Forex trading
basic knowledge of Forex, pipsology school is a good starting point for forex Foundation and also a little fun. However, far from the advanced stuff. after a while u can pass the factory forex traders to more serious, but I would advise you to start without some basic information.
How good do you have to be at Macroeconomics to get good results in Forex? I have a feeling to make the big cheese (George Soros status) you have to be pretty damn good at macroeconomics. Am I wrong?
Quote: (10-31-2010 04:01 PM)metalhaze Wrote:
Hey L'étranger have you read the Black Swan by Taleb?
Just started reading it, thx. But I already cannot completely agree with its main principle, being that most discoveries are absolutely unpredictable, because I believe in creativity (see http://www.youtube.com/watch?v=zDZFcDGpL4U )
Taleb is right when he says that banks souldn´t be too big to fail. Private gains, public losses. Banks have to be breaken to pieces so that if one goes bankrupt there´s no sistemic crisis. If the place I have breakfast goes bankrupt, I just go to the the other corner. Same should go with banks.
Stocks forex, etc are manipulated markets by some big players (mostly big investment banks). The only way your making money is guessing what will be those players next moove. Not reading what they say in the media, but what they´ve did in the past.
Stocks forex, etc are manipulated markets by some big players (mostly big investment banks). The only way your making money is guessing what will be those players next moove. Not reading what they say in the media, but what they´ve did in the past.
Speaking of FOREX, have any of you read George Soros' Alchemy of Finance? I've started getting into it and it's pretty interesting because it gets into some of his trading strategy.
Speaking of which, are there any other books that have helped some of you FOREX people out there?
Speaking of which, are there any other books that have helped some of you FOREX people out there?
Quote: (11-14-2010 01:40 PM)kerouac Wrote:
How good do you have to be at Macroeconomics to get good results in Forex? I have a feeling to make the big cheese (George Soros status) you have to be pretty damn good at macroeconomics. Am I wrong?
Playing the macroeconomics means trading fundamentals.
There are 2 schools of thoughts in trading, fundamental vs technical analysis (google that you'll get important explanations). I'm a technical trader so I don't take in account socio-economics events.
Soros is just a snowball effect, he made a lot of money so people take him seriously so when he when makes a move people follow him and he makes other money.
![[Image: wink.gif]](https://rooshvforum.network/images/smilies/wink.gif)
My roomie in college, who was majoring in English literature (lol), played the forex game when he barely understood how markets operate. He really got into it and would lock himself up in his room, even when i needed this fucker as my wingman. He lost big time. Even his tuition money. Dumbass.
So learning from him, if you have nothing to do with trading currencies please stay away from it. Any case, good luck.
So learning from him, if you have nothing to do with trading currencies please stay away from it. Any case, good luck.
Quote: (11-25-2010 08:47 PM)manilaguy Wrote:
My roomie in college, who was majoring in English literature (lol), played the forex game when he barely understood how markets operate. He really got into it and would lock himself up in his room, even when i needed this fucker as my wingman. He lost big time. Even his tuition money. Dumbass.
So learning from him, if you have nothing to do with trading currencies please stay away from it. Any case, good luck.
I second that. The time to develop the necessary competence to make money is usually years - and you might still end up losing money. Your time is much better spent developing a skill or business that is sustainable and actually provides value to people.
It took me 3 years of trading stocks/options to realize this. I learned a shitload about finance in the process, especially how the market is driven by psychology (greed/fear) and not fundamentals. But in the end my business ventures were far more lucrative and less stressful uses of my time.
Learn how I created a successful 4HWW Muse Online Business and travel around the world.
The trick is to start young. I traded stocks from 19yo, then at 21 started studying forex. In both cases it took me 1 year before getting some interesting results.
I had the opportunity to do this because I had already some money on the side, and a technical diploma for backup. You cannot just leave everything and start trading right away for a living.
I had the opportunity to do this because I had already some money on the side, and a technical diploma for backup. You cannot just leave everything and start trading right away for a living.
Quote: (01-24-2010 01:12 PM)LÉtranger Wrote:
Kingkong you didn't read Zurich Axioms, didnt you.
