Trade fearless not careless...
Syed Mohsin Ali Profit This Month:
-299
Is Forex trading worth it? If so, why?
- #382
- Jan 4, 2016 11:01am Jan 4, 2016 11:01am
- | Membership Revoked | Joined Aug 2015 | 1,243 Posts
{quote}not yet. right now only selling eurusd. want to see at least one 4h green candle if ever try to buy one of those currencies. btw, you are in a wrong thread for such conversations.
I thought you were smart enough to understand post....
- #383
- Jan 4, 2016 11:24am Jan 4, 2016 11:24am
- Joined Jan 2015 | Status: PVSRA with Traderathome | 1,689 Posts
{quote}
for first sentance and for second sentance.
PVSRA
- #384
- Jan 4, 2016 1:28pm Jan 4, 2016 1:28pm
- Joined Oct 2011 | Status: quo | 4,193 Posts
{quote} not really, in last 200 posts subject is money management...wrong footed traders hope and pray and deal with money management to handle their positions... I thought you were smart enough to understand post....
As Above, So Below
- #388
- Edited Jan 11, 2016 9:11am Jan 10, 2016 1:50pm | Edited Jan 11, 2016 9:11am
- Joined Sep 2006 | Status: ... | 8,112 Posts
It's funny how everybody sees value differently. Entries are vitally important for me, and I'll try to explain why. My trading plan has four categories under entry:
1, General market conditions -- whether to trade, or stay out of the market.
2. Which pair(s) to trade.
3. Which direction to trade them.
4. Timing -- when to enter.
Because I trade trends, knowing how to stay out of sideways markets is important.
Choice of pair is equally crucial, as I trade in the direction of daily chart trends, and I pair the strongest currencies against the weakest, both fundamentally and price-wise. For example, I've been short in GBPJPY lately (GBP has been overpriced, given that rate hikes will now be delayed; JPY strengthened by recent safe haven flows), and long USDCAD (USD is hyped up over projected rate hikes, and many analysts see it as the only strong currency in 2016; CAD weakened by falling oil prices). Compare their daily charts with something like the popularly traded EURUSD -- see the screenshots below -- and then decide for yourself whether pair selection is important or not.
Direction is likewise important. The trader who has recently been short GBPJPY is going to have a MUCH better chance of exiting profitably than a trader who is long! Hence a good entry can improve the situation from which one must ultimately exit.
For me, timing is the least important part of entries, but it assumes greater importance when the trends aren't as strong (which is more often the case). I don't want to buy at what turns out to be a long time high, or sell at a long time low. Hence I tend to wait for a decent pullback, and then sell on a downside breakout of that candle. Waiting for the breakout keeps me out of a lot of 'bad' signals, while waiting for the pullback often allows me to set a tighter technical stop and thus exit with a smaller loss. And smaller losses improve my bottom line.
Entering in the direction of the trend, especially one that is backed by macroeconomic 'drift', helps to add conviction to my trading: I feel more comfortable holding onto a trade if I'm persuaded that it's backed by fundamental factors. And I know that if I mistime the entry, a strong enough trend will often bail me out. Choosing good entries can help significantly with the mindset process.
Because all of the above forms a significant part of my overall edge, entries are important to me. And because I try my hardest to base my trading decisions on market probabilities -- i.e. remain focused on the process, rather than the P/L of open trades -- exits seem less relevant.
It follows that I tend to query the effectiveness of rescue techniques. If a trader's judgement is not good enough to produce enough winners, why would it be any better when trying to save losers? Why would his judgement be better when is carrying an open loss, and he is probably more emotional? But, well, each to their own.
I expect to be flamed for operating differently to the purists, but that is how it works for me, and to some extent also for those from whom I've learned my craft.
_____________
@Atokys: I see exits as part of the trading method, and MM as the science of position sizing. If ill-use of terminology makes me a cretin, then I'm happy to be one, just so long as I'm profitable.
1, General market conditions -- whether to trade, or stay out of the market.
2. Which pair(s) to trade.
3. Which direction to trade them.
4. Timing -- when to enter.
Because I trade trends, knowing how to stay out of sideways markets is important.
