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EurAnalysis Kindergarten 24 replies

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  • #38,341
  • Jun 20, 2012 8:09am Jun 20, 2012 8:09am
Quoting Tom_D_Trader
SL hunting is a common thing in markets. Though in FX it is a bit harder to hunt stops if compared to equities or commodities. Thats why I am here in fact.

Anyway, if you dont place SL, I can promise you they are going to shoot Obama right after you go to the toilet.

Edit: 2000 post! Ok, lets make it more complex:
Since price at the market is set according to supply and demand, if you demand USD you are pushing its price up. For us, retailers, it is more of a theory, since our mini accounts cant move the price. But virtually, if you are selling...
Ok Thanks a lot. I now Understand the system. Is one can assume that, then the SL's can't be triggered by virtue of the broker/platform provider at his will?
  • #38,342
  • Jun 20, 2012 8:19am Jun 20, 2012 8:19am
Quoting ganesh2k5
Ok Thanks a lot. I now Understand the system. Is one can assume that, then the SL's can't be triggered by virtue of the broker/platform provider at his will?
All depends on your broker. Some are cockroaches running bucket shops and they are the counter party to every trade you take. Always use a reputable broker.

Check to see if yours is listed at forexpeacearmy.org as a scammer and also check the reviews from other traders.
Those who say it cannot be done should not interrupt those who are doing it
  • #38,343
  • Jun 20, 2012 8:22am Jun 20, 2012 8:22am
Quoting Tom_D_Trader
PT, while you will be doing your charity, please send me some cash. I will PM you my account number ok?

Ok seriously. kik, you can not ask for such thing....

T
well maybe my English is very bad.

not referring to real values, but distances between contrary orders and stops ...

I apologise if I was incorrect
good trades

and thanks PT
  • #38,344
  • Jun 20, 2012 8:31am Jun 20, 2012 8:31am
Quoting ganesh2k5
Ok Thanks a lot. I now Understand the system. Is one can assume that, then the SL's can't be triggered by virtue of the broker/platform provider at his will?
Thats a bit different question, but it is close subject. Brokers can not officially move price, since they dont have enough cash to do so.

Nevertheless, it is "common" practice among dealing desk brokers, that they manipulate price a bit (lets say 1 - 2 pips max). Dealing desk means, that price you see on your screen doesnt come directly from interbank market, but goes first to dealing desk (which is department of a broker) and then broker sends you his price. Thats the time, when he can change the price and send you different quotation (1 pip more or less) and hit your SL. This is especially bad if you are scalping and have stops around 10 pips. So if you plan to scalp, pick some serious broker. There are loads of them, so you can choose someone you trust.

Next option how broker can rob you while scalping is slippage:
If broker wants to participate in the interbank market, he can not buy something like 0,01 lot, like you can. He can buy 1 lot. So if you place miniorder it goes to dealing desk of a broker, where he combines 100 people like you and after this sends his order to interbank market for 1 lot. This whole action will take only miliseconds. But since we live in IT age, those few miliseconds give broker chance to take an advantage of you and send you different price.

T
"I know one thing, that I know nothing." Sokrates
  • #38,345
  • Jun 20, 2012 8:34am Jun 20, 2012 8:34am
Quoting Tom_D_Trader
Thats a bit different question, but it is close subject. Brokers can not officially move price, since they dont have enough cash to do so.

Nevertheless, it is "common" practice among dealing desk brokers, that they manipulate price a bit (lets say 1 - 2 pips max). Dealing desk means, that price you see on your screen doesnt come directly from interbank market, but goes first to dealing desk (which is department of a broker) and then broker sends you his price. Thats the time, when he can change the price and send you different...
Don't forget that all a broker needs to do to stop you out is temporarily widen the spread and blame it on market volatility.
Those who say it cannot be done should not interrupt those who are doing it
  • #38,346
  • Jun 20, 2012 8:35am Jun 20, 2012 8:35am
Swissy, This is what I was talking about in my earlier response to you regarding E/J

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Those who say it cannot be done should not interrupt those who are doing it
  • #38,347
  • Jun 20, 2012 8:37am Jun 20, 2012 8:37am
Quoting PipTrapper
Don't forget that all a broker needs to do to stop you out is temporarily widen the spread and blame it on market volatility.
Hah, I forgot this trick. They can do this as well.

So lets say that if you choose really bad broker, he can manipulate price up to 10 pips +-, and as a scalper, you are fooked.
"I know one thing, that I know nothing." Sokrates
  • #38,348
  • Jun 20, 2012 8:39am Jun 20, 2012 8:39am
Here is also some backup to what I mentioned in my morning update. Hmmm Perhaps they are reading my posts

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Those who say it cannot be done should not interrupt those who are doing it
  • #38,349
  • Jun 20, 2012 8:42am Jun 20, 2012 8:42am
Btw, I aint saying DD brokers are bad. I say they can be very nasty if you are scalper and pick some thief as a broker. Since DD broker is kinda market maker, he can provide you with tighter spreads, which is very handy.
"I know one thing, that I know nothing." Sokrates
  • #38,350
  • Jun 20, 2012 8:44am Jun 20, 2012 8:44am
Quoting Tom_D_Trader
Hah, I forgot this trick. They can do this as well.

