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  • #3,181
  • Mar 21, 2014 4:29am Mar 21, 2014 4:29am
Looks like trading with small accounts really makes no sense ... stopped out of all NZD/USD longs just to see it rising again LOL. And they always say: "Use a tight stop blablabla" Seems more like: "Use a lot of money and a wide stop" to me. I think the next account I will open will not be under 1 k again.
Fix up, trade sharp ...
  • #3,182
  • Mar 21, 2014 4:35am Mar 21, 2014 4:35am
Quoting USD-Bear
{quote} ah ic, are positions automatically closed at roll-over time? I experienced the same thing with BUNDS, rolling over to a new contract means dropping some 200 pips in price so I guess market expectations define the difference between future and cash prices. I hate it because it disturbs the charts so much, but never experienced a roll-over while in position.
Contango and Backwardation........
  • #3,183
  • Mar 21, 2014 4:37am Mar 21, 2014 4:37am
Looks like cable is near the 61,8 Fib of the upward move ... very interesting to watch. Will it break or rise again?
Fix up, trade sharp ...
  • #3,184
  • Edited 5:08am Mar 21, 2014 4:38am | Edited 5:08am
Quoting Ken A
{quote} No, under $1K is good for a start. Trade small 0.01 - 0.05 lot (position leverage 1:1 - 1:5) not more than that.
I did, but still screwed up everything I have reached in just one day lol. Shows me that everything can happen in the market at any time.

Edit: If the hot air that crushed me on the Yellen propaganda is already over now, since the USD remains weak, I will really laugh. I did not believe in their hype and I still do not. Can really imagine that pound rises again as soon as USD resumes the downtrend. USD/JPY is already looking weak.
Fix up, trade sharp ...
  • #3,185
  • Mar 21, 2014 4:45am Mar 21, 2014 4:45am
Quoting Hickson
Looks like trading with small accounts really makes no sense ... stopped out of all NZD/USD longs just to see it rising again LOL. And they always say: "Use a tight stop blablabla" Seems more like: "Use a lot of money and a wide stop" to me. I think the next account I will open will not be under 1 k again.
it's not the size of your account, things are all relative, in this case I think it's the Yellen spike which stopped you out.
What I would learn from it is, that markets are mostly (erratically) overreacting on news, that's why I hate positions during FOMC times.
So unless positions are deliberally taken on news moves, imo stay out of the market during those time and let the dust settle before considering new positions.
Don't be a hero. Don't have an ego. Always question yourself
  • #3,186
  • Mar 21, 2014 4:54am Mar 21, 2014 4:54am
Quoting USD-Bear
{quote} it's not the size of your account, things are all relative, in this case I think it's the Yellen spike which stopped you out. What I would learn from it is, that markets are mostly (erratically) overreacting on news, that's why I hate positions during FOMC times. So unless positions are deliberally taken on news moves, imo stay out of the market during those time and let the dust settle before considering new positions.
I just think with a bigger account, I would have been not that vulnerable. I made a horrible mistake to have 2 positions in profit in E/U and NZD/USD and had not set a SL because I was near the computer. Did not expect anything new from FOCM to break the trend, maybe just a spike for seconds - actually it was not really new except some dubioius utterings taken as hawkish signs by the market. But the move was so fast I could not even close the position LOL. Then made another mistake to buy new positions on what I thought was a stop of these illogical moves. When the smoke settled and the double facepalm was off my eyes again, I realized I had ruined all my efforts, which was quite bitter. Will try to see it positive and book this under education costs.
Fix up, trade sharp ...
  • #3,187
  • Mar 21, 2014 5:16am Mar 21, 2014 5:16am
Quoting USD-Bear
{quote} sound considerations Larry, most important is finding your psychology of trading and keeping in mind there are no easy/sure bets as most of FF-members pronounce
Thank you! It took me a while to understand this.

Quoting hadox
something that helped me a lot was when I began digging a bit in my own mind.. long story short, according to Carl Jung ...
This is another thing that I really like about 'our work', it helps me to get to know myself better. In 20 years on the job I didn't learn as much about my strengths and weaknesses like in the past 3 years. Comparable learning curve to sailing, because you tend to be punished for wrong decisions as fast as on the water...

Quoting Hickson
{quote} I just think with a bigger account, I would have been not that vulnerable.
...
Will try to see it positive and book this under education costs.
I don't know, only if you have a bigger account and at the same time use low leverage and minimal positions. Leverage works both ways, and a big account can be busted as fast as a smaller one.

