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Follow the trend!

  • #21
  • Apr 7, 2007 5:24am Apr 7, 2007 5:24am
Sorry, just hit the "submit reply" button, although my post havent completed yet. What i mean is you can use bago or eagle method. Those two method using nice trend following indicator, which is MA.

Long live trend follower trader...
  • #22
  • Apr 7, 2007 5:25am Apr 7, 2007 5:25am
i read in a book that ussually any market trend only 20%(and more often less), in the rest it ranges. I never tried to caght un entire trend, i find it difficult to caght it begging and exit at the top.
"Abandon all hope, you who enter here" La Divina Commedia, Dante Alighieri
  • #23
  • Apr 7, 2007 6:03am Apr 7, 2007 6:03am
Quoting semar
i read in a book that ussually any market trend only 20%(and more often less), in the rest it ranges. I never tried to caght un entire trend, i find it difficult to caght it begging and exit at the top.

If everyone is following the trend, where is the money coming from to pay out ? Wrong Stop/Loss placing from trend followers!?!?!? For every force, there is always and opposite force. Law ot nature. There are big players always trying take out the trend players by making biggers waves for example.
  • #24
  • Apr 7, 2007 6:07am Apr 7, 2007 6:07am
I bought it around 3 years ago with no leverage (1:1) and now it has increased to 2.5x of capital. Wish I could've bought it with leverage. Just with 5:1 leverage, it'd have increased over 8-fold instead. Now that's trend trading.
Tra-X
  • #25
  • Apr 7, 2007 6:08am Apr 7, 2007 6:08am
Quoting superdezign
the forex market trends more than any other financial market out there... so why arent there more trend traders out there??
I see all these "holy grail systems" that are full of indicators.. and honestly I think indicators are crap. Following the trend is the only way, in my opinion, to trade successfully in the long run.
Does anyone here follow trends?
I make a distinction between "trend" and "direction". For trend I keep myself tuned on the fundamentals behind each pair. For instance, USD is in a clear downtrend (check USD-index), while at this moment, GBP and EUR are biased up in the expectation of upcoming rate-hikes. In parallel, equity markets are getting back the losses of the big selloff during Chinese crisis, leading Yen to a downtrend, too.

In this picture, when GBPUSD, EURUSD, */JPY are falling (against the broader trend, for correction, profit taking, or whatever) I start building long inventories at every expected supports. While this direction doesn't reverse to the direction of the trend, I go for small pips scalping to manage drawdown (well IBFX allows long and short positions in the same pair)

By the time the direction is aligned with the trend, I go on adding longs and start taking profits with big pips only, until a huge resistance is reached, when I dump the rest.

Made 150 pips last time GJ fell and collected from 100-250 pips per lot when the pair resumed the trend.
  • #26
  • Apr 7, 2007 6:18am Apr 7, 2007 6:18am
Quoting highway3000
If everyone is following the trend, where is the money coming from to pay out ? Wrong Stop/Loss placing from trend followers!?!?!? For every force, there is always and opposite force. Law ot nature. There are big players always trying take out the trend players by making biggers waves for example.
In my view the market is built by economic forces with opposed interests. That's what make this market so exciting...

Exporters don't want their currecy too much valued, but they can stand it a little bit more valued NOW because fundamentals are suggesting their businesses will grow.

Importers act in the opposite direction.

Repeated fundamentals in the same direction can, then, establish a broader trend, when exporters allow a more valued currency while importers get happier.

Central Banks entry in both ways, trying to preserve a balanced exchange rate for both their exporters and importers, among other things...

And so the swing goes...
  • #27
  • Apr 7, 2007 6:40am Apr 7, 2007 6:40am
Quoting superdezign
the forex market trends more than any other financial market out there... so why arent there more trend traders out there??
I see all these "holy grail systems" that are full of indicators.. and honestly I think indicators are crap. Following the trend is the only way, in my opinion, to trade successfully in the long run.
Does anyone here follow trends?
Hi superdezign

I think that it could be said that I am a Trend Trader.

Have a quick browse through here:
http://www.forexfactory.com/search.php?searchid=1359076

It may help.

.
  • #28
  • Apr 7, 2007 6:42am Apr 7, 2007 6:42am
Quoting smjones
If you really want to know about Trend Trading, go read all of Jacko's posts...
All of it is gold

Hi smjones,

Thank you for your kind words.

.
  • #29
  • Apr 7, 2007 6:55am Apr 7, 2007 6:55am
Quoting smjones
I am absolutely a trend trader... It is much easier to go with the flow and for me, more profitable...

It is also quite boring.... which is why this thread will soon be superseded by the next "super-complicated, whizzbang, rocket science version of a 20 different indicator based" system that will be guaranteed to give "50 signals per day on each of 30 different trading pairs".

