Time in the Market, Beats Timing the Market? Does this work in FX?? | Forex Factory

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Time in the Market, Beats Timing the Market? Does this work in FX??

  • #1
  • First Post: Edited 10:54am May 2, 2006 10:45am | Edited 10:54am
Hi all, just a quick Q. Please take into account that i'm just rambling and not stating an opinion or such, just pondering the deeper meaning of it all...

I know there are some "position traders" amongst the group and then there are the more short term traders (be that intra-day or inter-day). I have read that there is a several percent difference (positive) in the accounts of individuals that simply left there monies in the various stock markets verses those who tried to pick the "best" trade days of the stock market. .

I'm wondering if there is a correlation to the FX markets? The information i read got me thinking that there is more than-meets-the-eye to taking a longer term look/approach to the market rather than trying to grab a few pips here and there on a daily basis? That possibly the one who might just hang in there in a given currency, trading with the "Big" trend would win out in the end, opposed to the individual that was trying to pick tops/bottoms, trading this way and that??

: - )
  • #2
  • May 2, 2006 12:14pm May 2, 2006 12:14pm
Ummmm.... Nice ramble?
heehee.. no opinion or knowledgeable thoughts right now... Maybe after a few years I'll come back to this...

Good luck with the Q!
  • #3
  • May 2, 2006 12:44pm May 2, 2006 12:44pm
Though the "buy-and-hold" (or "buy-and-hope") crowd often says this and supports it with limited studies, there are long-term stock market strategies that have easily outperformed the stock indices for decades. I have a pretty extensive stock market database going back to 1942 and have seen numerous strategies that have (and continue to) outperform buy-and-hope "index fund" investing for over 6 decades.

That doesn't answer your FX question, but I felt like I had to chime in on the stock market part...


Quoting accrete
I have read that there is a several percent difference (positive) in the accounts of individuals that simply left there monies in the various stock markets verses those who tried to pick the "best" trade days of the stock market. .


: - )
  • #4
  • May 2, 2006 7:15pm May 2, 2006 7:15pm
Quoting accrete
I know there are some "position traders" amongst the group and then there are the more short term traders (be that intra-day or inter-day). I have read that there is a several percent difference (positive) in the accounts of individuals that simply left there monies in the various stock markets verses those who tried to pick the "best" trade days of the stock market. .

I'm wondering if there is a correlation to the FX markets? The information i read got me thinking that there is more than-meets-the-eye to taking a longer term look/approach to the market rather than trying to grab a few pips here and there on a daily basis? That possibly the one who might just hang in there in a given currency, trading with the "Big" trend would win out in the end, opposed to the individual that was trying to pick tops/bottoms, trading this way and that??

: - )
Seriously, a reference that may help you with further information on trading this way is Bird Watching in Lion Country.

Lou
  • #5
  • May 2, 2006 10:51pm May 2, 2006 10:51pm
Quoting Lou
Seriously, a reference that may help you with further information on trading this way is Bird Watching in Lion Country.

Lou
LOL : Lou !!!! I just finished reading BWILC minutes before my original post and IT was what prompted my question! BWILC was a very thought provoking read, and i'm reading it through again tomorrow.
Thom
  • #6
  • May 2, 2006 11:11pm May 2, 2006 11:11pm
In my opinion, a professional & winning trader will make about the same returns as a professional & winning investor...Traders also engage in long term trades, but they time their entry, position themselves for riding the big move and once they see a sign that the move is faltering, they are out...For example I am sure many pros are long the gold market since a year ago and they are still in and most of them are still in...

If you want more insight on this subject, read the market wizards & the new market wizards, you will find a bunch of investors & traders who use different strategies and yet you will find almost all of them getting near results to each other over the long term...


Thanks,

Nader
  • #7
  • Edited 11:47pm May 2, 2006 11:42pm | Edited 11:47pm
narafa,

I am glad to hear your comments. As time goes on I have come to realize that trading for the long term fits my circumstances better.

accrete,

my copy is dissected underlined and dog eared. We should discuss this more by private email. I know a couple of traders who use the methods described. And am working on some other things that may help with trading this way.

Lou
  • #8
  • Last Post: May 4, 2006 11:25pm May 4, 2006 11:25pm
narafa and accrete,

The method discussed is not what I tend to believe is position trading

The swings are traded by scaling in and out of the market adding more positions on the upswing. taking profits at price patterns or median lines. and either holding or dropping positions on the down swing. Larger time frames.

That is the thumbnail of the plan. Not just buying low and then selling months later. hopefully higher.

Lou
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