Nevertheless, I think it's the right attitude, don't give up, be positive, and 1 K is cheap if you learn something for good.
Fail better.
  • #3,188
  • Mar 21, 2014 5:33am Mar 21, 2014 5:33am
Quoting LarryDarrell
{quote} Thank you! It took me a while to understand this. {quote} This is another thing that I really like about 'our work', it helps me to get to know myself better. In 20 years on the job I didn't learn as much about my strengths and weaknesses like in the past 3 years. Comparable learning curve to sailing, because you tend to be punished for wrong decisions as fast as on the water... {quote} I don't know, only if you have a bigger account and at the same time use low leverage and minimal positions. Leverage works both ways, and a big account...
Well, it depends. For me 1 K is a huge amount of money since I work at an university in Germany. But that is another topic LOL Nevertheless I think a bit more capital would help me, since I do not like very tight stops. I have noticed that a lot of times the market moved in the direction I thought, but as you know, it does not move straight. I am also not so much into scalping - except there is a good chance - but more like holding a position for at least a day, since I will be away from the computer for longer time several times a week.

True, trading shows us exactly what our character is and where to work on. That is why it is fascinating to me.
Fix up, trade sharp ...
  • #3,189
  • Mar 21, 2014 5:46am Mar 21, 2014 5:46am
Quoting Hickson
{quote} I did, but still screwed up everything I have reached in just one day lol. Shows me that everything can happen in the market at any time.

Edit: If the hot air that crushed me on the Yellen propaganda is already over now, since the USD remains weak, I will really laugh. I did not believe in their hype and I still do not. Can really imagine that pound rises again as soon as USD resumes the downtrend. USD/JPY is already looking weak.
On the edit: That's the way markets react to FED or other CB's. The reason it triggered risk-on was yesterday US data showed growth and improvement. That's the market dynamics and nothing has changed.

With $1K account if you trade small say 0.01 lot, 100 pips = 1% of equity change for XXX/USD pairs. If you are risking 2% per trade = SL 200 pips.

If 0.10 lot, 100 pips = 10% Equity change <----- this is your problem.
  • #3,190
  • Mar 21, 2014 5:59am Mar 21, 2014 5:59am
Quoting Ken A
{quote} On the edit: That's the way markets react to FED or other CB's. The reason it triggered risk-on was yesterday US data showed growth and improvement. That's the market dynamics and nothing has changed. With $1K account if you trade small say 0.01 lot, 100 pips = 1% of equity change for XXX/USD pairs. If you are risking 2% per trade = SL 200 pips. If 0.10 lot, 100 pips = 10% Equity change <----- this is your problem.
Yes, that is what I was thinking about. 1 k, then 0,01 lot with 100 pip SL aiming for long term targets, something with positive swap in best case. Then maybe scalping with 0,1 lot and SL 10 pips on a good opportunity. My money management on the event was bad. Opened 0,10 lot which was too much for 500. Interesting thing is, that I did so although I knew better. And that is what is really stupid. Psychology cannot be underestimated in trading.
Fix up, trade sharp ...
  • #3,191
  • Mar 21, 2014 6:06am Mar 21, 2014 6:06am
Quoting Hickson
{quote} Yes, that is what I was thinking about. 1 k, then 0,01 lot with 100 pip SL aiming for long term targets, something with positive swap in best case. Then maybe scalping with 0,1 lot and SL 10 pips on a good opportunity. My money management on the event was bad. Opened 0,10 lot which was too much for 500. Interesting thing is, that I did so although I knew better. And that is what is really stupid. Psychology cannot be underestimated in trading.
If you are new to trading, don't make it a habit. You won't be able to trade small regardless of account size. With $100K you will trade 100 lots (10 mil units).
  • #3,192
  • Mar 21, 2014 6:13am Mar 21, 2014 6:13am
Quoting Ken A
{quote} If you are new to trading, don't make it a habit. You won't be able to trade small regardless of account size. With $100K you will trade 100 lots (10 mil units).
No, I am usually a very careful person. Guess I got too confident in that case since things were going fine LOL. Well, with 100 k 100 lots are a bit much. But 0,1 with 1 K and 10 pip SL should be acceptable? It is 1 % risk.
Fix up, trade sharp ...
  • #3,193
  • Mar 21, 2014 6:17am Mar 21, 2014 6:17am
Quoting Hickson
But 0,1 with 1 K and 10 pip SL should be acceptable? It is 1 % risk.
Acceptable if you are really that good and consistently profitable.