To diversify your portfolio is the safest way to make money. But also the safest to not get rich. "Neither rich nor poor, the middle class".
^^ outstanding book btw..
i'm curious if folks stuck with the currency trading.. (i read somewhere that 90% lose $$ with forex)
I've been taking online Forex trading courses through MTI. I'm a lib arts guy but after reading some Kiyosaki stuff, I realized that I was wasting my time working all the time. Reading stuff by guys in the Lifestyle Artist community has further hammered the message through to me.
I'm doing this to learn about finances and hopefully make some money in a more passive fashion.
I'm doing this to learn about finances and hopefully make some money in a more passive fashion.
ha! i didnt caught sight of this thread before i created my own about forex trading
(i cant post a link since i have less than 10 posts...--roosh rules) , so, forgive me for pasting. Anyways, you can find the rest under my name.
My goal here is to start discussion about trading the forex market. Through the use of both fundamentals and technical analysis. From the fundamental point of view, emphasis is on: risk on/risk off; global currency flows, bond rates and their reaction to various central banks decision(especially, european/usa monetary policies); carry trades equilibrium, commodities appreciation and depreciation(especially gold and oil) with regards to currency correlations(e.g usd/cad, aud/usd); fundamental reports(gdp, inflation numbers, quantitative easing policies, pmi numbers, current account balanceetc) and market reaction as indicators. Of course, observing how various stock market indices, such as the DAX, FTSE, CAC, S&P handles market info. All this to ascertain the major direction of each nations currency with respect to the others. I am sure i am missing a couple of things.
From the technical point of view. My main focus is the use of S/R levels and trendlines. Confluence trading using s/r levels and trendlines intersection to determine trades. With an eye towards the fundamental and technical structure of higher time frames(monthly, weekly, daily) to guide the direction of the trend. Some of the things that i have noticed about trading S/R and TL confluence on larger time frame is that, whenever or where ever they occur, they hardly occur in isolation. They also tends to be part of another pattern, i.e., the TL could be part of a pennant formation or a channel or a head and shoulder or a double top/bottom, ascending/descending triangle, or flag formation, or Gartley formation, etc.
For the S/R Levels or demand and supply zones, it is not uncommon for some of them to concide with flat top/bottom triangles or rectangle formations. All these different formations probably serves to bring in other players looking at different things to put their money at that spot of confluence.
Also, it is not at all unusual to see FIB levels zones of 38 or 50 or 61 in close proximity to the confluence spot. Which probably brings in the fib players.
Since focus is on H4 and above, most likely the confluence spot will fall very close to a round number psychological area, which has its attraction for some people.
Even candlesticks comes into play here, because when you zoom into candlesticks, there are times when a candlestick is just a classic chart pattern when viewed from a lower time frame. Try this, go to monthly time frame and choose any random candlestick. Mark its boundaries. Then go to lower and lower time frame to view those boundaries. I can almost guarantee it, that the weekly candlestick will morph into one of many classic chart patterns within those boundaries when viewed from lower time frames. In essence, the candlestick trader could be trading S/R and TL confluence while trading his candlesticks.
Basically, what i am saying is that the reason why S/R and TL confluence on higher time frames shows such remarkable success rate could be because of the converging different styles of traders focusing on the confluence spot for whatever personal reasons.
Maybe this is why confluence on higher time frames(where it gets more noticed by different traders with different style)works so well. Due to many different style of traders putting their money down around that spot for whatever different reasons.
Bottomline here is this: the way i see it is that i dont even need to see all these other patterns, when all i need is a confluence of S/R and T/L. That is it. That take care of everything. Which goes to a hypothesis: most technical chart patterns and candlesticks are simply S/R and TL, or (S/R or TL) when you really think about it.
HOW DO I MAKE THE MOST OF THIS?
In trading, it is my core belief that we have to balance win ratio with return on risk. The higher the win ratio, the lesser the return on risk; and vice versa.
