Has anyone ever attempted to trade every move on the market? | Forex Factory

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Has anyone ever attempted to trade every move on the market?

  • #1
  • First Post: Nov 24, 2015 5:51pm Nov 24, 2015 5:51pm
Let's say you look at a monthly pair. It's going upwards so obviously you long. As you know price will go downwards then rally then move upwards etc.

Has any of you decided let's TP early then decided to do a short when price rallies downwards tp then afterwards long again?

I know it's not really easy in fact more risky probably needs a very experienced trader to do this as i mean even trading the trend by itself isn't as easy as it seems much less trading to trade all market moves but i was just thinking why let a good move be wasted like this.

Anyway i think you either need to watch the market closely if you trade every single move.
  • #2
  • Nov 24, 2015 10:54pm Nov 24, 2015 10:54pm
hello fairy

doing this on the Nasdaq daily - long or short - exited my longs and am now short again.

used to trade 10 different "non-correlated" instruments, but noticed in the August China scare that almost every instrument reacts the same way.

now I`m trading the nasdaq100 only, after years of back testing.
when you concentrate on 1 instrument, you get all the statistics on your side and trading becomes easier.
am a bit unconventional in that I don't use stop loss initially, but my leverage is not more than 4:1.
position to BE after it`s up 1-2 daily ATR.

can withstand a DD of 1,000 points that way, although the highest in the last 6 years was 600something.
that is if I don't place a short as well to profit from a large correction and let my long run afterwards.

wont tell you the profit potential, but I was shocked.
we all trade differently so you have to find that out for yourself through back testing.
  • #3
  • Nov 25, 2015 4:42am Nov 25, 2015 4:42am
Quoting forex_fairy
Has anyone ever attempted to trade every move on the market?

It isn't possible to do this, because every tick is a "move", by definition.

Or - if you're discounting single tick moves - what are you defining as a "move"?
  • #4
  • Nov 25, 2015 6:04am Nov 25, 2015 6:04am
Quoting Xela
{quote} It isn't possible to do this, because every tick is a "move", by definition. Or - if you're discounting single tick moves - what are you defining as a "move"?

Of course i don't mean every single move but you know trying to get more pips. Like i mentioned earlier you see on the monthly chart price is moving upwards so you long. Price doesn't move straight up it goes down stays there then moves up a bit then down a bit etc. I was just asking does anyone attempt to trade those downwards moves to get extra pips because you could just leave your trade long and wait but you will miss out on some pips when price moves downwards. So far i never really read anyone mention trying to trade off these strategies.
  • #5
  • Nov 25, 2015 6:27am Nov 25, 2015 6:27am
Quoting forex_fairy
Of course i don't mean every single move

I sensed this.

Please excuse my mentioning that you haven't defined what you do mean, though.


Quoting forex_fairy
I was just asking does anyone attempt to trade those downwards moves to get extra pips

Sorry if I sound pedantic, but answers to this only "mean anything" if you specify some sort of size-parameter for what you're counting as a "move", don't they?
  • #6
  • Nov 25, 2015 6:47am Nov 25, 2015 6:47am
quotes from the book Reminiscences of a Stock Operator By Edwin Lefevre

Quote
There is a time for all things, but I didn't know it. And that is precisely what beats
so many men in Wall Street who are very far from being in the main sucker class. There
is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall
Street fool, who thinks he must trade all the time. No man can always have adequate
reasons for buying or selling stocks daily or sufficient knowledge to make his play an
intelligent play.

Quote
I often took profits and waited for a reaction that never came. And I saw my stock go
kiting up ten points more and I sitting there with my four-point profit safe in my
conservative pocket. They say you never grow poor taking profits. No, you don't. But
neither do you grow rich taking a four-point profit in a bull market.

Quote
Disregarding the big swing and trying to jump in and out was fatal to me. Nobody can
catch all the fluctuations. In a bull market your game is to buy and hold until you believe
that the bull market is near its end. To do this you must study general conditions and not
tips or special factors affecting individual stocks.
  • #7
  • Nov 25, 2015 8:03am Nov 25, 2015 8:03am
Quoting Coolleen
quotes from the book Reminiscences of a Stock Operator By Edwin Lefevre {quote} {quote} {quote}


Heres one more:

One day a fellow named Elmer Harwood rushed into the office, wrote out an order and gave it to the clerk. Then he rushed over to where Mr Partridge was...

...Elmer made for the old man and, without a word of apology to John Fanning, told Tukey, "Mr Partridge, I have just sold my Climax Motors. My people say the market is entitled to a reaction and that I'll be able to buy it back cheaper. So you'd better do likewise... now is the time to take your profit and get in again on the next dip."

...

"My dear boy" said old Partridge, in great distress "my dear boy, if I sold that stock now I'd lose my position; and then where would I be? ... And when you are as old as I am and you've been through as many booms and panics as I have, you'll know that to lose your position is something nobody can afford... I myself can only trade in accordance with the experience of many years."
  • #8
  • Nov 25, 2015 8:44am Nov 25, 2015 8:44am
Thanks for the quotations guys. To be honest i know it's pretty tough to even trade in one direction but i was truly curious. Forgive me but i really was if anyone did actually try trading all the movements.

To answer xela well say you look at a monthly chart. Say price is at the bottom and rising for example. Clear cut case that this would be a bullish movement so you long. Let's say you decide to find a place to TP. You notice there's a price lvl that used to be support but has now turn to resistance since price is currently below the old support lvl. So on the monthly you decide to put your TP at that area. The only problem is that the TP price is 300 pips away and if you know fx it seldom just shoots up 300 pips like that. It's going to go a bit up then down etc since it shows bullish movement on the monthly you might think hey why not take a short on the weekly when price retraces for example. This was my question.

Doesn't it seem like a waste to hold a trade on a bullish monthly and not try to trade the up and down movements on the weekly or the daily? This is my question.
  • #9
  • Last Post: Edited 11:35am Nov 25, 2015 10:42am | Edited 11:35am
Quoting forex_fairy
Doesn't it seem like a waste to hold a trade on a bullish monthly and not try to trade the up and down movements on the weekly or the daily? This is my question.

To some people, surely.

But bear in mind that as the time-frames reduce, so does the accuracy, reliability and tradability of market movements.

Your observation about monthly (as compared with weekly and daily) charts is a perfectly valid and reasonable one, of course, but it's perhaps ultimately the same argument as the endless discussions of their different perspectives between traders of H4, M15 and M1 charts, the reality being that different types and time-frames of trading suit different people with different objectives?
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