Forex Day Trader's Thread

I ask a question about night trading and I get a bunch of advise unrelated. Thanks for the pointers, but i'm really not after that. As a side note - say you have £5k account and you clear £200/day, you're talking about a 4% ROI/day and 20% return on account per week. If you don't increase size you're talking about doubling an account every 5 weeks or so and that's somewhat unrealistic using that leverage. If you start with 5k in January getting those results you can potentially double an account 9-10 times in a year. That is a bit ludicrous if you stop and think about it.

Also i'm not a fan of saying "i'll take a max of x trades/day" - you have to take it as it comes. If it's bad and you see nothing you take nothing. If it's great and you get plenty of opportunities take them all so you can run to your expectation rather than getting skewed samples as you have a rule in place limiting your quantity of trades - all assuming you're in the right frame of mind. Agree with you pippy - low leverage is best and I try not to lean on it too much. I don't like moving stops to BE just because of that reason - i'd move a stop for a reason and not to place it in an arbitrary place.

Don't take this the wrong way, but i've been there - done that and your advise isn't something i'll be listening to. But thanks anyway :)
 
Masquerade said:
I ask a question about night trading and I get a bunch of advise unrelated. Thanks for the pointers, but i'm really not after that. As a side note - say you have £5k account and you clear £200/day, you're talking about a 4% ROI/day and 20% return on account per week. If you don't increase size you're talking about doubling an account every 5 weeks or so and that's somewhat unrealistic using that leverage. If you start with 5k in January getting those results you can potentially double an account 9-10 times in a year. That is a bit ludicrous if you stop and think about it.

Also i'm not a fan of saying "i'll take a max of x trades/day" - you have to take it as it comes. If it's bad and you see nothing you take nothing. If it's great and you get plenty of opportunities take them all so you can run to your expectation rather than getting skewed samples as you have a rule in place limiting your quantity of trades - all assuming you're in the right frame of mind. Agree with you pippy - low leverage is best and I try not to lean on it too much. I don't like moving stops to BE just because of that reason - i'd move a stop for a reason and not to place it in an arbitrary place.

Don't take this the wrong way, but i've been there - done that and your advise isn't something i'll be listening to. But thanks anyway :)
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no worries....just thought you were struggling....all the best!
 
SSINGH said:
no worries....just thought you were struggling....all the best!
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No, not struggling - been doing pretty well, but a few things lately made me think I could make a few changes and be even more successful.

1 is minimising time in losing trades - I spent a week in a losing trade.
2 is reducing big swings in account.

But i've figured out a way around it and it'll also prevent me getting stopped out in silly 10 pip moves too. I've tried it all in the past: 7 pip stops, 20, 30 and unless you're amazingly accurate and patient it's tough.

I think part of is the psychology aspect. Here's a scenario: you have a trade with a stop of 50 pips and you have a trade with no stop. If market falls 200 pips you lose 50 pips on one trade but on the other you're still in and on a 200 pip loss. The 50 pip loss is an instant hit to the account and the balance decreases and then you need to look for a new entry and in the back of your mind you don't want to miss the move back up. If you have no stop - the money isn't lost (although it is) as you still have a position and a chance of getting it back when the market moves back in a favourable direction.

But I came to realise over the week it makes little difference and when you're really wrong there's no shame in getting out a losing trade at the early stages, and then getting in something better further down the line.
 
Pippy5000 said:
be nice Mask.. he's not picking on you..
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Sure - i'm not having a bash. But neither was I really asking for trading 101 either. It's all terribly conventional advice and even TAjammy can come up with similar stuff so you can understand why I may not be inclined to take heed without knowing the source.
 
If you have no stop - the money isn't lost (although it is) as you still have a position and a chance of getting it back when the market moves back in a favourable direction.
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ugh .. and you have an equal chance of having no additional chances.. What's 30 pips? it's an incorrect guess. It's one of many potential incorrect guesses. What's 300 pips? Your one and only incorrect guess.


But I came to realise over the week it makes little difference and when you're really wrong there's no shame in getting out a losing trade at the early stages, and then getting in something better further down the line.
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ding ding ding.. YES! Good traders aren't good because they can see the future! They use good margin management. It really does help to be right on the first try, but odds are you probably won't be. It's really not that hard to make money trading, but it's very hard to control your human instincts.. You HATE taking a loss and walking away, but you have to sometimes.. You have to take losses ALL THE TIME.. To assume otherwise is to assume that you're magic, not a trader.
 
Pippy5000 said:
ugh .. and you have an equal chance of having no additional chances.. What's 30 pips? it's an incorrect guess. It's one of many potential incorrect guesses. What's 300 pips? Your one and only incorrect guess.




ding ding ding.. YES! Good traders aren't good because they can see the future! They use good margin management. It really does help to be right on the first try, but odds are you probably won't be. It's really not that hard to make money trading, but it's very hard to control your human instincts.. You HATE taking a loss and walking away, but you have to sometimes.. You have to take losses ALL THE TIME.. To assume otherwise is to assume that you're magic, not a trader.
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Kyle...I'm going to add to my Long EJ around here....looking for entry!!
 
Pippy5000 said:
ugh .. and you have an equal chance of having no additional chances.. What's 30 pips? it's an incorrect guess. It's one of many potential incorrect guesses. What's 300 pips? Your one and only incorrect guess.
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Actually 300pips is about 10%/account for me. If you have 300 pips before margin call then your leverage is far too high.
 
Well, 300 pips is a wipeout. Otherwise you're so underleveraged that watching tickers all day puts you under 3rd world wage levels. Someday you will have to increase leverage and you absolutely must not use a 300 pip stop. Otherwise, Burger King is a better option, or you need to have MASSIVE amounts of margin via your own bank account. That's not the point of retail trading.
 

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NFP will crumple up your chart.. hold it down at Summer Camp and... and... well, you just nevermind about that, but you'll need extensive therapy! TRUST ME :cry:
 
Pippy5000 said:
Well, 300 pips is a wipeout. Otherwise you're so underleveraged that watching tickers all day puts you under 3rd world wage levels. Someday you will have to increase leverage and you absolutely must not use a 300 pip stop. Otherwise, Burger King is a better option, or you need to have MASSIVE amounts of margin via your own bank account. That's not the point of retail trading.
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Well it's not really and the larger the account the less leverage you need to use. You can still make very decent money using a low leverage strategy and with the use of compounding the results can be quite staggering. But i've had enough trading theory for one night.

Did you contact that brunette?
 
Can you believe it....that Lehmans mini bond scam in HK is now here in the UK....Barclays are selling them here in the UK....
 
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