A trading system that combine win/loss of roughly 60% along with a regular 8R to 20R(r:r of 1:8 or 1:20) are very rare, if they even exist at all. That is my little observation about trading.
AXIOM: Any system with a high R/R ratio must use a higher time frame for setups and lower time frames for entry. The greater the differential, the better.
Now, how does one take care of the poor win:loss ratio that plagues such a system.
There are other solutions, of course. But the one that has worked for me is to combine/hybridized a scalping system on a lower time with a trend trading system of higher time frame. That is, enter at the entry point of the scalp(1mins to 15mins), but use the PT of the trending trading system(H4 to weekly). If the scalping system has a respectable win/loss of say, 60% and above; and the trend trading system has a respectable win/loss of say 60% and above. We are in business. Of course, there is going to be a sizable dose of breakevens, this is the nature of the beast. It is essentially a trading system within a trading system. A hybrid. This is optimal for high risk/reward, of say, 8R or 20R with a win rate of 60%. It is risking around 4pips to 15 pips to make 100pips to 243 pips or higher.
Trend trading breakouts for my higher time frame strategy has this structure: higher highs/lows or lower lows/highs. (i cant really post image links until i have 10 posts - roosh rules)
The higher time frame methodologies are: swinging/wave movements and polygonal breakouts on the daily frame using lower 1/8th or 1/4th b-p-c.(BREAKOUT - PULLBACK - CONTINUATION). I am sure there are others, but these are the ones that i personally know to result in 60% win rate or higher.
For the scalping method: One trading method that i found to have at least 60% success rate at 1min to 15mins time frame are ascending or descending triangle breakout, that ran, pullback, and then continue in the direction of the breakout. With entrance at the reversal candle at the bottom of the pullback.
From my own personal study, i notice this method works in all time frames. Lets called this by acronym: TBPC
(would love to post image links...but...i cant until i have 10 posts -- roosh rules)
As such, the combination of the two:using the higher time frame trend trading to set the PT and the lower time frame TBPC to set the entry yields a high win:loss with a 10 to 20 r:r.
This is the framework. There is nothing groundbreaking here. It is simply a combination of two elegantly simple techniques. I will start posting live setups
IN A NUTSHELL:
All these systems are simply little variations of the same thing.
(1)find a robust, simple system on a higher time frame with a good win/loss of 60% or higher; with a 1:1 to 1:3 r/r
(2) find a simple, robust system on a LOWER TIME FRAME with a good win/loss and a decent r/r of say 1:1 to 1:3.
(3) merge the two together. Use as your entry the lower time frame methodology, while using the TP of the higher time frame for exit. Sometimes, it is the same system from a 4hr or daily time frame that is now replicated on a 5mins or 1mins time frame, inside itself. This is how i know to get a decent win/loss ratio with a respectable R/R of say, 1: 8 to 1:20(especially, if the setup is weekly or monthly, and the entry is 1 or 5mins.). Of course, breakevens increases. and win/loss drops due to the noise of 1mins...that is why i look far away from red-labeled news.
(4)Use purely price action. Trade with the trend. Avoid red-labeled news.
THIS IS THE CORE OF MY FOREX TRADING PRINCIPLES. I will start posting chart setups as soon as possible.
(i cant post a link since i have less than 10 posts...--roosh rules) , so, forgive me for pasting. Anyways, you can find the rest under my name.
My goal here is to start discussion about trading the forex market. Through the use of both fundamentals and technical analysis. From the fundamental point of view, emphasis is on: risk on/risk off; global currency flows, bond rates and their reaction to various central banks decision(especially, european/usa monetary policies); carry trades equilibrium, commodities appreciation and depreciation(especially gold and oil) with regards to currency correlations(e.g usd/cad, aud/usd); fundamental reports(gdp, inflation numbers, quantitative easing policies, pmi numbers, current account balanceetc) and market reaction as indicators. Of course, observing how various stock market indices, such as the DAX, FTSE, CAC, S&P handles market info. All this to ascertain the major direction of each nations currency with respect to the others. I am sure i am missing a couple of things.
