Attachments: Central Banks & Big Players

Central Banks & Big Players

#14,781
Dec 15, 2015 12:45am Dec 15, 2015 12:45am

Hops
| Joined Apr 2015 | Status: Trader | 101 Posts

Hi boys and girls, good morning!
Let's speak about the FOMC and Federal Funds Rate.
I have an idea about a trade. If the rate will be 0.5% the DOW, DAX, FTSE and their brothers need to fall, true?
So, I want to trade, but I don't want to trade in high sprd time, sprd tightening time. I'd like to trade with ITA40 - italian index- what close at 18:40 (my time) and open at 9:00.

Plan a : Befor it close, I'll open a sell position --> pray --> rate up --> indecies down --> 1200 pip GAP --> good profit.
Plan b : Before it close, I'll open a sell positon --> pray --> rate the same / indecies up --> sl out with big negative balance (I have negative balane protection).

There are many wise people, but only a few of them are rich.

#14,782
Dec 15, 2015 12:51am Dec 15, 2015 12:51am

cvds16
| Joined Sep 2009 | Status: Trader | 1,784 Posts

you might be in for some big surprises if you think it works really like that

#14,783
Dec 15, 2015 3:20am Dec 15, 2015 3:20am

SaiLyfee
Joined Nov 2013 | Status: Trading Chaos | 1,133 Posts

My bets on that Fed won't hike but indices will fall anyway.

#14,784
Dec 15, 2015 6:36am Dec 15, 2015 6:36am

johNal
| Joined Mar 2012 | Status: Trader | 205 Posts

Quoting Hops

Disliked

Hi boys and girls, good morning! Let's speak about the FOMC and Federal Funds Rate. I have an idea about a trade. If the rate will be 0.5% the DOW, DAX, FTSE and their brothers need to fall, true? So, I want to trade, but I don't want to trade in high sprd time, sprd tightening time. I'd like to trade with ITA40 - italian index- what close at 18:40 (my time) and open at 9:00. Plan a : Befor it close, I'll open a sell position --> pray --> rate up --> indecies down --> 1200 pip GAP --> good profit. Plan b : Before it close, I'll open a sell positon...

Ignored

Here is my plan, and I have used it often in times like this: I will watch the action play out and after the close of the M5 or M15 candle I will place my trade depending on the direction. I will aim for about 30 pips and if target is reached, I will call it a day. For me it is the dollars made that matter, not pips. With these 30 pips, one could make the same as some one who got 100 pips.

#14,785
Dec 15, 2015 6:39am Dec 15, 2015 6:39am

johNal
| Joined Mar 2012 | Status: Trader | 205 Posts

With this approach, you stand a far better chance of coming out with a win , than placing a buy and sell and hope the difference between the two will be in your favour

#14,786
Dec 15, 2015 6:28pm Dec 15, 2015 6:28pm

Kilian19
Joined Jan 2011 | Status: Currently in Asia | 839 Posts

Quoting Hops

Disliked

Plan b : Before it close, I'll open a sell positon --> pray --> rate the same / indecies up --> sl out with big negative balance (I have negative balane protection).

Ignored

I have thought about this before as well. Opening 2 accounts with brokers who offer a negative balance guarantee (not protection) and just trade both sides of an expected huge gap. But the problem with this "strategy" is that the terms say that this protection only works if you do not trade reckless. And leveraging as much as possible shortly before a huge news is probably considered reckless

.
I have talked about this with a friend of mine and he said that not even a court would rule in your favor.

#14,787
Dec 15, 2015 11:55pm Dec 15, 2015 11:55pm

Hops
| Joined Apr 2015 | Status: Trader | 101 Posts

Hi Kilian19,
yep I know, we spoke about this with my friends, like you, but our oppinion is that, this is risky.
The XM has negative balance guarantee.

There are many wise people, but only a few of them are rich.

#14,788
Dec 16, 2015 9:50am Dec 16, 2015 9:50am

Tony112
Joined Apr 2008 | Status: sometimes... news come unexpected | 7,711 Posts | Online Now

Guys FED decision coming. I was thining of buying USD/CAD but it's overbought like crazy. Might take another pair. My whole body is shaking in cold sweat from the adrenaline. My hands are shaking.

Trading this event with SL 30

Invest in alarm clocks

#14,789
Dec 16, 2015 10:05am Dec 16, 2015 10:05am

Jure86
| Joined Jul 2011 | Status: Trader | 280 Posts

Quoting Tony112

Disliked

Guys FED decision coming. I was thining of buying USD/CAD but it's overbought like crazy. Might take another pair. My whole body is shaking in cold sweat from the adrenaline. My hands are shaking. Trading this event with SL 30

Ignored

Forget about SL in such event. It will not be respected... GOOD LUCK!

#14,790
Dec 16, 2015 10:23am Dec 16, 2015 10:23am

Hops
| Joined Apr 2015 | Status: Trader | 101 Posts

I'll play with account sl-out and negative balance protection. All in :-)
Good luck to us!

There are many wise people, but only a few of them are rich.

#14,791
Dec 16, 2015 10:34am Dec 16, 2015 10:34am

Jure86
| Joined Jul 2011 | Status: Trader | 280 Posts

Quoting Hops

Disliked

I'll play with account sl-out and negative balance protection. All in :-) Good luck to us!

Ignored

That's the way to do it.

#14,792
Dec 16, 2015 8:35pm Dec 16, 2015 8:35pm

Tony112
Joined Apr 2008 | Status: sometimes... news come unexpected | 7,711 Posts | Online Now

He He the silence after the storm... This news event was overrated. It doesn't matter. Play all this like a robot.

waiting for CAD CORE CPI, trading with SL 14

Invest in alarm clocks

#14,793
Dec 17, 2015 7:12am Dec 17, 2015 7:12am

Kilian19
Joined Jan 2011 | Status: Currently in Asia | 839 Posts

Quoting Tony112

Disliked

He He the silence after the storm... This news event was overrated. It doesn't matter. Play all this like a robot. waiting for CAD CORE CPI, trading with SL 14

Ignored

I grabbed a few pips on FOMC but it was a bumpy ride and instead of executing the trade as planned it was more related to luck that I got. I am not happy with the result in any way. I decided to skip CAD News for the moment and take a break until next year. Have a nice holiday and a good start to the next year

#14,794
Dec 18, 2015 5:20am Dec 18, 2015 5:20am