Hi FXX, good to see you are still posting. It took me a while to workout how to swinger trade successful. Since I have been trading full time, I use all methods to trade, but mostly prefer short term trades on time frames from 1 min to a few days. For example I was in and out of the AUD/USD yesterday, trading it both long and short for nice profit of around 4.7K NZ. Its not easy trading this way, but some days you can when the market conditions are right. Its good to see you are working out what trading style/method works best for you.
Hey, sorry for the late reply
The Turkey USA situation changed sentiment to being a risk off tone and although I didn't have time to really get involved due to work, it would have been a case of following safe haven flows. All other economical news takes a side step in these situations. In this instance the biggest winner has been the dollar with rising yields and solid data supporting a continuation thereof. I made an early miss judgment and looked at gold and should have followed the money.
Hi Bluedog
I am pretty much bang on with you on that front. I have officially given up trying to make swing trading work for the foreseeable future. There are juat too many factors that can change sentiment enough to either take a trade out or prolong the time in the market. The later in that statement is for me a key element because swing trading doesn't make financial sense to me. You enter a trade that can last several weeks or months where you are likely paying rollover for a profit that can be made over several sessions day trading.
So I am focusing on pure news and sentiment driven trades going forward where I seem to be developing an edge. I love this type of trading because you get immediate feedback from the market and there is generally plenty of time between trades giving time to do research. I am still far away from your league and have been wondering the levels of stress you might experience contrasted with stress I currently experience from my day job. I suspect its a different kind of stress even though I am also self employed.
I will be ramping up sizing in the near future so have interesting times ahead. Going to be posting more on that and rehashing my approach in this blog to really nail down that process to be second nature.
What's the general gossip that side with the new ban on foreign buyers?
The trades are initiated off a catalyst whether it be a scheduled release or unscheduled. As soon as I get the data and discover an opportunity then I enter at market. I'll give a trade 20 mins to work out or move my stop to break even if the trade is around 15 pips away from entry. If the market is less than 10 pips I'll just close it even if it is a loss.Hi FXX,
When you make a trade how long do you expect to wait before your thesis is proved right or wrong. Is it trade dependent for example new coming out at 12pm for example you set the trade at lets just say 11:55? or is it more like on a Monday you make a trade you expect to play out over the week maybe on a Thursday?
Its relatively easy to spot. There is generally a catalyst that is unscheduled that kicks it off. If you don't spot it in the news then you can still catch it by correlating markets and specific currencies. Watching Yen, and Swiss Frank for strength (sometimes its the dollar but it depends on the situation), and high yielding currencies weakening (money leaving riskier emerging markets). You will see stock markets will be a sea of red. The opportunity lies with pairing safe haven currencies with a counterpart that has weak sentiment on the day. The more negative the sentiment the bigger the potential in the trade.Thanks for the reply mate.
I was reading a little about risk on and risk of the other day but I obviously don't remember much of it because I have to go Google it again