From the technical point of view. My main focus is the use of S/R levels and trendlines. Confluence trading using s/r levels and trendlines intersection to determine trades. With an eye towards the fundamental and technical structure of higher time frames(monthly, weekly, daily) to guide the direction of the trend. Some of the things that i have noticed about trading S/R and TL confluence on larger time frame is that, whenever or where ever they occur, they hardly occur in isolation. They also tends to be part of another pattern, i.e., the TL could be part of a pennant formation or a channel or a head and shoulder or a double top/bottom, ascending/descending triangle, or flag formation, or Gartley formation, etc.
For the S/R Levels or demand and supply zones, it is not uncommon for some of them to concide with flat top/bottom triangles or rectangle formations. All these different formations probably serves to bring in other players looking at different things to put their money at that spot of confluence.
Also, it is not at all unusual to see FIB levels zones of 38 or 50 or 61 in close proximity to the confluence spot. Which probably brings in the fib players.
Since focus is on H4 and above, most likely the confluence spot will fall very close to a round number psychological area, which has its attraction for some people.
Even candlesticks comes into play here, because when you zoom into candlesticks, there are times when a candlestick is just a classic chart pattern when viewed from a lower time frame. Try this, go to monthly time frame and choose any random candlestick. Mark its boundaries. Then go to lower and lower time frame to view those boundaries. I can almost guarantee it, that the weekly candlestick will morph into one of many classic chart patterns within those boundaries when viewed from lower time frames. In essence, the candlestick trader could be trading S/R and TL confluence while trading his candlesticks.
Basically, what i am saying is that the reason why S/R and TL confluence on higher time frames shows such remarkable success rate could be because of the converging different styles of traders focusing on the confluence spot for whatever personal reasons.
Maybe this is why confluence on higher time frames(where it gets more noticed by different traders with different style)works so well. Due to many different style of traders putting their money down around that spot for whatever different reasons.
Bottomline here is this: the way i see it is that i dont even need to see all these other patterns, when all i need is a confluence of S/R and T/L. That is it. That take care of everything. Which goes to a hypothesis: most technical chart patterns and candlesticks are simply S/R and TL, or (S/R or TL) when you really think about it.
HOW DO I MAKE THE MOST OF THIS?
In trading, it is my core belief that we have to balance win ratio with return on risk. The higher the win ratio, the lesser the return on risk; and vice versa.
A trading system that combine win/loss of roughly 60% along with a regular 8R to 20R(r:r of 1:8 or 1:20) are very rare, if they even exist at all. That is my little observation about trading.
AXIOM: Any system with a high R/R ratio must use a higher time frame for setups and lower time frames for entry. The greater the differential, the better.
Now, how does one take care of the poor win:loss ratio that plagues such a system.
There are other solutions, of course. But the one that has worked for me is to combine/hybridized a scalping system on a lower time with a trend trading system of higher time frame. That is, enter at the entry point of the scalp(1mins to 15mins), but use the PT of the trending trading system(H4 to weekly). If the scalping system has a respectable win/loss of say, 60% and above; and the trend trading system has a respectable win/loss of say 60% and above. We are in business. Of course, there is going to be a sizable dose of breakevens, this is the nature of the beast. It is essentially a trading system within a trading system. A hybrid. This is optimal for high risk/reward, of say, 8R or 20R with a win rate of 60%. It is risking around 4pips to 15 pips to make 100pips to 243 pips or higher.
Trend trading breakouts for my higher time frame strategy has this structure: higher highs/lows or lower lows/highs. (i cant really post image links until i have 10 posts - roosh rules)
The higher time frame methodologies are: swinging/wave movements and polygonal breakouts on the daily frame using lower 1/8th or 1/4th b-p-c.(BREAKOUT - PULLBACK - CONTINUATION). I am sure there are others, but these are the ones that i personally know to result in 60% win rate or higher.
For the scalping method: One trading method that i found to have at least 60% success rate at 1min to 15mins time frame are ascending or descending triangle breakout, that ran, pullback, and then continue in the direction of the breakout. With entrance at the reversal candle at the bottom of the pullback.
