start (better yet stop).
Just digging in the trenches like everyone else!
  • #5
  • Jun 22, 2008 4:04pm Jun 22, 2008 4:04pm
Quoting delijaworld
Hi Traders

Know the personality of currency you are trading. Each currency pair has its own individual "personality". This can be in terms of volatility, spread, average daily range, liquidity, specific patterns etc. Use trading strategies that go hand in hand with the characteristics of the currency pair....

P.s. Your success will come faster than you think.




I agree, pick your currency pair, learn it and own it, they all move differently.
  • #6
  • Jun 22, 2008 5:22pm Jun 22, 2008 5:22pm
Here's a good article on this topic.

http://www.gaincapital.com/files/Cur...der0905-BD.pdf
  • #7
  • Jun 22, 2008 6:11pm Jun 22, 2008 6:11pm
Quoting billflet
Here's a good article on this topic.

http://www.gaincapital.com/files/Cur...der0905-BD.pdf
fantastic article... thanks a lot...
My charts look like the Matrix
  • #8
  • Jun 23, 2008 10:42pm Jun 23, 2008 10:42pm
I got the same advice from my cousin. Learn the playing field of the currency"pretty soon you'll be able to tell where it's going" blah blah blah. That was before he lost 150k. In my honest opinion you will never be able to just tell where it is going. And if you get to that point you're just fooling yourself and are in for a fleacing. Those that don't presume to "know" will be the ones taking your money.

I do agree you'll get a feel for the currency but it will always be limited by the fact that the outcome is never certain. It's been a real eye opener for me to observe, with real cash on the line, markets go all crazy. Hopefully that caution instilled will not fade. For that matter why are the same indicators used in all markets?

Probably the best words of advice I've heard were "be flexable in your expectations but rigid in following your system". Most traders are exactly the opposite because it takes alot of work to achieve that level of "zen".
  • #9
  • Jun 23, 2008 11:04pm Jun 23, 2008 11:04pm
I believe that there are certain rules that are followed regardless of pair...S&R and price action seem to be universal.
  • #10
  • Jun 24, 2008 12:42am Jun 24, 2008 12:42am
Of course no one can predict a currency's movement and I don't think that's been implied on this thread (except second hand by someone's cousin).. But if you are serious about trading currencies there are a few personalities that might be beneficial to understand and most who have traded a while do understand and consider them.
For instance:

Daily average ranges of different pairs
Which pair (on an Average) moves most at what time of day
Which pairs are correlated and to what extent
Which pairs have the most or least amount of liquidity (and are more or less apt to experience violent spikes)
Which are the safe haven currencies and what does that mean
When a pair is moving, which currency is driving the pair and how do you tell

The list goes on. Of course knowing the answers to these won't guarantee success, but knowing is generally better than not knowing. If it wasn't, why learn anything? Without a basic knowledge of currency pairs you wouldn't know that you need to use a wider stop on the Geppy or cable than you do on the tamer pairs. And you wouldn't know that if you insist on trading the Asian session that the Japanese pairs will likely offer the better opportunities. And you might not know that if you're long USD/JPY and short EUR/USD at the same time that you might be over exposed to the USD, especially if the dollar is the current driving force.
  • #11
  • Jun 24, 2008 1:31am Jun 24, 2008 1:31am
Quoting billflet
Of course no one can predict a currency's movement and I don't think that's been implied on this thread (except second hand by someone's cousin).. But if you are serious about trading currencies there are a few personalities that might be beneficial to understand and most who have traded a while do understand and consider them.
For instance:

Daily average ranges of different pairs
Which pair (on an Average) moves most at what time of day
Which pairs are correlated and to what extent
Which pairs have the most or least amount of liquidity (and are more or less apt to experience violent spikes)
Which are the safe haven currencies and what does that mean
When a pair is moving, which currency is driving the pair and how do you tell

The list goes on. Of course knowing the answers to these won't guarantee success, but knowing is generally better than not knowing. If it wasn't, why learn anything? Without a basic knowledge of currency pairs you wouldn't know that you need to use a wider stop on the Geppy or cable than you do on the tamer pairs. And you wouldn't know that if you insist on trading the Asian session that the Japanese pairs will likely offer the better opportunities. And you might not know that if you're long USD/JPY and short EUR/USD at the same time that you might be over exposed to the USD, especially if the dollar is the current driving force.
Thanks Bill, great points, excellent article.

