big bucks can only be made by professionals

[TickCOM]

Actually, you can. That's the latest thing among the algo trading set, apparently. They put news feeds through their systems looking for certain things to trigger trades. If they programmed the system to read weather headlines and react to them they could do that trade automatically. I'm not saying they do, but they could.

I red about a company providing such signals recently, but cant find it - For my system, it would be nice to have a signal coming in with uptrend,downtrend or sideways on the intrady timeframe - an algorithm fit for a trending day using all the pull backs, milks the market very efficiently - if the market is trending the direction you set .....

 

[TickCOM]

As somebody else wrote on this site - its all in the charts.

There is always someone who get the news a little bit before the others. This you can see in the charts - clearly - using for example a range 2 bar chart. The charts prints usualy very specific patterns just before the market turns, or breaks out.

Combined with actual market news to confirm the pattern, adds the extra % to the patterns propability.

 

[FXSCALPER2]

You can make 'big bucks' in the short term even if you have something like 10K. I trust you are not going to ask me how, are you now? Go on please!

Consider what you would be able to do if you knew you would be shot on Saturday unless you doubled your money by the end of Friday. Making big bucks is a function of one of two things: having big bucks already AND/OR apetite for risk.

 

[combotrader]

Combo, its not about being a "news trader", more about setting yourself up to prepare for as many circumstances as possible. Let me give you an example.

Trader Fred an experienced trader buys oil at $90 based on his studies, he puts in a stop at say $89 and a sell order at $92 to take profits. This seems all sensible and is, but then during the day the US announce they are sending huge military task force to sit on the edge of Iranian waters.
Should Fred be pleased that he has now sold Oil at $92, or kicking himself because he lost a real opportunity here because Oil actually spiked to over $100. At absolutely no further risk Fred gave up the opportunity to take an massive profit on his trade.

I can give you weekly examples of these kind of moves, so being WIRED IN is vitally important to all Serious Traders

Was away, hence the delay in replying.
Police, can you guarantee that the news will always have the outcome the trader desires - apart from increased volatility ? In the long term privce will assimilate the news and move up or down - but you can know that from the charts and be sleeping when the news hits in order to make money.
In your example, what if the first move was a massive spike down, say 50 points, before going up. How many stop orders would that hit ? This is very possible, given the volatility of oil.

Another example - from 9th-23rd July, I made 400 pips on cable simply by holding based on the price action and trend. A lot of positive news hit the market during this time. I dont know and I dont care. However I do know lots of newstraders who lost money in the ensuing volatility or made 30-40 pips a trade.

I accept that it does no harm to be well informed. But to make big bucks...as defined by you...you dont need all that wiring. If it works for you thats great. But its not the only way.

Cheers CT

 

[ani]

Richard Oldfield is a very very rich man and has just written: Simple But Not Easy - it was reviewed this morning in the timesonline. It confirms much of what i already believe (especially about hedge funds).

www.making-bread.co.uk is a free site for newbies and is a good introduction to this murky world.

 

[grantx]

So why do the big boys still manage to fkuc up big?

Grant.

 

[combotrader]

Because of their risk management.

I am frinds with a so called "big boy", ie, an institutional currency trader. I asked him one day how much he risks per trade. He said 10-15%. I was surprised and said he must be a really good trader. He said he`s ok - but the more senior the more you get to risk.
Its not uncommon for a trader to "bet the bank", if they really trust the trade.
OK, so these boys might be able to move the market. But there are many others like him. It also depends which market one is speaking of. There`s no way of knowing the market will do what they want - but some of them think precisely that!!!

So they f.c.u.k up - it should be an advertisement.

 

[firewalker99]

Its not uncommon for a trader to "bet the bank", if they really trust the trade.

Sorry, but this is hilarious. If you know any traders like that, I'm sure they'll blow out sooner rather than later. No trader, amateur or professional, would ever want to risk more than a small percentage on any trade.

The reason big boys can lose more money than small boys, is because moving large money in & out of the markets can't be done without affecting price. This means they will have to buy (accumulate) or sell (distribute) over longer periods of time.

 

[firewalker99]

It seems like the general opinion is that 90% lose money on trading, but who are the remaining 10% ? The banks, the hedgefunds, the so called professional traders ?

most of the time, most of the general opinion is mostly wrong

 

[Rhody Trader]

It's worth keeping in mind that institutional traders aren't exactly trading with their own money. They have size limits, but it's not like their own money is at risk - just their bonus. :cheesy:

 

[combotrader]

Firewalker

I was as surprised as you are. Its my firm belief that many instutional traders have a poor idea of risk. Its not their money at the end of the day!