From my own personal study, i notice this method works in all time frames. Lets called this by acronym: TBPC
(would love to post image links...but...i cant until i have 10 posts -- roosh rules)
As such, the combination of the two:using the higher time frame trend trading to set the PT and the lower time frame TBPC to set the entry yields a high win:loss with a 10 to 20 r:r.
This is the framework. There is nothing groundbreaking here. It is simply a combination of two elegantly simple techniques. I will start posting live setups
IN A NUTSHELL:
All these systems are simply little variations of the same thing.
(1)find a robust, simple system on a higher time frame with a good win/loss of 60% or higher; with a 1:1 to 1:3 r/r
(2) find a simple, robust system on a LOWER TIME FRAME with a good win/loss and a decent r/r of say 1:1 to 1:3.
(3) merge the two together. Use as your entry the lower time frame methodology, while using the TP of the higher time frame for exit. Sometimes, it is the same system from a 4hr or daily time frame that is now replicated on a 5mins or 1mins time frame, inside itself. This is how i know to get a decent win/loss ratio with a respectable R/R of say, 1: 8 to 1:20(especially, if the setup is weekly or monthly, and the entry is 1 or 5mins.). Of course, breakevens increases. and win/loss drops due to the noise of 1mins...that is why i look far away from red-labeled news.
(4)Use purely price action. Trade with the trend. Avoid red-labeled news.
THIS IS THE CORE OF MY FOREX TRADING PRINCIPLES. I will start posting chart setups as soon as possible.
It took me two years to be consistently profitable in stocks. It took me another 1 year to be consistently profitable with forex.
It is bloody hard work.
Only risk money you are willing to lose.
It is bloody hard work.
Only risk money you are willing to lose.
Quote: (11-28-2010 11:38 PM)phoenix abroad Wrote:
Quote: (11-25-2010 08:47 PM)manilaguy Wrote:
My roomie in college, who was majoring in English literature (lol), played the forex game when he barely understood how markets operate. He really got into it and would lock himself up in his room, even when i needed this fucker as my wingman. He lost big time. Even his tuition money. Dumbass.
So learning from him, if you have nothing to do with trading currencies please stay away from it. Any case, good luck.
I second that. The time to develop the necessary competence to make money is usually years - and you might still end up losing money. Your time is much better spent developing a skill or business that is sustainable and actually provides value to people.
It took me 3 years of trading stocks/options to realize this. I learned a shitload about finance in the process, especially how the market is driven by psychology (greed/fear) and not fundamentals. But in the end my business ventures were far more lucrative and less stressful uses of my time.
Quote: (12-01-2010 02:18 PM)LÉtranger Wrote:
The trick is to start young. I traded stocks from 19yo, then at 21 started studying forex. In both cases it took me 1 year before getting some interesting results.
I had the opportunity to do this because I had already some money on the side, and a technical diploma for backup. You cannot just leave everything and start trading right away for a living.
Kathy Lien "day trading the currency market" (introductory fundamentals)
and Igrok "Beat the odds in forex trading".(technical analysis)
You can pretty much find everything you want online.
first, google "babypips" and read through everything on that site. Then get the books.
and Igrok "Beat the odds in forex trading".(technical analysis)
You can pretty much find everything you want online.
first, google "babypips" and read through everything on that site. Then get the books.
Quote: (11-19-2010 02:56 PM)kerouac Wrote:
Speaking of FOREX, have any of you read George Soros' Alchemy of Finance? I've started getting into it and it's pretty interesting because it gets into some of his trading strategy.
Speaking of which, are there any other books that have helped some of you FOREX people out there?
Does anyone do news trading? Is it effective?
The only effective strategy I have found so far is the 10pip/day from urbanforex, that has 90% win ratio, but you have to keep eye on the market all day. The strategy is easy, but the execution is haaard.
The only effective strategy I have found so far is the 10pip/day from urbanforex, that has 90% win ratio, but you have to keep eye on the market all day. The strategy is easy, but the execution is haaard.
Deus vult!