David

(Along with similar birthdays, looks like we have a similar number of posts here also )
  • #12
  • Jun 24, 2008 3:12pm Jun 24, 2008 3:12pm
Hi Traders

We can never know what price is to low and what price is to high. Don’t be afraid to join a trend.....
Drastically Boost Your Trading Profits....
  • #13
  • Jun 24, 2008 4:08pm Jun 24, 2008 4:08pm
Jandon wrote

Probably the best words of advice I've heard were "be flexable in your expectations but rigid in following your system". Most traders are exactly the opposite because it takes alot of work to achieve that level of "zen".


dis souds great to hear .
know thy edge and abide by it ! 4 in it shall thou be successful !
  • #14
  • Jul 22, 2010 2:56am Jul 22, 2010 2:56am
Quoting robertsonakp
Jandon wrote

Probably the best words of advice I've heard were "be flexable in your expectations but rigid in following your system". Most traders are exactly the opposite because it takes alot of work to achieve that level of "zen".


dis souds great to hear .

"be flexable in your expectations but rigid in following your system"

What a good line... How about Warrenbuffett investing rule?

Rule #1: Never lose money
Rule #2: Never forget Rule #1

Sound very very "Zen" also
  • #15
  • Jul 22, 2010 3:56am Jul 22, 2010 3:56am
FINE-TUNING YOUR MONEY MANAGEMENT SYSTEM
by Bennett A. McDowell

http://www.earnforex.com/forex-e-boo...management.pdf

Oh, and let's not forget that the market makers as a whole
are trading against us --

The $100bn FX HUSTLE (FT Alphaville blog)

Excerpt:

Quote
The majority of our revenue is derived from our activities as a
market-maker to our retail customers, where we act as the
counterparty to our customers’ trades.
HELL IS EMPTY, ALL THE DEVILS ARE HERE. -- Shakespeare
  • #16
  • Jul 31, 2010 12:45am Jul 31, 2010 12:45am
Quoting delijaworld
Hi Traders

[font=Lucida Console][color=royalblue]Know the personality of...
Amen to all that
you couldn't have said it better man
hello
  • #17
  • Jul 31, 2010 6:32am Jul 31, 2010 6:32am
Quoting graceheather
... How about Warrenbuffett investing rule?

Rule #1: Never lose money
Rule #2: Never forget Rule #1
I have never liked it.

He comes off as being a little more than smug with that one.

Everyone is going to pick loser, even W.B. himself.

What does that mean? After you have one losing trade that you should just pack up and quit because you have just broken all the rules?

That you should never have a stop-loss or exit any losing trades?

I realize he was refering to stocks and and is a long term buyer but I don't think a lot of his wisdom applies to FX.

His quotes are a good read if you trade stocks. I like his idea that when he buys a stock he would be more than happy to hold it even if the market shut down for 5+ years.
  • #18
  • Aug 1, 2010 8:48am Aug 1, 2010 8:48am
Each currency has its personality.

But understand that they are all linked. Understand that, you'll make bank
Need a Profitable Trading System? --> PM me.
  • #19
  • Aug 3, 2010 7:06pm Aug 3, 2010 7:06pm
Currencies don't have personalities. They go up and down based on the number of buy and sell orders transacted by traders.

A good technical trader could trade cow patties if there was enough volume and some charts. In other words, you don't have to know #%^& about the instrument you are trading.
  • #20
  • Aug 3, 2010 8:02pm Aug 3, 2010 8:02pm
Quoting randont
I got the same advice from my cousin. Learn the playing field of the currency"pretty soon you'll be able to tell where it's going" blah blah blah. That was before he lost 150k. In my honest opinion you will never be able to just tell where it is going. And if you get to that point you're just fooling yourself and are in for a fleacing. Those that don't presume to "know" will be the ones taking your money.

I do agree you'll get a feel for the currency but it will always be limited by the fact that the outcome is never certain. It's been a real...
Trading on currency market

Just like you driving your car to work ,
you just have to watch for the road
cuz, you just never know what is going happen up ahead
you don't own the road . so don't own the pair.


in my opinion , just pick pair that fits your trading criteria and watch it every move in case something wrong happen then react to what it needs

Kevin,
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