Choice of pair is equally crucial, as I trade in the direction of daily chart trends, and I pair the strongest currencies against the weakest, both fundamentally and price-wise. For example, I've been short in GBPJPY lately (GBP has been overpriced, given that rate hikes will now be delayed; JPY strengthened by recent safe haven flows), and long USDCAD (USD is hyped up over projected rate hikes, and many analysts see it as the only strong currency in 2016; CAD weakened by falling oil prices). Compare their daily charts with something like the popularly traded EURUSD -- see the screenshots below -- and then decide for yourself whether pair selection is important or not.
Direction is likewise important. The trader who has recently been short GBPJPY is going to have a MUCH better chance of exiting profitably than a trader who is long! Hence a good entry can improve the situation from which one must ultimately exit.
For me, timing is the least important part of entries, but it assumes greater importance when the trends aren't as strong (which is more often the case). I don't want to buy at what turns out to be a long time high, or sell at a long time low. Hence I tend to wait for a decent pullback, and then sell on a downside breakout of that candle. Waiting for the breakout keeps me out of a lot of 'bad' signals, while waiting for the pullback often allows me to set a tighter technical stop and thus exit with a smaller loss. And smaller losses improve my bottom line.
Entering in the direction of the trend, especially one that is backed by macroeconomic 'drift', helps to add conviction to my trading: I feel more comfortable holding onto a trade if I'm persuaded that it's backed by fundamental factors. And I know that if I mistime the entry, a strong enough trend will often bail me out. Choosing good entries can help significantly with the mindset process.
Because all of the above forms a significant part of my overall edge, entries are important to me. And because I try my hardest to base my trading decisions on market probabilities -- i.e. remain focused on the process, rather than the P/L of open trades -- exits seem less relevant.
It follows that I tend to query the effectiveness of rescue techniques. If a trader's judgement is not good enough to produce enough winners, why would it be any better when trying to save losers? Why would his judgement be better when is carrying an open loss, and he is probably more emotional? But, well, each to their own.
I expect to be flamed for operating differently to the purists, but that is how it works for me, and to some extent also for those from whom I've learned my craft.
_____________
@Atokys: I see exits as part of the trading method, and MM as the science of position sizing. If ill-use of terminology makes me a cretin, then I'm happy to be one, just so long as I'm profitable.
- #390
- Jan 10, 2016 4:09pm Jan 10, 2016 4:09pm
- Joined Oct 2009 | Status: . | 4,038 Posts
Congratulations ScalaFX for coming out of the closet!
- #392
- Jan 10, 2016 4:26pm Jan 10, 2016 4:26pm
- Joined Oct 2009 | Status: . | 4,038 Posts
{quote} Of course the market is predicated on the existence of failing speculators. Without the failing speculators to provide liquidity and make the price action on your chart look uniform, none of these financial markets would exist. I praise the existence of the failed speculator as the hero of the modern financial market because without his/her presence the market would not exist and I would not be able to trade against him/her.
That swirling sound you hear is just any credibility you may have had flushing down the toilet.
Congratulations ScalaFX for coming out of the closet!
- #396
- Jan 10, 2016 11:27pm Jan 10, 2016 11:27pm
- | Commercial User | Joined Dec 2009 | 2,376 Posts
actually more than 90% of money from retail traders dont enter market because of brokers they use so there is no difference if retail exist or dont exist for big market makers and banks so i will say it mean nothing it really dont worth for that who are trading with pennies like us because we mean nothing to market but for pocket shop forex brokers we mean a lot as they take their pay from us .
i only have two brokers in my mind now that i can say they are respectable and you can give a try with them and i will not tell them because i believe it will not mean a thing for any one else .
all have a nice day please
i only have two brokers in my mind now that i can say they are respectable and you can give a try with them and i will not tell them because i believe it will not mean a thing for any one else .
all have a nice day please
focus while relaxed to see better
- #398
- Jan 10, 2016 11:50pm Jan 10, 2016 11:50pm
- Joined Oct 2009 | Status: . | 4,038 Posts
Congratulations ScalaFX for coming out of the closet!
- #400
- Jan 11, 2016 12:07am Jan 11, 2016 12:07am
- | Commercial User | Joined Dec 2009 | 2,376 Posts
{quote} None of our money ever enters the real interbank market! All our trades are settled between LP and broker. They never go further than that. Even though our brokers list some big name LP's, the trades are processed by an aggregator for them. The true interbank market is only accessed via interdealer brokers.
have a nice day sir please
focus while relaxed to see better