Quote: (11-20-2014 02:33 AM)Glaucon Wrote:
Does anyone do news trading? Is it effective?
The only effective strategy I have found so far is the 10pip/day from urbanforex, that has 90% win ratio, but you have to keep eye on the market all day. The strategy is easy, but the execution is haaard.
If you use a traditional broker, you should beware of spreads right as news is coming out. One time I got fucked in the ass because they adjusted the spread to 50 pips, and even though I got the right market direction, it only moved 30 pips, which means I lost 20 pips just by clicking the buy button.
Quote: (11-20-2014 02:54 AM)edtf Wrote:
If you use a traditional broker, you should beware of spreads right as news is coming out. One time I got fucked in the ass because they adjusted the spread to 50 pips, and even though I got the right market direction, it only moved 30 pips, which means I lost 20 pips just by clicking the buy button.
Isn't the spread goes down after the volatility goes down? Or took too long and you had to close the position?
Deus vult!
I don't think the advice has changed from when this thread a few years ago started: avoid Forex trading. There are professionals out there that trade for a living, who work at big banks and hedge funds. That's who you're competing against.
When you're trading futures (whether Forex, commodities), remember it's a zero-sum game. For you to win, someone else has to lose.
When you're trading futures (whether Forex, commodities), remember it's a zero-sum game. For you to win, someone else has to lose.
If you want to trade into FOREX make bets only with money you're willing to lose.
Same goes for stocks.
You cannot compete with Wall Street's traders or professional traders from big banks AND you cannot compete AT ALL against the HFT (High Frequency Trading) Platform they use most of the times.
Same goes for stocks.
You cannot compete with Wall Street's traders or professional traders from big banks AND you cannot compete AT ALL against the HFT (High Frequency Trading) Platform they use most of the times.
Eat. Sleep. Approach. Repeat.
@edtf @glaucon
In forex, news trading is not advisable.
Why?
Take EUR/USD, a pair with the tightest spreads of all the pairs and crosses in the forex universe.
During unemployment data release e.g Non-Farm Payroll(NFP)) which usually comes out on the 1st Friday of every month, the spread can go from 0.1pips to 20 pips within seconds.
That means EUR/USD could be at bid/ask: 1.25410/1.25411 which means a spread of 0.1 pips; then all within seconds of NFP news release, EUR/USD widen to bid/ask: 1.25410/1.25610, which means a spread of 20pips.
What are the repercussions of this?
If your cost-per-pip is roughly $10, that is, you are trading one standard lot, which means you gain or lose $10 for every 1 pip movement... the fact that the spread widens to 20 pips automatically put you in the negative by $200.
That is just the beginning...
During news(e.g. NFP news) currency tends to exhibit high degree of volatility... EUR/USD can jump up by 60 to 100 pips from the news alone... now at least, that is another 60 X $10 = $600
So, since losses are unavoidable, and you are bound to be on the wrong side of the trade every now and then, that means you are already down by $600 +$200 = $1000 within seconds or minutes of NFP news hitting the wires.
And there is more....
During news time, it is very difficult to liquidate position when it is going against you, due to massive imbalance in supply/demand when major news hit. The brokerage may simply choose to not execute your request or give you requotes after requotes. So you are stuck with a losing trade as it gallops away into deeper red, with widened spread.
I am also guessing that you will be using Dealing Desk/Market Makers called DD which allows you to trade in mini and microlots... these lads take the other-side of your trade.. which means that they make money when you lose money; and lose money when you make money..... They can manipulate the spread at will... afterall, they determine what the spread is to you. So, add that on top of things to consider when deciding to trade the news.[The other type of brokers are Non Dealing Desk(NDD) which comes in the form of either Straight Through Processing (STP) or Electronic Communication Network + Straight Through Processing (ECN+STP). These do not take the other-side of their clients trades....but they have other requirements... ]
Are there strategies and tactics for trading news? Yes. There are many of them, in fact, if you google "NFP trading strategy" you will get a bunch of results tailored to the average retail trader. However, i am calling bullshite on ALL OF THEM. They are all a bunch of lies. Don't be fooled by how pretty and neat they look, or how authoritative the person sounded.