.
  • #30
  • Edited 9:06am Apr 7, 2007 8:52am | Edited 9:06am
Quoting jacko
It is also quite boring.... which is why this thread will soon be superseded by the next "super-complicated, whizzbang, rocket science version of a 20 different indicator based" system that will be guaranteed to give "50 signals per day on each of 30 different trading pairs".

.
Systems like that are scary... Has anyone of you guys ever visited nuclear plant? Well let me tell you what, even in places like goddamn NUCLEAR PLANT they KEEP IT SIMPLE

So why should we make trading more complicated than the whole goddamn nuclear plant?

*boom*
  • #31
  • Apr 7, 2007 9:04am Apr 7, 2007 9:04am
Quoting smjones
Well, You need to do some studying. If you draw a trend line on a daily chart, if the trend is up, buy on the price dips that go back to the trend line.. If it is down, sell on the peaks that go back to the trend line. The rest is money management.. This is all covered in the Sticky threads that are in the beginner forum...

It is actually as simple as it can get... Trading does not have to be complicated...
As a six-month old trading noob, this post was a eureka moment for me.

Fellow noobs- save yourself a lot of time and money- read Scott's post here. Pay attention to the part in bold until it sinks in. Get yourself out a daily chart and plot a trendline just the way he says and then look.

The veteran traders on this forum are giving away gold- go get it!
Is your SL my TP?
  • #32
  • Apr 7, 2007 9:07am Apr 7, 2007 9:07am
Quoting Dexis
Systems like that are scary... Has anyone of you guys ever visited nuclear plant? Well let me tell you what, even in places like goddamn NUCLEAR PLANT they KEEP IT SIMPLE

So why should we make trading more complicated than the whole goddamn nuclear plant

*boom*
Agreed...

I allow myself:
- 1 larger term and (if necessary) 1 shorter term fibonacci
- 1 larger term and (if necessary) 1 shorter term channel.
- 1 EMA
- RSI

When I get myself with more than that in the charts, a red alarm goes off: I'm not really understanding what's going on. Trades out! .
  • #33
  • Edited 1:01pm Apr 7, 2007 12:36pm | Edited 1:01pm
Quoting jacko
It is also quite boring.... which is why this thread will soon be superseded by the next "super-complicated, whizzbang, rocket science version of a 20 different indicator based" system that will be guaranteed to give "50 signals per day on each of 30 different trading pairs".

.
LOL.

Many people refuse to believe that trend-following works and they believe money making can't be that easy. Perhaps they are trading not for profit but to feel good by inventing something that "may" work and different from everyone else.
  • #34
  • Apr 7, 2007 2:10pm Apr 7, 2007 2:10pm
Quoting luqmanz
LOL.

Many people refuse to believe that trend-following works and they believe money making can't be that easy. Perhaps they are trading not for profit but to feel good by inventing something that "may" work and different from everyone else.
I totally agree with you here, cause some time ago I was on that boat trying to invent something... well, it was not about inventions, it was more about making MORE money in LESS time, which over time results in losing everything.

A car can be priced million $ but it still runs on wheels , pop one wheel and you are not moving.
  • #35
  • Apr 7, 2007 4:16pm Apr 7, 2007 4:16pm
So what do you guys think about this chart?? Did I do anything wrong? and what do you think about the buy all the way to the left? good time to enter??
Attached Image
  • #36
  • Apr 7, 2007 4:27pm Apr 7, 2007 4:27pm
actually i drew that last trend line wrong.. its not a buy.. not a sell neither.. but that trend line i drew is broken (when drawn correctly you can see this)
  • #37
  • Apr 7, 2007 5:03pm Apr 7, 2007 5:03pm
actually i have to say.. i think i drew alot of those wrong.. here is a better example in my opinion...
Attached Image
  • #38
  • Apr 7, 2007 5:34pm Apr 7, 2007 5:34pm
Thank you for your excellent reply, Narafa!
Any more recent charts or trades you would
like to share?

Have a great day!
FXS
  • #39
  • Apr 7, 2007 5:48pm Apr 7, 2007 5:48pm
Quoting jacko
Hi superdezign

I think that it could be said that I am a Trend Trader.

Have a quick browse through here:
http://www.forexfactory.com/search.php?searchid=1359076

It may help.

.
I would love to browse this link!
I can't get it to work!

Help, Jacko!
(and THANK YOU!)

FXS

P.S. If you had a chance to briefly reply to my queries
on P1 it would be wonderful! I think we might all
benefit!
  • #40
  • Apr 7, 2007 6:32pm Apr 7, 2007 6:32pm
Quoting FXSurfer
I would love to browse this link!
I can't get it to work!

Help, Jacko!
(and THANK YOU!)

FXS

P.S. If you had a chance to briefly reply to my queries
on P1 it would be wonderful! I think we might all
benefit!
Go here. Or, just click on Jacko's username found on his post.

Click on the link that says "Find all posts by Jacko".

I think that's what he was trying to show.
Is your SL my TP?
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