Forex rebates on every trade - win or lose!

leg up---- quickie....what are you like lol

hilary 8959 of 8970
Re cable:

"With the exception of the 1-minute chart, the MACD is below the zero line and the price action is below the ma's which happen to be heading downwards. That's for all timeframes from 5-minute through to 4-hour.

Does that make it a buy? If you think it does, then you need to be looking for the positive nature of the 1-minute to start spilling over into the 5-minute and slower otherwise you'll get toasted."


Thanks for this. I would have posted on Friday but I didn't see this post until after the data at 10 and at the time I was busy deciding what to do with cable.

Interesting post cos very shortly after your post all the buyers at 2.04 and all those with stops just below did indeed get well toasted.

I managed not to get toasted at 2.04 but it was a combination of intuition/skill/luck and a large measure of if you're not sure just wait for the next trade. Looking at indicators sure would have made the decision alot easier.


To explain I am trying to learn to trade fx over a medium term basis - i.e. get on trend, stay on it and try and make 50,100,200,400 pips off the big move - whatever the market will give me. However, this doesn't mean i'm not going to take 10 or 20 pips short term if I think they are there.

I often trade short term based on round number psychology meaning if a price hits say 2.04 i'm looking to reverse into the trend for a few pips. With stocks this works very well and seems to be the same with fx. so when cable went down near to 2.04 I went long based on the assumption there was a magic line in the sand with a pent up demand not necessarily shown on the chart. First trade worked fine as it often does. second bounce also worked fine. However, the third time it came down I was very very wary as history tells me that reason for the trade is breaking down.

It's just random with stocks on the third and subsequent bounces. sometimes it works, sometimes it doesn't, sometimes it bounces enough times to set up a permanent support level and is the trend reversal but as far as I have ever worked out as an idea for a trade you might as well just toss a coin.

Often it will also dip below as it did to 2.0390 in this case and bounce back to 2.0400 giving the opportunity for some points but again I find this a problem trade because sometimes it will be the trend reversal and it will power up to say 2.0450, sometimes 2.4000 will then become resistance and you can sure lose alot of points very fast as all those who thought 2.04 was support suddently realise it's resistance and the close creating huge downward momentum

In this instance the decision to keep out wasn't especially difficult as I really couldn't see any sort of support line below for quite a way. I knew if 2.04 didn't hold I wasn't just screwed a bit, I was scewed alot so I chose not to trade it again.

Probably most of this is obvious to you and can be explained by fib retracements etc but it;s the best way I can explain it. It was fairly astonishing to see cable collapse so fast after you posted. my "round number system" may have made me a few points and kept me out of losing by being greedy and tryiing to trade it too many times but there's no way I'd have seen any sort of signal to go short where the big points were which is mostly what i'm trying to achieve.


Interesting stuff. Next time you can be sure i'll be watching the indicators alot more closely. I am finding it difficult to get any sort of balance between how much reliance I place on the indicators and how much I should trade on instinct. Hopefully as I understand the indicators better, the instinct will become less although I do believe any good trader does need some level of insight you can't necessarily write down on a piece of paper or see on a chart.

edit-

posted twice

Morning all,

I thought I would give you a update on last week.

Monday, was a good day I traded EJ using 1 min chart and it was a very easy day ended up +50.

Tuesday, I decided to give GJ a try and got my butt kicked , I found the spreads on IB where 5-6 pips during the Asian session which is to big when you add comms as well.
I have been trading off a Ninjatrader chart that uses a feed from Gain capital, which is slightly slower than my IB platform which means i lose a tick here and there.
I switched back to EJ and finished the day flat.

Wednesday , I ended the day +10.

Thursday , didnt trade.

Friday , was a bit of a pig, I got whipped in the asian session and to top things off ,I loaded IB on to another PC set it up and it all seemed fine . Except that my bloody stops didnt trigger and I came back to the PC to be 60 pips down.
I hadnt set up the stops correctly so they wouldnt trigger outside UK market hours.

I decided to back to the 10 min chart and managed to get on the breakout around 12 UK time which saved my bacon for the week.

So I ended Friday no better off than I did on Monday +50.

I do admire you 1 min traders , but I think I will trade the 10 min for a bit.

Ian

Buderim, you're not alone. I was ticking over nicely trading the 1 min EUR JPY and got kicked on Thursday. Lost the previous gains, but there was only one reason it happened - I broke my own rules and deserved it. Discipline!!!

Anyway, have been tweaking and will try again this week as and when...

Out of curiosity, Bud, how many hours is Gingertown ahead of us here in the UK and what hours of day do you trade?

SC think discipline is so important for scalping, very easy to give your gains back. Do recommend the article "day trading" by Douglas Zalesky. The copy I got was out of SFO magazine(feb 2003), it lists a whole lot of do's and dont's and have found it very helpful. Have a good week all

Hi Hils,

Gingertown - lol (sounds like somewhere Chris Evans would live)

we are 10 hours ahead at the moment , I have been looking at the Asian session around 1 am your time, but i think I will wait until maybe 6-7 am when Europe wakes up.

Bud,

This isn't an exact science (if it were, everybody would be doing it) but, as a general rule, markets tend to be at their choppiest around the time that a new timezone comes into play. Once that's happened they tend to move into a trend.

Between 6am and 9am (UK time) is often good to play the 1-minute chart with some superfast settings as the Asian trend is tested and either pushed further or reversed. Once that's happened, it's then time to just sit back and let the trend run until the Yanks wake up and the same thing happens over again.

The eur/gpy is hard to trade this morning very wippy.

Do you mean JPY? Tight range. No meat on the bone. It'll break.

Sorry yes JPY been trying to short it from 161.80 ,still got 40 out of cable on that drop
from 2500

Thanks for that hils,

I will have a look at the European open .

Ian

"This isn't an exact science (if it were, everybody would be doing it)"

judging by the traders thread everybody IS doing it...

Still plodding away, to be honest finding it a bit more difficult than i thought, on the good days its fantastic, on the rangebound days the whips are frustrating me,
its just a case of getting the balance right, Rome wasnt built in a day was it,:-)
will keep plodding along till i get my timeframes strategy right,
think ive got to switch more longer term instead of my usual quickies,
Like Hils, i like a good quickie now and then, but sometimes a marathon is more effective:-)

the Forex day does have a pattern as Hils says.

Early doors probes both edges of current range for direction...then off it goes for most of the am

An interesting read over on Forex Factory.

http://www.forexfactory.com/showthread.php?t=56670

The trader that threw money management out of the window and took his account from $1,000 to $126,000 last week.

It certainly appears to be genuine. Nice to see that it can be done.

I like the fact that he finds trading this way 'relaxing'. I wonder what he does to produce an adrenalin rush ;-)

this is the other side of Forex Ruth...rangie? rangie?...all day....

Its a futures day....

right - now that the uk has closed could the dow put on a 100pts please so that i can make some dosh on my usd/jpy long.

It has everything to do with my frame of mind today - signals have been good, but I really didn't want to bother trading EUR/JPY up and down. Down should've been enough ;)

I was so convinced it wants to retrace to 160.80s - had b/e stops and limits several times whilst I was doing other stuff and ended up with nowt.



Bummer ;)