I haven't known any strategy of forex news trading that is profitable in the long term, even in the short term of a couple of months. Hey, i will stand corrected if you can point to me one that is profitable and show me the statistics of the trading results. I need to see the actual numbers to believe it, otherwise, i am calling bullshite.
regards,
Nemencine
In forex, news trading is not advisable.
Why?
Take EUR/USD, a pair with the tightest spreads of all the pairs and crosses in the forex universe.
During unemployment data release e.g Non-Farm Payroll(NFP)) which usually comes out on the 1st Friday of every month, the spread can go from 0.1pips to 20 pips within seconds.
That means EUR/USD could be at bid/ask: 1.25410/1.25411 which means a spread of 0.1 pips; then all within seconds of NFP news release, EUR/USD widen to bid/ask: 1.25410/1.25610, which means a spread of 20pips.
What are the repercussions of this?
If your cost-per-pip is roughly $10, that is, you are trading one standard lot, which means you gain or lose $10 for every 1 pip movement... the fact that the spread widens to 20 pips automatically put you in the negative by $200.
That is just the beginning...
During news(e.g. NFP news) currency tends to exhibit high degree of volatility... EUR/USD can jump up by 60 to 100 pips from the news alone... now at least, that is another 60 X $10 = $600
So, since losses are unavoidable, and you are bound to be on the wrong side of the trade every now and then, that means you are already down by $600 +$200 = $1000 within seconds or minutes of NFP news hitting the wires.
And there is more....
During news time, it is very difficult to liquidate position when it is going against you, due to massive imbalance in supply/demand when major news hit. The brokerage may simply choose to not execute your request or give you requotes after requotes. So you are stuck with a losing trade as it gallops away into deeper red, with widened spread.
I am also guessing that you will be using Dealing Desk/Market Makers called DD which allows you to trade in mini and microlots... these lads take the other-side of your trade.. which means that they make money when you lose money; and lose money when you make money..... They can manipulate the spread at will... afterall, they determine what the spread is to you. So, add that on top of things to consider when deciding to trade the news.[The other type of brokers are Non Dealing Desk(NDD) which comes in the form of either Straight Through Processing (STP) or Electronic Communication Network + Straight Through Processing (ECN+STP). These do not take the other-side of their clients trades....but they have other requirements... ]
Are there strategies and tactics for trading news? Yes. There are many of them, in fact, if you google "NFP trading strategy" you will get a bunch of results tailored to the average retail trader. However, i am calling bullshite on ALL OF THEM. They are all a bunch of lies. Don't be fooled by how pretty and neat they look, or how authoritative the person sounded.
I haven't known any strategy of forex news trading that is profitable in the long term, even in the short term of a couple of months. Hey, i will stand corrected if you can point to me one that is profitable and show me the statistics of the trading results. I need to see the actual numbers to believe it, otherwise, i am calling bullshite.
regards,
Nemencine
.
A year from now you will wish you had started today.....May fortune favours the bold.
I posted this in the stocks trading thread but think it would be more suited to the FX thread hence the re-post
Swing trader (FX)
Portfolio open value - 10,000 GBP
Current portfolio value - 17924 GBP
ROI (After o/n funding charges) 79.24%
Trades - 27 (7 losers 20 winners)
Period - Sept 2014 - ongoing
Most profitable trade short GBPJPY (open 10/13/2014) (closed 10/14/2014)
Least profitable trade Long USDMXN (11/4/2014) (CLOSED SAME DAY)
Swing trader (FX)
Portfolio open value - 10,000 GBP
Current portfolio value - 17924 GBP
ROI (After o/n funding charges) 79.24%
Trades - 27 (7 losers 20 winners)
Period - Sept 2014 - ongoing
Most profitable trade short GBPJPY (open 10/13/2014) (closed 10/14/2014)
Least profitable trade Long USDMXN (11/4/2014) (CLOSED SAME DAY)
« Next Oldest | Next Newest »
Users browsing this thread: 1 Guest(s)