I use 10-20 pips not because of high % of equity change but small pips are not difficult to recover for being wrong.
  • #3,194
  • Mar 21, 2014 6:23am Mar 21, 2014 6:23am
Quoting Ken A
{quote} Acceptable if you are really that good and consistently profitable. I use 10-20 pips not because of high % of equity change but small pips are not difficult to recover for being wrong.
I would not consider myself good at trading yet. But I think with 1 % at risk I do not even have to be "right" in 50 % of cases given that winners will be bigger than losers. This is btw a typical mistake I made: Largest losing trade > biggest winner. Shows me, that MM has to be worked over. Funny thing is, I studied rules of MM before carefully. I think this market is so crazy, if you have not made the experience yourself you can read what you want. It will not help before getting hit in the ring. And probably it is the case with everything in life. Nobody just steps out and wins it all without any effort - a truth few people want to see, which is why there is so much scam around, especially in FX.
Fix up, trade sharp ...
  • #3,195
  • Mar 21, 2014 6:28am Mar 21, 2014 6:28am
Quoting Hickson
{quote} I would not consider myself good at trading yet. But I think with 1 % at risk I do not even have to be "right" in 50 % of cases given that winners will be bigger than losers. This is btw a typical mistake I made: Largest losing trade > biggest winner. Shows me, that MM has to be worked over. Funny thing is, I studied rules of MM before carefully. I think this market is so crazy, if you have not made the experience yourself you can read what you want. It will not help before getting hit in the ring. And probably it is the case with everything...
Forget it, nobody is that good regardless of seniority because of market dynamics while million if not billion of people are looking for the same thing i.e., profits. Once you have made peace with yourself and accepted this fact, you will be consistently profitable.
  • #3,196
  • Mar 21, 2014 6:34am Mar 21, 2014 6:34am
Quoting Hickson
since I do not like very tight stops.
Well, you said it. So the 0.01-idea is the right one.

Scalping: it's easy to get confused while reading these forums. You'll never know what kind of strategies the people here follow, because nobody can trade and at the same time post all the connected infos. Some people can scalp, but I guess they are ultra-quick and totally wired to the market. Wouldn't work with posting entries, exits, etc. If you trade 10 pip s/l in a scalping environment, you are in the domain of the random, you'll have to have a adequate risk/moneymanagement for that. Trading 10 pip s/l at the edges works better (for some), but you still have to be prepared to lose more, than you win.

For me that is still very, very difficult. You should think about it if under these circumstances your 1% risk is still 1%...

Regarding FF, a nice quote from 'Bird watching': "I warn my students to stay out of chat rooms and other virtual gathering places where the losers keep each other company and turn losing into a social event."

Obviously advice I don't follow, nevertheless always worth thinking about, especially when reading the EU-thread
Fail better.
  • #3,197
  • Mar 21, 2014 6:36am Mar 21, 2014 6:36am
Quoting LarryDarrell
{quote} Thank you! It took me a while to understand this. {quote} This is another thing that I really like about 'our work', it helps me to get to know myself better. In 20 years on the job I didn't learn as much about my strengths and weaknesses like in the past 3 years. Comparable learning curve to sailing, because you tend to be punished for wrong decisions as fast as on the water... {quote} I don't know, only if you have a bigger account and at the same time use low leverage and minimal positions. Leverage works both ways, and a big account...
yes, agree..

anyway besides that, dax is just under 936x after the earlier breakout from 929x (the area where I meant bears were sitting) , I wonder if we can crack this area today..
Patience is a virtue...
  • #3,198
  • Mar 21, 2014 7:01am Mar 21, 2014 7:01am
Quoting hadox
{quote} yes, agree.. anyway besides that, dax is just under 936x after the earlier breakout from 929x (the area where I meant bears were sitting) , I wonder if we can crack this area today..
looking @ S&P's it looks to me we are going to break highs

SPX500 D1:
Attached Image (click to enlarge)
Click to Enlarge Name: Picture0016.png Size: 97 KB
Don't be a hero. Don't have an ego. Always question yourself
  • #3,199
  • Mar 21, 2014 7:06am Mar 21, 2014 7:06am
Quoting USD-Bear
{quote} looking @ S&P's it looks to me we are going to break highs SPX500 D1: {image}
I have last R 1878.x for SP and then the highs, I wouldn't mind if SP broke through though.. maybe last chance for bears to defend the area, but I don't know to be honest..
Patience is a virtue...
  • #3,200
  • Mar 21, 2014 7:11am Mar 21, 2014 7:11am
Quoting USD-Bear
{quote} looking @ S&P's it looks to me we are going to break highs SPX500 D1: {image}
Yes, think so too. Incredible... But might just be a nice little trick for the triple witch, not gonna trade this.
Fail better.
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