So lets say that if you choose really bad broker, he can manipulate price up to 10 pips +-, and as a scalper, you are fooked.
Yep, just like this fish

http://www.fishingloft.com/image-files/bbqstriper.jpg
Those who say it cannot be done should not interrupt those who are doing it
  • #38,351
  • Jun 20, 2012 8:46am Jun 20, 2012 8:46am
Samaras being sworn in a Greek Prime Minister right now.
Those who say it cannot be done should not interrupt those who are doing it
  • #38,352
  • Jun 20, 2012 8:49am Jun 20, 2012 8:49am
Quoting Tom_D_Trader
Yes, indeed. My friends are already trying to force me all their money. I didnt take anything, since I am totally exhausted with managing my own account. Worst thing that could happen is when not only I loose all my money, but my friends also. Selfconfidence to manage hedge fund will come with lots of experience.
I know exactly where you are coming from. However, I do not have a lot of friends One of my only real friends (who is also investor) actually tries to find more investors for me and I give him a cut of profits from any he finds.

Honestly, I think it took me managing others funds to start truly taking trading 100% seriously. If I ever go under water on their accounts now, then I'd consider myself a horrible trader, as I'm very much in the green now and my max risk per day is only 0.5% on the low risk fund, and I don't have losing days very often.

But being money manager is kind of like a shortcut to learning the importance of money management. It doesn't mean much to me to lose 3% of my own money in a day, but if I ever did that with client funds I'd never let myself see the end of it. Even my high risk fund has max loss of 1.5% per day, and thats for extremely ambitions profit goals.

However, as long as the low risk fund is in the green, the high risk will be even more in the green.

Doing it for family is a bit more intimidating but the more profit you have backing future losses, the less intimidating it becomes over time.

The only thing that is potentially intimidating is when you get a new large investor, as none of his account is in the green yet.

I start my week with very low leverage, and increase it slightly. If I'm up 2% on the week, I'll increase it by 1.5x. If up 4% on the week I will double the leverage I use for the rest of the week. This works out because I will only accept new clients at the start of the week, but it REALLY gives great profit potential toward the end of the week without risking any of the original client capital.
An opportunity lost is not a capital cost.
  • #38,353
  • Jun 20, 2012 8:49am Jun 20, 2012 8:49am
Quoting PipTrapper
Samaras being sworn in a Greek Prime Minister right now.
And there was much rejoicing...
I observe your reality but live my own.
  • #38,354
  • Jun 20, 2012 8:54am Jun 20, 2012 8:54am
Quoting Tom_D_Trader
PT, while you will be doing your charity, please send me some cash. I will PM you my account number ok?

Ok seriously. kik, you can not ask for such thing. I am really iterested in PTs answer. Point is, everyone has different strategy. You have different size of an account. You enter different number of trades. You can risk different size of your equity. You aim for different profit.

To sum it up - every trader has his own strategy and money management.

T
Here is not a signal service. It is a place to share trading information and ideas.
  • #38,355
  • Jun 20, 2012 8:55am Jun 20, 2012 8:55am
The QE3 hopium trade may already start to unwind before Benny even has a chance to open his mouth...

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Those who say it cannot be done should not interrupt those who are doing it
  • #38,356
  • Jun 20, 2012 8:58am Jun 20, 2012 8:58am
Quoting FXSwissTrader
If helicopter Ben doesn't deliver on QE, we could possibly take a hammer also on A/U and N/U. They are extremely overbought.
Yes A/U looks like another good short. Last time daily RSI was this high we ranged for a bit between 1.06 and 1.08 then rolled over slowly
An opportunity lost is not a capital cost.
  • #38,357
  • Jun 20, 2012 8:58am Jun 20, 2012 8:58am
Quoting PipTrapper
Swissy, This is what I was talking about in my earlier response to you regarding E/J

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  • #38,358
  • Jun 20, 2012 8:59am Jun 20, 2012 8:59am
Quoting BFSGcapital
But being money manager is kind of like a shortcut to learning the importance of money management. ...
Well ofc it is a shortcut. When you throw someone in the water, he will learn to swim faster. But this is not peacefull pool. This is ocean in the middle of hurricane. My point was, that I dont want my friends to loose money. If I find some idiot who will fund my fund, I will be glad and I may even make him some cash. Damn, I am going to EURUSD thread right now, this is actually good idea .
"I know one thing, that I know nothing." Sokrates
  • #38,359
  • Jun 20, 2012 9:01am Jun 20, 2012 9:01am
Quoting PipTrapper
The QE3 hopium trade may already start to unwind before Benny even has a chance to open his mouth...

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This is similar to a report I posted a few days back mentioning a think tank stating that the FED will not be doing any further QE at this FOMC meeting.
  • #38,360
  • Jun 20, 2012 9:08am Jun 20, 2012 9:08am
Quoting FXSwissTrader
Market talk of a think tank report stating no more QE from the Fed at next week's FOMC meeting.
It was market talk post on the 14th.
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